Republic Services, Inc.
), a leading waste management company, reported a net income of
$124.6 million or 34 cents per share in first quarter 2013 versus
$142.9 million or 38 cents per share in the year-earlier quarter.
The year-over-year decrease in earnings was primarily
attributable to several non-recurring items such as pension and
Excluding one-time items, adjusted earnings for the reported
quarter were $167.4 million or 46 cents per share compared to
$140.9 million or 38 cents in the year-ago quarter. The adjusted
earnings for the quarter surpassed the Zacks Consensus Estimate
by 6 cents.
Total revenue increased marginally to $1,998.6 million in the
reported quarter from $1,982.4 million in the prior-year period.
The 0.8% year-over-year increase was driven by 1.2% rise in core
price, 0.3% hike in fuel recovery fees and 0.5% inorganic growth,
partially offset by 1.0% decrease in volume and 0.2% dip in
The reported revenues, however, missed the Zacks Consensus
Estimate of 2,008 million. Adjusted EBITDA for first quarter 2013
were $569.3 million versus $556.8 million in the year-ago
Revenues from the
segment increased 2.4% year over year to $1,563.6 million as all
the sub-segments, namely Residential, Commercial, and Industrial
fared relatively better. The
segment revenues inched up 1.0% year over year to $91.5 million.
Revenues from the
segment declined 6.5% year over year in the reported quarter to
$224.4 million, while sale from
segment plummeted 4.0% year over year to $119.1 million.
Cash and cash equivalents were $130.1 million at quarter-end,
while long-term debt (excluding current maturities) totaled
$7,007.8 million. Cash from operating activities aggregated
$419.8 million in the reported quarter compared to $334.2 million
in the previous year. Adjusted free cash flow was $212.8 million
for first quarter 2013 versus $175.3 million in the prior-year
Republic Services has a share repurchase program in place since
Nov 2010. By quarter-end, the company repurchased 31.1 million
shares under this program for $892.5 million at an average price
of $28.69 each, including 2.1 million shares for $67.0 million at
$31.40 per share during the first quarter.
With sequential improvements in core pricing and EBITDA margin,
Republic Services remains focused to further drive its North
American solid waste and recycling businesses. Management also
remained confident of achieving its earlier guidance for the
Republic Services reiterated its adjusted earnings outlook in
the range of $1.86-$1.91 per share for full year 2013. The
company also maintained its adjusted free cash flow guidance of
$675 million to $700 million for the ongoing year, with total
revenue increasing 2.0% to 2.5% year over year.
CLEAN HARBORS (CLH): Free Stock Analysis
REPUBLIC SVCS (RSG): Free Stock Analysis
STERICYCLE INC (SRCL): Free Stock Analysis
WASTE MGMT-NEW (WM): Free Stock Analysis
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Republic Services expects to remain committed to its long-term
strategy with a healthy cash flow and disciplined approach to
cash utilization. At the same time, the company expects to face
severe competitive pressure from industry bigwigs such as
Clean Harbors, Inc.
Waste Management, Inc.
). Republic Services currently has a Zacks Rank #3 (Hold).