Republic Industries, Inc. Reports Fourth Quarter
28 January 1999
Republic Industries, Inc. Reports Fourth Quarter Comparable Net Income Rose 55 Percent To $103.7 Million, Or $0.22 Per Share
FORT LAUDERDALE, Fla., Jan. 28 -- Republic Industries, Inc.
today reported that for the three months ended December 31, 1998,
comparable net income increased 55 percent to $103.7 million, or $0.22 per
share, from $66.9 million, or $0.15 per share, last year. For the year ended
December 31, 1998, comparable net income rose 68 percent to $487.9 million, or
$1.04 per share, from $290.3 million, or $0.67 per share, last year. These
results exclude certain one-time gains as well as restructuring and other
charges. During the three months and year ended December 31, 1998, the
Company recorded a $11.6 million, or $0.02 per share, after-tax gain as income
from discontinued operations from finalizing the previous sale of its security
services division.
Revenue for the three months ended December 31, 1998 rose 65 percent to
$4.8 billion from $2.9 billion during the same period in 1997. Revenue for
the year ended December 31, 1998 increased 70 percent to $17.5 billion
compared to $10.3 billion last year.
Operating income for the three months ended December 31, 1998, increased
101 percent to $195.2 million from $97.3 million for the same period last
year. Operating income for the year ended December 31, 1998, increased 88
percent to $834.5 million from $443.7 million. The 1997 results exclude
restructuring and other charges.
Commenting on the Company's performance, Steven R. Berrard, Co-CEO of
Republic Industries, said, "1998 was a year of tremendous growth for Republic
Industries. We acquired or agreed to acquire 181 new car franchises and we
opened nine AutoNation USA megastores bringing our total to 34 company-owned
stores and eight franchise locations. We began rolling out our Global Odyssey
Operating System in our National Rental Car operations, we consolidated our
insurance replacement rental car operations under the CarTemps USA brand name,
and we opened 62 insurance replacement locations bringing our total to 388
locations."
Mr. Berrard added, "The highlight of our fourth quarter was the launch of
our Denver project, which includes innovative customer satisfaction and
customer retention initiatives. The initiatives include a one-low-price, no-
haggle selling environment, and the re-branding of all our dealerships as
'John Elway AutoNation USA.' The preliminary results of this project have
exceeded our expectations and support our advertising slogan 'It's about lower
prices. It's about higher standards. It's about time.(SM)' "
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 also owns 63.9% 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 Dec. 31, Twelve Months Ended Dec. 31,
1998 1997 1998 1997
Revenue $4,825.5 $2,928.2 $17,487.3 $10,305.6
Expenses:
Cost of operations 4,031.9 2,428.1 14,481.5 8,540.6
Selling, general and
administrative 598.4 402.8 2,171.3 1,321.3
Restructuring and
other charges --- 150.0 --- 244.1
Operating income
(loss) 195.2 (52.7) 834.5 199.6
Interest (expense)
income, net (5.8) 0.2 (17.7) 1.4
Other income (expense)(0.5) 7.8 (1.6) 114.4
Income (loss) from
continuing operations
before income taxes 188.9 (44.7) 815.2 315.4
Provision (benefit)
for income taxes 68.0 (15.9) 293.4 115.2
Income (loss) from
continuing operations
before minority
interest 120.9 (28.8) 521.8 200.2
Minority interest in net
income of subsidiary (17.2) --- (33.9) ---
Income (loss) from
continuing operations 103.7 (28.8) 487.9 200.2
Discontinued operations:
Income from discontinued
operations, net
of income taxes --- --- --- 9.5
Gain on disposal of
electronic security
segment, net of
income taxes 11.6 230.0 11.6 230.0
Income from discontinued
operations 11.6 230.0 11.6 239.5
Net income $115.3 $201.2 $499.5 $439.7
Diluted income (loss)
per common and
common equivalent share:
Continuing
operations $0.22 $(0.07) $1.04 $0.46
Discontinued
operations 0.02 0.54 0.02 0.56
Net income $0.24 $0.47 $1.06 $1.02
Weighted average
common and common
equivalent shares 472.6 427.6 470.9 430.9
REPUBLIC INDUSTRIES, INC.
UNAUDITED SUPPLEMENTAL SEGMENT DATA
(In millions)
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
1998 1997 1998 1997
Revenue:
Auto-
motive
retail $3,640.6 75.4% $1,866.0 63.7% $12,664.6 72.4% $6,122.8 59.4%
Auto-
motive
rental 807.5 16.8% 769.0 26.3% 3,453.6 19.8% 3,055.1 29.7%
Solid
waste
services 377.4 7.8% 293.2 10.0% 1,369.1 7.8% 1,127.7 10.9%
$4,825.5 100.0% $2,928.2 100.0% $17,487.3 100.0% $10,305.6100.0%
Operating Income:
Auto-
motive
retail $105.7 2.9% $26.6 1.4% $395.8 3.1% $81.6 1.3%
Auto-
motive
rental 20.0 2.5% 19.4 2.5% 193.7 5.6% 180.7 5.9%
Solid
waste
services 83.1 22.0% 59.9 20.4% 299.3 21.9% 211.5 18.8%
Corporate
expenses(13.6) (8.6) (54.3) (30.1)
Restructuring
and other
charges --- (150.0) --- (244.1)
$195.2 4.0% $(52.7) -1.8% $834.5 4.8% $ 199.6 1.9%