Republic Services, Inc (RSG) has reported a 9.98 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $189.50 million, or $0.55 a share in the quarter, compared with $172.30 million, or $0.49 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $193.80 million, or $0.57 a share compared with $175 million or $0.50 a share, a year ago. Revenue during the quarter grew 3.88 percent to $2,379.10 million from $2,290.20 million in the previous year period. Gross margin for the quarter contracted 30 basis points over the previous year period to 38.41 percent. Total expenses were 83.52 percent of quarterly revenues, down from 84.55 percent for the same period last year. This has led to an improvement of 102 basis points in operating margin to 16.48 percent.
Operating income for the quarter was $392 million, compared with $353.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $664.20 million compared with $622.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 72 basis points in the quarter to 27.92 percent from 27.20 percent in the last year period.
"We finished the year strong and delivered fourth-quarter and full-year results that exceeded the upper-end of our guidance," said Donald W. Slager, president and chief executive officer. "Our positive momentum continued throughout 2016 which resulted in full-year margin expansion, high-single digit earnings and free cash flow growth, and improved return on invested capital. Our solid results continue to reflect positive contributions from reinvesting back into the business and successfully executing our strategy of profitable growth through differentiation."
For financial year 2017, Republic Services, Inc expects revenue to grow in the range of 4.50 percent to 5 percent. The company projects diluted earnings per share to be in the range of $2.29 to $2.33. It company projects diluted earnings per share to be in the range of $2.32 to $2.36 on adjusted basis.
Operating cash flow improves
Republic Services has generated cash of $1,847.80 million from operating activities during the year, up 10.01 percent or $168.10 million, when compared with the last year. The company has spent $961.20 million cash to meet investing activities during the year as against cash outgo of $1,482.80 million in the last year. It has incurred net capital expenditure of $918 million on net basis during the year, down 0.69 percent or $6.40 million from year ago.
The company has spent $851.20 million cash to carry out financing activities during the year as against cash outgo of $239.70 million in the last year period.
Cash and cash equivalents stood at $67.80 million as on Dec. 31, 2016, up 109.26 percent or $35.40 million from $32.40 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Republic Services, Inc was negative $527.50 million on Dec. 31, 2016 compared with negative $604.50 million on Dec. 31, 2015. Current ratio was at 0.71 as on Dec. 31, 2016, up from 0.67 on Dec. 31, 2015.
Days sales outstanding were almost stable at 19 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 17 days for the quarter from 19 for the same period last year.
Debt moves up marginally
Republic Services, Inc has witnessed an increase in total debt over the last one year. It stood at $7,658.90 million as on Dec. 31, 2016, up 1.67 percent or $126 million from $7,532.90 million on Dec. 31, 2015. Total debt was 37.13 percent of total assets as on Dec. 31, 2016, compared with 36.61 percent on Dec. 31, 2015. Debt to equity ratio was at 1 as on Dec. 31, 2016, up from 0.97 as on Dec. 31, 2015. Interest coverage ratio improved to 4.35 for the quarter from 3.81 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
