Republic Services (NYSE: RSG) reported Q1 EPS of $0.77, $0.01 better than the analyst estimate of $0.76. Revenue for the quarter came in at $2.55 billion versus the consensus estimate of $2.51 billion.

First-Quarter Highlights:

• EPS was $0.77 per share. Adjusted EPS, a non-GAAP measure, was $0.77 per share, an increase of 5 percent over the prior year.
• Cash provided by operating activities was $570 million, an increase of 3 percent versus the prior year. Adjusted free cash flow, a non-GAAP measure, was $267 million, which decreased versus the prior year primarily due to the timing of capital expenditures and cash taxes.
• Cash flow invested in acquisitions was $63 million. The annual revenue acquired was approximately $30 million.
• Total cash returned to shareholders through dividends and share repurchases was $228 million.
• As of March 31, 2020, Republic had $1.9 billion of available liquidity, including $1.6 billion of available borrowing capacity under its credit facilities and $282 million of cash.
• Core price increased revenue by 5.2 percent, and average yield was 2.9 percent.
• Adjusted EBITDA, a non-GAAP measure, was $723 million and adjusted EBITDA margin was 28.3 percent of revenue, consistent with the prior year. Adjusted EBITDA margin was impacted by the following: a 20 basis point headwind from lower recycled commodity prices, a 50 basis point headwind from an additional workday in the quarter relative to the prior year, and a 40 basis point benefit from lower fuel prices and CNG tax credits. Normalizing for these items, adjusted EBITDA margin increased 30 basis points.
• The Company continued to convert CPI-based contracts to more favorable pricing mechanisms for the annual price adjustment. The Company now has approximately $815 million in annual revenue, or 33 percent of its approximately $2.5 billion CPI-based book of business, tied to either a waste-related index or a fixed-rate increase of 3 percent or greater.
• The Company\'s average recycled commodity price per ton sold in the first quarter was $76. This represents a sequential increase from the fourth quarter of $10 per ton and a decrease versus the prior year of $17 per ton.
• Republic was named to the elite 2020 World\'s Most Ethical Companies List® by Ethisphere, a global leader in defining and advancing the standards of ethical business practices.
• The Company launched its $20 million "Committed to Serve" initiative. The initiative is designed to help frontline employees, customers and local communities. For more information, visit RepublicServices.com/CommittedToServe.

Business Update

The Company is suspending its full-year 2020 detailed financial guidance. At this time, the full impact of the COVID-19 pandemic on the U.S. economy remains uncertain, and the Company has limited visibility into the timing and sequencing of increases in economic activity in the markets where it operates.

"We had a strong start to the year. Despite the impact of the pandemic in March, we delivered solid first quarter results. We increased both revenue and adjusted EBITDA by 3.4 percent and expanded underlying adjusted EBITDA margin by 30 basis points," said Mr. Slager. "While the future remains uncertain, we are beginning to see signs of increasing economic activity. We remain confident in our ability to quickly adjust our costs and capital expenditures to align with changes in demand. Assuming the economy continues to recover, and GDP sequentially improves in the third and fourth quarter as currently predicted by economists, we expect to generate over $1 billion of adjusted free cash flow in 2020."

For earnings history and earnings-related data on Republic Services (RSG) click here.