News Releases

Republic Services, Inc. Reports Third Quarter Earnings
- Company raises adjusted earnings guidance by 3 cents to a new range of $1.46 to $1.48 per diluted share - Company reaffirms free cash flow guidance of $700 million to $725 million - Adjusted EBITDA margins expand to 30.9 percent - Company declares quarterly dividend of $0.19 per share
PRNewswire-FirstCall
PHOENIX

Republic Services, Inc. today reported net income of $120.5 million, or $0.32 per diluted share, including merger-related gains and costs and other charges, for the three months ended September 30, 2009, versus $88.7 million, or $0.48 per diluted share, for the comparable period last year. Republic's third quarter 2009 financial results include Allied Waste Industries, Inc. (Allied) which merged with Republic on December 5, 2008.

Republic's income before income taxes for the three months ended September 30, 2009, includes $0.9 million ($0.00 per diluted share) of a net loss on disposition of assets, $12.3 million ($0.02 per diluted share) of restructuring charges, $31.8 million ($0.05 per diluted share) of loss on extinguishment of debt, $8.9 million ($0.01 per diluted share) of costs to achieve synergies and a gain of $8.8 million ($0.01 per diluted share) related to insurance recoveries resulting from remediation activities. Excluding these items, net income for the three months ended September 30, 2009 would have been $149.3 million or $0.39 per diluted share. Income before income taxes for the three months ended September 30, 2008 includes $3.2 million ($.01 per diluted share) of integration costs related to the Allied merger. Excluding these costs, net income for the three months ended September 30, 2008 was $90.7 million or $0.49 per diluted share.

Operating income before depreciation, amortization, depletion and accretion for the three months ended September 30, 2009 was $627.4 million compared to $248.9 million for the comparable period in 2008. Excluding the net loss on disposition of assets, restructuring charges, costs to achieve synergies, and insurance recoveries recorded during 2009 and the integration costs recorded during 2008, operating income before depreciation, amortization, depletion and accretion for the three months ended September 30, 2009 was $640.7 million, or 30.9% as a percentage of revenue, compared to $252.1 million, or 30.2% as a percentage of revenue, for the comparable 2008 period.

Revenue for the three months ended September 30, 2009 increased to $2,073.5 million compared to $834.0 million for the same period in 2008. Core price for the three months ended September 30, 2009 (assuming the merger with Allied had occurred on January 1, 2008) increased 2.8%. Offsetting the core price growth of 2.8% for the three months ended September 30, 2009 were decreases of 10.1% in core volume, 1.9% of commodity pricing and 3.6% in fuel recovery fees.

For the nine months ended September 30, 2009, net income was $459.4 million, or $1.21 per diluted share, compared to $205.5 million, or $1.11 per diluted share, for the comparable period last year. Republic's income before income taxes for the nine months ended September 30, 2009, includes $144.3 million ($0.23 per diluted share) of net gains on disposition of assets, $55.9 million ($0.09 per diluted share) of restructuring charges, $31.8 million ($0.05 per diluted share) of loss on extinguishment of debt, $31.8 million ($0.05 per diluted share) of costs to achieve synergies and a gain of $8.8 million ($0.01 per diluted share) related to insurance recoveries resulting from remediation activities. Excluding these items, net income for the nine months ended September 30, 2009 would have been $438.6 million or $1.16 per diluted share.

Income before income taxes for the nine months ended September 30, 2008 includes a $34.0 million charge ($0.12 per diluted share) related to environmental conditions at our Countywide Recycling and Disposal Facility in Ohio, a $35.0 million charge ($0.12 per diluted share) related to estimated costs to comply with a consent decree and settlement agreement related to the Sunrise Landfill in Nevada and $3.2 million ($0.01 per diluted share) of integration costs related to the merger with Allied. Excluding these charges and costs, net income for the nine months ended September 30, 2008 was $251.3 million or $1.36 per diluted share.

Operating income before depreciation, amortization, depletion and accretion for the nine months ended September 30, 2009 was $1,986.7 million compared to $635.2 million for the comparable period in 2008. Excluding the net gain on disposition of assets, restructuring charges, costs to achieve synergies and insurance recoveries recorded during 2009 and the remediation charges and integration costs recorded during 2008, operating income before depreciation, amortization, depletion and accretion for the nine months ended September 30, 2009 was $1,921.3 million, or 31.0% as a percentage of revenue, compared to $706.4 million, or 28.9% as a percentage of revenue, for the comparable 2008 period.

Revenue for the nine months ended September 30, 2009 increased to $6,200.1 million compared to $2,440.7 million for the same period in 2008. Core price for the nine months ended September 30, 2009 (assuming the merger with Allied had occurred on January 1, 2008) increased 3.2%. Offsetting the core price growth of 3.2% for the nine months ended September 30, 2009 were decreases of 9.6% in core volume, 2.4% of commodity pricing and 2.6% in fuel recovery fees.

During the three months ended September 30, 2009, the Company completed the divestiture of assets and related liabilities required under the settlement reached with the U.S. Department of Justice in connection with the Allied merger. After tax proceeds of $374.6 million related to these divestitures were used to repay amounts borrowed under the Company's credit facilities.

"Based on our continued solid performance, we are increasing our full year earnings guidance for the second time this year," said James E. O'Connor, Chairman and Chief Executive Officer of Republic Services, Inc. "Our new, full-year adjusted earnings guidance is a range of $1.46 to $1.48 per share, which represents a three cent per share increase over our previous guidance. We are also reaffirming our full-year free cash flow guidance of $700 to $725 million. I am especially pleased to see a 110 basis point increase in our adjusted year-over-year margins."

Commenting on merger-related synergies, Don Slager, President and Chief Operating Officer, stated, "We are realizing our synergy savings ahead of schedule. Our field organization continues to execute our merger strategy while remaining focused on revenue and cost control initiatives," said Mr. Slager. "Providing excellent customer service, managing operational costs and increasing customer retention remain key focal points for the organization."

Quarterly Dividend

Separately, Republic announced that its Board of Directors has approved a regular quarterly dividend of $0.19 per share to be paid on January 18, 2010 to shareholders of record on January 4, 2010.

Republic Services, Inc. is a leading provider of services in the domestic, non-hazardous solid waste industry. The Company provides non-hazardous solid waste collection services for commercial, industrial, municipal, and residential customers through 380 collection companies in 40 states. It also owns or operates 236 transfer stations, 199 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. It also serves commercial customers throughout its expansive service area. For more information, visit the Republic Services web site at www.republicservices.com

              SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
                           AND OPERATING DATA
         (in millions, except per share amounts and percentages)

                         REPUBLIC SERVICES, INC.
                      CONSOLIDATED BALANCE SHEETS

                                                  September  December
                                                     30,        31,
                                                    2009       2008
                                                    ----       ----
                                                (Unaudited)
                     ASSETS
  Current assets:
    Cash and cash equivalents                      $107.3      $68.7
    Accounts receivable, less allowance for
     doubtful accounts of $54.2 and $65.7 as
     of September 30, 2009 and December 31,
     2008, respectively                             928.2      945.5
    Prepaid expenses and other current assets       189.3      174.7
    Deferred tax assets                             179.5      136.8
                                                    -----      -----
      Total current assets                        1,404.3    1,325.7
  Restricted cash and marketable securities         254.9      281.9
  Property and equipment, net                     6,585.6    6,738.2
  Goodwill, net                                  10,534.0   10,521.5
  Other intangible assets, net                      517.7      564.1
  Other assets                                      233.6      490.0
                                                    -----      -----
      Total assets                              $19,530.1  $19,921.4
                                                =========  =========

      LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                               $458.8     $564.0
    Notes payable and current maturities
     of long-term debt                              242.5      504.0
    Deferred revenue                                332.7      359.9
    Accrued landfill and environmental costs,
     current portion                                188.4      233.4
    Accrued interest                                110.5      107.7
    Other accrued liabilities                       765.1      796.8
                                                    -----      -----
      Total current liabilities                   2,098.0    2,565.8
  Long-term debt, net of current maturities       6,813.3    7,198.5
  Accrued landfill and environmental costs,
   net of current portion                         1,251.0    1,197.1
  Deferred income taxes and other
   long-term liabilities                          1,323.2    1,239.9
  Self-insurance reserves, net of current
   portion                                          303.7      234.5
  Other long-term liabilities                       186.4      203.1
  Commitments and contingencies
  Stockholders' equity:
    Preferred stock, par value $0.01 per
     share; 50.0 shares authorized; none
     issued                                             -          -
    Common stock, par value $0.01 per share;
     750.0 shares authorized; 394.6 and 393.4
     issued, including shares held in
     treasury, as of September 30, 2009 and
     December 31, 2008, respectively                  4.0        3.9
    Additional paid-in capital                    6,289.7    6,260.1
    Retained earnings                             1,720.1    1,477.2
    Treasury stock, at cost (14.9 shares
     as of September 30, 2009 and
     December 31, 2008)                            (457.2)    (456.7)
    Accumulated other comprehensive loss, net
     of tax                                          (4.4)      (3.1)
                                                     ----       ----
      Total Republic Services, Inc.
       stockholders' equity                       7,552.2    7,281.4
      Noncontrolling interests                        2.3        1.1
                                                    -----      -----
      Total stockholders' equity                  7,554.5    7,282.5
                                                  -------    -------
      Total liabilities and stockholders'
       equity                                   $19,530.1  $19,921.4
                                                =========  =========




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

                                       Three Months Ended Nine Months Ended
                                          September 30,      September 30,
                                        ----------------  -----------------
                                          2009    2008      2009      2008
                                          ----    ----      ----      ----
  Revenue                              $2,073.5  $834.0  $6,200.1  $2,440.7
  Expenses:
      Cost of operations                1,207.5   499.5   3,643.1   1,553.5
      Depreciation, amortization and
       depletion                          218.3    77.3     658.7     226.9
      Accretion                            22.2     4.6      67.4      13.5
      Selling, general and
       administrative                     225.4    85.6     658.7     252.0
      Loss (gain) on disposition of
       assets, net                          0.9       -    (144.3)        -
      Restructuring charges                12.3       -      55.9         -
                                           ----    ----      ----      ----
      Operating income                    386.9   167.0   1,260.6     394.8
  Interest expense                       (144.8)  (22.6)   (448.8)    (65.1)
  Loss on extinguishment of debt          (31.8)      -     (31.8)        -
  Interest income                           0.5     2.6       1.7       7.9
  Other income (expense), net               1.3    (1.6)      2.8      (0.7)
                                           ----    ----      ----      ----
          Income before income taxes      212.1   145.4     784.5     336.9
  Provision for income taxes               91.1    56.7     323.9     131.4
                                          -----   -----     -----     -----
  Net income                              121.0    88.7     460.6     205.5
          Less: net income
           attributable to
           noncontrolling
           interests                       (0.5)      -      (1.2)        -
                                           ----    ----      ----      ----
          Net income attributable to
           Republic
           Services, Inc.                $120.5   $88.7    $459.4    $205.5
                                         ======   =====    ======    ======
  Basic earnings per share
   attributable to Republic
   Services, Inc. stockholders:
            Basic earnings per share      $0.32   $0.49     $1.21     $1.13
                                          =====   =====     =====     =====
            Weighted average common
             shares outstanding           379.7   182.3     379.3     182.6
                                          =====   =====     =====     =====
  Diluted earnings per share
   attributable to Republic
   Services, Inc. stockholders:
            Diluted earnings per share    $0.32   $0.48     $1.21     $1.11
                                          =====   =====     =====     =====
            Weighted average common
             and common equivalent
             shares outstanding           381.1   184.1     380.3     184.4
                                          =====   =====     =====     =====

  Cash dividends per common share         $0.19   $0.19     $0.57     $0.53
                                          =====   =====     =====     =====




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

                                                         Nine Months Ended
                                                            September 30,
                                                         -----------------
                                                            2009    2008
                                                            ----    ----
  Cash Provided by Operating Activities:
  Net income                                               $460.6  $205.5
  Adjustments to reconcile net income to cash
   provided by operating activities:
      Depreciation and amortization of property and
       equipment                                            389.9   145.7
      Landfill depletion and amortization                   216.3    76.5
      Amortization of intangible and other assets            52.5     4.7
      Accretion                                              67.4    13.5
      Non-cash interest expense - debt                       76.0       -
      Non-cash interest expense - other                      33.3       -
      Restructuring and synergy related charges              33.2       -
      Stock-based compensation                               11.6     9.5
      Deferred tax provision                                  5.6    24.1
      Provision for doubtful accounts, net of
       adjustments                                           16.8     6.4
      Excess income tax benefit from stock option
       exercises                                             (1.4)    1.8
      Asset impairments                                      10.4       -
      Loss on extinguishment of debt                         31.8       -
      Gain on disposition of assets, net                   (156.2)   (1.1)
      Other non-cash items                                   (0.1)    2.5
      Change in assets and liabilities, net of
       effects from business acquisitions and
       divestitures:
          Accounts receivable                                 1.0   (33.9)
          Prepaid expenses and other assets                   2.6   (42.6)
          Accounts payable and accrued liabilities          (94.8)    7.0
          Restructuring and synergy related expenditures    (53.4)      -
          Capping, closure and post-closure expenditures    (60.2)   (9.8)
          Remediation expenditures                          (42.6)  (29.1)
          Other liabilities                                  12.1    93.5
                                                             ----    ----
          Cash Provided by Operating Activities           1,012.4   474.2
                                                          -------   -----

  Cash Used in Investing Activities:
      Purchases of property and equipment                  (542.5) (264.1)
      Proceeds from sales of property and equipment          22.8     5.8
      Cash used in acquisitions, net of cash
       acquired                                              (0.1)  (13.4)
      Cash proceeds from divestitures, net of cash
       divested                                             473.3       -
      Change in restricted cash and marketable
       securities                                            27.1    (6.4)
      Other                                                     -    (0.2)
                                                            -----   -----
          Cash Used in Investing Activities                 (19.4) (278.3)
                                                            -----  ------

  Cash Used in Financing Activities:
      Proceeds from notes payable and long-term debt        948.2   693.4
      Proceeds from senior notes                            645.4       -
      Payments of notes payable and long-term debt       (2,323.7) (663.2)
      Premiums paid on extinguishment of debt               (18.0)      -
      Fees paid to issue and retire senior notes and
       certain hedging relationships                         (9.0)      -
      Issuances of common stock                              17.9    20.2
      Excess income tax benefit from stock option
       exercises                                              1.4     3.9
      Purchases of common stock for treasury                 (0.5) (138.4)
      Cash dividends paid                                  (216.1)  (93.7)
                                                           ------   -----
          Cash Used in Financing Activities                (954.4) (177.8)
                                                           ------  ------

  Increase in Cash and Cash Equivalents                      38.6    18.1
  Cash and Cash Equivalents at Beginning of
   Period                                                    68.7    21.8
                                                            -----   -----
  Cash and Cash Equivalents at End of Period               $107.3   $39.9
                                                           ======   =====



The following information should be read in conjunction with our audited consolidated financial statements and notes thereto appearing in our Form 10-K as of and for the year ended December 31, 2008 and our current report on Form 8-K filed June 5, 2009. It should also be read in conjunction with our unaudited consolidated financial statements and notes thereto appearing in our Form 10-Q as of and for the six months ended June 30, 2009.

REVENUE

The following table reflects our total revenue by line of business for the three and nine months ended September 30, 2009 and 2008:

                                 Three Months Ended  Nine Months Ended
                                    September 30,      September 30,
                                 ------------------  -----------------
                                    2009    2008      2009      2008
                                    ----    ----      ----      ----
  Collection:
      Residential                  $548.0  $216.2  $1,644.6    $633.4
      Commercial                    634.4   259.2   1,926.8     762.5
      Industrial                    396.2   161.3   1,173.4     476.3
      Other                           6.5     5.9      20.1      16.2
                                     ----    ----      ----      ----
          Total collection        1,585.1   642.6   4,764.9   1,888.4

  Transfer and disposal             789.4   304.7   2,374.9     886.6
  Less: Intercompany               (392.7) (154.0) (1,191.3)   (455.2)
                                   ------  ------  --------    ------
      Transfer and disposal, net    396.7   150.7   1,183.6     431.4

  Other                              91.7    40.7     251.6     120.9
                                    -----   -----     -----     -----

  Total revenue                  $2,073.5  $834.0  $6,200.1  $2,440.7
                                 ========  ======  ========  ========



The following table summarizes our adjusted revenue for the three and nine months ended September 30, 2009 and 2008 which assumes our merger with Allied occurred on January 1, 2008:

                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------   -----------------
                                  2009      2008      2009      2008
                                  ----      ----      ----      ----

  Republic Services, Inc.       $2,073.5    $834.0  $6,200.1  $2,440.7
  Allied Waste Industries, Inc.        -   1,606.2         -   4,672.7
                                --------   -------  --------   -------
                                 2,073.5   2,440.2   6,200.1   7,113.4

  Less: Divestitures                (3.1)    (56.7)     (9.0)   (104.4)
  Less: Intercompany revenue           -      (7.2)        -     (22.1)
                                 -------      ----   -------     -----

  Adjusted revenue              $2,070.4  $2,376.3  $6,191.1  $6,986.9
                                ========  ========  ========  ========



Adjusted revenue is used to calculate internal growth for the three and nine months ended September 30, 2009. Intercompany revenue relates to prior year transactions between Republic and Allied that would have been eliminated if the companies had merged on January 1, 2008.

The following table reflects changes in our core adjusted revenue for the three and nine months ended September 30, 2009 and 2008. For comparative purposes, we have presented the components of our revenue changes for the three and nine months ended September 30, 2008 assuming our merger with Allied occurred on January 1, 2008. Our presentation also eliminates revenue associated with divested assets in the quarter the assets were sold and the comparable quarter in the prior year.

                          Three Months    Nine Months
                              Ended         Ended
                          September 30,  September 30,
                         -------------- --------------
                           2009  2008     2009  2008
                           ----  ----     ----  ----
  Core price               2.8%   4.2%    3.2%   4.3%
  Fuel surcharges         (3.6)   2.8    (2.6)   1.9
  Commodities             (1.9)   0.3    (2.4)   0.6
                          ----    ---    ----    ---
      Total price         (2.7)   7.3    (1.8)   6.8

  Core volume            (10.1)  (3.1)   (9.6)  (2.9)

                         -----    ---   -----   ----
  Total internal growth  (12.8)%  4.2%  (11.4)%  3.9%
                         =====    ===   =====    ===

  Certain prior year amounts have been reclassified to conform to the
  current year's presentation.



We believe that the presentation of adjusted revenue and changes in adjusted revenue above provides useful information to investors because it allows investors to understand increases or decreases in our revenue that are driven by changes in the operations of the newly combined company, and not merely by the addition of Allied's revenues for periods after the merger. This information has been prepared for illustrative purposes and is not intended to be indicative of the revenue that would have been realized had the merger been consummated at the beginning of the periods presented or the future results of the combined operations.

MERGER WITH ALLIED

We completed our acquisition of Allied effective December 5, 2008. In accordance with the purchase method of accounting, the purchase price paid has been allocated to assets and liabilities acquired based upon their estimated fair values as of the effective date of the merger, with the excess of the purchase price over the net assets acquired being recorded as goodwill. We are in the process of valuing all of the assets and liabilities acquired in the merger, and, until we have completed our valuation process, there may be adjustments to our estimates of fair values and the resulting preliminary purchase price allocation.

As a condition of the merger with Allied in December 2008, the Department of Justice (DOJ) required us to divest of certain assets and related liabilities. As of September 30, 2009 we are complete with our required divestitures.

The following table summarizes our revenue, costs and expenses for the three and nine months ended September 30, 2008 assuming the merger with Allied occurred on January 1, 2008:

                          Three Months Ended          Nine Months Ended
                          September 30, 2008         September 30, 2008
                          ------------------         ------------------
                       Allied  Republic   Total   Allied  Republic   Total
                       ------  --------   -----   ------  --------   -----

  Revenue             $1,606.2   $834.0 $2,440.2 $4,672.7 $2,440.7 $7,113.4
  Cost of operations     973.0    499.5  1,472.5  2,868.8  1,553.5  4,422.3
                         -----    -----  -------  -------  -------  -------
  Gross profit           633.2    334.5    967.7  1,803.9    887.2  2,691.1

  Depreciation,
   amortization,
   depletion, and
   accretion             148.5     81.9    230.4    454.6    240.4    695.0
  Selling, general
   and
   administrative        154.2     85.6    239.8    442.2    252.0    694.2
  Loss on disposition
   of assets and
   merger related
   costs                  12.2        -     12.2     45.0        -     45.0
                          ----    -----     ----     ----    -----     ----
  Operating income      $318.3   $167.0   $485.3   $862.1   $394.8 $1,256.9
                        ======   ======   ======   ======   ====== ========



We believe that the presentation of revenue and expenses above provides useful information to investors because it allows investors to understand increases or decreases in our revenue and expenses that are driven by changes in the operations of the newly combined company, and not merely by the addition of Allied's revenues and expenses for periods after the merger. This information has been prepared for illustrative purposes and is not intended to be indicative of the results of operations that would have actually occurred had the acquisition been consummated at the beginning of the periods presented or the future results of the combined operations.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

Operating Income before Depreciation, Amortization, Depletion and Accretion

Operating income before depreciation, amortization, depletion and accretion (OIDADA), which is not a measure determined in accordance with GAAP, for the three and nine months ended September 30, 2009 and 2008 is calculated as follows:

                                        Three Months Ended Nine Months Ended
                                           September 30,    September 30,
                                           -------------    -------------
                                           2009    2008      2009    2008
                                           ----    ----      ----    ----
  Net income attributable to Republic
   Services, Inc.                         $120.5   $88.7    $459.4  $205.5
  Noncontrolling interests                   0.5       -       1.2       -
  Provision for income taxes                91.1    56.7     323.9   131.4
  Other (income) expense, net               (1.3)    1.6      (2.8)    0.7
  Interest income                           (0.5)   (2.6)     (1.7)   (7.9)
  Loss on extinguishment of debt            31.8       -      31.8       -
  Interest expense                         144.8    22.6     448.8    65.1
  Depreciation, amortization and
   depletion                               218.3    77.3     658.7   226.9
  Accretion                                 22.2     4.6      67.4    13.5
                                            ----    ----      ----    ----
      OIDADA                              $627.4  $248.9  $1,986.7  $635.2
                                          ======  ======  ========  ======



We believe that the presentation of OIDADA is useful to investors because it provides important information concerning our operating performance exclusive of certain non-cash costs. OIDADA demonstrates our ability to execute our 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 our customer base and services provided, maintaining our investment grade credit rating and minimizing debt, paying cash dividends, and maintaining and improving our market position through business optimization. This measure has 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. Our definition of OIDADA may not be comparable to similarly titled measures presented by other companies.

Adjusted Earnings

Reported diluted earnings per share were $0.32 and $0.48 for the three months ended September 30, 2009 and 2008, respectively, and $1.21 and $1.11 for the nine months ended September 30, 2009 and 2008, respectively. During the three and nine months ended September 30, 2009 and 2008, we recorded a number of gains, charges (recoveries) and other expenses that impacted our OIDADA, pre-tax income, net income attributable to Republic Services, Inc., ("Net Income - Republic") and diluted earnings per share. These items primarily consist of the following:

                                   Three Months Ended
                                   September 30, 2009
                            ----------------------------------
                                              Net    Diluted
                                   Pre-tax  Income - Earnings
                           OIDADA  Income  Republic per Share
                           ------  ------  -------- ---------
  As reported              $627.4  $212.1    $120.5     $0.32
  Loss on disposition of
   assets, net                0.9     0.9       1.4         -
  Restructuring charges      12.3    12.3       7.6      0.02
  Loss on extinguishment
   of debt                      -    31.8      19.7      0.05
  Costs to achieve
   synergies                  8.9     8.9       5.5      0.01
  Remediation recoveries     (8.8)   (8.8)     (5.4)    (0.01)
  Pre-merger integration
   costs                        -       -         -         -
                           ------  ------    ------     -----
  Adjusted                 $640.7  $257.2    $149.3     $0.39
                           ======  ======    ======     =====



                                  Three Months Ended
                                  September 30, 2008
                           ----------------------------------

                                            Net     Diluted
                                  Pre-tax Income -  Earnings
                           OIDADA Income  Republic  per Share
                           ------ ------  --------  ---------
  As reported              $248.9 $145.4     $88.7    $0.48
  Loss on disposition of
   assets, net                  -      -         -        -
  Restructuring charges         -      -         -        -
  Loss on extinguishment
   of debt                      -      -         -        -
  Costs to achieve
   synergies                    -      -         -        -
  Remediation recoveries        -      -         -        -
  Pre-merger integration
   costs                      3.2    3.2       2.0     0.01
                            -----  -----     -----    -----
  Adjusted                 $252.1 $148.6     $90.7    $0.49
                           ====== ======     =====    =====




                                     Nine Months Ended
                                     September 30, 2009
                            ------------------------------------
                                               Net     Diluted
                                     Pre-tax Income -  Earnings
                             OIDADA  Income  Republic per Share
                             ------  ------  -------- ---------
  As reported              $1,986.7  $784.5    $459.4     $1.21
  Gain on disposition of
   assets, net               (144.3) (144.3)    (88.7)    (0.23)
  Restructuring charges        55.9    55.9      34.1      0.09
  Loss on extinguishment
   of debt                        -    31.8      19.7      0.05
  Costs to achieve
   synergies                   31.8    31.8      19.5      0.05
  Remediation charges
   (recoveries)                (8.8)   (8.8)     (5.4)    (0.01)
  Pre-merger integration
   costs                          -       -         -         -
                              -----   -----     -----     -----
  Adjusted                 $1,921.3  $750.9    $438.6     $1.16
                           ========  ======    ======     =====



                                    Nine Months Ended
                                    September 30, 2008
                             ----------------------------------
                                               Net     Diluted
                                     Pre-tax Income -  Earnings
                             OIDADA  Income  Republic per Share
                             ------  ------  -------- ---------
  As reported                $635.2  $336.9    $205.5     $1.11
  Gain on disposition of
   assets, net                    -       -         -         -
  Restructuring charges           -       -         -         -
  Loss on extinguishment
   of debt                        -       -         -         -
  Costs to achieve
   synergies                      -       -         -         -
  Remediation charges
   (recoveries)                68.0    69.0      43.8      0.24
  Pre-merger integration
   costs                        3.2     3.2       2.0      0.01
                              -----   -----     -----     -----
  Adjusted                   $706.4  $409.1    $251.3     $1.36
                             ======  ======    ======     =====



We believe that the presentation of adjusted OIDADA, adjusted pre-tax income, adjusted net income attributable to Republic Services, Inc., and adjusted diluted earnings per share, which excludes gain and loss on disposition of assets, restructuring charges, loss on extinguishment of debt, costs to achieve synergies, remediation charges (recoveries) and pre-merger integration costs which are not measures determined in accordance with GAAP, provide an understanding of operational activities before the financial impact of certain non-operational items. We use these measures, and believe investors will find them helpful in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. Comparable charges and costs have been incurred in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Our definition of adjusted OIDADA, adjusted pre-tax income, adjusted net income attributable to Republic Services, Inc., and adjusted diluted earnings per share may not be comparable to similarly titled measures presented by other companies.

Cash Flow

We define 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 our unaudited consolidated statements of cash flows. Our free cash flow for the three and nine months ended September 30, 2009 and 2008 is calculated as follows:

                                         Three Months     Nine Months
                                            Ended            Ended
                                         September 30,    September 30,
                                         -------------    -------------
                                         2009    2008      2009    2008
                                         ----    ----      ----    ----
  Cash provided by operating
   activities                           $324.8  $162.7  $1,012.4  $474.2
  Purchases of property and equipment   (187.4)  (98.7)   (542.5) (264.1)
  Proceeds from sales of property and
   equipment                               6.1     2.5      22.8     5.8
                                          ----    ----      ----    ----
  Free cash flow                        $143.5   $66.5    $492.7  $215.9
                                        ======   =====    ======  ======



Purchases of property and equipment as reflected on our unaudited 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 on our unaudited consolidated statements of cash flows to property and equipment received during the period is as follows:

                                          Three Months   Nine Months
                                             Ended          Ended
                                          September 30,  September 30,
                                          -------------  -------------
                                          2009    2008   2009    2008
                                          ----    ----   ----    ----
  Purchases of property and equipment
   per the unaudited consolidated
   statements of cash flows              $187.4   $98.7 $542.5  $264.1
  Adjustments for property and equipment
   received during the prior period but
   paid for in the following period, net   (7.3)    1.5  (41.5)  (26.4)
                                           ----    ----  -----   -----
  Property and equipment received
   during the current period             $180.1  $100.2 $501.0  $237.7
                                         ======  ====== ======  ======


The adjustments noted above do not affect either our net change in cash and cash equivalents as reflected in our unaudited consolidated statements of cash flows or our free cash flow.

We believe that the presentation of free cash flow provides useful information regarding our recurring cash provided by operating activities after expenditures for property and equipment, net of proceeds from sales of property and equipment. It also demonstrates our ability to execute our financial strategy as previously discussed and is a key metric we use to determine compensation. The presentation of free cash flow has material limitations. Free cash flow does not represent our cash flow available for discretionary expenditures because it excludes certain expenditures that are required or that we have committed such as, debt service requirements and dividend payments. Our definition of free cash flow may not be comparable to similarly titled measures presented by other companies.

As of September 30, 2009, accounts receivable was $928.2 million, net of allowance for doubtful accounts of $54.2 million, resulting in days sales outstanding of approximately 41 (or 26 net of deferred revenue).

CASH DIVIDENDS

In July 2009, we paid a cash dividend of $72.1 million to stockholders of record as of July 1, 2009. As of September 30, 2009, we recorded a dividend payable of $72.2 million to stockholders of record at the close of business on October 1, 2009, which has been paid. In October 2009, our Board of Directors declared a regular quarterly dividend of $0.19 per share payable to stockholders of record as of January 4, 2010, which will be paid on January 18, 2010.

  UPDATED FINANCIAL GUIDANCE

  Adjusted Diluted Earnings per Share

The following is a summary of anticipated adjusted diluted earnings per share for the twelve months ended December 31, 2009 excluding gain on disposition of assets, loss on extinguishment of debt and insurance recoveries:

                                                           (Anticipated)
                                                           Twelve Months
                                                               Ended
                                                            December 31,
                                                               2009
                                                               ----

  Diluted earnings per share (excluding items previously
   described)                                             $ 1.28 - 1.30
  Restructuring charges and cost to achieve synergies              0.18
                                                           ------------

  Adjusted diluted earnings per share                     $ 1.46 - 1.48
                                                           ============



We believe that the presentation of adjusted diluted earnings per share, which excludes gain on disposition of assets, loss on extinguishment of debt, charges related to the integration of our businesses and insurance recoveries provides an understanding of operational activities before the financial impact of certain gains on disposition of assets, merger related costs and insurance recoveries. We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations when the integration process is complete. Comparable charges and costs have been incurred in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Our definition of adjusted diluted earnings per share may not be comparable to similarly titled measures presented by other companies.

Adjusted Free Cash Flow

We define adjusted 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 net of proceeds from sales of property and equipment, plus merger related costs. Our actual adjusted free cash flow for the nine months ended September 30, 2009 and our anticipated adjusted free cash flow for the twelve months ended December 31, 2009 are calculated as follows:

                                                (Actual)     (Anticipated)
                                               Nine Months   Twelve Months
                                                  Ended          Ended
                                               September 30,  December 31,
                                                  2009           2009
                                                  ----           ----

  Cash provided by operating activities         $1,012.4   $1,334 - 1,359
  Purchases of property and equipment, net of
   proceeds from sales                            (519.7)            (835)
  Merger related expenditures, net of tax           62.5               86
  Divestiture related tax payments                  74.3              115
                                                  ------            -----
  Adjusted free cash flow                         $629.5   $    700 - 725
                                                  ======    =============



We believe that the presentation of adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after expenditures for property and equipment, net of proceeds from sales of property and equipment, plus merger related costs and divestiture related tax payments. It also demonstrates our ability to execute our financial strategy. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary expenditures because it excludes certain expenditures that are required or that we have committed such as, debt service requirements and dividend payments. Our definition of adjusted free cash flow may not be comparable to similarly titled measures presented by other companies.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements and information included herein constitute forward-looking information about us that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "guidance," "expect," "will," "may," "anticipate," "could" and similar expressions are intended to identify forward-looking statements. These statements include statements about the expected benefits of the merger, our plans, strategies and prospects. Forward-looking statements are not guarantees of performance. These statements are based upon the current beliefs and expectations of our management and are subject to risk and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give no assurance that the expectations will prove to be correct. Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are:

  --  our ability to successfully integrate Allied's and Republic's
      operations and to achieve synergies or create long-term value for
      stockholders as expected, including the possibility that we will
      experience significant and unexpected transaction- and
      integration-related costs;
  --  the impact on us of our substantial post-merger indebtedness,
      including on our ability to obtain financing on acceptable terms to
      finance our operations and growth strategy and to operate within the
      limitations imposed by financing arrangements and the fact that any
      downgrade in our bond ratings could adversely impact us;
  --  general economic and market conditions including, but not limited to,
      the current global economic and financial market crisis, inflation and
      changes in commodity pricing, fuel, labor, risk and health insurance
      and other variable costs that are generally not within our control,
      and our exposure to credit and counterparty risk;
  --  whether our estimates and assumptions concerning our selected balance
      sheet accounts, income tax accounts, final capping, closure,
      post-closure and remediation costs, available airspace, and projected
      costs and expenses related to our landfills and property and equipment
      (including our estimates of the fair values of the assets and
      liabilities acquired in our acquisition of Allied), and labor, fuel
      rates and economic and inflationary trends, turn out to be correct or
      appropriate;
  --  competition and demand for services in the solid waste industry;
  --  the fact that price increases or changes in commodity prices may not
      be adequate to offset the impact of increased costs, including but not
      limited to labor, third-party disposal and fuel, and may cause us to
      lose volume;
  --  our ability to manage growth and execute our growth strategy;
  --  our compliance with, and future changes in, environmental and flow
      control regulations and our ability to obtain approvals from
      regulatory agencies in connection with operating and expanding our
      landfills;
  --  our ability to retain our investment grade ratings for our debt;
  --  our dependence on key personnel;
  --  our dependence on large, long-term collection, transfer and disposal
      contracts;
  --  the fact that our business is capital intensive and may consume cash
      in excess of cash flow from operations;
  --  that any exposure to environmental liabilities, to the extent not
      adequately covered by insurance, could result in substantial expenses;
  --  risks associated with undisclosed liabilities of acquired businesses;
  --  risks associated with pending and any future legal proceedings,
      including our matters currently pending with the Department of Justice
      and Internal Revenue Service;
  --  severe weather conditions, which could impair our financial results by
      causing increased costs, loss of revenue, reduced operational
      efficiency or disruptions to our operations;
  --  compliance with existing and future legal and regulatory requirements,
      including limitations or bans on disposal of certain types of wastes
      or on the transportation of waste, which could limit our ability to
      conduct or grow our business, increase our costs to operate or require
      additional capital expenditures;
  --  any litigation, audits or investigations brought by or before any
      governmental body;
  --  workforce factors, including potential increases in our costs if we
      are required to provide additional funding to any multi-employer
      pension plan to which we contribute and the negative impact on our
      operations of union organizing campaigns, work stoppages or labor
      shortages;
  --  the negative effect that trends toward requiring recycling, waste
      reduction at the source and prohibiting the disposal of certain types
      of wastes could have on volumes of waste going to landfills;
  --  changes by the Financial Accounting Standards Board or other
      accounting regulatory bodies to generally accepted accounting
      principles or policies;
  --  acts of war, riots or terrorism, including the events taking place in
      the Middle East and the continuing war on terrorism, as well as
      actions taken or to be taken by the United States or other governments
      as a result of further acts or threats of terrorism, and the impact of
      these acts on economic, financial and social conditions in the United
      States; and

  --  the timing and occurrence (or non-occurrence) of transactions and
      events which may be subject to circumstances beyond our control.


The risks included here are not exhaustive. Refer to "Part I, Item 1A -- Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2008, for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such risk factors, nor to assess the impact such risk factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Except to the extent required by applicable law or regulation, we undertake no obligation to update or publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

First Call Analyst: Flower, Will
FCMN Contact:

SOURCE: Republic Services, Inc.

CONTACT: Media, Will Flower, +1-480-718-6565, or Investors, Ed Lang,
+1-480-627-7128, both of Republic Services, Inc.