Waste Holdings, Inc. Reports First Quarter 2001

Apr 30, 2001, 01:00 ET from Waste Holdings, Inc.

    RALEIGH, N.C., April 30 /PRNewswire/ --
     Waste Holdings, Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste
 services company, today reported financial results for the first quarter ended
 March 31, 2001:
 
     * Service revenues up 4.9%.
     * EBITDA up 3.4%.
     * Operating income down 9.4%.
     * Net income down 49.3%.
     * Diluted earnings per share, excluding organizational costs was $0.12,
       down 29.4%.
 
     For the quarter ended March 31, 2001, the Company reported service revenue
 of $59.7 million, a 4.9% increase over the same period in 2000.  EBITDA
 (income before income taxes plus interest expense (net of interest income),
 depreciation, and amortization) was $13.0 million, a 3.4% increase over the
 same period in 2000.  Operating income for the quarter was $5.7 million, down
 9.4% from the same period in 2000.  Net income was $1.2 million, down 49.3%
 from the same period in 2000.  Diluted earnings per share, excluding
 organizational costs was $0.12 for the quarter, down 29.4% compared to the
 same period in 2000.  The first quarter conference call will be held Tuesday,
 May 1, 2001 at 2:00 PM (EST).  The call number is (888) 857-6932 and the
 confirmation number is 400224.
     Lonnie C. Poole, Jr., Chairman and CEO of Waste Holdings, Inc., stated,
 "as usual, because of less waste generated in the winter months in our coastal
 markets, business in the first three months was slow.  We also worked hard and
 completed two major projects that should provide cost savings for the next
 three quarters in 2001 and beyond.  First, we completed our holding company
 reorganization to simplify our organizational structure.  Second, we issued
 $33.8 million of 20-year tax exempt bonds to replace short term higher
 interest rate debt.  We spent a lot of time and money this quarter doing
 things that we believe will provide savings in future years."
     Waste Holdings, 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, Alabama,
 Georgia and Florida.
     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 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, availability of landfill space,
 difficulties in managing rapid growth, and weather conditions, 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.  The forward-looking
 statements made herein are only made as of the date of this press release and
 the Company undertakes no obligation to publicly update such forward-looking
 statements.
 
 
 
                                WASTE HOLDINGS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In Thousands, Except Per Share Data)
                                    (unaudited)
 
                                                Three Months Ended
                                                     March 31,              %
                                                2000          2001       Change
     Revenues:
        Service                               $56,914       $59,682       4.9%
        Equipment                                 369           365      -1.1%
           Total revenues                      57,283        60,047       4.8%
     Operating costs and expenses:
        Operations                             35,510        36,992       4.2%
        Equipment Sales                           221           284      28.5%
        Selling, general and
         administrative                         9,013         9,517       5.6%
        Depreciation and amortization           6,203         7,206      16.2%
        Organizational costs                                    570       N/A
           Total operating costs and
            expenses                           50,947        54,569       7.1%
     Operating income                           6,336         5,478     -13.5%
        Interest expense                        2,815         4,072      44.6%
        Interest income                          (344)         (382)     11.0%
        Other                                     (53)          (75)     41.5%
            Total other expense (income)        2,418         3,615      49.5%
     Income before income taxes                 3,918         1,863     -52.4%
     Income tax expense                         1,568           671     -57.2%
     Net income                               $ 2,350       $ 1,192     -49.3%
     Earnings per share:
        Basic                                    0.17          0.09     -47.0%
        Diluted                                  0.17          0.09     -47.0%
     Earnings per share excluding
      organizational costs:
        Basic                                    0.18          0.12     -33.3%
        Diluted                                  0.17          0.12     -29.4%
     Weighted average common shares
      outstanding:
        Basic                                  13,854        13,141      -5.1%
        Diluted                                14,132        13,168      -6.8%
 
 
     EBITDA(A)                                 12,592        12,759       1.3%
 
     (A) EBITDA is defined as income before income taxes plus interest expense
         (net of interest income), depreciation and amortization.
 
 
     EARNINGS RELEASE - SUPPLEMENTAL DATA
 
     MARGINS OF SERVICE REVENUE        1Q  01   Free Cash Flow Analysis 1Q  01
     Cost of Operations                 61.6%   Net Income               1,192
     S G & A                            15.9%
     Depreciation and Amortization      12.1%   Depreciation &
                                                Amortization             7,206
     Operating Income Margin             9.6%   Deferred Income Taxes       --
     Interest Expense, net of income     6.6%   Other                      421
     Pre-Tax Net Income                  3.1%   Prepayment of Insurance (6,750)
     Income Tax Expense                 36.0%   Working Capital         (2,550)
     Historical Net Income               2.0%   Cash from Operations      (481)
     EBITDA                             21.8%   Capex                   (8,020)
                                                Free Cash Flow before
                                                acquisition             (8,501)
                                                Cash paid for
                                                acquisitions            (5,002)
                                                Free Cash Flow after
                                                 acquisitions          (13,503)
 
 
 
     INTERNAL GROWTH                  1Q  01    Accounts Receivable
     Price                               1.0%    Days                       38
     Volume                              0.0%
                                         1.0%
 
     TOTAL DEBT           3.31.01   $205,388
                                                Ending Cash
                                                 @ 03.31.01               $997
     TOTAL EQUITY         3.31.01   $ 68,646
 
     DEBT TO TOTAL CAP                 74.95%
 
     RETURN ON EQUITY                   7.03%
 
     DEBT TO EQUITY                     3.54
 
     WORKING CAPITAL                $ 17,721
 
                           1Q  01   Y-T-D 2001
     MAINTENANCE CAP X     $8,020   $  8,020
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38434650
 
 

SOURCE Waste Holdings, Inc.
    RALEIGH, N.C., April 30 /PRNewswire/ --
     Waste Holdings, Inc. (Nasdaq: WWIN), a regional, non-hazardous solid waste
 services company, today reported financial results for the first quarter ended
 March 31, 2001:
 
     * Service revenues up 4.9%.
     * EBITDA up 3.4%.
     * Operating income down 9.4%.
     * Net income down 49.3%.
     * Diluted earnings per share, excluding organizational costs was $0.12,
       down 29.4%.
 
     For the quarter ended March 31, 2001, the Company reported service revenue
 of $59.7 million, a 4.9% increase over the same period in 2000.  EBITDA
 (income before income taxes plus interest expense (net of interest income),
 depreciation, and amortization) was $13.0 million, a 3.4% increase over the
 same period in 2000.  Operating income for the quarter was $5.7 million, down
 9.4% from the same period in 2000.  Net income was $1.2 million, down 49.3%
 from the same period in 2000.  Diluted earnings per share, excluding
 organizational costs was $0.12 for the quarter, down 29.4% compared to the
 same period in 2000.  The first quarter conference call will be held Tuesday,
 May 1, 2001 at 2:00 PM (EST).  The call number is (888) 857-6932 and the
 confirmation number is 400224.
     Lonnie C. Poole, Jr., Chairman and CEO of Waste Holdings, Inc., stated,
 "as usual, because of less waste generated in the winter months in our coastal
 markets, business in the first three months was slow.  We also worked hard and
 completed two major projects that should provide cost savings for the next
 three quarters in 2001 and beyond.  First, we completed our holding company
 reorganization to simplify our organizational structure.  Second, we issued
 $33.8 million of 20-year tax exempt bonds to replace short term higher
 interest rate debt.  We spent a lot of time and money this quarter doing
 things that we believe will provide savings in future years."
     Waste Holdings, 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, Alabama,
 Georgia and Florida.
     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 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, availability of landfill space,
 difficulties in managing rapid growth, and weather conditions, 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.  The forward-looking
 statements made herein are only made as of the date of this press release and
 the Company undertakes no obligation to publicly update such forward-looking
 statements.
 
 
 
                                WASTE HOLDINGS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In Thousands, Except Per Share Data)
                                    (unaudited)
 
                                                Three Months Ended
                                                     March 31,              %
                                                2000          2001       Change
     Revenues:
        Service                               $56,914       $59,682       4.9%
        Equipment                                 369           365      -1.1%
           Total revenues                      57,283        60,047       4.8%
     Operating costs and expenses:
        Operations                             35,510        36,992       4.2%
        Equipment Sales                           221           284      28.5%
        Selling, general and
         administrative                         9,013         9,517       5.6%
        Depreciation and amortization           6,203         7,206      16.2%
        Organizational costs                                    570       N/A
           Total operating costs and
            expenses                           50,947        54,569       7.1%
     Operating income                           6,336         5,478     -13.5%
        Interest expense                        2,815         4,072      44.6%
        Interest income                          (344)         (382)     11.0%
        Other                                     (53)          (75)     41.5%
            Total other expense (income)        2,418         3,615      49.5%
     Income before income taxes                 3,918         1,863     -52.4%
     Income tax expense                         1,568           671     -57.2%
     Net income                               $ 2,350       $ 1,192     -49.3%
     Earnings per share:
        Basic                                    0.17          0.09     -47.0%
        Diluted                                  0.17          0.09     -47.0%
     Earnings per share excluding
      organizational costs:
        Basic                                    0.18          0.12     -33.3%
        Diluted                                  0.17          0.12     -29.4%
     Weighted average common shares
      outstanding:
        Basic                                  13,854        13,141      -5.1%
        Diluted                                14,132        13,168      -6.8%
 
 
     EBITDA(A)                                 12,592        12,759       1.3%
 
     (A) EBITDA is defined as income before income taxes plus interest expense
         (net of interest income), depreciation and amortization.
 
 
     EARNINGS RELEASE - SUPPLEMENTAL DATA
 
     MARGINS OF SERVICE REVENUE        1Q  01   Free Cash Flow Analysis 1Q  01
     Cost of Operations                 61.6%   Net Income               1,192
     S G & A                            15.9%
     Depreciation and Amortization      12.1%   Depreciation &
                                                Amortization             7,206
     Operating Income Margin             9.6%   Deferred Income Taxes       --
     Interest Expense, net of income     6.6%   Other                      421
     Pre-Tax Net Income                  3.1%   Prepayment of Insurance (6,750)
     Income Tax Expense                 36.0%   Working Capital         (2,550)
     Historical Net Income               2.0%   Cash from Operations      (481)
     EBITDA                             21.8%   Capex                   (8,020)
                                                Free Cash Flow before
                                                acquisition             (8,501)
                                                Cash paid for
                                                acquisitions            (5,002)
                                                Free Cash Flow after
                                                 acquisitions          (13,503)
 
 
 
     INTERNAL GROWTH                  1Q  01    Accounts Receivable
     Price                               1.0%    Days                       38
     Volume                              0.0%
                                         1.0%
 
     TOTAL DEBT           3.31.01   $205,388
                                                Ending Cash
                                                 @ 03.31.01               $997
     TOTAL EQUITY         3.31.01   $ 68,646
 
     DEBT TO TOTAL CAP                 74.95%
 
     RETURN ON EQUITY                   7.03%
 
     DEBT TO EQUITY                     3.54
 
     WORKING CAPITAL                $ 17,721
 
                           1Q  01   Y-T-D 2001
     MAINTENANCE CAP X     $8,020   $  8,020
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38434650
 
 SOURCE  Waste Holdings, Inc.

RELATED LINKS

http://www.waste-ind.com