Republic sees continued third quarter revenue growth

Republic Services Inc., Phoenix, reported revenue growth in the third quarter of the year. The company reported net income of $ 350.3 million, or $ 1.10 per diluted share, for its third quarter, which ended September 30. This compares to $ 260 million, or 81 cents per diluted share, for the third quarter of 2020. Excluding certain benefits and expenses, on an adjusted basis, net income for the quarter was $ 353.7 million, or $ 1.11 per diluted share, compared to $ 319.3 million, or $ 1 per diluted share, for the same period in 2020.

Republic Services reports that the average price of the company’s recycled raw materials per tonne sold in the third quarter was $ 230, representing a sequential increase of $ 60 per tonne in the second quarter and an increase of $ 131 per tonne from the same quarter in 2020.

During Republic Services’ third quarter earnings call on October 28, the company reported that its third quarter volumes of small containers and municipal waste sold were both above 2019 levels.

On the call, the company also said it saw revenue and earnings growth before interest, taxes, depreciation and amortization of around 14% in the quarter compared to the same period in 2020.

According to the company’s latest earnings report, cash generated from operating activities year-to-date was $ 2.1 billion, an increase of 12% over the same period. in 2020.

“We continue to generate disproportionate revenue growth both organically and through acquisitions,” said Jon Vander Ark, President and CEO of Republic Services, in the earnings report. “This year already represents the highest level of investment in acquisitions for over a decade. Our acquisition pipeline remains strong, with many opportunities in the recycling and solid waste businesses and in our environmental solutions business. “

According to the company’s earnings report, cumulative investments in acquisitions amount to $ 922 million, or $ 876 million net of divestitures.

“This is the highest level of acquisition investment in over a decade,” Vander Ark said on the earnings call. “We now plan to invest over $ 1 billion in acquisitions throughout the year. In addition to investing in acquisitions, we returned $ 622 million to our shareholders in the form of dividends and share buybacks. “

During the quarter, Republic Services finalized its acquisition from ACV Enviro. The company said the acquisition expands its capabilities and offerings in the environmental services industry.

Republic Services also opened a solar project at one of its closed landfills in Belleville, Ill., In the third quarter. The project consists of 30,000 solar panels and will produce enough energy to power 2,200 homes per year. In addition, the company opened the first solar-powered composting plant in California to provide organic processing capabilities to residents of the San Diego area.

“We remain committed to increasing the recycling and circularity of key materials as part of our ambitious 2030 sustainability goal,” said Vander Ark.

Vander Ark said the company also recently unveiled its Republic Services Technical Institute as a school for diesel technicians, which will provide the company with a pool of talented technicians.

Looking ahead, Vander Ark said he expects “the positive dynamics of our business to continue to deliver profitable growth in 2022”.

He said: “We expect to produce above-average growth, leading to high single-digit adjusted free cash flow growth relative to our year 2021 performance.”

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