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EXHIBIT 99.2
WASTE CONNECTIONS REPORTS SECOND QUARTER EARNINGS OF $0.22 PER SHARE
EXCLUDING CHARGES, $.02 ABOVE CONSENSUS ESTIMATES
EPS INCREASES 89%, EBITDA INCREASES 178%
ROSEVILLE, CA, JULY 28, 1999 - Waste Connections, Inc. (NASDAQ: WCNX) today
announced second quarter earnings of $.22 per share before acquisition related
and stock compensation charges. Revenue for the second quarter of 1999 was $40.2
million, an 83.0% increase over revenue of $22.0 million in the second quarter
of 1998. Operating income for the quarter, excluding stock compensation and
acquisition related charges, increased 232.3% over the $2.7 million in the year
ago quarter to $9.0 million or 22.5% of revenues. Earnings per share on a
diluted basis for the quarter were $.22, excluding non-cash stock compensation
expense of $70,104 and acquisition related charges of $1.0 million, net of
taxes, on 19.4 million diluted shares. Diluted earnings per share was $.16.
EBITDA for the quarter increased 177.6% over the $4.4 million in the year ago
quarter to $12.1 million, or 30.1% of revenues. Results for the previous year
are restated to include the effects of mergers accounted for under the
pooling-of-interests method through June 30, 1999.
Ronald J. Mittelstaedt, Chairman and Chief Executive Officer, said, "The second
quarter results show the power of vertical integration with our recently
acquired landfills. EBITDA margins hit 30% and there is a significant amount of
additional volume within our collection network that can be internalized. The
second quarters record results clearly demonstrate Waste Connections' operating
strength and the impact of our strategy of focusing on secondary,
highly-exclusive markets. We have exceeded the expectations in terms of acquired
revenue for the quarter and the acquisition backlog is extremely strong. The
acquisitions closed during the second quarter included two landfills and one new
market entry. On Tuesday, we filed an additional acquisition shelf registration
statement which, when effective, will cover 6 million shares to allow us to
continue our acquisition program in the light of the volume of discussions with
potential acquisition candidates. At this juncture, almost every indicator of
our business is positive."
Waste Connections, Inc. is a regional, integrated, solid waste services company
that provides solid waste collection, transfer, disposal and recycling services
in secondary markets of the Western U.S. The Company serves more than 400,000
commercial, industrial and residential customers. Waste Connections, Inc. was
founded in September 1997 and is headquartered in Roseville, California.
THE MATTERS DISCUSSED IN THIS NEWS RELEASE INCLUDE CERTAIN FORWARD-LOOKING
STATEMENTS THAT INVOLVE SPECIFIC RISKS AND UNCERTAINTIES, WHICH COULD CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE FOWARD-LOOKING STATEMENTS,
INCLUDING THE RISKS AND UNCERTAINTIES DETAILED IN THE COMPANY'S FILINGS WITH
THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY MAKES NO COMMITMENT TO
DISCLOSE ANY REVISIONS TO FORWARD-LOOKING STATEMENTS, OR ANY FACTS, EVENTS OR
CIRCUMSTANCES AFTER THE DATE OF THIS RELEASE THAT MAY BEAR UPON FOWARD-LOOKING
STATEMENTS.
- financial tables attached -
CONTACT:
Waste Connections, Inc., (916) 772-2221
Steven F. Bouck
Chief Financial Officer
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WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1998 AND 1999
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
Three Months Ended
June 30,
1998(a) 1999
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Revenues $ 21,973 $ 40,219
Operating Expenses:
Cost of operations 15,576 24,805
Selling, general and administrative 2,032 3,297
Depreciation and amortization 1,645 3,079
Stock compensation 121 70
Acquisition related expenses -- 1,005
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Income from operations 2,599 7,963
Interest expense (696) (2,164)
Other income (expense), net 25 39
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Income before income tax provision 1,928 5,838
Income tax provision (765) (2,685)
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Net income before extraordinary item 1,163 3,152
Extraordinary item - extinguishment of debt, net (815) --
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of tax
Net Income 348 3,152
Redeemable convertible preferred stock accretion (345) --
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Net income applicable to common stockholders $ 3 $ 3,152
Basic net income per share $ 0.00 $ 0.18
Diluted net income per share $ 0.00(c) $ 0.16(b)
Weighted average basic shares outstanding 8,900,307 17,997,934
Weighted average diluted shares outstanding 11,112,687 19,373,132
Supplemental Information:
EBITDA $ 4,365 $ 12,117
(a) Restated to include the effects of mergers accounted for under the
pooling-of-interests method through June 30, 1999.
(b) Diluted earnings per share were $0.22 for the three months ended June
30, 1999 before acquisition related
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expenses ($1,005) and non-cash stock compensation expenses ($70).
(c) Proforma diluted earnings per share were $.12 for the three months ended
June 30, 1998 before stock compensation expense, extraordinary item, and
assuming conversion of the convertible preferred and redeemable common
stock.