Republic Services Inc. sees increase in Q2 earnings

Phoenix-based Republic Services Inc. has released its earnings for the second quarter of 2021. The report shows the company had a net income of $331.1 million, or $1.03 per diluted share, compared with $225.5 million, or 71 cents per diluted share for the second quarter of 2020. 

According to a news release from Republic, excluding certain benefits and expenses, on an adjusted basis, net income for the three months ending June 30 was $349.9 million, or $1.09 per diluted share, compared with $256.9 million, or 80 cents per diluted share in Q2 2020.

"Our second-quarter results reflect even further acceleration in our business, which is a direct outcome of continued progress on our strategic priorities," says Jon Vander Ark, president and CEO of Republic. "During the second quarter, we grew the top line 15 percent, increased adjusted earnings per share by 36 percent and expanded adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin 110 basis points. As a result of these strong results, we are raising full-year financial guidance for the second time this year."

Q2 highlights:

• The second-quarter earnings per share (EPS) were $1.03 per share, and adjusted EPS were $1.09, an increase of 36 percent over the prior year.
• Year-to-date cash provided by operating activities was $1.5 billion, an increase of 11 percent compared with the prior year. Adjusted free cash flow was $1 billion, an increase of 38 percent versus the prior year.
• Year-to-date cash invested in acquisitions was $567 million, or $521 million net of divestitures.
• Year-to-date cash returned to shareholders through dividends and share repurchases was $363 million.
• Second-quarter core price increased revenue by 5.2 percent. Core price consisted of 6.5 percent in the open market and 3 percent in the restricted portion of the business.
• Second-quarter revenue growth from average yield was 2.6 percent and volume increased 8.1 percent.
• The company's average recycled commodity price per ton during the second quarter was $170. This represents a sequential increase from the first quarter of $37 per ton and an increase of $69 per ton versus the prior year.
• Republic continued to convert consumer price index-, or CPI-, based contracts to more favorable pricing mechanisms for the annual price adjustment. The company now has approximately $950 million in annual revenue tied to the water-sewer-trash index or a fixed-rate increase of 3 percent or greater.

For its full-year 2021 financial guidance, the company says it raised its full-year adjusted diluted EPS guidance to $4 to $4.05 and its full-year adjusted free cash flow guidance to $1.45 billion to $1.48 billion.

Republic says it increased its quarterly dividend from 42.5 cents per share to 46 cents per share, representing an increase of about 8 percent.

"We are raising our quarterly dividend by approximately 8 percent," Vander Ark says. "This is the 17th consecutive year we've increased our dividend, which demonstrates our commitment to efficiently return cash to shareholders."