Republic Services
Republic Services provides environmental services including solid waste collection, transfer, disposal, and recycling. RSG’s operating units provide solid waste services for commercial, industrial, municipal, and residential customers. Republic Service employees about 35,000 employees, serving markets in 40 states and Puerto Rico.
Recent Events
Republic Services recently announced its completion a merger with Allied Waste Industries. The combined company will be based in Phoenix and will trade under Republic Services name.
RSG said the merger creates a company with expected pro forma annual revenue of approximately $9 billion and a total market capitalization of approximately $8 billion. The new company is expected to generate more than $150 million in pre-tax annual synergies by 2011.
"Today marks an exciting new beginning for Republic Services and the entire environmental services industry," said Jim O'Connor, Chairman and Chief Executive Officer of Republic Services. "We are looking forward to combining the best practices, complementary assets and experienced executives from two great companies to enhance our leadership position. This is an outstanding opportunity for us to better serve our customers, provide enhanced opportunities to our employees and create shareholder value."
Strong Quarter
In late October, Republic Services posted third quarter revenue of $834.0 million, rising 3.4% from the year-prior total. Net income of $88.7 million, or 48 cents per share, topped the previous year’s $67.0 million, or 35 cents per share.
Republic Services declared a regular quarterly dividend of 19 cents per share, which was paid out on January 16, 2009.
RSG offers an industry-leading dividend yield of 3%. The company’s return on equity (ROE) of 26% more than the doubles the industry average of 11%.
The company’s fourth quarter and year-end results will be available on February 27.