Republic Services, Inc. Reports First Quarter Earnings Per Share Of $.29; Free Cash Flow On Target

Apr 30, 2001, 01:00 ET from Republic Services, Inc.

    FORT LAUDERDALE, Fla., April 30 /PRNewswire/ -- Republic Services, Inc.
 (NYSE:   RSG) today reported that first quarter revenue increased seven percent
 to $535.4 million from $501.5 million for the same period in 2000.  Net income
 was $49.6 million, or $0.29 per share, compared to $50.2 million, or $0.29 per
 share, last year.  Operating income for the three months ended March 31, 2001,
 was $98.9 million, compared to $101.7 million for the same quarter last year.
 EBITDA in the first quarter increased to $149.2 million, from $148.0 million
 for the same period in 2000.
     Commenting on these results, James E. O'Connor, Chief Executive Officer of
 Republic Services, said, "I am pleased with the Company's performance in the
 first quarter. As we had anticipated, higher fuel and labor costs in certain
 markets negatively impacted our year-over-year margins.  We also experienced
 earnings pressure in the first quarter due to soft commodity pricing.
 Nevertheless, apart from the effects of commodity pricing, our core solid
 waste business realized internal growth of 4.3% during the quarter, consisting
 of a 2.2% increase in price and a 2.1% increase in volume.
     "Our 2001 business outlook assumes the economy will strengthen during the
 third and fourth quarters.  Due to the seasonal nature of our business, we
 will have a better view of the economy's impact on our business as we move
 into the summer months and see the actual benefits of seasonal increases in
 our business.
     "We remain committed to improving the Company's free cash flow and to
 maintaining our investment grade credit rating.  We believe that we are well
 on our way to achieving our goal of $145 million in free cash flow this year
 -- an 18 percent increase over 2000.  We are also pleased that Moody's
 recently issued a positive outlook for the Company."
     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, including projections
 of future cash flow, net income, earnings per share, the existence of our
 ability to address fuel and labor cost issues, the continuation of
 inflationary pressure, continued weakness in commodity pricing, and our
 ability to achieve revenue growth, including pricing, volume and acquisition
 growth, in the future, 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 underlying 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 and labor and fuel rates and inflationary trends 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 ability of the Company to repurchase common
 stock at prices that are accretive to earnings per share;  the Company's
 dependence on key personnel; general economic conditions, including but not
 limited to inflation and changes in fuel, labor, commodity pricing and other
 variable costs that are generally not within the control of the Company;
 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.
 
 
 
                              REPUBLIC SERVICES, INC.
             UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In millions, except per share data)
 
                                                  Three Months Ended March 31,
 
                                                      2001              2000
 
 
        Revenue                                      $535.4             $501.5
 
        Expenses:
          Cost of operations                          329.7              306.1
          Depreciation, amortization and
           depletion                                   50.3               46.3
          Selling, general and
           administrative                              56.5               47.4
 
        Operating income                               98.9              101.7
 
        Interest expense, net                         (20.2)             (20.3)
        Other income (expense), net                     1.3                0.2
 
        Income before income taxes                     80.0               81.6
 
        Provision for income taxes                     30.4               31.4
 
        Net income                                    $49.6              $50.2
 
        Basic and diluted earnings per
         share                                        $0.29              $0.29
 
        Weighted average common shares                171.8              175.5
 
        Amortization of goodwill and
         other intangibles                            $11.0               $9.4
        EBITDA                                       $149.2             $148.0
 
 
 
                            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, 2000.
 
     CASH FLOW
 
     The following table reflects certain components of the Company's
 consolidated statements of cash flows for the three months ended March 31,
 2001 and 2000 (in millions):
 
                                                        Three months ended
                                                              March 31,
                                                         2001           2000
     Depreciation, amortization and depletion
      of property and equipment                         $39.3          $36.9
 
     Amortization of intangible assets                  $11.0           $9.4
 
     Capital expenditures                             $(39.2)        $(49.2)
 
     The Company defines free cash flow as net income plus depreciation,
 amortization and depletion less capital expenditures plus net changes in
 assets and liabilities resulting from operating activities.
     Capital expenditures include $.3 million and $.7 million of capitalized
 interest for the three months ended March 31, 2001 and 2000, respectively.
     As of March 31, 2001, accounts receivable were $250.6 million, net of
 allowance for doubtful accounts of $13.2 million, resulting in days sales
 outstanding of approximately 42 (or 29 days net of deferred revenue).
 
     STOCK REPURCHASE PROGRAM
 
     During 2000, the Company announced that its Board of Directors authorized
 the repurchase of up to $150.0 million of its common stock.   As of December
 31, 2000, the Company paid $50.9 million to repurchase 3,644,000 shares of its
 stock.   During the three months ended March 31, 2001, the Company paid $25.2
 million to repurchase 1,614,800 shares of its stock.  As of March 31, 2001,
 the Company had $73.9 million remaining under its repurchase programs to fund
 stock repurchases.
 
     REVENUE
     The following table reflects total revenue of the Company by revenue
 source for the three months ended March 31, 2001 and 2000 (in millions):
 
 
                                                       Three months ended
                                                            March 31,
                                                        2001          2000
 
     Collection:
       Residential                                     $113.1        $ 100.7
       Commercial                                       168.6          150.1
       Industrial                                       122.4          114.8
       Other                                             11.3           15.4
 
       Total collection                                $415.4         $381.0
 
     Transfer and disposal                              175.2          133.7
     Less: Intercompany                                (93.5)         (49.6)
       Transfer and
        disposal, net                                    81.7           84.1
 
     Other                                               38.3           36.4
     Total revenue                                     $535.4        $ 501.5
 
     The following table reflects the Company's revenue growth for the three
 months ended March 31, 2001 and 2000:
 
                                                         Three months ended
                                                               March 31,
                                                         2001           2000
     Price                                               1.4%           2.6%
     Volume                                               2.1            5.8
       Total internal growth                              3.5            8.4
     Acquisitions                                         3.3           14.7
 
       Total revenue growth                              6.8%          23.1%
 
     Price growth for the three months ended March 31, 2001 was impacted by
 commodity prices.  Excluding the effect of commodity prices, price growth was
 2.2% and total internal growth was 4.3%.
 
     INCOME TAXES
 
     Income taxes are provided based upon the Company's anticipated annual
 effective income tax rate.  During the three months ended December 31, 2000,
 the Company lowered its anticipated annual effective tax rate for fiscal 2000
 from 38.5% to 38.0%.
 
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                http://tbutton.prnewswire.com/prn/11690X88121449
 
 

SOURCE Republic Services, Inc.
    FORT LAUDERDALE, Fla., April 30 /PRNewswire/ -- Republic Services, Inc.
 (NYSE:   RSG) today reported that first quarter revenue increased seven percent
 to $535.4 million from $501.5 million for the same period in 2000.  Net income
 was $49.6 million, or $0.29 per share, compared to $50.2 million, or $0.29 per
 share, last year.  Operating income for the three months ended March 31, 2001,
 was $98.9 million, compared to $101.7 million for the same quarter last year.
 EBITDA in the first quarter increased to $149.2 million, from $148.0 million
 for the same period in 2000.
     Commenting on these results, James E. O'Connor, Chief Executive Officer of
 Republic Services, said, "I am pleased with the Company's performance in the
 first quarter. As we had anticipated, higher fuel and labor costs in certain
 markets negatively impacted our year-over-year margins.  We also experienced
 earnings pressure in the first quarter due to soft commodity pricing.
 Nevertheless, apart from the effects of commodity pricing, our core solid
 waste business realized internal growth of 4.3% during the quarter, consisting
 of a 2.2% increase in price and a 2.1% increase in volume.
     "Our 2001 business outlook assumes the economy will strengthen during the
 third and fourth quarters.  Due to the seasonal nature of our business, we
 will have a better view of the economy's impact on our business as we move
 into the summer months and see the actual benefits of seasonal increases in
 our business.
     "We remain committed to improving the Company's free cash flow and to
 maintaining our investment grade credit rating.  We believe that we are well
 on our way to achieving our goal of $145 million in free cash flow this year
 -- an 18 percent increase over 2000.  We are also pleased that Moody's
 recently issued a positive outlook for the Company."
     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, including projections
 of future cash flow, net income, earnings per share, the existence of our
 ability to address fuel and labor cost issues, the continuation of
 inflationary pressure, continued weakness in commodity pricing, and our
 ability to achieve revenue growth, including pricing, volume and acquisition
 growth, in the future, 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 underlying 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 and labor and fuel rates and inflationary trends 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 ability of the Company to repurchase common
 stock at prices that are accretive to earnings per share;  the Company's
 dependence on key personnel; general economic conditions, including but not
 limited to inflation and changes in fuel, labor, commodity pricing and other
 variable costs that are generally not within the control of the Company;
 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.
 
 
 
                              REPUBLIC SERVICES, INC.
             UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In millions, except per share data)
 
                                                  Three Months Ended March 31,
 
                                                      2001              2000
 
 
        Revenue                                      $535.4             $501.5
 
        Expenses:
          Cost of operations                          329.7              306.1
          Depreciation, amortization and
           depletion                                   50.3               46.3
          Selling, general and
           administrative                              56.5               47.4
 
        Operating income                               98.9              101.7
 
        Interest expense, net                         (20.2)             (20.3)
        Other income (expense), net                     1.3                0.2
 
        Income before income taxes                     80.0               81.6
 
        Provision for income taxes                     30.4               31.4
 
        Net income                                    $49.6              $50.2
 
        Basic and diluted earnings per
         share                                        $0.29              $0.29
 
        Weighted average common shares                171.8              175.5
 
        Amortization of goodwill and
         other intangibles                            $11.0               $9.4
        EBITDA                                       $149.2             $148.0
 
 
 
                            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, 2000.
 
     CASH FLOW
 
     The following table reflects certain components of the Company's
 consolidated statements of cash flows for the three months ended March 31,
 2001 and 2000 (in millions):
 
                                                        Three months ended
                                                              March 31,
                                                         2001           2000
     Depreciation, amortization and depletion
      of property and equipment                         $39.3          $36.9
 
     Amortization of intangible assets                  $11.0           $9.4
 
     Capital expenditures                             $(39.2)        $(49.2)
 
     The Company defines free cash flow as net income plus depreciation,
 amortization and depletion less capital expenditures plus net changes in
 assets and liabilities resulting from operating activities.
     Capital expenditures include $.3 million and $.7 million of capitalized
 interest for the three months ended March 31, 2001 and 2000, respectively.
     As of March 31, 2001, accounts receivable were $250.6 million, net of
 allowance for doubtful accounts of $13.2 million, resulting in days sales
 outstanding of approximately 42 (or 29 days net of deferred revenue).
 
     STOCK REPURCHASE PROGRAM
 
     During 2000, the Company announced that its Board of Directors authorized
 the repurchase of up to $150.0 million of its common stock.   As of December
 31, 2000, the Company paid $50.9 million to repurchase 3,644,000 shares of its
 stock.   During the three months ended March 31, 2001, the Company paid $25.2
 million to repurchase 1,614,800 shares of its stock.  As of March 31, 2001,
 the Company had $73.9 million remaining under its repurchase programs to fund
 stock repurchases.
 
     REVENUE
     The following table reflects total revenue of the Company by revenue
 source for the three months ended March 31, 2001 and 2000 (in millions):
 
 
                                                       Three months ended
                                                            March 31,
                                                        2001          2000
 
     Collection:
       Residential                                     $113.1        $ 100.7
       Commercial                                       168.6          150.1
       Industrial                                       122.4          114.8
       Other                                             11.3           15.4
 
       Total collection                                $415.4         $381.0
 
     Transfer and disposal                              175.2          133.7
     Less: Intercompany                                (93.5)         (49.6)
       Transfer and
        disposal, net                                    81.7           84.1
 
     Other                                               38.3           36.4
     Total revenue                                     $535.4        $ 501.5
 
     The following table reflects the Company's revenue growth for the three
 months ended March 31, 2001 and 2000:
 
                                                         Three months ended
                                                               March 31,
                                                         2001           2000
     Price                                               1.4%           2.6%
     Volume                                               2.1            5.8
       Total internal growth                              3.5            8.4
     Acquisitions                                         3.3           14.7
 
       Total revenue growth                              6.8%          23.1%
 
     Price growth for the three months ended March 31, 2001 was impacted by
 commodity prices.  Excluding the effect of commodity prices, price growth was
 2.2% and total internal growth was 4.3%.
 
     INCOME TAXES
 
     Income taxes are provided based upon the Company's anticipated annual
 effective income tax rate.  During the three months ended December 31, 2000,
 the Company lowered its anticipated annual effective tax rate for fiscal 2000
 from 38.5% to 38.0%.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X88121449
 
 SOURCE  Republic Services, Inc.