Waste Services Reports Record First Quarter Results



    
    -- Fourth consecutive quarter of double digit growth in revenue and
    operating profits.

    -- First quarter 2007 revenue and EBITDA from continuing operations grew
    16.6% and 282%, respectively, over that of prior year.

    -- Income (loss) from operations and EBITDA margins improved from a
    negative 4.9% in the prior quarter to 7.8% and from 6.1% to 20.0%,
    respectively.

    -- Completed the acquisition of our Miami assets and sale of our Arizona
    operations.

    -- Internal revenue growth from price and volume of 7.4%.
    

    BURLINGTON, Ontario, April 24 /CNW/ -- Waste Services, Inc. (Nasdaq:  
WSII) today reported financial results for the three months ended March 31,
2007.  The quarter was highlighted by strong top line growth and continued
margin expansion:

    
    -- Revenue from continuing operations was up 16.6% to $103.3 million
       compared to $88.6 million in 2006.
    -- Internal revenue growth was 7.4%, made up of 5.7% price, 1.0% fuel
       surcharge, 0.7% volume
    -- Acquisitions net of divestitures added $8.3 million of revenue or 9.4%,
       while the expiration of low margin municipal contracts net of new
       higher margin municipal contracts accounted for a $0.6 million
       reduction or 0.7%.
    -- Operating income and EBITDA expanded to $8.1 million and $20.7 million
       with margins improving to 7.8% and 20.0%, respectively.
    -- Net loss from continuing operations for the first quarter of 2007 was
       $3.4 million, or $(0.07) per share, versus a loss of $18.0 million, or
       $(0.54) per share, for the first quarter of 2006.
    

    "The company continues to exceed expectations in revenue and margin
growth," stated Chairman and CEO David Sutherland-Yoest. "The quarterly
results have us on track for our 2007 guidance of $500 million in revenue and
EBITDA of $110 million to $115 million and positive free cash flow for the
second half and full year 2007. As we continue to grow and expand in our new
and existing markets, we are confident that we can continue to improve our
margins and look forward to strong results for the remainder of 2007.  Using a
normalized effective tax rate of 38%, we expect to have positive earnings per
share in the second quarter."
    In the first quarter, the company completed the previously announced
transactions to acquire certain Miami assets and dispose of our Arizona
operations.

    
    2007 Outlook
    For fiscal 2007 Waste Services is providing the following guidance:
    -- Revenue of approximately $500 million.
    -- EBITDA in a range of $110 million to $115 million.
    -- Internal revenue growth of about 6%.
    -- Capital spending of $55 million to $60 million.
    -- Positive free cash flow in second half and full year 2007.
    

    This outlook assumes: (i) no additional acquisitions, other than the
completion of transactions previously announced, and (ii) no significant
deterioration in economic conditions in Florida or Canada. The company's
guidance is forward looking and actual results may vary, perhaps materially.

    Reconciliation of Non-GAAP Measures:

    The following table reconciles the differences between net loss, 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,
                                                2007            2006
      Net loss from continuing operations       $(3,407)       $(18,026)
      Income tax provision                        1,737             969
      Preferred stock dividends and
       amortization of issue costs                    -           5,697
      Interest expense                            9,745           7,057
      Depreciation, depletion and amortization,
       continuing operations                     12,593           9,717
      EBITDA from continuing operations (1)     $20,668          $5,414
    

    The following table reconciles the differences between EBITDA and
Adjusted EBITDA, as defined in our credit agreement, for the three months
ended March 31, 2007 and 2006 (in thousands) (unaudited):


    
                                                   Ended March 31,
                                                2007            2006
      EBITDA from continuing operations (1)      $20,668         $5,414
      Adjustments to EBITDA from
       continuing operations
       (as defined per credit agreement):
           Non-cash items (2)                        325          6,578
           Other excludable expenses (3)           1,225          1,651
    Adjusted EBITDA from continuing
     operations (1)                              $22,218        $13,643
    

    (1) EBITDA from continuing operations and EBITDA from continuing
operations as defined in our credit agreement ("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 impairment of deferred
acquisition costs, stock-based compensation expense and gains and losses on
foreign exchange and asset sales.

    (3) Other excludable expenses adjustments include professional fees for
certain litigation, severance and other non-recurring costs.

    We will host an investor and analyst conference call on Wednesday, April
25, 2007 at 8:30 a.m. (EDT) to discuss the results of today's earnings
announcement.  If you wish to participate in this call, please phone 866-831-
6291 (US and Canada) or 617-213-8860 (International) and enter passcode number
20046428.  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 May 2, 2007 by phoning 888-286-8010 (US and Canada) or 617-
801-6888 (International) and entering passcode number 78585762.  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, 2006.  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. 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 located at
http://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,
                                                    2007             2006

    Revenue                                        $103,272          $88,560

    Operating and other expenses:
      Cost of operations (exclusive of
       depreciation, depletion and amortization)     68,077           62,378
      Selling, general and administrative
       expense (exclusive of depreciation,
       depletion and amortization)                   14,950           15,237
      Impairment of deferred acquisition costs            -            5,612
      Depreciation, depletion and amortization       12,593            9,717
      Foreign exchange loss (gain) and other           (423)             (81)

    Income (loss) from operations                     8,075           (4,303)
    Interest expense                                  9,745            7,057
    Cumulative mandatorily redeemable
     preferred stock dividends and
     amortization of issue costs                          -            5,697

    Loss from continuing operations before
     income taxes                                    (1,670)         (17,057)
    Income tax provision                              1,737              969

    Net loss from continuing operations              (3,407)         (18,026)
    Net loss from discontinued operations            (1,204)            (739)
    Gain on sale of discontinued operations             938                -

    Net loss                                        $(3,673)        $(18,765)

    Basic and diluted loss per share:
      Loss per share - continuing operations         $(0.07)          $(0.54)
      Loss per share - discontinued operations        (0.01)           (0.02)
    Basic and diluted loss per share                 $(0.08)          $(0.56)

      Weighted average common shares
       outstanding - basic and diluted               45,972           33,377



                               WASTE SERVICES, INC.
                SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA
                                  (In thousands)
     Balance Sheet Data:                         March 31,      December 31,
                                                   2007              2006
                                               (Unaudited)
       Cash                                         $7,520            $8,532
       Current assets                              $73,119           $71,119
       Total assets                               $891,798          $865,063
       Current liabilities                         $88,842           $86,358
       Debt:
          Senior secured credit facilities:
               Revolver                            $26,000              $-
               Term loan                           244,647           245,260
          Senior subordinated notes                160,000           160,000
          Other notes                                3,123             4,828
                    Total debt                    $433,770          $410,088
       Shareholders' equity                       $337,610          $339,357


    Cash Flow Data:
                                                    Period Ended March 31,
       Cash flows provided by continuing
        operations                                 $11,150           $10,418
       Cash flows used in investing activities
        for continuing operations                 $(35,842)         $(15,531)
       Cash flows from financing activities
        of continuing operations                   $23,687             $(400)
       Capital expenditures from
        continuing operations                       $9,024           $12,347



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

    Total Revenue, March 31, 2006                    $88,560
      Impact on revenue from changes in:
        Price                                          5,905      6.7%
        Volume                                           591      0.7%
        Acquisition / Disposition                      8,345      9.4%
        Gain / Loss of Contracts                        (582)    -0.7%
        Other                                          1,125      1.3%
        Foreign currency impact                         (672)    -0.8%

    Total Revenue, March 31, 2007                   $103,272



                                   COUNTRY DATA
                                  (In thousands)
                               Three Months Ended March 31, 2007

                             US             Canada            Total

    Revenue                $58,471  100.0%  $44,801  100.0%  $103,272  100.0%
    Operating expenses:
      Cost of operations    37,245   63.7%   30,832   68.8%    68,077   65.9%
      Selling, general and
       administrative
       expense               8,647   14.8%    6,303   14.1%    14,950   14.5%
      Depreciation,
       depletion and
       amortization          8,625   14.8%    3,968    8.9%    12,593   12.2%
      Foreign exchange gain
       and other              (208)  -0.4%     (215)  -0.5%      (423)  -0.4%
    Income from operations  $4,162    7.1%   $3,913    8.7%    $8,075    7.8%



                               Three Months Ended March 31, 2006
                             US             Canada            Total

    Revenue                $49,469  100.0%  $39,091  100.0%   $88,560  100.0%
    Operating expenses:
      Cost of operations    35,154   71.1%   27,224   69.7%    62,378   70.4%
      Selling, general and
       administrative
       expense               9,165   18.5%    6,072   15.6%    15,237   17.2%
      Deferred acquisition
       costs                   438    0.9%    5,174   13.2%     5,612    6.3%
      Depreciation,
       depletion and
       amortization          5,653   11.4%    4,064   10.4%     9,717   11.1%
      Foreign exchange
       (gain) loss and
       other                    56    0.1%     (137)  -0.4%       (81)  -0.1%
    Loss from operations     $(997)  -2.0%  $(3,306)  -8.5%   $(4,303)  -4.9%

    




For further information:

For further information: Edwin Johnson, Executive Vice President and
Chief  Financial Officer of Waste Services, Inc., +1-561-237-3400 Web Site:
http://www.wasteservicesinc.com/

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WASTE SERVICES, INC.

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