Waste Services Announces Record Fourth Quarter Results And 2009 Fiscal Year Results

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.