Another nice day at RSG,after yesterday's earnings
Republic Services, Inc. Reports First Quarter Earnings Per Share of $.30
Thursday 04/30/2009 7:09 PM ET - Pr Newswire
Symbol Last %Chg
RSG 22.68 8.00%
As of 4:02 PM ET 5/1/09
Republic Services, Inc. (NYSE: RSG) today reported net income for the three months ended March 31, 2009 of $113.0 million, or $.30 per diluted share, compared to net income of $76.1 million, or $.41 per diluted share, for the same period in 2008. Our first quarter 2009 financial results include Allied Waste Industries, Inc. (Allied) which merged with Republic on December 5, 2008. Operating income for the three months ended March 31, 2009 was $353.0 million compared to $142.2 million for the comparable period in 2008. Operating income before depreciation, amortization, depletion and accretion for the three months ended March 31, 2009 was $598.1 million, or 29.0% of revenue compared to $220.0 million, or 28.2% of revenue in 2008.
Revenue for the three months ended March 31, 2009 increased to $2,060.5 million compared to $779.2 million for the same period in 2008. Core price for the three months ended March 31, 2009 (assuming the merger with Allied had occurred on January 1, 2008) increased 3.5%. Internal growth for the three months ended March 31, 2009 (assuming the merger with Allied had occurred on January 1, 2008) decreased 8.6% (consisting of a 3.5% price increase offset by decreases of 8.0% in core volume, 2.9% in commodity prices and 1.2% in fuel charges).
Commenting on these results, James E. O'Connor, Chairman and Chief Executive Officer of Republic Services, said, "During the first quarter, we continued to see positive results regarding the merger of Republic and Allied. Thus far, we have captured more than $75 million in annual run-rate synergy savings. We are well on our way, and remain confident in our commitment, to secure a total annual savings of at least $150 million by the end of 2010."
"The field organization has done an excellent job managing costs through improved efficiency and productivity during the economic downturn which has resulted in significant margin expansion," said Donald W. Slager, President and COO of Republic Services, Inc. "Customer service and effective pricing continue to be the primary focus of our business in 2009. We remain committed to achieving our previous pricing guidance of 4% for the full year."
In April 2009, we received approximately $332 million in proceeds from the sale of certain businesses mandated by the United States Department of Justice. These proceeds were used to repay amounts borrowed under our revolving credit facility.
Company Declares Quarterly Dividend
Republic also announced that its Board of Directors declared a regular quarterly dividend of $.19 per share for shareholders of record on July 1, 2009. The dividend will be paid on July 15, 2009.
About Republic Services, Inc.
Republic Services, Inc. is a leading provider of services in the domestic, non-hazardous solid waste industry. We provide solid waste collection, transfer, disposal and recycling services for commercial, industrial, municipal and residential customers through 400 collection companies in 40 states and Puerto Rico. We also own or operate 242 transfer stations, 213 solid waste landfills and 78 recycling facilities. Republic serves millions of residential customers under contracts with more than 3,000 municipalities for waste collection and residential services. For more information, visit the Republic Services web site at www.republicservices.com.