Republic Services, Inc. ( reported impressive third-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. RSG Quick Quote RSG - Free Report)
Adjusted earnings (excluding 2 cents from non-recurring items) per share of $1.34 outpaced the consensus mark by 10.7% and improved 20.7% year over year.
Republic Services' average recycled-commodity price per ton sold in the third quarter was $162, down $56 on a sequential basis and $68 year over year.
So far this year, shares of Republic Services have gained 1.4% against an 11.5% decline of the
industry it belongs to. Image Source: Zacks Investment Research Revenues
Quarterly revenues of $3.6 billion surpassed the consensus estimate by 1.9% and increased 22.6% year over year. RSG’s top line includes a favorable impact of 10.2% from internal growth and 12.4% from acquisitions/divestitures.
Revenues in the Collection segment totaled $2.43 billion, up 14.1% year over year. Revenues in the Transfer segment (net) amounted to $189.3 million, rising 3.6% year over year. Revenues in the Landfill segment (net) totaled $412.2 million, increasing 10.2% year over year. Environmental solutions segment’s revenues (net) of $397.2 million surged more than 100% year over year. Other segment’s revenues of $172.3 million increased 10.4% year over year.
Adjusted EBITDA margin of 29.2% declined 130 basis points (bps) from the prior-year quarter’s levels.
Operating income was $664.3 million, up 17.7% from the year-ago quarter’s levels. The operating income margin declined to 18.5% from the year-ago quarter’s figure.
Total selling, general and administrative expenses were $362.8 million, up 21% from the year-ago quarter’s figure.
Balance Sheet and Cash Flow
Republic Services exited third-quarter 2022 with cash and cash equivalents of $81.4 million compared with $119.4 million at the end of the prior quarter.
Long-term debt (net of current maturities) was $11.2 billion compared with $11.6 billion at the end of the prior quarter.
RSG generated $819.9 million of cash from operating activities in the reported quarter. The adjusted free cash flow was $513.2 million.
In the September quarter of 2022, RSG returned $145.3 million of total cash to its shareholders (including $203.5 million of share repurchases and $145.3 million of dividends paid).
During the reported quarter, RSG did not repurchase any shares. As of Jun 30, 2022, the remaining authorized purchase capacity under October 2020 buyback program was $1.5 billion.
Currently, Republic Services carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Dividend Declared
RSG announced that its board cleared a quarterly cash dividend of 49.5 cents per share. The dividend will be paid out on Jan 13, 2023, to its shareholders of record as of Jan 3.
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