Republic Industries, Inc. Reports Q1 Earnings
21 April 1998
Republic Industries, Inc. Reports Earnings Of $.17 Per Share For The First Quarter A 21% Increase Over Consensus Analysts' Estimates Of $.14 Per Share
FORT LAUDERDALE, Fla., April 21 -- Republic Industries, Inc.
today reported that for the three months ended March 31, 1998 net
income increased 105 percent to $77.1 million, or seventeen cents per share,
from $37.6 million, or nine cents per share for the same period in 1997.
Revenue for the three months ended March 31, 1998 increased 87 percent to
$3.42 billion from $1.83 billion for the same period in 1997.
Operating income for the three months ended March 31, 1998 increased 161
percent to $124.1 million compared to $47.5 million for the same period in
1997.
Commenting on the Company's performance in the first quarter of 1998,
Steven R. Berrard, President and Co-CEO of Republic Industries, said,
"Overall, this was an outstanding quarter for the company. We achieved
significant growth in revenue and operating margins in our automotive retail,
automotive rental and solid waste operations. Our automotive retail
operations continue to experience the benefits of operating as one division.
In addition, we are making significant strides in implementing our automotive
retail districts in key markets across the United States. During the quarter,
we added 76 automotive franchises and opened an additional AutoNation USA
megastore, increasing our total to 26 megastores.
"In our automotive rental segment, we introduced the CarTemps USA brand
name for its insurance replacement operations. Internationally, we rebranded
our European automotive rental operations under the National and Alamo brand
names. We are now in a unique position to leverage our National, Alamo and
CarTemps USA brands in the business, leisure and insurance replacement market
segments. Also, during the quarter, our solid waste operations acquired
several companies to complement its existing operations. We are well on our
way towards the successful execution of our business plan."
Republic Industries, Inc. operates subsidiaries in the automotive
retailing, automotive rental, and solid waste services industries. 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 brand
name. Republic also owns National Car Rental System, Inc., Alamo Rent-A-Car,
Inc. and CarTemps USA.
REPUBLIC INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months Ended March 31,
1998 1997
(a)
Revenue $3,419.9 $1,825.4
Expenses:
Cost of operations 2,841.2 1,521.7
Selling, general and
administrative 454.6 256.2
Operating income 124.1 47.5
Interest income (expense), net (1.7) 3.9
Other income (expense) (2.0) 3.5
Income from continuing operations
before income taxes 120.4 54.9
Provision for income taxes 43.3 20.0
Income from continuing
operations 77.1 34.9
Income from discontinued
operations --- 2.7
Net income $77.1 $37.6
Diluted income per common and
common equivalent share:
Continuing operations $0.17 $0.09
Discontinued operations --- ---
Net income $0.17 $0.09
Weighted average common and
common equivalent shares 458.4 404.1
(a) Operating results for the three month period ended March 31, 1997 have
been restated to reflect business combinations accounted for under the pooling
of interests method of accounting and to account for the Company's former
electronic security services division as discontinued operations.
REPUBLIC INDUSTRIES, INC.
UNAUDITED SUPPLEMENTAL SEGMENT DATA
(in millions)
Three Months Ended March 31,
1998 1997
Revenue:
Automotive retail $2,343.4 68.5% $947.0 51.9%
Automotive rental 775.7 22.7% 641.3 35.1%
Solid waste services 300.8 8.8% 237.1 13.0%
$3,419.9 100.0% $1,825.4 100.0%
Operating Income:
Automotive retail $56.4 2.4% $14.2 1.5%
Automotive rental 19.1 2.5% (0.3) ---
Solid waste services 62.8 20.9% 39.8 16.8%
Corporate expenses (14.2) (6.2)
$124.1 3.6% $47.5 2.6%
SOURCE Republic Industries, Inc.