-- Company reports earnings of $0.47 per share; $0.55 as adjusted
-- Company reports internal growth of 5.8 percent, including positive volume performance of 2.2 percent
-- Adjusted EBITDA margin improves sequentially to 29.5 percent
-- Board adds $650 million to share repurchase authorization
PHOENIX, Oct. 31, 2013 /PRNewswire/ -- Republic Services, Inc. (NYSE:RSG) today reported net income of $171.4 million, or $0.47 per diluted share, for the three months ended Sept. 30, 2013, versus $152.7 million, or $0.42 per diluted share, for the comparable 2012 period. On an adjusted basis, net income for the three months ended Sept. 30, 2013 and 2012, would have been $198.2 million or $0.55 per diluted share, and $193.1 million, or $0.53 per diluted share, respectively.
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Republic's net income for the three months ended Sept. 30, 2013 and 2012, includes a number of charges and other expenses that impacted its results including, among other items, negotiation and withdrawal costs related to the Central States Pension Fund. During the quarter, we completed our withdrawal from the Fund. A detail of charges and other expenses that are excluded from adjusted net income is contained in the Reconciliation of Certain Non-GAAP Measures section of this document.
"We were pleased with our performance in the third quarter which reflects our team's continued focus on profitably growing the business, and resulted in an increase in revenue of 5.8 percent and a sequential improvement in EBITDA margin," said Donald W. Slager, president and CEO. "Additionally, our results were supported by an improvement in solid waste trends including higher levels of landfill special waste. We remain committed to increasing free cash flow, improving return on invested capital and returning cash to shareholders."
Excluding certain charges and other expenses recorded during 2013 and 2012, as described in the Reconciliation of Certain Non-GAAP Measures section of this document, adjusted earnings before interest, taxes, depreciation, depletion, amortization and accretion (adjusted EBITDA) for the three months ended Sept. 30, 2013, would have been $638.2 million or 29.5 percent of revenue, compared to $609.6 million or 29.8 percent, for the comparable 2012 period.
Revenue for the three months ended Sept. 30, 2013, increased to $2,165.4 million compared to $2,046.9 million for the same period in 2012. This increase in revenue of 5.8 percent was made up of increases in average yield of 1.3 percent, fuel recovery fees of 0.5 percent, volume of 2.2 percent, an additional workday of 0.5 percent, recycling commodities of 0.7 percent and acquisitions of 0.6 percent.
Nine months ended Sept. 30, 2013
For the nine months ended Sept. 30, 2013, net income was $352.3 million or $0.97 per diluted share, versus $444.8 million, or $1.20 per diluted share, for the comparable 2012 period. On an adjusted basis, net income for the nine months ended Sept. 30, 2013 and 2012, would have been $522.2 million or $1.44 per diluted share, and $552.4 million or $1.50 per diluted share, respectively.
Republic's net income for the nine months ended Sept. 30, 2013 and 2012, includes a number of charges, other expenses and benefits that impacted its results. A detail of charges and other expenses that are excluded from adjusted net income is contained in the Reconciliation of Certain Non-GAAP Measures section of this document.
Excluding certain charges and other expenses recorded during 2013 and 2012, as described in the Reconciliation of Certain Non-GAAP Measures section of this document, adjusted EBITDA for the nine months ended Sept. 30, 2013, would have been $1,789.4 million or 28.5 percent of revenue, compared to $1,791.1 million or 29.4 percent, for the comparable 2012 period.
Revenue for the nine months ended Sept. 30, 2013, increased to $6,275.7 million compared to $6,089.9 million for the same period in 2012. This increase in revenue of 3.1 percent was made up of increases in average yield of 1.3 percent, fuel recovery fees of 0.3 percent, volume of 0.9 percent, recycling commodities of 0.1 percent and acquisitions, net of divestitures of 0.5 percent.
Stock Repurchases
Republic's Board of Directors added $650 million to the existing share repurchase authorization. Approximately $110.6 million remained under the prior authorization. The total authorization is now $760.6 million through Dec. 31, 2015.
Republic Declares Quarterly Dividend
Republic's Board of Directors declared a regular quarterly dividend of $0.26 per share for stockholders of record on Jan. 2, 2014. The dividend will be paid on Jan. 15, 2014.
About Republic Services
Republic is an industry leader in the U.S. non-hazardous solid waste and recycling industry. Through its subsidiaries, Republic's collection companies, transfer stations, recycling centers and landfills focus on providing reliable environmental services and solutions for commercial, industrial, municipal and residential customers. Republic and its employees believe in protecting the planet and applying common sense solutions to customers' waste and recycling challenges.
Republic participates in investor presentations and conferences throughout the year. Interested parties can find a schedule of these conferences at republicservices.com by selecting "Calendar" on the investor relations page. Audio a