Republic Services, Inc.

Good afternoon and welcome to the Republic Services first quarter 2024 investor conference call. Republic Services is traded on the New York Stock Exchange under the symbol RSG. All participants in today's call will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Aaron Evans, Vice President of Investor Relations.

Thank you. I would like to welcome everyone to Republic Services' first quarter 2024 conference call. Don VanderArk, our CEO, and Brian DelGaccio, our CFO, are on the call today as we discuss our performance. I would like to take a moment to remind everyone that some of the information we discuss on today's call contains forward-looking statements, which involve risks and uncertainties and may be materially different from actual results. Our SEC filings discuss factors that could 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 30, 2024. Please note that this call is property of Republic Services, Inc. Any redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of Republic Services is strictly prohibited. I want to point out that our SEC filings, our earnings press release, which includes gap reconciliation tables and a discussion of business activities, along with a recording of this call, are available on the Republic's website at republicservices.com. I want to remind you that Republic's management team routinely participates in investor conferences. When events are scheduled, the dates, times, and presentations are posted on our website. With that, I'd like to turn the call over to John.

Thanks, Aaron. Good afternoon, everyone, and thank you for joining us. Our strong first quarter results demonstrate our focus on profitably growing the business. We produce revenue growth both organically and through acquisitions while enhancing profitability across the enterprise. During the quarter, we achieved revenue growth of 8%, generated adjusted EBITDA growth of 12%, expanded adjusted EBITDA margin by 120 basis points, reported adjusted earnings per share of $1.45, and produced $535 million of adjusted free cash flow. The results we delivered are made possible by executing our strategy, supported by our differentiated capabilities. Regarding customer zeal, our efforts to provide best-in-class essential services and sustainability offerings continue to drive customer loyalty and organic growth in the business. Our customer retention rate remained high at over 94%. And we continue to see favorable trends in our net promoter score as customers value our broad service offerings and the quality of our service delivery. Strong organic revenue growth during the first quarter was underpinned by core price on related revenue of 8.5% and average yield on related revenue of 7.3%. This level of pricing exceeded our internal cost inflation, and resulted in over 100 basis points of EBITDA margin expansion. Organic volume on related revenue declined 1.1%. Large container and disposal volumes were negatively impacted by severe weather across most of our geographies during the first quarter. Most of the weather impact occurred in January, and we saw a notable rebound in volume performance in February and March as weather conditions normalized. Turning to our digital capabilities, the team continues to advance the implementation of digital tools that improve the experience for both customers and our employees. Our RISE digital operations platform is driving improved route optimization and safety performance, and providing more predictable service delivery to our customers. Development of our new asset management system is underway, which is expected to increase maintenance technician productivity and enhance warranty recovery. We expect to begin deploying the new system later this year using a phased approach, which we estimate will result in $20 million of annual cost savings by 2026. We continue to benefit from advanced technology on recycling and waste collection routes. Our platform utilizes cameras to identify overfilled containers and contamination in recycling containers. This technology will reduce contamination in our recycling centers and is expected to generate approximately $60 million in incremental annual revenue. To date, we have already achieved $30 million of annual benefit. Moving on to sustainability. We believe that our sustainability innovation investments in plastic circularity and renewable natural gas are a platform for profitable growth. Development of our polymer centers and Blue Polymers joint venture facilities remains on track. Our Las Vegas polymer centers operational and delivery of plastic flake to our offtake partners began in March. Construction is progressing on our Indianapolis polymer center with equipment installation plan to begin in June. This operation will be co-located with a Blue Polymers production facility. The renewable natural gas projects being co-developed with our partners continue to advance. One project came online during the first quarter, and we expect at least seven additional projects to be completed in 2024. We continue to advance our efforts to support decarbonization, including our industry-leading commitment to fleet electrification. We currently have 15 collection vehicles in operations. We expect to have more than 50 additional EVs to be added to our fleet in 2024. We now have seven facilities with commercial EV charging infrastructure. Development of 40 additional locations is underway, with more than 10 new sites expected to be completed in 2024. As part of our approach to sustainability, we continually strive to be the employer of choice in the markets that we serve. Employee turnover continues to improve with our first... quarter turnover rate improving 70 basis points compared to the prior year. As a result, we are better staffed to optimize our operations and capitalize on growth opportunities in the market. Our comprehensive sustainability performance continues to be widely recognized as Republic Services was recently named to Barron's 100 Most Sustainable Companies list, Ethisphere's World's Most Ethical Companies list, and Fortune's Most Innovative Companies list. With respect to capital allocation, we invested $41 million in acquisitions during the first quarter. Our acquisition pipeline remains supportive of continued activity in both the recycling and waste and environmental solutions businesses. We continue to see opportunity for $500 million of investment in value-creating acquisitions in 2024. Additionally, we returned $168 million to shareholders through dividends in the first quarter. I will now turn the call over to Brian, who will provide details on the quarter.