-- Reaffirms 2008 earnings guidance
-- Expects 2008 free cash flow of $350 million
-- Increases quarterly dividend 12 percent to $0.19 per share
FORT LAUDERDALE, Fla., July 24 /PRNewswire-FirstCall/ -- Republic
Services, Inc. (NYSE: RSG) today reported that revenue for the three months
ended June 30, 2008 increased 2.4 percent to $827.5 million compared to $808.4
million for the same period in 2007. The Company's internal growth during the
period was 3.9 percent, with a 7.0 percent increase from price, partially
offset by a 3.1 percent decrease in volume. Net income for the three months
ended June 30, 2008 was $62.3 million, or $.34 per diluted share, compared to
$87.2 million, or $0.45 per diluted share, last year. The Company's income
before income taxes for the three months ended June 30, 2008 includes a $34.0
million pre-tax charge ($21.8 million, or approximately $.12 per diluted
share, net of tax) related to environmental conditions at the Company's
Countywide Recycling and Disposal Facility in Ohio. Net income for the three
months ended June 30, 2007 includes a tax benefit of $5.0 million, or
approximately $0.03 per diluted share, related to the effective closing of the
Internal Revenue Service's audits of the Company's consolidated tax returns
for fiscal years 2001 through 2004.
Operating income for the three months ended June 30, 2008 was $119.6
million, or 14.5 percent of revenue, compared to $153.1 million, or 18.9
percent of revenue, for the same period last year. Excluding the $34.0
million charge to operating expenses for the Company's Countywide Recycling
and Disposal Facility, operating income for the three months ended June 30,
2008 would have been $153.6 million, or 18.6 percent of revenue.
Revenue for the six months ended June 30, 2008 increased 2.1 percent to
$1,606.7 million from $1,574.0 million for the same period in 2007. Net
income for the six months ended June 30, 2008 was $138.4 million, or $0.75 per
diluted share, compared to $141.1 million, or $0.72 per diluted share, for the
same period last year. The Company's income before income taxes for the six
months ended June 30, 2008 includes a $34.0 million pre-tax charge ($21.8
million, or approximately $.12 per diluted share, net of tax) related to
environmental conditions at the Company's Countywide Recycling and Disposal
Facility. The Company's income before income taxes for the six months ended
June 30, 2007 includes a $22.0 million pre-tax charge ($13.5 million, or
approximately $.07 per diluted share, net of tax) related to environmental
conditions at Countywide.
Operating income for the six months ended June 30, 2008 was $261.8
million, or 16.3 percent of revenue, compared to $267.8 million, or 17.0
percent of revenue, for the same period last year. Excluding $34.0 million
and $21.3 million of operating expenses included in the charges for the
Company's Countywide Recycling and Disposal Facility during 2008 and 2007,
respectively, operating income for the six months ended June 30, 2008 and 2007
would have been $295.8 million, or 18.4 percent of revenue, and $289.1
million, or 18.4 percent of revenue, respectively.
Financial Guidance
Republic Services also announced today that it has updated its financial
guidance for 2008.
'The Company's performance was strong during the first half of 2008,' said
James E. O'Connor, Chairman and CEO of Republic Services. 'Excluding the
charge associated with the environmental remediation project in Ohio, we are
on track to achieve the earnings guidance that we provided at the beginning of
the year. I am especially pleased to see margins holding steady despite
extensive pressure from diesel fuel costs.'
Based upon its performance for the first six months of 2008, the Company
has updated its financial guidance as follows:
-- Earnings Per Share: The Company reaffirmed earnings per share guidance
in the range of $1.78 to $1.82 per diluted share, excluding the
environmental remediation charge for Countywide.
-- Operating Margins: The Company expects margins at or above prior year
margins, excluding the environmental remediation charge.
-- Free Cash Flow: The Company expects free cash flow to be approximately
$350 million.
-- Internal Growth: The Company expects higher internal growth of
approximately 3.5 percent to 4.0 percent, with approximately 6.5
percent to 7.0 percent growth from price increases, while volume is
expected to decline by 3.0 percent.
-- Capital Spending: The Company anticipates 2008's net capital spending
of approximately $335 million.
Quarterly Dividend Increased
Republic also announced that its Board of Directors has approved a 12
percent increase in the Company's regular quarterly dividend from $0.17 per
share to $0.19 per share. The quarterly dividend of $0.19 per share will be
paid on October 15, 2008 to shareholders of record on October 1, 2008.
'The combination of solid earnings and efficient use of capital has
allowed us to increase our shareholder dividend,' said James E. O'Connor.
Share Repurchase Program
Republic reiterated the suspension of the Company's share repurchase
program due to the planned merger with Allied Waste Industries, Inc.
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 that 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.
