Waste Services Announces First Quarter 2009 Results and Provides Earnings Per Share Guidance



    
    - Strong core price growth of 3.8%.

    - Adjusted EBITDA of $20.5 million for the quarter.

    - Adjusted EBITDA margin of 21.4% for the quarter as compared to 21.1% in
2008.

    
    - Adjusted earnings per share(1) from continuing operations increased to
$0.031 for the quarter ended March 31, 2009 as compared to $0.027 in 2008.
    

    - Total debt reduced by $15.8 million during the quarter.

    
    - Provides adjusted earnings per share(1) guidance of $0.38 to $0.40 for
2009, based on current interest and exchange rate levels.
    

    
    BURLINGTON, Ontario, April 21 /PRNewswire-FirstCall/ -- Waste Services,
Inc. (Nasdaq:   WSII) today announced financial results for the first quarter
ended March 31, 2009.  On an adjusted basis, fully diluted earnings per share
were $0.031 for the quarter as compared to $0.027 in the first quarter of
2008.  Revenue for the quarter was $95.8 million compared to $116.6 million
for the same quarter in 2008.  Reported net income from continuing operations
for the quarter was $4.0 million as compared to income in the comparative
period of $5.3 million.  The results for the quarter are highlighted by:
    

    --  Internal revenue growth from price was $3.2 million or 2.8%, and the
        decline in Fuel Surcharge was $3.6 million or 3.0%.
    --  Excluding recycled commodity sales, net of commodity surcharges, core
        internal revenue growth from price was 3.8%.
    --  Internal revenue relating to volume declined by $5.4 million or 4.7%.

    --  Foreign currency translation accounted for $10.9 million or 9.3% of
the
        revenue reduction and the net expiration of municipal contracts
        accounted for a decline of $4.8 million or 4.1%.

    
    (1) Adjusted EPS is defined as earnings per share as adjusted for gains
on the sale of non-operating assets and certain non-cash adjustments,
primarily cumulative adjustments to stock-based compensation, using the
average statutory income tax rate estimated at 36% (see table on page 3).
    

    
    David Sutherland-Yoest, Waste Services President and Chief Executive
Officer, stated, "We are pleased to report a strong start to the new year in
our seasonally low first quarter and that we have had continued success as an
aggressive price leader in our markets.  The key to price leverage is
providing strong customer service and I commend our district management for
staying close to our customers and minimizing service issues.  Volumes are
down for the industry as a whole and we have experienced reduced special waste
volumes at the landfills, but the cost savings initiatives put in place over
the past three quarters helped us offset these declines to produce bottom line
results slightly ahead of last year.  Cash flow was strong in the quarter and
we continue to pay down debt.  As a result, we are in the best financial
position in our history and look forward to taking advantage of our unique
collection of assets."
    

    Reconciliation of Non-GAAP Measures:

    
    The following table reconciles the differences between income from
continuing operations, as determined under US GAAP, and EBITDA from continuing
operations, a non-GAAP financial measure (in thousands) (unaudited):
    

    


    
                                                For The Three Months
                                                   Ended March 31,
                                                    2009     2008
      Income from continuing operations           $4,010   $5,330
      Income tax provision (benefit)               2,588   (3,397)
      Change in fair value of warrants            (1,771)       -
      Interest expense                             7,498   10,238
      Depreciation, depletion and amortization    10,360   11,702
      EBITDA from continuing operations (1)      $22,685  $23,873

    
    The following table reconciles the differences between EBITDA from
continuing operations and Adjusted EBITDA from continuing operations for the
three months ended March 31, 2009 and 2008 (in thousands) (unaudited).
    

    


    
                                                   For The Three Months
                                                      Ended March 31,
                                                       2009     2008
    EBITDA from continuing operations (1)           $22,685  $23,873
    Adjustments to EBITDA from continuing
     operations (as defined per credit
     agreement):
      Gain on sale of assets                         (3,520)    (245)
      Non-cash items (2)                              1,378      963
    Adjusted EBITDA from continuing operations (1)  $20,543  $24,591

    
    (1) EBITDA from continuing operations and Adjusted EBITDA from continuing
operations ("Adjusted EBITDA from continuing operations") are non-GAAP
measures used by management to measure performance. We also believe that
EBITDA from continuing operations and Adjusted EBITDA from continuing
operations may be used by certain investors to analyze and compare our
operating performance between accounting periods and against the operating
results of other companies that have different financing and capital
structures or tax rates and to measure our ability to service our debt.  In
addition, management uses EBITDA from continuing operations, among other
things, as an internal performance measure.  Our lenders also use Adjusted
EBITDA from continuing operations to measure our ability to service and/or
incur additional indebtedness under our credit facilities.  However, EBITDA
from continuing operations and Adjusted EBITDA from continuing operations
should not be considered in isolation or as a substitute for net income, cash
flows or other financial statement data prepared in accordance with US GAAP or
as a measure of our performance, profitability or liquidity.  EBITDA from
continuing operations and Adjusted EBITDA from continuing operations are not
calculated under US GAAP and therefore are not necessarily comparable to
similarly titled measures of other companies.
    

    
    (2) Non-cash adjustments primarily include stock-based compensation
expense and gains and losses on foreign exchange.
    

    
    The following table reconciles the differences between income (loss) from
continuing operations before income taxes, as determined under US GAAP, and
adjusted income from continuing operations for the three months ended March
31, 2009 and 2008. This information is then used as the numerator to calculate
normalized earnings per share. Adjusted income from continuing operations and
normalized earnings per share are non-US GAAP measures used by management to
measure performance. We believe that adjusted income from continuing
operations and normalized earnings per share may be used by certain investors
to analyze and compare our operating performance between periods and against
the operating results of other companies whose corporate structure and tax
rates differ from ours. Adjusted income from continuing operations and
normalized earnings per share are not calculated under US GAAP and therefore
are not necessarily comparable to similarly titled measures of other companies
(in thousands) (unaudited):
    

    


    
                                                            2009    2008
    

    
    Income from continuing operations before income
     taxes                                                $6,598  $1,933
    

    
    Adjustments:
      Gain from sale of non-operating assets              (3,262)      -
      Change in fair value of warrants                    (1,771)      -
      Other non-cash charges                                 668       -
    Adjusted income from continuing operations before
     income taxes                                          2,233   1,933
    

    
    Income tax provision (benefit) at estimated average
     statutory rate of 36%                                   804     696
    

    
    Adjusted income from continuing operations            $1,429  $1,237
    

    
    Basic and diluted normalized earnings per share:
      Basic and diluted normalized earnings per share -
       continuing operations                              $0.031  $0.027
    

    
        Weighted average common shares outstanding
          Basic                                           46,254  46,075
          Diluted                                         46,280  46,093

    
    We will host an investor and analyst conference call on Wednesday, April
22, 2009 at 9:30 a.m. (ET) to discuss the results of today's earnings
announcement.  If you wish to participate in this call, please phone
866-383-8003 (US and Canada) or 617-597-5330 (International) and enter
passcode number 12625802.  To hear a web cast of the call over the Internet,
access the home page of our website at www.wasteservicesinc.com.  A post-view
of the call will be available until April 30, 2009 by phoning 888-286-8010 (US
and Canada) or 617-801-6888 (International) and entering passcode number
13280858.  The web cast will also be available on our website.
    

    Safe Harbor for Forward-Looking Statements
    
    Certain matters discussed in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934.  These statements
describe the company's future plans, objectives and goals.  These
forward-looking statements involve risks and uncertainties which could cause
actual results to differ materially from the plans, objectives and goals set
forth in this press release.  Factors which could materially affect such
forward-looking statements can be found in the company's periodic reports
filed with the Securities and Exchange Commission, including risk factors
detailed in the company's Form 10-K for the year ended December 31, 2008. 
Shareholders, potential investors and other readers are urged to consider
these factors carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such forward-looking statements.
    

    
    The forward-looking statements made in this press release are only made
as of the date hereof and Waste Services undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
circumstances.
    

    
    This release does not constitute an offer to sell or the solicitation of
any offer to buy any securities.  The company's securities may not be offered
or sold in the United States absent a registration or applicable exemption
from registration requirements under applicable state and federal securities
laws.
    

    
    Waste Services, Inc., a Delaware corporation, is a multi-regional,
integrated solid waste services company that provides collection, transfer,
disposal and recycling services in the United States and Canada.  The
company's website is www.wasteservicesinc.com.  Information on the company's
website does not form part of this press release.
    

    


    
                                WASTE SERVICES, INC.
               UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In thousands, except per share data)
    

    
                                                      Three Months Ended
                                                           March 31,
                                                         2009      2008
    

    
    Revenue                                           $95,792  $116,609
    

    
    Operating and other expenses:
      Cost of operations (exclusive of depreciation,
        depletion and amortization)                    63,208    76,544
      Selling, general and administrative expense
       (exclusive of depreciation, depletion and
       amortization)                                   13,209    16,365
      Depreciation, depletion and amortization         10,360    11,702
      Gain on sale of property and equipment, foreign
       exchange and other                              (3,310)     (173)
    

    
    Income from operations                             12,325    12,171
    

    
    Interest expense                                    7,498    10,238
    Change in fair value of warrants                   (1,771)        -
    

    
    Income from continuing operations before
     income taxes                                       6,598     1,933
    Income tax provision (benefit)                      2,588    (3,397)
    

    
    Income from continuing operations                   4,010     5,330
    Income from discontinued operations, net
     of income tax provision of $265 for the three
     months ended March 31, 2008                            -       409
    Gain on sale of discontinued operations, net
     of income tax provision of $4,549 for the three
     months ended March 31, 2008                            -     6,969
    

    
    Net income                                         $4,010   $12,708
    

    
    Basic and diluted earnings per share:
      Earnings per share - continuing operations        $0.09     $0.12
      Earnings per share - discontinued operations          -      0.16
    Earnings per share - basic and diluted              $0.09     $0.28
    

    
        Weighted average common shares outstanding:
          Basic                                        46,254    46,075
          Diluted                                      46,280    46,093
    



    
                             WASTE SERVICES, INC.
          SUPPLEMENTAL UNAUDITED BALANCE SHEET AND CASH FLOW DATA
                                (In thousands)
    

    
    Balance Sheet Data:                      March 31,  December 31,
                                                  2009          2008
    

    
      Cash                                     $11,569        $7,227
      Current assets                           $70,975       $72,961
      Total assets                            $825,202      $840,927
      Current liabilities                      $89,346       $93,245
      Debt:
        Senior secured credit facilities:
            US Revolver                        $23,499       $34,600
            Canadian Revolver                   28,329        27,699
            US Term loan                        37,719        38,125
            Canadian Term Loan                  98,867       103,505
        Senior subordinated notes              158,907       158,854
        Other notes                              8,961         9,286
            Total debt                        $356,282      $372,069
      Shareholders' equity                    $336,419      $335,018
    


    
    Cash Flow Data:
                                                 Three Months Ended
                                                      March 31,
                                                  2009          2008
    

    
      Net cash flows provided by continuing
       operations                              $16,905        $8,334
      Net cash flows provided by (used in)
       investing activities for continuing
       operations                              $(1,007)      $45,209
      Net cash flows used in financing
       activities of continuing operations    $(11,818)     $(42,859)
      Capital expenditures from continuing
       operations                               $6,944       $10,407
    



    
                                WASTE SERVICES, INC.
                   SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
                                   (In thousands)
    

    
                              Waste Services, Inc.
                                 Revenue Growth
                           For The Three Months Ended
                                 March 31, 2009
                                 (in thousands)
    

    
    Total Revenue, March 31, 2008             $116,609
      Impact on revenue from changes in:
        Price                                    3,248       2.8%
        Fuel Surcharge                          (3,550)     -3.0%
        Volume                                  (5,443)     -4.7%
        Acquisition / Disposition                  481       0.4%
        Gain / Loss of Contracts                (4,792)     -4.1%
        Other                                      113       0.1%
        Foreign currency impact                (10,874)     -9.3%
    Total Revenue, March 31, 2009              $95,792
    


    
                                    COUNTRY DATA
                                   (In thousands)
    

    
                                    Three Months Ended March 31, 2009
                                US            Canada          Total
    

    
    Revenue                  $50,243  100.0% $45,549 100.0%  $95,792  100.0%
    Operating expenses:
      Cost of operations      31,975   63.6%  31,233  68.6%   63,208   66.0%
      Selling, general
       and administrative
       expense                 6,446   12.8%   6,763  14.8%   13,209   13.8%
      Depreciation,
       depletion and
       amortization            6,364   12.7%   3,996   8.8%   10,360   10.8%
      Foreign exchange
       (gain) loss and
       other                  (3,474)  -6.9%     164   0.4%   (3,310)  -3.5%
    Income from continuing
     Operations               $8,932   17.8%  $3,393   7.4%  $12,325   12.9%
    


    
                                    Three Months Ended March 31, 2008
                                US            Canada          Total
    

    
    Revenue                  $60,090  100.0% $56,519 100.0% $116,609  100.0%
    Operating expenses:
      Cost of operations      38,916   64.8%  37,628  66.6%   76,544   65.6%
      Selling, general
       and administrative
       expense                 8,100   13.5%   8,265  14.6%   16,365   14.0%
      Depreciation,
       depletion and
       amortization            6,759   11.2%   4,943   8.7%   11,702   10.1%
      Foreign exchange
       gain and other           (200)  -0.3%      27   0.1%     (173)  -0.1%
    Income from continuing
     operations               $6,515   10.8%  $5,656  10.0%  $12,171   10.4%


    




For further information:

For further information: Edwin D. Johnson, Executive Vice President and
Chief Financial Officer, Waste Services, Inc., +1-905-319-1237; or J. Todd
Atenham, Investor Relations, +1-888-917-5105 Web Site:
http://www.wasteservicesinc.com

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