Republic Services (RSG) has reported 19.85 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $187.80 million, or $0.55 a share in the quarter, compared with $156.70 million, or $0.45 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $187.30 million, or $0.55 a share compared with $167.30 million or $0.48 a share, a year ago.
Revenue during the quarter grew 6.41 percent to $2,392.80 million from $2,248.60 million in the previous year period. Gross margin for the quarter contracted 59 basis points over the previous year period to 37.98 percent. Total expenses were 83.78 percent of quarterly revenues, down from 84.63 percent for the same period last year. This has led to an improvement of 85 basis points in operating margin to 16.22 percent.
Operating income for the quarter was $388.10 million, compared with $345.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $655.20 million compared with $626 million in the prior year period. At the same time, adjusted EBITDA margin contracted 46 basis points in the quarter to 27.38 percent from 27.84 percent in the last year period.
"Our solid pricing and volume growth continue to demonstrate the benefits from our Company strategy of profitable growth through differentiation," said Donald W. Slager, president and chief executive officer. "We generated strong earnings and free cash flow growth in the quarter and returned $218 million to shareholders through dividends and share repurchases. Our first-quarter results position us well to achieve our full-year goals."
Operating cash flow improves marginallyRepublic Services has generated cash of $444.30 million from operating activities during the quarter, up 2.97 percent or $12.80 million, when compared with the last year period.
The company has spent $292.20 million cash to meet investing activities during the quarter as against cash outgo of $270.20 million in the last year period. It has incurred net capital expenditure of $222.60 million on net basis during the quarter, down 17.13 percent or $46 million from year ago period.
The company has spent $186.70 million cash to carry out financing activities during the quarter as against cash outgo of $160.30 million in the last year period.
Cash and cash equivalents stood at $33.20 million as on Mar. 31, 2017, down 0.60 percent or $0.20 million from $33.40 million on Mar. 31, 2016.
Working capital remains negativeWorking capital of Republic Services was negative $542.80 million on Mar. 31, 2017 compared with negative $627 million on Mar. 31, 2016. Current ratio was at 0.69 as on Mar. 31, 2017, up from 0.65 on Mar. 31, 2016.
Days sales outstanding went down to 37 days for the quarter compared with 38 days for the same period last year.
At the same time, days payable outstanding went down to 33 days for the quarter from 37 for the same period last year.
Debt moves up marginally Republic Services has witnessed an increase in total debt over the last one year. It stood at $7,670.10 million as on Mar. 31, 2017, up 1.45 percent or $109.70 million from $7,560.40 million on Mar. 31, 2016. Total debt was 37.24 percent of total assets as on Mar. 31, 2017, compared with 36.81 percent on Mar. 31, 2016. Debt to equity ratio was at 1 as on Mar. 31, 2017, up from 0.97 as on Mar. 31, 2016. Interest coverage ratio improved to 4.34 for the quarter from 3.73 for the same period last year.
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