FORT LAUDERDALE, Fla., Jan. 28 /PRNewswire/ -- Republic Services, Inc.
(NYSE: RSG) today reported that for the three months ended December 31, 1998,
pro forma earnings increased 28.6 percent to $0.27 per share from $0.21 per
share for the comparable period last year. For 1998, pro forma earnings per
share increased 36.5 percent to $1.01 per share from $0.74 per share in 1997.
Revenue for the three months ended December 31, 1998 increased 28.7
percent to $377.4 million from $293.2 million for the same period in 1997.
Revenue for 1998 increased 21.4 percent to $1,369.1 billion from $1,127.7
billion in 1997.
Operating income for the fourth quarter of 1998 increased 39.4 percent to
$79.3 million, compared to $56.9 million for the same quarter last year.
Operating income for 1998 was $284.3 million, up 41.2 percent compared to
$201.3 million in 1997.
Operating margins expanded to 21.0 percent compared to 19.4 percent in the
comparable quarter in 1997. In 1998, operating margins rose to 20.8 percent,
compared to 17.9 percent in 1997.
During the fourth quarter, James E. (Jim) O'Connor joined Republic
Services as Chief Executive Officer, adding to the Company's already strong
team of experienced industry veterans. According to H. Wayne Huizenga,
Chairman of Republic Services, "Jim has an outstanding record of achievement
in the waste services industry. His experience and leadership skills will
help guide Republic Services to even greater prosperity. Jim also has the
advantage of working with Republic Services' President and Chief Operating
Officer Jim Cosman and the excellent team he has developed across the nation."
Commenting on the Company's performance in the fourth quarter and for the
year, Mr. O'Connor said, "Our strong financial performance is indicative of
the efforts made by our employees on behalf of our customers and the Company.
The significant increases in revenue, operating income and margins are
attributable to strong internal growth and a series of strategic acquisitions
that strengthened Republic Services in key markets and provided the
opportunity to enter new areas.
"During the quarter, the Company acquired six landfills, seven transfer
stations and 136 commercial collection routes from Waste Management, Inc.,"
noted Mr. O'Connor. "We anticipate completing the balance of this transaction
in the first quarter of 1999."
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. 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 Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
Revenue $377.4 $293.2 $1,369.1 $1,127.7
Expenses:
Cost of operations 231.1 184.2 842.7 723.0
Depreciation and
amortization 29.8 21.8 106.3 86.1
Selling, general and
administrative 33.5 27.3 120.8 107.1
Parent overhead
allocations 3.7 3.0 15.0 10.2
Operating income 79.3 56.9 284.3 201.3
Interest expense, net (3.8) 0.6 (5.9) (0.8)
Other income (expense) (1.2) 1.3 (0.9) 1.8
Income from continuing
operations before
income taxes 74.3 58.8 277.5 202.3
Provision for income
taxes 26.7 21.4 99.9 73.4
Net income $47.6 $37.4 $177.6 $128.9
Basic and diluted earnings
per share $0.27 $0.21 $1.01 $0.74
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 Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
Revenue $377.4 $293.2 $1,369.1 $1,127.7
Expenses:
Cost of operations 231.1 184.2 842.7 723.0
Depreciation and
amortization 29.8 21.8 106.3 86.1
Selling, general and
administrative 33.5 27.3 120.8 107.1
Parent overhead
allocations 3.7 3.0 15.0 10.2
Operating income 79.3 56.9 284.3 201.3
Interest expense, net (3.8) (4.0) (43.2) (21.0)
Other income (expense) (1.2) 1.3 (0.9) 1.8
Income from continuing
operations before
income taxes 74.3 54.2 240.2 182.1
Provision for
income taxes 26.7 19.6 86.5 65.9
Net income $47.6 $34.6 $153.7 $116.2
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.