Exhibit 99.1
WCA Waste Corporation Reports a 44% Increase in Revenue for the First Quarter
HOUSTON--(BUSINESS WIRE)--April 28, 2005--WCA Waste Corporation
(NASDAQ:WCAA) announced today financial results for the first quarter of 2005.
Revenue for the three months ended March 31, 2005 was $22.9 million, a 44%
increase over the $15.9 million reported for the same period in 2004. Net income
for the first quarter was $708,000, or $0.05 per share on 15,326,000 fully
diluted shares outstanding. This represents a 51% increase in net income over
the $469,000 or $0.06 per share on 8,000,000 fully diluted shares outstanding
that was reported for the same three month period of 2004. The increase in fully
diluted shares outstanding is primarily a result of the additional 6.6 million
shares issued in connection with WCA's initial public offering completed on June
22, 2004 and 774,000 shares issued as partial consideration for certain
acquisitions completed since becoming a public company.
Thus far in 2005, WCA has acquired three landfills, two transfer stations,
two material recovery facilities and one collection company.
Tom Fatjo, Jr., Chairman of WCA Waste Corporation stated, "We are excited
about the results reported for the first quarter of 2005. Since completing our
initial public offering we have successfully completed nine acquisitions. Our
current revenue run-rate is in excess of $100 million which represents more than
a 50% increase in revenue since completing our initial public offering in June
2004."
WCA Waste Corporation is an integrated company engaged in the
transportation, processing and disposal of non-hazardous solid waste. The
Company's operations consist of seventeen landfills, fifteen transfer stations,
three material recovery facilities and twenty collection operations located
throughout Alabama, Arkansas, Kansas, Missouri, North Carolina, South Carolina,
Tennessee and Texas. The Company's common stock is traded on the NASDAQ National
Market System under the symbol "WCAA."
RISK FACTORS AND CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This press release and other communications, such as conference calls,
presentations, statements in public filings, other press releases, include
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities and Exchange Act of 1934.
Forward-looking statements generally include discussions and descriptions other
than historical information. These statements can generally be identified as
such because the context of the statement will include words such as "may,"
"will," "should," "outlook," "project," "intend," "seek," "plan," "believe,"
"anticipate," "expect," "estimate," "potential," "continue," or "opportunity,"
the negatives of these words, or similar words or expressions. Similarly,
statements that describe our plans, objectives, goals, expectations or
intentions and other statements that are not historical facts are
forward-looking statements. Descriptions of strategy and "run rates" are also
forward-looking statements. This is true of our description of our acquisition
strategy and the benefits of any acquisition or potential acquisition, for
example. 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 to reflect subsequent events or
circumstances.
Forward-looking statements are based upon the current beliefs and
expectations of WCA's management and are subject to significant risks and
uncertainties. Since WCA's business, operations and strategies are subject to a
number of risks, uncertainties and other factors, actual results may differ
materially from those described in the forward-looking statements. Some of the
risks and uncertainties have been more fully described in "Risk Factors and
Cautionary Statement about Forward-Looking Statements" in our Annual Report on
Form 10-K for the year-ended December 31, 2004.
As to acquisitions and acquisition strategies, on which our future
financial performance will significantly depend, risks and uncertainties
include, without limitation: we may be unable to identify, complete or integrate
future acquisitions successfully; we compete for acquisition candidates with
other purchasers, some of which have greater financial resources and may be able
to offer more favorable terms; revenue and other synergies from acquisitions may
not be fully realized or may take longer to realize than expected; we may not be
able to improve internalization rates by directing waste volumes from acquired
businesses to our landfills for regulatory, business or other reasons;
businesses that we acquire may have unknown liabilities and require unforeseen
capital expenditure; changes or disruptions associated with making acquisitions
may make it more difficult to maintain relationships with customers of the
acquired businesses; in connection with financing acquisitions, we may incur
additional indebtedness, or may issue additional shares of our common stock
which would dilute the ownership percentage of existing stockholders; and rapid
growth may strain our management, operational, financial and other resources.
Moreover, our results will be subject to a number of operational and other
risks, including the following: we may not be successful in expanding the
permitted capacity of our current or future landfills; our business is capital
intensive, requiring ongoing cash outlays that may strain or consume our
available capital; increases in the costs of disposal, labor and fuel could
reduce operating margins; increases in costs of insurance or failure to maintain
full coverage could reduce operating income; we may be unable to obtain
financial assurances necessary for our operations; we are subject to
environmental and safety laws, which restrict our operations and increase our
costs, and may impose significant unforeseen liabilities; we compete with large
companies and municipalities with greater financial and operational resources,
and we also compete with alternatives to landfill disposal; covenants in our
credit facilities and the instruments governing our other indebtedness may limit
our ability to grow our business and make capital expenditures; changes in
interest rates may affect our results of operations; a downturn in U.S. economic
conditions or the economic conditions in our markets may have an adverse impact
on our business and results of operations; and our success depends on key
members of our senior management, the loss of any of whom could disrupt our
customer and business relationships and our operations.
WCA Waste Corporation
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended
March 31,
-----------------------
2005 2004
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(In thousands, except
per share amounts)
Revenue $22,885 $15,891
Expenses:
Cost of services 15,746 10,562
Depreciation and amortization 2,838 1,933
Accretion expense 38 68
General and administrative:
Stock-based compensation - 30
Other general and administrative 1,746 1,252
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20,368 13,845
----------- ----------
Operating income 2,517 2,046
Other income (expense):
Interest expense, net (1,352) (1,267)
Other 4 1
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(1,348) (1,266)
----------- ----------
Income before income taxes 1,169 780
Income tax (provision) benefit (461) (311)
----------- ----------
Net income $708 $469
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PER SHARE DATA (Basic and diluted):
----------- ----------
Net income $0.05 $0.06
=========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic) 15,305 8,000
----------- ----------
WEIGHTED AVERAGE SHARES OUTSTANDING (Diluted) 15,326 8,000
----------- ----------
Non-GAAP Financial Measure
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Three Months Ended
March 31,
-----------------------
EBITDA 2005 2004
----------- ----------
Total EBITDA $5,359 $3,980
Less: Depreciation and amortization 2,838 1,933
Less: Interest expense, net 1,352 1,267
Less: Tax expense 461 311
----------- ----------
Net Income $708 $469
=========== ==========
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In addition to disclosing financial results in accordance with
generally accepted accounting principles (GAAP), the Company also
discloses EBITDA which is a non-GAAP measure.
While this measure is not calculated or presented in accordance with
GAAP, we believe that this supplemental financial measure is useful in
determining:
-- the financial performance of our assets without regard to
financing methods, capital structures or historical cost
basis;
-- our compliance with certain financial covenants included in
our debt agreements.
-- the ability of our assets to generate cash sufficient to pay
interest on our credit facilities;
-- our operating performance and return on invested capital as
compared to those of other companies in the non-hazardous
solid waste management business, without regard to financing
methods and capital structure; and
Management uses EBITDA to evaluate the operations of its geographic
operating areas. Furthermore, we believe this information is helpful
in evaluating similar companies with differing capital structures.
While depreciation and amortization are operating costs under GAAP, we
believe these expenses primarily represent the allocation of costs
associated with long-lived assets acquired or constructed in prior
years.
This non-GAAP measure should not be considered an alternative to net
income, net income per share, operating income, cash flow from
operating activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. The measures above
exclude some, but not all, items that affect net income and operating
income, and these measures may vary among other companies. Therefore,
the measures above may not be comparable to similarly titled measures
of other companies.
Supplemental Disclosures
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(Dollars in millions)
Three Months Ended
March 31, 2005
---------------------
Revenue Breakdown:
Collection $15.5 54.2%
Disposal 9.4 32.9%
Transfer 3.2 11.2%
Other 0.5 1.7%
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Total 28.6 100.0%
Intercompany eliminations (5.7)
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Total reported revenue $22.9
==========
Internalization of Disposal:
Three Months ended March 31, 2005 78.8%
Debt to Capitalization:
Long-term debt including current maturities $85.1
Total Equity 80.5
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Total capitalization $165.6
Debt-to-total capitalization 51.4%
CONTACT: WCA Waste Corporation, Houston
Tommy Fatjo, 713-292-2400