PHOENIX, Feb. 16, 2017 /PRNewswire/ -- Republic
Services, Inc. (NYSE: RSG) today reported net income of
$189.5 million, or $0.55 per diluted share, for the three-months
ended Dec. 31, 2016, versus $172.3
million, or $0.49 per diluted
share, for the comparable 2015 period. Excluding certain benefits
and expenses, on an adjusted basis, net income for the three-months
ended Dec. 31, 2016, was $193.8 million, or $0.57 per diluted share, versus $175.0 million, or $0.50 per diluted share, for the comparable 2015
period.
For the year ended Dec. 31, 2016,
net income was $612.6 million, or
$1.78 per diluted share, versus
$749.9 million, or $2.13 per diluted share, for the comparable 2015
period. On an adjusted basis, net income for the year ended
Dec. 31, 2016, was $763.3 million, or $2.22 per diluted share, versus $722.3 million, or $2.06 per diluted share, for the comparable 2015
period.
"We finished the year strong and delivered fourth-quarter and
full-year results that exceeded the upper-end of our guidance,"
said Donald W. Slager, president and
chief executive officer. "Our positive momentum continued
throughout 2016 which resulted in full-year margin expansion,
high-single digit earnings and free cash flow growth, and improved
return on invested capital. Our solid results continue to reflect
positive contributions from reinvesting back into the business and
successfully executing our strategy of profitable growth through
differentiation."
Fourth-Quarter and Full-Year Financial Highlights:
- Fourth-quarter adjusted diluted EPS was $0.57 per share.
- Full-year adjusted diluted EPS was $2.22, which exceeded the Company's full-year
guidance.
- Full-year cash provided by operating activities was
approximately $1.8 billion and
adjusted free cash flow was $885
million. Adjusted free cash flow was positively impacted by
lower than anticipated cash taxes.
- Fourth-quarter revenue growth from average yield was 2.2
percent and volumes increased 0.5 percent. This continues to
reflect Republic's ability to grow price and volume
simultaneously.
- Full-year revenue growth from average yield was 2.1 percent and
volumes increased 1.0 percent. Both metrics were in line with the
Company's expectations.
- Fourth-quarter adjusted EBITDA margin was 27.9 percent, an
improvement of 70 basis points from the comparable 2015
period.
- Full-year adjusted EBITDA margin was 28.3 percent, an
improvement of 20 basis points from the prior year.
- Delivered total shareholder return of 32.8 percent during 2016,
which exceeded the S&P 500 average by approximately 275
percent.
- Returned approximately $820
million to shareholders through share repurchases and
dividends during 2016.
Fourth-Quarter and Full-Year Operational Highlights:
- The Company advanced its revenue-enhancing and customer-facing
initiatives to improve customer experience, further differentiate
its product and service offerings, and build customer loyalty. For
example, the Company:
- increased the number of customers that do business with
Republic digitally. Approximately 1.8 million customers are now
enrolled in the MyResourceTM customer portal and mobile
app, up 50 percent from a year ago. These tools significantly
enhance customer interaction and connectivity.
- expanded e-commerce capabilities to allow customers to purchase
residential, small-container and temporary large-container services
online. Republic's e-commerce platform addresses the evolving needs
of customer buying preferences and provides a lower-cost sales
channel.
- opened three new fully operational state-of-the art Customer
Resource Centers. The Customer Resource Centers enhance the
customer experience and will lower the Company's cost structure
once the transition to the new facilities is complete by the end of
2017.
- increased its Net Promoter Score on a year-over-year basis for
the fifth straight year.
- The Company advanced its fleet-based initiatives designed to
improve productivity and lower costs. Currently:
- 18 percent of the fleet operates on natural gas, up from 16
percent in the prior year.
- 74 percent of the residential fleet is automated, up from 72
percent in the prior year.
- 92 percent of the fleet is certified under Republic's
standardized maintenance program, up from 78 percent in the prior
year. The Company expects its entire fleet to be certified under
the program by the second quarter of 2017.
- The Company advanced its sustainability platform and was
recognized for its industry leading efforts. For example, the
Company:
- was named to the 2016 Dow Jones Sustainability World Index and
North America Index. Republic was the only company in the solid
waste industry to be named to both indices. The Company was also
awarded the "Industry Mover" award by the Dow Jones Sustainability
Index.
- was identified as a global leader for its actions and
strategies in response to climate change and named to the Climate A
List by the Carbon Disclosure Project. Republic was also awarded a
position on the Supplier Climate A List.
Fiscal Year 2017 Guidance
Republic's financial guidance is based on current economic
conditions and does not assume any significant changes in the
overall economy in 2017. Please refer to the Information Regarding
Forward-Looking Statements section of this document.
Specific guidance is as follows:
- Adjusted Free Cash Flow: Republic expects adjusted
free cash flow to be $875 million to $900
million. Detail relating to the computation of adjusted free
cash flow is contained in the Reconciliation of 2017 Financial
Guidance section of this document.
- Adjusted Diluted Earnings per Share: The Company
expects adjusted diluted earnings per share to be in the range of
$2.32 to $2.36. Detail relating to
the computation of adjusted diluted earnings per share is contained
in the Reconciliation of 2017 Financial Guidance section of this
document.
- Revenue: Republic expects an increase in revenue
of 4.5 to 5.0 percent comprised of the following:
|
Increase
(Decrease)
|
Average
yield
|
2.0%
|
Volume
|
1.0 to
1.25
|
Energy
services
|
0.25
|
Fuel recovery
fees
|
0.25
|
Recycled
commodities
|
0.50 to
0.75
|
Acquisitions
|
0.50
|
Total
change
|
4.5 to
5.0%
|
- Property and Equipment: The Company anticipates
receiving $975 million of property
and equipment, net of proceeds from sales of property and
equipment.
- Margin: Republic expects adjusted EBITDA margin to
expand by 20 to 40 basis points to a range of 28.5 to 28.7
percent.
- Taxes: The Company expects an effective tax rate
of 39.5 percent.
- Cash Utilization: Republic expects to invest
approximately $100 million in tuck-in
acquisitions. Additionally, the Company expects to return
approximately $900 million total cash
to shareholders, through $450 million
of dividends and $450 million in
share repurchases.
Mr. Slager commented, "Our financial guidance is consistent with
the preliminary outlook we provided last October demonstrating the
visibility we have into our business and stability of our earnings
and cash flows. During 2017, we will continue to advance our
strategic initiatives, profitably grow our business, create value
for our stakeholders and increase cash returns to our owners."
Republic Declares Quarterly Dividend
Republic also announced that its Board of Directors declared a
regular quarterly dividend of $0.32
per share for stockholders of record on April 3, 2017. The dividend will be paid on
April 17, 2017.
Presentation of Certain Non-GAAP
Measures
Adjusted diluted earnings per share, adjusted net income,
adjusted EBITDA, and adjusted free cash flow are described in the
Reconciliation of Certain Non-GAAP Measures section of this press
release. The adjusted diluted earnings per share and adjusted free
cash flow related to the fiscal year 2017 guidance are described in
the Reconciliation of 2017 Financial Guidance section of this press
release.
About Republic Services
Republic Services, Inc. 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 its 14 million customers. We'll
handle it from here.TM, the brand's promise, lets
customers know they can count on Republic to provide a superior
experience while fostering a sustainable Blue
PlanetTM 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)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
67.8
|
|
|
$
|
32.4
|
|
Accounts receivable,
less allowance for doubtful accounts and other of $44.0 and $46.7,
respectively
|
994.8
|
|
|
962.9
|
|
Prepaid expenses and
other current assets
|
221.9
|
|
|
235.0
|
|
Total current
assets
|
1,284.5
|
|
|
1,230.3
|
|
Restricted cash and
marketable securities
|
90.5
|
|
|
100.3
|
|
Property and
equipment, net
|
7,588.6
|
|
|
7,552.8
|
|
Goodwill
|
11,163.2
|
|
|
11,145.5
|
|
Other intangible
assets, net
|
182.3
|
|
|
246.4
|
|
Other
assets
|
320.5
|
|
|
260.6
|
|
Total
assets
|
$
|
20,629.6
|
|
|
$
|
20,535.9
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
553.8
|
|
|
$
|
577.4
|
|
Notes payable and
current maturities of long-term debt
|
5.8
|
|
|
5.5
|
|
Deferred
revenue
|
312.9
|
|
|
313.9
|
|
Accrued landfill and
environmental costs, current portion
|
142.7
|
|
|
149.8
|
|
Accrued
interest
|
71.8
|
|
|
71.6
|
|
Other accrued
liabilities
|
725.0
|
|
|
716.6
|
|
Total current
liabilities
|
1,812.0
|
|
|
1,834.8
|
|
Long-term debt, net
of current maturities
|
7,653.1
|
|
|
7,527.4
|
|
Accrued landfill and
environmental costs, net of current portion
|
1,684.8
|
|
|
1,677.9
|
|
Deferred income taxes
and other long-term tax liabilities, net
|
1,210.2
|
|
|
1,131.8
|
|
Insurance reserves,
net of current portion
|
274.6
|
|
|
278.1
|
|
Other long-term
liabilities
|
301.2
|
|
|
309.3
|
|
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; 348.2 and 346.0
issued including shares held in treasury, respectively
|
3.5
|
|
|
3.5
|
|
Additional paid-in
capital
|
4,764.5
|
|
|
4,677.7
|
|
Retained
earnings
|
3,324.0
|
|
|
3,138.3
|
|
Treasury stock, at
cost (8.8 and 0.4 shares, respectively)
|
(414.9)
|
|
|
(14.9)
|
|
Accumulated other
comprehensive income (loss), net of tax
|
14.2
|
|
|
(30.5)
|
|
Total Republic
Services, Inc. stockholders' equity
|
7,691.3
|
|
|
7,774.1
|
|
Noncontrolling
interests in consolidated subsidiary
|
2.4
|
|
|
2.5
|
|
Total stockholders'
equity
|
7,693.7
|
|
|
7,776.6
|
|
Total liabilities and
stockholders' equity
|
$
|
20,629.6
|
|
|
$
|
20,535.9
|
|
REPUBLIC SERVICES,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
(in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
2,379.1
|
|
|
$
|
2,290.2
|
|
|
$
|
9,387.7
|
|
|
$
|
9,115.0
|
|
Expenses:
|
|
|
|
|
|
|
|
Cost of
operations
|
1,465.3
|
|
|
1,403.7
|
|
|
5,764.0
|
|
|
5,518.6
|
|
Depreciation,
amortization and depletion
|
245.5
|
|
|
244.3
|
|
|
991.1
|
|
|
970.6
|
|
Accretion
|
19.7
|
|
|
20.2
|
|
|
79.1
|
|
|
79.4
|
|
Selling, general and
administrative
|
249.6
|
|
|
263.6
|
|
|
969.8
|
|
|
983.1
|
|
Withdrawal costs -
multiemployer pension funds
|
—
|
|
|
4.5
|
|
|
5.6
|
|
|
4.5
|
|
Gain on disposition
of assets and impairments, net
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Restructuring
charges
|
7.1
|
|
|
—
|
|
|
40.7
|
|
|
—
|
|
Operating
income
|
392.0
|
|
|
353.9
|
|
|
1,537.5
|
|
|
1,558.8
|
|
Interest
expense
|
(90.1)
|
|
|
(92.9)
|
|
|
(371.3)
|
|
|
(364.9)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(196.2)
|
|
|
—
|
|
Interest
income
|
—
|
|
|
0.2
|
|
|
0.9
|
|
|
0.8
|
|
Loss from
unconsolidated equity method investment
|
(6.1)
|
|
|
—
|
|
|
(6.1)
|
|
|
—
|
|
Other income
(expense), net
|
(1.1)
|
|
|
0.7
|
|
|
1.1
|
|
|
1.2
|
|
Income before income
taxes
|
294.7
|
|
|
261.9
|
|
|
965.9
|
|
|
1,195.9
|
|
Provision for income
taxes
|
105.1
|
|
|
89.5
|
|
|
352.7
|
|
|
445.5
|
|
Net income
|
189.6
|
|
|
172.4
|
|
|
613.2
|
|
|
750.4
|
|
Net income
attributable to noncontrolling interests in consolidated
subsidiary
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.6)
|
|
|
(0.5)
|
|
Net income
attributable to Republic Services, Inc.
|
$
|
189.5
|
|
|
$
|
172.3
|
|
|
$
|
612.6
|
|
|
$
|
749.9
|
|
Basic earnings per
share attributable to Republic Services, Inc.
stockholders:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.56
|
|
|
$
|
0.50
|
|
|
$
|
1.79
|
|
|
$
|
2.14
|
|
Weighted average
common shares outstanding
|
340.2
|
|
|
347.0
|
|
|
343.0
|
|
|
350.0
|
|
Diluted earnings per
share attributable to Republic Services, Inc.
stockholders:
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.55
|
|
|
$
|
0.49
|
|
|
$
|
1.78
|
|
|
$
|
2.13
|
|
Weighted average
common and common equivalent shares outstanding
|
341.6
|
|
|
348.4
|
|
|
344.4
|
|
|
351.4
|
|
Cash dividends per
common share
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
$
|
1.24
|
|
|
$
|
1.16
|
|
REPUBLIC SERVICES,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
millions)
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
Cash provided by
operating activities:
|
|
|
|
Net income
|
$
|
613.2
|
|
|
$
|
750.4
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, depletion and accretion
|
1,070.2
|
|
|
1,050.0
|
|
Non-cash interest
expense
|
53.4
|
|
|
47.1
|
|
Restructuring related
charges
|
40.7
|
|
|
—
|
|
Stock-based
compensation
|
23.2
|
|
|
18.9
|
|
Deferred tax
provision
|
47.2
|
|
|
116.7
|
|
Provision for
doubtful accounts, net of adjustments
|
20.4
|
|
|
22.7
|
|
Loss on
extinguishment of debt
|
196.2
|
|
|
—
|
|
Gain on disposition
of assets, net and asset impairments
|
(4.6)
|
|
|
(1.6)
|
|
Withdrawal liability
- multiemployer pension funds
|
5.6
|
|
|
4.5
|
|
Environmental
adjustments
|
2.0
|
|
|
(1.6)
|
|
Loss from
unconsolidated equity method investment
|
6.1
|
|
|
—
|
|
Excess income tax
benefit from stock-based compensation activity and other non-cash
items
|
(20.6)
|
|
|
(10.7)
|
|
Change in assets and
liabilities, net of effects from business acquisitions and
divestitures:
|
|
|
|
Accounts
receivable
|
(52.3)
|
|
|
(15.7)
|
|
Prepaid expenses and
other assets
|
(1.1)
|
|
|
(8.7)
|
|
Accounts
payable
|
(9.8)
|
|
|
35.6
|
|
Restructuring
expenditures
|
(32.5)
|
|
|
—
|
|
Capping, closure and
post-closure expenditures
|
(77.4)
|
|
|
(88.4)
|
|
Remediation
expenditures
|
(66.8)
|
|
|
(80.0)
|
|
Withdrawal
expenditures - multiemployer pension funds
|
—
|
|
|
(153.5)
|
|
Other
liabilities
|
34.7
|
|
|
(6.0)
|
|
Cash provided by
operating activities
|
1,847.8
|
|
|
1,679.7
|
|
Cash used in
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(927.8)
|
|
|
(945.6)
|
|
Proceeds from sales
of property and equipment
|
9.8
|
|
|
21.2
|
|
Cash used in business
acquisitions and investments, net of cash acquired
|
(62.4)
|
|
|
(572.7)
|
|
Cash proceeds from
business divestitures, net of cash divested
|
15.0
|
|
|
—
|
|
Change in restricted
cash and marketable securities
|
5.2
|
|
|
15.3
|
|
Other
|
(1.0)
|
|
|
(1.0)
|
|
Cash used in
investing activities
|
(961.2)
|
|
|
(1,482.8)
|
|
Cash used in
financing activities:
|
|
|
|
Proceeds from notes
payable and long-term debt
|
3,911.4
|
|
|
918.4
|
|
Proceeds from
issuance of senior notes, net of discount
|
498.9
|
|
|
497.9
|
|
Payments of notes
payable and long-term debt
|
(4,307.1)
|
|
|
(915.7)
|
|
Premiums paid on
extinguishment of debt
|
(176.9)
|
|
|
—
|
|
Fees paid to retire
and issue senior notes and retire certain hedging
relationships
|
(9.5)
|
|
|
(3.2)
|
|
Issuances of common
stock
|
49.7
|
|
|
65.9
|
|
Excess income tax
benefit from stock-based compensation activity
|
10.8
|
|
|
8.5
|
|
Purchases of common
stock for treasury
|
(403.8)
|
|
|
(404.7)
|
|
Cash dividends
paid
|
(418.9)
|
|
|
(399.3)
|
|
Distributions paid to
noncontrolling interests in consolidated subsidiary
|
(0.7)
|
|
|
(0.5)
|
|
Other
|
(5.1)
|
|
|
(7.0)
|
|
Cash used in
financing activities
|
(851.2)
|
|
|
(239.7)
|
|
Increase (decrease)
in cash and cash equivalents
|
35.4
|
|
|
(42.8)
|
|
Cash and cash
equivalents at beginning of year
|
32.4
|
|
|
75.2
|
|
Cash and cash
equivalents at end of year
|
$
|
67.8
|
|
|
$
|
32.4
|
|
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, 2016 (when filed). 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 and years ended December 31,
2016 and 2015:
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Collection:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
564.2
|
|
|
23.7
|
%
|
|
$
|
559.9
|
|
|
24.4
|
%
|
|
$
|
2,239.7
|
|
|
23.9
|
%
|
|
$
|
2,242.3
|
|
|
24.6
|
%
|
Small-container
commercial
|
726.9
|
|
|
30.6
|
|
|
701.8
|
|
|
30.6
|
|
|
2,877.5
|
|
|
30.7
|
|
|
2,799.9
|
|
|
30.7
|
|
Large-container
industrial
|
495.3
|
|
|
20.8
|
|
|
477.2
|
|
|
20.8
|
|
|
1,975.8
|
|
|
21.0
|
|
|
1,890.2
|
|
|
20.7
|
|
Other
|
9.8
|
|
|
0.3
|
|
|
10.5
|
|
|
0.5
|
|
|
38.2
|
|
|
0.4
|
|
|
39.8
|
|
|
0.4
|
|
Total
collection
|
1,796.2
|
|
|
75.4
|
|
|
1,749.4
|
|
|
76.3
|
|
|
7,131.2
|
|
|
76.0
|
|
|
6,972.2
|
|
|
76.4
|
|
Transfer
|
287.7
|
|
|
|
|
281.0
|
|
|
|
|
1,157.6
|
|
|
|
|
1,112.7
|
|
|
|
Less:
intercompany
|
(172.2)
|
|
|
|
|
(172.1)
|
|
|
|
|
(694.1)
|
|
|
|
|
(682.3)
|
|
|
|
Transfer,
net
|
115.5
|
|
|
4.9
|
|
|
108.9
|
|
|
4.8
|
|
|
463.5
|
|
|
4.9
|
|
|
430.4
|
|
|
4.7
|
|
Landfill
|
515.0
|
|
|
|
|
512.0
|
|
|
|
|
2,083.6
|
|
|
|
|
2,036.4
|
|
|
|
Less:
intercompany
|
(235.4)
|
|
|
|
|
(237.6)
|
|
|
|
|
(962.4)
|
|
|
|
|
(951.9)
|
|
|
|
Landfill,
net
|
279.6
|
|
|
11.8
|
|
|
274.4
|
|
|
12.0
|
|
|
1,121.2
|
|
|
11.9
|
|
|
1,084.5
|
|
|
11.9
|
|
Energy
services
|
23.3
|
|
|
1.0
|
|
|
23.0
|
|
|
1.0
|
|
|
76.4
|
|
|
0.8
|
|
|
95.8
|
|
|
1.1
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of recycled
commodities
|
117.6
|
|
|
4.9
|
|
|
94.2
|
|
|
4.1
|
|
|
420.4
|
|
|
4.5
|
|
|
372.0
|
|
|
4.1
|
|
Other
non-core
|
46.9
|
|
|
2.0
|
|
|
40.3
|
|
|
1.8
|
|
|
175.0
|
|
|
1.9
|
|
|
160.1
|
|
|
1.8
|
|
Total
other
|
164.5
|
|
|
6.9
|
|
|
134.5
|
|
|
5.9
|
|
|
595.4
|
|
|
6.4
|
|
|
532.1
|
|
|
5.9
|
|
Total
revenue
|
$
|
2,379.1
|
|
|
100.0
|
%
|
|
$
|
2,290.2
|
|
|
100.0
|
%
|
|
$
|
9,387.7
|
|
|
100.0
|
%
|
|
$
|
9,115.0
|
|
|
100.0
|
%
|
The following table reflects changes in components of our
revenue, as a percentage of total revenue, for the three months and
years ended December 31, 2016 and
2015:
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Average
yield
|
2.2
|
%
|
|
2.2
|
%
|
|
2.1
|
%
|
|
2.3
|
%
|
Fuel recovery
fees
|
(0.1)
|
|
|
(1.7)
|
|
|
(0.8)
|
|
|
(1.4)
|
|
Total
price
|
2.1
|
|
|
0.5
|
|
|
1.3
|
|
|
0.9
|
|
Volume
|
0.5
|
|
|
0.9
|
|
|
1.0
|
|
|
1.1
|
|
Recycled
commodities
|
1.0
|
|
|
(0.5)
|
|
|
0.5
|
|
|
(0.7)
|
|
Energy
Services
|
—
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
Total internal
growth
|
3.6
|
|
|
0.9
|
|
|
2.4
|
|
|
1.3
|
|
Acquisitions /
divestitures, net
|
0.3
|
|
|
1.8
|
|
|
0.6
|
|
|
2.2
|
|
Total
|
3.9
|
%
|
|
2.7
|
%
|
|
3.0
|
%
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
Core price
|
3.5
|
%
|
|
3.4
|
%
|
|
3.3
|
%
|
|
3.6
|
%
|
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, net of price decreases to retain
customers. We also 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. Average
yield as a percentage of related-business revenue was 2.4% and 2.3%
for the three months and year ended December
31, 2016, respectively, and 2.4% and 2.6% for the same
periods in 2015, respectively. Core price as a percentage of
related-business revenue was 3.7% for the three months and year
ended December 31, 2016, and 3.7% and
4.0% for the same periods in 2015, respectively.
COST OF OPERATIONS
The following table summarizes the major components of our cost
of operations for the three months and years ended December 31, 2016 and 2015:
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Labor and related
benefits
|
$
|
487.2
|
|
|
20.5
|
%
|
|
$
|
469.9
|
|
|
20.5
|
%
|
|
$
|
1,919.4
|
|
|
20.4
|
%
|
|
$
|
1,848.9
|
|
|
20.3
|
%
|
Transfer and disposal
costs
|
191.2
|
|
|
8.0
|
|
|
187.0
|
|
|
8.2
|
|
|
759.7
|
|
|
8.1
|
|
|
724.4
|
|
|
7.9
|
|
Maintenance and
repairs
|
221.2
|
|
|
9.3
|
|
|
216.8
|
|
|
9.5
|
|
|
894.9
|
|
|
9.5
|
|
|
853.3
|
|
|
9.3
|
|
Transportation and
subcontract costs
|
139.2
|
|
|
5.9
|
|
|
128.7
|
|
|
5.6
|
|
|
537.1
|
|
|
5.7
|
|
|
510.7
|
|
|
5.6
|
|
Fuel
|
84.4
|
|
|
3.5
|
|
|
73.4
|
|
|
3.2
|
|
|
317.0
|
|
|
3.4
|
|
|
362.4
|
|
|
4.0
|
|
Franchise fees and
taxes
|
111.9
|
|
|
4.7
|
|
|
111.4
|
|
|
4.9
|
|
|
451.0
|
|
|
4.8
|
|
|
443.6
|
|
|
4.9
|
|
Landfill operating
costs
|
43.6
|
|
|
1.8
|
|
|
41.3
|
|
|
1.8
|
|
|
175.2
|
|
|
1.9
|
|
|
151.5
|
|
|
1.7
|
|
Risk
management
|
43.0
|
|
|
1.8
|
|
|
48.8
|
|
|
2.1
|
|
|
184.7
|
|
|
2.0
|
|
|
167.7
|
|
|
1.8
|
|
Cost of goods
sold
|
51.4
|
|
|
2.2
|
|
|
42.7
|
|
|
1.9
|
|
|
183.2
|
|
|
2.0
|
|
|
168.0
|
|
|
1.8
|
|
Other
|
92.2
|
|
|
3.9
|
|
|
83.7
|
|
|
3.7
|
|
|
341.8
|
|
|
3.6
|
|
|
338.1
|
|
|
3.7
|
|
Subtotal
|
1,465.3
|
|
|
61.6
|
|
|
1,403.7
|
|
|
61.4
|
|
|
5,764.0
|
|
|
61.4
|
|
|
5,568.6
|
|
|
61.0
|
|
Bridgeton insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50.0)
|
|
|
(0.5)
|
|
Total cost of
operations
|
$
|
1,465.3
|
|
|
61.6
|
%
|
|
$
|
1,403.7
|
|
|
61.4
|
%
|
|
$
|
5,764.0
|
|
|
61.4
|
%
|
|
$
|
5,518.6
|
|
|
60.5
|
%
|
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 cost of
operations by cost component to that of other companies.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table provides the components of our selling,
general and administrative expenses for the three months and years
ended December 31, 2016 and 2015:
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Salaries
|
$
|
171.5
|
|
|
7.2
|
%
|
|
$
|
169.7
|
|
|
7.4
|
%
|
|
$
|
646.3
|
|
|
6.9
|
%
|
|
$
|
636.6
|
|
|
7.0
|
%
|
Provision for
doubtful accounts
|
2.9
|
|
|
0.1
|
|
|
5.4
|
|
|
0.2
|
|
|
20.4
|
|
|
0.2
|
|
|
22.7
|
|
|
0.2
|
|
Other
|
75.2
|
|
|
3.2
|
|
|
88.5
|
|
|
3.9
|
|
|
303.1
|
|
|
3.2
|
|
|
323.8
|
|
|
3.6
|
|
Total selling,
general and administrative expenses
|
$
|
249.6
|
|
|
10.5
|
%
|
|
$
|
263.6
|
|
|
11.5
|
%
|
|
$
|
969.8
|
|
|
10.3
|
%
|
|
$
|
983.1
|
|
|
10.8
|
%
|
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
selling, general and administrative expenses by cost component to
those of other companies.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
EBITDA
The following table calculates EBITDA, which is not a measure
determined in accordance with U.S. generally accepted accounting
principles (U.S. GAAP), for the three months and years ended
December 31, 2016 and 2015:
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
attributable to Republic Services, Inc.
|
$
|
189.5
|
|
|
$
|
172.3
|
|
|
$
|
612.6
|
|
|
$
|
749.9
|
|
Net income
attributable to noncontrolling interests
|
0.1
|
|
|
0.1
|
|
|
0.6
|
|
|
0.5
|
|
Provision for income
taxes
|
105.1
|
|
|
89.5
|
|
|
352.7
|
|
|
445.5
|
|
Other (income)
expense, net
|
1.1
|
|
|
(0.7)
|
|
|
(1.1)
|
|
|
(1.2)
|
|
Interest
income
|
—
|
|
|
(0.2)
|
|
|
(0.9)
|
|
|
(0.8)
|
|
Interest
expense
|
90.1
|
|
|
92.9
|
|
|
371.3
|
|
|
364.9
|
|
Depreciation,
amortization and depletion
|
245.5
|
|
|
244.3
|
|
|
991.1
|
|
|
970.6
|
|
Accretion
|
19.7
|
|
|
20.2
|
|
|
79.1
|
|
|
79.4
|
|
EBITDA
|
$
|
651.1
|
|
|
$
|
618.4
|
|
|
$
|
2,405.4
|
|
|
$
|
2,608.8
|
|
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 ratings 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 $0.55 and $1.78 for
the three months and year ended December 31,
2016 versus $0.49 and
$2.13 for the comparable 2015
periods. During the three months and years ended December 31, 2016 and 2015, we recorded a number
of charges, other expenses and benefits 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
December 31,
2016
|
|
Three Months
Ended
December 31,
2015
|
|
|
|
|
|
Net
|
|
Diluted
|
|
|
|
|
|
Net
|
|
Diluted
|
|
|
|
Pre-tax
|
|
Income -
|
|
Earnings
|
|
|
|
Pre-tax
|
|
Income -
|
|
Earnings
|
|
EBITDA
|
|
Income
|
|
Republic
|
|
per
Share(1)
|
|
EBITDA
|
|
Income
|
|
Republic
|
|
per Share
|
As
reported
|
$
|
651.1
|
|
|
$
|
294.7
|
|
|
$
|
189.5
|
|
|
$
|
0.55
|
|
|
$
|
618.4
|
|
|
$
|
261.9
|
|
|
$
|
172.3
|
|
|
$
|
0.49
|
|
Restructuring
charges
|
7.1
|
|
|
7.1
|
|
|
4.3
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss from
unconsolidated equity method investment
|
6.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Gain on disposition
of assets and impairments, net
|
(0.1)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Withdrawal costs -
multiemployer pension funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|
4.5
|
|
|
2.7
|
|
|
0.01
|
|
Total
adjustments
|
13.1
|
|
|
7.0
|
|
|
4.3
|
|
|
0.01
|
|
4.5
|
|
|
4.5
|
|
|
2.7
|
|
|
0.01
|
|
As
adjusted
|
$
|
664.2
|
|
|
$
|
301.7
|
|
|
$
|
193.8
|
|
|
$
|
0.57
|
|
|
$
|
622.9
|
|
|
$
|
266.4
|
|
|
$
|
175.0
|
|
|
$
|
0.50
|
|
|
(1) Line items
in this column do not total to $0.57 per share due to
rounding.
|
|
Year Ended
December 31,
2016
|
|
Year Ended
December 31,
2015
|
|
|
|
|
|
Net
|
|
Diluted
|
|
|
|
|
|
Net
|
|
Diluted
|
|
|
|
Pre-tax
|
|
Income -
|
|
Earnings
|
|
|
|
Pre-tax
|
|
Income -
|
|
Earnings
|
|
EBITDA
|
|
Income
|
|
Republic
|
|
per Share
|
|
EBITDA
|
|
Income
|
|
Republic
|
|
per Share
|
As
reported
|
$
|
2,405.4
|
|
|
$
|
965.9
|
|
|
$
|
612.6
|
|
|
$
|
1.78
|
|
|
$
|
2,608.8
|
|
|
$
|
1,195.9
|
|
|
$
|
749.9
|
|
|
$
|
2.13
|
|
Loss on
extinguishment of debt
|
196.2
|
|
|
203.4
|
|
|
122.7
|
|
|
0.36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Restructuring
charges
|
40.7
|
|
|
40.7
|
|
|
24.6
|
|
|
0.07
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss from
unconsolidated equity method investment
|
6.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Withdrawal costs -
multiemployer pension funds
|
5.6
|
|
|
5.6
|
|
|
3.4
|
|
|
0.01
|
|
4.5
|
|
|
4.5
|
|
|
2.7
|
|
|
0.01
|
Gain on disposition
of assets and impairments, net
|
(0.1)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Bridgeton insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50.0)
|
|
|
(50.0)
|
|
|
(30.3)
|
|
|
(0.08)
|
|
Total
adjustments
|
248.5
|
|
|
249.6
|
|
|
150.7
|
|
|
0.44
|
|
|
(45.5)
|
|
|
(45.5)
|
|
|
(27.6)
|
|
|
(0.07)
|
|
As
adjusted
|
$
|
2,653.9
|
|
|
$
|
1,215.5
|
|
|
$
|
763.3
|
|
|
$
|
2.22
|
|
|
$
|
2,563.3
|
|
|
$
|
1,150.4
|
|
|
$
|
722.3
|
|
|
$
|
2.06
|
|
We believe that presenting adjusted EBITDA, adjusted pre-tax
income, adjusted net income - Republic, 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
and have recorded similar recoveries in prior periods, and similar
types of adjustments can reasonably be expected to be recorded in
future periods. In the case of the Bridgeton insurance recovery, 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 charges and recoveries that we do not
adjust from our operating results. Our definition of adjusted
EBITDA, adjusted pre-tax income, adjusted net income - Republic,
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 years ended December 31, 2016 and
2015:
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
Cash provided by
operating activities
|
$
|
1,847.8
|
|
|
$
|
1,679.7
|
|
Property and
equipment received
|
(915.6)
|
|
|
(953.0)
|
|
Proceeds from sales
of property and equipment
|
9.8
|
|
|
21.2
|
|
Cash paid related to
withdrawal costs - multiemployer pension funds, net of
tax
|
—
|
|
|
95.8
|
|
Bridgeton insurance
recovery, net of tax
|
—
|
|
|
(30.3)
|
|
Restructuring
payments, net of tax
|
19.6
|
|
|
—
|
|
Cash tax benefit for
debt extinguishment and other related costs
|
(80.7)
|
|
|
—
|
|
Divestiture related
tax payments
|
4.2
|
|
|
—
|
|
Adjusted free cash
flow
|
$
|
885.1
|
|
|
$
|
813.4
|
|
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
expenditures because it excludes certain expenditures 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 years
ended December 31, 2016 and 2015:
|
Years
Ended December 31,
|
|
2016
|
|
2015
|
Purchases of property
and equipment per the unaudited consolidated statements of cash
flows
|
$
|
927.8
|
|
|
$
|
945.6
|
|
Adjustments for
property and equipment received during the prior period but paid
for in the following period, net
|
(12.2)
|
|
|
7.4
|
|
Property and
equipment received during the period
|
$
|
915.6
|
|
|
$
|
953.0
|
|
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 December 31, 2016 and 2015, accounts receivable were
$994.8 million and $962.9 million, net of allowance for doubtful
accounts of $44.0 million and
$46.7 million, respectively,
resulting in days sales outstanding of 38, or 26 days net of
deferred revenue, for 2016 and 2015.
CASH DIVIDENDS
In October 2016, we paid a cash
dividend of $109.0 million to
shareholders of record as of October 3,
2016. As of December 31, 2016, we recorded a dividend
payable of $108.6 million to
shareholders of record at the close of business on January 3, 2017, which was paid on January 16, 2017.
STOCK REPURCHASE PROGRAM
During the three months ended December 31, 2016, we
repurchased 1.7 million shares of our stock for $88.1 million at a weighted average cost per
share of $51.08.
As of December 31, 2016, we had 339.4 million shares of
common stock issued and outstanding.
RECONCILIATION OF 2017 FINANCIAL GUIDANCE
Adjusted Diluted Earnings per Share
The following is a summary of anticipated adjusted diluted
earnings per share for the year ending December 31, 2017 compared to the actual adjusted
diluted earnings per share for the year ended December 31, 2016. Adjusted diluted earnings per
share is not a measure determined in accordance with U.S. GAAP:
|
(Anticipated)
Year Ending
December 31, 2017
|
|
(Actual)
Year Ended
December 31, 2016
|
Diluted earnings per
share
|
$
2.29 - 2.33
|
|
$
|
1.78
|
Withdrawal costs -
multiemployer pension funds
|
—
|
|
0.01
|
Restructuring
charges
|
0.03
|
|
0.07
|
Loss on
extinguishment of debt
|
—
|
|
0.36
|
(Gain) loss on
disposition of assets and impairments, net
|
—
|
|
—
|
Adjusted diluted
earnings per share
|
$
2.32 - 2.36
|
|
$
|
2.22
|
We believe that the presentation of adjusted diluted earnings
per share, which excludes restructuring charges and withdrawal
costs - multiemployer pension funds, provides an understanding of
operational activities before the financial impact of certain
items. We use this measure, and believe investors will find it
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. Our definition of adjusted diluted earnings per share may
not be comparable to similarly titled measures presented by other
companies.
Adjusted Free Cash Flow
Our anticipated adjusted free cash flow for the year ending
December 31, 2017, and our actual adjusted free cash flow for
the year ended December 31, 2016, which are not measures
determined in accordance with U.S. GAAP, are calculated as
follows:
|
(Anticipated) Year Ending December 31, 2017
|
|
(Actual)
Year Ended December 31, 2016
|
Cash provided by
operating activities
|
$ 1,836 -
1,861
|
|
$
|
1,847.8
|
Property and
equipment received
|
(990)
|
|
(915.6)
|
Proceeds from sales
of property and equipment
|
15
|
|
9.8
|
Restructuring
payments, net of tax
|
14
|
|
19.6
|
Cash tax benefit for
debt extinguishment
|
—
|
|
(80.7)
|
Divestiture related
tax payments
|
—
|
|
4.2
|
Adjusted free cash
flow
|
$
875 - 900
|
|
$
|
885.1
|
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 reflected on our consolidated statements of cash flows to
property and equipment received during the period is as
follows:
|
(Anticipated) Year Ending December 31, 2017
|
|
(Actual)
Year Ended December 31, 2016
|
Purchases of property
and equipment per the unaudited consolidated statements of cash
flows
|
$
|
1,033
|
|
$
|
927.8
|
Adjustments for
property and equipment received during the prior period but paid
for in the following period, net
|
(43)
|
|
(12.2)
|
Property and
equipment received during the period
|
$
|
990
|
|
$
|
915.6
|
We believe that presenting adjusted free cash flow provides
useful information regarding our recurring cash provided by
operating activities after certain expenditures. 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 expenditures because it excludes certain expenditures
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.
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,
projected costs and expenses related to our landfills and property
and equipment, fair values of acquired assets and liabilities
assumed in our acquisitions, 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 technology in our operations;
- 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;
- safety and operational risks, including the risk of personal
injury to our employees or third parties;
- 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, 2016 (when filed),
for further discussion regarding our exposure to risks.
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. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. 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 hereof or to reflect the occurrence of unanticipated
events.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/republic-services-inc-reports-fourth-quarter-and-full-year-results-company-provides-2017-full-year-guidance-300408906.html
SOURCE Republic Services, Inc.