Republic Services, Inc.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Date of report (Date of earliest event reported) |
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July 26, 2007 |
Republic Services, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
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1-14267
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65-0716904 |
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(Commission File Number)
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(IRS Employer Identification No.) |
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110 SE 6th Street, 28th Floor, Fort Lauderdale, Florida
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33301 |
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(Address of Principal Executive Offices)
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(Zip Code) |
(954) 769-2400
(Registrants Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13d-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July 26, 2007, Republic Services, Inc. issued a press release to announce operating results
for the three and six months ended June 30, 2007, a copy of which is incorporated herein by
reference and attached hereto as Exhibit 99.1 and furnished according to this item.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
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Exhibit No. |
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Description |
99.1
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Press Release of the Company dated July 26, 2007 to announce the
operating results for the three and six months ended June 30, 2007. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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July 26, 2007 |
REPUBLIC SERVICES, INC.
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By: |
/s/ Tod C. Holmes
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Tod C. Holmes |
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Senior Vice President and
Chief Financial Officer
(Principal Financial Officer) |
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By: |
/s/ Charles F. Serianni
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Charles F. Serianni |
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Vice President and
Chief Accounting Officer
(Principal Accounting Officer) |
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3
EX-99.1 Press Release dated July 26, 2007
NEWS
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REPUBLIC CONTACTS |
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Media Inquiries:
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Will Flower
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(954) 769-6392 |
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Investor Inquiries:
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Tod Holmes
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(954) 769-2387 |
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Ed Lang
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(954) 769-3591 |
REPUBLIC SERVICES, INC. REPORTS
QUARTERLY EARNINGS OF $0.45 PER SHARE
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Company increases 2007 earnings guidance |
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Raises dividend 60 percent |
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Expands operating margins |
Fort Lauderdale, Fla., July 26, 2007 Republic Services, Inc. (NYSE: RSG) today reported net
income of $87.2 million, or $0.45 per diluted share, for the three months ended June 30, 2007,
versus $70.8 million, or $0.35 per diluted share, for the comparable period last year. 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 Services audits
of the Companys consolidated tax returns for fiscal years 2001 through 2004. Revenue in the
second quarter of 2007 grew to $808.4 million from $779.8 million for the same period in 2006.
Internal growth was 4.1 percent, consisting of a 5.2 percent price increase and a 1.1 percent
volume decline. Operating income for the three months ended June 30, 2007 increased $19.1 million
or 14.3 percent to $153.1 million, compared to $134.0 million for the same quarter last year.
Operating margin for the three months ended June 30, 2007 increased to 18.9 percent from 17.2
percent for same period in 2006.
For the six months ended June 30, 2007, net income was $141.1 million, or $0.72 per diluted share,
compared to $135.4 million, or $0.66 per diluted share, for
the comparable period last year. Revenue for the six months ended June 30, 2007 was $1,574.0
million compared to $1,517.3 million for the same period in 2006. Operating income for the six
months ended June 30, 2007 was $267.8 million compared to $256.4 million for the same period last
year. The Companys 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 estimated costs to remediate a landfill in Ohio.
Financial Guidance
Republic Services also announced today that it is increasing its 2007 guidance for earnings per
share and free cash flow to reflect the Companys performance for the first six months of 2007 and
certain current favorable business conditions.
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Earnings Per Share: The Company is raising earnings per share
guidance to a range of $1.52 to $1.55 per diluted share. The
previous guidance was a range of $1.50 to $1.52 per diluted share. |
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Free Cash Flow: The Company is increasing anticipated free cash
flow for 2007 to a range of $320 million to $325 million. The
previous guidance for free cash flow was $315 million. |
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Internal Growth: The Company is targeting price growth of
approximately 4.5 percent, excluding commodities, while volume is
expected to decline approximately 1.5 percent. |
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Capital Spending: The Company anticipates capital spending of
approximately $295 million versus the previous guidance of $310
million. This reduction in capital spending is due to lower than
anticipated volume growth. |
Quarterly Dividend and Share Repurchase Increased
Separately, Republic announced that its Board of Directors has approved a 60 percent increase in
the Companys regular quarterly dividend from $0.1067 per share to $0.17 per share. The quarterly
dividend of $0.17 per share will be paid on October 15, 2007 to shareholders of record on October
1, 2007. The Company also announced the continuation of a stock
repurchase program following the
Board of Directors authorization to repurchase an additional $250 million of Company stock in 2007
and 2008.
We
continue to realize the benefits of our pricing initiatives which are
driving our improving returns on
capital and our expanding operating margins, said James E. OConnor, Chairman and Chief Executive
Officer of Republic Services, Inc. The exceptional performance of our entire field organization
is one of the main
reasons behind our strong financial results. These results have permitted the Board of Directors
to continue Republics practice of distributing free cash flow
to, and capturing value for, our shareholders by approving an
additional $250 million for share repurchases, which is the cornerstone of our financial strategy,
and by also increasing our annual dividend by 60 percent.
Republic Services, Inc. is a leading provider of solid waste collection, transfer and disposal
services in the United States. The Companys 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 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
2
other things, whether the Companys estimates and
assumptions concerning its selected balance sheet accounts, income tax accounts, final capping, closure, post-closure
and remediation costs, available airspace, and projected costs and expenses related to the
Companys landfills and property and equipment, and labor, fuel rates and economic 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 and demand for services in
the solid waste industry; the Companys ability to manage growth; compliance with, and future
changes in, environmental regulations; the Companys ability to obtain approval from regulatory
agencies in connection with operating and expanding the Companys landfills; the ability to obtain
financing on acceptable terms to finance the Companys 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
Companys dependence on key personnel; general economic and market conditions including, but not
limited to, inflation and changes in commodity pricing, fuel, labor, risk and health insurance, and
other variable costs that are generally not within the control of the Company; dependence on large,
long-term collection, transfer and disposal contracts; dependence on acquisitions for growth; risks
associated with undisclosed liabilities of acquired businesses; risks associated with pending legal
proceedings; and other factors contained in the Companys filings with the Securities and Exchange
Commission.
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3
REPUBLIC SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
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June 30, |
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December 31, |
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2007 |
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2006 (1) |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
25.9 |
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$ |
29.1 |
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Accounts receivable, less allowance for doubtful accounts
of $13.9 and $18.8, respectively |
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312.3 |
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293.8 |
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Other current assets |
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85.4 |
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70.5 |
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Total Current Assets |
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423.6 |
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393.4 |
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RESTRICTED CASH |
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129.4 |
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153.3 |
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PROPERTY AND EQUIPMENT, NET |
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2,135.5 |
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2,163.8 |
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GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
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1,589.2 |
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1,593.9 |
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OTHER ASSETS |
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138.5 |
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125.0 |
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$ |
4,416.2 |
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$ |
4,429.4 |
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LIABILITIES AND STOCKHOLDERS EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable, deferred revenue and other current
liabilities |
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$ |
569.9 |
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$ |
599.6 |
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Notes payable and current maturities of long-term debt |
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2.3 |
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2.6 |
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Total Current Liabilities |
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572.2 |
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602.2 |
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LONG-TERM DEBT, NET OF CURRENT MATURITIES |
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1,496.0 |
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1,544.6 |
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ACCRUED LANDFILL AND ENVIRONMENTAL COSTS |
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286.6 |
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260.7 |
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OTHER LIABILITIES |
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673.0 |
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599.8 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS EQUITY: |
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Preferred stock, par value $.01 per share; 50,000,000
shares
authorized; none issued |
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Common stock, par value $.01 per share; 750,000,000
shares
authorized; 194,945,198 and 193,711,579 issued,
including shares held in treasury, respectively |
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1.9 |
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1.9 |
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Additional paid-in capital |
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15.9 |
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1,617.5 |
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Retained earnings |
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1,486.6 |
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1,602.6 |
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Treasury stock, at cost (4,027,542 and 0 shares,
respectively) |
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(120.6 |
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(1,800.8 |
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Accumulated other comprehensive income, net of tax |
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4.6 |
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0.9 |
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Total Stockholders Equity |
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1,388.4 |
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1,422.1 |
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$ |
4,416.2 |
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$ |
4,429.4 |
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(1) |
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Derived from the December 31, 2006 consolidated balance sheet. |
4
REPUBLIC SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2007 |
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2006 |
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2007 |
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2006 |
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Revenue |
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$ |
808.4 |
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$ |
779.8 |
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$ |
1,574.0 |
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$ |
1,517.3 |
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Expenses: |
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Cost of operations |
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496.3 |
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492.5 |
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983.0 |
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948.9 |
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Depreciation, amortization and
depletion |
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76.9 |
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74.4 |
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155.9 |
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147.5 |
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Accretion |
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4.2 |
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3.8 |
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8.3 |
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7.6 |
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Selling, general and administrative |
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77.9 |
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75.1 |
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159.0 |
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156.9 |
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Operating income |
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153.1 |
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134.0 |
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267.8 |
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256.4 |
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Interest expense, net |
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(20.1 |
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(20.5 |
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(40.8 |
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(39.3 |
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Other income (expense), net |
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0.7 |
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0.7 |
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1.1 |
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1.3 |
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Income before income taxes |
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133.7 |
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114.2 |
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228.1 |
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218.4 |
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Provision for income taxes |
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46.5 |
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43.4 |
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87.0 |
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83.0 |
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Net income |
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$ |
87.2 |
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$ |
70.8 |
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$ |
141.1 |
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$ |
135.4 |
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Basic earnings per share |
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$ |
0.45 |
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$ |
0.35 |
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$ |
0.73 |
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$ |
0.67 |
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Weighted average common shares
outstanding |
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192.7 |
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199.6 |
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193.2 |
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200.9 |
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Diluted earnings per share |
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$ |
0.45 |
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$ |
0.35 |
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$ |
0.72 |
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$ |
0.66 |
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Weighted average common and common
equivalent shares outstanding |
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194.6 |
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202.2 |
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195.1 |
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203.7 |
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Cash dividends per common share |
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$ |
0.1067 |
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$ |
0.0933 |
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$ |
0.2134 |
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$ |
0.1866 |
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5
REPUBLIC SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
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Six Months Ended June 30, |
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2007 |
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2006 |
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CASH PROVIDED BY OPERATING ACTIVITIES: |
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Net income |
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$ |
141.1 |
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$ |
135.4 |
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Adjustments to reconcile net income to net cash provided by
operating activities: |
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Depreciation, amortization, and depletion |
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155.9 |
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147.5 |
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Accretion |
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8.3 |
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7.6 |
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Other |
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15.1 |
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20.0 |
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Change in operating assets and liabilities, net of effects from
business acquisitions and dispositions |
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(10.7 |
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(163.7 |
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309.7 |
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146.8 |
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CASH USED IN INVESTING ACTIVITIES: |
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Purchases of property and equipment |
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(113.1 |
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(178.2 |
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Proceeds from sales of property and equipment |
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2.7 |
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8.6 |
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Cash used in business acquisitions, net of cash acquired |
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(3.3 |
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Cash proceeds from business dispositions |
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4.9 |
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3.8 |
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Change in restricted cash |
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23.9 |
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22.8 |
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Other |
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(0.3 |
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(81.6 |
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(146.6 |
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CASH USED IN FINANCING ACTIVITIES: |
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Proceeds from notes payable and long-term debt |
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105.0 |
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270.0 |
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Payments of notes payable and long-term debt |
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(151.7 |
) |
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(76.7 |
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Issuances of common stock |
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19.3 |
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59.3 |
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Excess income tax benefit from stock option exercises |
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2.8 |
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10.6 |
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Purchases of common stock for treasury |
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(165.1 |
) |
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(325.8 |
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Cash dividends |
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(41.6 |
) |
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(38.7 |
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(231.3 |
) |
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(101.3 |
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DECREASE IN CASH AND CASH EQUIVALENTS |
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(3.2 |
) |
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(101.1 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
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29.1 |
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131.8 |
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CASH AND CASH EQUIVALENTS AT END OF PERIOD |
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$ |
25.9 |
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$ |
30.7 |
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6
REPUBLIC SERVICES, INC.
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
The following information should be read in conjunction with the Companys audited
Consolidated Financial Statements and notes thereto appearing in the Companys Form 10-K as of and
for the year ended December 31, 2006. It should also be read in conjunction with the Companys
Unaudited Condensed Consolidated Financial Statements and notes thereto appearing in the Companys
Form 10-Q as of and for the three months ended March 31, 2007.
STOCK SPLIT
In January 2007, the Companys Board of Directors approved a 3-for-2 stock split effective on
March 16, 2007, to stockholders of record as of March 5, 2007. The Company distributed
approximately 64.5 million shares from treasury stock to effect the stock split. The Companys
shares of treasury stock, earnings per share and weighted average common and common equivalent
shares outstanding have been retroactively adjusted for all periods to reflect the stock split.
INCOME TAXES
The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty
in Income Taxes (the Interpretation) effective January 1, 2007, as required. As a result of
adopting the Interpretation, the Company recorded a $5.6 million cumulative adjustment to decrease
retained earnings.
During the first quarter of 2007, the Company recorded $4.2 million of additional income taxes
related to the resolution of various income tax matters. During the second quarter of 2007, the
Company recorded a $5.0 million reduction in income taxes related to the resolution of various
income tax matters, which effectively closes the Internal Revenue Services audits of the Companys
consolidated tax returns for fiscal years 2001 through 2004. The Company expects its effective
tax rate for the remainder of 2007 to be approximately 38.5%.
CHARGE FOR LANDFILL MATTER
During the first quarter of 2007, the Company recorded a pre-tax charge of $22.0 million
($13.5 million net of tax), related to estimated costs to comply with Final Findings and Orders
(the F&Os) issued by the Ohio Environmental Protection Agency (OEPA) in response to
environmental conditions at the Companys Countywide Recycling and Disposal Facility (Countywide)
in East Sparta, Ohio. The Company will also incur approximately $3.3 million of additional
amortization and depletion expense during 2007 associated with a reduction of estimated remaining
available airspace at this landfill as a result of the OEPAs F&Os, of which $1.6 million has been
recorded through the six months ended June 30, 2007.
OPERATING INCOME BEFORE DEPRECIATION, AMORTIZATION, DEPLETION AND ACCRETION
Operating income before depreciation, amortization, depletion and accretion, which is not a
measure determined in accordance with U.S. generally accepted accounting principles (GAAP), for the
three and six months ended June 30, 2007 and 2006 is calculated as follows (in millions):
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Net income |
|
$ |
87.2 |
|
|
$ |
70.8 |
|
|
$ |
141.1 |
|
|
$ |
135.4 |
|
Provision for income taxes |
|
|
46.5 |
|
|
|
43.4 |
|
|
|
87.0 |
|
|
|
83.0 |
|
Other (income) expense, net |
|
|
(.7 |
) |
|
|
(.7 |
) |
|
|
(1.1 |
) |
|
|
(1.3 |
) |
Interest expense, net |
|
|
20.1 |
|
|
|
20.5 |
|
|
|
40.8 |
|
|
|
39.3 |
|
Depreciation, amortization and depletion |
|
|
76.9 |
|
|
|
74.4 |
|
|
|
155.9 |
|
|
|
147.5 |
|
Accretion |
|
|
4.2 |
|
|
|
3.8 |
|
|
|
8.3 |
|
|
|
7.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before depreciation, amortization,
depletion and accretion |
|
$ |
234.2 |
|
|
$ |
212.2 |
|
|
$ |
432.0 |
|
|
$ |
411.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company believes that the presentation of operating income before depreciation,
amortization, depletion and accretion is useful to investors because it provides important
information concerning the Companys operating performance exclusive of certain non-cash costs.
Operating income before depreciation, amortization, depletion and accretion demonstrates the
Companys ability to execute its financial strategy which includes reinvesting in existing capital
assets to ensure a high level of customer service, investing in capital assets to facilitate growth
in the Companys customer base and services provided, pursuing strategic acquisitions that augment
the Companys existing business platform, repurchasing shares of common stock at prices that
provide value to the Companys shareholders, paying cash dividends, maintaining the Companys
investment grade rating and minimizing debt. This measure has material limitations. Although
depreciation, amortization, depletion and accretion are considered operating costs in accordance
with GAAP, they represent the allocation of non-cash costs generally associated with long-lived
assets acquired or constructed in prior years.
CASH FLOW
During the six months ended June 30, 2007, cash provided by operating activities was $309.7
million, cash used in investing activities was $81.6 million and cash used in financing activities
was $231.3 million.
The Company defines free cash flow, which is not a measure determined in accordance with GAAP,
as cash provided by operating activities less purchases of property and equipment plus proceeds
from sales of property and equipment as presented in the Companys consolidated statements of cash
flows. The Companys free cash flow for the three and six months ended June 30, 2007 is calculated
as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, 2007 |
|
|
June 30, 2007 |
|
Cash provided by operating activities |
|
$ |
210.5 |
|
|
$ |
309.7 |
|
Purchases of property and equipment |
|
|
(69.0 |
) |
|
|
(113.1 |
) |
Proceeds from sales of property and
equipment |
|
|
1.7 |
|
|
|
2.7 |
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
143.2 |
|
|
$ |
199.3 |
|
|
|
|
|
|
|
|
The Company believes that the presentation of free cash flow provides useful information
regarding the Companys recurring cash provided by operating activities after expenditures for
property and equipment, net of proceeds from sales of property and equipment. It also demonstrates
the Companys ability to execute its financial strategy as previously discussed and is a key metric
used by the Company to determine compensation. The presentation of free cash flow has material
limitations. Free cash flow does not represent the Companys cash flow available for discretionary
expenditures because it excludes certain expenditures that are required or that the Company has
committed to such as debt service requirements and dividend payments. The Companys definition of
free cash flow may not be comparable to similarly titled measures presented by other companies.
Capital expenditures include $1.3 million capitalized interest for the six months ended June
30, 2007.
8
As of June 30, 2007, accounts receivable were $312.3 million, net of allowance for doubtful
accounts of $13.9 million, resulting in days sales outstanding of approximately 34.6 (or 22.4 net
of deferred revenue). In the second quarter of 2007, the Company recorded a $4.3 million reduction
to its allowance for doubtful accounts as a result of the Company
refining its estimate of its allowance for doubtful accounts based on
its historical collection experience.
STOCK REPURCHASE PROGRAM
During the three months ended June 30, 2007, the Company paid $94.4 million to repurchase 3.1
million shares of its common stock. During the six months ended June 30, 2007, the Company
repurchased a total of 4.8 million shares of its common stock for $165.1 million. As of June 30,
2007, the Company was authorized to repurchase up to an additional $84.1 million of its common
stock under its existing stock repurchase program. In July 2007, the Companys Board of Directors
authorized the repurchase of an additional $250 million of Company stock. Combined, Republic has
the authority to repurchase $334.1 million of its common stock.
CASH DIVIDENDS
In April 2007, the Company paid a cash dividend of $20.7 million to shareholders of record as
of April 2, 2007. As of June 30, 2007, the Company recorded a dividend payable of $20.5 million to
shareholders of record at the close of business on July 2, 2007, which has been paid. In July
2007, the Companys Board of Directors declared a regular quarterly dividend of $.17 per share
payable to shareholders of record as of October 1, 2007.
REVENUE
The following table reflects total revenue of the Company by revenue source for the three and
six months ended June 30, 2007 and 2006 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2007 |
|
|
2006 (1) |
|
|
2007 |
|
|
2006 (1) |
|
Collection: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
201.6 |
|
|
|
188.4 |
|
|
|
397.4 |
|
|
|
371.9 |
|
Commercial |
|
|
233.6 |
|
|
|
218.1 |
|
|
|
464.0 |
|
|
|
432.1 |
|
Industrial |
|
|
166.8 |
|
|
|
167.6 |
|
|
|
322.5 |
|
|
|
325.2 |
|
Other |
|
|
5.0 |
|
|
|
5.6 |
|
|
|
9.8 |
|
|
|
11.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total collection |
|
|
607.0 |
|
|
|
579.7 |
|
|
|
1,193.7 |
|
|
|
1,140.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer and disposal |
|
|
313.1 |
|
|
|
309.3 |
|
|
|
591.9 |
|
|
|
587.2 |
|
Less: Intercompany |
|
|
(160.2 |
) |
|
|
(153.2 |
) |
|
|
(305.2 |
) |
|
|
(293.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer and disposal, net |
|
|
152.9 |
|
|
|
156.1 |
|
|
|
286.7 |
|
|
|
293.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
48.5 |
|
|
|
44.0 |
|
|
|
93.6 |
|
|
|
82.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
808.4 |
|
|
$ |
779.8 |
|
|
$ |
1,574.0 |
|
|
$ |
1,517.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain amounts for 2006 have been reclassified to conform to the 2007 presentation. |
9
The following table reflects the Companys revenue growth for the three and six months ended June
30, 2007 and 2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Core price |
|
|
4.0 |
% |
|
|
3.3 |
% |
|
|
4.2 |
% |
|
|
3.2 |
% |
Fuel surcharges |
|
|
.1 |
|
|
|
1.5 |
|
|
|
.1 |
|
|
|
1.4 |
|
Environmental fee |
|
|
.3 |
|
|
|
.3 |
|
|
|
.4 |
|
|
|
.4 |
|
Commodities |
|
|
.8 |
|
|
|
(.2 |
) |
|
|
.8 |
|
|
|
(.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total price |
|
|
5.2 |
|
|
|
4.9 |
|
|
|
5.5 |
|
|
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core volume |
|
|
(.9 |
) |
|
|
3.7 |
|
|
|
(1.3 |
) |
|
|
4.3 |
|
Non-core volume |
|
|
(.2 |
) |
|
|
(.1 |
) |
|
|
(.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total volume |
|
|
(1.1 |
) |
|
|
3.6 |
|
|
|
(1.4 |
) |
|
|
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total internal growth |
|
|
4.1 |
|
|
|
8.5 |
|
|
|
4.1 |
|
|
|
8.9 |
|
Acquisitions, net of divestitures |
|
|
(.5 |
) |
|
|
(.1 |
) |
|
|
(.4 |
) |
|
|
(.3 |
) |
Taxes |
|
|
.1 |
|
|
|
.1 |
|
|
|
|
|
|
|
.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue growth |
|
|
3.7 |
% |
|
|
8.5 |
% |
|
|
3.7 |
% |
|
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
10