Republic Industries, Inc. Reports Third Quarter Income
29 October 1998
Republic Industries, Inc. Reports Third Quarter Income From Continuing Operations Rose 47% To $179.7 Million, Or $0.38 Per Share
FT. LAUDERDALE, Fla., Oct. 28 -- Republic Industries, Inc.
today reported that for the three months ended September 30, 1998,
income from continuing operations increased 47 percent to $179.7 million, or
$0.38 per share, from $122.1 million, or $0.28 per share for the same period
last year. For the nine months ended September 30, 1998, income from
continuing operations increased 68 percent to $384.2 million, or $0.82 per
share, from $229.0 million or $0.54 per share for the same period last year.
Revenue for the three months ended September 30, 1998 rose 67 percent to
$4.9 billion from $2.9 billion in the same period in 1997. Revenue for the
nine months ended September 30, 1998 increased 72 percent to $12.7 billion
compared to $7.4 billion last year.
Operating income for the three months ended September 30, 1998 increased
60 percent to $304.5 million compared to $190.3 million for the same period
last year. Operating income for the nine months ended September 30, 1998,
increased 85 percent to $639.3 million from $346.4 million, excluding
restructuring and other charges last year.
Commenting on the Company's performance, Steven R. Berrard, President and
Co-CEO of Republic Industries, said, "During the third quarter of 1998 we
achieved strong revenue growth in all divisions. Operating margins rose
significantly in both the automotive retail and the solid waste operations.
Also, during the quarter, the Automotive Retail Group laid the groundwork in
Denver for rolling out our strategy to redefine the customer buying
experience. We acquired 44 automotive franchises, bringing our total to 357.
We opened one AutoNation USA megastore raising our total to 30 company-owned
megastores and eight franchise locations."
Mr. Berrard added, "During the quarter, we made significant strides in the
roll-out of the Odyssey operating system at our National Car Rental locations.
Alamo began re-positioning its brand to become the leading value oriented
rental car company. Also in the quarter, CarTemps USA opened 14 insurance
replacement locations bringing its total to 351 locations."
Republic Industries, Inc. operates subsidiaries in the automotive
retailing and automotive rental 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 USA brand name. Republic
also owns National Car Rental System, Inc., Alamo Rent-A-Car, Inc. and
CarTemps USA. The Company owns 63.9 percent of Republic Services, Inc.
, one of the leading providers of non-hazardous solid waste
collection and disposal services in the United States.
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance, or achievements of the Company to be
materially different from any future results, performance, or achievements
expressed or implied in such forward-looking statements. Additional
discussion of factors that could cause actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in the Company's SEC filings.
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,
1998 1997 1998 1997
(a)
Revenue $4,868.6 $2,921.3 $12,661.8 $7,377.4
Expenses:
Cost of operations 3,971.0 2,390.0 10,449.6 6,112.5
Selling, general and
administrative 593.1 341.0 1,572.9 918.5
Restructuring and
other charges --- --- --- 94.1
Operating income 304.5 190.3 639.3 252.3
Interest (expense) income,
net (1.2) --- (11.9) 1.2
Other income (expense) 3.5 1.5 (1.1) 106.6
Income from continuing
operations before
income taxes 306.8 191.8 626.3 360.1
Provision for income
taxes 110.4 69.7 225.4 131.1
Income from continuing
operations before
minority interest 196.4 122.1 400.9 229.0
Minority interest in net
income of subsidiary (16.7) --- (16.7) ---
Income from continuing
operations 179.7 122.1 384.2 229.0
Income from discontinued
operations --- 3.2 --- 9.5
Net income $179.7 $125.3 $384.2 $238.5
Diluted income per common
and common equivalent share:
Continuing operations $0.38 $0.28 $0.82 $0.54
Discontinued operations --- 0.01 --- 0.02
Net income $0.38 $0.29 $0.82 $0.56
Weighted average common
and common equivalent
shares 475.6 437.3 469.3 425.4
(a) Operating results for the three month period ended September 30, 1997
have been restated to reflect business combinations accounted for under the
pooling of interests method of accounting.
REPUBLIC INDUSTRIES, INC.
UNAUDITED SUPPLEMENTAL SEGMENT DATA
(In millions)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenue:
Automotive
retail $3,508.0 72.0% $1,728.4 59.2% $9,024.0 71.3% $4,256.8 57.7%
Automotive
rental 1,005.6 20.7% 905.3 31.0% 2,646.1 20.9% 2,286.1 31.0%
Solid waste
services 355.0 7.3% 287.6 9.8% 991.7 7.8% 834.5 11.3%
$4,868.6 100% $2,921.3 100% $12,661.8 100% $7,377.4 100%
Operating Income:
Automotive
retail $129.5 3.7% $24.8 1.4% 290.1 3.2% 55.0 1.3%
Automotive
rental 109.5 10.9% 115.1 12.7% 173.7 6.6% 161.3 7.1%
Solid waste
services 79.0 22.3% 58.9 20.5% 216.2 21.8% 151.6 18.2%
Corporate
expenses (13.5) (8.5) (40.7) (21.5)
Restructuring
and other
charges --- --- --- (94.1)
$304.5 6.3% $190.3 6.5% $639.3 5.0% $252.3 3.4%