Date: July 25, 2006
Source: Waste Services, Inc.
Waste Services, Inc. (Nasdaq: WSIID) today reported financial results for the three months ended June 30, 2006. The results of operations do not reflect any contribution from our Arizona operations, which have been presented as discontinued. Revenue from continuing operations for the quarter was $101.6 million, an increase of $12.7 million, or 14.3% over the same period last year. The increase in revenue was primarily driven by pricing increases of $6.7 million or 7.5%, of which $2.4 million or 2.7% related to fuel surcharges, increased volumes at our landfill sites of $2.2 million, increased collection and transfer station volumes of $2.0 million and acquisitions, net of divestitures, of $1.9 million. Offsetting these increases were decreases primarily related to the expiration or assignment of certain residential contracts totaling $4.7 million. The favorable effects of foreign exchange rate movements increased revenue by $4.6 million. Net loss from continuing operations for the quarter ended June 30, 2006 was $11.1 million, or $0.32 per share, versus a loss of $14.2 million, or $0.43 per share, for the comparable period last year. EBITDA*, reflecting contribution from our Arizona operations, was $15.8 million for the quarter ended June 30, 2006, compared to $11.4 million for the same period last year. Adjusted EBITDA* (as defined in our credit agreement), reflecting contribution from our Arizona operations, was $20.2 million for the quarter ended June 30, 2006.
For the six months ended June 30, 2006, revenue from continuing operations was $190.1 million, an increase of $18.3 million, or 10.7% over the comparable period last year. Net loss from continuing operations was $28.9 million for the six months ended June 30, 2006, or $0.86 per share, compared to a net loss from continuing operations of $28.5 million, or $0.87 per share for the comparable period last year.
David Sutherland-Yoest, Chairman and Chief Executive Officer, stated "We are pleased to report record adjusted EBITDA of $20.2 million for the second quarter, which exceeded our internal expectations. The recent announcement of our entry into South Florida will allow us to expand further our largest market and increase disposal volumes at our JED Landfill. As a result of the strong performance in the second quarter, recent Florida acquisitions and entry into the Miami-Dade market, we are raising our 2006 adjusted EBITDA guidance to $77.0 million to $80.0 million from our previously provided guidance of $70.0 million to $75.0 million."
Additionally, Mr. Sutherland-Yoest stated, "With the Florida and Arizona transaction now announced, our next focus is refinancing the Kelso preferred, and we expect to make an announcement on our specific plans very shortly. Our options under consideration include a public equity offering, additional debt and Kelso converting a portion of its preferred into common equity. The Kelso preferred was put in place to acquire the JED landfill. Today, JED is our most important asset and it is the key to our organic growth as we continue to penetrate the Central and South Florida market place."
More information: www.wasteservicesinc.com.
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