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Waste Connections Reports Fourth Quarter Results and Provides 2008 Outlook

- Reports revenue of $247.7 million, up 17.6%, and internal growth of 10.3%

- Reports earnings per share of $0.33, including $0.02 of items noted below

- Completes additional $20 million of acquired annualized revenue

- Reports full year free cash flow of $106.2 million, or 11.1% of revenue

- Repurchases approximately $110.3 million of common stock during the year

- Expects approximately 10% revenue growth in 2008, excluding additional acquisitions, and more than 20% increase in free cash flow

PRNewswire-FirstCall
FOLSOM, Calif.
Feb 11, 2008

Waste Connections, Inc. today announced its results for the fourth quarter 2007. Revenue totaled $247.7 million, a 17.6% increase over revenue of $210.7 million in the year ago period. Operating income was $49.7 million, a 13.3% increase over operating income of $43.9 million in the fourth quarter of 2006. Net income in the quarter was $22.8 million, or $0.33 per share on a diluted basis of 69.5 million shares. Management noted that current period results included approximately $2.7 million ($1.6 million net of taxes, or approximately $0.02 per share) associated with higher than expected fuel prices and the previously announced labor disruption in El Paso. In the year ago period, the Company reported net income of $20.6 million and diluted earnings per share of $0.29.

"We are extremely pleased with our results in the quarter and the underlying strength of our business as we look to 2008. Internal growth exceeded our expectations, and operating results in the quarter were quite strong, despite the approximate 100 basis point margin impact from higher than expected fuel prices and the labor disruption in El Paso," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "In addition, we recently completed eight acquisitions with combined annualized revenue of approximately $20 million, the two largest of which include Cascade Disposal, a long-term franchise provider in Bend, Oregon, and Clarksville Disposal, the leading provider of collection services in Clarksville, Tennessee. With these transactions, acquisition activity in the year totaled approximately $55 million of annualized revenue."

Mr. Mittelstaedt added, "A continuing strong pricing environment and rollover contribution from recently completed acquisitions position us both for double digit revenue growth in 2008 and to offset recent increases in fuel prices. Finally, an expected more than 20% increase in free cash flow in 2008 provides us the continuing flexibility to fund our growth strategy while returning an estimated $125 million to shareholders this year through stock repurchases."

For the year ended December 31, 2007, revenue was $958.5 million, a 16.3% increase over revenue of $824.4 million in 2006. Operating income was $207.0 million, a 20.8% increase over operating income of $171.4 million in 2006. Net income was $99.1 million, or $1.42 per share on a diluted basis of 70.0 million shares. In 2006, the Company reported net income of $77.4 million, or $1.10 per share on a diluted basis of 70.4 million shares.

2008 OUTLOOK

Waste Connections also announced its outlook for 2008. The Company's outlook excludes the impact of any additional acquisitions and assumes: (1) fuel expense as a percentage of revenue increasing approximately 70 basis points reflecting higher current market prices; (2) approximately $13.0 million of non-cash related costs ($8 million net of taxes, or approximately $0.12 per share), consisting of an estimated $8 million for equity-based compensation costs and $5.0 million for amortization of acquisition-related intangibles; and (3) $125 million of common stock repurchased during the year. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic SEC filings. Certain components of the outlook for 2008 are subject to quarterly fluctuations.

  -- Revenue is estimated to increase approximately 10.0% and range between
     $1.05 billion and $1.06 billion.  This assumes internal growth of
     approximately 6.0%, with between 4.5% and 5.0% from price and
     surcharges.
  -- Selling, general and administrative expense, which includes
     approximately $8.0 million of non-cash equity-based compensation costs,
     is estimated at approximately 10.5% of revenue.
  -- Depreciation and amortization, which includes approximately $5.0
     million of non-cash amortization expense for acquisition-related
     intangibles, is estimated at approximately 9.0% of revenue.
  -- Operating income is estimated at approximately 21.5% of revenue.
  -- Net interest expense is estimated at approximately $36.5 million.
  -- Minority interest expense is estimated at approximately 1.5% of
     revenue.
  -- Effective tax rate is expected to be approximately 38.5%.
  -- Net cash provided by operating activities is estimated to be
     approximately 24% of revenue.
  -- Capital expenditures are estimated to be approximately $110 million.
  -- Diluted shares outstanding are expected to average approximately 67
     million.


Waste Connections will be hosting a conference call related to fourth quarter earnings and 2008 outlook on February 11th at 5:00 P.M. Eastern Time. The call will be broadcast live over the Internet at http://www.streetevents.com/ and through a link on the Company's web site at http://www.wasteconnections.com/. A playback of the call will be available at both of these sites.

For non-GAAP measures, see accompanying Non-GAAP Reconciliation Schedule.

Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly secondary markets in the Western and Southern U.S. The Company serves approximately 1.5 million residential, commercial and industrial customers from a network of operations in 23 states. The Company also provides intermodal services for the movement of containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in Folsom, California.

For more information, visit the Waste Connections web site at http://www.wasteconnections.com/. Copies of financial literature, including this release, are available on the Waste Connections web site or through contacting us directly at (916) 608-8200.

Certain statements contained in this press release are forward-looking in nature. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. Waste Connections' business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) Waste Connections may be unable to compete effectively with larger and better capitalized companies and governmental service providers; (2) increases in the price of fuel may adversely affect Waste Connections' business and reduce its operating margins; (3) increases in labor and disposal and related transportation costs could impact Waste Connections' financial results; (4) increases in insurance costs and the amount that Waste Connections self-insures for various risks could reduce its operating margins and reported earnings; (5) Waste Connections depends significantly on the services of the members of its senior, regional and district management team, and the departure of any of those persons could cause its operating results to suffer; (6) Waste Connections' financial results are based upon estimates and assumptions that may differ from actual results; (7) efforts by labor unions could divert management attention and adversely affect operating results; (8) Waste Connections' results are vulnerable to economic conditions and seasonal factors affecting the regions in which it operates; (9) Waste Connections may lose contracts through competitive bidding, early termination or governmental action; (10) Waste Connections may be subject in the normal course of business to judicial and administrative proceedings that could interrupt its operations, require expensive remediation, result in adverse judgments or settlements and create negative publicity; (11) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit Waste Connections' ability to grow through acquisitions; (12) Waste Connections' growth and future financial performance depend significantly on its ability to integrate acquired businesses into its organization and operations; (13) Waste Connections' acquisitions may not be successful, resulting in changes in strategy, operating losses or a loss on sale of the business acquired; (14) because Waste Connections depends on railroads for its intermodal operations, its operating results and financial condition are likely to be adversely affected by any reduction or deterioration in rail service; (15) Waste Connections' decentralized decision-making structure could allow local managers to make decisions that adversely affect Waste Connections' operating results; (16) Waste Connections may incur additional charges related to capitalized expenditures, which would decrease its earnings; (17) each business that Waste Connections acquires or has acquired may have liabilities that Waste Connections fails or is unable to discover, including environmental liabilities; (18) liabilities for environmental damage may adversely affect Waste Connections' business and earnings; and (19) the adoption of new accounting standards or interpretations could adversely affect Waste Connections' financial results. These risks and uncertainties, as well as others, are discussed in greater detail in Waste Connections' filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. There may be additional risks of which Waste Connections is not presently aware or that it currently believes are immaterial which could have an adverse impact on its business. Waste Connections makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

                      - financial tables attached -



                         WASTE CONNECTIONS, INC.
                    CONSOLIDATED STATEMENTS OF INCOME
         THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2007
                               (Unaudited)
            (in thousands, except share and per share amounts)

                              Three months ended       Twelve months ended
                                 December 31,               December 31,
                               2006        2007          2006         2007

  Revenues                  $210,668     $247,730     $824,354     $958,541
  Operating expenses:
    Cost of operations       124,421      149,855      492,766      566,089
    Selling, general and
     administrative           22,695       25,083       84,541       99,565
    Depreciation and
     amortization             18,825       22,912       74,865       85,628
    Loss on disposal
     of assets                   831          155          796          250
  Operating income            43,896       49,725      171,386      207,009

  Interest expense, net       (7,285)      (8,600)     (28,970)     (33,430)
  Minority interests          (3,157)      (3,725)     (12,905)     (14,870)
  Other income
   (expense), net                 81           47       (3,759)         289
  Income before
   income taxes               33,535       37,447      125,752      158,998

  Income tax provision       (12,908)     (14,693)     (48,329)     (59,917)
  Net income                 $20,627      $22,754      $77,423      $99,081

  Basic earnings per
   common share                $0.30        $0.34        $1.14        $1.45

  Diluted earnings per
   common share                $0.29        $0.33        $1.10        $1.42

  Shares used in the per
   share calculations:
    Basic                 68,046,555   67,882,400   68,136,126   68,238,523
    Diluted               70,029,341   69,478,079   70,408,673   69,994,713



                         WASTE CONNECTIONS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (Unaudited)
            (in thousands, except share and per share amounts)


                                                 December 31,   December 31,
                                                    2006           2007
  ASSETS
  Current assets:
    Cash and equivalents                           $34,949        $10,298
    Accounts receivable, net of allowance
     for doubtful accounts of $3,489 and $4,387
     at December 31, 2006 and 2007, respectively   100,269        123,882
    Deferred income taxes                            9,373         14,732
    Prepaid expenses and other current assets       15,642         21,953
      Total current assets                         160,233        170,865

  Property and equipment, net                      736,428        865,330
  Goodwill                                         750,397        811,049
  Intangible assets, net                            86,098         93,957
  Restricted assets                                 15,917         19,300
  Other assets, net                                 24,818         21,457
                                                $1,773,891     $1,981,958

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                               $53,010        $59,912
    Book overdraft                                       -          8,835
    Accrued liabilities                             57,810         69,578
    Deferred revenue                                32,161         44,074
    Current portion of long-term debt
     and notes payable                               6,884         13,315
      Total current liabilities                    149,865        195,714

  Long-term debt and notes payable                 637,308        719,518
  Other long-term liabilities                       16,712         38,053
  Deferred income taxes                            205,532        223,308
  Total liabilities                              1,009,417      1,176,593

  Commitments and contingencies
  Minority interests                                27,992         30,220

  Stockholders' equity:
  Preferred stock: $0.01 par value per share;
   7,500,000 shares authorized; none issued
   and outstanding                                       -              -
  Common stock: $0.01 par value per share;
   150,000,000 shares authorized; 68,266,038
   and 67,052,135 shares issued and outstanding
   at December 31, 2006 and 2007, respectively         455            670
  Additional paid-in capital                       310,229        254,284
  Retained earnings                                422,731        524,481
  Accumulated other comprehensive income (loss)      3,067        (4,290)
      Total stockholders' equity                   736,482        775,145
                                                $1,773,891     $1,981,958



                         WASTE CONNECTIONS, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2007
                               (Unaudited)
                          (Dollars in thousands)


                                                    Twelve months ended
                                                        December 31,
                                                     2006          2007

  Cash flows from operating activities:
  Net income                                       $77,423        $99,081
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Loss on disposal of assets                         796            250
    Depreciation                                    70,785         81,287
    Amortization of intangibles                      4,080          4,341
    Deferred income taxes, net of acquisitions      26,585         12,440
    Minority interests                              12,905         14,870
    Amortization of debt issuance costs              6,238          2,182
    Stock-based compensation                         3,451          6,128
    Interest income on restricted assets              (618)          (684)
    Closure and post-closure accretion                 623          1,155
    Excess tax benefit associated
     with equity-based compensation                 (7,728)       (14,137)
    Net change in operating assets and
     liabilities, net of acquisitions                9,694         12,156
  Net cash provided by operating activities        204,234        219,069

  Cash flows from investing activities:
    Payments for acquisitions, net of
     cash acquired                                 (38,594)      (109,429)
    Capital expenditures for property
     and equipment                                 (96,519)      (124,234)
    Proceeds from disposal of assets                 2,198          1,016
    Increase in restricted assets,
     net of interest income                         (1,411)        (2,698)
    Increase in other assets                          (224)          (264)
  Net cash used in investing activities           (134,550)      (235,609)

  Cash flows from financing activities:
    Proceeds from long-term debt                   666,035        626,000
    Principal payments on notes payable
     and long-term debt                           (621,161)      (568,607)
    Change in book overdraft                        (8,869)         8,835
    Proceeds from option and warrant exercises      32,146         35,620
    Excess tax benefit associated with
     equity-based compensation                       7,728         14,137
    Distributions to minority interest holders     (11,270)       (12,642)
    Payments for repurchase of common stock       (100,245)      (110,329)
    Debt issuance costs                             (6,613)        (1,125)
  Net cash used in financing activities            (42,249)        (8,111)

  Net increase (decrease) in cash and equivalents   27,435        (24,651)
  Cash and equivalents at beginning of period        7,514         34,949
  Cash and equivalents at end of period            $34,949        $10,298



                          ADDITIONAL STATISTICS
                   THREE MONTHS ENDED DECEMBER 31, 2007
                          (Dollars in thousands)

  Internal Growth:  The following table reflects revenue growth for
   operations owned for at least 12 months:

                                        Three Months Ended
                                         December 31, 2007
  Price                                         4.6%
  Volume                                        3.5%
  Intermodal, Recycling and Other               2.2%
  Total                                        10.3%


  Uneliminated Revenue Breakdown:

                                        Three Months Ended
                                         December 31, 2007
  Collection                            $180,789      64.3%
  Disposal and Transfer                   74,883      26.6%
  Intermodal, Recycling and Other         25,447       9.1%
  Total                                 $281,119     100.0%

  Inter-company elimination              $33,389


  Days Sales Outstanding for the three months ended December 31, 2007:  46
  (30 net of deferred revenue)


  Internalization for the three months ended December 31, 2007:  67%


  Other Cash Flow Items for the three months ended December 31, 2007:
   Cash Interest Paid:  $10,201
   Cash Taxes Paid:     $13,036


  Debt to Capitalization:  48.6%


  Shares Repurchased during the three months ended December 31, 2007:
   1,475,800



                     NON-GAAP RECONCILIATION SCHEDULE
                              (in thousands)

  Free cash flow, a non-GAAP financial measure, is provided supplementally
  because it is widely used by investors as a valuation and liquidity
  measure in the solid waste industry.  Waste Connections defines free cash
  flow as net cash provided by operating activities, plus proceeds from
  disposal of assets and excess tax benefit associated with equity-based
  compensation, plus or minus change in book overdraft, less capital
  expenditures for property and equipment and distributions to minority
  interest holders.  This measure should be used in conjunction with GAAP
  financial measures.  Management uses free cash flow as one of the
  principal measures to evaluate and monitor the ongoing financial
  performance of our operations.  Other companies may calculate free cash
  flow differently.

  Free cash flow reconciliation:

                                    Three Months Ended   Twelve Months Ended
                                     December 31, 2007     December 31, 2007

  Net cash provided
   by operating activities                $49,003              $219,069
  Plus: Change in book overdraft            2,340                 8,835
  Plus: Proceeds from
   disposal of assets                          61                 1,016
  Plus: Excess tax benefit associated
   with equity-based compensation           3,948                14,137
  Less: Capital expenditures
   for property and equipment             (28,127)             (124,234)
  Less: Distributions to
   minority interest holders               (2,205)              (12,642)
  Free cash flow                          $25,020              $106,181

  Free cash flow as % of revenues            10.1%                 11.1%

First Call Analyst:
FCMN Contact:

SOURCE: Waste Connections, Inc.

CONTACT: Worthing Jackman of Waste Connections, Inc., +1-916-608-8266,
worthingj@wasteconnections.com


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