Q3 2020 Republic Services Inc Earnings Call
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Good afternoon, and welcome to the Republic Services' third quarter 2020 Investor Conference call.
Republic services is traded on the New York stock exchange under the symbol R. S. G <unk>.
All participants in todays call will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
The date time and presentations are posted on our website with that I would like to turn the call over to them.
Thanks, Stacey good afternoon, everyone and thank you for joining US we are extremely pleased with our third quarter results, which clearly demonstrates the strength and resiliency of our business.
Nearly $500 million to our shareholders through dividends and share repurchases are bored recently approved a 2 billion dollar three year share repurchase authorization, which will begin in January 2021. This is consistent with prior practice.
Average yield was 2.6%.
Average yield measures the change in average price per unit and takes into account the impact of customer churn.
Assistance between the permanent and temporary portions of this business.
By September large container volume was down 3.7% versus the prior year.
Total landfill volumes decreased 3.1% versus the prior year.
The annual revenue or 34% of our CPI based contracts tied to a waste related index or a fixed rate increase of 3% or greater.
From an operational perspective, we effectively managed costs to meet the change an underlying demand for service.
Thanks to the teams unwavering efforts, we reduced cost to more than offset the decline in revenue.
This resulted in a $41 million increase in adjusted EBITDA and margin expansion of 230 basis points.
This was enabled in part by arrived platform, which allows us to a dynamically adjust our routes.
We are now 97% complete with the implementation of the rise platform across the organization.
All operating expenses improved compared to the prior year as.
Additionally, SGN as a percent of revenue with 10% an improvement of 40 basis points over the prior year.
Our performance reflects cost controls put in place and reductions in non essential spending while continuing to make investments for the future to ensure the long term health of our business.
Insurers, which is an increase from our prior guidance and relatively consistent with the level of spend we contemplated in our original guidance back in February.
By approximately $22 million per year, which will begin to realize in the fourth quarter.
Cash flow.
Historic free cashflow conversion relative to your largest P. R. What should we be thinking about in terms of catching that up.
Hi, this is done.
Yes.
Is the short answer.
On a seasonality third quarter is typically our high point in terms of margin so you're going to see some natural regression is you get seasonality in the business and to your point during the pandemic. There have been a few tailwinds just in terms of productivity would lack of traffic as well as lower container weights and small container while maintaining.
That revenue profile. So we will certainly help us and we expect to dissipate. Some as we go forward that being said we've learned a lot of things in the pandemic and do believe we found a different level of performance.
In terms of productivity and safety, which is associated to a risk costs and some of that is the pandemic and some of that is just the return on the investment we've made over the years and digital operations and.
Our operating discipline and those things are all starting to accrue to the bottom line and again, we expect to have line of sight to a 30% margin over the next few years on a sustainable basis.
Great. Thank you so much.
The next question will be from Tyler Brown with Raymond James. Please go ahead.
Hey, good afternoon guys.
Hi, Tyler.
Hey, Brian so.
Lots of info in the prepared remarks, but I just want to be clear. So in that 2020 guide a free cash flow, you're assuming a $120 million payroll deferral benefit this year.
So recycling to point out we've talked a lot about getting to a a REIT pricing mechanism in that and then listen we've been heavy at the curve in the pandemic as people have sheltered in place and so the way. She has moved from small business to homes and we've got over 100 customers already that have given us price increases.
To reflect that elevated cost structure and we are relentless we're not going to stop continuing to.
After that price increase so business and there is some puts and takes any given quarter on one pricing.
Pits are the receptive given market, but our aspiration to.
Get a yield that better reflects our overall business mix and residential is an unrelenting and we'll continue to work with our municipal customers on that front.
Good resi margins go up.
They did.
Yes, okay.
Awesome. Thank you guys.
You bet.
The next question will be from Walter.
Franklin with RBC capital markets. Please go ahead.
Very much good afternoon, everyone.
So.
My first question here is on technology, obviously, you've made some significant and meaningful investments on the technology technological front.
So if we were to put it into three buckets is being kinda revenue generative as you provide a better service as a result of that technology.
Cost saving because you'd be becoming more efficient or or safety related. If you look at the you know a dollar spent last year in in technology, how would you bucket into those categories and what evidence say for revenue generative have you seen.
The success of of that technological spend.
There is much more to comment and that's why we're trying to accelerate that spent.
Okay, that's great color and my second follow up question here is on on the M&A environment can you speak a little bit about your pipeline I guess.
Specifically, whether there had been.
A degree of pull forward.
Of of M&A activity in advance of the election, and whether you think a low might be created here.
Post election, as a result of that pull forward.
Yes, there were certainly some accelerated activity to wanting deals to calls in a certain time period.
I think there are much less people who.
Wanted to sell because they thought there was going to be a certain.
Political risks and then therefore don't want a cell.
Because they see the election coming out in a different way than they expected.
People typically sell for structural events right. They haven't change in their life circumstances as a generational transition where the next generation doesn't want to run the business. There's some life changing event something happens that triggers people to sell and again, the political risk and what they think would be implications or our taxes.
Might accelerate timing, a month or two but that isn't really driving activity or experience.
So the pipeline as you see it really hasn't changed from October to December the pipeline has not changed that remains strong product. Okay. Appreciate department.
The next question will be from Kyle White Deutsche Bank. Please go ahead.
Hey, good afternoon hope everyone is doing well.
Focus on volume they are a bit better than I expected and better than your peers. Even your sequential improvement was better you also when the few calling for kind of gradual improvement here for the remainder of the year.
As others seem to be more flattish is there anything notable that is driving this relative to the others and just any high level of thoughts on the economy from your vantage point of views on different subsectors, you're going into pork Ya.
Yes, we see steady improvement puts and takes in different spots.
So if you dial in to any specific geography, right you might see some flatlining or if people have temporary shelter in place orders, even a slight pullback, but I think it's the power of the portfolio overall, both geographically and across business lines.
And again, we have a really strong special waste pipeline for the fourth quarter feel very good about that and we're just we're seeing steady improvements across the business I think we remain cautious in the sense that there's certainly still some uncertainty about where in a pandemic right.
Alright, and how the pandemic moves is on certain so we remain mindful and watchful of that but based on the trends, we're seeing we see pretty good progress momentum.
And that's accidental simply the one thing I think we've done well is we've been very engaged with our customers.
We have a sales team that is highly connected.
To meet their needs, which is if they need to die back service.
Well, we're diamondback service, but when they're ready to increased service right, we're connecting with them frequently to make sure that they are ready to ready to come back on line.
We moved our call centres from all in buildings to 98% work from home in about a 72 hour period without any drop in service and our performance metrics are as good or better than ever in that environment. So that's also enabled us and surf a customer and so let me in and the top line is better than than what people may have expected but.
Again.
The operation.
And it's been really strong right. So we talked for a long time about the strength of the company the strength of the team and we've talked about our resilience of the business model.
<unk> true, but what we're seeing now to Johns point is agility.
Right John mentioned, how quickly we adapted to new ways of working.
Adoption, how quickly we're changing to new user.
Using in adopting tools like the rise plan for and then momentum right. So we're all the investments all the efforts of the last.
Several years call a decade kind of compounding coming.
Coming together Kennedys breakdown moment with crazy backdrop of Covid, but.
All of that together bills this momentum through the year and cares is really well in the 2021.
Yeah. It's just a follow up I think you mentioned that you continue to see the biggest volume declines in education hospitality and I missed the third category, but is there any way to quantify your exposure to these kind of subsectors and how have they performed in.
On October relative to September.
In light of some of these you know.
Well the.
You know nonrecurring cost savings in 2020.
Yeah look I think you do have to take into consideration John mentioned it right. There are certainly some things that are happening in the macro environment right things that are helping productivity some of the lighter container weights. So there are some puts and takes but we do feel that 30% margin.
And improvement towards 30% margin is something that's in the near term right and it's going to be something that we're going to continue to move toward 21 might have a little bit that you have noise in it just because you have some of those macro benefits modulating, but after that certainly 30 plus basis points a year something thats certainly achievable.
We're on the cost.
Gotcha, all right great and.
Is there any reason to think price wont trend up next year I mean.
It was it was called out you know the the red the yield number was really.
Really a standout in the quarter you know does that give us some juice into next year I mean, what are the puts and takes there.
Through all these sort of chaos the market was very rational.
Right and Thats the backdrop.
Yes, excellent Super helpful summary, there and again nice work great.
Great. Thank you.
The next question will be from Jeff Goldstein with Morgan Stanley. Please go ahead.
Hey, good afternoon.
Good afternoon pair how you.
Can you just compare how you're thinking about the volume recoveries between both small container and large container at this point I know large container how larger initial drop and now they're both down about a similar rate in this quarter. So just going forward would you expect a large container recovery a pickup faster, especially given some tailwinds, we're seeing especially around housing or.
Would you expect a relatively in lockstep going forward.
Yes, so theres certainly I mean, when we look at single family housing starts and some of the strength that we've seen in some of those prints, Brian Weve had in our investor presentations, how that positively impacts our volumes generally about 12 months later, so we tend to lag, but the one thing when you take a look at small and large container remember a good portion of our large container busy.
This is permanent nature.
Right. So if you're kind of talking more about that the temporary portion of that which tends to be that the construction related and then some of the other event jobs, that's where you might see some acceleration on more on the event side, but that the permanent large container in the permanent small container tend to move at about the same rate yes.
I alluded to it just depends what happened with schools depends what happened with restaurants and.
Got to restaurants have gotten very innovative.
In the north in terms of outdoor dining and that will be more of a challenge as we move into the late fall winter season here. So there will be a few puts and takes that could impact us the next quarter or two in small container in terms of that trying to maybe a little bit less than the large container per but I don't think there'll be any fundamental differences Brian.
Sequential gas continues to quote suggest.
Okay that was all very helpful. And then on the leasing pledged to purchase 2500 electric trucks and I know you are few years away from actual integration of those vehicles, but can you just talk about how you view those trucks relative to diesel and see injury CNG and operations today and maybe any will it's gone we can think of and.
Financial benefit if any you'd be expecting or is it mostly just in environmental benefit from your current or just any thoughts there would be helpful.
Yes, no we're very bullish on electrification long term, we think thats the winning technology in this space because it's the only truly zero emissions option out there, but we've said all along it's going to be a challenge and take time, but we're going to have to we're making commitments in this space, because we need to innovate and helping elevate we've got.
Their relationships across the value chain right that we're showing a leadership position in that over time. We also have a fundamental belief that as something is going to be environmentally sustainable over time, it's got to be economically sustainable. So we don't expect to do this by reducing returns we expect overtime to enhance returns now there might be some puts and takes between.
Higher upfront Capex, and then lower operating cost through reduced fuel costs are reduced maintenance costs overtime, but again were very proactive in that space, but look where the seventh largest vocational fleet in the nation and to John's point now, where we are the right kind to compete to be innovating and to be pushing innovation.
Okay.
On onto the market is.
And again, we view when you get there those benefits accrue in large waste because you know Weve got 60000 trucks on the Street every day.
All very helpful. Thank you.
The next question is from Michael Hoffman with Stifel. Please go ahead.
Hi, Todd John Brian Stacy I hope everybody as well.
You have to specific my questions, but there's two I'd like to make sure I get everybody heard the answer correctly if you.
Bear with me my two specifics are.
160 basis points and solid waste improvement, if you thought about traffic and that type of productivity.
What's that give back out of the 160.
When we're all driving full time and.
You guys have.
Increased labor for that.
Yeah, Michael it's hard to.
We're looking at that right, it's hard to tease out exactly because we can we have a mix of two things going on one we've got.
Lower traffic patterns because of people sheltering in place and we also have a rollout of all of our digital tools driving higher productivity.
We hope to system, we're not going to sustain although we hope to sustain a lot of it on the productivity side and one of the things. We've seen is not a big difference between rural and urban market productivity.
All right. So we're seeing benefits in both but I would have expected to see if it was purely pandemic related a lot bigger lift for us in urban markets right and we're seeing benefits across the board. So can we go back to our path our plan to expand margins of a portion of that is capturing some of that productivity benefit going so look there is definitely some impact your pay.
Michael with traffic, but look the initial rollout of the rice platform is the foundational elements of rice the stuff. The team is working on now the the next the next thing is that they will layer in non once the platform is is rolled out an established is additive right. So there's there's going to be.
Layer after layer of additional feature benefiting capability.
On the digital platform, that's going to drive new margin expansion and and better operations better customer facing stuff.
Yes mortgage commission, our pricing tools you just.
Better see for operations. They joined we're talking about a couple of distance.
Yes, we've just.
Good.
The tablets in our truck drivers and giving our people the visibility both in the branches as well as.
The driver out communicating together right not talking seeing where those trucks are and so large container out for example will have seven movements in a day, it's about getting eight movements in a day in the same time period, while improving safety, while providing better customer service. So that's a very tangible example.
We're seeing those tools accrue to the bottom line.
Michael One thing I, just wanted to kind of clarify that too is that when when we talk about the 160 basis points, calling that the underlying business. That's not just solid waste that also includes the impact from environmental services. So the only thing that doesn't include of the 230 basis points total margin you mentioned that the impact at both net fuel and higher come.
Oddity prices had on margin expansion.
Okay, all right that helps and then.
The clarification question somebody asked something about margin and margin expansion and I was scribbling really fast.
I think you were expecting margins to expand next year, and maybe thirtys, but a great goal, but you're not giving a goal that you expect margins or expand has that.
Yes.
Well I was writing down it sounded like you are going to be flat.
No we expect margins to expand we're not giving a guide right.
On that topic, but we are expecting margins expand.
Expect to be able to raise this number by high single digit and still have all of that in front of you.
Yes, but we're not we're not going to change the the structural issue with legacy landfills right overall right I mean, they're going to have that costs, maybe somebody else doesn't have.
And.
Our our formula of returning cash to shareholders. The way, we do as a very it's a very.
Time tested formula right.
We're going to continue to invest in capital even through this tough time I mean look when we went through the great recession, we did stop investing in the business. We are strong enough cash flow to curious we continue to invest in fleet audio things.
Through this year, we didn't shut it down we actually said some cases accelerated.
Some of the spending and some of the digital tools and.
Yeah I mean.
We're very strongly focused on casual conversion as I said earlier, we're going to we're going to get ahead of that 45% and kind of curious into the northern 40% territory and that's why the same Michael as I made those comments about both the combination EBITDA margin expansion and being able to reduce X.
<unk> that combination is why we feel that there is going to be an accelerating a band here on free cash flow conversion to drive that free cash flow growth and look at the things that John and committed team is built momentum on I mean look at we talked already about.
The.
Changing the pricing mechanism on municipal right to a fair and equitable arrangement, that's underway recycling, making a lot of headway there and it's not just the recycling markets that are helping us right. They will but we're again, we're we're retooling that business right, making it again.
<unk> right that's happening.
Some pricing on the <unk> side for the.
Elevated waves right.
All of those things and then all all the underlying operational benefits I mean safety is a great story.
But.
Turnover is a great story engagements a great story all of those things adding up.
And those are all going to come to fruition I think regardless of Covid, and then covid sort of kick.
Keep this into another gear, we found new agility that we didn't have and made some other operational changes because we frankly had too and those are going to carry.
In the future periods.
Thank you very much.
The next question will come from global Nancy.
Please go ahead.
Thank you and good afternoon, everyone.
Last quarter, you mentioned that about 15% of your labor costs over time, and it was down 25% could you tell us by how much overtime was down year to year in the third quarter in October if you care to share that data.
In the third quarter down about 10% overtime hours year over year.
Okay.
And second I realize you're not giving fourthquarter guidance, but due to the ongoing recovery here in your current mix of business is it possible you might see lower than normal seasonality in in.
In the fourth quarter revenues based on.
And those realities.
Well, if you think about seasonality typically where you see it's an uptick in the in the second and primarily the third so from seasonal perspective, and you start to see it kind of come down in the fourth quarter sale. Your toughest bogey is generally the third quarter head from a year over year perspective, when you talk about seasonal volumes. So they are typically isn't something that.
Increases significantly in the fourth quarter from a volume perspective, when you look at Q3 to queue for except you might have some some other just recovery because certain sectors open up.
They broke maybe shutdown yeah, we might be an economic maybe construction in some flavor S. Yeah. Some of it is purely seasonal which is in the north there's construction activity that just doesn't happen because of the weather now there could be some special waste jobs that.
<unk> up for us that we would have had in the second or third quarter that I've, just got delayed and now that people have more clarity going forward.
They'll hit and we get we feel really good about that pipeline. So there should be some modest opportunities look normally seasonally Q threes, our strongest quarterback two's, our second strongest around four and one and then walked right. So we don't see certainly any headwinds as we look in the fourth quarter from a seasonal perspective year over year versus what we just went during the third quarter.
Thank you very much.
The next question is from Mike Synagogue with Bank of America. Please go ahead.
Hey, guys. Thanks for us squeezing squeezing in.
For for many years, we were hearing about you guys intentionally intentionally shedding business have recall there would be a lot of questions on while you're volumes for underperforming some peers.
I guess my question is one of your guys kind of through that intentional shedding and two how do you think that has position you guys going into this downturn and really coming out of the downturn.
Well, if you heard John.
Use the spray the power of the portfolio and that's something that we speak to a lot right and.
When you spend decades and decades build in the business and pulling the visit the other way we did five public companies blah Blah blah.
He ended up with some stuff that you got a cleanup we've kind of through all that.
We've done some.
Some puts and takes a markets we've gone to markets, we have exited markets.
We used to talk about national accounts and stuff, we had to shed we're not going to be talking much about that anymore. Now. The fact is because we have such strong pipeline and acquisitions.
And some lighting John talked about last quarter, we're always gonna have some business that comes with an acquisition that may be likely to be shed because it doesn't fit the model, but overall, we think we've done a good job. We think we've got a good.
Filter and test in place on the way in as we're as we're selling new business with all the sales tools that have been launched over recent years. So we think we've got the safety mechanism on the on the organic sales side those will still be some some stuff that maybe get shed through.
As a result of strong M&A, but look like we are well positioned again the power of the portfolio works. It's it's the mix of Geography's, it's the mix of business largely they're small.
It's it's a strong approach with fixing a big piece of business, which happens to be municipal it's been.
Kind of our nemesis with top recycling contracts.
Bed escalators, that's starting to you know come around the corner near force and it just getting shows the shows the Relentlessness of the team is John already mentioned, so all that work right just.
This adds to the strength.
The portfolio of the power of the portfolio was real seasonality winter events.
Weather events.
Balances out when you've got a strong pour bone and no different than the portfolio that you invest in.
Yourself right, we have invested in building a strong.
Portfolio and it's sticking with it and then continually improving it over time and it's just going to it will just get better and better as we go.
That makes sense and down just piggybacking off that this is kind of a big picture question I mean, you've seen a lot of consolidation in your day big and small some of your peers right now are integrating some large scale.
Acquisitions.
In Q4, and then in the Middle of Covid, you guys have elevated M&A that you pass on some of these bigger deals I'm curious how you in the management team thinks that positions that company.
2021.
Well look we I would say this we've been we've looked at every decent deal that's come around.
I would say, there's probably been times, where we've had sort of the lead seat on some deals and.
On a on a R.
RLI basis, we just couldn't get as comfortable with it as we'd like and we passed and a couple of cases other people came in and decided to go forward with it some cases people pay more than maybe we would hope right.
There's a lot of really high quality companies out there.
We compete with vigorously everyday and we've got a pretty good look at who they are and how they operate we know the good quality. Those are the companies were talking to we're not going to win every deals right.
I would say there tends to be a natural buyer and that might be cultural fit it might be geographic fit it might just be where.
The purchasing company is in the lifecycle are frankly, what promises they've made to the market that they feel they have to keep.
We're not in a situation, where we're being paid some high growth multiple we've got to do things.
That are a natural so we stick to what we know.
We've got a great and then I am an 18, a great team of people out there, who who know their markets are 10 area presence I'll have market plans that think about how they want to expand their business through whether it's landfill expansions in acquisitions or new lines of business.
All that is is up and running so look.
I remember when we when we when we paused M&A when we did the big merger over a decade ago and then we put our told back in the water and year after year I've come to you and said and we're going to do X next year in there, sometimes we missed it a little bit because we've said noticed some deals that proved Franklin.
Frankly unworthy in the end, we found some things and diligence that we didn't like and we backed off and we worked so heightened heavy to make the number as we were to do what's best for the company and then there's like this year. We're we're kind of what kind of bloated out because opportunity arises and these companies that were buying today or high quality companies and it really great fit.
And that's how we're going to continue to play it and.
And we take it some opportunity to expand the core little bit there's some great opportunity.
That the team is is brought to us that expand our abilities in around the environmental space that were fond of so that's going to continue and.
We haven't given you any guidance on that and we'll we'll we'll talk about that in February based on what the pipeline isn't and when we say, we're well positioned I think you can take you can take that to the bank will position.
Thanks, Don and just just off that with what you expect to close in 2020 can you Brian can you give us a number of how much rollover do we get on the top line there where you can just kind of ran that fast.
Yes, with that 850 to 900 million dollar investment that we guide to again, it's going to be very heavily backend loaded we would expect a call at 150 basis points plots of acquisition rollover on the top line.
That's perfect and just lastly, I know I might've missed US with October did you guys date is October volumes verse September kind of flat sequentially.
I might have missed that.
Yes.
Somewhat flattish from September levels about about 100 basis point improvement from the Q3 average.
Got it thanks guys.
Thanks.
The next question will come from lower K was Oppenheimer. Please go ahead.
A good afternoon, everyone. I think you mentioned the 160 minutes.
Mansion margin was inclusive environmental services, which I got to imagine with a relative drag at least versus the average so any chance you can quantify.
The environmental services margin impacts in the quarter.
How you think about that for the year and then if you extrapolate the current run right to 21, what does that mean for margin impact year over year.
Yes, so within the 160 of expansion overall, there was a 20 basis points headwind from the environmental services business.
Hello.
And I know you are not getting a formal guidance, but just thinking about it for the year you would expect to be continued headwind.
Yeah, and the fourth car, yes, yes, probably a similar level if you will.
Yeah. So if we if we annualize that into next year you may be looking just.
Significant drop off we may be looking at a little bit of a headwind.
Again in 2021, but not massive.
Okay, and just to clarify the high single digit.
Growth in free cash flow year over year at view that does include the contributions from the Chunkier acquisitions correct.
Correct.
Okay great.
So one.
After a specific questions one more general one I think is one of my peers noted.
Relative to some of the other companies in the space.
You are looking for continued improvement here, if I just step back and look at that.
Consumers personal savings rate.
Here in the third quarter, I mean doubled year over a year.
Is a lot of cash on a relative basis sitting with a consumer now some of it may be going into.
The house Downpayments or what have you, but eventually that catch up to come off the sidelines and I guess I just want to see how you think that translates.
To the recovery into the eventual growth care, you're talking about yeah larger container may be picking up maybe faith in the Reds the line of business, but just your thoughts.
Well look we're not going to give you the exact formula because there's too much mix.
Involved right, but look I mean, our business grows based on population growth household formation business formation, so very simply more people.
Right.
Job creation.
Wage growth.
More people working.
People sort of settling down after sort of the chaos, there's been a lot of chaos this year.
Right.
Covid social unrest the election.
I was suffering personally from great deal of election fatigue, okay.
So I'm sure a lot of people were right. So things are going to start to settle down.
America ends up conquering all in the end how.
How much time when would take your point people.
People have a lot of saving set aside people are waiting to see we are good good news from the fed today.
Look as as things get back to normal, Brian and we get on a path.
Economy recovers and people find a way to continue to sort of save and grow their businesses is John mentioned people innovate we see it all the time.
We're gonna be right there with it in our market position.
It allows us to take full advantage of all that organic growth somewhat naturally and then our ability to grow through them in a our ability to look at even expanding some of our core offerings a lot of a lot of good there and so we're well positioned strong balance sheet strong acerbate strong mark musicians strong team.
I can go on and on and on break about this group so.
This quarter is a great showing of all the hard work that's been going on and they said strength resilience and now an expression of agility and real momentum of the business.
And with a good backdrop I think now as things start to settle down around us then.
It'll be a good story to tell and we will be here in February to share with you. The full year results in the outlook for 21 in more detail in.
Visually see today, I think everyone would be pretty happy with that.
Perfect.
Take care of them.
Thanks scraped banks.
At this time will appear to be no further questions Mister slager onto the call back over to you for closing remarks.
They could shed in closing we are very pleased with our third quarter performance and continue to have a positive outlook on our business, we delivered double digit adjusted EPS and free cash flow growth expanded EBITDA margin and achieve EBITDA margin performance of both 30%. We raised our full year of 2020, adjusted free cash flow guidance and.
We see strong free cash flow growth in 2021. Once again, we have proved the resiliency of our business and the strength of our model.
I would like to take a moment to recognize the hard work commitment and dedication exhibited by or 36000 team members. This year.
At the onset of Covid, we launched are committed to serve program to recognize or frontline employees, who deliver an essential service to our communities across the country. Each and every day and since then their dedication has continued even to record setting weather events, including fires and Hurricanes and frankly you name it.
They've never let up and it's their consistency and willingness to take care of our customers communities and each other that makes them truly relentless and makes me proud to work for a Republic services.
We all have a good evening stay safe out there.
Confidence has now concluded. Thank you pretending today's presentation you may now disconnect.
And.
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