Republic Services, Inc.
), a leading waste management company, reported lackluster fourth
quarter and full year 2012 results as the continued challenging
macroeconomic environment took its toll on the performance. The
company reported a net income of $127.0 million or 35 cents per
share in fourth quarter 2012 versus $191.0 million or 51 cents
per share in the year-earlier quarter. Excluding one-time items,
adjusted earnings for the reported quarter were $133.4 million or
37 cents per share compared to $195.3 million or 53 cents in the
year-ago quarter. The adjusted earnings for the quarter missed
the Zacks Consensus Estimate by 6 cents.
For full year 2012, Republic Services reported a net income of
$571.8 million or $1.55 per share vis-à-vis $589.2 million or
$1.56 per share in the preceding year. Excluding one-time items,
adjusted earnings for 2012 were $663.4 million or $1.80 per share
compared to $738.3 million or $1.96 per share in the previous
year. The adjusted earnings for 2012 fell short of the Zacks
Consensus Estimate by 7 cents.
Total revenue increased marginally to $2.028 billion in the
reported quarter from $2.025 billion in the prior-year period.
For full year 2012, total revenue decreased to $8.118 billion
from $8.193 billion in 2011. The 0.9% year-over-year decrease in
revenues was primarily due to a decline in volume and recycling
Adjusted EBITDA for fourth quarter 2012 were $535.1 million
versus $603.6 million in the year-ago quarter. For full year
2012, adjusted EBITDA were $2.289 billion compared to $2.502 in
Revenues from the
segment increased 3.0% year over year to $1.58 billion as all the
sub-segments, namely Residential, Commercial, and Industrial
fared relatively better. The
segment revenues fell 7.9% year over year to $95.3 million.
Revenues from the
segment declined 5.7% year over year in the reported quarter,
while sale from
segment plummeted 15.4% year over year.
Cash and cash equivalents were $67.6 million at year-end 2012,
compared with $66.3 million in the prior-year period. Long-term
debt, excluding current maturities, totaled $7.05 billion at
year-end 2012 compared to $6.89 billion as of Dec 31, 2011.
Cash from operating activities aggregated $1.5 billion for full
year 2012 compared to $1.8 billion in the previous year. Adjusted
free cash flow was $768.2 million for 2012 versus $908.8 million
Republic Services has a share repurchase program in place since
Nov 2010. By the end of 2012, the company repurchased 29.0
million shares under this program at an average price of $28.49
each, including 4.3 million shares for $117.3 million at $27.56
per share during the fourth quarter.
Adjusted earnings are projected to be in the range of $1.86-$1.91
per share in 2013. The company expects adjusted free cash flow of
$675 million to $700 million in the ongoing year, with total
revenue increasing 2.0% to 2.5% year over year.
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.
), carrying a Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy),
respectively. Another competitor worth mentioning is
). Republic Services has a Zacks Rank #2 (Buy).
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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