Financial report: Republic Services revenue up 6.3 percent in third quarter of 2023

Republic Services has released its financial reports for the third quarter of 2023.

Republic Services has reported a net income of $480.2 million, or $1.52 per diluted share versus $416.9 million, or $1.32 per diluted share, for the comparable 2022 period. Excluding certain expenses and other items, on an adjusted basis, net income was $488.3 million, or $1.54 per diluted share, versus $425.4 million, or $1.34 per diluted share, for the comparable 2022 period.

"During the third quarter, we delivered strong results as we continue to execute on our strategy designed to profitably grow the business," said Jon Vander Ark, president and chief executive officer at Republic Services. "Our revenue growth was broad-based, including healthy pricing, positive organic volume growth, and above-average contribution from acquisitions, which resulted in adjusted EBITDA growth of nine percent and 70 basis points of margin expansion. The investments we are making in sustainability growth initiatives remain on track, with expected financial contribution beginning in 2024."

Third-quarter and year-to-date 2023 highlights

• Third quarter total revenue growth of 6.3 percent includes 4.6 percent organic growth and 1.7 percent growth from acquisitions.
• Third-quarter core price on total revenue increased revenue by 7.0 percent. Core price on related business revenue increased revenue by 8.6 percent, which consisted of 10.4 percent in the open market and 5.7 percent in the restricted portion of the business.
• Third-quarter revenue growth from average yield on total revenue was 5.8 percent, and volume increased revenue by 0.1 percent. Revenue growth from average yield on related business revenue was 7.2 percent, and volume increased related business revenue by 0.1 percent.
• Third-quarter net income was $480.2 million, or a margin of 12.6 percent.
• Third-quarter EPS was $1.52 per share, an increase of 15.2 percent over the prior year.
• Third-quarter adjusted EPS, a non-GAAP measure, was $1.54 per share, an increase of 14.9 percent over the prior year.
• Third-quarter adjusted EBITDA, a non-GAAP measure, was $1,145.7 million and adjusted EBITDA margin, a non-GAAP measure, was 29.9 percent of revenue.
• Year-to-date cash invested in acquisitions was $947.4 million, all in the recycling and solid waste business.
• Year-to-date cash returned to shareholders was $670.6 million, which included $201.1 million of share repurchases and $469.5 million of dividends paid.
• The company's average recycled commodity price per ton sold during the third quarter was $112. This represents a decrease of $7 per ton from the second quarter of 2023 and a decrease of $50 per ton over the prior year.

Raised full-year 2023 adjusted EPS guidance

Republic Services expects full-year 2023 diluted earnings per share to be in the range of $5.30 to $5.33 and adjusted diluted earnings per share to be in the range of $5.46 to $5.49. The increase is primarily due to a lower-than-expected tax rate.

Authorized $3 billion for share repurchases

Republic Services' Board of Directors has approved a $3 billion share repurchase starting in January of 2024 and extending through the end of 2026. The remaining purchase capacity under the prior authorization was $1.4 billion, which continues through until the end of 2023.

Republic Services' quarterly dividend

Republic Services' Board of Directors declared a regular quarterly dividend of $0.535 per share for shareholders of record on January 2, 2024. The dividend will be paid on January 16, 2024.