Republic Industries, Inc. Reports Q3 Income
30 October 1997
Republic Industries, Inc. Reports 183 Percent Increase In Net Income In Third Quarter 1997 Versus Same Period Last Year
FORT LAUDERDALE, Fla., Oct. 30 -- Republic Industries, Inc.
today reported that, for the three months ended September 30,
1997, net income increased 183 percent to $127.6 million, or twenty-nine cents
per share, from $45.1 million, or thirteen cents per share for the same period
in 1996. For the nine months ended September 30, 1997, net income increased
149 percent to $238.5 million, or fifty-six cents per share, from
$95.7 million or twenty-nine cents per share for the same period in 1996.
In early October, the Company completed the sale of its electronic
security services division to Ameritech Corporation for approximately
$610 million. Revenue and operating income for the three and nine months
ended September 30, 1997 and 1996, respectively, exclude the operating results
from the Company's security services division. Accordingly, the Company's
consolidated operating results have been restated to account for the operating
results from the Company's security services division as discontinued
operations.
Revenue for the three months ended September 30, 1997, increased to
$3.12 billion compared to $1.60 billion for the same period in 1996, an
increase of 95 percent. Revenue for the nine months ended September 30, 1997,
increased to $7.38 billion compared to $4.49 billion for the same period in
1996, an increase of 64 percent.
Operating income, before restructuring and non-recurring expenses, for the
three and nine months ended September 30, 1997, increased to $194.7 million
and $346.4 million or 123 percent and 95 percent, respectively, for the same
periods in 1996.
Commenting on the Company's performance in the third quarter of 1997,
Steven R. Berrard, President and Co-CEO of Republic Industries, said, "We are
pleased with the operating performance of all our business units. During the
quarter, our solid waste business achieved excellent margins and cash flow
while we accelerated our strategy of expanding into growing markets in the
western United States. Additionally, our rental car operations expanded with
impressive profitable growth. We also enhanced our domestic insurance
replacement and leisure automotive rental operations and expanded our presence
in the European automotive rental market. We continued to implement our
clustering strategy for our automotive retail operations by adding 30
automotive franchises and opening three additional AutoNation USA megastores.
Overall, this was an excellent quarter for our company. We are well on our
way towards a successful implementation of our business plan."
Republic Industries, Inc. operates subsidiaries in the automotive
retailing, automotive rental, automotive financial services and solid waste
services. The Company owns the nation's largest chain of new vehicle
dealerships and is building a chain of used car megastores which it operates
under the AutoNation USA brand name. Republic also owns National Car Rental
System, Inc., Alamo Rent-A-Car, Inc., Spirit Rent-A-Car, Inc., Value Rent-A-
Car, Inc., Snappy Car Rental, Inc. and EuroDollar (Holdings) plc.
REPUBLIC INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
(a) (a)
Revenue $3,123.6 $1,603.6 $7,377.4 $4,493.4
Expenses:
Cost of operations 2,591.9 1,289.4 6,139.2 3,654.3
Selling, general
and administrative 337.0 226.7 891.8 661.3
Restructuring and
non-recurring
expenses --- 7.6 94.1 7.6
Operating income 194.7 79.9 252.3 170.2
Interest income
(expense), net (0.4) (3.7) 1.2 (12.4)
Other income 1.6 5.4 106.6 11.1
Income from continuing
operations before
income taxes 195.9 81.6 360.1 168.9
Provision for
income taxes 71.5 38.6 131.1 79.1
Income from
continuing operations 124.4 43.0 229.0 89.8
Income from
discontinued operations,
net of income taxes 3.2 2.1 9.5 5.9
Net income $127.6 $45.1 $238.5 $95.7
Fully diluted income
per common and common
equivalent share:
Continuing operations $0.28 $0.12 $0.54 $0.27
Discontinued operations 0.01 0.01 0.02 0.02
Net income $0.29 $0.13 $0.56 $0.29
Weighted average common
and common equivalent
shares 439.8 344.5 426.8 335.8
(a) Operating results for the three and nine month periods ended
September 30, 1996 have been restated to reflect business combinations
accounted for under the pooling of interests method of accounting and to
account for the Company's electronic security services division as
discontinued operations.
REPUBLIC INDUSTRIES, INC.
UNAUDITED SUPPLEMENTAL SEGMENT DATA
(In millions)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenue:
Automotive
retail $1,918.1 61% $587.6 37% $4,256.8 58% $1,854.5 41%
Automotive
rental 905.3 29% 809.0 50% 2,286.1 31% 2,064.2 46%
Solid waste
services 300.2 10% 207.0 13% 834.5 11% 574.7 13%
$3,123.6 100% $1,603.6 100% $7,377.4 100% $4,493.4 100%
Operating Income:
Automotive
retail $27.6 1% $9.1 2% $55.0 1% $30.6 2%
Automotive
rental 115.0 13% 58.3 7% 161.3 7% 75.2 4%
Solid waste
services 60.5 20% 24.4 12% 151.6 18% 81.1 14%
Corporate
expenses (8.4) (4.3) (21.5) (9.1)
Restructuring
and non-
recurring
expenses -- (7.6) (94.1) (7.6)
$194.7 6% $79.9 5% $252.3 3% $170.2 4%
SOURCE Republic Industries, Inc.