News Releases

Republic Services, Inc. Reports Third Quarter Earnings
Price growth of 4.9 percent
Free cash flow on target to achieve full year guidance
PRNewswire-FirstCall
FORT LAUDERDALE, Fla.

Republic Services, Inc. today reported that revenue in the third quarter of 2007 increased 2.4 percent to $806.2 million from $787.1 million for the same period in 2006. Net income for the three months ended September 30, 2007 was $67.0 million, or $0.35 per diluted share, versus net income of $77.3 million, or $0.39 per diluted share, for the comparable period last year. The Company's income before income taxes for the three months ended September 30, 2007 included a $32.9 million pre-tax charge ($20.3 million, or $0.11 per diluted share, net of tax) related to an increase in the estimated costs to comply with the Final Findings and Orders issued by the Ohio Environmental Protection Agency in response to environmental conditions at the Company's Countywide Recycling and Disposal Facility in East Sparta, Ohio and an increase in estimated leachate disposal costs and costs to upgrade onsite equipment that collects and treats leachate at the Company's closed disposal facility in Contra Costa County, California. Net income for the three months ended September 30, 2006 included a $5.1 million tax benefit related to the resolution of various income tax matters.

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Operating income for the three months ended September 30, 2007 was $128.3 million, or 15.9 percent of revenue, compared to operating income of $133.4 million, or 16.9 percent of revenue, for the same period last year. Excluding the $32.9 million pre-tax charge for the Company's Countywide and Contra Costa disposal facilities, operating income for the three months ended September 30, 2007 would have been $161.2 million, or 20.0 percent of revenue.

Revenue for the nine months ended September 30, 2007 increased 3.3 percent to $2,380.2 million from $2,304.4 million for the same period in 2006. Net income for the nine months ended September 30, 2007 was $208.1 million, or $1.08 per diluted share, versus net income of $212.7 million, or $1.05 per diluted share, for the comparable period last year. The Company's income before income taxes for the nine months ended September 30, 2007 includes $54.9 million of pre-tax charges ($33.8 million, or $.18 per diluted share, net of tax) related to estimated increases in costs to remediate landfills in Ohio and California. Net income for the nine months ended September 30, 2006 included a $5.1 million tax benefit related to the resolution of various income tax matters. Operating income for the nine months ended September 30, 2007 was $396.1 million, or 16.6 percent of revenue, compared to operating income of $389.8 million, or 16.9 percent of revenue, for the same period last year. Excluding the $54.2 million of operating expenses included in the charge for the costs to remediate two of the Company's landfills in Ohio and California, operating income for the nine months ended September 30, 2007 would have been $450.3 million, or 18.9 percent of revenue.

The Company recently announced an increase in its 2007 earnings guidance to a range of $1.65 to $1.66 per diluted share, excluding $54.9 million of pre-tax charges ($33.8 million, or $.18 per diluted share, net of tax) related to estimated increases in costs to remediate landfills in Ohio and California. Including these charges, the Company expects to report earnings in a range of $1.47 to $1.48 per diluted share for the year ending December 31, 2007.

"Pricing remains strong and, excluding the landfill charges, third quarter operating margins were 20 percent," said James E. O'Connor, Chairman and Chief Executive Officer of Republic Services, Inc. "The continued strength we have seen in our business has allowed us to increase our earnings guidance twice this year. We currently believe that 2007 earnings per diluted share will be in the range of $1.65 to $1.66, excluding the $0.18 per diluted share of landfill charges recorded during the first and third quarters."

Quarterly Dividend

Republic Services also announced that its Board of Directors declared a regular quarterly dividend of $0.17 per share for shareholders of record on January 2, 2008. The dividend will be paid on January 16, 2008.

Stock Repurchase Program

Since 2000, Republic has repurchased $2.1 billion worth of Republic Services' shares. During the three months ended September 30, 2007, Republic Services repurchased 4.2 million shares of common stock for $127.0 million. For the nine months ended September 30, 2007, Republic Services repurchased 9.0 million shares of stock for $292.1 million.

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 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 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 Company's landfills and
      property and equipment, and labor, fuel rates and economic and
      inflationary trends, turn out to be correct or appropriate;

   -- 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 Company's ability to manage growth;

   -- compliance with, and future changes in, environmental regulations;

   -- the Company's ability to obtain approvals from regulatory agencies in
      connection with operating and expanding 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 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 control of the Company;

   -- The Company's dependence on large, long-term collection, transfer and
      disposal contracts;

   -- The Company's 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 Company's filings with the Securities
      and Exchange Commission.



                           REPUBLIC SERVICES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                      (in millions, except share data)

                                             September 30,      December 31,
                                                 2007             2006 (1)
                                              (Unaudited)

                 ASSETS
  CURRENT ASSETS:
    Cash and cash equivalents                      $22.6             $29.1
    Accounts receivable, less allowance
     for doubtful accounts of $14.3 and $18.8,
     respectively                                  320.1             293.8
    Other current assets                            90.0              70.5
       Total Current Assets                        432.7             393.4

  RESTRICTED CASH                                  202.2             153.3
  PROPERTY AND EQUIPMENT, NET                    2,137.0           2,163.8
  GOODWILL AND OTHER INTANGIBLE ASSETS, NET      1,589.0           1,593.9
  OTHER ASSETS                                     137.1             125.0
                                                $4,498.0          $4,429.4
       LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES:
    Accounts payable, deferred revenue
     and other current liabilities                $554.5            $599.6
    Notes payable and current maturities
     of long-term debt                               2.2               2.6
       Total Current Liabilities                   556.7             602.2

  LONG-TERM DEBT, NET OF CURRENT
   MATURITIES                                    1,654.0           1,544.6
  ACCRUED LANDFILL AND ENVIRONMENTAL
   COSTS                                           300.0             260.7
  OTHER LIABILITIES                                680.1             599.8
  COMMITMENTS AND CONTINGENCIES
  STOCKHOLDERS' EQUITY:
    Preferred stock, par value $.01 per
     share; 50,000,000 shares
     authorized; none issued                           -                 -
    Common stock, par value $.01 per
     share; 750,000,000 shares
     authorized; 195,297,630 and
     193,711,579 issued, including shares
     held in treasury, respectively                  1.9               1.9
    Additional paid-in capital                      25.9           1,617.5
    Retained earnings                            1,521.8           1,602.6
    Treasury stock, at cost (8,207,792
     and 0 shares, respectively)                  (247.6)         (1,800.8)
    Accumulated other comprehensive
     income, net of tax                              5.2               0.9
       Total Stockholders' Equity                1,307.2           1,422.1
                                                $4,498.0          $4,429.4

  (1)  Derived from the December 31, 2006 consolidated balance sheet.



                           REPUBLIC SERVICES, INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                     (in millions, except per share data)

                                      Three Months Ended Nine Months Ended
                                        September 30,      September 30,
                                        2007     2006      2007      2006


     Revenue                            $806.2   $787.1  $2,380.2  $2,304.4

     Expenses:
       Cost of operations                518.8    493.2   1,501.8   1,442.1
       Depreciation, amortization and
        depletion                         78.0     76.9     233.9     224.4
       Accretion                           4.3      4.0      12.6      11.6
       Selling, general and
        administrative                    76.8     79.6     235.8     236.5

     Operating income                    128.3    133.4     396.1     389.8

     Interest expense, net               (20.8)   (20.3)    (61.6)    (59.6)
     Other income (expense), net           1.5      3.3       2.6       4.6

     Income before income taxes          109.0    116.4     337.1     334.8

     Provision for income taxes           42.0     39.1     129.0     122.1

     Net income                          $67.0    $77.3    $208.1    $212.7


     Basic earnings per share            $0.36    $0.39     $1.09     $1.07

     Weighted average common shares
      outstanding                        187.8    196.3     191.4     199.3


     Diluted earnings per share          $0.35    $0.39     $1.08     $1.05

     Weighted average common and
      common equivalent shares
      outstanding                        189.7    198.4     193.3     201.9


     Cash dividends per common share   $0.1700  $0.1067   $0.3834   $0.2933



                           REPUBLIC SERVICES, INC.
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in millions)

                                             Nine Months Ended September 30,
                                                  2007              2006

  CASH PROVIDED BY OPERATING ACTIVITIES:
    Net income                                    $208.1            $212.7
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
       Depreciation, amortization, and
        depletion                                  233.9             224.4
       Accretion                                    12.6              11.6
       Other                                        34.5              31.4
       Change in operating assets and
        liabilities, net of effects from
        business acquisitions and
        dispositions                               (18.5)           (157.1)
                                                   470.6             323.0
  CASH USED IN INVESTING ACTIVITIES:
    Purchases of property and equipment           (216.0)           (264.3)
    Proceeds from sales of property and
     equipment                                       4.7              17.5
    Cash used in business acquisitions,
     net of cash acquired                           (1.9)             (2.2)
    Cash proceeds from business
     dispositions, net of  cash disposed             4.9               3.8
    Change in restricted cash                      (48.8)             47.3
    Other                                            -                (0.7)
                                                  (257.1)           (198.6)
  CASH USED IN FINANCING ACTIVITIES:
    Proceeds from notes payable and long-
     term debt                                     307.5             327.0
    Payments of notes payable and long-
     term debt                                    (202.1)           (134.2)
    Issuances of common stock                       24.6              63.9
    Excess income tax benefit from stock
     option exercises                                4.1              11.5
    Purchases of common stock for
     treasury                                     (292.1)           (417.7)
    Cash dividends paid                            (62.0)            (57.4)
                                                  (220.0)           (206.9)
  DECREASE IN CASH AND CASH EQUIVALENTS             (6.5)            (82.5)
  CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                              29.1             131.8

  CASH AND CASH EQUIVALENTS AT END OF
   PERIOD                                          $22.6             $49.3



                         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, 2006. It should also be read in conjunction with the Company's Unaudited Condensed Consolidated Financial Statements and notes thereto appearing in the Company's Form 10-Q as of and for the six months ended June 30, 2007.

STOCK SPLIT

In January 2007, the Company's 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 Company's 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 Service's audits of the Company's 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%.

CHARGES FOR LANDFILL MATTERS

During the first quarter of 2007, the Company recorded a pre-tax charge of $22.0 million ($13.5 million, or $.07 per diluted share, net of tax), related to estimated costs the Company believed would be required 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 Company's 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 OEPA's F&Os, of which $2.5 million has been recorded through the nine months ended September 30, 2007.

The Company has complied with and will continue to comply with the F&Os. However, while there are indications that the reaction is beginning to subside, the Company nevertheless recently agreed with the OEPA to take certain additional remedial actions at Countywide, including creating multiple barriers in the landfill to further isolate the reaction. Consequently, the Company recorded an additional $23.3 million charge ($14.4 million, or $.08 per diluted share, net of tax) during the three months ended September 30, 2007. The majority of these additional costs will be paid during fiscal 2008. The Company is vigorously pursuing financial contributions from third parties for its costs to comply with the F&Os and the additional remedial actions.

Also during the third quarter of 2007, the Company recorded a pre-tax charge of $9.6 million ($5.9 million, or $.03 per diluted share, net of tax) associated with an increase in estimated leachate disposal costs and costs to upgrade onsite equipment that captures and treats leachate at the Company's closed disposal facility in Contra Costa County, California. These additional remediation costs are attributable to a recently signed consent agreement with the California Department of Toxic Substance Control. The majority of these additional costs will be incurred during fiscal 2008.

It is reasonably possible that the Company will need to adjust the charges noted above to reflect the effects of new or additional information, to the extent that such information impacts the costs, timing or duration of the required actions. Future changes in the Company's estimates of the costs, timing or duration of the required actions could have a material adverse effect on the Company's financial position, results of operations or cash flows.

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 nine months ended September 30, 2007 and 2006 is calculated as follows (in millions):

                                    Three months          Nine months
                                       ended                 ended
                                    September 30,         September 30,
                                  2007       2006        2007       2006

  Net income                     $67.0      $77.3      $208.1     $212.7
  Provision for income taxes      42.0       39.1       129.0      122.1
  Other (income) expense, net     (1.5)      (3.3)       (2.6)      (4.6)
  Interest expense, net           20.8       20.3        61.6       59.6
  Depreciation, amortization
   and depletion                  78.0       76.9       233.9      224.4
  Accretion                        4.3        4.0        12.6       11.6
    Operating income before
     depreciation,
     amortization, depletion
     and accretion              $210.6     $214.3      $642.6     $625.8



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 Company's operating performance exclusive of certain non-cash costs. Operating income before depreciation, amortization, depletion and accretion demonstrates the Company's 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 Company's customer base and services provided, pursuing strategic acquisitions that augment the Company's existing business platform, repurchasing shares of common stock at prices that provide value to the Company's shareholders, paying cash dividends, maintaining the Company's 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 nine months ended September 30, 2007, cash provided by operating activities was $470.6 million, cash used in investing activities was $257.1 million and cash used in financing activities was $220.0 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 Company's consolidated statements of cash flows. The Company's free cash flow for the nine months ended September 30, 2007 and 2006 is calculated as follows (in millions):

                                           Nine months       Nine months
                                              ended             ended
                                          September 30,     September 30,
                                              2007              2006

  Cash provided by operating activities      $470.6             $323.0
  Purchases of property and equipment        (216.0)            (264.3)
  Proceeds from sales of property and
   equipment                                    4.7               17.5
  Free cash flow                             $259.3              $76.2



The change in cash provided by operating activities during the periods presented is primarily due to the payment of $83.0 million for income taxes made during the nine months ended September 30, 2006 related to fiscal 2005 that had been deferred as a result of an Internal Revenue Service notice issued in response to Hurricane Katrina.

Purchases of property and equipment as reflected in the Company's consolidated statements of cash flows and the free cash flow presented above represent amounts paid during the period for such expenditures. A reconciliation of property and equipment reflected in the consolidated statements of cash flows to property and equipment received during the period is as follows (in millions):

                                           Nine months      Nine months
                                             ended            ended
                                          September 30,    September 30,
                                             2007             2006

  Purchases of property and equipment
   in the consolidated statements
   of cash flows                            $216.0            $264.3
  Adjustment for property and
   equipment received during the
   prior period but paid for in the
   following period, net                     (32.3)            (22.2)
  Property and equipment received
   during the current period                $183.7            $242.1



The adjustments noted above do not affect either the Company's net change in cash and cash equivalents as reflected in its consolidated statements of cash flows or its free cash flow.

The Company believes that the presentation of free cash flow provides useful information regarding the Company's 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 Company's 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 Company's 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 Company's definition of free cash flow may not be comparable to similarly titled measures presented by other companies.

Capital expenditures include $2.1 million of capitalized interest for the nine months ended September 30, 2007.

As of September 30, 2007, accounts receivable were $320.1 million, net of allowance for doubtful accounts of $14.3 million, resulting in days sales outstanding of approximately 35.5 (or 23.0 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 September 30, 2007, the Company paid $127.0 million to repurchase 4.2 million shares of its common stock. During the nine months ended September 30, 2007, the Company repurchased a total of 9.0 million shares of its common stock for $292.1 million. As of September 30, 2007, the Company was authorized to repurchase up to an additional $207.1 million of its common stock under its existing stock repurchase program.

CASH DIVIDENDS

In July 2007, the Company paid a cash dividend of $20.5 million to shareholders of record as of July 2, 2007. As of September 30, 2007, the Company recorded a dividend payable of $31.8 million to shareholders of record at the close of business on October 2, 2007, which has been paid. In October 2007, the Company's Board of Directors declared a regular quarterly dividend of $.17 per share payable to shareholders of record as of January 2, 2008.

REVENUE

The following table reflects total revenue of the Company by revenue source for the three and nine months ended September 30, 2007 and 2006 (in millions):

                               Three months             Nine months
                                  ended                    ended
                               September 30,           September 30,
                            2007        2006(1)       2007       2006(1)

  Collection:
    Residential             $201.3      $193.0        $598.7     $564.9
    Commercial               237.8       224.0         701.8      656.1
    Industrial               165.8       169.9         488.3      495.1
    Other                      4.9         5.2          14.7       16.9
      Total collection       609.8       592.1       1,803.5    1,733.0

  Transfer and disposal      307.6       305.6         899.5      892.8
  Less: Intercompany        (156.7)     (149.9)       (461.9)    (443.6)
    Transfer and disposal,
     net                     150.9       155.7         437.6      449.2

  Other                       45.5        39.3         139.1      122.2
      Total revenue          806.2       787.1       2,380.2    2,304.4


  (1) Certain amounts for 2006 have been reclassified to conform to the 2007
      presentation.



The following table reflects the Company's revenue growth for the three and nine months ended September 30, 2007 and 2006:

                             Three months           Nine months
                                ended                  ended
                             September 30,          September 30,
                            2007      2006         2007       2006

  Core price                4.0%      3.8%         4.1%       3.4%
  Fuel surcharges           (.1)      1.4           --        1.4
  Environmental fee          .1        .3           .3         .3
  Commodities                .9        --           .9        (.3)
    Total price             4.9       5.5          5.3        4.8

  Core volume              (1.9)      1.9         (1.5)       3.5
  Non-core volume           (.1)       .1          (.1)        .1
    Total volume           (2.0)      2.0         (1.6)       3.6

  Total internal growth     2.9       7.5          3.7        8.4

  Acquisitions, net of
   divestitures             (.6)       .2          (.4)       (.1)
  Taxes                      .1        .1           --         .1

    Total revenue growth    2.4 %     7.8 %        3.3 %      8.4 %

First Call Analyst:
FCMN Contact: flowerw@repsrv.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020531/RSGLOGO
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PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Republic Services, Inc.

CONTACT: Media, Will Flower +1-954-769-6392; Investors, Tod Holmes,
+1-954-769-2387, or Ed Lang, +1-954-769-3591; all of Republic Services, Inc.