Republic Services (RSG) has reported 60.19 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $85.60 million, or $0.25 a share in the quarter, compared with $215 million, or $0.61 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $212.60 million, or $0.62 a share compared with $184.70 million or $0.53 a share, a year ago.
Revenue during the quarter went up marginally by 2.79 percent to $2,409.30 million from $2,344 million in the previous year period. Gross margin for the quarter contracted 198 basis points over the previous year period to 38.71 percent. Total expenses were 82.65 percent of quarterly revenues, up from 81.10 percent for the same period last year. That has resulted in a contraction of 155 basis points in operating margin to 17.35 percent.
Operating income for the quarter was $417.90 million, compared with $442.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $697.20 million compared with $659.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 79 basis points in the quarter to 28.94 percent from 28.14 percent in the last year period.
"Our third-quarter performance underscores our ability to profitably grow our business, expand margins, increase earnings and free cash flow and efficiently return cash to our shareholders," said Donald W. Slager, president and chief executive officer. "Continued strength in our business and a favorable tax rate drove results that exceeded our expectations during the quarter. Given our solid results, we are updating our guidance to reflect our expected outperformance for the year."
For financial year 2016, the company projects diluted earnings per share to be in the range of $1.75 to $1.76, the company projects diluted earnings per share to be in the range of $2.19 to $2.20 on adjusted basis.
Operating cash flow improves marginallyRepublic Services has generated cash of $1,359.60 million from operating activities during the nine month period, up 2.65 percent or $35.10 million, when compared with the last year period. The company has spent $752.40 million cash to meet investing activities during the nine month period as against cash outgo of $1,243.20 million in the last year period. It has incurred net capital expenditure of $731.30 million on net basis during the nine month period, up 2.29 percent or $16.40 million from year ago period.
The company has spent $584.60 million cash to carry out financing activities during the nine month period as against cash outgo of $54 million in the last year period.
Cash and cash equivalents stood at stood at $55 million as at Sep. 30, 2016.
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