Closing the year with a strong fourth quarter—which featured $2.38 billion in revenues—Republic Services ended the year with $9.39 billion in revenues, growth of $282.7 million over 2015’s figures.
“I’m proud of our many achievements during 2016 and remain encouraged by the underlying strength of our business,” Republic Services President and CEO Donald W. Slager said in a conference call with investors.
Republic also reported net income of $189.5 million, or $0.55 per diluted share, for the three-months ended Dec. 31, 2016, versus $172.3 million, or $0.49 per diluted share, for the comparable 2015 period. Excluding certain benefits and expenses, on an adjusted basis, net income for the three-months ended Dec. 31, 2016, was $193.8 million, or $0.57 per diluted share, versus $175.0 million, or $0.50 per diluted share, for the comparable 2015 period.
"Our positive momentum continued throughout 2016 which resulted in full-year margin expansion, high-single digit earnings and free cash flow growth, and improved return on invested capital,” Slager said in a statement. “Our solid results continue to reflect positive contributions from reinvesting back into the business and successfully executing our strategy of profitable growth through differentiation.”
For the year ended Dec. 31, 2016, net income was $612.6 million, or $1.78 per diluted share, versus $749.9 million, or $2.13 per diluted share, for the comparable 2015 period. On an adjusted basis, net income for the year ended Dec. 31, 2016, was $763.3 million, or $2.22 per diluted share, versus $722.3 million, or $2.06 per diluted share, for the comparable 2015 period.
Other highlights from the firm’s performance:
- Full-year cash provided by operating activities was approximately $1.8 billion and adjusted free cash flow was $885 million. Adjusted free cash flow was positively impacted by lower than anticipated cash taxes.
- Fourth-quarter revenue growth from average yield was 2.2 percent and volumes increased 0.5 percent. This continues to reflect Republic's ability to grow price and volume simultaneously.
- Full-year revenue growth from average yield was 2.1 percent and volumes increased 1.0 percent. Both metrics were in line with the Company's expectations.
- Full-year adjusted EBITDA margin was 28.3 percent, an improvement of 20 basis points from the prior year.
- During the fourth quarter, core price was 3.5 percent and average yield was 2.2 percent. Volume growth was 50 basis points and inline with expectations. For the full year, core price was 3.3 percent and average yield was 2.1 percent. Volume growth was 1.0 percent. It was the fourth straight year of volume and price growth for the company.
- Average yield in the collection business was 2.7 percent, which included 3.8 yield in the small container business, 2.4 percent yield in the large container business and 1.6 percent yield in the residential business.
- Average yield in its post-collection business was 1.0 percent, which included MSW landfill yield of 1.7 percent.
- Core price consisted of 4.7 percent in the open market and 1.5 percent in the restrict portion of its business.
- Volumes increased 2.2 percent in the large container business. Volumes decreased 40 basis points in the small container business and 70 basis points in the residential business.In its post collection business, volume increased 2.7 percent. Landfill volumes included growth in C&D of 14.0 percent and in special waste of 1.0 percent. MSW volumes were consistent with the prior year.
- In terms of operations, the company increased the number of customers that do business with Republic digitally. Approximately 1.8 million customers are now enrolled in the MyResource customer portal and mobile app, up 50 percent from a year ago.
- It opened three new customer resource centers.
- The company advanced its fleet-based initiatives. Now 18 percent of the fleet operates on natural gas, up from 16 percent in the prior year. And 74 percent of the residential fleet is automated, up from 72 percent in the prior year. Lastly, 92 percent of the fleet is certified under Republic's standardized maintenance program, up from 78 percent in the prior year.