July 27, 2015
Republic Services Inc. reported higher net earnings and revenue for its second quarter.
Here are the highlights of the latest financial results from the Phoenix-based waste and recycling company.
Republic’s net income rose 6.3 percent to $190.3 million, or 54 cents per diluted share, compared with $179 million, or 50 cents per diluted share, in the 2014 period.
Revenue for the period ended June 30 climbed 3.7 percent to $2.31 billion from $2.23 billion a year earlier, the company said in a news release.
For the first half net earnings advanced 16.4 percent to $362.7 million, or $1.03 per diluted share, compared with $311.5 million, or 94 cents per diluted share, in the year-ago period.
Revenue for the first half increased 4.1 percent to $4.48 billion from $4.31 billion in 2014.
Revenue growth from average yield reached 2.4 percent and volumes rose 1.1 percent. The company said that reflects its focus on achieving strong pricing levels while expanding the business profitably.
Republic reported progress with its fleet-based initiatives to improve productivity and lower costs. Currently, 15 percent of its fleet operates on natural gas, 70 percent of the residential fleet is automated and 70 percent is certified under its standardized maintenance program.
President and CEO Donald Slager’s take: "Our second quarter results reflect solid execution of our multi-year initiatives while capitalizing on favorable solid waste trends. … "We continued to execute our long-term strategy designed to profitably grow revenue, generate consistent earnings and cash flow growth, deliver unmistakable value to our customers, and increase cash returns to shareholders.”
Guidance update: Republic now expects its full-year diluted earnings per share to be in a range of $2.02 to $2.05, an increase from the original guidance of $1.98 to $2.04.
Zacks Equity Research review: The results beat Zacks Consensus Estimate by 3 cents. It ascribed the earnings increase primarily to higher revenue, which beat the Zacks Consensus Estimate of $2.3 billion. The increase was driven by lower fuel costs and expansion in the solid waste business, offset by continued headwinds in the recycling business.
The performance follows a strong first quarter by Republic, when it posted a 30.1 percent increase in net profits. Revenue increased 4.4 percent. In the second quarter, one of the company’s investment highlights was an announced plan for a 20-megawatt landfill gas-to-energy (LFGTE) facility at its Sunshine Canyon landfill near Los Angeles.