Westway Group, Inc. Announces Third Quarter 2009 Financial Results

NEW ORLEANS, Nov. 9 /PRNewswire-FirstCall/ -- Westway Group, Inc. (OTC
Bulletin Board: WTWG) announced today the financial results for the
three-month period ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090529/DA24496LOGO)

Third Quarter Highlights

-- The results for both the Bulk Liquid Storage and Liquid Feed
Supplement
segments showed improvements in the third quarter over the previous
2009
quarterly pro forma results.
-- Launched a $3.8 million expansion of the Port Allen terminal facility,
located in Baton Rouge, Louisiana;
-- Named Steve Boehmer President of Westway Feed Products, LLC;
-- Completed $20 million acquisition of the storage assets, contractual
relationships, and property of Southside River-Rail Terminal, Inc.,
located in Cincinnati, Ohio;
-- Total bulk storage capacity reached approximately 350 million gallons
and the storage utilization rate averaged 95%;

-- Feed tonnage totaled 330,000, and Feed operating margin improved due
to
increased sales of higher margin products.

In commenting on the Company's performance, Peter Harding, CEO, stated, "we
are excited about the results of both the bulk liquid storage and liquid feed
supplements businesses in the first full quarter of consolidated operations as
part of Westway Group, Inc. Their financial results are in keeping with our
expectations, and they are reflective of management's commitment to improving
efficiency and long-term shareholder value."

"We have achieved several milestones during this quarter which are consistent
with Westway's strategy for growth through infill expansion of existing
facilities, development of new facilities, and acquisitions. In this regard,
we added 35 million gallons of capacity to our terminal business with
completion of the Southside River-Rail acquisition, and we also continued our
expansion program for the Baton Rouge terminal facility at Port Allen. Both
of these projects are expected to be accretive to our cash flows and earnings
stream in 2010. Our new development projects at Gray's Harbor in Washington
State and the phase 4 expansion of our Houston 1 facility are on schedule for
completion in the fourth quarter of this year. We are excited about the
future growth opportunities for Westway both in terms of our global footprint
as well as an increasing emphasis on relationship building through branding of
the Westway name and reputation for consistent, quality customer service."

Three-month Actual Results for the two operating segments of Westway
(operation for full 2009 third quarter)

3 Month Actual Ended September 30, 2009
---------------------------------------
Bulk Liquid Liquid Feed
Storage Supplement
---------------- ----------------
Revenue $17.6 Million $56.1 Million
Gross Profit (adjusted for
other operating costs
and expenses) $10.0 Million $7.1 Million
Gross Profit Margin 56.8% 12.7%

EBITDA (1) $7.9 Million $4.2 Million

In the third quarter, compared to second quarter pro forma results discussed
below, Bulk Liquid Storage revenue increased as a result of new business, and
this increased revenue was coupled with a decline in payroll expenses due to
management restructuring and the elimination of certain redundancies. Liquid
Feed Supplement revenue remained constant while margins on this revenue
improved in the third quarter 2009, due to increased sales of higher margin
products and a decline in expenses from management restructuring. Also, the
months of April through July are traditionally seasonal low months for our
Liquid Feed Supplements business, whereas the fall and winter months are
normally the strongest.

For the three-month period ended September 30, 2009, the actual results for
the operating segments are presented above compared to the pro forma results
for three-month period ended June 30, 2009 are presented below (as though
these businesses operated for a full quarter).

Three-month Pro forma Results for the two operating segments of Westway
(operation of the acquired storage and feed businesses for full 2009 second
quarter as if the businesses were acquired on April 1, 2009 instead of the
actual acquisition date of May 28, 2009)

3 Month Pro forma Ended June 30, 2009
---------------------------------------
Bulk Liquid Liquid Feed
Storage Supplement
---------------- ----------------
Revenue $16.9 Million $56.5 Million

Gross Profit (adjusted
for other operating
costs and expenses) $9.7 Million $4.5 Million

Gross Profit Margin 57.4% 8.0%

EBITDA (1) $7.7 Million $1.8 Million

Three-month Actual Consolidated Results-- Summary of results of operations of
two operating segments and the non-operating Corporate Segment.

3 Month Ended September 30
---------------------------
2009 2008
---- ----
Revenues 73,705 -
Gross profit (adjusted for other
operating costs and expenses) 17,071 -
EBITDA (2) 9,843 -

Net income applicable to common
stockholders 3,084 342
Earnings per share basic $0.05 $0.02
Earnings per share diluted $0.05 $0.01

Note 2 - Includes corporate segment results, including selling, general &
administrative expenses of $2.2 million.

The actual results for the three-month period ended September 30, 2008 consist
solely of Shermen WHC acquisition company--the non-operating special purpose
acquisition corporation-which was renamed Westway Group, Inc. on May 29, 2009.

Forward-Looking Statements. This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
We have based these forward-looking statements on our current expectations and
projections about future events. These forward-looking statements are subject
to known and unknown risks, uncertainties and assumptions about us that may
cause our actual results, levels of activity, performance or achievements to
be materially different from any future results, levels of activity,
performance or achievements expressed or implied by such forward-looking
statements. In some cases, you can identify forward-looking statements by
terminology such as "may," "should," "could," "would," "expect," "plan,"
"anticipate," "believe," "estimate," "continue," or the negative of such terms
or other similar expressions. Factors that might cause or contribute to such
a discrepancy include, but are not limited to, those described in our form
10-Q filed today and other SEC filings.

About Westway Group, Inc. Westway Group, Inc. ("Westway") is a leading
provider of bulk liquid storage and related value-added services and a leading
manufacturer and distributor of liquid animal feed supplements. Westway
operates an extensive global network of 25 operating facilities providing
approximately 350 million gallons of total bulk liquid storage shell capacity
and 37 facilities producing 1.7 million tons of liquid feed supplements
annually. Our bulk liquid storage business is a global business with
infrastructure that includes a network of terminals offering storage to
manufacturers and consumers of agricultural and industrial liquids, located at
key port and terminal locations throughout North America, Western Europe and
Asia. Our liquid feed supplements business produces liquid animal feed
supplements that are sold directly to end users and feed manufacturers,
primarily supplying the beef and dairy livestock industries.

Note 1-EBITDA, as used herein, is defined as income (loss) before income tax
benefit (provision) and equity in loss of unconsolidated subsidiaries, plus
depreciation plus net interest expense (which includes interest expense net of
interest income).

EBITDA is presented in this release because it is an important supplemental
measure of performance and is frequently used by securities analysts,
investors and other interested parties in the evaluation of businesses. Other
companies may calculate EBITDA differently.

EBITDA is not a measurement of financial performance under generally accepted
accounting principles in the United States, which is referred to as "U.S.
GAAP," and should not be considered as an alternative to cash flow from
operating activities or as a measure of liquidity or an alternative to net
income as an indicator of operating performance or any other measures of
performance presented in accordance with generally accepted accounting
principles. Because EBITDA is calculated before recurring cash charges,
including interest expense and taxes, and is not adjusted for capital
expenditures or other recurring cash requirements of the business, it should
not be considered as a measure of discretionary cash available to invest in
the growth of the business.

Income (Loss) Before Income Tax
Benefit (Provision) and Equity in
Unconsolidated Subsidiaries
Reconciliation
-----------------------------------------
Actual Pro Forma
3 months ended 3 months ended
September 30, 2009 June 30, 2009
Storage Feed Storage Feed
------- ---- ------- ----

Income (loss) before income
tax benefit (provision) and
equity in unconsolidated
subsidiaries $4,879 $3,142 $4,948 $850

Depreciation 2,977 1,003 2,770 984

Interest Expense 23 23 - -

EBITDA 7,879 4,168 7,718 1,834

Income (loss) before income tax
benefit (provision) and equity in
unconsolidated subsidiaries
reconciliation
------------------------------------
Actual Pro Forma
3 months ended 3 months ended
September 30, 2009 June 30, 2009
Consolidated Consolidated
------------ ------------
Income (loss) before income tax
benefit (provision) and equity
in unconsolidated subsidiaries 5,396 2,827
Depreciation 3,985 3,772
Interest Expense 462 1,164
EBITDA 9,843 7,763

SUMMARY OF SELECTED CONSOLIDATED
BALANCE SHEET ITEMS (in thousands)

As of As of
September 30, December 31,
2009 2008
(unaudited)
------------ --------

Property, plant and equipment 302,052 (3) -
Goodwill 97,675 (3) -
Net deferred income tax liability 61,511 (712)
Borrowings under credit facility 64,986 -
Stockholders' equity 294,594 80,512
Total Liabilities and Stock Equity $472,446 $139,377

Note 3- Reflects the preliminary estimate of the purchase price adjustment.

For more information for periods ending September 30, 2009 and September 30,
2008, please refer to the company's Form 10-Q, which is available on Westway's
website address at www.westway.com

SOURCE Westway Group, Inc.

Thomas A. Masilla, Jr., Chief Financial Officer of Westway Group, Inc.,
+1-504-636-4245