EX-99.2 3 exhibit992q42018.htm EXHIBIT 99.2 Exhibit

EXHIBIT 99.2
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Republic Services, Inc. Unaudited Supplemental Schedules

The following is a pro forma presentation of our 2017 financial results had we adopted the new revenue recognition standard as of January 1, 2017. Tables may not sum due to rounding.
REVENUE
The following tables reflect our total revenue by line of business for the three months and years ended December 31, 2018 and 2017:
 
 
Three Months Ended December 31,
 
 
 
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
 
Collection:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
$
563.7

 
22.3
%
 
$
556.2

 
22.6
%
 
$
7.5

 
(0.3
)
%
 
Small-container
 
772.7

 
30.5
 
 
743.6

 
30.2
 
 
29.1

 
0.3

 
 
Large-container
 
550.3

 
21.8
 
 
516.1

 
20.9
 
 
34.2

 
0.9

 
 
Other
 
11.2

 
0.4
 
 
12.0

 
0.5
 
 
(0.8
)
 
(0.1
)
 
 
Total collection
 
1,897.9

 
75.0
 
 
1,827.9

 
74.2
 
 
70.0

 
0.8

 
 
Transfer
 
312.1

 
 
 
 
296.5

 
 
 
 
15.6

 
 
 
 
Less: intercompany
 
(177.3
)
 
 
 
 
(167.8
)
 
 
 
 
(9.5
)
 
 
 
 
Transfer, net
 
134.8

 
5.3
 
 
128.7

 
5.2
 
 
6.1

 
0.1

 
 
Landfill
 
571.0

 
 
 
 
569.2

 
 
 
 
1.8

 
 
 
 
Less: intercompany
 
(253.3
)
 
 
 
 
(244.7
)
 
 
 
 
(8.6
)
 
 
 
 
Landfill, net
 
317.7

 
12.6
 
 
324.5

 
13.2
 
 
(6.8
)
 
(0.6
)
 
 
Energy services
 
45.1

 
1.8
 
 
45.1

 
1.8
 
 
—

 
—

 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recycling processing and
commodity sales
 
78.0

 
3.1
 
 
87.7

 
3.6
 
 
(9.7
)
 
(0.5
)
 
 
Other non-core
 
56.5

 
2.2
 
 
51.3

 
2.0
 
 
5.2

 
0.2

 
 
Total other
 
134.5

 
5.3
 
 
139.0

 
5.6
 
 
(4.5
)
 
(0.3
)
 
 
Total revenue
 
$
2,530.0

 
100.0
%
 
$
2,465.2

 
100.0
%
 
$
64.8

 
—

%
 

1


 
 
Years Ended December 31,
 
 
 
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
 
Collection:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
$
2,235.1

 
22.3
%
 
$
2,237.2

 
23.2
%
 
$
(2.1
)
 
(0.9
)
%
 
Small-container
 
3,057.5

 
30.5
 
 
2,930.0

 
30.4
 
 
127.5

 
0.1

 
 
Large-container
 
2,181.1

 
21.7
 
 
2,063.2

 
21.4
 
 
117.9

 
0.3

 
 
Other
 
43.8

 
0.4
 
 
44.0

 
0.5
 
 
(0.2
)
 
(0.1
)
 
 
Total collection
 
7,517.5

 
74.9
 
 
7,274.4

 
75.5
 
 
243.1

 
(0.6
)
 
 
Transfer
 
1,243.9

 
 
 
 
1,183.1

 
 
 
 
60.8

 
 
 
 
Less: intercompany
 
(706.4
)
 
 
 
 
(682.8
)
 
 
 
 
(23.6
)
 
 
 
 
Transfer, net
 
537.5

 
5.4
 
 
500.3

 
5.2
 
 
37.2

 
0.2

 
 
Landfill
 
2,291.7

 
 
 
 
2,206.9

 
 
 
 
84.8

 
 
 
 
Less: intercompany
 
(1,020.8
)
 
 
 
 
(985.0
)
 
 
 
 
(35.8
)
 
 
 
 
Landfill, net
 
1,270.9

 
12.7
 
 
1,221.9

 
12.7
 
 
49.0

 
—

 
 
Energy services
 
194.7

 
1.9
 
 
147.3

 
1.5
 
 
47.4

 
0.4

 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recycling processing and
commodity sales
 
298.0

 
3.0
 
 
312.8

 
3.2
 
 
(14.8
)
 
(0.2
)
 
 
Other non-core
 
222.3

 
2.1
 
 
195.3

 
1.9
 
 
27.0

 
0.2

 
 
Total other
 
520.3

 
5.1
 
 
508.1

 
5.1
 
 
12.2

 
—

 
 
Total revenue
 
$
10,040.9

 
100.0
%
 
$
9,652.0

 
100.0
%
 
$
388.9

 
—

%
 
COST OF OPERATIONS
The following tables summarize the major components of our cost of operations for the three months and years ended December 31, 2018 and 2017:
 
 
Three Months Ended December 31,
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
Labor and related benefits
 
$
540.1

 
21.3

%
 
$
524.4

 
21.3

%
 
$
15.7

 
—

%
Transfer and disposal costs
 
211.5

 
8.4

 
 
197.3

 
8.0

 
 
14.2

 
0.4

 
Maintenance and repairs
 
244.3

 
9.7

 
 
237.4

 
9.6

 
 
6.9

 
0.1

 
Transportation and subcontract costs
 
165.3

 
6.5

 
 
153.7

 
6.2

 
 
11.6

 
0.3

 
Fuel
 
101.7

 
4.0

 
 
94.8

 
3.8

 
 
6.9

 
0.2

 
Disposal fees and taxes
 
81.7

 
3.2

 
 
78.7

 
3.2

 
 
3.0

 
—

 
Landfill operating costs
 
72.3

 
2.9

 
 
56.6

 
2.3

 
 
15.7

 
0.6

 
Risk management
 
57.4

 
2.3

 
 
50.5

 
2.1

 
 
6.9

 
0.2

 
Other
 
91.4

 
3.6

 
 
106.1

 
4.3

 
 
(14.7
)
 
(0.7
)
 
Subtotal
 
1,565.7

 
61.9

 
 
1,499.5

 
60.8

 
 
66.2

 
1.1

 
Bridgeton insurance recovery
 
(40.0
)
 
(1.6
)
 
 
—

 
—

 
 
(40.0
)
 
(1.6
)
 
Total cost of operations
 
$
1,525.7

 
60.3

%
 
$
1,499.5

 
60.8

%
 
$
26.2

 
(0.5
)
%

2


 
 
Years Ended December 31,
 
 
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
Labor and related benefits
 
$
2,144.3

 
21.3

%
 
$
2,027.2

 
21.0

%
 
$
117.1

 
0.3

%
Transfer and disposal costs
 
829.3

 
8.3

 
 
795.9

 
8.3

 
 
33.4

 
—

 
Maintenance and repairs
 
986.6

 
9.8

 
 
940.2

 
9.7

 
 
46.4

 
0.1

 
Transportation and subcontract costs
 
647.6

 
6.4

 
 
585.8

 
6.1

 
 
61.8

 
0.3

 
Fuel
 
391.4

 
3.9

 
 
349.8

 
3.6

 
 
41.6

 
0.3

 
Disposal fees and taxes
 
322.0

 
3.2

 
 
311.6

 
3.2

 
 
10.4

 
—

 
Landfill operating costs
 
241.6

 
2.4

 
 
220.3

 
2.3

 
 
21.3

 
0.1

 
Risk management
 
217.9

 
2.2

 
 
212.6

 
2.2

 
 
5.3

 
—

 
Other
 
409.3

 
4.1

 
 
386.6

 
4.0

 
 
22.7

 
0.1

 
Subtotal
 
6,190.0

 
61.6

 
 
5,830.0

 
60.4

 
 
360.0

 
1.2

 
Bridgeton insurance recovery
 
(40.0
)
 
(0.4
)
 
 
—

 
—

 
 
(40.0
)
 
(0.4
)
 
Total cost of operations
 
$
6,150.0

 
61.2

%
 
$
5,830.0

 
60.4

%
 
$
320.0

 
0.8

%
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following tables summarize our selling, general and administrative expenses for the three months and years ended December 31, 2018 and 2017:
 
 
Three Months Ended December 31,
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
Salaries
 
$
181.4

 
7.1
%
 
$
179.3

 
7.3
%
 
$
2.1

 
(0.2
)
%
Provision for doubtful accounts
 
10.4

 
0.4
 
 
7.8

 
0.3
 
 
2.6

 
0.1

 
Other
 
80.7

 
3.2
 
 
87.1

 
3.5
 
 
(6.4
)
 
(0.3
)
 
Subtotal
 
272.5

 
10.7
 
 
274.2

 
11.1
 
 
(1.7
)
 
(0.4
)
 
Bridgeton insurance recovery related costs
 
12.0

 
0.5
 
 
—

 
—
 
 
12.0

 
0.5

 
Total selling, general and administrative expenses
 
$
284.5

 
11.2
%
 
$
274.2

 
11.1
%
 
$
10.3

 
0.1

%
 
 
Years Ended December 31,
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
Salaries
 
$
702.2

 
7.0

%
 
$
706.3

 
7.3

%
 
$
(4.1
)
 
(0.3
)
%
Provision for doubtful accounts
 
34.8

 
0.3

 
 
30.6

 
0.3

 
 
4.2

 
—

 
Other
 
310.5

 
3.1

 
 
320.5

 
3.4

 
 
(10.0
)
 
(0.3
)
 
Subtotal
 
1,047.5

 
10.4

 
 
1,057.4

 
11.0

 
 
(9.9
)
 
(0.6
)
 
Bridgeton insurance recovery related costs
 
12.0

 
0.1

 
 
—

 
—

 
 
12.0

 
0.1

 
Total selling, general and administrative expenses
 
$
1,059.5

 
10.5

%
 
$
1,057.4

 
11.0

%
 
$
2.1

 
(0.5
)
%

3


ADJUSTED EBITDA
The following tables summarize Adjusted EBITDA, which is not a measure determined in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), for the three months and years ended December 31, 2018 and 2017:
 
 
Three Months Ended December 31,
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
Adjusted EBITDA
 
$
692.2

 
27.4

%
 
$
694.8

 
28.2

%
 
$
(2.6
)
 
(0.8
)
%
 
 
Years Ended December 31,
 
 
 
 
 
 
2018
 
 
2017
 
 
Change
 
 
 
 
 
 
 
 
Proforma
 
 
 
 
 
 
Adjusted EBITDA
 
$
2,809.1

 
28.0

%
 
$
2,772.9

 
28.7

%
 
$
36.2

 
(0.7
)
%
REVENUE
The following table reflects our total revenue by line of business for 2017:
 
 
Proforma
 
 
 
Three Months Ended
 
 
 
 
 
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
2017
 
Collection:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
$
552.2

 
24.0
%
 
$
564.4

 
23.3
%
 
$
564.3

 
22.9
%
 
$
556.2

 
22.6
%
 
$
2,237.2

 
23.2
%
Small-container
 
718.2

 
31.2
 
 
731.7

 
30.2
 
 
736.5

 
29.9
 
 
743.6

 
30.2
 
 
2,930.0

 
30.4
 
Large-container
 
489.4

 
21.3
 
 
522.5

 
21.6
 
 
535.2

 
21.7
 
 
516.1

 
20.9
 
 
2,063.2

 
21.4
 
Other
 
9.7

 
0.4
 
 
10.7

 
0.4
 
 
11.6

 
0.5
 
 
12.0

 
0.5
 
 
44.0

 
0.5
 
Total collection
 
1,769.5

 
76.9
 
 
1,829.3

 
75.5
 
 
1,847.6

 
75.0
 
 
1,827.9

 
74.2
 
 
7,274.4

 
75.5
 
Transfer
 
274.9

 
 
 
 
305.1

 
 
 
 
306.6

 
 
 
 
296.5

 
 
 
 
1,183.1

 
 
 
Less: intercompany
 
(165.6
)
 
 
 
 
(176.2
)
 
 
 
 
(173.1
)
 
 
 
 
(167.8
)
 
 
 
 
(682.8
)
 
 
 
Transfer, net
 
109.3

 
4.8
 
 
128.9

 
5.3
 
 
133.5

 
5.4
 
 
128.7

 
5.2
 
 
500.3

 
5.2
 
Landfill
 
500.6

 
 
 
 
565.3

 
 
 
 
571.7

 
 
 
 
569.2

 
 
 
 
2,206.9

 
 
 
Less: intercompany
 
(232.3
)
 
 
 
 
(255.4
)
 
 
 
 
(252.6
)
 
 
 
 
(244.7
)
 
 
 
 
(985.0
)
 
 
 
Landfill, net
 
268.3

 
11.7
 
 
309.9

 
12.8
 
 
319.1

 
13.0
 
 
324.5

 
13.2
 
 
1,221.9

 
12.7
 
Energy services
 
26.9

 
1.2
 
 
35.8

 
1.5
 
 
39.5

 
1.6
 
 
45.1

 
1.8
 
 
147.3

 
1.5
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recycling processing and commodity sales
 
78.7

 
3.4
 
 
73.3

 
3.0
 
 
73.1

 
3.0
 
 
87.7

 
3.6
 
 
312.8

 
3.2
 
Other non-core
 
45.9

 
2.0
 
 
47.1

 
1.9
 
 
51.1

 
2.0
 
 
51.3

 
2.0
 
 
195.3

 
1.9
 
Total other
 
124.6

 
5.4
 
 
120.4

 
4.9
 
 
124.2

 
5.0
 
 
139.0

 
5.6
 
 
508.1

 
5.1
 
Total revenue
 
$
2,298.6

 
100.0
%
 
$
2,424.3

 
100.0
%
 
$
2,463.9

 
100.0
%
 
$
2,465.2

 
100.0
%
 
$
9,652.0

 
100.0
%

4


COST OF OPERATIONS
The following table summarizes the major components of our cost of operations for 2017:
 
 
Proforma
 
 
 
Three Months Ended
 
 
 
 
 
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
2017
 
Labor and related benefits
 
$
496.7

 
21.6

%
 
$
498.6

 
20.6

%
 
$
507.6

 
20.6

%
 
$
524.4

 
21.3

%
 
$
2,027.2

 
21.0

%
Transfer and disposal costs
 
187.3

 
8.1

 
 
207.3

 
8.6

 
 
204.0

 
8.3

 
 
197.3

 
8.0

 
 
795.9

 
8.3

 
Maintenance and repairs
 
226.7

 
9.9

 
 
236.1

 
9.7

 
 
240.0

 
9.7

 
 
237.4

 
9.6

 
 
940.2

 
9.7

 
Transportation and subcontract costs
 
134.0

 
5.8

 
 
144.9

 
6.0

 
 
153.1

 
6.2

 
 
153.7

 
6.2

 
 
585.8

 
6.1

 
Fuel
 
84.5

 
3.7

 
 
83.2

 
3.4

 
 
87.2

 
3.5

 
 
94.8

 
3.8

 
 
349.8

 
3.6

 
Disposal fees and taxes
 
71.3

 
3.1

 
 
80.6

 
3.3

 
 
81.0

 
3.3

 
 
78.7

 
3.2

 
 
311.6

 
3.2

 
Landfill operating costs
 
53.1

 
2.3

 
 
57.1

 
2.4

 
 
53.6

 
2.2

 
 
56.6

 
2.3

 
 
220.3

 
2.3

 
Risk management
 
47.5

 
2.1

 
 
56.0

 
2.3

 
 
58.6

 
2.4

 
 
50.5

 
2.1

 
 
212.6

 
2.2

 
Other
 
90.0

 
3.9

 
 
92.4

 
3.8

 
 
98.1

 
4.0

 
 
106.1

 
4.3

 
 
386.6

 
4.0

 
Total cost of operations
 
$
1,391.1

 
60.5

%
 
$
1,456.2

 
60.1

%
 
$
1,483.2

 
60.2

%
 
$
1,499.5

 
60.8

%
 
$
5,830.0

 
60.4

%
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table summarizes our selling, general and administrative expenses for 2017:
 
 
Proforma
 
 
 
 
Three Months Ended
 
 
 
 
 
 
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
2017
 
 
Salaries
 
$
176.7

 
7.7

%
 
$
173.5

 
7.1

%
 
$
176.8

 
7.2

%
 
$
179.3

 
7.3

%
 
$
706.3

 
7.3

%
 
Provision for doubtful accounts
 
5.4

 
0.2

 
 
9.4

 
0.4

 
 
8.0

 
0.3

 
 
7.8

 
0.3

 
 
30.6

 
0.3

 
 
Other
 
71.4

 
3.1

 
 
80.0

 
3.3

 
 
81.9

 
3.3

 
 
87.1

 
3.5

 
 
320.5

 
3.4

 
 
Total selling, general and administrative expenses
 
$
253.5

 
11.0

%
 
$
262.9

 
10.8

%
 
$
266.7

 
10.8

%
 
$
274.2

 
11.1

%
 
$
1,057.4

 
11.0

%
 
ADJUSTED EBITDA
The following table summarizes Adjusted EBITDA, which is not a measure determined in accordance with U.S. GAAP, for 2017:
 
 
Proforma
 
 
 
Three Months Ended
 
 
 
 
 
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
2017
 
Adjusted EBITDA
 
$
654.0

 
28.5

%
 
$
707.4

 
29.2

%
 
$
716.8

 
29.1

%
 
$
694.8

 
28.2

%
 
$
2,772.9

 
28.7

%


5