Date: February 15, 2011
Source: WCA Waste Corporation
WCA Waste Corp. (Houston, TX) said it entered an operating agreement with Stoughton Recycling Technologies (SRT) (Stoughton, MA) with an option to ultimately buy the company. SRT owns a 44,000 square-foot state-of-the-art construction & demolition (C&D) recycling facility and transfer station located just three miles from WCA's Champion City Recovery (CCR) transfer station, both of which are about 25 miles south of Boston. WCA expects the deal to maximize its recycling efficiencies and improve its local capacity. "CCR will continue to handle the post-processed residual material which is rail hauled to WCA owned Sunny Farms landfill in Ohio," the company said. WCA bought the CCR facility and the Sunny Farms Landfill as part of a $43.4 million purchase of assets from Live Earth LLC in December 2009.
PRESS RELEASE
WCA Waste Corporation Enters Into an Operating Agreement With an Option to Purchase Stoughton Recycling Technologies
WCA Waste Corporation (Nasdaq:WCAA) announced today that it has entered into an operating agreement with Stoughton Recycling Technologies (SRT) with an option to purchase the company. Stoughton Recycling Technologies is a state of the art C & D recycling facility and transfer station in Stoughton, Massachusetts located three miles from the WCA owned Champion City Recovery (CCR) transfer station, approximately 25 miles South of Boston.
Stoughton Recycling Technologies compliments Champion City Recovery by maximizing the tonnage recycled by utilizing SRT processing capabilities. CCR will continue to handle the post processed residual material which is rail hauled to WCA owned Sunny Farms landfill in Ohio. The agreement positions WCA to increase volumes recycled, internalize increased disposal tons and work with the commonwealth of Massachusetts in becoming a leader in C & D recycling.
RISK FACTORS AND CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This press release and other communications, such as conference calls, presentations, statements in public filings, other press releases, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally include discussions and descriptions other than historical information. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "may," "should," "outlook," "project," "intend," "seek," "plan," "believe," "anticipate," "expect," "estimate," "potential," "continue," or "opportunity," the negatives of these words, or similar words or expressions. The forward-looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
We are subject to a number of risks with respect to this transaction including the following: we may be unsuccessful in efficiently operating the Stoughton facility; even though we have day-to-day operational control and responsibility for the Stoughton facility, we do not hold the permits pursuant to which the Stoughton facility is authorized to operate nor do we own or lease the real property on which the facility is located and any compliance or legal issues that may arise under such permits or real property arrangements are not completely within our control; we will be subject to commodity price risks which prices can experience substantial fluctuations; with the residual volumes from the Stoughton facility being transported by rail to our Sunny Farms landfill, we are subject to transportation risks associated with rail transportation.
Our results will be subject to a number of operational and other risks, including the following: general economic conditions may impact our business; we may not be successful in expanding the permitted capacity of our current or future landfills; our business is capital intensive, requiring ongoing cash outlays that may strain or consume our available capital; increases in the costs of disposal, labor and fuel could reduce operating margins; increases in costs of insurance or failure to maintain full coverage could reduce operating income; we may be unable to obtain financial assurances necessary for our operations; we are subject to environmental and safety laws, which restrict our operations and increase our costs, and may impose significant unforeseen liabilities; we compete with large companies and municipalities with greater financial and operational resources, and we also compete with alternatives to landfill disposal; covenants in our credit facilities and the instruments governing our other indebtedness may limit our ability to grow our business and make capital expenditures; changes in interest rates may affect our results of operations; our success depends on key members of our senior management, the loss of any of whom could disrupt our customer and business relationships and our operations. Furthermore, we may not be successful in identifying and consummating future acquisition opportunities and any acquisitions we make may not be successful.
We describe these and other risks in greater detail in the sections entitled "Risk Factors" and "—Cautionary Statement about Forward-Looking Statements" included in our Form 10-K for the year ended December 31, 2009, to which we refer you for additional information.
For more information, contact:
Tommy Fatjo
WCA Waste Corporation (Nasdaq:WCAA)
Houston, Texas
713-292-2400
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