HOUSTON, April 27, 2011 (GLOBE NEWSWIRE) -- WCA Waste Corporation (Nasdaq:WCAA) announced today financial results for the quarter ended March 31, 2011.
For the first quarter of 2011:
- Revenue was $58.0 million, up 10.9% from $52.3 million in the first quarter of 2010.
- Net loss available to common stockholders was $0.08 per share while adjusted net loss available to common stockholders was $0.07 per share. This compares to a net loss of $0.10 per share and adjusted net loss of $0.08 per share for the same quarter in 2010.
- The quarter was negatively impacted by increased fuel costs of $1.2 million, $0.4 million of legal and accounting fees associated with acquisitions, and an estimated $0.3 million of integration costs associated with the Stoughton and Emerald Waste – Central Florida transactions.
- Severe winter weather conditions in several markets did cause some site closures, interruption of normal operations and as a result lost revenue.
Tom Fatjo, Jr., Chairman, CEO, stated, "Even factoring in the weather disruptions, the solid waste operations produced organic growth with positive price and MSW volumes. Also, special waste activity remains strong, providing further evidence that the economy, while slow growing, appears to be stable."
On February 15, 2011, we entered into an operating agreement and option to purchase Stoughton Recycling Technologies (SRT), which is a state of the art construction and demolition recycling facility and transfer station in Stoughton, Massachusetts. This facility is located three miles from the WCA-owned Champion City Recovery (CCR) transfer station and approximately 25 miles south of Boston, Massachusetts.
On February 28, 2011, WCA acquired certain assets from Emerald Waste Services, including a transfer station and three collection operations located in central Florida. The acquired operations consist of 117 residential, commercial and roll-off routes servicing 113,500 customers.
"We are excited to have completed the Stoughton and Emerald Waste – Central Florida transactions during the quarter. We are confident that once our integration is completed, these transactions will strengthen our operations in the Boston area and further expand our presence in the Florida markets," commented Tom Fatjo, Jr., Chairman, CEO.
In addition, we are conducting a strategic asset review with an eye on supporting targeted growth while managing leverage down. We are also reaffirming our 2011 revenue and EBITDA goals of $270 million and $61 million, respectively, despite the impact of extreme weather in some markets, higher fuel costs, professional fees and integration costs associated with the Stoughton and Emerald Waste – Central Florida transactions.
WCA Waste Corporation is an integrated company engaged in the transportation, processing and disposal of non-hazardous solid waste. The Company's operations currently consist of 25 landfills, 27 transfer stations/material recovery facilities and 29 collection operations located throughout Alabama, Arkansas, Colorado, Florida, Kansas, Massachusetts, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee and Texas. The Company's common stock is traded on the NASDAQ Stock Market under the symbol "WCAA."
The WCA Waste Corporation logo is available at
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 forward-looking statements can generally be identified as such because the context of the statement will include words such as "may," "annualized," "should," "outlook," "project," "intend," "seek," "plan," "believe," "anticipate," "expect," "estimate," "potential," "continue," or "opportunity," the negatives of these words, or similar words or expressions. The forward-looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Statements concerning "annualized" revenues are forward looking statements, are not audited or based on GAAP and are made based on estimations from information provided to us by the acquired companies and from other sources and estimates developed by us. In this press release we provide "annualized" estimates for acquired operations; in other presentations and reports, we may provide "annualized" estimates with respect to us and also separately with respect to one or more acquired businesses. In computing our revenue annualized estimates as of the end of any given period we generally take the average of monthly revenues of the companies that we acquired for a period that we believe to be reasonable as prior to acquisition. Actual revenues may or may not equal the estimated "annualized" number.
Our results will be subject to a number of operational and other risks, including the following: general economic conditions have impacted and may continue to impact our business; 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 are subject to a broad range of risks with respect to our acquisition activities and may be unable to successfully integrate acquired businesses or execute on our acquisition plans; 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.
We are subject to a number of risks with respect to our acquisition activities generally, and the recently completed Stoughton and Emerald Waste - Central Florida transactions, including the following: we may be unsuccessful in efficiently integrating the combined operations of our company and the Emerald Waste assets that we acquired or the Stoughton facility we are now operating; cash expenditures and capital commitments associated with our acquisition of Emerald Waste's Central Florida operations may create significant liquidity and cash flow risks for us, and we may incur substantial debt in order to satisfy our obligations; if we are unable to identify and successfully acquire and integrate additional waste collection operations in the central Florida markets that enable us to leverage the acquisition of the collection operations and the transfer station, the long-term benefits of the acquisition could be diminished; we do not hold the permits pursuant to which the Stoughton facility is authorized to operate nor do we own or lease the real property on which the Stoughton facility is located and any compliance or legal issues that may arise under such permits or real property arrangements are not completely within our control; we will be subject to commodity price risks with respect to the Stoughton facility which prices can experience substantial fluctuations; with the residual volumes from the Stoughton facility being transported by rail to our Sunny Farms landfill, we are subject to transportation risks associated with rail transportation; as shares of our common stock issued in the Emerald Waste acquisition and the Stoughton transaction become eligible for resale (which is not earlier than 6 months from the closing date), our stock price may suffer a significant decline as a result of the dilution caused by the increase in the number of our shares sold in the public market or market perception that the increased number of our shares available for sale will exceed the demand for our common stock. Furthermore, we may not be successful in identifying and consummating additional acquisition candidates and any acquisitions we make may not be successful.
We describe these and other risks in greater detail in the sections entitled "Risk Factors" and " – Cautionary Statement about Forward-Looking Statements" included in our Form 10-K for the year ended December 31, 2010 and our Form 10-Q for the quarter ended March 31, 2011, to which we refer you for additional information.
CONTACT: WCA Waste Corporation (NASDAQ:WCAA) Houston, Texas Tommy Fatjo 713-292-2400
