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Republic Services Inc Class A RSG
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/25/2013

Operator: Good afternoon and welcome to the First Quarter 2013 Call for Investors in Republic Services. Republic Services is traded on the New York Stock Exchange under the symbol RSG.

Your host for today's call are Don Slager, President and CEO; Glenn Culpepper, CFO; and Ed Lang, Senior Vice President and Treasurer. Today's call is being recorded and participants are on a listen-only mode. There will be a question-and-answer session following Republic's summary of quarterly earnings.

I would now like to turn the call over to Mr. Lang. Good afternoon, Mr. Lang.

Ed Lang - SVP, Treasury and Risk Management: Thank you, Brian. Welcome, and good afternoon, and thank you for joining us. This is Ed Lang and I would like to welcome everyone to Republic Services' first quarter 2013 conference call. Don Slager, our CEO and Glenn Culpepper, our CFO, are joining me as we discuss first quarter 2013 performance.

Before we get started, I would like to take a moment to remind everyone that some of the information that we discuss on today's call contains forward-looking statements, which involve risks and uncertainties and maybe materially different from actual results. Our SEC filings discuss factors that would cause actual results to differ materially from expectations.

The material that we discuss today is time-sensitive. If in the future you listen to a rebroadcast or recording of this conference call, you should be sensitive to the date of the original call, which is April 25, 2013. Please note that this call is the property of Republic Services, Inc. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Republic Services is strictly prohibited.

I want to point out that our SEC filings, our earnings press release, which includes GAAP reconciliation tables, and a discussion of business activities, along with the recording of this call, are all available on Republic's website, at republicservices.com. And finally, I want to remind you that Republic's management team routinely participates in investor conferences. When presentations are scheduled, the dates and times are posted on our website along with instructions for listening to the live webcast of the event.

With that, I would like to turn the call over to Don.

Don Slager - President and CEO: Thanks Ed. Good afternoon, everyone, and thank you for joining us as we discuss Republic Services' first quarter 2013 performance. I'm pleased with our first quarter performance, which reflects an overall improvement in business conditions. We saw sequential increases in core pricing, volume, and margins, which drove our strong Q1 results. We continue to profitably grow our core business as evidenced by year-over-year increases in revenue, earnings and free cash flow. Some of the financial and operational highlights during the quarter include; adjusted earnings per share of $0.46 – this represents an increase of $0.08 or approximately 21% versus the prior year; adjusted free cash flow of $213 million, which was in line with our expectations; adjusted EBITDA margin expanded 40 basis points, reflecting the benefit of our field and corporate office reorganization completed in the fourth quarter 2012. Q1 core price was 1.2%. This represents the third straight quarter of core price improvement. Net price to customer, defined as price increases less rollbacks was 3.2% in the first quarter. Based on Q1 industry results reported to-date, our net price to customer performance is the highest in the industry.

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