News Releases
Republic Services, Inc.
(Logo: http://photos.prnewswire.com/prnh/20100304/RSLOGO) (Logo: http://www.newscom.com/cgi-bin/prnh/20100304/RSLOGO)
Republic's net income for the three months ended June 30, 2010 and 2009 includes a number of charges and other expenses that impacted its results. A detail of these charges and other expenses is contained in the Reconciliation of Certain Non-GAAP Measures section of this document. Excluding these items, net income for the three months ended June 30, 2010 and 2009 would have been $166.4 million, or $0.43 per diluted share, and $146.9 million, or $0.39 per diluted share, respectively.
Excluding certain charges and other expenses recorded during 2010 and 2009 as described in the Reconciliation of Certain Non-GAAP Measures section of this document, adjusted earnings before interest, taxes, depreciation, depletion, amortization and accretion (adjusted EBITDA) for the three months ended June 30, 2010 would have been $645.8 million, or 31.3% as a percentage of revenue, compared to $633.5 million, or 30.7% as a percentage of revenue, for the comparable 2009 period.
Revenue for the three months ended June 30, 2010 increased to $2,066.4 million compared to $2,066.1 million for the same period in 2009. Core price for the three months ended June 30, 2010 increased 1.6%, fuel surcharges increased 1.1% and commodity pricing increased 1.5%. Offsetting this growth of 4.2% for the three months ended June 30, 2010 were decreases of 3.3% in core volume and 0.9% related to divestitures.
For the six months ended June 30, 2010, net income was $224.7 million, or $0.59 per diluted share, compared to $338.9 million, or $0.89 per diluted share, for the comparable period last year. Republic's net income for the six months ended June 30, 2010 and 2009 includes a number of charges and other expenses and net gain on disposition of assets that impacted our results. A detail of these charges and other expenses and net gain on disposition of assets is contained in the Reconciliation of Certain Non-GAAP Measures section of this document. Excluding these items, net income for the six months ended June 30, 2010 and 2009 would have been $324.0 million, or $0.84 per diluted share, and $289.4 million, or $0.76 per diluted share, respectively.
Excluding certain charges and other expenses and net gain on disposition of assets recorded during 2010 and 2009 as described in the Reconciliation of Certain Non-GAAP Measures section of this document, adjusted EBITDA for the six months ended June 30, 2010 would have been $1,265.4 million, or 31.4% as a percentage of revenue, compared to $1,280.6 million, or 31.0% as a percentage of revenue, for the comparable 2009 period.
Revenue for the six months ended June 30, 2010 decreased to $4,024.1 million compared to $4,126.6 million for the same period in 2009. Core price for the six months ended June 30, 2010 increased 1.9%, fuel surcharges increased 0.7% and commodities pricing increased 1.7%. Offsetting this growth of 4.3% for the six months ended June 30, 2010, were decreases of 5.2% in core volume and 1.6% related to divestitures.
"I am very pleased with the Company's progress through the first half of 2010," said James E. O'Connor, Chairman and Chief Executive Officer of Republic Services, Inc. "We have successfully integrated two large companies and have secured substantial synergy savings. The Company is well positioned to take advantage of an improving economy and return cash to our stockholders."
Updated Financial Guidance
Republic Services is increasing its 2010 guidance for adjusted earnings per diluted share and adjusted free cash flow to reflect our first six month performance and current business conditions.
-- Adjusted Earnings Per Share: We raised adjusted earnings per share
guidance to a range of $1.69 to $1.71 per diluted share. Adjusted
earnings per diluted share exclude restructuring charges, costs to
achieve synergies, gain/loss on disposition of assets, and loss on
extinguishment of debt. Our previous guidance was a range of $1.63 to
$1.67 per diluted share.
-- Adjusted Free Cash Flow: We increased adjusted free cash flow guidance
to a range of $725 million to $750 million. Adjusted free cash flow
consists of cash provided by operating activities, less property and
equipment received, plus proceeds from the sales of property and
equipment, plus merger related expenditures, net of tax, plus tax
settlement related to BFI risk management companies. Our previous
guidance for adjusted free cash flow was $700 million to $725 million.
"This is the first quarter that we have experienced positive internal growth since the third quarter of 2008," said Donald W. Slager, President and Chief Operating Officer of Republic Services, Inc. "Our strong revenue performance and expense controls enabled us to increase our dividend five percent. Republic Services remains committed to a consistent cash utilization strategy that includes both dividend growth and share repurchase."
Quarterly Dividend
Republic's Board of Directors has approved a five percent increase in the regular quarterly dividend. The quarterly dividend of $0.20 per share will be paid on October 15, 2010 to shareholders of record on October 1, 2010.
About Republic
Republic Services, Inc. provides recycling and solid waste collection, transfer and disposal services in the United States. The Company's various operating units, including collection companies, transfer stations, recycling centers and landfills, are focused on providing reliable environmental services and solutions for commercial, industrial, municipal and residential customers. For more information, visit the Republic Services web site at www.republicservices.com. The Company participates in investor presentations and conferences throughout the year. Interested parties can find a schedule of these conferences at www.republicservices.com by selecting "Calendar" under the Investor Relations tab. Live audio presentations from earnings calls and investor conferences are web cast on the Republic web site.
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
AND OPERATING DATA
REPUBLIC SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
December
June 30, 31,
2010 2009
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $56.0 $48.0
Accounts receivable, less
allowance for doubtful
accounts of $52.5 and $55.2,
respectively 898.4 865.1
Prepaid expenses and other
current assets 138.8 156.5
Deferred tax assets 195.5 195.3
----- -----
Total current assets 1,288.7 1,264.9
Restricted cash and marketable
securities 315.2 240.5
Property and equipment, net 6,603.7 6,657.7
Goodwill, net 10,661.4 10,667.1
Other intangible assets, net 465.7 500.0
Other assets 236.7 210.1
----- -----
Total assets $19,571.4 $19,540.3
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 470.5 592.8
Notes payable and current
maturities of long-term debt 692.5 543.0
Deferred revenue 331.3 331.1
Accrued landfill and
environmental costs, current
portion 225.9 245.4
Accrued interest 99.7 96.2
Other accrued liabilities 646.1 740.2
----- -----
Total current liabilities 2,466.0 2,548.7
Long-term debt, net of
current maturities 6,425.0 6,419.6
Accrued landfill and
environmental costs, net of
current portion 1,417.6 1,383.2
Deferred income taxes and
other long-term liabilities 977.0 1,040.5
Self-insurance reserves, net
of current portion 301.6 302.0
Other long-term liabilities 298.3 279.2
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value
$0.01 per share; 50 shares
authorized; none issued - -
Common stock, par value $0.01
per share; 750 shares
authorized; 397.6 and 395.7 4.0 4.0
issued including shares held in treasury,
respectively
Additional paid-in capital 6,364.4 6,316.1
Retained earnings 1,762.3 1,683.1
Treasury stock, at cost (15.0
and 14.9 shares,
respectively) (459.1) (457.7)
Accumulated other
comprehensive loss, net of
tax 12.0 19.0
---- ----
Total Republic Services, Inc.
stockholders' equity 7,683.6 7,564.5
Noncontrolling interests 2.3 2.6
--- ---
Total stockholders' equity 7,685.9 7,567.1
------- -------
Total liabilities and
stockholders' equity $19,571.4 $19,540.3
========= =========
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2010 2009 2010 2009
---- ---- ---- ----
Revenue $2,066.4 $2,066.1 $4,024.1 $4,126.6
Expenses:
Cost of operations 1,218.3 1,226.9 2,355.1 2,435.6
Depreciation,
amortization and
depletion 213.8 218.6 416.8 440.5
Accretion 20.2 21.9 40.4 45.2
Selling, general and
administrative 210.8 215.8 421.1 433.3
Loss (gain) on
disposition of
assets and
impairments, net 1.1 (150.1) 1.6 (145.2)
Restructuring
charges 1.4 12.3 7.0 43.6
--- ---- --- ----
Operating income 400.8 520.7 782.1 873.6
Interest expense (130.5) (150.5) (265.0) (304.1)
Loss on
extinguishment of
debt - - (132.3) -
Interest income 0.1 0.5 0.1 1.3
Other (expense)
income, net (0.1) 1.3 1.6 1.6
---- --- --- ---
Income before income
taxes 270.3 372.0 386.5 572.4
Provision for income
taxes 110.4 145.8 161.4 232.9
----- ----- ----- -----
Net income 159.9 226.2 225.1 339.5
Less: Net income
attributable to
noncontrolling
interests (0.2) (0.3) (0.4) (0.6)
---- ---- ---- ----
Net income
attributable to
Republic Services,
Inc. $159.7 $225.9 $224.7 $338.9
====== ====== ====== ======
Basic earnings per
share attributable
to Republic
Services, Inc.
stockholders:
Basic earnings per
share $0.42 $0.60 $0.59 $0.89
===== ===== ===== =====
Weighted average
common shares
outstanding 382.5 379.2 382.0 379.1
===== ===== ===== =====
Diluted earnings per
share attributable
to Republic
Services, Inc.
stockholders:
Diluted earnings per
share $0.42 $0.59 $0.59 $0.89
===== ===== ===== =====
Weighted average
common and common
equivalent shares
outstanding 384.7 379.9 384.0 379.9
===== ===== ===== =====
Cash dividends per
common share $0.19 $0.19 $0.38 $0.38
===== ===== ===== =====
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Six Months Ended
June 30,
----------------
2010 2009
---- ----
Cash provided by operating
activities:
Net income $225.1 $339.5
Adjustments to reconcile net income
to cash provided by operating
activities:
Depreciation and amortization of
property and equipment 255.9 260.2
Landfill depletion and amortization 125.7 145.3
Amortization of intangible and
other assets 35.2 35.0
Accretion 40.4 45.2
Non-cash interest expense - debt 28.6 50.6
Non-cash interest expense - other 24.2 23.3
Restructuring related charges - 26.4
Stock-based compensation 12.0 8.0
Deferred tax (benefit) provision (58.3) 6.0
Provision for doubtful accounts,
net of adjustments 10.3 9.4
Excess income tax benefit from
stock option exercises (1.8) 0.5
Asset impairments 0.5 1.8
Loss on extinguishment of debt 132.3 -
Gain on disposition of assets, net (6.5) (147.8)
Other non-cash items 0.8 (0.1)
Change in assets and liabilities,
net of effects from business
acquisitions and divestitures:
Accounts receivable (43.9) 24.6
Prepaid expenses and other assets (1.8) 22.5
Accounts payable (62.8) (67.5)
Restructuring and synergy related
expenditures (13.0) (33.2)
Capping, closure and post-closure
expenditures (28.0) (33.2)
Remediation expenditures (23.4) (26.8)
Other liabilities (56.7) (2.1)
Cash provided by operating
activities 594.8 687.6
----- -----
Cash (used in) provided by
investing activities:
Purchases of property and equipment (385.4) (355.1)
Proceeds from sales of property and
equipment 12.6 16.7
Cash used in acquisitions, net of
cash acquired (0.8) (0.1)
Cash proceeds from divestitures,
net of cash divested - 418.3
Change in restricted cash and
marketable securities (76.0) 22.7
Other 0.1 -
Cash (used in) provided by
investing activities (449.5) 102.5
------ -----
Cash used in financing activities:
Proceeds from notes payable and
long-term debt 1,020.2 679.5
Proceeds from issuance of senior
notes, net of discount 1,499.4 -
Payments of notes payable and long-
term debt (2,494.8) (1,333.5)
Premiums paid on extinguishment of
debt (30.4) -
Fees paid to issue and retire
senior notes and certain hedging
relationships (20.8) -
Issuances of common stock 34.3 6.8
Excess income tax benefit from
stock option exercises 1.8 0.5
Purchases of common stock for
treasury (1.4) (0.5)
Cash dividends paid (144.9) (144.0)
Distributions paid to
noncontrolling interests (0.7) -
Cash used in financing activities (137.3) (791.2)
------ ------
Increase (decrease) in cash and
cash equivalents 8.0 (1.1)
Cash and cash equivalents at
beginning of period 48.0 68.7
Cash and cash equivalents at end of
period $56.0 $67.6
===== =====
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K as of and for the year ended December 31, 2009. All amounts below are in millions, except per share data.
REVENUE
The following table reflects our total revenue by line of business for the three and six months ended June 30, 2010 and 2009:
Three Months Ended June 30,
---------------------------
2010 2009
---- ----
Collection:
Residential $546.2 26.4% $550.6 26.6%
Commercial 622.7 30.1 633.8 30.7
Industrial 383.2 18.6 394.3 19.1
Other 7.0 0.4 6.4 0.3
--- --- --- ---
Total
collection 1,559.1 75.5 1,585.1 76.7
Transfer
and
disposal 791.4 809.7
Less:
Intercompany (400.3) (409.4)
------ ------
Transfer
and
disposal,
net 391.1 18.9 400.3 19.4
Other 116.2 5.6 80.7 3.9
----- --- ---- ---
Total
revenue $2,066.4 100.0% $2,066.1 100.0%
======== ===== ======== =====
Six Months Ended June 30,
-------------------------
2010 2009
---- ----
Collection:
Residential $1,080.9 26.9% $1,096.7 26.6%
Commercial 1,244.2 30.9 1,292.4 31.3
Industrial 731.3 18.2 777.2 18.8
Other 13.8 0.3 13.6 0.3
---- --- ---- ---
Total
collection 3,070.2 76.3 3,179.9 77.0
Transfer
and
disposal 1,483.8 1,585.4
Less:
Intercompany (757.8) (798.6)
------ ------
Transfer
and
disposal,
net 726.0 18.0 786.8 19.1
Other 227.9 5.7 159.9 3.9
----- --- ----- ---
Total
revenue $4,024.1 100.0% $4,126.6 100.0%
======== ===== ======== =====
The following table reflects changes in our core adjusted revenue for the three and six months ended June 30, 2010 and 2009. For comparative purposes, we have presented the components of our revenue changes for the three and six months ended June 30, 2009 assuming our merger with Allied occurred on January 1, 2008.
Three Months Six Months
Ended June Ended June
30, 30,
------------- -----------
2010 2009 2010 2009
---- ---- ---- ----
Core price 1.6% 3.4% 1.9% 3.4%
Fuel surcharges 1.1 (3.1) 0.7 (2.2)
Commodities 1.5 (2.5) 1.7 (2.7)
--- ---- --- ----
Total price 4.2 (2.2) 4.3 (1.5)
Volume (3.3) (10.3) (5.2) (9.1)
---- ----- ---- ----
Total internal growth 0.9 (12.5) (0.9) (10.6)
Acquisitions /
divestitures, net (0.9) (1.5) (1.6) (0.8)
Intercompany
eliminations - (0.3) - (0.3)
--- ---- --- ----
Total - % (14.3)% (2.5)% (11.7)%
=== ====== ===== ======
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
Earnings before Interest, Taxes, Depreciation, Depletion, Amortization and Accretion
Earnings before interest, taxes, depreciation, depletion, amortization and accretion (EBITDA), which is not a measure determined in accordance with GAAP, for the three and six months ended June 30, 2010 and 2009 is calculated as follows:
Three
Months Six Months
Ended June Ended
30, June 30,
----------- ----------
2010 2009 2010 2009
---- ---- ---- ----
Net income
attributable to
Republic
Services, Inc. $159.7 $225.9 $224.7 $338.9
Net income
attributable to
noncontrolling
interest 0.2 0.3 0.4 0.6
Provision for
income taxes 110.4 145.8 161.4 232.9
Other expense
(income), net 0.1 (1.3) (1.6) (1.6)
Interest income (0.1) (0.5) (0.1) (1.3)
Loss on
extinguishment of
debt - - 132.3 -
Interest expense 130.5 150.5 265.0 304.1
Depreciation,
amortization and
depletion 213.8 218.6 416.8 440.5
Accretion 20.2 21.9 40.4 45.2
---- ---- ---- ----
EBITDA $634.8 $761.2 $1,239.3 $1,359.3
====== ====== ======== ========
We believe that the presentation of EBITDA is useful to investors because it provides important information concerning our operating performance exclusive of certain non-cash costs. EBITDA 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, depletion, amortization 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 EBITDA may not be comparable to similarly titled measures presented by other companies.
Adjusted Earnings
Reported diluted earnings per share were $0.42 and $0.59 for the three and six months ended June 30, 2010, respectively, compared to $0.59 and $0.89 for the comparable 2009 periods. During the three and six months ended June 30, 2010 and 2009, we recorded a number of charges and other expenses and net gain on disposition of assets that impacted our EBITDA, 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 June 30, 2010
--------------------------------
Net Diluted
Pre-tax Income - Earnings
per
EBITDA Income Republic Share
------ ------ -------- ------
As
reported $634.8 $270.3 $159.7 $0.42
Costs to
achieve
synergies 8.5 8.5 5.3 0.01
Restructuring
charges 1.4 1.4 0.8 -
Loss
(gain) on
disposition
of assets
and
impairments,
net 1.1 1.1 0.6 -
Adjusted $645.8 $281.3 $166.4 $0.43
====== ====== ====== =====
Three Months Ended June 30, 2009
--------------------------------
Net Diluted
Pre-tax Income - Earnings
per
EBITDA Income Republic Share
------ ------ -------- ------
As
reported $761.2 $372.0 $225.9 $0.59
Costs to
achieve
synergies 10.1 10.1 6.2 0.02
Restructuring
charges 12.3 12.3 7.6 0.02
Loss
(gain) on
disposition
of assets
and
impairments,
net (150.1) (150.1) (92.8) (0.24)
Adjusted $633.5 $244.3 $146.9 $0.39
====== ====== ====== =====
Six Months Ended June 30, 2010
-------------------------------
Net Diluted
Pre-tax Income - Earnings
per
EBITDA Income Republic Share
------ ------ -------- ------
As
reported $1,239.3 $386.5 $224.7 $0.59
Loss on
extinguishment
of debt - 132.3 83.4 0.22
Costs to
achieve
synergies 17.5 17.5 10.7 0.02
Restructuring
charges 7.0 7.0 4.3 0.01
Loss
(gain) on
disposition
of assets
and
impairments,
net 1.6 1.6 0.9 -
Adjusted $1,265.4 $544.9 $324.0 $0.84
======== ====== ====== =====
Six Months Ended June 30, 2009
-------------------------------
Net Diluted
Pre-tax Income - Earnings
per
EBITDA Income Republic Share
------ ------ -------- ------
As
reported $1,359.3 $572.4 $338.9 $0.89
Loss on
extinguishment
of debt - - - -
Costs to
achieve
synergies 22.9 22.9 14.0 0.04
Restructuring
charges 43.6 43.6 26.6 0.07
Loss
(gain) on
disposition
of assets
and
impairments,
net (145.2) (145.2) (90.1) (0.24)
Adjusted $1,280.6 $493.7 $289.4 $0.76
======== ====== ====== =====
We believe that the presentation of adjusted EBITDA, adjusted pre-tax income, adjusted net income attributable to Republic Services Inc., and adjusted diluted earnings per share, which are not measures determined in accordance with GAAP, provide an understanding of operational activities before the financial impact of certain 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 EBITDA, 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 consolidated statements of cash flows. Our free cash flow for the three and six months ended June 30, 2010 and 2009 is calculated as follows:
Three Months Six Months
Ended June Ended June
30, 30,
------------- -----------
2010 2009 2010 2009
---- ---- ---- ----
Cash provided by operating
activities $295.7 $175.2 $594.8 $687.6
Purchases of property and
equipment (177.0) (161.7) (385.4) (355.1)
Proceeds from sales of property
and equipment 6.7 11.8 12.6 16.7
Free cash flow $125.4 $25.3 $222.0 $349.2
====== ===== ====== ======
We define adjusted free cash flow, which is not a measure determined in accordance with GAAP, as cash provided by operating activities, less property and equipment received, plus proceeds from sales of property and equipment, plus merger related expenditures, net of tax, plus tax settlement related to BFI risk management companies. Our adjusted free cash flow for the six months ended June 30, 2010 is calculated as follows:
Six Months
Ended
June 30,
2010
----
Cash provided by operating
activities $594.8
Property and equipment
received (327.9)
Proceeds from sales of
property and equipment 12.6
Merger related expenditures,
net of tax 11.9
Tax settlement related to BFI
risk management companies 110.6
Adjusted free cash flow $402.0
======
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 received, plus proceeds from sales of property and equipment, plus merger related expenditures, net of tax, plus tax settlement related to BFI risk management companies. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. 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 to which 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.
Purchases of property and equipment as reflected on our 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 consolidated statements of cash flows to property and equipment received during the period is as follows:
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2010 2009 2010 2009
---- ---- ---- ----
Purchases of property
and equipment per the
unaudited $177.0 $161.7 $385.4 $355.1
consolidated statements
of cash flows
Adjustments for property
and equipment received
during 22.6 10.8 (57.5) (34.2)
the prior period but
paid for in the
following period,
net
Property and equipment
received during the
period $199.6 $172.5 $327.9 $320.9
====== ====== ====== ======
The adjustments noted above do not affect our net change in cash and cash equivalents as reflected in our consolidated statements of cash flows.
As of June 30, 2010, accounts receivable was $898.4 million, net of allowance for doubtful accounts of $52.5 million, resulting in days sales outstanding of approximately 40 (or 25 net of deferred revenue).
CASH DIVIDENDS
In April 2010, we paid a cash dividend of $72.5 million to stockholders of record as of April 1, 2010. As of June 30, 2010, we recorded a dividend payable of $72.8 million to stockholders of record at the close of business on July 1, 2010, which was paid on July 15, 2010. In July 2010, our Board of Directors declared a regular quarterly dividend of $0.20 per share payable to stockholders of record as of October 1, 2010, which will be paid on October 15, 2010.
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," "projected" 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:
-- 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 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;
-- our business is capital intensive and may consume cash in excess of
cash flow from operations;
-- 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 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, 2009 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. You should not 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: wflower@republicservices.com
PRN Photo Desk,
http://photos.prnewswire.com/prnh/20100304/RSLOGO
SOURCE: Republic Services, Inc.
CONTACT: Media, Will Flower, +1-480-718-6565, or Investors, Ed Lang,
+1-480-627-7128, both for Republic Services, Inc.
Web Site: http://www.republicservices.com/