Republic Services second quarter earnings decline

Republic Services, Inc. reported that revenue for the three months ended June 30, 2008 increased 2.4 percent to $827.5 million compared to $808.4 million for the same period in 2007.

The Company’s internal growth during the period was 3.9 percent, with a 7.0 percent increase from price, partially offset by a 3.1 percent decrease in volume. Net income for the three months ended June 30, 2008 was $62.3 million, or $.34 per diluted share, compared to $87.2 million, or $0.45 per diluted share, last year.

The Company’s income before income taxes for the three months ended June 30, 2008 includes a $34.0 million pre-tax charge ($21.8 million, or approximately $.12 per diluted share, net of tax) related to environmental conditions at the Company’s Countywide Recycling and Disposal Facility in Ohio. Net income for the three months ended June 30, 2007 includes a tax benefit of $5.0 million, or approximately $0.03 per diluted share, related to the effective closing of the Internal Revenue Service’s audits of the Company’s consolidated tax returns for fiscal years 2001 through 2004.

Operating income for the three months ended June 30, 2008 was $119.6 million, or 14.5 percent of revenue, compared to $153.1 million, or 18.9 percent of revenue, for the same period last year. Excluding the $34.0 million charge to operating expenses for the Company’s Countywide Recycling and Disposal Facility, operating income for the three months ended June 30, 2008 would have been $153.6 million, or 18.6 percent of revenue.

Revenue for the six months ended June 30, 2008 increased 2.1 percent to $1,606.7 million from $1,574.0 million for the same period in 2007. Net income for the six months ended June 30, 2008 was $138.4 million, or $0.75 per diluted share, compared to $141.1 million, or $0.72 per diluted share, for the same period last year. The Company’s income before income taxes for the six months ended June 30, 2008 includes a $34.0 million pre-tax charge ($21.8 million, or approximately $.12 per diluted share, net of tax) related to environmental conditions at the Company’s Countywide Recycling and Disposal Facility. The Company’s income before income taxes for the six months ended June 30, 2007 includes a $22.0 million pre-tax charge ($13.5 million, or approximately $.07 per diluted share, net of tax) related to environmental conditions at Countywide.

Operating income for the six months ended June 30, 2008 was $261.8 million, or 16.3 percent of revenue, compared to $267.8 million, or 17.0 percent of revenue, for the same period last year.