Date: July 26, 2006
Source: Republic Services, Inc.
Republic Services, Inc. Reports Quarterly Earnings and Increases Earnings Guidance
Record earnings of $0.52 per share
* Internal growth of 8.5 percent
* Operating profit margins expand
* Dividend increased by 14 percent
Republic Services, Inc. (NYSE: RSG) today reported net income of $70.8 million, or $0.52 per diluted share, for the three months ended June 30, 2006, versus $64.4 million, or $0.44 per diluted share, for the comparable period last year. Revenue in the second quarter of 2006 grew to $779.8 million from $718.6 million for the same period in 2005. This 8.5 percent increase in revenue consists of 4.9 percent from price and 3.6 percent from volume. Operating income for the three months ended June 30, 2006 was $134.0 million, compared to $122.9 million for the same quarter last year. Operating margins for the three months ended June 30, 2006 increased to 17.2 percent from 17.1 percent for same period in 2005.
For the six months ended June 30, 2006, net income was $135.4 million, or $0.98 per diluted share, compared to $129.9 million, or $0.88 per diluted share, for the comparable period last year. Revenue for the six months ended June 30, 2006 was $1,517.3 million compared to $1,395.8 million for the same period in 2005. Operating income for the six months ended June 30, 2006 was $256.4 million compared to $242.4 million for the same period last year.
Republic Services also announced today that it is increasing its 2006 guidance for free cash flow and earnings per share to reflect the Company's first six month performance and current favorable business conditions.
Free Cash Flow: The Company increased the range of anticipated normalized free cash flow for 2006 to approximately $280 million to $290 million. The previous guidance for free cash flow was $270 million to $280 million.
Earnings Per Share: The Company raised earnings per share guidance to a new range of $1.94 to $1.97 per diluted share. The previous guidance was a range of $1.90 to $1.93 per diluted share.
Separately, Republic announced that its Board of Directors has approved a 14 percent increase in the Company's regular quarterly dividend from $0.14 per share to $0.16 per share. The quarterly dividend of $0.16 per share will be paid on October 16, 2006 to shareholders of record on October 2, 2006.
"We are focused on growing free cash flow and expanding our operating profit margins," said James E. O'Connor, Chairman and Chief Executive Officer of Republic Services, Inc. "Our increase in earnings guidance is based on our performance during the first six months of 2006 and our expectation that we will continue to experience favorable price and volume growth in the future. Our continued success in the growth of free cash flow and the expansion of our operating margin resulted in the Boards' decision to reward shareholders with a 14 percent increase in the quarterly dividend."
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.
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Republic Services, Inc. to Increase Dividend By 14 Percent
Republic Services, Inc. (NYSE: RSG) announced that its Board of Directors has approved a 14 percent increase in the Company's regular quarterly dividend program from $0.14 per share to $0.16 per share. The quarterly dividend of $0.16 per share will be paid on October 16, 2006 to shareholders of record on October 2, 2006.
"This is the third consecutive annual increase of our dividend," said James E. O'Connor, Chairman and Chief Executive Officer of Republic Services, Inc. "Our stockholders continue to benefit from the Company's successes as our people remain focused on growing free cash flow and expanding margins."
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.
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