Republic Services reports 21 percent revenue growth in first quarter of 2023

Republic Services, Inc. has reported a net income of $383.9 million, or $1.21 per diluted share, for the three months ended March 31, 2023, versus $352.0 million, or $1.11 per diluted share, for the comparable 2022 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended March 31, 2023, was $393.7 million, or $1.24 per diluted share, versus $360.7 million, or $1.14 per diluted share, for the comparable 2022 period.

"We started the year strong with broad-based contribution across our business," says  Jon Vander Ark, president and chief executive officer at Republic Services. "We delivered double-digit revenue growth once again, which was balanced between organic growth and acquisitions. Pricing in excess of cost inflation drove underlying margin expansion, and our environmental solutions business delivered revenue and profitability targets ahead of schedule. We remain encouraged by what we see in the marketplace, and are well positioned to continue to capitalize on growth opportunities."

Highlights of Republic Services' first quarter of 2023

• Total revenue growth of 20.6 percent includes 9.6 percent of organic growth and 11 percent of growth from acquisitions.
• Core price on total revenue increased revenue by 8.2 percent. Core price on related business revenue increased revenue by 9.3 percent, which consisted of 11.7 percent in the open market and 5.4 percent in the restricted portion of the business.
• Revenue growth from average yield on total revenue was 6.5 percent, and volume increased revenue by 1.6 percent. Revenue growth from average yield on related business revenue was 7.4 percent, and volume increased related business revenue by 1.8 percent.
• Net income was $383.9 million, or 10.7 percent of revenue.
• EPS was $1.21 per share, an increase of 9.0 percent over the prior year.
• Adjusted EPS, a non-GAAP measure, was $1.24 per share, an increase of 8.8 percent over the prior year.
• Adjusted EBITDA, a non-GAAP measure, was $1,040.0 million and adjusted EBITDA margin, a non-GAAP measure, was 29.0 percent of revenue. Adjusted EBITDA margin was 30.1 percent in the recycling and solid waste business and 20.6 percent in the environmental solutions business.
• Cash invested in acquisitions was $224.1 million, all of which was in the recycling and solid waste business.
• Cash returned to shareholders through dividends was $156.4 million.
• The company's average recycled commodity price per ton sold during the first quarter was $105. This represents an increase from the fourth quarter of 2022 of $17 per ton and a decrease of $96 per ton over the prior year.
• Republic was recognized by several leading organizations during the quarter, including:
  • Barron's 2023 100 Most Sustainable Companies List
  • Fortune's 2023 World's Most Admired Companies List
  • Ethisphere's 2023 World's Most Ethical Companies List