Date: June 29, 2007
Source: Waste Services, Inc.
Waste Services Announces Exchange of Assets
Waste Services, Inc. (Nasdaq: WSII) today announced that it has completed the simultaneous sale of its Texas operations and the acquisition of a transfer station and hauling company near Ft. Myers Florida with WCA Waste Corporation (Nasdaq: WCAA). Waste Services also received $23.7 million in cash in the transaction and has agreed to pay WCA a monthly amount of $125,000 for seven years in relation to the operation of the transfer station. Both parties have provided non-compete agreements for the respective market areas.
Waste Services intends to internalize all of the waste flow from the collection operation and transfer station in to its SLD landfill.
Waste Services has used $20 million of the cash proceeds to retire debt. The payments to WCA will be accounted for as new debt at the discounted present value of approximately $8.0 million.
David Sutherland-Yoest, Chairman and Chief Executive Officer of Waste Services, stated, "We are very pleased to have found another win-win situation that allows us to monetize the company's Texas assets at maximum value to our shareholders and obtain assets in Florida that meet our strategic goal of increasing waste flow into our landfills. Our U.S. operations are now totally focused in Florida where we will continue our efforts to increase market density and improve margins and free cash flow through the vertical integration of waste collection, transfer and disposal operations."
Waste Services, Inc., a Delaware corporation, is a multi-regional integrated solid waste services company that provides collection, transfer, disposal and recycling services in the United States and Canada. The company's web site is www.wasteservicesinc.com. Information on the company's web site does not form part of this press release.
WCA Waste Corporation Acquires Houston Area Landfill and Transfer Station
WCA Waste Corporation (Nasdaq: WCAA) announces today that it has acquired the Ft. Bend Regional Landfill (a 2,664 acre and approximately 46 million cubic yard site currently providing 50 years of life without expansion), a transfer station, collection routes and other assets in Houston, Texas from Waste Services, Inc. for cash and the exchange of WCA Waste Corporation's hauling and transfer operations in the Ft. Myers, Florida market.
Tom Fatjo, Chairman of WCA Waste Corporation, states, "This exchange of assets positions our company with a substantial opportunity for growth, increased profitability and increased internalization in Houston, Texas. We are adding this large municipal solid waste landfill and a permitted and operating transfer station to our existing Houston platform of three operating construction and demolition landfills, two permitted to be constructed transfer stations and approximately one-hundred collection vehicles surrounding the Houston metropolitan area. To have this network of assets in Houston, Texas, the fourth largest city in the United States, allows us to take advantage of many tuck-in hauling acquisitions and municipal contract opportunities."
WCA exchanged $23.7 million in cash, a transfer station and hauling operations in Ft. Myers, Florida for the Ft. Bend Landfill, the transfer station, related hauling operations, and a $10.5 million non-interest bearing note receivable from Waste Services, Inc.
WCA Waste Corporation is an integrated company engaged in the transportation, processing and disposal of non-hazardous solid waste. The Company's operations consists of twenty-four landfills, twenty-four transfer stations/material recovery facilities and twenty-seven collection operations located throughout Alabama, Arkansas, Colorado, Florida, Kansas, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. The Company's common stock is traded on the NASDAQ National Market System under the symbol "WCAA."
Safe Harbor for Forward-Looking Statements
This press release may contain statements that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. This is true of our description of our acquisition strategy and our capital plan (and the effects of such strategy and plan) for example. Such statements include, but are not limited to, plans, objectives, expectations, intentions and other statements that are not historical facts.
All such statements are based upon the current beliefs and expectations of WCA's management and are subject to significant risks and uncertainties. Some of those risks and uncertainties have been more fully described in "Risk Factors and Cautionary Statement about Forward-Looking Statements" in WCA's Annual Report on Form 10-K with respect to the year ended December 31, 2006 and its Quarterly Report on Form 10-Q with respect to the quarterly period ending on March 31, 2007. Please consider these factors carefully in evaluating the forward-looking statements and do not place undue reliance on such forward-looking statements. 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.
For more information, contact:
WCA Waste Corporation, Houston, Texas