PHOENIX, April 23, 2015 /PRNewswire/ -- Republic
Services, Inc. (NYSE: RSG) today reported net income of
$172.4 million, or $0.49 per diluted share, for the three months
ended March 31, 2015, versus
$132.5 million, or $0.37 per diluted share, for the comparable 2014
period. The prior year's adjusted diluted earnings per share of
$0.43 excluded a remediation charge
of $0.06 per diluted share.
"We started the year strong and continued to execute our
strategic initiatives which helped drive earnings and free cash
flow growth," said Donald W. Slager,
president and chief executive officer. "Our 2015 plan assumed
business conditions would continue to improve, which we confirmed
with our first quarter performance. We remain well-positioned to
achieve our full year goals."
Earnings before interest, taxes, depreciation, depletion,
amortization and accretion (EBITDA) during the three months ended
March 31, 2015, was $625.9 million, or 28.9 percent of revenue,
compared to adjusted EBITDA of $574.8
million, or 27.7 percent of revenue, for the comparable 2014
period. EBITDA and adjusted EBITDA are described in the
Reconciliation of Certain Non-GAAP Measures section of this
document.
Revenue for the three months ended March
31, 2015, increased to $2,169.4
million from $2,077.2 million
for the comparable 2014 period. This growth in revenue of 4.4
percent was made up of increases in average yield of 2.1 percent,
volume of 1.9 percent, and acquisitions, net of divestitures of 2.1
percent, partially offset by decreases in fuel recovery fees of 0.7
percent and recycled commodities of 1.0 percent.
Company Declares Quarterly Dividend
Republic announced today that its Board of Directors declared a
regular quarterly dividend of $0.28
per share for shareholders of record on July
1, 2015. The dividend will be paid on July 15, 2015.
About Republic Services
Republic Services, Inc. (NYSE: RSG) is an industry leader in
U.S. recycling and non-hazardous solid waste. Through its
subsidiaries, Republic's collection companies, recycling centers,
transfer stations and landfills focus on providing effective
solutions to make proper waste disposal effortless for their
commercial, industrial, municipal, residential and oilfield
customers. We'll handle it from
here.™, the brand's tagline, lets customers
know they can count on Republic to provide a superior experience
while fostering a sustainable Blue
Planet™ for future generations to enjoy a
cleaner, safer and healthier world.
For more information, visit the Republic Services website at
RepublicServices.com. "Like" Republic on Facebook at
www.facebook.com/RepublicServices and follow on Twitter
@RepublicService.
SUPPLEMENTAL
UNAUDITED FINANCIAL INFORMATION
|
AND OPERATING
DATA
|
|
|
|
|
REPUBLIC SERVICES,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
millions, except per share amounts)
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
134.3
|
|
|
$
|
75.2
|
|
Accounts receivable,
less allowance for doubtful accounts and other of $48.2 and $38.9,
respectively
|
930.4
|
|
|
930.4
|
|
Prepaid expenses and
other current assets
|
156.6
|
|
|
263.4
|
|
Deferred tax
assets
|
122.4
|
|
|
122.0
|
|
Total current
assets
|
1,343.7
|
|
|
1,391.0
|
|
Restricted cash and
marketable securities
|
112.7
|
|
|
115.6
|
|
Property and
equipment, net
|
7,447.0
|
|
|
7,165.3
|
|
Goodwill
|
11,095.5
|
|
|
10,830.9
|
|
Other intangible
assets, net
|
289.4
|
|
|
298.9
|
|
Other
assets
|
305.4
|
|
|
292.3
|
|
Total
assets
|
$
|
20,593.7
|
|
|
$
|
20,094.0
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
491.6
|
|
|
$
|
527.3
|
|
Notes payable and
current maturities of long-term debt
|
10.1
|
|
|
10.4
|
|
Deferred
revenue
|
314.6
|
|
|
306.3
|
|
Accrued landfill and
environmental costs, current portion
|
165.3
|
|
|
164.3
|
|
Accrued
interest
|
69.9
|
|
|
67.0
|
|
Other accrued
liabilities
|
704.9
|
|
|
750.7
|
|
Total current
liabilities
|
1,756.4
|
|
|
1,826.0
|
|
Long-term debt, net
of current maturities
|
7,554.5
|
|
|
7,050.8
|
|
Accrued landfill and
environmental costs, net of current portion
|
1,696.1
|
|
|
1,677.5
|
|
Deferred income taxes
and other long-term tax liabilities
|
1,140.1
|
|
|
1,149.0
|
|
Insurance reserves,
net of current portion
|
292.4
|
|
|
298.0
|
|
Other long-term
liabilities
|
389.5
|
|
|
344.9
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock, par
value $0.01 per share; 50 shares authorized; none issued
|
—
|
|
|
—
|
|
Common stock, par
value $0.01 per share; 750 shares authorized; 415.6 and
414.4 issued including shares held
in treasury, respectively
|
4.2
|
|
|
4.1
|
|
Additional paid-in
capital
|
6,914.4
|
|
|
6,876.9
|
|
Retained
earnings
|
2,868.3
|
|
|
2,795.0
|
|
Treasury stock, at
cost (63.8 and 61.7 shares, respectively)
|
(1,997.0)
|
|
|
(1,901.8)
|
|
Accumulated other
comprehensive loss, net of tax
|
(27.8)
|
|
|
(28.9)
|
|
Total Republic
Services, Inc. stockholders' equity
|
7,762.1
|
|
|
7,745.3
|
|
Noncontrolling
interests
|
2.6
|
|
|
2.5
|
|
Total stockholders'
equity
|
7,764.7
|
|
|
7,747.8
|
|
Total liabilities and
stockholders' equity
|
$
|
20,593.7
|
|
|
$
|
20,094.0
|
|
REPUBLIC SERVICES,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
(in
millions, except per share data)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
Revenue
|
$
|
2,169.4
|
|
|
$
|
2,077.2
|
|
Expenses:
|
|
|
|
Cost of
operations
|
1,304.3
|
|
|
1,324.7
|
|
Depreciation,
amortization and depletion
|
233.4
|
|
|
213.1
|
|
Accretion
|
19.7
|
|
|
19.5
|
|
Selling, general and
administrative
|
239.2
|
|
|
213.8
|
|
Operating
income
|
372.8
|
|
|
306.1
|
|
Interest
expense
|
(88.6)
|
|
|
(87.0)
|
|
Interest
income
|
0.3
|
|
|
0.1
|
|
Other income,
net
|
—
|
|
|
1.0
|
|
Income before income
taxes
|
284.5
|
|
|
220.2
|
|
Provision for income
taxes
|
112.0
|
|
|
87.6
|
|
Net income
|
172.5
|
|
|
132.6
|
|
Net income
attributable to noncontrolling interests
|
(0.1)
|
|
|
(0.1)
|
|
Net income
attributable to Republic Services, Inc.
|
$
|
172.4
|
|
|
$
|
132.5
|
|
Basic earnings
per share attributable to Republic Services, Inc.
stockholders:
|
|
|
|
Basic earnings per
share
|
$
|
0.49
|
|
|
$
|
0.37
|
|
Weighted average
common shares outstanding
|
353.3
|
|
|
359.8
|
|
Diluted earnings per
share attributable to Republic Services, Inc.
stockholders:
|
|
|
|
Diluted earnings per
share
|
$
|
0.49
|
|
|
$
|
0.37
|
|
Weighted average
common and common equivalent shares outstanding
|
354.8
|
|
|
361.0
|
|
Cash dividends per
common share
|
$
|
0.28
|
|
|
$
|
0.26
|
|
REPUBLIC SERVICES,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
millions)
|
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
Cash provided by
operating activities:
|
|
|
|
Net income
|
$
|
172.5
|
|
|
$
|
132.6
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, depletion and accretion
|
253.1
|
|
|
232.6
|
|
Non-cash interest
expense
|
11.0
|
|
|
11.2
|
|
Stock-based
compensation
|
7.2
|
|
|
6.7
|
|
Deferred tax
benefit
|
(11.4)
|
|
|
(19.2)
|
|
Provision for
doubtful accounts, net of adjustments
|
4.9
|
|
|
3.4
|
|
Gain on disposition
of assets, net and asset impairments
|
(1.4)
|
|
|
(1.6)
|
|
Environmental
adjustments
|
(1.3)
|
|
|
36.2
|
|
Excess income tax
benefit from stock option exercises and other non-cash
items
|
(4.1)
|
|
|
0.4
|
|
Change in assets and
liabilities, net of effects from business acquisitions and
divestitures:
|
|
|
|
Accounts
receivable
|
31.3
|
|
|
14.0
|
|
Prepaid expenses and
other assets
|
12.3
|
|
|
(9.6)
|
|
Accounts
payable
|
(34.0)
|
|
|
(22.1)
|
|
Capping, closure and
post-closure expenditures
|
(9.3)
|
|
|
(8.7)
|
|
Remediation
expenditures
|
(15.3)
|
|
|
(27.1)
|
|
Other
liabilities
|
80.6
|
|
|
47.6
|
|
Cash provided by
operating activities
|
496.1
|
|
|
396.4
|
|
Cash used in
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(269.6)
|
|
|
(213.7)
|
|
Proceeds from sales
of property and equipment
|
3.2
|
|
|
2.5
|
|
Cash used in business
acquisitions, net of cash acquired
|
(509.4)
|
|
|
(6.2)
|
|
Change in restricted
cash and marketable securities
|
2.9
|
|
|
8.0
|
|
Other
|
(0.5)
|
|
|
(0.7)
|
|
Cash used in
investing activities
|
(773.4)
|
|
|
(210.1)
|
|
Cash used in
financing activities:
|
|
|
|
Proceeds from notes
payable and long-term debt
|
658.0
|
|
|
—
|
|
Proceeds from
issuance of senior notes, net of discount
|
497.9
|
|
|
—
|
|
Payments of notes
payable and long-term debt
|
(660.8)
|
|
|
(13.8)
|
|
Fees paid to issue
senior notes and retire certain hedging relationships
|
(3.3)
|
|
|
—
|
|
Issuances of common
stock
|
26.2
|
|
|
15.9
|
|
Excess income tax
benefit from stock option exercises
|
3.6
|
|
|
0.2
|
|
Purchases of common
stock for treasury
|
(86.1)
|
|
|
(132.2)
|
|
Cash dividends
paid
|
(98.7)
|
|
|
(93.7)
|
|
Other
|
(0.4)
|
|
|
(0.2)
|
|
Cash provided by
(used in) financing activities
|
336.4
|
|
|
(223.8)
|
|
Increase (decrease)
in cash and cash equivalents
|
59.1
|
|
|
(37.5)
|
|
Cash and cash
equivalents at beginning of year
|
75.2
|
|
|
213.3
|
|
Cash and cash
equivalents at end of period
|
$
|
134.3
|
|
|
$
|
175.8
|
|
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, 2014. 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 months ended March 31, 2015 and
2014:
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
Collection:
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
$
|
551.7
|
|
|
25.4
|
|
%
|
|
$
|
537.9
|
|
|
25.9
|
|
%
|
Commercial
|
|
694.8
|
|
|
32.0
|
|
|
|
664.2
|
|
|
32.0
|
|
|
Industrial
|
|
435.0
|
|
|
20.1
|
|
|
|
402.4
|
|
|
19.4
|
|
|
Other
|
|
8.7
|
|
|
0.4
|
|
|
|
9.0
|
|
|
0.4
|
|
|
Total
collection
|
|
1,690.2
|
|
|
77.9
|
|
|
|
1,613.5
|
|
|
77.7
|
|
|
Transfer
|
|
250.8
|
|
|
|
|
|
237.6
|
|
|
|
|
Less:
intercompany
|
|
(157.5)
|
|
|
|
|
|
(148.6)
|
|
|
|
|
Transfer, net
|
|
93.3
|
|
|
4.3
|
|
|
|
89.0
|
|
|
4.3
|
|
|
Landfill
|
|
456.5
|
|
|
|
|
|
437.2
|
|
|
|
|
Less:
intercompany
|
|
(217.6)
|
|
|
|
|
|
(209.5)
|
|
|
|
|
Landfill, net
|
|
238.9
|
|
|
11.0
|
|
|
|
227.7
|
|
|
11.0
|
|
|
E&P waste
services
|
|
23.8
|
|
|
1.1
|
|
|
|
9.1
|
|
|
0.4
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
Sale of recycled
commodities
|
|
85.7
|
|
|
4.0
|
|
|
|
99.0
|
|
|
4.7
|
|
|
Other
non-core
|
|
37.5
|
|
|
1.7
|
|
|
|
38.9
|
|
|
1.9
|
|
|
Total
other
|
|
123.2
|
|
|
5.7
|
|
|
|
137.9
|
|
|
6.6
|
|
|
Total
revenue
|
|
$
|
2,169.4
|
|
|
100.0
|
|
%
|
|
$
|
2,077.2
|
|
|
100.0
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
The following table reflects changes in our revenue for the
three months ended March 31, 2015 and 2014:
|
|
Three Months Ended
March 31,
|
|
|
2015
|
|
2014
|
Average yield (as a
percent of total revenue)
|
|
2.1
|
%
|
|
1.2
|
%
|
Fuel recovery
fees
|
|
(0.7)
|
|
|
0.1
|
|
Total
price
|
|
1.4
|
|
|
1.3
|
|
Volume
|
|
1.9
|
|
|
1.5
|
|
Recycled
commodities
|
|
(1.0)
|
|
|
0.4
|
|
Total internal
growth
|
|
2.3
|
|
|
3.2
|
|
Acquisitions /
divestitures, net
|
|
2.1
|
|
|
0.6
|
|
Total
|
|
4.4
|
%
|
|
3.8
|
%
|
|
|
|
|
|
Core price
|
|
3.7
|
%
|
|
3.2
|
%
|
|
|
|
|
|
Average yield as a percentage of related-business revenue was
2.4% and 1.3% for the three months ended March 31, 2015 and
2014, respectively. Core price as a percentage of
related-business revenue was 4.1% and 3.5% for the three months
ended March 31, 2015 and 2014, respectively. We measure
changes in average yield and core price as a percentage of
related-business revenue, defined as total revenue excluding
recycled commodities and fuel recovery fees, to determine the
effectiveness of our pricing strategies.
COST OF OPERATIONS
The following table summarizes the major components of our cost
of operations for the three months ended March 31, 2015 and
2014:
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
Labor and related
benefits
|
|
$
|
442.9
|
|
|
20.4
|
|
%
|
|
$
|
416.0
|
|
|
20.0
|
|
%
|
Transfer and disposal
costs
|
|
160.4
|
|
|
7.4
|
|
|
|
151.3
|
|
|
7.3
|
|
|
Maintenance and
repairs
|
|
198.5
|
|
|
9.1
|
|
|
|
182.9
|
|
|
8.8
|
|
|
Transportation and
subcontract costs
|
|
117.3
|
|
|
5.4
|
|
|
|
114.4
|
|
|
5.5
|
|
|
Fuel
|
|
93.0
|
|
|
4.3
|
|
|
|
129.3
|
|
|
6.2
|
|
|
Franchise fees and
taxes
|
|
102.7
|
|
|
4.7
|
|
|
|
96.9
|
|
|
4.7
|
|
|
Landfill operating
costs
|
|
32.9
|
|
|
1.5
|
|
|
|
35.1
|
|
|
1.7
|
|
|
Risk
management
|
|
36.7
|
|
|
1.7
|
|
|
|
42.9
|
|
|
2.1
|
|
|
Cost of goods
sold
|
|
39.1
|
|
|
1.8
|
|
|
|
42.6
|
|
|
2.0
|
|
|
Other
|
|
80.8
|
|
|
3.8
|
|
|
|
77.2
|
|
|
3.7
|
|
|
Subtotal
|
|
1,304.3
|
|
|
60.1
|
|
|
|
1,288.6
|
|
|
62.0
|
|
|
Bridgeton
remediation
|
|
—
|
|
|
—
|
|
|
|
36.1
|
|
|
1.8
|
|
|
Total cost of
operations
|
|
$
|
1,304.3
|
|
|
60.1
|
|
%
|
|
$
|
1,324.7
|
|
|
63.8
|
|
%
|
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.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table summarizes our selling, general and
administrative expenses for the three months ended March 31,
2015 and 2014:
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
Salaries
|
|
$
|
154.2
|
|
|
7.1
|
|
%
|
|
$
|
141.8
|
|
|
6.8
|
|
%
|
Provision for
doubtful accounts
|
|
4.9
|
|
|
0.2
|
|
|
|
3.4
|
|
|
0.2
|
|
|
Other
|
|
80.1
|
|
|
3.7
|
|
|
|
68.6
|
|
|
3.3
|
|
|
Total selling,
general and administrative expenses
|
|
$
|
239.2
|
|
|
11.0
|
|
%
|
|
$
|
213.8
|
|
|
10.3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
Earnings Before Interest, Taxes, Depreciation, Depletion,
Amortization and Accretion
The following table calculates earnings before interest, taxes,
depreciation, depletion, amortization and accretion (EBITDA), which
is not a measure determined in accordance with U.S. generally
accepted accounting principles (U.S. GAAP), for the three months
ended March 31, 2015 and 2014:
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
Net income
attributable to Republic Services, Inc.
|
$
|
172.4
|
|
|
$
|
132.5
|
|
Net income
attributable to noncontrolling interests
|
0.1
|
|
|
0.1
|
|
Provision for income
taxes
|
112.0
|
|
|
87.6
|
|
Other income,
net
|
—
|
|
|
(1.0)
|
|
Interest
income
|
(0.3)
|
|
|
(0.1)
|
|
Interest
expense
|
88.6
|
|
|
87.0
|
|
Depreciation,
amortization and depletion
|
233.4
|
|
|
213.1
|
|
Accretion
|
19.7
|
|
|
19.5
|
|
EBITDA
|
$
|
625.9
|
|
|
$
|
538.7
|
|
We believe that presenting EBITDA is useful to investors because
it provides important information concerning our operating
performance exclusive of certain non-cash and other costs. EBITDA
demonstrates 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 rating and minimizing debt,
paying cash dividends, repurchasing our common stock, and
maintaining and improving our market position through business
optimization. This measure has limitations. 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. Our definition of EBITDA
may not be comparable to similarly titled measures presented by
other companies.
Adjusted Earnings
Reported diluted earnings per share were $0.49 for the three months ended March 31,
2015, as compared to $0.37 for the
same period in 2014. During the three months ended March 31,
2014, we recorded a remediation charge that impacted our EBITDA,
pre-tax income, net income attributable to Republic Services, Inc.
(Net Income – Republic) and diluted earnings per share. These
items primarily consist of the following:
|
|
Three Months Ended
March 31, 2014
|
|
|
|
|
|
|
Net
|
|
Diluted
|
|
|
|
|
Pre-tax
|
|
Income -
|
|
Earnings
|
|
|
EBITDA
|
|
Income
|
|
Republic
|
|
per Share
|
As
reported
|
|
$
|
538.7
|
|
|
$
|
220.2
|
|
|
$
|
132.5
|
|
|
$
|
0.37
|
|
Bridgeton
remediation
|
|
36.1
|
|
|
36.1
|
|
|
21.8
|
|
|
0.06
|
|
As
adjusted
|
|
$
|
574.8
|
|
|
$
|
256.3
|
|
|
$
|
154.3
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
We believe that presenting adjusted EBITDA, adjusted pre-tax
income, adjusted net income attributable to Republic Services,
Inc., and adjusted diluted earnings per share, which are not
measures determined in accordance with U.S. GAAP, provides 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 and costs in prior periods, and similar types of
adjustments can reasonably be expected to be recorded in future
periods. In the case of the Bridgeton remediation charges, we are
adjusting such amounts due to their significant effect on our
operating results. However, in the ordinary course of our
business, we often incur remediation adjustments that we do not
adjust from our operating results. Our definitions of adjusted
EBITDA, adjusted pre-tax income, adjusted net income attributable
to Republic Services Inc., and adjusted diluted earnings per share
may not be comparable to similarly titled measures presented by
other companies.
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 three months ended March 31, 2015 and 2014:
|
Three Months Ended
March 31,
|
|
2015
|
|
2014
|
Cash provided by
operating activities
|
$
|
496.1
|
|
|
$
|
396.4
|
|
Property and
equipment received
|
(261.0)
|
|
|
(215.8)
|
|
Proceeds from sales
of property and equipment
|
3.2
|
|
|
2.5
|
|
Cash paid related to
negotiation and withdrawal costs - Central States Pension and Other
Funds, net of tax
|
2.5
|
|
|
2.5
|
|
Adjusted free cash
flow
|
$
|
240.8
|
|
|
$
|
185.6
|
|
We believe that presenting adjusted free cash flow provides
useful information regarding our recurring cash provided by
operating activities after certain payments. 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. Our definition of adjusted free cash flow may not be
comparable to similarly titled measures presented by other
companies.
Purchases of property and equipment as reflected on our
consolidated statements of cash flows and the adjusted free cash
flow presented above represent amounts paid during the period for
such expenditures. A reconciliation of property and equipment
reflected on our consolidated statements of cash flows to property
and equipment received during the period follows for the three
months ended March 31, 2015 and 2014:
|
|
Three Months Ended
March 31,
|
|
|
2015
|
|
2014
|
Purchases of property
and equipment per the unaudited consolidated statements of cash
flows
|
|
$
|
269.6
|
|
|
$
|
213.7
|
|
Adjustments for
property and equipment received during the prior period but paid
for in the following period, net
|
|
(8.6)
|
|
|
2.1
|
|
Property and
equipment received during the period
|
|
$
|
261.0
|
|
|
$
|
215.8
|
|
|
|
|
|
|
The adjustments noted above do not affect our net change in cash
and cash equivalents as reflected in our consolidated statements of
cash flows.
ACCOUNTS RECEIVABLE
As of March 31, 2015 and December
31, 2014, accounts receivable were each $930.4 million, net of allowance for doubtful
accounts and other of $48.2 million
and $38.9 million, resulting in days
sales outstanding, net of acquisitions, of 38 (or 25 net of
deferred revenue), respectively.
CASH DIVIDENDS
In January 2015, we paid a cash
dividend of $98.7 million to
shareholders of record as of January 2,
2015. As of March 31, 2015, we recorded a quarterly
dividend payable of $98.5 million to
shareholders of record at the close of business on April 1 2015, which was paid on April 15, 2015.
STOCK REPURCHASE PROGRAM
During the three months ended March 31, 2015, we
repurchased 2.1 million shares of our stock for $86.1 million at a weighted average cost per
share of $41.01. As of
March 31, 2015, 0.2 million repurchased shares were pending
settlement and $9.1 million were
unpaid and included within other accrued liabilities.
As of March 31, 2015, we had 351.8 million shares of common
stock issued and outstanding.
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
statements 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:
- general economic and market conditions, including inflation and
changes in commodity pricing, fuel, interest rates, labor, risk,
health insurance and other variable costs that generally are not
within our control, and our exposure to credit and counterparty
risk;
- whether our estimates and assumptions concerning our selected
balance sheet accounts, income tax accounts, final capping,
closure, post-closure and remediation costs, available airspace,
and projected costs and expenses related to our landfills and
property and equipment (including our estimates of the fair values
of the assets and liabilities acquired in our acquisition of Allied
Waste Industries, Inc.), and labor, fuel rates and economic and
inflationary trends, turn out to be correct or appropriate;
- competition and demand for services in the solid waste
industry;
- price increases to our customers may not be adequate to offset
the impact of increased costs, including labor, third-party
disposal and fuel, and may cause us to lose volume;
- our ability to manage growth and execute our growth
strategy;
- our compliance with, and future changes in, environmental and
flow control regulations and our ability to obtain approvals from
regulatory agencies in connection with operating and expanding our
landfills;
- the impact on us of our substantial indebtedness, including on
our ability to obtain financing on acceptable terms to finance our
operations and growth strategy and to operate within the
limitations imposed by financing arrangements;
- our ability to retain our investment grade ratings for our
debt;
- our dependence on key personnel;
- our dependence on large, long-term collection, transfer and
disposal contracts;
- our business is capital intensive and may consume cash in
excess of cash flow from operations;
- any exposure to environmental liabilities or remediation
requirements, to the extent not adequately covered by insurance,
could result in substantial expenses;
- risks associated with undisclosed liabilities of acquired
businesses;
- risks associated with pending and future legal proceedings,
including litigation, audits or investigations brought by or before
any governmental body;
- severe weather conditions, including those brought about by
climate change, which could impair our financial results by causing
increased costs, loss of revenue, reduced operational efficiency or
disruptions to our operations;
- compliance with existing and future legal and regulatory
requirements, including limitations or bans on disposal of certain
types of wastes or on the transportation of waste, which could
limit our ability to conduct or grow our business, increase our
costs to operate or require additional capital expenditures;
- potential increases in our costs if we are required to provide
additional funding to any multiemployer pension plan to which we
contribute or if a withdrawal event occurs with respect to any
multiemployer pension plan to which we contribute;
- the negative impact on our operations of union organizing
campaigns, work stoppages or labor shortages;
- the negative effect that trends toward requiring recycling,
waste reduction at the source and prohibiting the disposal of
certain types of wastes could have on volumes of waste going to
landfills;
- changes by the Financial Accounting Standards Board or other
accounting regulatory bodies to generally accepted accounting
principles or policies;
- a cyber security incident could negatively impact our business
and our relationships with customers; and
- acts of war, riots or terrorism, including the continuing war
on terrorism, as well as actions taken or to be taken by
the United States or other
governments as a result of further acts or threats of terrorism,
and the impact of these acts on economic, financial and social
conditions in the United
States.
The risks included here are not exhaustive. Refer to
"Part I, Item 1A — Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31, 2014 for further
discussion regarding our exposure to risks. You should be
aware that any forward-looking statement made by us in this press
release, speaks only as of the date on which we make it.
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 or the
extent to which any factor or combination of factors may cause
actual results to differ materially from those contained in any
forward-looking statements made in this press release. You
should not place undue reliance on these forward-looking
statements. Except to the extent required by applicable law
or regulation, we undertake no obligation to update or publish
revised forward-looking statements to reflect events or
circumstances after the date of this press release, or to reflect
the occurrence of unanticipated events.
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SOURCE Republic Services, Inc.