Republic Services Earnings Cheat Sheet: More than Twofold Profit Rise

Lower costs helped S&P 500 (NYSE:SPY) component Republic Services, Inc. (NYSE:RSG) pull in a higher profit in the first quarter. Republic Services, Inc. offers non-hazardous solid waste collection, transfer, recycling and disposal services in the U.S.

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Republic Services Earnings Cheat Sheet for the First Quarter

Results: Net income for Republic Services, Inc. rose to $158.2 million (41 cents/share) vs. $65 million (17 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 0.4% to $1.96 billion YoY.

Actual vs. Wall St. Expectations: RSG fell right in step with the street’s estimates of 41 cents/share.

Quoting Management: Commenting on these results, Donald W. Slager, President and Chief Executive Officer of Republic Services, said, “Our performance in the first quarter is a direct result of the organization’s continued focus on pricing, productivity improvements and customer service. This is the fourth quarter in a row we have seen sequential improvement in our collection volumes. Our free cash flow performance has allowed us to repurchase approximately five million shares in the quarter for approximately $148 million leaving $212 million available under the existing repurchase program which we expect to complete in 2011. We are committed to providing strong cash returns to our stockholders.”

Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose more than fourfold and in the third quarter of the last fiscal year, the figure rose 11.4%.

Over the last five quarters, revenue has fallen an average of 0.8% year over year. The biggest drop came in the first quarter of the last fiscal year, when revenue fell 5% from the year earlier quarter.

Competitors to Watch: Waste Management, Inc. (NYSE:WM), Waste Connections, Inc. (NYSE:WCN), WCA Waste Corporation (NASDAQ:WCAA), Casella Waste Systems Inc. (NASDAQ:CWST), Perma-Fix Environmental Services, Inc. (NASDAQ:PESI), Stericycle, Inc. (NASDAQ:SRCL), Industrial Services of America, Inc. (NASDAQ:IDSA), Clean Harbors, Inc. (NYSE:CLH), 3CI Complete Compliance Corp. (TCCC), and Media Pal Holdings, Corp. (MPHD).

Today’s Performance: Shares of RSG are unchanged in after hours trading.


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