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The Phoenix, Arizona-based company reported a rise in the first-quarter net income attributable to Republic Services to $113.0 million from $76.1 million or in the corresponding quarter last year. However, on a per share basis earnings for the quarter decreased to $0.30 from $0.41 in the last year, due to higher number of outstanding shares. On average, five analysts polled by Thomson Reuters estimated earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.
First quarter 2009 financial results include Allied Waste Industries, Inc. (Allied) which merged with Republic on December 5, 2008.
Revenue for the quarter increased to $2.06 billion from $779.2 million in the similar period last year. Analysts estimate revenue of $2.08 billion for the quarter.
Commenting on these results, James E. O'Connor, Chairman and CEO of Republic Services, said, "During the first quarter, we continued to see positive results regarding the merger of Republic and Allied. Thus far, we have captured more than $75 million in annual run-rate synergy savings. We are well on our way, and remain confident in our commitment, to secure a total annual savings of at least $150 million by the end of 2010."
Segment wise, Residential revenue for the quarter increased to $546.1 million from $204.90 million in corresponding period last year. Commercial revenue for the quarter increased to $658.6 million from $248.5 million in the first-quarter of fiscal 2008. Industrial revenue for the quarter was $382.9 million, up from $152.9 in the comparable period of 2008. Other revenues for the quarter was $7.20 million compared to $4.9 million last year.
Operating income for the quarter increased to $353.0 million from $142.2 million in the first-quarter of fiscal 2008.
Depreciation, amortization and depletion charges for the quarter was $221.8 million, up from $73.4 million in the comparable quarter of fiscal 2008.
Accretion charges for the quarter increased to $23.3 million from $4.40 million in the corresponding period last year.
Asset impairments and losses on sales of businesses for the quarter was $4.9 million compared to none in the same period of 2008. Restructuring charges for the quarter was $31.3 million compared to none in the prior-year similar period.
Interest expense for the quarter increased to $153.5 million from $21.4 million in the first-quarter of fiscal 2008. Interest income for the quarter declined to $0.7 million from $2.80 million in the last year similar period.
Provision for income taxes for the quarter was $87.0 million, up from $47.7 million in the year-ago corresponding period.
Looking forward, the company reaffirmed its fiscal 2009 GAAP earnings guidance in the range of $1.10 to $1.15 per share and adjusted earnings before the accounting impact of merger with Allied and restructuring charges in the range of $1.70 to $1.75 per share. Analysts currently estimate earnings of $1.33 per share for the full year 2009.
In April 2009, Republic Services received approximately $332 million in proceeds from the sale of certain businesses mandated by the United States Department of Justice. These proceeds were used to repay amounts borrowed under the company's revolving credit facility.
Donald Slager, President and COO of Republic Services, Inc. underlined that the company remains committed to achieve previous pricing guidance of 4% for the full year. Republic also declared a regular quarterly dividend of $0.19 per share for shareholders of record on July 1, 2009 payable on July 15, 2009.
Among others in the industry, Houston, Texas-based integrated waste services provider Waste Management, Inc. (WMI | Quote | Chart | News | PowerRating) reported a 35.7% year-over-year decline in profit for the first quarter, hurt by 14% revenue decline due to lower volumes and the deterioration of the recycling commodities markets. The company reported a net income of $155 million or $0.31 per share for the first quarter, lower that $241 million or $0.48 per share in the year-ago quarter. Excluding items, Waste Management's adjusted net income for the quarter declined to $208 million or $0.42 per share from $235 million or $0.47 per share in the prior-year quarter. Operating revenues for the quarter declined 14% to $2.81 billion from $3.27 billion in the same quarter last year.
Republic Services closed Thursday's regular trading at $21.00, up $0.29 or 1.40%, on a volume of 5.32 million shares on the NYSE.
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