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Republic Industries, Inc. Reports An 80% Increase In Income From Continuing Operations And A 74% Increase In Revenue

Jul. 30, 1998

FORT LAUDERDALE, Fla., July 30 /PRNewswire/ -- Republic Industries, Inc. (NYSE: RII) today reported that for the three months ended June 30, 1998 income from continuing operations increased 80 percent to $127.4 million, or 27 cents per share, from $70.9 million, or 17 cents per share for the same period in 1997. For the six months ended June 30, 1998, income from continuing operations increased 91 percent to $204.5 million, or 44 cents per share, from $106.9 million, or 25 cents per share for the same period last year.

Revenue for the three months ended June 30, 1998, increased 74 percent to $4.4 billion from $2.5 billion for the same period in 1997. Revenue for the six months ended June 30, 1998, increased 75 percent to $7.8 billion compared to $4.5 billion reported last year.

Operating income for the three months ended June 30, 1998, increased 98 percent to $210.7 million compared to $106.3 million, excluding restructuring and other charges, for the same period in 1997. Operating income for the six months ended June 30, 1998, increased 114 percent to $334.8 million from $156.1 million, excluding restructuring and other charges last year. During the three months ended June 30, 1997, Republic Industries benefited from a $102.3 million pre-tax gain from the sale of its 15 million shares of ADT Limited common stock and recorded a $94.1 million pre-tax provision for restructuring and other charges related to the integration of its automotive rental companies.

Commenting on the Company's performance in the second quarter of 1998, Steven R. Berrard, President and Co-CEO of Republic Industries, said, "This was an outstanding quarter for our Company. We achieved strong revenue growth in all divisions and operating margin improvements in our automotive retail and solid waste operations. During the second quarter, the automotive retail group made significant strides in leveraging its operations, resulting in operating margins of 3.3 percent versus 1.1 percent last year. During the quarter, we acquired 22 automotive franchises. In addition, we opened three AutoNation USA megastores raising our total to 29 company owned stores. We also completed the conversion of eight Driver's Mart franchise locations to AutoNation USA megastores.

"Our automotive rental operations experienced strong revenue growth during the quarter; however, operating income results were impacted by weakness in the leisure segment.

"On July 7, 1998, we completed an initial public offering of Republic Services, Inc. (NYSE: RSG). The offering raised net proceeds of $1.44 billion dollars in capital which will be used to finance the growth of our automotive retail and rental operations. As a result of the offering, Republic Industries, Inc. owns approximately 63.9 percent of the outstanding shares of Republic Services, Inc. Republic Industries anticipates distributing its remaining shares of Republic Services as a dividend to existing stockholders of Republic Industries during the first or second quarter of 1999, subject to the receipt of a favorable ruling from the IRS."

For the three months ended June 30, 1998, revenue for Republic Services, Inc. increased 18 percent to $335.9 million from $283.7 million last year. Operating income increased 50 percent to $70.7 million from $47.1 million last year.

For the six months ended June 30, 1998, revenue rose 16 percent to $636.7 million from $546.9 million last year. Operating income increased 47% to $129.7 million from $88.1 million last year.

Republic Industries, Inc. operates subsidiaries in the automotive retailing, automotive rental, and solid waste services industries. The Company owns the nation's largest chain of new vehicle dealerships and is building a chain of used car megastores which it operates under the AutoNation brand name. Republic also owns National Car Rental System, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA.

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.

                          REPUBLIC INDUSTRIES, INC.
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In millions, except per share data)


                      Three Months Ended June 30,  Six Months Ended June 30,
                          1998        1997            1998          1997
                                       (a)                           (a)

    Revenue            $4,373.3   $2,513.9      $7,793.2      $4,456.1

    Expenses:
    Cost of operations  3,637.4    2,103.0       6,478.6       3,722.5
    Selling, general and
     administrative       525.2      304.6         979.8         577.5
    Restructuring and
     other charges          ---       94.1           ---          94.1

    Operating income      210.7       12.2         334.8          62.0

    Interest income
     (expense), net       (9.0)      (2.0)        (10.7)           1.2
    Other income (expense)(2.6)      101.4         (4.6)         105.1

    Income from continuing
     operations before
     income taxes         199.1      111.6         319.5         168.3

    Provision for
     income taxes          71.7       40.7         115.0          61.4

    Income from continuing
     operations           127.4       70.9         204.5         106.9

    Income from discontinued
     operations             ---        3.6           ---           6.3

    Net income          $ 127.4      $74.5        $204.5        $113.2

    Diluted income
     per common and
    common equivalent share:
    Continuing operations $0.27      $0.17        $ 0.44         $0.25
    Discontinued operations ---       0.01           ---          0.02
    Net income            $0.27      $0.18        $ 0.44         $0.27

    Weighted average
     common and common
     equivalent shares    473.9      423.5         466.0         419.3

    (a)   Operating results for the three and six month periods ended June 30,
1997 have been restated to reflect business combinations accounted  for under
the pooling of interests method of accounting and to account for the Company's
electronic security services division as discontinued operations.


                          REPUBLIC INDUSTRIES, INC.
                     UNAUDITED SUPPLEMENTAL SEGMENT DATA
                                (In millions)



                  Three Months Ended June 30,        Six Months Ended June 30,
                      1998           1997           1998            1997

    Revenue:
    Automotive
     retail $3,172.6   72%  $1,490.7   59% $5,516.0    71% $2,528.4   57%
    Automotive
     rental    864.8   20%     739.5   30%  1,640.5    21%  1,380.8   31%
    Solid waste
     services  335.9    8%     283.7   11%    636.7     8%    546.9   12%
            $4,373.3  100%  $2,513.9  100% $7,793.2   100% $4,456.1  100%


    Operating Income:
    Automotive
     retail   $104.2    3%     $17.0    1%    160.6     3%     30.2    1%
    Automotive
     rental     45.1    5%      46.5    6%     64.2     4%     46.2    3%
    Solid waste
     services   74.4   22%      49.6   17%    137.2    22%     92.7   17%
    Corporate
     expenses (13.0)           (6.8)         (27.2)          (13.0)
    Restructuring
     and other
     charges                  (94.1)                         (94.1)
              $210.7    5%     $12.2   ---   $334.8     4%    $62.0    1%
SOURCE Republic Industries, Inc.
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