Slide 1: Financial Highlights
Selected Financial Data As of and for the Years Ended December 31, (In millions, except per share data)
1997 Revenue . . . . . . . . . . . . . . . . . . . . . Income from continuing operations before extraordinary charge. . . . . . . . Net income (loss) . . . . . . . . . . . . . . Basic earnings (loss) per share: Continuing operations . . . . . . . Discontinued operations . . . . . . Extraordinary charge. . . . . . . . . Net income (loss) . . . . . . . . . . . . Diluted earnings (loss) per share: Continuing operations . . . . . . . . Discontinued operations . . . . . . Extraordinary charge. . . . . . . . . Net income (loss) . . . . . . . . . . . . Total assets . . . . . . . . . . . . . . . . . . . Revenue earning vehicle debt. . . . Long-term debt, net of current maturities. . . . . . . . . . . . . . . . . . Shareholders’ equity . . . . . . . . . . . $10,305.6
1996 $6,094.6
1995 $4,526.9
1994 $3,376.8
1993 $2,695.3
$ $ $ $ $ $ $ $ $ $
200.2 439.7 .50 .59 — 1.09 .46 .56 — 1.02
$ 7.4 $ (15.8) $ $ $ $ $ $ $ $ .02 .03 (.10) (.05) .02 .02 (.09) (.05)
$ $ $ $ $ $ $ $ $ $
38.3 18.1 .16 (.08) — .08 .15 (.08) — .07
$ $ $ $ $ $ $ $ $ $
48.5 47.1 .26 (.01) — .25 .26 (.01) — .25
$ $ $ $ $ $ $ $ $ $
37.8 12.2 .21 (.14) — .07 .21 (.14) — .07
$10,527.3 $ 4,172.1 $ 370.9 $ 3,484.3
$6,735.0 $3,380.4 $ 393.6 $1,413.0
$5,336.8 $2,961.2 $ 329.7 $ 772.8
$3,405.5 $1,829.2 $ 298.9 $ 425.8
$2,921.9 $1,509.1 $ 265.2 $ 368.2
See Notes 2, 4, 6, 10 and 11 of Notes to Consolidated Financial Statements for discussion of business combinations, notes payable and long-term debt, shareholders’ equity, restructuring and other charges and discontinued operations and their effect on comparability of year-to-year data.
REVENUE
($ in millions)
$12000 10,306 $12,000
TOTAL ASSETS
($ in millions)
$3600 10,52
SHAREHOLDERS’ EQUITY
($ in millions)
3,484
9000
9,000
2700
6,735 6,095 6000 4,527 3,377 3000 2,695 3,000 2,922 3,406 900 426 773 368 6,000 5,337 1800 1,413
0 1993 1994 1995 1996 1997
Source: Republic Industries, Inc., 1997
0 1993 1994 1995 1996 1997
Source: Republic Industries, Inc., 1997
0 1993 1994 1995 1996 1997
Source: Republic Industries, Inc., 1997
Slide 2: 2
A Message from Management
Dear Fellow Shareholder: In this space last year, we told you that Republic Industries would “continue to expand in exciting ways” during 1997. As it turns out, that may have been an understatement. The growth that your company experienced in 1997 was nothing short of dramatic. During the year, revenue increased to $10.3 billion compared to the $2.3 billion we reported in our 1996 annual report. Net income increased to $300 million, or seventy cents per share, excluding non-recurring gains and charges. And while we closed 1996 with only one franchised vehicle dealership, by the end of 1997, Republic had become America’s largest automotive retailer, with more than 270 franchised vehicle dealerships owned or under contract. At the
same time, we merged our dealerships and used car megastores into a single “Automotive Retail” division, and in the process we enlarged our automotive “family” to include more than 50 of the most successful vehicle dealers in America. Every one of these dealers plays a key role in our success. Also during 1997, we opened 18 additional AutoNation USA used vehicle megastores, bringing the total number of megastores in operation to 25. And early in 1998, we opened our 26th AutoNation USA megastore. In our automotive rental division, Republic’s 1997 acquisitions of the National, Snappy, Spirit, Value, and EuroDollar vehicle rental companies, combined with the earlier acquisition of Alamo Rent-A-Car, established us as one of the leading vehicle rental companies in the world.
From left to right: Steven R. Berrard, President & Co-Chief Executive Officer, Harris W. Hudson, Vice Chairman & H. Wayne Huizenga, Chairman of the Board & Co-Chief Executive Officer.
Slide 3: In the solid waste segment, strategic acquisitions and strong internal growth propelled Republic into the leading ranks of solid waste companies in America. Major waste acquisitions during the year included Taormina Industries in California, Silver State Disposal Services in Nevada, National Serv-All in Indiana and AAA Disposal Services/Rainbow Industries in Virginia. One of the most significant milestones of the year is the fact that we grew from fewer than 5,000 employees at the end of 1996, to more than 50,000 employees by the end of 1997. Notwithstanding the significant operational and financial gains during the year, Republic’s stock price for much of 1997 did not reflect our achievements. This was a major disappointment, especially since the fundamentals of our businesses are sound and the consensus for the future is bright. The consensus analysts’ estimate for 1998 is for a nearly 80 percent increase in revenue to $18 billion and full-year earnings per share of $1.20 – an increase of more than 70 percent versus 1997. Our main mission in 1998 is to do our best to ensure that our businesses produce these results. We believe that this kind of continued strong financial performance will be reflected in the stock price. And what is our strategy for achieving these results? In the automotive retail segment, Republic seeks to become America’s leading retailer of transportation products and services. To do this, we have assembled an unparalleled network of franchised dealerships and used car megastores. Experienced dealers manage these operations. Working in retail districts, they are eliminating inefficiencies and lowering costs. And by cooperating on such key business drivers as inventory management, marketing, advertising, sales, service, and management, our dealer partners are helping Republic become the low cost provider of new and used vehicles wherever we compete – improving margins and building customers for life in the process. In the vehicle rental segment, Republic is leveraging the equity of its brand names to improve its business in three areas: business, leisure and local/replacement rentals. In the business rental arena, National has made significant improvements in its customer service record. This progress was confirmed recently by a J.D. Power survey in which National tied with Hertz and Avis for first place in an annual measurement of customer satisfaction. On the leisure side, Alamo remains a leading provider of rental vehicles at many of the most popular vacation destinations in the world. And in the local/replacement rental category, Republic has launched the CarTemps USA™ brand to serve customers who want to rent a vehicle for personal
or family use, or to replace a vehicle that is being repaired. At the same time, Republic is making a significant investment in upgrading the computerized reservation systems of its vehicle rental companies. These system improvements will enable improved fleet coordination among all of our vehicle rental companies. In its solid waste segment, Republic’s strategy is to grow revenue and earnings through internal sources and strategic acquisitions. We believe the move toward consolidation in solid waste will continue and that Republic will play an important role in this trend. We are also leveraging our scale to achieve operating efficiencies and to improve margins in existing operations. Also during 1997, Republic Industries welcomed Robert Brown, Chairman and Chief Executive Officer of B&C Associates, Inc., to your Board of Directors. Mr. Brown brings more than 35 years of management experience to his post. His company helped pioneer the field of social and public responsibility. 1997 was indeed a year of tremendous growth for your company. Our automotive retail division became the largest vehicle retailer in the country. Our vehicle rental division became one of the largest automotive rental companies in America. And our solid waste division joined the ranks of the nation’s largest waste companies. We look forward to your support as we continue to grow in the years to come. Sincerely,
H. Wayne Huizenga Chairman & Co-Chief Executive Officer
Steven R. Berrard President & Co-Chief Executive Officer
Harris W. Hudson Vice Chairman & Chairman Republic Solid Waste Division
Slide 4: 4
The U.S. Auto Industry: A Trillion Dollar Opportunity
The U.S. vehicle retail and vehicle rental industry – defined as new and used vehicle retailing, vehicle rentals, parts and service, and vehicle finance – accounts for more than $1.3 trillion in annual revenue, making it one of the largest industries in America. Beyond its size, the vehicle retail and vehicle rental industry is undergoing dramatic changes, as market forces drive greater operating efficiencies, higher consumer satisfaction and stronger brand presence. A highly fragmented market with excess costs, disgruntled consumers and no strong national retail brand translates into “the trillion dollar opportunity” – an opportunity that Republic Industries is uniquely positioned to develop.
1997 DOMESTIC AUTOMOTIVE MARKET
($ in billions)
Retail New Vehicles $330 Used Vehicles $370
Rental $16
Finance $459
Parts/ Service $189
$1.3 Trillion Opportunity
Source: National Automobile Dealers Association
The challenge for Republic is to use its financial resources, operating expertise, marketing skills and vast retailing experience to achieve its goal of becoming the nation’s leading retail provider of automotive transportation and related services. Republic participates in every segment of the automotive retail industry, positioning itself as the “total transportation solution” to its customers’ needs. Our broad-based participation will allow us to take a total life-cycle approach to each vehicle. Using this strategy, we look at each vehicle as an asset whose value can be maximized through multiple transactions throughout its useful life. Automotive Retail: A Fragmented Industry The automotive retail business is highly fragmented. According to industry data, the top
100 dealership groups in the United States have a combined (in thousands) 30 29.6 market share of less than 27.9 10 percent of a $700 billion 24.7 24.8 25 22.6 market. Republic enjoys the 20 largest share at slightly more 15 than one percent. Further, these 100 dealership groups 10 account for no more than 5 roughly five percent of total 0 dealerships in the United 1975 1980 1985 1990 1997 Source: National Automobile Dealers Association States, underscoring the fragmented state of automotive retailing. In all, there are more than 22,000 franchised dealerships in the United States today, down from more than 36,000 in 1960. To further illustrate this fragmentation, compare the automotive retail industry to the consumer electronics industry, where the top 10 players have a combined 60 percent share; or to the home improvement industry, where the top 10 companies account for 40 percent of the VALUE OF VEHICLE market. In short, despite the SALES TRANSACTIONS ($ in billions) rapid growth of Republic, $800 automotive retailing in the 688 700 700 660 United States remains a 366 370 627 363 600 342 very fragmented business. 527 500 279 With fragmentation comes significant inefficiencies 400 300 322 330 that increase the price that 297 285 200 248 consumers pay for a vehicle. 100 According to industry statistics, 0 1993 1994 1995 1996 1997 as much as 30 percent of a USED VEHICLES NEW VEHICLES vehicle’s selling price is tied Source: National Automobile Dealers Association up in distribution costs. Clearly, the potential to provide greater value to consumers by reducing costs through consolidation and operating efficiencies is significant. Considering that today’s average price of a new vehicle is nearly $23,000, which most Americans cannot afford, it’s not surprising that alternatives to traditional automotive retailing, such as buying services and the internet, have developed quickly. A fragmented and inefficient industry has translated into a fickle and unsatisfied consumer. Many customers never return to the same dealership for service, much less to buy another vehicle.
DECLINE IN THE NUMBER OF DEALERSHIPS
Slide 5: DEALERSHIP PROFIT BY DEPARTMENT 1985
New Vehicle Sales 77% Used Vehicle Sales 7% Parts & Service 16% New Vehicle Sales 14%
1997
Parts & Service 57%
in other ways. According to industry estimates, approximately 30 percent of the total number of used vehicle sales are made through classified ads and casual private transactions between individuals. In addition, more than two-thirds of consumers do not like negotiating price and 15 percent pay someone else to do the negotiating. Vehicle Rental: Continuing Opportunities The U.S. vehicle rental business has undergone a dramatic transformation in a short time. Whereas many rental companies were once owned and used by auto manufacturers to dispose of vehicles that could not be sold at retail, vehicle rental companies today are owned primarily by companies working to maximize revenue and profitability. Revenue in the vehicle rental business is expected to grow at a healthy rate through DOMESTIC VEHICLE RENTAL REVENUE the remainder of the decade, GROWTH ($ in billions) and analysts expect the 16.4 industry to grow to $20 billion $16 14.6 13.0 by the end of the year 2000. 12.7 12 Republic is well 11.1 positioned to become a major 8 player in the vehicle rental industry, with National Car 4 Rental as its primary business brand, Alamo Rent-A-Car as 0 the main brand for leisure 1993 1994 1995 1996 1997 Source: Auto Rental News travelers, and CarTemps USA as its new brand in the local/replacement rental business – a market segment that serves consumers whose own vehicles are being repaired or replaced. In summary, this is the U.S. vehicle retail and vehicle rental 1997 DOMESTIC RENTAL industry today: a huge, yet VEHICLE FLEETS fragmented market under(in thousands) 310 going dynamic change in an 300 250 effort to deliver increased consumer value while 200 200 eliminating unnecessary 125 costs and achieving greater 100 profitability. It is a market looking for what Republic 0 Industries is uniquely BUDGET AVIS HERTZ REPUBLIC positioned to provide. Source: Auto Rental News
Used Vehicle Sales 29%
Source: National Automobile Dealers Association
A recent New York Times survey found that only 14 percent of automotive consumers are satisfied with their buying experience, and a University of Maryland study said that consumers would rather visit a dentist than a vehicle dealer. Given the great number of dealerships and the low levels of consumer satisfaction, it is also not surprising that there is little retail brand equity in the dealer community. The marketing opportunity based on this consumer dissatisfaction is to build a retail brand that consumers know and trust. This is what Republic is doing with its AutoNation USA brand. Republic believes the consolidation trend in the franchised vehicle dealership segment will continue, given the auto manufacturers’ increasing recognition that their dealership networks are too large. Republic is in the vanguard of this consolidation process. Used Vehicles: A Booming Consumer Market Over the last decade, the used vehicle market has performed even better than the new vehicle retail market, with revenue increasing at a six percent annual rate. Also, used vehicle margins are generally higher than those for new vehicles. Growth in the used vehicle market has been spurred by the increasing price of new vehicles, the availability of a range of financing options, and improved vehicle quality. The result is that the used vehicle market has become a primary profit maker for many franchised vehicle dealerships. American consumers are generally as unhappy with their used vehicle buying experiences as they are with their new vehicle buying experience. They are often dissatisfied with the service, pricing and quality offered by traditional vehicle dealers. Their dissatisfaction has caused them to seek used vehicles
Slide 6: 6
The District Model: Delivering Greater Consumer Value
During 1997, Republic merged its franchised vehicle dealerships and used vehicle megastores into a single division. The company also established a network of automotive retail districts for operating these combined businesses. Republic expects the results of these actions to include significantly enhanced operating efficiencies. A major goal of every retail district is to ensure that Republic is consistently the low cost provider. Making good on
this promise will move Republic toward its objective of building “customers for life.” Each district is managed by an experienced automotive retailer familiar with the given market, providing Republic with the opportunity to leverage his or her local knowledge. The district model is designed to deliver consumer benefits by leveraging economies of scale to lower advertising costs, and to achieve discounts on parts and supply buying, insurance and other administrative expenses. We believe these savings and other efficiencies will position Republic as the
South Florida
Slide 7: low cost provider for both new and used vehicles. Coupled with our efforts to build services that drive customer satisfaction, our district model provides a way for Republic to leverage the talents and thousands of years of collective experience of its world-class automotive retailers. Then there are the benefits of having experienced automotive people working together to make local market decisions. This wealth of talent is every bit as important an asset as the vehicles we sell, finance, rent and repair. Automotive retailers in each district are developing customer-friendly operating standards
that will be implemented across the district and which will ultimately be applied throughout AutoNation USA. In addition, retailers in each district are working together to share “best practices,” so that customers will enjoy a similar vehicle buying experience when they come to any Republic franchised vehicle dealership or used vehicle megastore. These best practices run the spectrum, from the most efficient way to manage inventory, to those programs and policies that best deliver on customer satisfaction.
Slide 8: 8
Another benefit of the district model is that the AutoNation USA used vehicle megastores will also benefit from the inventory generated by Republic’s network of high-quality franchised vehicle dealerships that sell over 35 different vehicle brands. Republic is developing an inventory management system that will enable it to track and move inventory in each district, based on the needs of consumers and the individual vehicle dealerships and used vehicle megastores in that district. The objective is to ensure that the vehicle inventory in our megastores and dealerships
reflects the consumer-buying patterns of each specific market. In time, Republic will build the brand equity of the AutoNation USA name so that it spans our entire automotive retail division, making AutoNation USA the first truly national, broad-based retail automotive brand in the United States. AutoNation USA provides customers with a consistently highquality vehicle buying experience, no matter which Republic outlet they visit. This is basic to building the kind of brand equity that will differentiate
Slide 9: AutoNation USA from the competition. We deliver a variety of benefits to all of our customers: a convenient, comfortable atmosphere in which to shop; fair, honest service; a range of vehicles and price points to choose from; an equally broad range of financing alternatives and access to a growing range of benefits that come from being a “citizen” of AutoNation USA. These benefits should translate into the lifelong relationship with customers that is the cornerstone of our strategy.
AUTOMOTIVE RETAIL DISTRICTS
276 Franchise Dealerships
30 So. California 28 South Texas 9 Southwest 31 Denver 18 Northwest 32 Southeast 17 North Texas 33 Northeast 35 South Florida 43 North Florida
Slide 10: 10
Buying A Used Vehicle: AutoNation USA Makes It Easy
For many people, buying a used vehicle is one of life’s truly unpleasant experiences. Poor service, limited selection and a lack of convenience are hallmarks of the traditional used vehicle buying experience. The process is ripe for change. Republic’s AutoNation USA used vehicle megastores are helping to drive this change. AutoNation USA “makes it easy” for consumers to
buy a used vehicle and backs it up with no-haggle prices, a large and broad selection of high quality vehicles, customer-friendly sales assistance, a 99-day limited warranty and a seven-day money back guarantee. AutoNation USA’s goal is to offer the lowest priced, highest quality used vehicles, supplemented by a package of “citizenship” benefits that create even more value in the relationship with our customers. Citizens of AutoNation USA receive a “passport,” which entitles them to several benefits, including one year of free 24-hour roadside assistance and discounts
Coconut Creek, Florida
Slide 11: on automotive merchandise at AutoGear accessory shops within the AutoNation USA megastores. We are exploring additional services that would make passport citizenship even more valuable, including access to service and repair work and discounts on rental vehicles from Republic’s vehicle rental companies. From the moment a customer sets foot in an AutoNation USA megastore, he or she knows that they are in an environment very different from the usual. Everything – from the open, customer-friendly store layout to the spacious outdoor display areas, to
Slide 12: 12
the indoor play centers for kids to the coffee bar/cafe – conveys comfort, convenience and friendliness to the consumer. In 1997, Republic opened 18 new AutoNation USA megastores, bringing the total number of megastores to 25 at year’s end. Republic opened its 26th AutoNation USA megastore in early 1998. This greater critical mass enables the company to begin building a national automotive retail brand. The sites necessary for additional future expansion have been identified and most are under various
forms of binding agreements. In addition, we intend to drive additional revenue and earnings through expansion of our captive finance subsidiary. AutoNation USA’s finance arm will provide a strong competitive advantage over traditional vehicle dealers by offering special financing terms and innovative financial products to AutoNation USA buyers. In 1998, AutoNation USA will also benefit greatly from the district model concept, especially as it relates to the sourcing of quality used vehicles. Our
Slide 13: goal for 1999 is to obtain the majority of AutoNation USA’s used vehicles from internal sources.This will give Republic a clear and sustainable competitive advantage versus competitors. AutoNation USA will continue to build on its consumer-friendly positioning while adding new customer benefits and new locations. In doing so, it will improve the used vehicle buying process and it will build the value of its brand franchise.
Reconditioning Centers – 7
AUTONATION USA MEGASTORES
AutoNation USA Megastores – 26
Slide 14: 14
Republic Vehicle Rental Division: Building on Momentum
During 1997, Republic became the largest on-airport vehicle rental company in America, as measured by fleet size. As such, the company is well positioned to take full advantage of the changes that are driving dramatic growth and expansion in the vehicle rental market. Republic acquired six different vehicle rental brands in the past 18 months, including Alamo Rent-A-Car and National Car Rental System. We
have integrated all of these rental companies into a single division, to take full advantage of group purchasing opportunities and administrative efficiencies. This is expected to drive down costs and improve margins. Our ability to manage costs make the prospects for increases in vehicle rental profitability extremely bright. Republic’s National Car Rental brand is a leader in the business travel market, while Alamo Rent-A-Car has a similar position in the leisure market. Because National rents most of its vehicles during the week and Alamo is busiest on weekends, we are looking to
Newark, New Jersey
Slide 15: take advantage of opportunities in markets that will result in better fleet utilization and more profitable, productive use of each rental vehicle. At the moment, sharing of fleet between the two companies is on a small scale, focusing primarily on special-purpose vehicles. By early 1999, however, this program should expand to involve the division’s entire fleet of vehicles. Republic is also working hard to improve existing business processes in its vehicle rental companies. For example, the success of National’s Emerald Aisle “pick your own” vehicle approach significantly increased the speed of the rental process. To
accommodate customers, National built more than 200 additional exits over the past year to allow customers to leave rental locations with a minimum of time and hassle. This and other customer service enhancements led to National tying for first place in the 1998 J.D. Power Domestic Rental Car Customer
Slide 16: 16
Satisfaction Survey, and leading in three of the five customer service categories. At Alamo, a focus on improving fleet utilization, greater attention to customer service and a new marketing and advertising campaign are driving significant operation improvements. Republic also entered the local/replacement rental market with the acquisitions of Spirit Rent-ACar and Snappy Car Rental. The company is building a national presence in this market under the banner of CarTemps USA. Today, CarTemps USA is a distant
number two in this market, with $200 million in revenue. In the future, there is room for significant growth through geographic expansion, further development of strong relationships with insurance companies and leveraging our franchised vehicle dealerships as additional sources of local/replacement rental business. We plan to expand our local/replacement rental business by opening new locations across the country and by installing local/replacement rental locations at our franchised dealership locations and at AutoNation USA megastores. This will give Republic additional
Los Angeles, California
Slide 17: outlets for this business, increasing our prospects for growth in this very attractive market. In the international arena, Republic acquired U.K.-based EuroDollar Holdings plc, the second largest rental vehicle company in the U.K., with 110 branches throughout the U.K. and a substantial presence in the corporate rental vehicle market. Republic has subsequently rebranded EuroDollar operations as National Car Rental, a platform for building a pan-European rental business. Being the largest in any market is not enough.
It’s what a company does with its size that determines success. Republic intends to use its market presence and scale in the vehicle rental market to achieve efficiencies and levels of customer satisfaction not otherwise possible.
Slide 18: 18
Republic Waste: Building Critical Mass and Sticking to the Basics
Republic’s solid waste operations are a perfect complement to its auto-related businesses, historically providing strong cash flow and high margins from a predictable, non-cyclical business. Like the vehicle retail business, the waste business is a fragmented market with inherent inefficiencies that can be made more profitable through consolidation and identification of operating and financial synergies. Republic is now the nation’s
fourth largest waste company. But with revenue of more than $1 billion, we have approximately a three percent market share in an industry where only five companies generate more than $200 million in annual revenue. Republic’s strategy is to acquire well-managed, highly profitable businesses, combine them with existing operations to create critical mass in key markets, and allow local managers to run the businesses. Major acquisitions in 1997 included Silver State Disposal in Las Vegas, Nevada and Taormina Industries in southern California. Republic’s recent waste company acquisitions also include “tuck ins” –
Las Vegas, Nevada
Slide 19: smaller waste haulers that add capacity and geographic breadth to our existing markets. In Los Angeles, for example, we folded six different companies into one company at one location, resulting in considerable savings in real estate, administration, and fleet utilization. Republic has divided its waste business into four geographic regions, in an effort to gain further operating efficiencies. This divisional approach has enabled us to reduce truck fleet size and eliminate landfill equipment, delivering dollars to the bottom line. Our sales force – more than 250 strong – reports
through these regions, and is providing strong top-line growth. Republic Waste is sticking to the basic business of collecting, hauling and disposal of solid waste, steering clear of hazardous waste and environmental clean-up. At the same time, we are focused on adding landfill capacity to further strengthen our operations. Republic Waste’s goal is very simple: pick up more garbage in more locations, and do it more efficiently than anyone else. We expect that our “sticking with the basics” strategy will help achieve this goal.
Slide 20: Financial Review and Analysis
Page
Management’s Discussion and Analysis of Financial Condition and Results of Operations. . . . . . . . . . . . . . . . . . . . 21 Consolidated Balance Sheets as of December 31, 1997 and 1996. . . . . . . . . . . . . . 32 Consolidated Statements of Operations for Each of the Three Years Ended December 31, 1997 . . . . . . . . . . . . . . . . 33 Consolidated Statements of Shareholders’ Equity for Each of the Three Years Ended December 31, 1997 . . . . . . . . . . . . . . . . 34 Consolidated Statements of Cash Flows for Each of the Three Years Ended December 31, 1997 . . . . . . . . . . . . . . . . . . . . . . 35 Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . 36 Report of Independent Certified Public Accountants . . . . . . . . . . . . . 55
20
Slide 21: If you are interested in a new or used vehicle, visit one of our locations. Franchised Automotive Dealerships
Alabama
Birmingham, Hoover Toyota Mobile, Lexus of Mobile, Springhill Toyota, Treadwell Ford, Treadwell Honda Pell City, Miller – Sutherlin Automotive (Chevrolet/ Chrysler-Plymouth/JeepEagle/Pontiac) Jacksonville, Orange Park Toyota, Mike Shad Ford, Mike Shad Chrysler-Plymouth/ Jeep-Eagle, Sunrise Nissan of Jacksonville Kissimmee, Courtesy Suzuki Lake Park, Wallace Lincoln-Mercury Longwood, Courtesy Pontiac-GMC, Courtesy Suzuki, Courtesy’s Magic Isuzu, Courtesy Kia, Don Mealey Acura Margate, Mullinax Ford South Miami, Anthony Abraham Chevrolet, Sunshine Ford, Miami Honda, Central Hyundai/Kia, Kendall Toyota, Kendall Kia, Lexus of Kendall, Maroone Dodge Orange Park, Sunrise Nissan of Orange Park Orlando, Courtesy Suzuki/South, Courtesy Acura, Don Mealey Chevrolet, Don Mealey Mitsubishi, World Chevrolet Panama City, Cook-Whitehead Ford Pembroke Pines, Maroone Chevrolet, Maroone Oldsmobile/Isuzu Pinellas Park, Sutherlin Toyota Pompano, Maroone Dodge Pompano Port Richey, Coastal Cadillac Sanford, Don Mealey Cadillac/Oldsmobile, Don Mealey’s Seminole Ford, Royal Jeep-Eagle/ Chrysler-Plymouth St. Petersburg, Carlisle Ford Stuart, Wallace Stuart Lincoln-Mercury, Wallace Stuart Mitsubishi Tallahassee, Tallahassee Chrysler-Plymouth, Tallahassee Mitsubishi,Tallahassee Motors (Ford) Tampa, Anthony Abraham Chevrolet, Lexus of Tampa Bay
Tennessee
Knoxville, West Side Honda Memphis, Courtesy Honda, Covington Pike Honda, Dobbs Bros. Lexus, Dobbs Bros. Mazda/ Buick/Mitsubishi, Dobbs Bros. Pontiac-GMC, Dobbs Ford
Texas
Arlington, Bledsoe Dodge Corpus Christi, Padre Ford, Port City Imports (Honda/Jaguar/Hyundai/Volvo), Port City Pontiac-GMC Dallas, Bankston Lincoln-Mercury/Saab, Bankston Nissan of Dallas, Bledsoe Dodge – North, Bledsoe Dodge Frisco, Bankston Ford of Frisco Ft. Worth, Charlie Hillard Ford, Lexus of Ft. Worth, Charlie Hillard Buick, Charlie Hillard Mazda Houston, Charlie Thomas Ford, Charlie Thomas Chrysler-Plymouth/Jeep-Eagle/Hyundai/Isuzu, Charlie Thomas Acura, Charlie Thomas Chevrolet/Mitsubishi, Charlie Thomas’ Intercontinental BMW, Charlie Thomas’ Intercontinental Mercedes-Benz, Barney Garver Motors (Land Rover/Mazda/ Volkswagen), Mike Hall Chevrolet, Texan Lincoln-Mercury/Isuzu, Champion Ford Humble, Charlie Thomas Mazda/Hyundai Irving, Bankston Nissan of Irving Katy, Texan Ford Lewisville, Bankston Nissan of Lewisville Midland, Jack Sherman Chevrolet, Jack Sherman Buick, Jack Sherman Mazda
Arizona
Phoenix, Bell Dodge, Lou Grubb Chevrolet Scottsdale, Lou Grubb Ford Tempe, Tempe Toyota Tucson, Dobbs Honda
California
Anaheim, Anaheim Mazda/Pontiac/Buick Beverly Hills, Beverly Hills Ford, Infiniti of Beverly Hills Buena Park, Lew Webb’s Toyota of Buena Park Cerritos, Lexus of Cerritos, Toyota of Cerritos, Buick Mart Costa Mesa, Costa Mesa Infiniti, Costa Mesa Honda Cupertino, Anderson Chevrolet, Anderson Chrysler-Plymouth Fremont, Anderson Lexus Garden Grove, Lew Webb’s Ford Irvine, Lew Webb’s Irvine Nissan, Lew Webb’s Irvine Toyota, Irvine Volvo Los Gatos, Anderson Chevrolet Manhattan Beach, Manhattan Ford, Manhattan Toyota, Champion Chevrolet Menlo Park, Anderson Chevrolet, Anderson Cadillac/Oldsmobile Newport Beach, Newport Auto Center (Rolls Royce/Porsche/Audi/Chevrolet) Palo Alto, Anderson Honda/Isuzu Redlands, Redlands Ford Redondo Beach, Land Rover South Bay Santa Monica, Infiniti of Santa Monica Torrance, South Bay Autohaus (MercedesBenz), South Bay Volvo, Torrance Nissan Valencia, Magic Ford,Valencia Lincoln-Mercury
Georgia
Douglasville, Sutherlin Imports (Honda) Lithia Springs, Sutherlin ChryslerPlymouth/Jeep-Eagle, Sutherlin Nissan of Lithia Springs Marietta, Chuck Clancy Ford of Marietta, Sutherlin Nissan of Marietta Tucker, Hub Ford Union City, Gene Evans Ford
Washington
Bellevue, BMW of Bellevue Spokane, Appleway Chevrolet, Appleway Mazda/Subaru/VW/Audi, Lexus of Spokane, Appleway Toyota, Appleway Mitsubishi
AutoNation USA Megastores
Arizona
Chandler, Arizona
Colorado
Aurora, Emich Lincoln-Mercury, Inc. Boulder, Marshall Ford/Kia, Marshall Lincoln-Mercury/Mazda Denver, Chesrown Chevrolet, Chesrown’s SW Dodge, John Elway Ford Englewood, Emich Buick/Pontiac-GMC/Subaru, Emich Chrysler-Plymouth, John Elway Nissan, John Elway Toyota Federal Heights, John Elway Nissan Golden, Emich Oldsmobile, Emich Subaru West, Emich Chrysler-Plymouth/Jeep-Eagle/ Lamborghini Lakewood, Emich Mitsubishi Littleton, Emich Dodge Westminster, John Elway Mazda/ Oldsmobile/Hyundai, John Elway Honda Wheatridge, Chesrown’s Friendly Ford
Illinois
Libertyville, Libertyville Toyota
Michigan
Taylor, Taylor Jeep-Eagle
California
Irvine, California
Nevada
Henderson, Desert Valley Buick/Pontiac-GMC Las Vegas, Desert Buick GMC, Desert Lincoln-Mercury
Florida
Clearwater (St. Petersburg) Coconut Creek Jacksonville Pembroke Pines Perrine Sanford (Orlando) Tampa
New Jersey
Flemington, Flemington Ford/Lincoln-Mercury, Flemington Nissan, Flemington Porsche/Audi/ VW/BMW, Flemington Circle Buick/GMC/ Chevy/Isuzu, Flemington Infiniti, Flemington Pontiac/Subaru, Flemington Mitsubishi, Flemington Chrysler-Plymouth/ Dodge/ Jeep-Eagle/Mazda Lebanon, Hunterdon BMW Princeton, Princeton Nassau Ford/LincolnMercury/Audi, Land Rover Princeton
Georgia
Alpharetta (N. Atlanta) Morrow (S. Atlanta) Stone Mountain
Indiana
Fishers (Indianapolis)
Florida
Belle Glade, Steve Moore Chevrolet/ Cadillac/Buick/Oldsmobile/Pontiac Bradenton, Bill Graham Ford Brooksville, Jim Quinlan Ford/Lincoln-Mercury Casselbury, Courtesy Buick Clearwater, Carlisle Lincoln-Mercury, Lexus of Clearwater, Jim Quinlan Chevrolet, Jim Quinlan Nissan, Carlisle Dodge, Lokey Honda/Isuzu Coconut Creek, Maroone Chrysler-Plymouth/ Jeep-Eagle Delray Beach, Steve Moore Chevrolet Delray, Wallace Ford, Wallace Nissan, Wallace Dodge Ft. Lauderdale, Maroone Chevrolet, Maroone Ford, Star Motors (Mercedes-Benz) Greenacres, Steve Moore Chevrolet Hollywood, Maroone Nissan, Hollywood Honda, Hollywood Kia
Michigan
Canton Sterling Heights (Detroit)
New York
Williamsville, Al Maroone Ford
North Carolina
Charlotte, Superior Nissan
Nevada
Henderson (Las Vegas)
Ohio
Amherst, Ed Mullinax Ford Brunswick, Mullinax Lincoln-Mercury Mayfield, Mullinax Lincoln-Mercury of Mayfield, Mullinax Jeep-Eagle of Mayfield North Canton, Mullinax Ford North Canton Westlake, John Lance Ford Wickliffe, Mullinax Ford East
Ohio
Beavercreek (Dayton) Forest Park (Cincinnati)
Texas
Dallas Grand Prairie Houston, South Houston, North Irving Lewisville San Antonio Stafford
South Carolina
Charleston, West Ashley Toyota, Northside Nissan
List includes transactions that are closed and/or under contract.
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Slide 22: Republic Waste Division Companies
Arizona
Page, PSI Waste Systems Yuma, Suburban Sanitation Svcs
Georgia
Alpharetta, United Waste Service, Inc. Brunswick, Southland Waste Systems of Georgia, Inc. Clarksville, United Waste Service, Inc. College Park, GDS, Inc. Griffin, Pine Ridge Recycling Jesup, Broadhurst Environmental, Inc. Kathleen, Sullivan Environmental Services, Inc. Lawrenceville, United Rubber Recycling Mableton, United Waste Service, Inc. Macon, Mid-State Environmental, Inc., Riggins Mill Road Transfer Station, Southland Waste of Georgia, Inc., Swift Creek Environmental, Inc. McRae, Sullivan Environmental Services, Inc. Milledgeville, Sinclair Disposal Services, Inc. Richmond Hill, Sullivan Environmental Services, Inc. Swainsboro, Sullivan Environmental Services, Inc. Vidalia, Sullivan Environmental Services, Inc. Waycross, Southland Waste Systems of Ware Co., Inc. Winder, Oak Grove Landfill, United Waste Service, Inc.
Fort Wayne, National Serv-All, Inc., United Refuse Greenfield, Fisk Sanitation Service, Inc. Mt. Vernon, Springfield Environmental, Inc. Terre Haute, Jamax Corporation,Terre Haute Recycling, Inc.,Victory Environmental Services, Inc. Wabash, Wabash Valley Landfill Company, LTD
California
Anaheim, Taormina Industries, Inc. Anderson, Anderson Solid Waste, Inc. Imperial, Suburban Sanitation Svcs Long Beach, Consolidated Waste Svcs Ventura, Rubbish Control, Inc.
Kentucky
Ashland, Green Valley Environmental Barlow, Bluegrass Recycling & Transfer Company Beaver Dam, Ohio County Balefill, Inc. Bowling Green, Monarch Environmental, Inc. Burlington, CSI of Northern Kentucky Harrodsburg, Mercer County Transfer Station Hopkinsville, City of Hopkinsville T.S. Lexington, Blue Grass Waste Alliance Mayfield, Commercial Waste Disposal Morganfield, Dozit Company, Inc. Nicholasville, M & M Sanitation Owensboro, Daviess County Solid Waste, CSI of Western Kentucky Paducah, CWI of Kentucky-Paducah Transfer Station Princeton, Collection Services, Inc. Russell Springs, Russell County Transfer Station Stanford, Tri-K Landfill, Inc. Williamstown, Epperson Waste Disposal, Inc.
Florida
Deland, CWI of FLA, Inc. Ft. Lauderdale, All Service Refuse Company, Inc., Envirocycle, Inc., Southland Information Destruction Green Cove Springs, Southland Waste Systems of Clay Hudson, Seaside Sanitation Jacksonville, Southland Environmental Services, Inc. Lakeland, Florida Refuse Service, Inc. Niceville, Gulf Coast Waste Service, Inc. Orlando, CWI of FLA, Inc., Southland Information Destruction Sebring, Reliable Sanitation, Inc. St. Augustine, Nine Mile Road, Inc., Seaboard Waste Systems, Inc. St. Petersburg, Pinellas Environmental, Inc. Tampa, East Bay Sanitation Service, Inc. Vero Beach, Treasure Coast Refuse Corp. W. Palm Beach, Sunburst Sanitation Corp. Winter Garden, CWI of FLA, Inc. Anaheim, California
Idaho
Ketchum, Wood River Rubbish Company, Inc. Twin Falls, PSI Waste Systems
Illinois
Desoto, Southern Illinois Regional Landfill Marion, Marion Transfer Station Mt. Vernon, Mt.Vernon Transfer Station Sparta, Sparta Transfer Station
Maine
Old Orchard Beach, Astro Waste Services
Michigan
Birch Run, Tay Ban Corporation,Tri-County Refuse Service Hopkins, Compactor Rental Systems South Haven, Reliable Disposal, Inc.
Indiana
Anderson, Anderson Refuse Company, Inc. Chesterton, Able Disposal
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Slide 23: Stevensville, Reliable Disposal, Inc. Three Oaks, Forest Lawn Landfill
Mississippi
Corinth, ASCO Sanitation
Missouri
Jackson, CWI of Missouri, Inc Kansas City, Environmental Specialists, Inc. Potosi, CWI of Missouri, Inc, Gilliam Transfer, Inc. Ste. Genevieve, Continental Waste Industries of Missouri, Inc
Nevada
Las Vegas, Silver State Disposal Services, Inc.
Conover, GDS, Inc. Greensboro, Upper Piedmont Environmental, Inc. Hendersonville, GDS, Inc. Hickory, GDS, Inc. Mill Spring, Burgess Refuse Removal Services, Inc. Morganton, GDS, Inc. Mt. Gilead, Moore County Transfer, Uwharrie Environmental, Inc., Richmond County Transfer Salisbury, National Tire Recyclers Shelby, Cleveland Container Service, Inc. Spindale, GDS, Inc., Waste Handling Systems, Inc. Washington, Smithton Sanitation West Jefferson, Collection Service Co., Inc.
Texas
Abiline, Charter Waste Alpine, Wes Tex Waste Services, Inc. Arlington, Arlington Disposal Co. Inc., Grand Prairie Disposal Co., JC Duncan Company, Inc., Pantego Service Co., Inc. Avalon, CSC Disposal and Landfill, Inc. Big Wells, RCLJ Construction, Inc. Campbell, Republic/ Malloy Landfill & Sanitation, Inc. Conroe, Living Earth Technology Co. Dallas, Living Earth Technology Co. Duncanville, Tos-It Service, Inc. Houston, Laughlin Environmental, Inc., Living Earth Technology Co. Linn, C & T Landfill Midland, Wes Tex Waste Services, Inc. Missouri City, Living Earth Technology Co. Odessa, Charter Landfill Pineland, Elliot's Agri-Service, Inc. Plano, Living Earth Technology Co. Richmond, Houston Organics, Living Earth Technology Co. San Angelo, TrashAway Services Co. Stamford, Triple C Disposal Service, Inc.
New Hampshire
Brentwood, Astro Waste Services Laconia, Astro Waste Services
Pennsylvania
West Chester, Area Container Services, Inc. York, York Waste Disposal, Inc.
New Jersey
New Brunswick, Mid-Co South Plainfield, Statewide Environmental Services, Inc Whitehouse Station, Raritan Valley Disposal/Recycling
South Carolina
Batesburg, United Rubber Recycling Burton, ECO Services of South Carolina, Inc. Greenville, Fennell Waste Systems, Inc. Hilton Head, Hilton Head Disposal, Inc. N. Charleston, Fennell Container Company, Inc. Summerville, Suburban Disposal Service, Inc.
New York
Albany, Capital Waste & Recycling Rochester, Upstate Disposal Services
Tennessee
Clarksville, Dependable Disposal Covington, Covington Waste McKenzie, McKenzie Transfer Station Memphis, Safety Lights, Inc. Nashville, AAA Disposal Services, Inc. Paris, Paris Transfer Station Union City, Barker Brothers Waste, Inc., Northwest Tenn Disposal
Virginia
Chesapeake, Area Container Services, Inc. Fairfax, AAA Disposal Services, Inc./Rainbow Industries, Inc.
North Carolina
Angier, Peede Sanitation Asheville, GDS, Inc. Aulander, East Carolina Environmental, Inc. Boone, GDS, Inc. Charlotte, GDS, Inc.
Costa Rica
Los Mangos, WPP/Continental De Costa
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Slide 24: Board of Directors
H. Wayne Huizenga
Chairman of the Board & Co-Chief Executive Officer
J.P. Bryan
Chairman of the Board Torch Energy Advisors, Inc. (a company that manages energyrelated institutional holdings)
George D. Johnson, Jr.
President & Chief Executive Officer Extended Stay America, Inc. (an economy extended-stay lodging chain)
Steven R. Berrard
President & Co-Chief Executive Officer
Rick L. Burdick
Partner - Akin, Gump, Strauss, Hauer & Feld, L.L.P. (a law firm)
John J. Melk
Chairman of the Board, President & Chief Executive Officer H2O Plus, Inc. (a bath and skin product manufacturer and distributor)
Harris W. Hudson
Vice Chairman of the Board & Chairman Republic Solid Waste Division
Michael G. DeGroote
Chairman & Chief Executive Officer Century Business Services, Inc. (a provider of professional business services and products)
Robert J. Brown
President & Chief Executive Officer B&C Associates, Inc. (a management consulting and public relations firm)
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Directors, from left to right: John J. Melk, Rick L. Burdick, Robert J. Brown
