Risk Factors
This Annual Report on Form 10-K includes ""forward-looking statements'' within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, certain statements
about our plans, strategies and prospects. Although we believe that our plans, intentions and expectations
reÖected in or suggested by such forward-looking statements are reasonable, we cannot assure you that such
plans, intentions or expectations will be achieved. Important factors that could cause our actual results to
diÅer materially from our forward-looking statements include those set forth in this Risk Factors section. All
forward-looking statements attributable to us or any persons acting on our behalf are expressly qualiÑed in
their entirety by the cautionary statements set forth below. Unless the context requires otherwise, all references
to the ""company,'' ""we,'' ""us'' or ""our'' include Republic Services, Inc. and its subsidiaries.
If any of the following risks, or other risks not presently known to us or that we currently believe to not be
signiÑcant, develop into actual events, then our business, Ñnancial condition, results of operations, cash Öows
or prospects could be materially adversely aÅected.
We operate in a highly competitive industry and may be unable to compete eÅectively.
We operate in a highly competitive business environment. Some of our competitors have signiÑcantly
larger operations and may have signiÑcantly greater Ñnancial resources than we do. In addition, the solid waste
industry is constantly changing as a result of consolidation which may create additional competitive pressures
in our business environment.
We also compete with municipalities that maintain their own waste collection or disposal operations.
These municipalities may have a Ñnancial advantage over us as a result of the availability of tax revenue and
tax-exempt Ñnancing.
We compete for collection accounts primarily on the basis of price and the quality of services. From time
to time our competitors may reduce the price of their services in an eÅort to expand their market share or to
win a competitively bid municipal contract.
In each market in which we own or operate a landÑll, we compete for solid waste volume on the basis of
disposal or ""tipping'' fees, geographical location and quality of operations. Our ability to obtain solid waste
volume for our landÑlls may be limited by the fact that some major collection companies also own or operate
landÑlls to which they send their waste. In markets in which we do not own or operate a landÑll, our collection
operations may operate at a disadvantage to fully integrated competitors.
As a result of these factors, we may have diÇculty competing eÅectively from time to time.
Economic conditions could adversely aÅect our business, operations and internal growth.
In the past, economic slowdowns have negatively impacted the portion of our collection business servicing
the manufacturing sector and the non-residential construction industry. LandÑll volumes attributable to
manufacturing and construction activity were also impacted. A slowdown in the economy in any of the
markets we service could adversely aÅect volumes, pricing and operating margins in our collection, transfer
and disposal operations.
An increase in the price of fuel may adversely aÅect our business.
Our operations are dependent upon fuel, which we generally purchase in the open market on a daily basis.
During 2003 and 2004, we experienced increases in the cost of fuel. A portion of this increase was passed on to
our customers. However, because of the competitive nature of the waste industry, there can be no assurances
that we will be able to pass on current or any future increases in fuel prices to our customers. Due to political
instability in oil-producing countries, fuel prices may continue to increase signiÑcantly in 2005. A signiÑcant
increase in fuel costs could adversely aÅect our business.
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