For the year ended December 31, 2020, net income was $967.2 million, or $3.02 per diluted share, versus $1,073.3 million, or $3.33 per diluted share, for 2019. On an adjusted basis, net income for the year ended December 31, 2020 was $1,137.8 million, or $3.56 per diluted share, versus $1,062.9 million, or $3.30 per diluted share, for 2019.

"Last year proved the resiliency of our business model and power of our portfolio. In the face of adversity, the Republic Services team remained focused on our priorities — putting our people first, keeping our facilities running smoothly and taking care of our customers," said Donald W. Slager, chief executive officer. "Republic again proved its strength, resolve and ability to persevere through a challenging environment. As a result, we outperformed our adjusted earnings and free cash flow targets and created sustainable value for our shareholders."

Fourth Quarter and Full-Year Highlights:

Fourth quarter EPS was $0.74 per share, and adjusted EPS, a non-GAAP measure, was $1.00 per share, an increase of 14 percent over the prior year.

Full-year EPS was $3.02 per share, and adjusted EPS was $3.56 per share, an increase of 8 percent over the prior year. Adjusted EPS exceeded the Company's full-year guidance.

Full-year cash provided by operating activities was $2.47 billion and adjusted free cash flow, a non-GAAP measure, was $1.24 billion. Adjusted free cash flow exceeded the Company's full-year guidance.

Republic invested $613 million in acquisitions, or $580 million net of divestitures.

Full-year cash returned to shareholders through dividends and share repurchases was $621 million and total shareholder return was 10 percent.

Full-year core price increased revenue by 4.8 percent. Core price consisted of 5.6 percent in the open market and 3.4 percent in the restricted portion of the business.

Full-year revenue growth from average yield was 2.6 percent.

Full-year adjusted EBITDA, a non-GAAP measure, was $2.99 billion and adjusted EBITDA margin was 29.4 percent, an increase of 130 basis points over the prior year.

The Company's average recycled commodity price per ton sold during the fourth quarter was $110. This represents an increase of $44 per ton versus the prior year.

Republic continued to convert CPI-based contracts to more favorable pricing mechanisms for the annual price adjustment. The Company now has approximately $874 million in annual revenue, or 35 percent of its legacy $2.5 billion CPI-based book of business, tied to the water-sewer-trash index or a fixed-rate increase of 3 percent or greater.

2021 Financial Guidance

Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2021. Please refer to the Information Regarding Forward-Looking Statements section of this document.

Full-year 2021 financial guidance is as follows:

Adjusted Diluted Earnings per Share: The Company expects adjusted diluted earnings per share to be in the range of $3.65 to $3.73. Detail relating to the computation of adjusted diluted earnings per share is contained in the Reconciliation of 2021 Financial Guidance section of this document.

Adjusted Free Cash Flow: Republic expects adjusted free cash flow to be in the range of $1,300 million to $1,375 million. Detail relating to the computation of adjusted free cash flow is contained in the Reconciliation of 2021 Financial Guidance section of this document.

Revenue: Republic expects an increase in average yield of approximately 2.5% and volume growth to be in the range of 1.5% to 2.0%.

Adjusted EBITDA Margin: Republic expects adjusted EBITDA margin of approximately 29.5%.

Acquisitions & Investments: Republic expects to invest approximately $600 million in acquisitions and $125 million in solar energy investments that qualify for tax credits.

"We expect to achieve the highest levels of adjusted earnings and free cash flow in the Company's history in 2021," added Mr. Slager. "We feel confident about our ability to deliver these strong results because of the firm foundation in place, the broad capabilities that have been developed and the positive momentum in the business heading into the new year."

Company Declares Quarterly Dividend

Republic previously announced that its Board of Directors declared a regular quarterly dividend of $0.425 per share for stockholders of record on April 1, 2021. The dividend will be paid on April 15, 2021.

Presentation of Certain Non-GAAP Measures

Adjusted diluted earnings per share, adjusted net income, adjusted EBITDA, adjusted EBITDA margin and adjusted free cash flow are described in the Reconciliation of Certain Non-GAAP Measures section of this document. The adjusted diluted earnings per share and adjusted free cash flow related to the 2021 financial guidance are described in the Reconciliation of 2021 Financial Guidance section of this press release.

• Republic Services Inc