Republic Services earnings dip slightly

Republic Services earnings dip slightly

By Editorial Staff, Resource Recycling

Republic Services Inc. has released its annual report, revealing that the company made slightly less money in 2012 than the year before, in part, because of a drop in sales revenues from recyclables.

Describing itself as the "second largest provider of services in the domestic non-hazardous solid waste industry as measured by revenue," Republic, which has a presence in 38 states and Puerto Rico, owns or operates 195 transfer stations and 71 recycling centers. During 2012, Republic invested $76 million in five recycling centers.

In 2012, Republic had $8.11 billion in revenue, down slightly from the previous year's $8.19 billion. Net income was $571.8 million for Republic in 2012, or $1.55 per diluted share. In 2011, Republic saw $589.2 million in net income, or $1.55 per diluted share.

The sale of recyclable commodities made up $349 million of that revenue stream, down from $438.6 million in 2011.

"Changing market demand for recyclable materials causes volatility in commodity prices," reads the document. "At current volumes and mix of materials, we believe a 10 dollar per ton change in the price of recyclable materials will change annual revenue and operating income by approximately $29 million and $20 million, respectively, on an annual basis."

For 2013, Republic expects revenue from recyclable commodities to decrease by 0.2 percent, despite expecting overall revenue to increase by about 2.0 to 2.5 percent.

Republic includes its $7 billion debt as a factor that may limit the company's financial flexibility and ability to make additional capital expenditures and other investments.

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