Republic Services, the second largest non-hazardous solid waste company in the US, recently issued decent financials for the second quarter of 2016. Revenues increased 1.7% y-o-y to $2.351 bn, slightly below consensus estimate of $2.359 bn. The improvement was driven by a 2% rise in average yield and a 0.5% increase in volume, partially offset by lower fuel recovery fees of 1%. Core price increased revenues by 3.1% during the quarter. Adjusted EBITDA came in at $666.4 mn resulting in EBITDA margin of 28.3%. Adjusted earnings per share were 55 cents matching with analysts’ average projection.During the first six months of 2016, Republic Services generated operating cash flow of $844.3 mn and free cash flow of $337.2 mn. In Q2, the company repurchased 2.3 mn shares for $107.6 mn. Besides, the company raised its quarterly dividend by 2 cents to 32 cents per share, which offers a healthy annualized dividend yield of around 2.5%.Republic Services reaffirmed its full-year guidance and continues to expect 2016 adjusted earnings in the range of $2.13-2.17 per share. Adjusted free cash flow is forecast in the range of $820-840 mn.With diligent execution of operational plans and a realigned operational structure, Republic Services, I expect, will continue to generate a healthy cash flow in the future. The company, I believe, has strong underlying fundamentals and is set to achieve consistent earnings growth while creating significant shareholder value.Shares of Republic Services, in my opinion, are well positioned to continue growth, with medium-term target at $55. $RSG, Republic Services, Inc. / 1440