Waste Industries Usa 8-K WASTE INDUSTRIES USA, INC. Reports Fourth Quarter and Full Year 2007 Financial Results

Exhibit 99.1

WASTE INDUSTRIES USA, INC. Reports Fourth Quarter and Full Year 2007 Financial Results

Raleigh, NC, Tuesday, March 4, 2008 — Waste Industries USA, Inc. (NASDAQ: WWIN), a regional, non-hazardous solid waste services company, today reported preliminary financial results for the fourth quarter and full year ended December 31, 2007.

For the quarter ended December 31, 2007, revenue increased 4.4% to $84.7 million, compared to $81.1 million for the quarter ended December 31, 2006. The quarterly operating results were negatively impacted by costs related to the Company’s proposed going private transaction. Operating income for the fourth quarter 2007 decreased 16.1% to $10.0 million, compared to $12.0 million for the same period in 2006. Income from continuing operations for the fourth quarter 2007 was $5.1 million, or $0.36 per diluted share, a 2.5% decrease from income from continuing operations of $5.2 million, or $0.37 per diluted share, for the fourth quarter of 2006. Net income was $5.1 million, or $0.36 per diluted share, for the quarter ended December 31, 2007, compared to $5.4 million, or $0.38 per diluted share, for the same period in 2006.

The current period results were affected by the following:

- Professional fees were $1.7 million higher related to the proposed going private transaction ($1.2 million, net of income taxes, or $0.08 per diluted share); and

- A more favorable income tax rate of 33.2% for the current quarter due to FASB Interpretation No. 48 (“FIN 48”) and deferred tax adjustments compared to 47.1% for the prior year period, which was impacted by deferred tax adjustments.

For the year ended December 31, 2007, revenue increased 4.0% to $340.7 million, compared to $327.5 million for the same period in 2006. The 2007 operating results were negatively impacted by costs related to the Company’s proposed going private transaction. Operating income increased 17.2% to $47.4 million, compared to $40.4 million for the year ended December 31, 2006. Income from continuing operations was $23.5 million, or $1.66 per diluted share, a 38.5% increase from income from continuing operations of $17.0 million, or $1.21 per diluted share, for the year ended December 31, 2006. Income from discontinued operations (net of income taxes) was $0.2 million, or $0.01 per share, for the year ended December 31, 2007, compared to $2.3 million, or $0.16 per diluted share, for the same period in 2006, primarily due to a gain on sale of the Company’s Jacksonville, Florida landfill operation in April 2006. Net income was $23.7 million, or $1.67 per diluted share, for the year ended December 31, 2007, compared to $19.3 million, or $1.37 per diluted share, for the same period in 2006.

The total year results were affected by the following:

- Professional fees were $1.9 million higher related to the proposed going private transaction ($1.2 million, net of income taxes, or $0.08 per diluted share); and

- A more favorable income tax rate of 37.8% for 2007 due to FIN 48 and deferred tax adjustments compared to 45.9% for 2006 which was impacted by deferred tax adjustments.

Jim W. Perry, President and CEO of the Company, stated, “Our performance for the fourth quarter and 2007 was in line with our expectations. Going into 2008, we believe our operating fundamentals are well established which should help us deal with the current sluggish economy and our strong balance sheet should enable us to take advantage of any strategic growth opportunities.”

The Company will host a conference call to discuss its fourth quarter results on March 5, 2008 at 2:00 PM (Eastern Time). The call number is (877) 723-9519 and the confirmation number is 9954580. 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 March 19, 2008 and may be accessed by calling (888) 203-1112 and using confirmation number 9954580.

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.

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WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2006			2007			2006			2007
Revenues:
Service revenues	$	80,761		$	84,398		$	326,447		$	339,599
Equipment sales		358			260			1,098			1,069
Total revenues		81,119			84,658			327,545			340,668
Operating costs and expenses:
Operating (exclusive of depreciation and amortization shown below)		50,261			54,087			212,171			215,006
Cost of equipment sales		234			141			666			629
Selling, general and administrative		10,712			12,761			43,167			47,509
Depreciation and amortization		8,233			8,336			32,093			31,751
Gain on sale of property and equipment and other assets		(500	)		(707	)		(1,189	)		(1,624	)
Impairment of property and equipment and other assets		208			—			223			16
Total operating costs and expenses		69,148			74,618			287,131			293,287
Operating income		11,971			10,040			40,414			47,381
Interest expense		2,321			2,453			9,608			9,871
Interest income		(49	)		(42	)		(181	)		(126	)
Other		(192	)		(3	)		(418	)		(193	)
Total other expense, net		2,080			2,408			9,009			9,552
Income from continuing operations before income taxes		9,891			7,632			31,405			37,829
Income tax expense		4,662			2,532			14,416			14,301
Income from continuing operations		5,229			5,100			16,989			23,528
Discontinued operations:
Income from discontinued operations, net of income taxes		147			6			2,292			153
Net income	$	5,376		$	5,106		$	19,281		$	23,681
Earnings per share:
Basic:
Income from continuing operations	$	0.38		$	0.36		$	1.22		$	1.67
Income from discontinued operations		0.01			—			0.17			0.01
Net income	$	0.39		$	0.36		$	1.39		$	1.68
Diluted:
Income from continuing operations	$	0.37		$	0.36		$	1.21		$	1.66
Income from discontinued operations		0.01			—			0.16			0.01
Net income	$	0.38		$	0.36		$	1.37		$	1.67
Weighted-Average Number Of Shares Outstanding:
Basic		13,951			14,158			13,871			14,088
Diluted		14,145			14,244			14,043			14,196

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WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

	December 31, 2006		December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	1,656	$	4,361
Receivables, net		36,408		35,129
Other		5,013		12,332
Total current assets		43,077		51,822
Property and equipment, net		218,039		234,034
Intangible assets, net		104,950		118,766
Other noncurrent assets		4,213		4,411
Total assets	$	370,279	$	409,033
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	7,143	$	7,143
Accounts payable—trade		13,318		15,703
Other accrued liabilities and deferred revenues		22,725		28,165
Total current liabilities		43,186		51,011
Long-term debt, net of current maturities		150,069		157,926
Deferred taxes and related contingencies		23,513		27,121
Other long-term liabilities		7,640		9,586
Total liabilities		224,408		245,644
Shareholders’ equity:		145,871		163,389
Total liabilities and shareholders’ equity	$	370,279	$	409,033

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WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Twelve Months Ended December 31,
	2006			2007
Operating Activities:
Net income	$	19,281		$	23,681
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		32,220			31,751
Landfill accretion expense		824			727
Amortization of debt issuance costs		513			409
Impairment of property, equipment and other assets		223			16
Gain on sale of property, equipment and other assets		(1,189	)		(1,624	)
Gain on sale of discontinued collection and disposal operations		(2,282	)		(153	)
Stock compensation expense		612			867
Deferred income taxes		2,381			1,963
Change in fair value of commodity hedges		644			1,224
Provision for doubtful accounts		1,557			2,022
Changes in assets and liabilities, net of effects from acquisition and disposition of operations		(9,718	)		3,457
Net cash provided by operating activities		45,066			64,340
Investing Activities:
Acquisitions of operations		(6,190	)		(24,171	)
Purchases of property and equipment		(41,154	)		(36,886	)
Proceeds from sale of discontinued collection and disposal operations		16,354			270
Proceeds from sale of property, equipment and other assets		2,209			2,936
Increase in restricted cash		(728	)		(6,621	)
Other		(179	)		(109	)
Net cash used in investing activities		(29,688	)		(64,581	)
Financing Activities:
Proceeds from issuance of long-term debt		44,000			72,000
Principal payments of long-term debt		(55,245	)		(64,143	)
Payment of dividends		(5,283	)		(7,198	)
Principal payments of capital lease obligations		(441	)		(213	)
Financing costs		(579	)		(191	)
Excess tax benefit from stock option exercises		346			302
Net proceeds from exercise of stock options		1,905			2,389
Net cash provided by (used in) financing activities		(15,297	)		2,946
Increase in cash and cash equivalents		81			2,705
Cash and cash equivalents, beginning of period		1,575			1,656
Cash and cash equivalents, end of period	$	1,656		$	4,361
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest	$	9,042		$	10,699
Cash paid for income taxes	$	18,383		$	13,209

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EARNINGS RELEASE - SUPPLEMENTAL DATA (dollars in thousands)

	YEAR ENDED
REVENUE Margins	12/31/06		12/31/07
Operating expenses including cost of equipment sales		65.0%		63.3%
S G & A		13.2%		13.9%
Depreciation and amortization		9.8%		9.3%
Interest expense, net		2.9%		2.9%
Income from continuing operations (pre-tax)		9.6%		11.1%
Income tax expense		4.4%		4.2%
Income from continuing operations		5.2%		6.9%
SERVICE REVENUE MIX
Collection:
Industrial	$	89,933	$	88,241
Commercial		91,555		96,221
Residential		74,933		81,218
Disposal and transfer		46,285		48,375
Recycling service		4,719		4,422
Recycled commodity sales		3,941		4,739
Other		15,081		16,383
Total Service Revenue	$	326,447	$	339,599
OPERATING INCOME BEFORE DEPRECIATION, AMORTIZATION AND ACCRETION*
Operating income	$	40,414	$	47,381
Accretion		824		727
Depreciation and amortization		32,093		31,751
Operating income before depreciation, amortization and accretion	$	73,331	$	79,859

CAPITAL EXPENDITURES DETAIL	YTD 06			YTD 07
Collection & Transportation	$	29,432		$	22,244
Landfill Development		11,722			14,642
Total capital expenditures	$	41,154		$	36,886
FREE CASH FLOW RECONCILIATION *
Net cash provided by operating activities	$	45,066		$	64,340
Less: Capital expenditures		(41,154	)		(36,886	)
Plus: Proceeds from disposal of assets		2,209			2,936
Free cash flow	$	6,121		$	30,390

DEBT TO TOTAL CAPITAL	12/31/06	12/31/07
(includes capital leases)	51.9%	50.3%
TOTAL LIABILITIES TO EQUITY	1.5	1.5
DAYS SALES OUTSTANDING	34	28

SERVICE REVENUE GROWTH	Q4 2007	YTD 2007
Price	-0.1%	2.2%
Volume	-0.1%	-1.5%
Energy surcharge	1.7%	0.3%
Total internal growth	1.5%	1.0%
Recycling commodities	-0.2%	0.2%
Acquisitions	3.2%	2.8%
Total service revenue growth	4.5%	4.0%

* 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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