Republic Services reports 15 percent growth in total revenue for 2021

Republic Services Inc., Phoenix, has released its financials for the fourth quarter and full year of 2021. 

The company reported net income of $313.1 million, or 98 cents per diluted share, in the fourth quarter compared with $235.5 million, or 74 cents per diluted share, in 2020. Excluding certain benefits and expenses, on an adjusted basis, net income for the fourth quarter was $325.5 million, or $1.02 per diluted share, compared with $320.4 million, or $1 per diluted share, in 2020. 

For the full year, net income was $1,290.4 million, or $4.04 per diluted share, compared with $967.2 million, or $3.02 per diluted share, in 2020. On an adjusted basis, net income for 2021 was $1,330.6 million, or $4.17 per diluted share, versus $1,137.8 million, or $3.56 per diluted share, for 2020. 

"We finished the year strong, capping off our best year of financial performance in company history,” said Jon Vander Ark, president and chief executive officer of Republic during a Feb. 10 conference call. “We consistently exceeded expectations and delivered double-digit growth in revenue, EBITDA (earnings before income, taxes, depreciation and amortization), earnings and free cash flow during the year. Additionally, we invested over $1 billion in value-creating acquisitions and returned over $800 million to shareholders through dividends and share repurchases." 

Full-year earnings per share, or EPS, were $4.04, and adjusted EPS were $4.17 per share, an increase of 17 percent over the prior year. Adjusted EPS exceeded the company's upwardly revised full-year guidance. 

Full-year cash provided by operating activities was $2.79 billion, an increase of 13 percent compared with the prior year. Adjusted free cash flow, a non-generally accepted accounting principles measure, totaled $1.52 billion, a 23 percent increase compared with 2020. Adjusted free cash flow exceeded the company's upwardly revised full-year guidance, according to the financial report. 

Full-year adjusted EBITDA totaled $3.38 billion. Adjusted EBITDA margin was 30 percent of revenue, representing a 60 basis point increase over the prior year. 

Republic invested $1.06 billion in acquisitions, or $1.02 billion net of divestitures, which is the highest level of acquisition investment in over a decade, Vander Ark said. Recently, the company announced the acquisition of U.S. Ecology, an environmental solutions provider based in Boise, Idaho. Vander Ark said he expects the deal to close at the end of the second quarter. 

Vander Ark said the company continues to make progress on the rollout of the next phase of the RISE platform, its dispatch operations technology. The company says it has implemented tablets in about 90 percent of its container fleet. 

“With these new capabilities, we generated operational efficiencies and delivered over 1 million automated proactive notifications to customers last year,” Vander Ark said. “We will begin to point tablets to the residential fleet early this year and expect to be complete by mid-2023.”

Looking forward, the company expects adjusted diluted earnings per share to be in the range of $4.58 to $4.65 and adjusted free cash flow to be about $1,625 million to $1,675 million. Republic also expects adjusted EBITDA margin to expand over full-year 2021 performance by 30 to 40 basis points. 

Republic said it plans to invest at least $500 million in acquisitions and $175 million in solar energy investments that qualify for tax credits. 

"We expect to deliver another strong year of earnings and free cash flow in 2022 through outsized revenue growth, margin expansion and free cash flow conversion improvement," Vander Ark said. "This financial outlook is a direct result of leveraging our broad capabilities, delivering comprehensive products and services, and developing innovative solutions to drive profitable growth and create a more sustainable world."