Waste Industries Usa 8-K WASTE INDUSTRIES USA, INC. Reports First Quarter 2005 Results

EXHIBIT 99.1

WASTE INDUSTRIES USA, INC. Reports First Quarter 2005 Results

Raleigh, NC, Tuesday, April 28, 2005 — Waste Industries USA, Inc. (NASDAQ: WWIN), a regional, non-hazardous solid waste services company, today reported unaudited financial results for the first quarter ended March 31, 2005.

For the quarter ended March 31, 2005, revenue increased 3.7% to $71.8 million, compared to $69.2 million for the quarter ended March 31, 2004. Operating income for the first quarter of 2005 decreased 4.3% to $6.6 million, compared to operating income of $6.9 million for the first quarter of 2004. Net income was $2.6 million, or $0.19 per diluted share, compared to $2.8 million, or $0.21 per diluted share for the quarters ended March 31, 2005 and 2004, respectively.

Commenting on the Company’s performance, Jim W. Perry, President and CEO of Waste Industries USA, Inc., said, “While we were pleased with our revenue growth for the quarter, drastic increases in the cost of fuel and costs associated with integrating acquired operations in Atlanta had an adverse impact on our operating margin.”

The Company will host a conference call to discuss its fourth quarter results on Friday, April 29, 2005 at 2:00 PM (EST). The call number is (800) 946-0712 and the confirmation number is 4535060. The conference call will also be broadcast live over the Internet athttp://www.waste-ind.com under the “Investor Relations” tab. A replay of the call will be available through May 13, 2005, and may be accessed by calling (888) 203-1112 and using confirmation #4535060.

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, Georgia and Florida.

The tables attached to this press release contain references to operating income before depreciation and amortization and free cash flow, which are considered non-GAAP financial measures. Tables reconciling operating income before depreciation and amortization and free cash flow to the appropriate GAAP measures for each period presented are included in the attached supplemental data. The Company defines free cash flow as cash flows from operating activities less capital expenditures plus proceeds from the sale of fixed assets. Operating income before depreciation and amortization 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. Our definitions of operating income before depreciation and amortization and free cash flow might not be comparable to similarly titled measures reported by other companies. The Company has included information concerning operating income before depreciation and free cash flow because it believes that operating income before depreciation and amortization and free cash flow provide additional information for determining its ability to meet debt service requirements and that they are two indicators upon which the Company, its lenders and some investors assess its financial performance and its capacity to service debt. The Company therefore interprets the trends that operating income before depreciation and amortization and free cash flow depict as measures of its liquidity.

This press release may contain 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 weather conditions, managing growth, economic trends and risks in the development and operation of landfills 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 INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended March 31,
	2004			2005
Revenues:
Service	$	69,021		$	71,673
Equipment		219			154
Total revenues		69,240			71,827
Operating cost and expenses:
Operations		45,551			48,389
Equipment sales		127			106
Selling, general and administrative		9,413			9,521
Depreciation and amortization		7,339			7,078
Gain on sale of property and equipment		(117	)		(25	)
Asset impairments		—			126
Total operating costs and expenses		62,313			65,195
Operating income		6,927			6,632
Interest expense (net)		2,542			2,331
Other income		(65	)		(21	)
Total other expense, net		2,477			2,310
Income before income taxes		4,450			4,322
Income tax expense		1,625			1,709
Net Income	$	2,825		$	2,613
Earnings per share:
Basic	$	0.21		$	0.19
Diluted	$	0.21		$	0.19
Weighted-Average Number Of Shares Outstanding:
Basic		13,493			13,538
Diluted		13,658			13,774

WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)

	December 31, 2004		March 31, 2005
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,445	$	940
Receivables, net		31,602		28,480
Other		7,028		6,914
Total current assets		41,075		36,334
Property and equipment, net		198,551		199,066
Intangible assets, net		92,702		94,710
Other noncurrent assets		4,720		4,471
Total assets	$	337,048	$	334,581
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	10,733	$	10,733
Accounts payable - trade		14,627		12,796
Other accrued liabilities and deferred revenues		22,570		21,644
Total current liabilities		47,930		45,173
Long-term debt, net of current maturities		145,930		140,358
Other liabilities		25,477		27,065
Total liabilities		219,337		212,596
Shareholders’ equity		117,711		121,985
Total liabilities and shareholders’ equity	$	337,048	$	334,581

WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Three Months Ended March 31,
	2004			2005
Operating Activities:
Net income	$	2,825		$	2,613
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,339			7,078
Amortization of debt issuance costs		186			181
Asset impairments		—			126
Gain on sale of property and equipment		(117	)		(25	)
Stock compensation expense		5			14
Provision for deferred income taxes		1			829
Provision for doubtful accounts		470			655
Changes in operating assets and liabilities, net of effects from acquisition and disposition of related businesses		(601	)		(822	)
Net cash provided by operating activities		10,108			10,649
Investing Activities:
Acquisitions of related business, net of cash acquired		(430	)		(2,510	)
Settlement of acquisition liabilities		(107	)		(298	)
Collection of notes receivable		—			1,060
Proceeds from sale of insurance policy		—			164
Proceeds from sale of property and equipment		760			392
Purchases of property and equipment		(4,020	)		(6,782	)
Net cash used in investing activities		(3,797	)		(7,974	)
Financing Activities:
Proceeds from issuance of long-term debt		3,000			5,000
Principal payments of long-term debt		(11,571	)		(10,572	)
Principal payments of capital lease obligations		(109	)		(56	)
Financing costs		(3	)		—
Net proceeds from exercised options		27			1,448
Net cash used in financing activities		(8,656	)		(4,180	)
DECREASE IN CASH AND CASH EQUIVALENTS		(2,345	)		(1,505	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		4,127			2,445
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	1,782		$	940
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	2,380		$	2,054
Cash paid for taxes	$	2,116		$	1,940

EARNINGS RELEASE - SUPPLEMENTAL DATA

	QUARTER ENDED
	3/31/04			3/31/05
REVENUE MARGINS
Cost of Operations		65.8	%		67.4	%
S G & A		13.6	%		13.3	%
Depreciation and amortization		10.6	%		9.9	%
Interest expense, (net)		3.7	%		3.3	%
Income before income tax		6.4	%		6.0	%
Income tax expense		2.3	%		2.4	%
Net income		4.1	%		3.6	%
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
Operating income	$	6,927		$	6,632
Depreciation		5,779			5,649
Amortization		1,560			1,429
Operating income before depreciation and amortization	$	14,266		$	13,710
CAPITAL EXPENDITURES DETAIL
Collection & Transportation	$	3,398		$	5,100
Landfill Development		622			1,682
Total Capital Expenditures	$	4,020		$	6,782
FREE CASH FLOW RECONCILIATION
Net cash provided by operating activities	$	10,108		$	10,518
Less: Capital expenditures		(4,020	)		(6,782	)
Plus: Proceeds from disposal of assets		760			392
Free Cash flow	$	6,848		$	4,128
	12/31/04			3/31/05
DEBT TO CAPITALIZATION (includes capital leases)		57.2	%		55.4	%
TOTAL LIABILITIES TO EQUITY		1.9			1.7
DAYS SALES OUTSTANDING		36			37
	QUARTER ENDED
	3/31/04			3/31/05
SERVICE REVENUE BREAKOUT
Collection:
Industrial		29.7	%		27.2	%
Commercial		27.5	%		26.9	%
Residential		20.9	%		23.1	%
Disposal and transfer		14.7	%		15.8	%
Recycling service		1.9	%		1.8	%
Recycled commodity sales		1.5	%		1.6	%
Other		3.8	%		3.6	%
Total service revenue		100.0	%		100.0	%
SERVICE REVENUE GROWTH
Price		0.5	%		1.2	%
Volume		3.4	%		0.9	%
Energy surcharge		0.4	%		-0.1	%
Total Internal Growth		4.3	%		2.0	%
Commodities		0.3	%		0.1	%
Acquisitions		5.9	%		1.7	%
Total Service Revenue Growth		10.5	%		3.8	%