News Releases

Republic Services, Inc. Reports Second Quarter Positive Internal Growth and Increases Earnings Guidance
- Company increases 2010 guidance - Adjusted EPS guidance raised from a range of $1.63-$1.67 per diluted share to $1.69-$1.71 - Adjusted Free Cash Flow guidance raised by $25 million to a range of $725 million to $750 million - Internal growth positive for the first time since 2008 - Adjusted EBITDA margin for the three months ended June 30, 2010 of 31.3%
PRNewswire-FirstCall
PHOENIX

Republic Services, Inc. today reported net income of $159.7 million, or $0.42 per diluted share, for the three months ended June 30, 2010, versus $225.9 million, or $0.59 per diluted share, for the comparable period last year. During the three months ended June 30, 2009, the Company recorded a gain of $150.1 million, or $0.24 per diluted share, associated with divestitures mandated by the United States Department of Justice.

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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

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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.