Republic Services Inc. (RSG, Financial) filed Quarterly Report for the period ended 2012-09-30.
Republic Services Inc has a market cap of $10.31 billion; its shares were traded at around $28.3 with a P/E ratio of 13.9 and P/S ratio of 1.3. The dividend yield of Republic Services Inc stocks is 3.3%. Republic Services Inc had an annual average earning growth of 11.4% over the past 10 years. GuruFocus rated Republic Services Inc the business predictability rank of 4.5-star.
Recycling commodities decreased revenue by 2.0% and 1.3%, respectively, primarily due to the change in the market price of materials. Average prices for old corrugated cardboard (OCC) for the three and nine months ended September 30, 2012 were $110.13 and $127.89 per ton versus $172.57 and $165.04 per ton for the comparable 2011 periods, a decrease of $62.44 and $37.15 per ton or 36.2% and 22.5%, respectively. Average prices of old newspaper (ONP) for the three and nine months ended September 30, 2012 were $92.45 and $104.46 per ton versus $152.93 and $150.59 per ton for the comparable 2011 periods, a decrease of $60.48 and $46.13 per ton or 39.5% and 30.6%, respectively. The declines in prices were partially offset by increased volumes processed.
Our fuel costs in aggregate dollars decreased $1.0 million during the three months ended September 30, 2012 versus the comparable 2011 period due to lower fuel consumption levels. For the nine months ended September 30, 2012, our fuel costs in aggregate dollars and as a percentage revenue increased $7.3 million and 0.2% versus the comparable 2011 period primarily due to higher prices. Average fuel costs per gallon for the three months ended September 30, 2012 were $3.94 versus $3.87 for the comparable 2011 period, an increase of $0.07 or 1.8%. Average fuel costs per gallon for the nine months ended September 30, 2012 were $3.95 versus $3.84 for the comparable 2011 period, an increase of $0.11 or 2.9%.
Accretion expenses were $19.7 million and $59.1 million or, as a percentage of revenue, 0.9% and 1.0% for the three and nine months ended September 30, 2012, respectively, versus $19.4 million and $58.6 million or, as a percentage of revenue, 0.9% and 1.0% for the comparable 2011 periods. The amounts have remained relatively unchanged as our asset retirement obligations remained relatively consistent period over period.
During the three and nine months ended September 30, 2012, the corporate entities had operating losses of $101.6 million and $201.1 million, respectively, versus $58.3 million and $182.9 million for the comparable 2011 periods. Operating losses for the three and nine months ended September 30, 2012 were favorably impacted by lower management incentive pay and consulting expenses. These favorable adjustments were offset by unfavorable remediation adjustments due to $37.1 million charge recorded in connection with environmental conditions at our closed disposal facility in Missouri and adjustments to landfill amortization expense totaling $10.0 million for asset retirement obligations at other closed landfills for the nine months ended September 30, 2012. In addition, during the current quarter we recorded a charge to earnings of $31 million for our partial withdrawal from Central States with respect to union employees at our Danville, Illinois and Dayton, Ohio facilities. Corporate expenses also include general and administrative salary and benefit related expenses, legal and professional fees as well as other expenses.
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Republic Services Inc has a market cap of $10.31 billion; its shares were traded at around $28.3 with a P/E ratio of 13.9 and P/S ratio of 1.3. The dividend yield of Republic Services Inc stocks is 3.3%. Republic Services Inc had an annual average earning growth of 11.4% over the past 10 years. GuruFocus rated Republic Services Inc the business predictability rank of 4.5-star.
Highlight of Business Operations:
Revenue for the nine months ended September 30, 2012 decreased to $6,089.9 million compared to $6,167.7 million for the same period in 2011. This change in revenue is due to increases in core price of 0.7% and acquisitions, net of divestitures of 0.4% more than offset by decreases in volume of 1.1% and recycling commodities of 1.3%. Fuel surcharges were flat versus the comparable 2011 period.Recycling commodities decreased revenue by 2.0% and 1.3%, respectively, primarily due to the change in the market price of materials. Average prices for old corrugated cardboard (OCC) for the three and nine months ended September 30, 2012 were $110.13 and $127.89 per ton versus $172.57 and $165.04 per ton for the comparable 2011 periods, a decrease of $62.44 and $37.15 per ton or 36.2% and 22.5%, respectively. Average prices of old newspaper (ONP) for the three and nine months ended September 30, 2012 were $92.45 and $104.46 per ton versus $152.93 and $150.59 per ton for the comparable 2011 periods, a decrease of $60.48 and $46.13 per ton or 39.5% and 30.6%, respectively. The declines in prices were partially offset by increased volumes processed.
Our fuel costs in aggregate dollars decreased $1.0 million during the three months ended September 30, 2012 versus the comparable 2011 period due to lower fuel consumption levels. For the nine months ended September 30, 2012, our fuel costs in aggregate dollars and as a percentage revenue increased $7.3 million and 0.2% versus the comparable 2011 period primarily due to higher prices. Average fuel costs per gallon for the three months ended September 30, 2012 were $3.94 versus $3.87 for the comparable 2011 period, an increase of $0.07 or 1.8%. Average fuel costs per gallon for the nine months ended September 30, 2012 were $3.95 versus $3.84 for the comparable 2011 period, an increase of $0.11 or 2.9%.
Accretion expenses were $19.7 million and $59.1 million or, as a percentage of revenue, 0.9% and 1.0% for the three and nine months ended September 30, 2012, respectively, versus $19.4 million and $58.6 million or, as a percentage of revenue, 0.9% and 1.0% for the comparable 2011 periods. The amounts have remained relatively unchanged as our asset retirement obligations remained relatively consistent period over period.
During the three and nine months ended September 30, 2012, the corporate entities had operating losses of $101.6 million and $201.1 million, respectively, versus $58.3 million and $182.9 million for the comparable 2011 periods. Operating losses for the three and nine months ended September 30, 2012 were favorably impacted by lower management incentive pay and consulting expenses. These favorable adjustments were offset by unfavorable remediation adjustments due to $37.1 million charge recorded in connection with environmental conditions at our closed disposal facility in Missouri and adjustments to landfill amortization expense totaling $10.0 million for asset retirement obligations at other closed landfills for the nine months ended September 30, 2012. In addition, during the current quarter we recorded a charge to earnings of $31 million for our partial withdrawal from Central States with respect to union employees at our Danville, Illinois and Dayton, Ohio facilities. Corporate expenses also include general and administrative salary and benefit related expenses, legal and professional fees as well as other expenses.
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