Republic Services reports a total revenue growth of 21 percent in second quarter of 2022
Republic Services, Inc. has released the company's financial results for Q2 of 2022. Republic Services has reported a net income of $371.9 million, or $1.17 per diluted share, for the three months ended June 30, 2022, versus $331.1 million, or $1.03 per diluted share, for the comparable 2021 period. Excluding certain benefits and expenses, on an adjusted basis, net income for the three months ended June 30, 2022, was $418.4 million, or $1.32 per diluted share, versus $349.9 million, or $1.09 per diluted share, for the comparable 2021 period.
"We are very pleased with our second quarter results, which demonstrate our ability to dynamically adjust price to offset higher levels of cost inflation and drive margin expansion in the underlying business," says Jon Vander Ark, president and chief executive officer. "As a result of our strong performance and outlook for the balance of the year, we are raising our full-year financial guidance."
Second-quarter 2022 highlights:
- Total revenue growth of 21.4 percent includes 11.1 percent of organic growth and 10.3 percent of growth from acquisitions. Revenue growth from acquisitions includes U.S. Ecology, which closed on May 2, 2022.
- Second quarter revenue growth from average yield was five percent and volume increased revenue by 2.4 percent.
- Second quarter core price increased revenue by 6.2 percent. The core price consisted of 7.8 percent in the open market and 3.5 percent in the restricted portion of the business.
- The second quarter EPS was $1.17 per share, and adjusted EPS, a non-GAAP measure, was $1.32 per share. Adjusted EPS increased 21.1 percent over the prior year.
- Year-to-date cash provided by operating activities was $1,563.5 million. Adjusted free cash flow, a non-GAAP measure, was $1,152.0 million, an increase of 14.1 percent versus the prior year.
- Republic's second quarter net income was $371.9 million, or 10.9 percent of revenue.
- The second quarter adjusted EBITDA, a non-GAAP measure, was $1.0 billion and the adjusted EBITDA margin was 29.6 percent of revenue.
- Year-to-date cash invested in acquisitions was $2.5 billion, $2.2 billion of which related to the acquisition of US Ecology.
- Year-to-date cash returned to shareholders was $494.7 million, which included $203.5 million of share repurchases and $291.2 million of dividends paid.
- The company's average recycled commodity price per ton sold during the second quarter was $218. This represents an increase from the first quarter of 2022 of $17 per ton and an increase of $48 per ton over the prior year.
- The company was named to 3BL Media's 100 Best Corporate Citizens list for the third consecutive year. The ranking recognizes Republic's ESG leadership in climate change, environment and governance.
Raised full-year 2022 financial guidance
Republic raised its full-year adjusted diluted EPS guidance to $4.77 to $4.80 and its full-year adjusted free cash flow guidance to $1,700 million to $1,725 million.
Republic Services increases quarterly dividend
Republic continues to increase cash returns to shareholders. Republic Services' board of directors approved a 3.5-cent increase in the quarterly dividend. The quarterly dividend of $0.495 per share for shareholders of record on October 3, 2022, will be paid on October 14, 2022.
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