- Record adjusted EBITDA of $30.5 million for the quarter, totaling
$105.4 million for the year. - Record adjusted EBITDA margin of
25.7% for the quarter and 24.3% for the year as compared to 23.7%
and 22.6% in 2008. - Continued strong revenue growth from price of
4.6% - Successful completion of the integration of Republic and
DisposAll acquisitions in Miami. - Record free cash flow(1) for the
year of $32.1 million. - Record adjusted EPS from continuing
operations was $0.13 for the quarter and $0.43 for the year.
BURLINGTON, Ontario, Feb. 23 /PRNewswire-FirstCall/ -- Waste
Services, Inc. (NASDAQ:WSII) today announced financial results for
the fourth quarter and for the year ended December 31, 2009. Fully
diluted earnings per share were $0.00 for the quarter as compared
to a loss of $0.32 in the fourth quarter of 2008. The reported
results include expenses relating to the pending merger with
IESI-BFC Ltd. (NYSE, TSX: BIN), a charge for the change in the
valuation of warrants caused by the rise in our stock price, costs
relating to tax restructuring activities and certain acquisition
costs expensed in the period. Excluding these charges, fully
diluted earnings per share would have been $0.13. Revenue for the
quarter was $118.8 million compared to $102.4 million for the same
quarter in 2008. The results for the quarter are highlighted by: --
Internal revenue growth generated from price increases was 4.6%. --
Internal revenue growth relating to volume was negative 1.6%. --
Foreign currency translation accounted for $8.8 million in reported
revenue increase and acquisitions added $6.0 million in revenue. --
Adjusted EBITDA was $30.5 million as compared to $24.3 million in
the fourth quarter of the prior year and the company's previous
best quarter result of $29.4 million (third quarter, 2007). For the
full year 2009, the company reported revenue of $434.5 million as
compared to $473.0 million for 2008. Fully diluted earnings per
share for the year were $0.30 as compared to a loss of $0.04 for
2008. Excluding the expenses relating to the merger, costs relating
to tax restructuring activities, acquisition costs and the fourth
quarter change in warrant valuation, fully diluted earnings per
share would have been $0.43 per share. The results for the year
ended December 31, 2009 are highlighted by: -- Internal revenue
growth generated from price increases was 3.9%. -- Internal revenue
growth relating to volume was negative 4.4%. -- Foreign currency
translation caused a decrease of $16.1 million in reported revenue,
partially offset by revenue from acquisitions of $7.1 million. --
Adjusted EBITDA was $105.4 million with a record Adjusted EBITDA
margin of 24.3%. 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 improve margins and profitability. 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." 2010 Outlook Waste Services also announced today the
following stand-alone guidance for 2010, excluding any effects of
the contemplated merger with IESI-BFC Ltd.: -- 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 from continuing operations 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. This
guidance assumes: (i) no significant deterioration in economic
conditions in Florida or Canada, 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. (1) Free
Cash Flow is defined as net cash flows provided by continuing
operations less capital expenditures from continuing operations.
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 For The Year Ended December 31, Ended December 31,
-------------------- ------------------ 2009 2008 2009 2008 ----
---- ---- ---- Income (loss) from continuing operations $(119)
$(14,785) $14,054 $(1,956) Income tax provision (benefit) 2,409
(744) 11,246 6,183 Change in fair value of warrants 2,537 - 434 -
Interest expense 8,549 11,661 30,967 37,432 Landfill depletion
expense 2,874 2,075 9,808 9,858 Depreciation and amortization 9,688
8,447 34,770 35,490 ----- ----- ------ ------ EBITDA from
continuing operations (1) $25,938 $6,654 $101,279 $87,007 =======
====== ======== ======= The following table reconciles the
differences between EBITDA from continuing operations and Adjusted
EBITDA from continuing operations for the three months and year
ended December 31, 2009 and 2008 (in thousands) (unaudited). For
The Three Months For The Year Ended December 31, Ended December 31,
-------------------- ------------------ 2009 2008 2009 2008 ----
---- ---- ---- EBITDA from continuing operations (1) $25,938 $6,654
$101,279 $87,007 Adjustments to EBITDA from continuing operations
(as defined per credit agreement): Loss (gain) on sale of assets
(48) (185) (2,478) (707) Non-cash items (2) 854 10,717 2,755 13,712
Other excludable expenses (3) 3,752 7,092 3,840 7,092 ----- -----
----- ----- Adjusted EBITDA from continuing operations (1) $30,496
$24,278 $105,396 $107,104 ======= ======= ======== ======== (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 expensed deferred
acquisition costs and gains and losses on foreign exchange and
asset sales. (3) Other excludable expense adjustments include
severance and other non-recurring costs resulting primarily from
the pending merger and the restructuring in 2008. We will host an
investor and analyst conference call on Wednesday, February 24,
2010 at 10:00 a.m. (ET) to discuss the results of today's earnings
announcement. If you wish to participate in this call, please phone
866-356-4281 (US and Canada) or 617-597-5395 (International) and
enter passcode number 28197418. To hear a web cast of the call over
the Internet, access the home page of our website at
http://www.wasteservicesinc.com/. A replay of the call will be
available until March 9, 2010 by phoning 888-286-8010 (US and
Canada) or 617-801-6888 (International) and entering passcode
number 65845974. 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. Additional Information
About the Proposed Merger Transaction and Where to Find It In
connection with the proposed merger transaction, IESI-BFC Ltd.
filed a Registration Statement on Form F-4 with the SEC on January
19, 2010, 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 (http://www.sec.gov/). Copies of
the proxy statement/prospectus can also be obtained, when
available, without charge, from IESI-BFC Ltd.'s website
(http://www.iesi-bfc.com/) or from Waste Services, Inc.'s website
(http://www.wasteservicesinc.com/) or by directing a request to
IESI-BFC Ltd., 135 Queens Plate Drive, Suite 300, Toronto, Ontario,
Canada M9W 6V1, Attention: Investor Relations, (416) 401-7729, or
to Waste Services, Inc., Shareholder Relations, 1122 International
Blvd., Suite 601, Burlington, Ontario, Canada L7L 6Z8, (905)
319-1237. Proxy Solicitation 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 May 14, 2009. Information regarding Waste Services, Inc.'s
directors and executive officers is available in its Annual Report
on Form 10-K for the year ended December 31, 2008, which was filed
with the SEC on February 26, 2009, and its 2009 definitive proxy
statement for its most recent annual meeting, which was filed on
the SEC's internet website (http://www.sec.gov/) on April 29, 2009.
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. 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
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 Year Ended
December 31, December 31, ------------ ------------ 2009 2008 2009
2008 ---- ---- ---- ---- Revenue $118,777 $102,393 $434,515
$473,029 Operating and other expenses: Cost of operations(exclusive
of depreciation, depletion and amortization) 73,569 66,459 277,465
309,121 Selling, general and administrative expense (exclusive of
depreciation, depletion and amortization) 19,307 18,531 58,341
66,474 Deferred acquisition costs - 10,267 - 10,267 Depreciation,
depletion and amortization 12,562 10,522 44,578 45,348 Loss (gain)
on sale of property and equipment, foreign exchange and other (37)
482 (2,570) 160 --- --- ------ --- Income (loss) from operations
13,376 (3,868) 56,701 41,659 Interest expense 8,549 11,661 30,967
37,432 Change in fair value of warrants 2,537 - 434 - ----- - --- -
Income (loss) from continuing operations before income taxes 2,290
(15,529) 25,300 4,227 Income tax provision (benefit) 2,409 (744)
11,246 6,183 ----- ---- ------ ----- Income (loss) from continuing
operations (119) (14,785) 14,054 (1,956) Income from discontinued
operations, net of income tax provision of $266 for the year ended
December 31, 2008 and nil for all other periods - - - 409 Gain on
sale of discontinued operations, net of income tax provision of
$2,770 and $7,255 for the three and twelve months ended December
31, 2008 and nil for all other periods - 4,241 - 11,110 - ----- -
------ Net income (loss) $(119) $(10,544) $14,054 $9,563 =====
======== ======= ====== Basic and diluted earnings (loss) per
share: Earnings (loss) per share - continuing operations $- $(0.32)
$0.30 $(0.04) Earnings per share - discontinued operations - 0.09 -
0.25 - ---- - ---- Earnings (loss) per share - basic and diluted $-
$(0.23) $0.30 $0.21 == ====== ===== ===== Weighted average common
shares outstanding: Basic 46,253 46,082 46,218 46,079 Diluted
46,253 46,082 46,325 46,079 WASTE SERVICES, INC. SUPPLEMENTAL
BALANCE SHEET AND CASH FLOW DATA (In thousands) Balance Sheet Data:
December 31, December 31, 2009 2008 ---- ---- Cash $3,699 $7,227
Current assets $84,323 $72,961 Total assets $914,992 $840,927
Current liabilities $114,905 $93,245 Debt: Senior secured credit
facilities: US Revolver $30,000 $34,600 Canadian Revolver 5,709
27,699 US Term loan 35,994 38,125 Canadian Term Loan 113,228
103,505 Senior subordinated notes 208,574 158,854 Other notes 7,947
9,286 ----- ----- Total debt $401,452 $372,069 -------- --------
Shareholders' equity $359,348 $335,018 Cash Flow Data: Year Ended
December 31, ----------------------- 2009 2008 ---- ---- Net cash
flows provided by continuing operations $64,353 $56,051 Net cash
flows used in investing activities for continuing operations
$(74,903) $(3,123) Net cash flows provided by (used in) financing
activities of continuing operations $5,021 $(67,471) Capital
expenditures from continuing operations $32,212 $48,066 WASTE
SERVICES, INC. SUPPLEMENTAL UNAUDITED GROWTH RATES AND COUNTRY DATA
(In thousands) Waste Services, Inc. Revenue Growth For The Three
Months Ended December 31, 2009 (in thousands) Total Revenue,
December 31, 2008 $102,393 Impact on revenue from changes in: Price
4,729 4.6% Fuel Surcharge (1,368) -1.3% Volume (1,598) -1.6%
Acquisition / Disposition 5,974 5.8% Gain / Loss of Contracts (287)
-0.3% Other 130 0.1% Foreign currency impact 8,804 8.7% Total
Revenue, December 31, 2009 $118,777 ======== Waste Services, Inc.
Revenue Growth For The Year Ended December 31, 2009 (in thousands)
Total Revenue, December 31, 2008 $473,029 Impact on revenue from
changes in: Price 18,482 3.9% Fuel Surcharge (16,093) -3.4% Volume
(20,697) -4.4% Acquisition / Disposition 7,142 1.5% Gain / Loss of
Contracts (10,864) -2.3% Other (433) 0.0% Foreign currency impact
(16,051) -3.4% Total Revenue, December 31, 2009 $434,515 ========
COUNTRY DATA (In thousands) Three Months Ended December 31, 2009
-------------------------------------- US Canada Total -- ------
------- Revenue $57,450 100.0% $61,327 100.0% $118,777 100.0%
Operating expenses: Cost of operations 34,141 59.4% 39,428 64.3%
73,569 61.9% Selling, general and administrative expense 10,544
18.4% 8,763 14.3% 19,307 16.3% Depreciation, depletion and
amortization 7,671 13.4% 4,891 8.0% 12,562 10.5% Foreign exchange
(gain) loss and other (687) -1.3% 650 1.0% (37) 0.0% ---- --- ---
Income from continuing operations $5,781 10.1% $7,595 12.4% $13,376
11.3% ====== ====== ======= Three Months Ended December 31, 2008
-------------------------------------- US Canada Total -- ------
------- Revenue. $52,021 100.0% $50,372 100.0% $102,393 100.0%
Operating expenses: Cost of operations 31,977 61.4% 34,482 68.4%
66,459 64.9% Selling, general and administrative expense 5,972
11.5% 5,688 11.3% 11,660 11.4% Restructuring, severance and related
costs 4,673 9.0% 2,198 4.4% 6,871 6.7% Deferred acquisition costs
10,267 19.7% - 0.0% 10,267 10.0% Depreciation, depletion and
amortization 6,242 12.0% 4,280 8.5% 10,522 10.3% Foreign exchange
(gain) loss and other (165) -0.2% 647 1.3% 482 0.5% ---- --- ---
Income (loss) from continuing operations $(6,945) -13.4% $3,077
6.1% $(3,868) -3.8% ======= ====== ======= WASTE SERVICES, INC.
UNAUDITED COUNTRY DATA (In thousands) Year Ended December 31, 2009
------------------------------ US Canada Total -- ------ -------
Revenue. $209,251 100.0% $225,264 100.0% $434,515 100.0% Operating
expenses: Cost of operations 128,489 61.4% 148,976 66.1% 277,465
63.9% Selling, general and administrative expense 29,466 14.1%
28,875 12.8% 58,341 13.4% Depreciation, depletion and amortization
26,710 12.8% 17,868 7.9% 44,578 10.3% Loss (gain) on sale of
property and equipment, foreign exchange and other (2,960) -1.5%
390 0.3% (2,570) -0.6% ------ --- ------ Income from continuing
operations $27,546 13.2% $29,155 12.9% $56,701 13.0% =======
======= ======= Year Ended December 31, 2008
------------------------------ US Canada Total -- ------ -------
Revenue $231,352 100.0% $241,677 100.0% $473,029 100.0% Operating
expenses: Cost of operations 148,474 64.2% 160,647 66.5% 309,121
65.3% Selling, general and administrative expense 30,027 13.0%
29,576 12.2% 59,603 12.6% Restructuring, severance and related
costs 4,673 2.0% 2,198 0.9% 6,871 1.5% Deferred acquisition costs
10,267 4.4% - 0.0% 10,267 2.2% Depreciation, depletion and
amortization 26,145 11.3% 19,203 7.9% 45,348 9.6% Foreign exchange
(gain) loss and other (628) -0.3% 788 0.4% 160 0.0% ---- --- ---
Income from continuing operations $12,394 5.4% $29,265 12.1%
$41,659 8.8% ======= ======= ======= DATASOURCE: Waste Services,
Inc. CONTACT: 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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