Waste Industries Usa 8-K WASTE INDUSTRIES USA, INC. Reports Third Quarter 2007 Financial Results

Exhibit 99.1

WASTE INDUSTRIES USA, INC. Reports Third Quarter 2007 Financial Results

Raleigh, NC, Tuesday, October 30, 2007 — Waste Industries USA, Inc. (NASDAQ: WWIN), a regional, non-hazardous solid waste services company, today reported preliminary financial results for the third quarter ended September 30, 2007.

For the quarter ended September 30, 2007, revenue increased 4.6% to $88.6 million, compared to $84.7 million for the quarter ended September 30, 2006. Operating income for the third quarter 2007 increased 21.5% to $13.4 million, compared to $11.1 million for the same period in 2006. Income from continuing operations for the third quarter 2007 was $6.9 million, or $0.49 per share, a 77.9% increase from income from continuing operations of $3.9 million, or $0.28 per share, for the third quarter of 2006. The Company had no income from discontinued operations (net of income taxes) for the third quarter of 2007, compared to a loss of $0.1 million, or $0.01 per share, for the same period in 2006. Net income was $6.9 million, or $0.49 per share, for the quarter ended September 30, 2007, compared to $3.8 million, or $0.27 per share, for the same period in 2006. The third quarter of 2007 was positively impacted $1.2 million, or $.05 per diluted share, net of tax, as a result of the annual accounting adjustment for landfill capping, closure and post closure costs in accordance with Statement of Financial Accounting Standards No. 143. Results for the third quarter of 2006 were impacted by a higher effective tax rate of 55.8% due to an adjustment to accrued deferred tax liabilities of $1.2 million, or $.09 per diluted share.

For the nine months ended September 30, 2007, revenue increased 3.9% to $256.0 million, compared to $246.4 million for the same period in 2006. Operating income increased 31.3% to $37.3 million, compared to $28.4 million for the nine months ended September 30, 2006. Income from continuing operations was $18.4 million, or $1.30 per diluted share, a 56.7% increase from income from continuing operations of $11.8 million, or $0.84 per diluted share, for the nine months ended September 30, 2006. Income from discontinued operations (net of income taxes) was $0.1 million, or $.01 per share, for the nine months ended September 30, 2007, compared to $2.1 million, or $0.15 per share, for the same period in 2006, primarily due to a gain on sale of our Jacksonville, Florida landfill operation in April 2006. Net income was $18.6 million, or $1.31 per diluted share, for the nine months ended September 30, 2007, compared to $13.9 million, or $0.99 per diluted share, for the same period in 2006.

Jim W. Perry, President and CEO of the Company, stated, “Our performance for the third quarter and year-to-date reflects our ability to internalize more of the waste we collect into our landfills. In addition, the acquisitions we’ve made within the markets we serve have helped to improve our route density and asset optimization.”

The Company will host a conference call to discuss its third quarter results on October 31, 2007 at 2:00 PM (Eastern Time). The call number is (877) 723-9522 and the confirmation number is 7994002. The conference call will also be broadcast live over the Internet athttp://www.wasteindustries.com under the “Investor Relations” tab. A replay of the call will be available through November 14, 2007 and may be accessed by calling (888) 203-1112 and using confirmation number 7994002.

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 September 30,						Nine Months Ended September 30,
	2006			2007			2006			2007
Revenues:
Service revenues	$	84,387		$	88,215		$	245,687		$	255,202
Equipment sales		294			371			740			809
Total revenues		84,681			88,586			246,427			256,011
Operating costs and expenses:
Operating (exclusive of depreciation and amortization shown below)		55,670			56,709			161,909			160,919
Cost of equipment sales		145			252			432			488
Selling, general and administrative		10,228			11,315			32,455			34,748
Depreciation and amortization		7,862			7,027			23,860			23,415
Gain on sale of property and equipment and other assets		(303	)		(158	)		(688	)		(917	)
Impairment of property and equipment and other assets		15			—			15			16
Total operating costs and expenses		73,617			75,145			217,983			218,669
Operating income		11,064			13,441			28,444			37,342
Interest expense		2,379			2,571			7,287			7,418
Interest income		(36	)		(27	)		(131	)		(83	)
Other		(76	)		(38	)		(226	)		(190	)
Total other expense, net		2,267			2,506			6,930			7,145
Income from continuing operations before income taxes		8,797			10,935			21,514			30,197
Income tax expense		4,910			4,021			9,754			11,769
Income from continuing operations		3,887			6,914			11,760			18,428
Discontinued operations:
Income (loss) from discontinued operations, net of income taxes		(134	)		—			2,145			147
Net income	$	3,753		$	6,914		$	13,905		$	18,575
Earnings per share:
Basic:
Income from continuing operations	$	0.28		$	0.49		$	0.85		$	1.31
Income (loss) from discontinued operations		(0.01	)		—			0.15			0.01
Net income	$	0.27		$	0.49		$	1.00		$	1.32
Diluted:
Income from continuing operations	$	0.28		$	0.49		$	0.84		$	1.30
Income (loss) from discontinued operations		(0.01	)		—			0.15			0.01
Net income	$	0.27		$	0.49		$	0.99		$	1.31
Weighted-Average Number Of Shares Outstanding:
Basic		13,910			14,121			13,844			14,065
Diluted		14,072			14,216			14,025			14,179

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WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

	December 31, 2006		September 30, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	1,656	$	173
Receivables, net		36,408		37,133
Other		5,013		7,888
Total current assets		43,077		45,194
Property and equipment, net		218,039		231,220
Intangible assets, net		104,950		115,574
Other noncurrent assets		4,213		4,190
Total assets	$	370,279	$	396,178
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	7,143	$	7,873
Accounts payable - trade		13,318		16,231
Other accrued liabilities and deferred revenues		22,725		27,053
Total current liabilities		43,186		51,157
Long-term debt, net of current maturities		150,069		148,926
Deferred taxes and related contingencies		23,513		27,369
Other long-term liabilities		7,640		9,047
Total liabilities		224,408		236,499
Shareholders’ equity:		145,871		159,679
Total liabilities and shareholders’ equity	$	370,279	$	396,178

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WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Nine Months Ended September 30,
	2006			2007
Operating Activities:
Net income	$	13,905		$	18,575
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		24,026			23,415
Landfill accretion expense		688			612
Amortization of debt issuance costs		411			303
Impairment of property, equipment and other assets		15			16
Gain on sale of property, equipment and other assets		(688	)		(917	)
Gain on sale of discontinued collection and disposal operations		(2,135	)		—
Stock compensation expense		452			637
Deferred income taxes		548			189
Change in fair value of commodity hedges		932			767
Provision for doubtful accounts		1,139			1,661
Changes in assets and liabilities, net of effects from acquisition and disposition of operations		(6,717	)		5,372
Net cash provided by operating activities		32,576			50,630
Investing Activities:
Acquisitions of operations		(5,763	)		(19,911	)
Purchases of property and equipment		(33,871	)		(26,258	)
Proceeds from sale of discontinued collection and disposal operations		16,352			—
Proceeds from sale of property, equipment and other assets		1,645			1,730
Other		(335	)		(296	)
Net cash used in investing activities		(21,972	)		(44,735	)
Financing Activities:
Proceeds from issuance of long-term debt		30,023			45,000
Principal payments of long-term debt		(37,542	)		(49,343	)
Payment of dividends		(3,887	)		(5,073	)
Principal payments of capital lease obligations		(395	)		(168	)
Financing costs		(582	)		—
Excess tax benefit from stock option exercises		263			275
Net proceeds from exercise of stock options		1,709			1,931
Net cash used in financing activities		(10,411	)		(7,378	)
Decrease in cash and cash equivalents		193			(1,483	)
Cash and cash equivalents, beginning of period		1,575			1,656
Cash and cash equivalents, end of period	$	1,768		$	173
Supplemental disclosures of cash flow information:
Cash paid for interest	$	7,592		$	7,992
Cash paid for income taxes	$	14,888		$	9,789

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EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)

	QUARTER ENDED
	9/30/06			9/30/07
REVENUE MARGINS
Operating expenses including cost of equipment sales		65.9	%		64.3	%
S G & A		12.1	%		12.8	%
Depreciation and amortization		9.3	%		7.9	%
Interest expense, (net)		2.8	%		2.9	%
Income from continuing operations (pre-tax)		10.4	%		12.3	%
Income tax expense		5.8	%		4.5	%
Income from continuing operations		4.6	%		7.8	%
SERVICE REVENUE MIX
Collection:
Industrial	$	22,983		$	23,004
Commercial		23,178			24,518
Residential		19,376			21,014
Disposal and transfer		12,209			12,743
Recycling service		1,161			1,101
Recycled commodity sales		1,421			1,440
Other		4,059			4,395
Total Service Revenue	$	84,387		$	88,215
OPERATING INCOME BEFORE DEPRECIATION, AMORTIZATION AND ACCRETION*
Operating income	$	11,064		$	13,441
Accretion		150			341
Depreciation and amortization		7,862			7,027
Operating income before depreciation, amortization and accretion	$	19,076		$	20,809
	YTD 06			YTD 07
CAPITAL EXPENDITURES DETAIL
Collection & Transportation	$	25,347		$	20,386
Landfill Development		8,524			5,872
Total capital expenditures	$	33,871		$	26,258
FREE CASH FLOW RECONCILIATION *
Net cash provided by operating activities	$	32,576		$	50,630
Less: Capital expenditures		(33,871	)		(26,258	)
Plus: Proceeds from disposal of assets		1,645			1,730
Free cash flow	$	350		$	26,102
	12/31/06			9/30/07
DEBT TO TOTAL CAPITAL
(includes capital leases)		51.9	%		49.6	%
TOTAL LIABILITIES TO EQUITY		1.5			1.5
DAYS SALES OUTSTANDING		34			32
				Q3 2007
SERVICE REVENUE GROWTH
Price					1.3	%
Volume					0.0	%
Energy surcharge					0.0	%
Total internal growth					1.3	%
Recycling commodities					0.0	%
Acquisitions					3.2	%
Total service revenue growth					4.5	%

* 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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