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Exhibit 99.1
REPUBLIC CONTACTS
Media Inquiries: Will Flower (954) 769-6392
Investor Inquiries: Tod Holmes (954) 769-2387
Ed Lang (954) 769-3591
REPUBLIC SERVICES, INC. REPORTS
SECOND QUARTER EARNINGS OF $0.34 PER SHARE
- EARNINGS ARE CONSISTENT WITH CONCENSUS ESTIMATES
- COMPANY ON TRACK TO MEET CASH FLOW OBJECTIVES
FORT LAUDERDALE, FLA., JULY 26, 2000...Republic Services, Inc. (NYSE:
RSG) today reported that for the three months ended June 30, 2000, net income
rose to $59.2 million, or $0.34 per share, from $54.5 million, or $0.31 per
share, for the comparable period last year. Revenue increased 15% to $533.5
million from $463.8 million for the same period in 1999. Operating income for
the three months ended June 30, 2000, increased 13% to $115.9 million, compared
to $102.6 million for the same quarter last year.
For the six months ended June 30, 2000, net income increased to $109.4
million, or $0.62 per share, from $100.4 million, or $0.57 per share, for the
comparable period last year. Revenue increased 19% to $1,035.0 million from
$871.4 million for the same period in 1999. Operating income for the six months
ended June 30, 2000, increased 17% to $217.6 million compared to $186.0 million
for the same period last year.
"We are pleased with the Company's performance in the second quarter,"
said James E. O'Connor, Chief Executive Officer of Republic Services, Inc.
"Based on these results, we believe that we will achieve the upper end of our
projected free cash flow range of $100 - $120 million for the year. Capital
spending to date is in-line with our expectations and our focus on accounts
receivable has helped us further reduce receivable days sales outstanding from
45 days at the start of the year to 43 days at the end of the second quarter."
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Republic Services, Inc. is a leading provider of solid waste
collection, transfer and disposal services in the United States. The Company's
operating units are focused on providing solid waste services for commercial,
industrial, municipal and residential customers.
Certain statements and information included herein 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 or by such forward-looking statements. Such factors include, among
other things, whether the Company's estimates and assumptions concerning its
selected balance sheet accounts, closure and post-closure costs, available
airspace, and projected costs and expenses related to the Company's landfills
and property, plant and equipment turn out to be correct or appropriate, and
various factors that will impact the actual business and financial performance
of the Company such as competition in the solid waste industry; dependence on
acquisitions for growth; the Company's ability to manage growth; compliance with
and future changes in environmental regulations; the Company's ability to obtain
approval from regulatory agencies in connection with expansions at the Company's
landfills; the ability to obtain financing on acceptable terms to finance the
Company's operations and growth strategy and for the Company to operate within
the limitations imposed by financing arrangements; the Company's dependence on
key personnel; general economic conditions; dependence on large, long-term
collection contracts; risks associated with undisclosed liabilities of acquired
businesses; risks associated with pending legal proceedings; and other factors
contained in the Company's filings with the Securities and Exchange Commission.
###
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REPUBLIC SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- ---------------------------------------
Pro Forma
2000 1999 2000 1999 1999
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Revenue $ 533.5 $ 463.8 $ 1,035.0 $ 871.4 $ 871.4
Expenses:
Cost of operations 320.5 278.3 626.6 527.1 527.1
Depreciation, amortization and depletion 49.2 39.6 95.5 73.0 73.0
Selling, general and administrative 47.9 40.7 95.3 80.0 80.0
AutoNation overhead charges -- 2.6 -- 5.3 5.3
Other charges -- -- -- 4.0 --
--------- --------- --------- --------- ---------
Operating income 115.9 102.6 217.6 182.0 186.0
Interest expense, net (19.9) (14.0) (40.2) (22.7) (22.7)
Other income (expense), net 0.2 -- 0.4 (0.1) (0.1)
--------- --------- --------- --------- ---------
Income before income taxes 96.2 88.6 177.8 159.2 163.2
Provision for income taxes 37.0 34.1 68.4 61.3 62.8
--------- --------- --------- --------- ---------
Net income $ 59.2 $ 54.5 $ 109.4 $ 97.9 $ 100.4
========= ========= ========= ========= =========
Basic and diluted earnings per share $ 0.34 $ 0.31 $ 0.62 $ 0.56 $ 0.57
========= ========= ========= ========= =========
Weighted average common shares 175.9 176.5 175.7 176.0 176.0
========= ========= ========= ========= =========
Amortization of Goodwill and Other Intangibles $ 10.0 $ 7.6 $ 19.4 $ 14.7 $ 14.7
EBITDA $ 165.1 $ 142.2 $ 313.1 $ 255.0 $ 259.0
</TABLE>
Note: The Pro Forma Unaudited Consolidated Statement of Operations for the
six months ended June 30, 1999, excludes $4.0 million in Other Charges
recorded in the first quarter of fiscal 1999 for costs related to the
Company's separation from its former parent company, AutoNation, Inc.
Certain amounts in the fiscal 1999 financial statements, as previously
reported, have been reclassified to conform to the fiscal 2000
presentation.
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REPUBLIC SERVICES, INC.
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
The following information should be read in conjunction with the
Company's audited Consolidated Financial Statements and notes thereto appearing
in the Company's Form 10-K as of and for the year ended December 31, 1999. It
should also be read in conjunction with the Company's Unaudited Condensed
Consolidated Financial Statements and notes thereto appearing in the Company's
Form 10-Q as of and for the three months ended March 31, 2000.
CASH FLOW
The following table reflects certain components of the Company's
consolidated statements of cash flows for the three months ended in each of the
periods presented (in millions):
<TABLE>
<CAPTION>
June 30, March 31, June 30, March 31,
2000 2000 1999 1999
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Depreciation, amortization and depletion
of property and equipment $ 39.2 $ 36.9 $ 32.0 $ 26.3
Amortization of intangible assets $ 10.0 $ 9.4 $ 7.6 $ 7.1
Capital expenditures $ (48.6) $ (49.2) $ (81.4) $ (57.1)
</TABLE>
During December 1999, the Company entered into a $100.0 million
operating lease facility established to finance the acquisition of operating
equipment (primarily revenue-producing vehicles). At June 30, 2000, $64.2
million was outstanding under the lease facility, of which $20.3 and $7.7
million was added during the three months ended June 30, and March 31, 2000,
respectively.
Capital expenditures include $.8 million and $1.3 million of
capitalized interest for the three months ended June 30, 2000 and 1999,
respectively, and $.7 million and $1.7 million of capitalized interest for the
three months ended March 31, 2000 and 1999, respectively.
As of June 30, 2000, accounts receivable were $246.8 million, net of
allowance for doubtful accounts of $13.8 million, resulting in days sales
outstanding of approximately 43 (or 32 days net of deferred revenue).
REVENUE
The following table reflects total revenue of the Company by revenue
source for the three months ended in each of the periods presented (in
millions):
<TABLE>
<CAPTION>
June 30, March 31, June 30, March 31,
2000 2000 1999 1999
-------- --------- -------- ---------
Collection:
<S> <C> <C> <C> <C>
Residential $ 105.5 $ 100.7 $ 93.5 $ 83.4
Commercial 154.4 150.1 132.5 125.3
Industrial 123.5 114.8 107.5 89.6
Other 15.6 15.4 11.9 11.0
------- ------- ------- -------
Total collection 399.0 381.0 345.4 309.3
Transfer and disposal 155.4 133.7 118.4 90.3
Less: Intercompany (63.6) (49.6) (39.8) (27.5)
------- ------- ------- -------
Transfer and
disposal, net 91.8 84.1 78.6 62.8
Other 42.7 36.4 39.8 35.5
------- ------- ------- -------
Total revenue $ 533.5 $ 501.5 $ 463.8 $ 407.6
======= ======= ======= =======
</TABLE>
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The following table reflects the Company's revenue growth for the three
months ended in each of the periods presented from the comparable period in the
previous year:
<TABLE>
<CAPTION>
June 30, March 31, June 30, March 31,
2000 2000 1999 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Price 2.5% 2.6% 2.2% 2.2%
Volume 5.3 5.8 6.1 5.9
-------- -------- -------- --------
Total internal growth 7.8 8.4 8.3 8.1
Acquisitions 7.2 14.7 28.6 26.8
-------- -------- -------- --------
Total revenue growth 15.0% 23.1% 36.9% 34.9%
======== ======== ======== ========
</TABLE>
