Republic Services reports first quarter earnings and declares dividend
Republic Services, Inc. reported that revenue for the three months ended March 31, 2007 increased 3.8 percent to $765.6 million compared to $737.5 million for the same period in 2006.
Internal growth for the three months ended March 31, 2007 was 4.1%, with 5.8% from price and negative 1.7% from volume.
Net income for the three months ended March 31, 2007, was $53.9 million, or $0.28 per diluted share, compared to $64.6 million, or $0.31 per diluted share last year. The Company’s income before income taxes for the three months ended March 31, 2007 includes a $22.0 million pre-tax charge ($13.5 million net of tax), or approximately $.07 per diluted share. This is related to estimated costs to comply with Final Findings and Orders issued by the Ohio Environmental Protection Agency in response to environmental conditions at the Company’s Countywide Recycling and Disposal Facility in East Sparta, Ohio. Net income for the three months ended March 31, 2007 also includes $4.2 million of additional income taxes, or approximately $.02 per diluted share, related to the resolution of various income tax matters.
The Company’s shares of treasury stock, earnings per share and weighted average common and common equivalent shares outstanding have been retroactively adjusted for all periods to reflect a 3-for-2 stock split effective March 16, 2007.
Operating income for the three months ended March 31, 2007 was $114.7 million, or 15.0% as a percentage of revenue, compared to $122.4 million, or 16.6% as a percentage of revenue, for the same period last year. Excluding $21.3 million of operating expenses included in the charge for the Company’s Countywide Disposal Facility, operating income for the three months ended March 31, 2007 would have been $136.0 million, or 17.8% as a percentage of revenue.
Republic announced that its board of directors declared a regular quarterly dividend of $0.1067 per share for shareholders of record on July 2, 2007.