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.