As Republic Services enters the new year, the Phoenix-based company announced that they were performing better than expected despite a 2020 full of economic uncertainty.
Republic posted prime prices at 4.8% in 2020, the highest level in the last decade. Free adjusted cash flow of $ 1.24 billion was also higher than the original full-year guideline.
Chief Executive Don Slager said, “profitable growth remains our key strategic requirement. And we continue to believe that investing in buying with attractive yield is the best use of free cash flow to increase shareholder value in the long run. ”
With a strong focus on construction, the company plans to further strengthen its market position by expanding into new markets with “attractive growth profiles,” Slager said.
More than $ 600 million in purchases have been confirmed in 2020, and Slager said he expects the year 2021 to be “just as strong.” Republic continues to move forward with buying Tennessee-based Santek Waste Services, first announced in March 2020 and is now expected to close by the end of Q1 2021.
President Jon Vander Ark provided details on Q4. All lines of business continued to improve from Q3, with volume down 1.8% for the quarter, compared to 3.4% in Q3.
The number of small vessels also fell 3.5%, up 130 basis points from Q3. Reduce large box size by 3.4%
“Performance was relatively consistent between the permanent and temporary sectors of this industry,” said Vander Ark. “Total landfill fell by 2.4% on the previous year. This included a 1.7% increase in MSW and a 1% increase in C and D, which is offset by a 9.8% decrease in special waste. Our pipeline for exceptional waste volume remains robust. ”
He continued, “looking ahead, we expect the gradual economic development we saw in the second half of last year to continue, leading to 1.5% to 2% growth in 2021 . ”
Q4 Selection:
- Net income: $ 235.5 million, or $ 0.74 per diluted allowance ($ 289.3 million, or $ 0.90 per diluted allowance in 2019)
- Improved net income: $ 320.4 million, or $ 1.00 per diluted allowance ($ 282.7 million, or $ 0.88 per diluted allowance in 2019)
- Average price of recycled goods: $ 110, up $ 44 per ton from 2019, or 67%
- Earnings per share: $ 0.74 per installment
- Enhanced EPS: $ 1.00 per installment, up 14% YOY.
Selection from 2020:
- Net income: $ 967.2 million, or $ 3.02 per diluted share ($ 1.07 billion, or $ 3.33 per diluted share in 2019)
- Improved net income: $ 1.137 billion, or $ 3.56 per diluted share ($ 1.06 billion, or $ 3.30 per diluted share in 2019)
- Main price: 5.6% in the open market. 3.4% in a limited proportion of the industry. Increased revenue 4.8%
- Earnings per share: $ 3.02 per installment
- Enhanced EPS: $ 3.56 per share, up 8% from 2019. It exceeded the Company’s full-year direction.
- Enhanced EBITDA: $ 2.99 billion
- Improved EBITDA margin: 29.4%, up 130 basis points YOY.
2021 Preview
- Improved narrowed earnings per category: $ 3.65 to $ 3.73
- Improved free cash flow: $ 1.3 billion $ 1.375 billion
- Income: An increase in average yield of about 2.5% and volume growth to be in the range of 1.5% to 2.0%.
- Improved EBITDA margin: About 29.5%.
- Construction & Investment: $ 600 million in construction and $ 125 million in solar energy investments eligible for tax credits.