Republic sees continued revenue growth in Q3

Republic Services Inc., Phoenix, has reported revenue growth in the third quarter of the year. The company achieved net income of $350.3 million, or $1.10 per diluted share, for its third quarter, which ended Sept. 30. This compares with $260 million, or 81 cents per diluted share, for the third quarter in 2020. Excluding certain benefits and expenses, on an adjusted basis net income for the quarter was $353.7 million, or $1.11 per diluted share, compared with $319.3 million, or $1 per diluted share, for the same time frame in 2020.

Republic Services reports that the company’s average recycled commodity price per ton sold during the third quarter was $230, which is a sequential increase from the second quarter of $60 per ton and an increase of $131 per ton compared with the same quarter in 2020.

During Republic Services’ third-quarter earnings call Oct. 28, the company reported that its small container and municipal sold waste volumes in the third quarter both increased above 2019 levels.

On the call, the company also reported that it delivered revenue and earnings before interest, taxes, depreciation and amortization growth of about 14 percent in the quarter compared with the same time frame in 2020.

According to the company’s latest earnings report, year-to-date cash provided by operating activities was $2.1 billion, which is up 12 percent compared with the same time frame in 2020.

“We continue to drive outsized revenue growth both organically and through acquisitions,” says Jon Vander Ark, president and chief executive officer of Republic Services, in the earnings report. “This year already represents the highest level of investment in acquisitions in over a decade. Our acquisition pipeline remains robust, with broad-based opportunities in the recycling and solid waste business and in our environmental solutions business.”

According to the company’s earnings report, year-to-date investments in acquisitions are at $922 million, or $876 million net of divestitures.

“This is the highest level of acquisition investment in over a decade,” Vander Ark said during the earnings call. “We now expect to invest over $1 billion in acquisitions through the full year. In addition to investing in acquisitions, we have returned $622 million to our shareholders through dividends and share repurchases.”

Within the quarter, Republic Services completed its acquisition of ACV Enviro. The company said this acquisition expands its capabilities and offerings in the environmental services industry.

Republic Services also opened a solar project on one of its closed landfills in Belleville, Illinois, in the third quarter. The project consists of 30,000 solar panels and will produce enough energy to power 2,200 homes annually. Additionally, the company opened the first solar-powered compost facility in California to provide organic processing capabilities to residents in the San Diego area.

“We remain committed to increasing the recycling and circularity of key materials as part of our ambitious 2030 sustainability goal,” Vander Ark said.

Vander Ark said the company also recently unveiled its Republic Services Technical Institute as a diesel technician school, which will provide the company with a pipeline of technician talent.

Looking ahead, Vander Ark said he expects “the positive momentum in our business to continue to produce profitable growth in 2022.”

He said, “We anticipate producing above-average growth, leading to high single-digit adjusted free cash flow growth compared to our full-year 2021 performance.”