Waste Industries Profits Lower on Fees to Go Private

Date: March 4, 2008

Source: Waste Industries USA, Inc.

WASTE INDUSTRIES USA, INC. Reports Fourth Quarter and Full Year 2007 Financial Results

Waste Industries USA, Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste services company, today reported preliminary financial results for the fourth quarter and full year ended December 31, 2007.

For the quarter ended December 31, 2007, revenue increased 4.4% to $84.7 million, compared to $81.1 million for the quarter ended December 31, 2006. The quarterly operating results were negatively impacted by costs related to the Company's proposed going private transaction. Operating income for the fourth quarter 2007 decreased 16.1% to $10.0 million, compared to $12.0 million for the same period in 2006. Income from continuing operations for the fourth quarter 2007 was $5.1 million, or $0.36 per diluted share, a 2.5% decrease from income from continuing operations of $5.2 million, or $0.37 per diluted share, for the fourth quarter of 2006. Net income was $5.1 million, or $0.36 per diluted share, for the quarter ended December 31, 2007, compared to $5.4 million, or $0.38 per diluted share, for the same period in 2006.

The current period results were affected by the following:

- Professional fees were $1.7 million higher related to the proposed going private transaction ($1.2 million, net of income taxes, or $0.08 per diluted share); and

- A more favorable income tax rate of 33.2% for the current quarter due to FASB Interpretation No. 48 ("FIN 48") and deferred tax adjustments compared to 47.1% for the prior year period, which was impacted by deferred tax adjustments.

For the year ended December 31, 2007, revenue increased 4.0% to $340.7 million, compared to $327.5 million for the same period in 2006. The 2007 operating results were negatively impacted by costs related to the Company's proposed going private transaction. Operating income increased 17.2% to $47.4 million, compared to $40.4 million for the year ended December 31, 2006. Income from continuing operations was $23.5 million, or $1.66 per diluted share, a 38.5% increase from income from continuing operations of $17.0 million, or $1.21 per diluted share, for the year ended December 31, 2006. Income from discontinued operations (net of income taxes) was $0.2 million, or $0.01 per share, for the year ended December 31, 2007, compared to $2.3 million, or $0.16 per diluted share, for the same period in 2006, primarily due to a gain on sale of the Company's Jacksonville, Florida landfill operation in April 2006. Net income was $23.7 million, or $1.67 per diluted share, for the year ended December 31, 2007, compared to $19.3 million, or $1.37 per diluted share, for the same period in 2006.

The total year results were affected by the following:

- Professional fees were $1.9 million higher related to the proposed going private transaction ($1.2 million, net of income taxes, or $0.08 per diluted share); and

- A more favorable income tax rate of 37.8% for 2007 due to FIN 48 and deferred tax adjustments compared to 45.9% for 2006 which was impacted by deferred tax adjustments.

Jim W. Perry, President and CEO of the Company, stated, "Our performance for the fourth quarter and 2007 was in line with our expectations. Going into 2008, we believe our operating fundamentals are well established which should help us deal with the current sluggish economy and our strong balance sheet should enable us to take advantage of any strategic growth opportunities."

The Company will host a conference call to discuss its fourth quarter results on March 5, 2008 at 2:00 PM (Eastern Time). The call number is (877) 723-9519 and the confirmation number is 9954580. The conference call will also be broadcast live over the Internet at www.wasteindustries.com under the "Investor Relations" tab. A replay of the call will be available through March 19, 2008 and may be accessed by calling (888) 203-1112 and using confirmation number 9954580.

Waste Industries USA, Inc. is a vertically integrated solid waste services company that provides collection, transfer, disposal and recycling services to commercial, industrial and residential customer locations in the states of North Carolina, South Carolina, Virginia, Tennessee, Mississippi and Georgia.

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the statement will include words such as the Company "believes," "anticipates," "expects" or words of similar import. Similarly, statements that describe the Company's future performance plans, objectives or goals are also forward-looking statements. Forward- looking statements are subject to risks and uncertainties, such as risks in the development and operation of landfills, fuel prices, managing growth, economic trends and weather that could cause actual results to differ materially from those currently anticipated. Consider these factors carefully in evaluating the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings.


                   WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In Thousands, Except Per Share Data)
                                   (Unaudited)

                                    Three Months Ended   Twelve Months Ended
                                       December 31,          December 31,
                                     2006        2007      2006        2007
     Revenues:
        Service revenues            $80,761     $84,398  $326,447    $339,599
        Equipment sales                 358         260     1,098       1,069
            Total revenues           81,119      84,658   327,545     340,668
     Operating costs and expenses:
        Operating (exclusive of
         depreciation and
         amortization shown below)   50,261      54,087   212,171     215,006
        Cost of equipment sales         234         141       666         629
        Selling, general and
         administrative              10,712      12,761    43,167      47,509
        Depreciation and
         amortization                 8,233       8,336    32,093      31,751
        Gain on sale of property
         and equipment and other
         assets                        (500)       (707)   (1,189)     (1,624)
        Impairment of property and
         equipment and other assets     208         -         223          16
           Total operating costs
            and expenses             69,148      74,618   287,131     293,287
     Operating income                11,971      10,040    40,414      47,381
        Interest expense              2,321       2,453     9,608       9,871
        Interest income                 (49)        (42)     (181)       (126)
        Other                          (192)         (3)     (418)       (193)
           Total other expense, net   2,080       2,408     9,009       9,552

     Income from continuing
      operations before income
      taxes                           9,891       7,632    31,405      37,829
       Income tax expense             4,662       2,532    14,416      14,301

     Income from continuing
      operations                      5,229       5,100    16,989      23,528

     Discontinued operations:
     Income from discontinued
      operations, net of income
      taxes                             147           6     2,292         153

     Net income                      $5,376      $5,106   $19,281     $23,681

     Earnings per share:

     Basic:
     Income from continuing
      operations                      $0.38       $0.36     $1.22       $1.67
     Income from discontinued
      operations                       0.01         -        0.17        0.01
     Net income                       $0.39       $0.36     $1.39       $1.68

     Diluted:
     Income from continuing
      operations                      $0.37       $0.36     $1.21       $1.66
     Income from discontinued
      operations                       0.01         -        0.16        0.01
     Net income                       $0.38       $0.36     $1.37       $1.67

     Weighted-Average Number Of
      Shares Outstanding:
        Basic                        13,951      14,158    13,871      14,088
        Diluted                      14,145      14,244    14,043      14,196



                    WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In Thousands)
                                    (Unaudited)

                                               December 31,      December 31,
                                                   2006              2007
      ASSETS
      Current assets:
         Cash and cash equivalents                  $1,656            $4,361
         Receivables, net                           36,408            35,129
         Other                                       5,013            12,332
              Total current assets                  43,077            51,822
      Property and equipment, net                  218,039           234,034
      Intangible assets, net                       104,950           118,766
      Other noncurrent assets                        4,213             4,411
             Total assets                         $370,279          $409,033

      LIABILITIES AND SHAREHOLDERS' EQUITY
      Current liabilities:
         Current maturities of long-term
          debt                                      $7,143            $7,143
         Accounts payable - trade                   13,318            15,703
         Other accrued liabilities and
          deferred revenues                         22,725            28,165
             Total current liabilities              43,186            51,011
      Long-term debt, net of current
       maturities                                  150,069           157,926
      Deferred taxes and related
       contingencies                                23,513            27,121
      Other long-term liabilities                    7,640             9,586
             Total liabilities                     224,408           245,644

      Shareholders' equity:                        145,871           163,389
            Total liabilities and
             shareholders' equity                 $370,279          $409,033



                   WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In Thousands)
                                   (Unaudited)

                                                     Twelve Months Ended
                                                         December 31,
                                                   2006               2007
    Operating Activities:
      Net income                                  $19,281            $23,681
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
         Depreciation and amortization             32,220             31,751
         Landfill accretion expense                   824                727
         Amortization of debt issuance
          costs                                       513                409
         Impairment of property,
          equipment and other assets                  223                 16
         Gain on sale of property,
          equipment and other assets               (1,189)            (1,624)
         Gain on sale of discontinued
          collection and disposal
          operations                               (2,282)              (153)
         Stock compensation expense                   612                867
         Deferred income taxes                      2,381              1,963
         Change in fair value of
          commodity hedges                            644              1,224
         Provision for doubtful accounts            1,557              2,022
      Changes in assets and liabilities,
       net of effects from acquisition and
       disposition of operations                   (9,718)             3,457
              Net cash provided by
               operating activities                45,066             64,340

    Investing Activities:
      Acquisitions of operations                   (6,190)           (24,171)
      Purchases of property and equipment         (41,154)           (36,886)
      Proceeds from sale of discontinued
       collection and disposal operations          16,354                270
      Proceeds from sale of property,
       equipment and other assets                   2,209              2,936
      Increase in restricted cash                    (728)            (6,621)
      Other                                          (179)              (109)
            Net cash used in investing
             activities                           (29,688)           (64,581)

    Financing Activities:

      Proceeds from issuance of long-term
       debt                                        44,000             72,000
      Principal payments of long-term
       debt                                       (55,245)           (64,143)
      Payment of dividends                         (5,283)            (7,198)
      Principal payments of capital lease
       obligations                                   (441)              (213)
      Financing costs                                (579)              (191)
      Excess tax benefit from stock
       option exercises                               346                302
      Net proceeds from exercise of stock
       options                                      1,905              2,389
           Net cash provided by (used in)
            financing activities                  (15,297)             2,946
      Increase in cash and cash
       equivalents                                     81              2,705
      Cash and cash equivalents,
       beginning of period                          1,575              1,656
      Cash and cash equivalents, end of
       period                                      $1,656             $4,361

    Supplemental disclosures of cash flow
     information:
    Cash paid for interest, net of
     capitalized interest                          $9,042            $10,699
    Cash paid for income taxes                    $18,383            $13,209



    EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)

    REVENUE Margins                                12/31/06          12/31/07
    Operating expenses including cost of
     equipment sales                                 65.0%             63.3%
    S G & A                                          13.2%             13.9%
    Depreciation and amortization                     9.8%              9.3%
    Interest expense, net                             2.9%              2.9%
    Income from continuing operations
     (pre-tax)                                        9.6%             11.1%
    Income tax expense                                4.4%              4.2%
    Income from continuing operations                 5.2%              6.9%

    SERVICE REVENUE MIX
     Collection:
       Industrial                                  $89,933           $88,241
       Commercial                                   91,555            96,221
       Residential                                  74,933            81,218
     Disposal and transfer                          46,285            48,375
     Recycling service                               4,719             4,422
     Recycled commodity sales                        3,941             4,739
     Other                                          15,081            16,383
          Total Service Revenue                   $326,447          $339,599

    OPERATING INCOME BEFORE DEPRECIATION,
     AMORTIZATION AND ACCRETION*
      Operating income                             $40,414           $47,381
      Accretion                                        824               727
      Depreciation and amortization                 32,093            31,751
        Operating income before
         depreciation, amortization
         and accretion                             $73,331           $79,859


    CAPITAL EXPENDITURES DETAIL                     YTD 06            YTD 07

      Collection & Transportation                  $29,432           $22,244
      Landfill Development                          11,722            14,642
        Total capital expenditures                 $41,154           $36,886

    FREE CASH FLOW RECONCILIATION *
      Net cash provided by operating
       activities                                  $45,066           $64,340
      Less:  Capital expenditures                  (41,154)          (36,886)
      Plus:  Proceeds from disposal of
       assets                                        2,209             2,936
        Free cash flow                              $6,121           $30,390



    DEBT TO TOTAL CAPITAL                          12/31/06          12/31/07
     (includes capital leases)                       51.9%             50.3%

    TOTAL LIABILITIES TO
     EQUITY                                            1.5               1.5

    DAYS SALES OUTSTANDING                              34                28


    SERVICE REVENUE GROWTH                          Q4 2007           YTD 2007

      Price                                          -0.1%              2.2%
      Volume                                         -0.1%             -1.5%
      Energy surcharge                                1.7%              0.3%
      Total internal growth                           1.5%              1.0%
      Recycling commodities                          -0.2%              0.2%
      Acquisitions                                    3.2%              2.8%
        Total service revenue growth                  4.5%              4.0%


    * Operating income before depreciation, amortization and accretion and
      free cash flow are considered non-GAAP financial measures.  The Company
      defines free cash flow as cash flows from operating activities less
      capital expenditures plus proceeds from the sale of property and
      equipment and other assets.  Operating income before depreciation,
      amortization and accretion and free cash flow do not represent, and
      should not be considered as, an alternative to net income or cash flows
      from operating, investing and financing activities, each as determined
      in accordance with GAAP.  The Company's definitions of operating income
      before depreciation, amortization and accretion and free cash flow might
      not be comparable to similarly titled measures reported by other
      companies.  The Company believes that the presentation of operating
      income before depreciation, amortization and accretion is useful to
      investors because it provides important information of the Company's
      operating performance exclusive of certain non-cash costs.  The Company
      has included information concerning free cash flow because it believes
      it provides additional information for determining its ability to meet
      debt service requirements and that this measure is an indicator upon
      which the Company, its lenders and some investors assess its financial
      performance and its capacity to service debt.  The Company therefore
      interprets free cash flow trends as a measure of its liquidity.

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