付属書99.1
リパブリックサービス、インク。が報告書を提出しました
2024年第3四半期の結果
● | 第3四半期の売上高総額は前年比6.5％増 | |||||||
● | 1株当たりの報告純利益は1.80ドル、調整後の1.81ドル | |||||||
● | 当期純利益率が130ベースポイント拡大し、調整後のEBITDAマージンが210ベースポイント拡大 | |||||||
● | 当期の運用キャッシュフローは29.1億ドルを生み出し、調整後フリーキャッシュフローは17.4億ドル | |||||||
● | グレートプレイス・トゥ・ワーク認定を受けました® ８年連続で | |||||||
2024年10月29日のフェニックス – Republic Services, Inc.（NYSE：RSG）は、2024年9月30日に終了した3か月間の当期純利益が56570万ドル、または希薄化後のシェア1.80ドルで、2023年と比較した場合の当期純利益48020万ドル、または希薄化後のシェア1.52ドルを報告しました。特定の経費やその他の項目を除くと、調整後の基準で、2024年9月30日に終了した3か月間の当期純利益は56830万ドル、または希薄化後のシェア1.81ドルで、2023年と比較した場合の当期純利益48830万ドル、または希薄化後のシェア1.54ドルとなりました。
"第3四半期の強力な業績は、戦略的な優先事項の実行の直接的な結果であると述べました」と、ジョン・ヴァンダーアーク社長兼最高経営責任者は述べています。 「原価物価上昇に先んじた価格設定と効果的な原価管理を通じて、調整後のEBITDAとEPSの二桁成長を達成し、調整後のEBITDAマージンを200ベーシスポイント以上拡大しました。我々の結果は引き続き、全セクターのために創出される価値と、持続可能な成長を促進するよく設計された戦略の力を示しています。 持続可能な成長を推進し、全利害関係者に創造される価値の力を示す、良く設計された戦略の力、それが実感されています。
1
2024年第三四半期および年初来のハイライト:
•第3四半期の売上高の成長率は6.5パーセントで、そのうち4.2パーセントは有機成長、2.3パーセントは買収による成長を含みます。
•第3四半期の売上高におけるコア価格は、売上高を6.2パーセント増加させました。関連ビジネスの売上高におけるコア価格は、売上高を7.4パーセント増加させ、そのうちの9.1パーセントがオープンマーケットで、4.8パーセントがビジネスの制限部分で構成されていました。
•売上高の平均収益率から見た第3四半期の売上高成長率は4.6パーセントで、出来高が売上高を1.2パーセント減少させました。関連ビジネス売上高における平均収益率から見た売上高成長率は5.5パーセントで、出来高が関連ビジネス売上高を1.5パーセント減少させました。
•四半期の当期純利益は56570万ドルで、利益率は13.9パーセントでした。
•三四半期のepsは1.80ドルで、前年比18.4パーセント増加しました。
•第3四半期の調整後EPS、非GAAP基準、は1株あたり1.81ドルで、前年比で17.5パーセント増加しました。
•第3四半期の調整後EBITDAは、非GAAP基準で130,330万ドルで、売上高の32.0％の調整後EBITDAのマージンは、前年比210ベースポイント増の売上高でした。
•企業後のビジネスへの投資を含む、今年迄の取得に投資された現金は10440万ドルでした。
•株主への年初来の現金配当は83430万ドルで、そのうち32950万ドルは株の取り消し、50480万ドルは配当支払いに含まれていました。
•当社のリサイクルセンターで販売された1トン当たりの平均リサイクルベンチマーク価格は第3四半期に177ドルでした。これは前年比1トンあたり65ドルの増加を表しています。
•会社は四半期中に再生可能な天然ガスプロジェクトを2つ完了し、運用を開始しました。
•会社は、2024年のガイダンス範囲の下限付近で売上高を予想しています。会社は、2024年の調整後EBITDAガイダンス範囲の上限を達成することを期待しています。
会社は四半期配当を宣言しました
Republicは、取締役会が2025年1月2日にレコード株主に対してシェアあたり$0.58の定期四半期配当を宣言したことを以前発表しています。配当金は2025年1月15日に支払われます。
2
特定の業績指標と非GAAP指標のプレゼンテーション
調整後の希薄化後1株利益、調整後の当期純利益、リパブリック、EBITDA、調整後のEBITDA、調整後のEBITDAマージン、ビジネスタイプ別の調整後のEBITDA、ビジネスタイプ別の調整後のEBITDAマージンおよび調整後のフリーキャッシュフローについては、この文書のPerformance Metrics and Reconciliations of Certain Non-GAAP Measuresセクションで説明されています。
リパブリックサービシズについて
リパブリックサービスは、環境業種のリーダーです。子会社を通じて、同社はリサイクリング、一般廃棄物、特殊廃棄物、危険廃棄物、場所サービスを含む、顧客に最も包括的な製品やサービスを提供しています。リパブリックの業界をリードする循環推進と脱炭素化への取り組みは、顧客と協力してより持続可能な世界を創造するビジョンを実現するのに役立っています。詳細については、以下のサイトをご覧ください。 RepublicServices.com.
| 詳細については、以下にお問い合わせください： | |||||
報道関係者からのお問い合わせ | 投資家の方は以下までお問い合わせください。 | ||||
Roman Blahoski（480）718-0328 | Aaron Evans（480）718-0309 | ||||
media@RepublicServices.com | investor@RepublicServices.com | ||||
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| 補足未監査の財務情報 | |||||||||||
| および運営データ | |||||||||||
| リパブリック・サービス社 | |||||||||||
| (千ドル、株式および株式当たりのデータを除く) | |||||||||||
| （百万単位、1株当たりの金額を除く） | |||||||||||
| 9月30日 | 12月31日 | ||||||||||
| 2024 | 2023 | ||||||||||
| （未確定） | |||||||||||
| 資産 | |||||||||||
| 流動資産: | |||||||||||
| 現金及び現金同等物 | $ | 83.4 | $ | 140.0 | |||||||
売掛金、$75.2および$83.2につき、貸倒引当金など | 1,847.5 | 1,768.4 | |||||||||
| 前払費用およびその他の流動資産 | 417.5 | 472.6 | |||||||||
| 流動資産合計 | 2,348.4 | 2,381.0 | |||||||||
| 制限付現金および売買可能証券 | 203.1 | 163.6 | |||||||||
| 有形固定資産、正味額 | 11,525.6 | 11,350.9 | |||||||||
| のれん | 15,883.1 | 15,834.5 | |||||||||
| その他無形資産所有純額 | 454.8 | 496.2 | |||||||||
| その他の資産 | 1,399.2 | 1,183.9 | |||||||||
| 総資産 | $ | 31,814.2 | $ | 31,410.1 | |||||||
| 負債及び株主資本 | |||||||||||
| 流動負債： | |||||||||||
| 支払調整 | $ | 1,225.4 | $ | 1,411.5 | |||||||
| 短期借入金および長期債務の流動部分 | 513.0 | 932.3 | |||||||||
| 前払収益 | 485.5 | 467.3 | |||||||||
| 発生したゴミ処分場および環境コスト、流動部分 | 140.9 | 141.6 | |||||||||
| 未払利息 | 114.4 | 104.1 | |||||||||
| その他の未払負債 | 1,162.3 | 1,171.5 | |||||||||
| 流動負債合計 | 3,641.5 | 4,228.3 | |||||||||
| 新規買債務、流動負債を除く長期負債 | 12,047.4 | 11,887.1 | |||||||||
| 発生したゴミ処分場および環境コスト、流動部分を差し引いた金額 | 2,347.1 | 2,281.0 | |||||||||
| 繰延税金およびその他の長期税務 passojis、差額 | 1,591.0 | 1,526.8 | |||||||||
| 保険準備金、現在行使部分を考慮 | 381.8 | 348.8 | |||||||||
| その他の長期負債 | 575.2 | 594.6 | |||||||||
| コミットメント及び事態に関する注記 | |||||||||||
| 株主資本： | |||||||||||
优先株式、株式一株あたりの面額0.01ドル、承認済み株式50株、発行済み株式なし | — | — | |||||||||
普通株式、株式一株あたりの面額0.01ドル、承認済み株式750株、株式321.3株および320.7株を含む、それぞれの株を持つ株主保有株を発行済み | 3.2 | 3.2 | |||||||||
| 追加の資本金 | 2,945.9 | 2,900.8 | |||||||||
| 留保利益 | 9,443.9 | 8,433.9 | |||||||||
自己所有株式、取得原価ベース；それぞれ8.0株および6.1株 | (1,145.6) | (783.5) | |||||||||
| 税引前累積その他包括損失 | (18.6) | (12.1) | |||||||||
| リパブリック サービス インクの株主資本合計 | 11,228.8 | 10,542.3 | |||||||||
| 連結子会社における非支配持分 | 1.4 | 1.2 | |||||||||
| 株主資本合計 | 11,230.2 | 10,543.5 | |||||||||
| 負債及び株主資本の合計 | $ | 31,814.2 | $ | 31,410.1 | |||||||
4
| リパブリック・サービス社 | |||||||||||||||||||||||
| 未監査の連結損益計算書 | |||||||||||||||||||||||
| (百万ドル、1株当たりのデータを除く) | |||||||||||||||||||||||
| 9月30日までの3か月間 | 9月30日までの9ヶ月間 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| 売上高 | $ | 4,076.2 | $ | 3,825.9 | $ | 11,986.0 | $ | 11,132.9 | |||||||||||||||
| 経費: | |||||||||||||||||||||||
| 運営費用 | 2,366.9 | 2,284.3 | 7,032.7 | 6,678.0 | |||||||||||||||||||
| 減価償却費および原価償却費 | 422.0 | 382.3 | 1,234.2 | 1,099.4 | |||||||||||||||||||
| 収益性: | 26.7 | 24.6 | 80.1 | 73.2 | |||||||||||||||||||
| 販売・一般管理費用 | 406.0 | 402.1 | 1,227.6 | 1,177.3 | |||||||||||||||||||
| ビジネスの売却と減損による損益、純額 | 0.5 | (1.5) | (0.9) | (1.5) | |||||||||||||||||||
| リストラ手当 | 8.2 | 6.3 | 19.7 | 27.3 | |||||||||||||||||||
| 営業利益 | 845.9 | 727.8 | 2,392.6 | 2,079.2 | |||||||||||||||||||
| 利子費用 | (138.2) | (127.6) | (405.8) | (378.8) | |||||||||||||||||||
| 債務の償還に伴う損失 | (2.4) | — | (2.4) | (0.2) | |||||||||||||||||||
| (損失) 非連結法適用関連会社における収益 | (73.4) | 2.8 | (116.0) | 0.2 | |||||||||||||||||||
| 利息収入 | 4.3 | 2.0 | 7.4 | 5.0 | |||||||||||||||||||
| その他の収益・損失 | 10.3 | 1.3 | 23.5 | 3.2 | |||||||||||||||||||
| 税引前当期純利益 | 646.5 | 606.3 | 1,899.3 | 1,708.6 | |||||||||||||||||||
| 所得税引当金 | 80.6 | 126.0 | 367.8 | 416.9 | |||||||||||||||||||
| 当期純利益 | 565.9 | 480.3 | 1,531.5 | 1,291.7 | |||||||||||||||||||
| 持分法適用関連会社における非支配持分に帰属する当期純利益 | (0.2) | (0.1) | (0.5) | (0.3) | |||||||||||||||||||
| 共和リソーシズ社に帰属する当期純利益 | $ | 565.7 | $ | 480.2 | $ | 1,531.0 | $ | 1,291.4 | |||||||||||||||
| リパブリック·サービス社の株主に帰属する1株当たりの基本利益： | |||||||||||||||||||||||
| 1株当たり基本利益 | $ | 1.80 | $ | 1.52 | $ | 4.86 | $ | 4.08 | |||||||||||||||
| 平均発行株数 | 314.0 | 316.1 | 314.7 | 316.5 | |||||||||||||||||||
| リパブリック·サービス社の株主に帰属する希薄化後1株当たりの利益： | |||||||||||||||||||||||
| 1株当たり希薄化後利益 | $ | 1.80 | $ | 1.52 | $ | 4.86 | $ | 4.07 | |||||||||||||||
| 発行済みの普通株および普通株に換算される株式の加重平均数 | 314.4 | 316.6 | 315.1 | 317.0 | |||||||||||||||||||
| 普通株式に対するキャッシュ配当金額 | $ | 0.580 | $ | 0.535 | $ | 1.650 | $ | 1.525 | |||||||||||||||
5
| REPUBLIC SERVICES, INC. | |||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (in millions) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash provided by operating activities: | |||||||||||
| Net income | $ | 1,531.5 | $ | 1,291.7 | |||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
| Depreciation, amortization, depletion and accretion | 1,314.3 | 1,172.6 | |||||||||
| Non-cash interest expense | 54.0 | 65.5 | |||||||||
| Stock-based compensation | 31.0 | 31.7 | |||||||||
| Deferred tax provision | 70.2 | 52.2 | |||||||||
| Provision for doubtful accounts, net of adjustments | 19.9 | 38.6 | |||||||||
| Loss on extinguishment of debt | 2.4 | 0.2 | |||||||||
| Loss (gain) on disposition of assets and asset impairments, net | 5.9 | (3.7) | |||||||||
| Loss (income) from unconsolidated equity method investments | 116.0 | (0.2) | |||||||||
| Other non-cash items | (10.9) | (0.6) | |||||||||
| Change in assets and liabilities, net of effects from business acquisitions and divestitures: | |||||||||||
| Accounts receivable | (99.9) | (161.0) | |||||||||
| Prepaid expenses and other assets | (59.5) | 121.4 | |||||||||
| Accounts payable | (26.3) | 93.5 | |||||||||
| Capping, closure and post-closure expenditures | (35.3) | (40.5) | |||||||||
| Remediation expenditures | (44.9) | (31.4) | |||||||||
| Other liabilities | 21.9 | 86.9 | |||||||||
| Proceeds for retirement of certain hedging relationships | 23.7 | 2.4 | |||||||||
| Cash provided by operating activities | 2,914.0 | 2,719.3 | |||||||||
| Cash used in investing activities: | |||||||||||
| Purchases of property and equipment | (1,357.4) | (1,083.2) | |||||||||
| Proceeds from sales of property and equipment | 8.6 | 25.0 | |||||||||
| Cash used in acquisitions and investments, net of cash and restricted cash acquired | (400.4) | (1,051.1) | |||||||||
| Cash received from business divestitures | 2.5 | 1.7 | |||||||||
| Purchases of restricted marketable securities | (17.9) | (13.8) | |||||||||
| Sales of restricted marketable securities | 16.4 | 13.1 | |||||||||
| Other | (0.3) | 7.5 | |||||||||
| Cash used in investing activities | (1,748.5) | (2,100.8) | |||||||||
| Cash used in financing activities: | |||||||||||
| Proceeds from credit facilities and notes payable, net of fees | 15,616.1 | 27,940.2 | |||||||||
| Proceeds from issuance of senior notes, net of discount and fees | 888.8 | 1,183.6 | |||||||||
| Payments of credit facilities and notes payable | (16,835.1) | (29,024.7) | |||||||||
| Issuances of common stock, net | (17.8) | (4.3) | |||||||||
| Purchases of common stock for treasury | (320.7) | (190.4) | |||||||||
| Cash dividends paid | (504.8) | (469.5) | |||||||||
| Distributions paid to non-controlling interests in consolidated subsidiary | (0.4) | — | |||||||||
| Contingent consideration payments | (14.2) | (14.1) | |||||||||
| Cash used in financing activities | (1,188.1) | (579.2) | |||||||||
| Effect of foreign exchange rate changes on cash | 1.1 | 0.2 | |||||||||
| (Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (21.5) | 39.5 | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 227.5 | 214.3 | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 206.0 | $ | 253.8 | |||||||
6
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K as of and for the year ended December 31, 2023. All amounts below are in millions and as a percentage of our revenue, except per share data.
REVENUE
The following table reflects our total revenue by line of business for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Collection: | |||||||||||||||||||||||||||||||||||||||||||||||
| Residential | $ | 739.7 | 18.1 | % | $ | 718.2 | 18.8 | % | $ | 2,196.1 | 18.3 | % | $ | 2,103.4 | 18.9 | % | |||||||||||||||||||||||||||||||
| Small-container | 1,209.1 | 29.7 | 1,126.3 | 29.4 | 3,599.2 | 30.0 | 3,270.2 | 29.4 | |||||||||||||||||||||||||||||||||||||||
| Large-container | 774.6 | 19.0 | 753.0 | 19.7 | 2,277.7 | 19.0 | 2,192.4 | 19.7 | |||||||||||||||||||||||||||||||||||||||
| Other | 18.4 | 0.5 | 19.0 | 0.5 | 54.4 | 0.5 | 52.0 | 0.5 | |||||||||||||||||||||||||||||||||||||||
Total collection | 2,741.8 | 67.3 | 2,616.5 | 68.4 | 8,127.4 | 67.8 | 7,618.0 | 68.5 | |||||||||||||||||||||||||||||||||||||||
| Transfer | 458.6 | 444.3 | 1,335.8 | 1,280.5 | |||||||||||||||||||||||||||||||||||||||||||
| Less: intercompany | (247.0) | (238.1) | (733.2) | (703.3) | |||||||||||||||||||||||||||||||||||||||||||
| Transfer, net | 211.6 | 5.2 | 206.2 | 5.4 | 602.6 | 5.0 | 577.2 | 5.2 | |||||||||||||||||||||||||||||||||||||||
| Landfill | 768.4 | 743.2 | 2,234.3 | 2,172.4 | |||||||||||||||||||||||||||||||||||||||||||
| Less: intercompany | (315.6) | (306.9) | (936.9) | (912.6) | |||||||||||||||||||||||||||||||||||||||||||
| Landfill, net | 452.8 | 11.1 | 436.3 | 11.4 | 1,297.4 | 10.8 | 1,259.8 | 11.3 | |||||||||||||||||||||||||||||||||||||||
| Environmental solutions | 479.6 | 424.0 | 1,408.4 | 1,273.8 | |||||||||||||||||||||||||||||||||||||||||||
| Less: intercompany | (14.9) | (19.2) | (47.8) | (62.4) | |||||||||||||||||||||||||||||||||||||||||||
| Environmental solutions, net | 464.7 | 11.4 | 404.8 | 10.6 | 1,360.6 | 11.4 | 1,211.4 | 10.9 | |||||||||||||||||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||||||||||||||||||||
Recycling processing and commodity sales | 107.6 | 2.6 | 76.3 | 2.0 | 310.6 | 2.6 | 226.6 | 2.0 | |||||||||||||||||||||||||||||||||||||||
| Other non-core | 97.7 | 2.4 | 85.8 | 2.2 | 287.4 | 2.4 | 239.9 | 2.1 | |||||||||||||||||||||||||||||||||||||||
| Total other | 205.3 | 5.0 | 162.1 | 4.2 | 598.0 | 5.0 | 466.5 | 4.1 | |||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 4,076.2 | 100.0 | % | $ | 3,825.9 | 100.0 | % | $ | 11,986.0 | 100.0 | % | $ | 11,132.9 | 100.0 | % | |||||||||||||||||||||||||||||||
The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Average yield | 4.6 | % | 5.8 | % | 5.4 | % | 6.1 | % | |||||||||||||||||||||||||||
| Fuel recovery fees | (0.2) | (1.1) | (0.2) | (0.2) | |||||||||||||||||||||||||||||||
Total price | 4.4 | 4.7 | 5.2 | 5.9 | |||||||||||||||||||||||||||||||
| Volume | (1.2) | 0.1 | (1.0) | 0.7 | |||||||||||||||||||||||||||||||
| Change in workdays | 0.3 | (0.4) | 0.1 | — | |||||||||||||||||||||||||||||||
| Recycling processing and commodity sales | 0.7 | (0.2) | 0.5 | (0.8) | |||||||||||||||||||||||||||||||
| Environmental solutions | — | 0.4 | (0.2) | 0.4 | |||||||||||||||||||||||||||||||
| Total internal growth | 4.2 | 4.6 | 4.6 | 6.2 | |||||||||||||||||||||||||||||||
| Acquisitions / divestitures, net | 2.3 | 1.7 | 3.1 | 5.3 | |||||||||||||||||||||||||||||||
| Total | 6.5 | % | 6.3 | % | 7.7 | % | 11.5 | % | |||||||||||||||||||||||||||
| Core price | 6.2 | % | 7.0 | % | 6.6 | % | 7.5 | % | |||||||||||||||||||||||||||
7
Average yield is defined as revenue growth from the change in average price per unit of service, expressed as a percentage. Core price is defined as price increases to our customers and fees, excluding fuel recovery fees, net of price decreases to retain customers. We also measure changes in core price, average yield and volume as a percentage of related-business revenue, defined as total revenue excluding recycled commodities, fuel recovery fees and environmental solutions revenue, to determine the effectiveness of our pricing and organic growth strategies. The following table reflects core price, average yield and volume as a percentage of related-business revenue for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| As a % of Related Business | As a % of Related Business | ||||||||||||||||||||||
| Core price | 7.4 | % | 8.6 | % | 8.0 | % | 8.9 | % | |||||||||||||||
| Average yield | 5.5 | % | 7.2 | % | 6.5 | % | 7.2 | % | |||||||||||||||
| Volume | (1.5) | % | 0.1 | % | (1.2) | % | 0.8 | % | |||||||||||||||
The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Yield | Volume | Yield | Volume | Yield | Volume | Yield | Volume | ||||||||||||||||||||||||||||||||||||||||
| Collection: | |||||||||||||||||||||||||||||||||||||||||||||||
| Residential | 5.4 | % | (2.9) | % | 6.6 | % | (1.5) | % | 6.0 | % | (2.7) | % | 5.4 | % | 0.2 | % | |||||||||||||||||||||||||||||||
| Small-container | 7.5 | % | (0.4) | % | 9.4 | % | 0.5 | % | 9.2 | % | (0.2) | % | 9.7 | % | 1.2 | % | |||||||||||||||||||||||||||||||
| Large-container | 5.3 | % | (3.6) | % | 8.4 | % | (1.7) | % | 6.2 | % | (3.8) | % | 9.0 | % | (0.8) | % | |||||||||||||||||||||||||||||||
| Landfill: | |||||||||||||||||||||||||||||||||||||||||||||||
| Municipal solid waste | 5.1 | % | 0.3 | % | 5.9 | % | 0.6 | % | 5.4 | % | 1.0 | % | 5.9 | % | 0.8 | % | |||||||||||||||||||||||||||||||
| Construction and demolition waste | 4.5 | % | 2.7 | % | 8.2 | % | (6.2) | % | 4.6 | % | (0.4) | % | 6.4 | % | (2.9) | % | |||||||||||||||||||||||||||||||
| Special waste | — | % | (1.8) | % | — | % | 8.2 | % | — | % | (1.9) | % | — | % | 12.3 | % | |||||||||||||||||||||||||||||||
COST OF OPERATIONS
The following table summarizes the major components of our cost of operations for the three and nine months ended September 30, 2024 and 2023 (in millions of dollars and as a percentage of revenue):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Labor and related benefits | $ | 813.7 | 20.0 | % | $ | 744.1 | 19.4 | % | $ | 2,412.3 | 20.1 | % | $ | 2,233.0 | 20.1 | % | |||||||||||||||||||||||||||||||
| Transfer and disposal costs | 280.2 | 6.9 | 268.7 | 7.0 | 832.3 | 7.0 | 788.6 | 7.1 | |||||||||||||||||||||||||||||||||||||||
| Maintenance and repairs | 379.8 | 9.3 | 357.6 | 9.3 | 1,105.6 | 9.2 | 1,036.1 | 9.3 | |||||||||||||||||||||||||||||||||||||||
Transportation and subcontract costs | 303.8 | 7.4 | 304.9 | 8.0 | 884.4 | 7.4 | 881.5 | 7.9 | |||||||||||||||||||||||||||||||||||||||
| Fuel | 113.4 | 2.8 | 136.7 | 3.6 | 360.4 | 3.0 | 406.3 | 3.6 | |||||||||||||||||||||||||||||||||||||||
Disposal fees and taxes | 90.6 | 2.2 | 89.3 | 2.3 | 264.7 | 2.2 | 262.1 | 2.4 | |||||||||||||||||||||||||||||||||||||||
| Landfill operating costs | 88.1 | 2.1 | 82.6 | 2.2 | 274.5 | 2.3 | 248.4 | 2.2 | |||||||||||||||||||||||||||||||||||||||
| Risk management | 102.8 | 2.5 | 99.4 | 2.6 | 300.3 | 2.5 | 287.1 | 2.6 | |||||||||||||||||||||||||||||||||||||||
| Other | 194.5 | 4.8 | 201.0 | 5.4 | 598.2 | 5.0 | 534.9 | 4.8 | |||||||||||||||||||||||||||||||||||||||
| Total cost of operations | $ | 2,366.9 | 58.0 | % | $ | 2,284.3 | 59.8 | % | $ | 7,032.7 | 58.7 | % | $ | 6,678.0 | 60.0 | % | |||||||||||||||||||||||||||||||
These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our cost of operations by cost component to that of other companies and of ours for prior periods.
8
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table summarizes our selling, general and administrative expenses for the three and nine months ended September 30, 2024 and 2023 (in millions of dollars and as a percentage of revenue):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Salaries | $ | 278.5 | 6.9 | % | $ | 254.2 | 6.6 | % | $ | 834.1 | 6.9 | % | $ | 770.6 | 6.9 | % | |||||||||||||||||||||||||||||||
| Provision for doubtful accounts | — | — | 18.9 | 0.5 | 19.9 | 0.2 | 38.6 | 0.3 | |||||||||||||||||||||||||||||||||||||||
| Other | 127.5 | 3.1 | 122.8 | 3.2 | 373.6 | 3.1 | 343.8 | 3.1 | |||||||||||||||||||||||||||||||||||||||
| Subtotal | 406.0 | 10.0 | 395.9 | 10.3 | 1,227.6 | 10.2 | 1,153.0 | 10.3 | |||||||||||||||||||||||||||||||||||||||
| US Ecology acquisition integration and deal costs | — | — | 6.2 | 0.2 | — | — | 24.3 | 0.2 | |||||||||||||||||||||||||||||||||||||||
| Total selling, general and administrative expenses | $ | 406.0 | 10.0 | % | $ | 402.1 | 10.5 | % | $ | 1,227.6 | 10.2 | % | $ | 1,177.3 | 10.5 | % | |||||||||||||||||||||||||||||||
These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our selling, general and administrative expenses by cost component to those of other companies and of ours for prior periods.
PERFORMANCE METRICS AND RECONCILIATIONS OF CERTAIN NON-GAAP MEASURES
The following tables calculate EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA and adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, adjusted diluted earnings per share, and adjusted free cash flow, which are not measures determined in accordance with U.S. generally accepted accounting principles (U.S. GAAP), for the three and nine months ended September 30, 2024 and 2023. Our definitions of the foregoing non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.
9
Adjusted EBITDA and Adjusted EBITDA Margin
The following table calculates adjusted EBITDA and adjusted EBITDA margin for the three and nine months ended September 30, 2024 and 2023 (in millions of dollars and as a percentage of revenue):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Republic Services, Inc. and net income margin | $ | 565.7 | 13.9 | % | $ | 480.2 | 12.6 | % | 1,531.0 | 12.8 | % | $ | 1,291.4 | 11.6 | % | ||||||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 0.2 | 0.1 | 0.5 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 80.6 | 126.0 | 367.8 | 416.9 | |||||||||||||||||||||||||||||||||||||||||||
| Other income, net | (10.3) | (1.3) | (23.5) | (3.2) | |||||||||||||||||||||||||||||||||||||||||||
| Interest income | (4.3) | (2.0) | (7.4) | (5.0) | |||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 138.2 | 127.6 | 405.8 | 378.8 | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation, amortization and depletion | 422.0 | 382.3 | 1,234.2 | 1,099.4 | |||||||||||||||||||||||||||||||||||||||||||
| Accretion | 26.7 | 24.6 | 80.1 | 73.2 | |||||||||||||||||||||||||||||||||||||||||||
| EBITDA and EBITDA margin | $ | 1,218.8 | 29.9 | % | $ | 1,137.5 | 29.7 | % | $ | 3,588.5 | 29.9 | % | $ | 3,251.8 | 29.2 | % | |||||||||||||||||||||||||||||||
| Loss from unconsolidated equity method investment | 73.4 | (2.8) | 116.0 | (0.2) | |||||||||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related costs | 2.4 | — | 2.4 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 8.2 | 6.3 | 19.7 | 27.3 | |||||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on business divestitures and impairments, net | 0.5 | (1.5) | (0.9) | (1.5) | |||||||||||||||||||||||||||||||||||||||||||
| US Ecology acquisition integration and deal costs | — | 6.2 | — | 24.3 | |||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | $ | 84.5 | $ | 8.2 | $ | 137.2 | $ | 50.1 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA and adjusted EBITDA margin | $ | 1,303.3 | 32.0 | % | $ | 1,145.7 | 29.9 | % | $ | 3,725.7 | 31.1 | % | $ | 3,301.9 | 29.7 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin by Business Type
The following table summarizes revenue, adjusted EBITDA and adjusted EBITDA margin by business type for the three and nine months ended September 30, 2024 and 2023 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||
| Recycling & Waste | Environmental Solutions | Total | Recycling & Waste | Environmental Solutions | Total | |||||||||||||||||||||||||||||||||
Revenue | $ | 3,611.5 | $ | 464.7 | $ | 4,076.2 | $ | 3,421.1 | $ | 404.8 | $ | 3,825.9 | ||||||||||||||||||||||||||
Adjusted EBITDA(a) | $ | 1,185.0 | $ | 118.3 | $ | 1,303.3 | $ | 1,054.3 | $ | 91.4 | $ | 1,145.7 | ||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 32.8 | % | 25.5 | % | 32.0 | % | 30.8 | % | 22.6 | % | 29.9 | % | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||
| Recycling & Waste | Environmental Solutions | Total | Recycling & Waste | Environmental Solutions | Total | |||||||||||||||||||||||||||||||||
Revenue | $ | 10,625.4 | $ | 1,360.6 | $ | 11,986.0 | $ | 9,921.5 | $ | 1,211.4 | $ | 11,132.9 | ||||||||||||||||||||||||||
Adjusted EBITDA(a) | $ | 3,408.5 | $ | 317.2 | $ | 3,725.7 | $ | 3,035.0 | $ | 266.9 | $ | 3,301.9 | ||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 32.1 | % | 23.3 | % | 31.1 | % | 30.6 | % | 22.0 | % | 29.7 | % | ||||||||||||||||||||||||||
(a) Certain corporate expenses, including selling, general and administrative expenses, and National Accounts revenue are allocated to the two business types.
10
The amounts shown for Recycling & Waste represent the sum of our Group 1 and Group 2 reportable segments, and Environmental Solutions represents our Group 3 reportable segment.
Adjusted Earnings Per Share
The following table calculates adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Earnings | Net | Earnings | |||||||||||||||||||||||||||||||||||||||||||||||
| Pre-tax | Tax | Income - | per | Pre-tax | Tax | Income - | per | |||||||||||||||||||||||||||||||||||||||||||
| Income | Impact(1) | Republic | Share | Income | Impact(1) | Republic | Share | |||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 646.5 | $ | 80.8 | $ | 565.7 | $ | 1.80 | $ | 606.3 | $ | 126.1 | $ | 480.2 | $ | 1.52 | ||||||||||||||||||||||||||||||||||
| (Gain) loss on extinguishment of debt and other related costs | 2.4 | 0.6 | 1.8 | 0.01 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 8.2 | 2.3 | 5.9 | 0.02 | 6.3 | 1.7 | 4.6 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on business divestitures and impairments, net (2) | 0.5 | 0.1 | 0.4 | — | (1.5) | (0.4) | (1.1) | — | ||||||||||||||||||||||||||||||||||||||||||
| Settlements and withdrawals on pension plans | (7.4) | (1.9) | (5.5) | (0.02) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| US Ecology acquisition integration and deal costs | — | — | — | — | 6.2 | 1.6 | 4.6 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | 3.7 | 1.1 | 2.6 | 0.01 | 11.0 | 2.9 | 8.1 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||
| As adjusted | $ | 650.2 | $ | 81.9 | $ | 568.3 | $ | 1.81 | $ | 617.3 | $ | 129.0 | $ | 488.3 | $ | 1.54 | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Earnings | Net | Earnings | |||||||||||||||||||||||||||||||||||||||||||||||
| Pre-tax | Tax | Income - | per | Pre-tax | Tax | Income - | per | |||||||||||||||||||||||||||||||||||||||||||
| Income | Impact(1) | Republic | Share | Income | Impact(1) | Republic | Share | |||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 1,899.3 | $ | 368.3 | $ | 1,531.0 | $ | 4.86 | $ | 1,708.6 | $ | 417.2 | $ | 1,291.4 | $ | 4.07 | ||||||||||||||||||||||||||||||||||
(Gain) loss on extinguishment of debt and other related costs (3) | (5.4) | (1.4) | (4.0) | (0.01) | 0.2 | — | 0.2 | — | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 19.7 | 5.2 | 14.5 | 0.04 | 27.3 | 7.2 | 20.1 | 0.06 | ||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on business divestitures and impairments, net(2) | (0.9) | (0.3) | (0.6) | — | (1.5) | (0.4) | (1.1) | — | ||||||||||||||||||||||||||||||||||||||||||
| Settlements and withdrawals on pension plans | (7.4) | (1.9) | (5.5) | (0.02) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| US Ecology acquisition integration and deal costs | — | — | — | — | 24.3 | 6.2 | 18.1 | 0.06 | ||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | 6.0 | 1.6 | 4.4 | 0.01 | 50.3 | 13.0 | 37.3 | 0.12 | ||||||||||||||||||||||||||||||||||||||||||
| As adjusted | $ | 1,905.3 | $ | 369.9 | $ | 1,535.4 | $ | 4.87 | $ | 1,758.9 | $ | 430.2 | $ | 1,328.7 | $ | 4.19 | ||||||||||||||||||||||||||||||||||
(1) The income tax effect related to our adjustments includes both the current and deferred income tax impact and is individually calculated based on the statutory rates applicable to each adjustment.
(2) The aggregate impact to adjusted diluted earnings per share totals to less than $0.01 for the three and nine months ended September 30, 2024 and 2023.
(3) The aggregate impact to adjusted diluted earnings per share totals to less than $0.01 for the nine months ended September 30, 2023.
We believe that presenting EBITDA and EBITDA margin is useful to investors because they provide important information concerning our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDA margin demonstrate our ability to execute our financial strategy, which includes reinvesting in existing capital assets to ensure a high level of customer service, investing in capital assets to facilitate growth in our customer base and services provided, maintaining our investment grade credit ratings and minimizing debt, paying cash dividends, repurchasing our common stock, and maintaining and improving our market position through business optimization. Although depreciation, depletion, amortization and accretion are considered operating costs in accordance with U.S. GAAP, they represent the allocation of non-cash costs generally associated with long-lived assets acquired or constructed in prior years.
We believe that presenting adjusted EBITDA and adjusted EBITDA margin, adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share provide an understanding of operational activities before the financial impact of certain items. We use these measures, and believe investors will find them helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in
11
prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods.
(Gain) loss on extinguishment of debt and other related costs. During the three and nine months ended September 30, 2024, we recognized a loss of $2.4 million due to the amendment and restatement of the credit facility. Additionally, we recorded a net gain of $7.8 million during the nine months ended September 30, 2024, attributable to the early settlement of certain cash flow hedges related to the term loan facility. The gain was recognized as a reduction of interest expense. During the nine months ended September 30, 2023, we incurred a loss on the early extinguishment of debt related to the early repayment of a portion of our term loan facility. We incurred non-cash charges related to the proportional share of unamortized deferred issuance costs of $0.2 million.
Restructuring charges. During the three and nine months ended September 30, 2024, we incurred restructuring charges of $8.2 million and $19.7 million, respectively, and during the three and nine months ended September 30, 2023, we incurred restructuring charges of $6.3 million and $27.3 million, respectively. The 2024 charges primarily related to the redesign of our asset management, and customer and order management software systems. Of the 2023 charges, $9.5 million related to the early termination of certain leases and $17.8 million related to the redesign of our asset management, and customer and order management software systems. During the nine months ended September 30, 2024 and 2023, we paid $18.1 million and $32.4 million, respectively, related to these restructuring efforts.
(Gain) loss on business divestitures and impairments, net. During the three and nine months ended September 30, 2024, we recorded a net loss on business divestitures and impairments of $0.5 million and a net gain on business divestitures and impairments of $0.9 million, respectively. During the three and nine months ended September 30, 2023, we recorded a net gain on business divestitures and impairments of $1.5 million.
Settlements and withdrawals on pension plans. During the three and nine months ended September 30, 2024, we recognized a settlement of our defined benefit pension plan. The settlement included a combination of lump-sum payments to participants who elected to receive them and the transfer of benefit obligations to a third-party insurance company under a group annuity contract. As a result of the settlements, we recognized a non-cash gain of $7.4 million during the three and nine months ended September 30, 2024, related to the accelerated recognition of the proportional share of unamortized net actuarial gains in accumulated other comprehensive loss. We expect to settle all remaining obligations by the end of 2024.
US Ecology, Inc. acquisition integration and deal costs. During the three and nine months ended September 30, 2023, we incurred acquisition integration and deal costs of $6.2 million and $24.3 million, respectively, in connection with the acquisition of US Ecology, which included certain costs to integrate the business. The acquisition closed on May 2, 2022. Our integration of the business was substantially complete as of December 31, 2023.
Adjusted Free Cash Flow
The following table calculates our adjusted free cash flow, which is not a measure determined in accordance with U.S. GAAP, for the nine months ended September 30, 2024 and 2023:
| Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Cash provided by operating activities | $ | 2,914.0 | $ | 2,719.3 | ||||||||||
| Property and equipment received | (1,199.3) | (960.1) | ||||||||||||
| Proceeds from sales of property and equipment | 8.6 | 25.0 | ||||||||||||
| Cash paid related to adjustments to withdrawal liabilities for a multiemployer pension fund, net of tax | 0.3 | 0.3 | ||||||||||||
| Restructuring payments, net of tax | 13.4 | 24.0 | ||||||||||||
| Cash tax benefit for debt extinguishment and other related costs | (0.7) | 0.1 | ||||||||||||
| Divestiture related tax payments | 0.2 | 0.3 | ||||||||||||
| US Ecology acquisition integration and deal costs, net of tax | — | 18.5 | ||||||||||||
| Adjusted free cash flow | $ | 1,736.5 | $ | 1,827.4 | ||||||||||
We believe that presenting adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after certain expenditures or recoveries. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments.
12
Purchases of property and equipment as reflected on our consolidated statements of cash flows represent amounts paid during the period for such expenditures. A reconciliation of property and equipment expenditures reflected on our consolidated statements of cash flows to property and equipment received during the period follows for the nine months ended September 30, 2024 and 2023:
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
Purchases of property and equipment per the unaudited consolidated statements of cash flows | $ | 1,357.4 | $ | 1,083.2 | ||||
Adjustments for property and equipment received in a different period | (158.1) | (123.1) | ||||||
| Property and equipment received during the period | $ | 1,199.3 | $ | 960.1 | ||||
The adjustments noted above do not affect our net change in cash, cash equivalents, restricted cash and restricted cash equivalents as reflected in our consolidated statements of cash flows.
ACCOUNTS RECEIVABLE
As of September 30, 2024 and December 31, 2023, accounts receivable were $1,847.5 million and $1,768.4 million, net of allowance for doubtful accounts of $75.2 million and $83.2 million, respectively, resulting in days sales outstanding of 41.2, or 30.4 days net of deferred revenue, compared to 42.0, or 30.9 days net of deferred revenue, respectively.
CASH DIVIDENDS
In July 2024, we paid a cash dividend of $168.0 million to shareholders of record as of July 2, 2024. As of September 30, 2024, we recorded a quarterly dividend payable of $181.7 million to shareholders of record at the close of business on October 2, 2024, which was paid on October 15, 2024.
SHARE REPURCHASE PROGRAM
During the three months ended September 30, 2024, we repurchased 0.8 million shares of our common stock for $161.9 million at a weighted average cost per share of $194.42. As of September 30, 2024, the remaining authorized purchase capacity under our October 2023 repurchase program was $2.7 billion.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as “guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,” “project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar expressions are intended to identify forward-looking statements. These statements include information about our plans, strategies and prospects. Forward-looking statements are not guarantees of performance. These statements are based upon the current beliefs and expectations of our management and are subject to risk and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that the expectations will prove to be correct. Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are the impacts of the overall global economy and increasing interest rates, our ability to effectively integrate and manage companies we acquire, and to realize the anticipated benefits of any such acquisitions, the amount of the financial contribution of our sustainability initiatives, acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in the United States, as well as our dependence on large, long-term collection, transfer and disposal contracts. More information on factors that could cause actual results or events to differ materially from those anticipated is included from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, particularly under Part I, Item 1A – Risk Factors. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. We undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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