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Republic Services, Inc. Reports A 35% Increase In Pro Forma Earnings Per Share Of $0.27, $0.01 Above Analysts' Estimates

Oct. 29, 1998

FORT LAUDERDALE, Fla., Oct. 29 /PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) today reported that for the three months ended September 30, 1998 pro forma earnings per share increased 35% to $0.27 per share from $0.20 per share last year. For the nine months ended September 30, 1998, pro forma earnings per share increased 42% to $0.74 per share from $0.52 per share last year.

Revenue for the three months ended September 30, 1998 increased 23% to $355.0 million from $287.6 million for the same period in 1997. Revenue for the nine months ended September 30, 1998 increased 19% to $991.7 million compared to $834.5 million last year.

Operating income for the three months ended September 30, 1998 increased 34% to $75.3 million, compared to $56.3 million for the same period in 1997. Operating margins expanded to 21.2% compared to 19.6% in the comparable quarter last year. Operating income for the nine months ended September 30, 1998, increased 42% to $204.9 million from $144.4 million last year. Year-to-date operating margins rose to 20.7% compared to 17.3% last year.

Commenting on the Company's third-quarter performance, H. Wayne Huizenga, Chairman and CEO of Republic Services, said, "We are proud to report strong financial results in our first quarter as a public company. During the quarter, we achieved a significant increase in revenue with the majority coming from internal growth. Operating income and margins increased significantly as we continued to leverage our operating costs.

"Also in the quarter, we laid the groundwork for future growth by agreeing to acquire certain assets from Waste Management, Inc., including 16 landfills, 11 transfer stations, and 136 commercial collection routes. This acquisition will increase our presence in four existing markets and enable us to enter 16 new markets."

Republic Services, Inc. is one of the leading providers of non-hazardous solid waste collection and disposal services in the United States. The Company's various operating units provide solid waste collection services for commercial, industrial, municipal and residential customers, primarily in the Sunbelt and other high growth areas of the country. Republic Industries, Inc. (NYSE: RII) owns approximately 63.9 percent of the outstanding shares of Republic Services, Inc.

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 SERVICES, INC.
     PRO FORMA 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

    Revenue                   $355.0      $287.6      $991.7      $834.5

    Expenses:
    Cost of operations         246.8       202.0       688.2       603.1
    Selling, general
     and administrative         29.2        26.7        87.3        79.8
    Parent overhead allocations  3.7         2.6        11.3         7.2

    Operating income            75.3        56.3       204.9       144.4

    Interest expense, net      (1.5)       (0.6)       (2.1)       (1.4)
    Other income (expense)     (0.2)         0.2         0.3         0.5

    Income from continuing
     operations before
     income taxes               73.6        55.9       203.1       143.5

    Provision for income taxes  26.5        20.3        73.1        52.0

    Net income                 $47.1       $35.6      $130.0       $91.5

    Basic and diluted
     earnings per share        $0.27       $0.20       $0.74       $0.52

    Weighted average
     common shares             175.4       175.4       175.4       175.4

    Note: These Pro Forma Statements of Operations have been prepared assuming
the Company's initial public offering and the repayment in full of amounts due
to Republic Industries, Inc. had occurred as of the beginning of each period
presented.


                           REPUBLIC SERVICES, 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

    Revenue                    $355.0       $287.6     $991.7      $834.5

    Expenses:
    Cost of operations          246.8        202.0      688.2       603.1
    Selling, general
     and administrative          29.2         26.7       87.3        79.8
    Parent overhead allocations   3.7          2.6       11.3         7.2

    Operating income             75.3         56.3      204.9       144.4

    Interest expense, net       (2.9)        (5.5)     (39.4)      (17.0)
    Other income (expense)      (0.2)          0.2        0.3         0.5

    Income from continuing
     operations before
     income taxes                72.2         51.0      165.8       127.9

    Provision for income taxes   26.0         18.5       59.7        46.3

    Net income                  $46.2        $32.5     $106.1       $81.6

    Note: Historical net income per share has not been presented because it
would not be meaningful.  Prior to the Company's initial public offering in
July 1998, all of the Company's common stock was owned by Republic Industries,
Inc.
SOURCE Republic Services, Inc.
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