View all news

Republic Industries, Inc. Reports Third Quarter Income From Continuing Operations Rose 47% To $179.7 Million, Or $0.38 Per Share

Oct. 28, 1998

FT. LAUDERDALE, Fla., Oct. 28 /PRNewswire/ -- Republic Industries, Inc. (NYSE: RII) today reported that for the three months ended September 30, 1998, income from continuing operations increased 47 percent to $179.7 million, or $0.38 per share, from $122.1 million, or $0.28 per share for the same period last year. For the nine months ended September 30, 1998, income from continuing operations increased 68 percent to $384.2 million, or $0.82 per share, from $229.0 million or $0.54 per share for the same period last year.

Revenue for the three months ended September 30, 1998 rose 67 percent to $4.9 billion from $2.9 billion in the same period in 1997. Revenue for the nine months ended September 30, 1998 increased 72 percent to $12.7 billion compared to $7.4 billion last year.

Operating income for the three months ended September 30, 1998 increased 60 percent to $304.5 million compared to $190.3 million for the same period last year. Operating income for the nine months ended September 30, 1998, increased 85 percent to $639.3 million from $346.4 million, excluding restructuring and other charges last year.

Commenting on the Company's performance, Steven R. Berrard, President and Co-CEO of Republic Industries, said, "During the third quarter of 1998 we achieved strong revenue growth in all divisions. Operating margins rose significantly in both the automotive retail and the solid waste operations. Also, during the quarter, the Automotive Retail Group laid the groundwork in Denver for rolling out our strategy to redefine the customer buying experience. We acquired 44 automotive franchises, bringing our total to 357. We opened one AutoNation USA megastore raising our total to 30 company-owned megastores and eight franchise locations."

Mr. Berrard added, "During the quarter, we made significant strides in the roll-out of the Odyssey operating system at our National Car Rental locations. Alamo began re-positioning its brand to become the leading value oriented rental car company. Also in the quarter, CarTemps USA opened 14 insurance replacement locations bringing its total to 351 locations."

Republic Industries, Inc. operates subsidiaries in the automotive retailing and automotive rental 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 USA brand name. Republic also owns National Car Rental System, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA. The Company owns 63.9 percent of Republic Services, Inc. (NYSE: RSG), one of the leading providers of non-hazardous solid waste collection and disposal services in the United States.

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           Nine Months Ended
                                 September 30,               September 30,
                              1998          1997         1998          1997
                                             (a)

    Revenue               $4,868.6      $2,921.3    $12,661.8      $7,377.4

    Expenses:
      Cost of operations   3,971.0       2,390.0     10,449.6       6,112.5
      Selling, general and
       administrative        593.1         341.0      1,572.9         918.5
      Restructuring and
       other charges           ---           ---          ---          94.1

    Operating income         304.5         190.3        639.3         252.3

    Interest (expense) income,
     net                     (1.2)           ---       (11.9)           1.2
    Other income (expense)     3.5           1.5        (1.1)         106.6

    Income from continuing
     operations before
     income taxes            306.8         191.8        626.3         360.1

    Provision for income
     taxes                   110.4          69.7        225.4         131.1

    Income from continuing
     operations before
     minority interest       196.4         122.1        400.9         229.0

    Minority interest in net
     income of subsidiary   (16.7)           ---       (16.7)           ---


    Income from continuing
     operations              179.7         122.1        384.2         229.0

    Income from discontinued
     operations                ---           3.2          ---           9.5

    Net income              $179.7        $125.3       $384.2        $238.5

    Diluted income per common
     and common equivalent share:
      Continuing operations  $0.38         $0.28        $0.82         $0.54
      Discontinued operations  ---          0.01          ---          0.02
      Net income             $0.38         $0.29        $0.82         $0.56

    Weighted average common
     and common equivalent
     shares                  475.6         437.3        469.3         425.4

    (a) Operating results for the three month period ended September 30, 1997
have been restated to reflect business combinations accounted for under the
pooling of interests method of accounting.



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

                       Three Months Ended             Nine Months Ended
                           September 30,                  September 30,
                       1998            1997           1998             1997
    Revenue:
     Automotive
      retail $3,508.0  72.0% $1,728.4  59.2% $9,024.0  71.3% $4,256.8  57.7%
     Automotive
      rental  1,005.6  20.7%   905.3   31.0%  2,646.1  20.9% 2,286.1   31.0%
     Solid waste
      services  355.0   7.3%   287.6    9.8%    991.7   7.8%  834.5    11.3%
             $4,868.6   100% $2,921.3   100% $12,661.8  100% $7,377.4    100%

    Operating Income:
     Automotive
      retail   $129.5   3.7%   $24.8    1.4%    290.1   3.2%   55.0     1.3%
     Automotive
      rental    109.5  10.9%   115.1   12.7%    173.7   6.6%  161.3     7.1%
     Solid waste
      services   79.0  22.3%    58.9   20.5%    216.2  21.8%  151.6    18.2%
     Corporate
      expenses (13.5)          (8.5)           (40.7)        (21.5)
     Restructuring
      and other
      charges     ---            ---              ---        (94.1)
               $304.5   6.3%  $190.3    6.5%   $639.3   5.0% $252.3     3.4%
<
SOURCE Republic Industries, Inc.
Categories: Press Releases
View all news