Republic Services, Inc. Reports Third Quarter 2023 Results

PHOENIX, Oct. 26, 2023

"During the third quarter, we delivered strong results as we continue to execute on our strategy designed to profitably grow the business," said Jon Vander Ark, president and chief executive officer. "Our revenue growth was broad-based, including healthy pricing, positive organic volume growth and above-average contribution from acquisitions, which resulted in adjusted EBITDA growth of nine percent and 70 basis points of margin expansion. The investments we are making in sustainability growth initiatives remain on track, with expected financial contribution beginning in 2024."

Third-Quarter and Year-to-Date 2023 Highlights:

• Third quarter total revenue growth of 6.3 percent includes 4.6 percent organic growth and 1.7 percent growth from acquisitions.
• Third quarter core price on total revenue increased revenue by 7.0 percent. Core price on related business revenue increased revenue by 8.6 percent, which consisted of 10.4 percent in the open market and 5.7 percent in the restricted portion of the business.
• Third quarter revenue growth from average yield on total revenue was 5.8 percent, and volume increased revenue by 0.1 percent. Revenue growth from average yield on related business revenue was 7.2 percent, and volume increased related business revenue by 0.1 percent.
• Third quarter net income was $480.2 million, or a margin of 12.6 percent.
• Third quarter EPS was $1.52 per share, an increase of 15.2 percent over the prior year.
• Third quarter adjusted EPS, a non-GAAP measure, was $1.54 per share, an increase of 14.9 percent over the prior year.
• Third quarter adjusted EBITDA, a non-GAAP measure, was $1,145.7 million and adjusted EBITDA margin, a non-GAAP measure, was 29.9 percent of revenue.
• Year-to-date cash invested in acquisitions was $947.4 million, all in the recycling and solid waste business.
• Year-to-date cash returned to shareholders was $670.6 million, which included $201.1 million of share repurchases and $469.5 million of dividends paid.
• The Company's average recycled commodity price per ton sold during the third quarter was $112. This represents a decrease of $7 per ton from the second quarter of 2023 and a decrease of $50 per ton over the prior year.

Raised Full-Year 2023 Adjusted EPS Guidance

The Company now expects full-year 2023 diluted earnings per share to be in the range of $5.30 to $5.33 and adjusted diluted earnings per share to be in the range of $5.46 to $5.49. The increase is primarily due to a lower than expected tax rate. The Company reiterates the full-year 2023 guidance ranges for adjusted EBITDA and adjusted free cash flow provided in July. Please refer to the Reconciliation of 2023 Financial Guidance section of this document for detail relating to the computation of non-GAAP measures as well as the Information Regarding Forward-Looking Statements section of this document.

Board Authorized $3 Billion For Share Repurchases

Republic announced today that its Board of Directors approved a $3 billion share repurchase authorization effective starting January 1, 2024, and extending through December 31, 2026. As of September 30, 2023, the remaining purchase capacity under the prior authorization was $1.4 billion, which continues through December 31, 2023.