Financial report: Republic Services invested over $1 billion in acquisitions in 2021

Republic Services has released its financials for both the full year and fourth quarter of 2021.

"We finished the year strong, capping off our best year of financial performance in company history. We consistently exceeded expectations and delivered double digit growth in revenue, EBITDA, earnings and free cash flow during the year," said Jon Vander Ark, president and chief executive officer. "Additionally, we invested over $1 billion in value-creating acquisitions and returned over $800 million to shareholders through dividends and share repurchases."

The company reported a net income of $313.1 million, or $0.98 per diluted share, for the three months ended December 31, 2021, versus $235.5 million, or $0.74 per diluted share, for the comparable 2020 period.

Excluding certain benefits and expenses, on an adjusted basis, net income for the three months ended December 31, 2021 was $325.5 million, or $1.02 per diluted share, versus $320.4 million, or $1.00 per diluted share, for the comparable 2020 period.

For the year ended December 31, 2021, net income was $1,290.4 million, or $4.04 per diluted share, versus $967.2 million, or $3.02 per diluted share, for 2020. On an adjusted basis, net income for the year ended December 31, 2021 was $1,330.6 million, or $4.17 per diluted share, versus $1,137.8 million, or $3.56 per diluted share, for 2020.

Fourth-quarter and full-year 2021 highlights

• Fourth quarter EPS was $0.98 per share, and adjusted EPS, a non-GAAP measure, was $1.02 per share.
• Full-year EPS was $4.04 per share, and adjusted EPS, a non-GAAP measure, was $4.17 per share, an increase of 17 percent over the prior year. Adjusted EPS exceeded the company's upwardly revised full-year guidance.
• Full-year cash provided by operating activities was $2.79 billion, an increase of 13 percent versus the prior year. Adjusted free cash flow, a non-GAAP measure, was $1.52 billion, an increase of 23 percent versus the prior year. Adjusted free cash flow exceeded the company's upwardly revised full-year guidance.
• Republic invested $1.06 billion in acquisitions, or $1.02 billion net of divestitures.
• Full-year cash returned to shareholders through dividends and share repurchases was $805 million.
• Full-year revenue growth from average yield was 2.9 percent and volume increased 3.8 percent.
• Fourth quarter revenue growth from average yield was 3.4 percent and volume increased 3.6 percent. Fourth quarter core price increased revenue by 5.4 percent. Core price consisted of 7.0 percent in the open market and 2.9 percent in the restricted portion of the business.
• Full-year adjusted EBITDA, a non-GAAP measure, was $3.38 billion and adjusted EBITDA margin was 30.0 percent of revenue, which represents a 60 basis point increase over the prior year.
• The company's average recycled commodity price per ton sold during the fourth quarter was $218. This represents a decrease from the third quarter of $12 per ton and an increase of $108 per ton over the prior year.

Financial guidance for 2022

Adjusted diluted earnings per share: The company expects adjusted diluted earnings per share to be in the range of $4.58 to $4.65. 

Adjusted free cash flow: Republic expects adjusted free cash flow to be in the range of $1,625 million to $1,675 million.

Revenue: Republic expects an increase in average yield of approximately 3.4 percent and volume growth to be in the range of 1.5 percent to 2.0 percent.

Adjusted EBITDA margin: Republic expects adjusted EBITDA margin to expand over full-year 2021 performance by approximately 30 to 40 basis points.

Acquisitions & investments: Republic expects to invest at least $500 million in acquisitions and $175 million in solar energy investments that qualify for tax credits.