Waste Services Announces Record First Quarter Results


    
    - Record adjusted EBITDA of $32.2 million for the quarter.

    - Record adjusted EBITDA margin of 27.0% for the quarter as compared to
    21.4% in 2009.

    - Continued strong revenue growth from price of 5.0%

    - Record free cash flow(1) for the quarter of $14.8 million.

    - Record adjusted EPS of $0.14 for the quarter.




    
</pre>
<p><span class="xn-location">BURLINGTON</span>, Ontario, <span class="xn-chron">April 27</span> /CNW/ -- Waste Services, Inc. (Nasdaq:   WSII) today announced financial results for the first quarter ended <span class="xn-chron">March 31, 2010</span>.  Fully diluted earnings per share before merger charges and other unusual items were <span class="xn-money">$0.14</span> for the quarter as compared to <span class="xn-money">$0.03</span> in the first quarter of 2009.  The reported results include expenses relating to the pending merger with IESI-BFC Ltd. (NYSE, TSX: BIN) and a gain in the valuation of warrants.  Including these items, fully diluted earnings per share were <span class="xn-money">$0.12</span>.</p>
<p/>
<p>Revenue for the quarter was up 24.6% to <span class="xn-money">$119.4 million</span> compared to <span class="xn-money">$95.8 million</span> for the same quarter in 2009.  The results for the quarter are highlighted by:</p>
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    --  Internal revenue growth generated from price increases was 5.0%.
    --  Internal revenue growth relating to volume was 2.4%.
    --  Positive organic growth in both Florida and Canada.
    --  Foreign currency translation accounted for $10.0 million in reported
        revenue increase.
    --  Acquisitions added $6.1 million in revenue.
    --  Adjusted EBITDA was $32.2 million as compared to $20.5 million in the
        first quarter of the prior year and the company's previous best
quarter
        result of $30.5 million (fourth quarter, 2009).

    
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<p>David Sutherland-Yoest, Waste Services President and Chief Executive Officer, stated, "We are pleased to again be reporting record financial results for a quarter as the company continues to sustain solid organic growth with expanding margins and rising profitability.  By every measure of valuation in our industry, our first quarter results are the best in our Company's history.  As our business continues to improve on a stand-alone basis, the pending merger with IESI-BFC Ltd. has been well received by the market and brought substantial benefits to our shareholders, both in share price and trading liquidity.  We look forward to the completion of the deal, working to realize the anticipated synergies between the two companies and an outstanding 2010 for the combined shareholder group."</p>
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    2010 Outlook

    
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<p>Waste Services reiterated stand-alone guidance for 2010, excluding any effects of the contemplated merger with IESI-BFC Ltd.:</p>
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    --  Revenue in the range of $480 million to $500 million.
    --  Organic revenue growth of 4% to 5%, primarily from price.
    --  Adjusted EBITDA in the range of $120 million to $125 million.
    --  Adjusted EBITDA margins of 25 to 27 percent.
    --  EPS in the range of $0.50 to $0.55 per share.
    --  Capital spending in the range of $30 million to $35 million.
    --  Free cash flow(1) of $50 to $55 million.

    
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<p>This guidance assumes: (i) no significant deterioration in economic conditions in Florida or <span class="xn-location">Canada</span>, and (ii) no significant change in exchange rates. Guidance will be adjusted upon announcement of any unusual or non-recurring items as the year progresses.</p>
<p/>
<p>(1) Free Cash Flow is defined as net cash flows provided by operations less capital expenditures.</p>
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    Reconciliation of Non-GAAP Measures:

    
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<p>The following table reconciles the differences between income from operations, as determined under US GAAP, and EBITDA, a non-GAAP financial measure (in thousands) (unaudited):</p>
<p/>
<p> </p>
<p> </p>
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                                  For The Three Months
                                     Ended March 31,
                                     ---------------
                                    2010           2009
                                    ----           ----
    Income from operations        $5,583         $4,010
    Income tax provision           3,451          2,588
    Change in fair value of
     warrants                       (177)        (1,771)
    Interest expense               8,422          7,498
    Landfill depletion
     expense                       2,505          2,076
    Depreciation and
     amortization                  9,644          8,284
                                   -----          -----
    EBITDA from operations
     (1)                         $29,428        $22,685
                                 =======        =======


    
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<p>The following table reconciles the differences between EBITDA and Adjusted EBITDA for the three months ended <span class="xn-chron">March 31, 2010</span> and 2009 (in thousands) (unaudited).</p>
<p/>
<p> </p>
<p> </p>
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                                      For The Three Months
                                         Ended March 31,
                                         ---------------
                                        2010           2009
                                        ----           ----
    EBITDA from operations (1)       $29,428        $22,685
    Adjustments to EBITDA from
     operations
      (as defined per credit
       agreement):
        Loss (gain) on sale of
         assets                           12         (3,520)
        Non-cash items (2)             1,464          1,378
        Other excludable expenses
         (3)                           1,293              -
                                       -----            ---
    Adjusted EBITDA from
     operations (1)                  $32,197        $20,543
                                     =======        =======
    
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<p> </p>
<p> </p>
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    (1)  EBITDA and Adjusted EBITDA ("Adjusted EBITDA") are non-GAAP
    measures used by management to measure performance. We also believe
    that EBITDA and Adjusted EBITDA 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, among other things, as an internal performance measure.
     Our lenders also use Adjusted EBITDA to measure our ability to
     service and/or incur additional indebtedness under our credit
    facilities.  However, EBITDA and Adjusted EBITDA 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 and Adjusted EBITDA 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 and asset sales.
    (3) Other excludable expense adjustments include non-recurring costs
    resulting primarily from the pending merger with IESI-BFC Ltd.



    
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<p>We will host an investor and analyst conference call on <span class="xn-chron">Wednesday, April 28, 2010</span> at <span class="xn-chron">10:00 a.m. (ET</span>) to discuss the results of today's earnings announcement. If you wish to participate in this call, please phone 866-713-8562 (US and <span class="xn-location">Canada</span>) or 617-597-5310 (International) and enter passcode number 70951670.  To hear a web cast of the call over the Internet, access the home page of our website at <a href="http://www.wasteservicesinc.com">www.wasteservicesinc.com</a>.  A replay of the call will be available until <span class="xn-chron">May 11, 2010</span> by phoning 888-286-8010 (US and <span class="xn-location">Canada</span>) or 617-801-6888 (International) and entering passcode number 46866469. The web cast will also be available on our website.</p>
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    Safe Harbor for Forward-Looking Statements

    
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<p>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 <span class="xn-chron">December 31, 2009</span>.  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.</p>
<p/>
<p>Additional Information About the Proposed Merger Transaction and Where to Find It</p>
<p/>
<p>In connection with the proposed merger transaction, IESI-BFC Ltd. filed an amended Registration Statement on Form F-4/A with the SEC on <span class="xn-chron">April 19, 2010</span>, that included a proxy statement of Waste Services, Inc. and that also included a prospectus of IESI-BFC Ltd.  We will mail the proxy statement/prospectus to our stockholders. Waste Services, Inc. and IESI-BFC Ltd. urge investors and security holders to read the proxy statement/prospectus, including any amendments thereto and any other information filed with the SEC, regarding the proposed transaction when such filings become available because they will contain important information.  You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC's website (<a href="http://www.sec.gov">www.sec.gov</a>).  Copies of the proxy statement/prospectus can also be obtained, when available, without charge, from IESI-BFC Ltd.'s website (<a href="http://www.iesi-bfc.com">www.iesi-bfc.com</a>) or from Waste Services, Inc.'s website (<a href="http://www.wasteservicesinc.com">www.wasteservicesinc.com</a>) or by directing a request to IESI-BFC Ltd., 135 Queens Plate Drive, Suite 300, <span class="xn-location">Toronto</span>, Ontario, <span class="xn-location">Canada</span> M9W 6V1, Attention: Investor Relations, (416) 401-7729, or to Waste Services, Inc., Shareholder Relations, 1122 International Blvd., Suite 601, <span class="xn-location">Burlington</span>, Ontario, <span class="xn-location">Canada</span> L7L 6Z8, (905) 319-1237.</p>
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    Proxy Solicitation

    
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<p>IESI-BFC Ltd., Waste Services, Inc., their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction.  Information regarding IESI-BFC Ltd.'s directors and executive officers is available in its Registration Statement on Form F-10, which was filed with the SEC on <span class="xn-chron">May 14, 2009</span>.  Information regarding Waste Services, Inc.'s directors and executive officers is available in its Annual Report on Form 10-K for the year ended <span class="xn-chron">December 31, 2009</span>, which was filed with the SEC on <span class="xn-chron">March 2, 2010</span>.  Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.  You may obtain free copies of these documents from Waste Services, Inc. and IESI-BFC Ltd. using the contact information above.</p>
<p/>
<p>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.</p>
<p/>
<p>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 <span class="xn-location">United States</span> absent a registration or applicable exemption from registration requirements under applicable state and federal securities laws.</p>
<p/>
<p>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 <span class="xn-location">United States</span> and <span class="xn-location">Canada</span>.  The company's website is <a href="http://www.wasteservicesinc.com">www.wasteservicesinc.com</a>.  Information on the company's website does not form part of this press release.</p>
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<p> </p>
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                             WASTE SERVICES, INC.
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)
    
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<p> </p>
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                                                         Three Months Ended
                                                             March 31,
                                                             ---------
                                                          2010           2009
                                                          ----           ----
    
</pre>
<p> </p>
<p>Revenue                                           <span class="xn-money">$119,393</span>        <span class="xn-money">$95,792</span></p>
<p> </p>
<pre>
    
    Operating and other expenses:
      Cost of operations (exclusive of depreciation,
        depletion and amortization)                     72,740         63,208
      Selling, general and administrative expense
       (exclusive of
        depreciation, depletion and amortization)       17,258         13,209
      Depreciation, depletion and amortization          12,149         10,360
      Gain on sale of property and equipment, foreign
       exchange and other                                  (33)        (3,310)
                                                           ---         ------
    
</pre>
<p> </p>
<p>Income from operations                              17,279         12,325</p>
<p> </p>
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    Interest expense                                     8,422          7,498
    Change in fair value of warrants                      (177)        (1,771)
                                                          ----         ------
    
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<p> </p>
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    Income from operations before income taxes           9,034          6,598
    Income tax provision                                 3,451          2,588
                                                         -----          -----
    
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<p> </p>
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    Net income                                          $5,583         $4,010
                                                        ======         ======
    
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<p> </p>
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    Earnings per share:
      Basic                                              $0.12          $0.09
      Diluted                                             0.12           0.09
    
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<p> </p>
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    Weighted average common shares outstanding:
      Basic                                             46,346         46,110
      Diluted                                           46,991         46,136



    
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<p> </p>
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                         WASTE SERVICES, INC.
        SUPPLEMENTAL UNAUDITED BALANCE SHEET AND CASH FLOW DATA
                            (In thousands)
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Balance Sheet Data:                     March 31,       December 31,
                                                  2010              2009
                                                  ----              ----
    
</pre>
<p> </p>
<pre>
    
      Cash                                      $5,793            $3,699
      Current assets                           $79,362           $84,323
      Total assets                            $918,317          $914,992
      Current liabilities                     $108,534          $114,905
      Debt:
        Senior secured credit
         facilities:
            US Revolver                        $25,000           $30,000
            Canadian Revolver                    8,860             5,709
            US Term loan                        35,084            35,994
            Canadian Term Loan                 114,166           113,228
        Senior subordinated notes              208,627           208,574
        Other notes                              7,597             7,947
                                                 -----             -----
                  Total debt                  $399,334          $401,452
                                              --------          --------
      Shareholders' equity                    $370,363          $359,348
    
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<p> </p>
<p> </p>
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    Cash Flow Data:
                                              Year Ended March 31,
                                              --------------------
                                                  2010              2009
                                                  ----              ----
    
</pre>
<p> </p>
<pre>
    
      Net cash provided by operating
       activities                              $21,214           $16,905
      Net cash used in investing
       activities                             $(13,173)          $(1,007)
      Net cash used in financing
       activities                              $(6,070)         $(11,818)
      Capital expenditures                      $6,445            $6,944



    
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<p> </p>
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                        WASTE SERVICES, INC.
        SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
                           (In thousands)
    
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<p> </p>
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                        Waste Services, Inc.
                           Revenue Growth
              For The Three Months Ended March 31, 2010
                           (in thousands)
    
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<p> </p>
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    Total Revenue, March 31, 2009                $95,792
      Impact on revenue from changes in:
        Price                                      4,836       5.0%
        Fuel Surcharge                               844       0.9%
        Volume                                     2,344       2.4%
        Acquisition / Disposition                  6,069       6.3%
        Gain / Loss of Contracts                    (376)     -0.4%
        Other                                       (113)     -0.1%
        Foreign currency impact                    9,997      10.5%
    
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<p> </p>
<p> </p>
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    Total Revenue, March 31, 2010               $119,393
                                                ========



    
</pre>
<p> </p>
<p> </p>
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                                    COUNTRY DATA
                                   (In thousands)
    
</pre>
<p> </p>
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                                     Three Months Ended March 31, 2010
                                     ---------------------------------
                        US                  Canada                 Total
                        ---                 ------                 -----
    
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<p> </p>
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    Revenue            $58,567   100.0%   $60,826    100.0%   $119,393  100.0%
     Operating
     expenses:
       Cost
        of
        operations      34,952    59.7%    37,788     62.1%     72,740   60.9%
        Selling,
        general
        and
        administrative
        expense          9,083    15.5%     8,175     13.4%     17,258   14.5%
        Depreciation,
        depletion
        and
        amortization     6,510    11.1%     5,639      9.3%     12,149   10.2%
        Foreign
        exchange
        (gain)
        loss
        and
        other               25     0.0%       (58)    -0.1%        (33)  -0.1%
                           ---                ---                  ---
    Income
     from
     operations         $7,997    13.7%    $9,282     15.3%    $17,279   14.5%
                        ======             ======              =======
    
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<p> </p>
<p> </p>
<p> </p>
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                                  Three Months Ended March 31, 2009
                                 ---------------------------------
                        US                 Canada                 Total
                        ---                ------                 -----
    
</pre>
<p> </p>
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    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
     operations         $8,932    17.8%    $3,393      7.4%    $12,325   12.9%
                        ======             ======              =======



    

For further information: For further information: Edwin D. Johnson, Executive Vice President and Chief Financial Officer of Waste Services, Inc., +1-905-319-1237 Web Site: http://www.wasteservicesinc.com

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