Republic Services sees 15 percent increase in revenue in second quarter of 2021
Republic Services has reported a net income of $331.1 million for the three months ended June 30, 2021, versus $225.5 million for the comparable 2020 period. Net income for the three months ended June 30, 2021 was $349.9 million versus $256.9 million for the comparable 2020 period.
"Our second quarter results reflect even further acceleration in our business, which is a direct outcome of continued progress on our strategic priorities," said Jon Vander Ark, president and chief executive officer. "During the second quarter we grew the top line 15 percent, increased adjusted earnings per share by 36 percent and expanded adjusted EBITDA margin 110 basis points. As a result of these strong results we are raising full-year financial guidance for the second time this year."
Q2 2021 highlights:
- Second quarter EPS was $1.03 per share, and adjusted EPS, a non-GAAP measure, was $1.09 per share, an increase of 36 percent over the prior year
- Year-to-date cash provided by operating activities was $1.5 billion, an increase of 11 percent versus the prior year. Adjusted free cash flow, a non-GAAP measure, was $1.0 billion, an increase of 38 percent versus the prior year
- Year-to-date cash invested in acquisitions was $567 million, or $521 million net of divestitures
- Year-to-date cash returned to shareholders through dividends and share repurchases was $363 million
- Second quarter core price increased revenue by 5.2 percent. Core price consisted of 6.5 percent in the open market and 3.0 percent in the restricted portion of the business
- Second quarter revenue growth from average yield was 2.6 percent and volume increased 8.1 percent
- Second quarter adjusted EBITDA margin, a non-GAAP measure, was 30.6 percent of revenue and increased 110 basis points from the prior year
- The Company's average recycled commodity price per ton sold during the second quarter was $170. This represents a sequential increase from the first quarter of $37 per ton and an increase of $69 per ton versus the prior year
- Republic continued to convert CPI-based contracts to more favorable pricing mechanisms for the annual price adjustment. The Company now has approximately $950 million in annual revenue tied to the water-sewer-trash index or a fixed-rate increase of 3 percent or greater
- The Company was named to 3BL Media's 100 Best Corporate Citizens list for the second consecutive year. This award recognizes outstanding environmental, social and governance (ESG) transparency and performance among the 1,000 largest U.S. public companies.
Company increases quarterly dividend
Republic's Board of Directors approved an increase in the quarterly dividend from $0.425 per share to $0.46 per share, which represents an increase of approximately 8 percent.
"We are raising our quarterly dividend by approximately 8 percent," Vander Ark said. "This is the seventeenth consecutive year we've increased our dividend, which demonstrates our commitment to efficiently return cash to shareholders."