Republic Services has released its financial statements for the full year and the fourth quarter of 2021.
“We ended the year strong, capping off our best year of financial performance in the company’s 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. . chief executive officer. “In addition, we have invested more than $1 billion in value-creating acquisitions and returned more than $800 million to shareholders in the form of dividends and share buybacks.”
The company reported net income of $313.1 million, or $0.98 per diluted share, for the three months ended Dec. 31, 2021, compared with $235.5 million, or $0.74 per diluted share, for the comparable period of 2020.
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, compared to $320.4 million, or $1.00 per diluted share, for the comparable period of 2020.
For the year ended December 31, 2021, net income was $1,290.4 million, or $4.04 per diluted share, compared to $967.2 million, or $3.02 per share diluted, 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, compared to $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% over the prior year. Adjusted EPS exceeded the company’s upwardly revised guidance for the full year.
- Full-year cash flow from operating activities was $2.79 billion, an increase of 13% over the prior year. Adjusted free cash flow, a non-GAAP measure, was $1.52 billion, an increase of 23% over the prior year. Adjusted free cash flow exceeded the company’s upwardly revised guidance for the full year.
- Republic invested $1.06 billion in acquisitions, or $1.02 billion net of divestitures.
- Full-year cash returned to shareholders through dividends and share buybacks was $805 million.
- Full-year revenue growth from average return was 2.9% and volume increased 3.8%.
- Fourth quarter revenue growth from the average return was 3.4% and volume increased 3.6%. The price of core in the fourth quarter increased revenue by 5.4%. The base price consisted of 7.0% in the open market and 2.9% in the restricted part of the business.
- Adjusted EBITDA for the full year, a non-GAAP measure, was $3.38 billion and Adjusted EBITDA margin was 30.0% of revenue, representing an increase of 60 basis points compared to the previous year.
- The company’s average recycled raw material price per ton sold during the fourth quarter was $218. This represents a decrease from the third quarter of $12 per tonne and an increase of $108 per tonne from the prior year.
Financial guidelines for 2022
Adjusted diluted earnings per share: The company expects adjusted diluted earnings per share to be between $4.58 and $4.65.
Adjusted free cash flow: Republic expects adjusted free cash flow to be between $1,625 million and $1,675 million.
Revenue: Republic expects average yield growth of approximately 3.4% and volume growth of between 1.5% and 2.0%.
Adjusted EBITDA margin: Republic expects the adjusted EBITDA margin to increase by around 30 to 40 basis points from full-year 2021 performance.
Acquisitions & investments: Republic plans to invest at least $500 million in acquisitions and $175 million in solar energy investments eligible for tax credits.