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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 FIRST
QUARTER EARNINGS PER SHARE OF $.29
- FREE CASH FLOW ON TARGET
FORT LAUDERDALE, FL, APRIL 30, 2001 ... 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."
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"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.
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REPUBLIC SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Ended March 31,
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2001 2000
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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
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Operating income 98.9 101.7
Interest expense, net (20.2) (20.3)
Other income (expense), net 1.3 0.2
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Income before income taxes 80.0 81.6
Provision for income taxes 30.4 31.4
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Net income $ 49.6 $ 50.2
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Basic and diluted earnings per share $ 0.29 $ 0.29
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Weighted average common shares 171.8 175.5
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Amortization of goodwill and other intangibles $ 11.0 $ 9.4
EBITDA $ 149.2 $ 148.0
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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, 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
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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.
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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,
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2001 2000
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Collection:
Residential $113.1 $100.7
Commercial 168.6 150.1
Industrial 122.4 114.8
Other 11.3 15.4
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Total collection 415.4 381.0
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Transfer and disposal 175.2 133.7
Less: Intercompany (93.5) (49.6)
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Transfer and
disposal, net 81.7 84.1
Other 38.3 36.4
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Total revenue $535.4 $501.5
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The following table reflects the Company's revenue growth for the three
months ended March 31, 2001 and 2000:
Three months ended
March 31,
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2001 2000
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Price 1.4% 2.6%
Volume 2.1 5.8
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Total internal growth 3.5 8.4
Acquisitions 3.3 14.7
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Total revenue growth 6.8% 23.1%
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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%.