WCA Waste Corporation Announces Results for the Third Quarter Ended September 30,...

WCA Waste Corporation Announces Results for the Third Quarter Ended September
30, 2011

-- Revenue for the third quarter increased 25.5% over the third quarter of
2010
-- Positive pricing continues with a 1.7% increase during the quarter
-- Positive volume returns with a 3.0% increase during the quarter
-- Adjusted net income available to common shareholders was $0.02 per share
for the quarter

HOUSTON, Oct. 26, 2011 (GLOBE NEWSWIRE) -- WCA Waste Corporation (Nasdaq:WCAA)
announced today financial results for the quarter ended September 30, 2011.

For the third quarter of 2011:

-- Revenue was $74.4 million, up 25.5% from $59.3 million in the third
quarter of 2010.
-- Net loss available to common stockholders was $0.03 per share while
adjusted net income available to common stockholders was $0.02 per
share, adjusting for the write-off of $1.7 million due to the early
extinguishment of $49 million of remaining principal amount of our 9.25%
senior secured notes in July 2011. This compares to a net loss available
to common stockholders of $0.02 per share and adjusted net loss
available to common stockholders of $0.01 per share for the same quarter
in 2010. Please see Non-GAAP Financial Measures below for a summary of
the noted adjustments.

For the first nine months of 2011:

-- Revenue was $205.7 million, up 19.7% from $171.9 million in 2010.
-- Net loss available to common stockholders was $0.24 per share while
adjusted net loss available to common stockholders was $0.06 per share.
This compares to a net loss available to common stockholders of $0.10
per share and adjusted net loss available to common stockholders of
$0.08 per share during the same period of 2010. Please see Non-GAAP
Financial Measures below for a summary of the noted adjustments.

Tom Fatjo, Jr., Chairman, CEO stated, "The third quarter revenue and earnings
growth is a strong indication of the underlying strength of WCA's operations.
Adjusted net income available to common shareholders was $0.02 per share for the
quarter. Internal growth of 4.7% reflects a renewed growth trend for the
industry."

WCA Waste Corporation is an integrated company engaged in the collection,
transportation, processing and disposal of non-hazardous solid waste. The
Company's operations currently consist of 25 landfills, 29 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
http://www.globenewswire.com/newsroom/prs/?pkgid=1736

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 "trend," "may," "annualized," "should," "outlook," "project," "intend,"
"seek," "plan," "believe," "anticipate," "expect," "estimate," "potential,"
"continue," "goal," 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.

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. In addition, we are subject to a number of risks with
respect to our acquisition activities generally, including the following: we may
be unsuccessful in efficiently integrating the combined operations of our
company and the Emerald Waste assets that we acquired in the first quarter of
2011 or the Stoughton facility we are now operating and 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.
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 Annual Report on Form 10-K for the year ended December 31, 2010
and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011,
to which we refer you for additional information.

WCA Waste Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

--------------------
----------------------

2011 2010 2011 2010

--------- --------- ----------
----------

Revenue $ 74,399 $ 59,279 $ 205,666 $
171,881
Expenses:

Cost of services 53,764 42,055 150,837
123,458
Depreciation and amortization 9,060 7,623 24,960
22,682
Merger and acquisition related

expenses 2 38 439
172
General and administrative 3,352 2,887 10,115
8,571

Gain on sale of assets (132) (7) (190)
(896)
--------- --------- ----------
----------

66,046 52,596 186,161
153,987
--------- --------- ----------
----------
Operating income 8,353 6,683 19,505
17,894
Other income (expense):

Interest expense, net (4,994) (4,811) (15,370)
(14,190)
Write-off of deferred financing

costs -- -- (157)
(184)
Loss on early extinguishment of

debt (1,722) -- (5,797)
--

Impact of interest rate swap -- (47) --
(231)
--------- --------- ----------
----------

(6,716) (4,858) (21,324)
(14,605)
--------- --------- ----------
----------

Income (loss) before income taxes 1,637 1,825 (1,819)
3,289

Income tax provision (1,113) (1,042) (39)
(1,932)
--------- --------- ----------
----------
Net income (loss) 524 783 (1,858)
1,357
Accrued payment-in-kind dividend

on preferred stock (1,193) (1,138) (3,524)
(3,358)
--------- --------- ----------
----------
Net loss available to common

stockholders $ (669) $ (355) $ (5,382) $
(2,001)
========= ========= ==========
==========

PER SHARE DATA (Basic and

diluted):

Net loss available to common

stockholders

-- Basic $ (0.03) $ (0.02) $ (0.24) $
(0.10)
========= ========= ==========
==========

-- Diluted $ (0.03) $ (0.02) $ (0.24) $
(0.10)
========= ========= ==========
==========

WEIGHTED AVERAGE SHARES

OUTSTANDING (Basic) 22,670 19,635 22,060
19,580
--------- --------- ----------
----------
WEIGHTED AVERAGE SHARES

OUTSTANDING (Diluted) 22,670 19,635 22,060
19,580
--------- --------- ----------
----------

Non-GAAP Financial Measures

--------------------------------------------------------------------------------
-------------------------------------

Our management evaluates our performance based on non-GAAP measures, of which
the primary performance measure is
adjusted EBITDA. EBITDA, as commonly defined, refers to earnings before
interest, taxes, depreciation and
amortization. Our adjusted EBITDA consists of earnings (net income or loss)
available to common stockholders before
preferred stock dividend, interest expense (including write-off of deferred
financing costs and debt discount),
(gain) loss on early extinguishment of debt, impact of interest rate swap
agreements, income tax expense,
depreciation and amortization, impairment of goodwill, net (gain) loss on
early disposition of notes
receivable/payable, and merger and acquisition related expenses. We also use
these same measures when evaluating
potential acquisition candidates.

We believe that adjusted EBITDA is useful to an investor in evaluating our
operating performance because:
* it is widely used by investors in our industry to measure a company's
operating performance without regard to items
such as interest expense, depreciation and amortization, which can vary
substantially from company to company
depending upon accounting methods and book value of assets, financing
methods, capital structure and the method by
which assets were acquired;

* it helps investors more meaningfully evaluate and compare the results of our
operations from period to period by
removing the impact of our capital structure (primarily interest charges from
our outstanding debt and the impact of
our interest rate swap agreements and payment-in-kind dividend) and asset
base (primarily depreciation and
amortization of our landfills and vehicles) from our operating results; and

* it helps investors identify items that are within our operational control.
Depreciation charges, while a component
of operating income, are fixed at the time of the asset purchase in
accordance with the depreciable lives of the
related asset and as such are not a directly controllable period operating
charge.

Our management uses adjusted EBITDA:

* as a measure of operating performance because it assists us in comparing our
performance on a consistent basis as it
removes the impact of our capital structure and asset base from our operating
results;
* as one method to estimate a purchase price (often expressed as a multiple of
EBITDA or adjusted EBITDA) for solid
waste companies we intend to acquire. The appropriate EBITDA or adjusted
EBITDA multiple will vary from acquisition
to acquisition depending on factors such as the size of the operation, the
type of operation, the anticipated growth
in the market, the strategic location of the operation in its market as well
as other considerations;
* in presentations to our board of directors to enable them to have the same
consistent measurement basis of operating
performance used by management;

* as a measure for planning and forecasting overall expectations and for
evaluating actual results against such
expectations;

* in evaluations of field operations since it represents operational
performance and takes into account financial
measures within the control of the field operating units;

* as a component of incentive cash and restricted stock bonuses paid to our
executive officers and other employees;
* to assess compliance with financial ratios and covenants included in our
credit agreements; and
* in communications with investors, lenders, and others concerning our
financial performance.

The following presents a reconciliation of net loss available to common
stockholders to our
adjusted EBITDA (in thousands):

Three Months Ended
Nine Months Ended
September 30,
September 30,
----------------------
----------------------

2011 2010
2011 2010
---------- ----------
---------- ----------

Net loss available to common stockholders $ (669) $ (355) $
(5,382) $ (2,001)
Accrued payment-in-kind dividend on preferred

stock 1,193 1,138
3,524 3,358
Depreciation and amortization 9,060 7,623
24,960 22,682
Interest expense, net 4,994 4,811
15,370 14,190
Write-off of deferred financing costs -- --
157 184
Loss on early extinguishment of debt 1,722 --
5,797 --
Impact of interest rate swap -- 47
-- 231
Income tax provision 1,113 1,042
39 1,932

Merger and acquisition related expenses 2 38
439 172
---------- ----------
---------- ----------

Adjusted EBITDA $ 17,415 $ 14,344 $
44,904 $ 40,748
========== ==========
========== ==========
Adjusted EBITDA as a percentage of revenue 23.4% 24.2%
21.8% 23.7%

The following table presents a reconciliation of net loss available to common
stockholders to
adjusted net income (loss) available to common stockholders to exclude
write-off of deferred
financing costs, loss on early extinguishment of debt, impact of interest
rate swap
agreements, merger and acquisition related expenses, and tax impact of vested
restricted
shares (in thousands, except per share amounts). Management believes that
this non-GAAP
measure is useful to an investor because the excluded items are not
representative of our
on-going operational performance. Per share information of the adjusted net
income (loss)
available to common stockholders is also shown below:

Adjusted net income (loss) available to common

stockholders to exclude write-off of deferred

financing costs, loss on early extinguishment

of debt, impact of interest rate swap Three Months Ended
Nine Months
agreements, merger and acquisition related September 30,
Ended September 30,
----------------------
----------------------
expenses, tax impact of vested restricted

shares: 2011 2010
2011 2010
---------- ----------
---------- ----------

Net loss available to common stockholders $ (669) $ (355) $
(5,382) $ (2,001)
Write-off of deferred financing costs, net of

tax -- --
75 99
Loss on early extinguishment of debt, net of

tax 1,119 --
3,768 --
Impact of interest rate swap, net of tax -- 41
-- 140
Merger and acquisition related expenses, net of

tax (9) 44
210 119

Tax impact of vested restricted shares -- 1
-- 132
---------- ----------
---------- ----------
Adjusted net income (loss) available to common

stockholders $ 441 $ (269) $
(1,329) $ (1,511)
========== ==========
========== ==========

PER SHARE DATA (Basic and diluted):

Net loss available to common stockholders $ (0.03) $ (0.02) $
(0.24) $ (0.10)
Write-off of deferred financing costs, net of

tax -- --
0.00 0.00
Loss on early extinguishment of debt, net of

tax 0.05 --
0.17 --
Impact of interest rate swap, net of tax -- 0.00
-- 0.01
Merger and acquisition related expenses, net of

tax (0.00) 0.01
0.01 0.00

Tax impact of vested restricted shares -- 0.00
-- 0.01
---------- ----------
---------- ----------
Adjusted net income (loss) available to common

stockholders to exclude write-off of deferred

financing costs, loss on early extinguishment

of debt, impact of interest rate swap

agreements, merger and acquisition related

expenses, tax impact of vested restricted

shares:

-- Basic $ 0.02 $ (0.01) $
(0.06) $ (0.08)
========== ==========
========== ==========

-- Diluted $ 0.02 $ (0.01) $
(0.06) $ (0.08)
========== ==========
========== ==========

WEIGHTED AVERAGE SHARES OUTSTANDING (Basic) 22,670 19,635
22,060 19,580
---------- ----------
---------- ----------

WEIGHTED AVERAGE SHARES OUTSTANDING (Diluted) 22,934 19,635
22,060 19,580
---------- ----------
---------- ----------

These non-GAAP measures may not be comparable to similarly titled measures
employed by other
companies and are not measures of performance calculated in accordance with
GAAP. They should
not be considered in isolation or as substitutes for operating income, net
income or loss,
cash flows provided by operating, investing and financing activities, or
other income or cash
flow statement data prepared in accordance with GAAP.

Supplemental Disclosures

-------------------------------------------------------------------------------
(Dollars in millions unless otherwise indicated)

Three Months Ended Three Months Ended

September 30, 2011 September 30, 2010

------------------------
----------------------
Revenue Breakdown:

Collection $ 40.6 47.2% $ 31.4 44.9%

Disposal 28.6 33.3% 25.9 37.0%

Transfer 11.3 13.2% 9.2 13.1%

Other 5.4 6.3% 3.5 5.0%

--------- -------- --------- ------

Total 85.9 100.0% 70.0 100.0%

Intercompany eliminations (11.5) (10.7)

--------- ---------

Total reported revenue $ 74.4 $ 59.3

========= =========

Internalization of Disposal:

Three months ended September

30, 2011 68.2%

-------------------------------------------------------------------------------

Nine Months Ended Nine Months Ended

September 30, 2011 September 30, 2010

------------------------
----------------------
Revenue Breakdown:

Collection $ 114.9 48.1% $ 91.9 45.4%

Disposal 77.3 32.4% 74.2 36.7%

Transfer 31.7 13.3% 26.8 13.3%

Other 14.9 6.2% 9.3 4.6%

--------- -------- --------- ------

Total 238.8 100.0% 202.2 100.0%

Intercompany eliminations (33.1) (30.3)

--------- ---------

Total reported revenue $ 205.7 $ 171.9

========= =========

Internalization of Disposal:

Nine months ended September

30, 2011 68.3%

-------------------------------------------------------------------------------

Three Months Ended Nine Months Ended

September 30, September 30,

2011 vs. 2010 2011 vs. 2010

------------------------
----------------------
Revenue Growth (Decline):

Volume $ 1.8 3.0% (a) $ (1.3) -0.7%
(a)
Price 1.0 1.7% (a) 5.2 3.0%
(a)
Fuel surcharge 0.9 1.6% (a) 2.8 1.6%
(a)
Acquisitions 11.4 19.2% (a) 27.8 16.2%
(a)

Sale of Jonesboro assets -- 0.0% (0.7) -0.4%

--------- -------- (a) --------- ------
(a)

Total revenue growth $ 15.1 $ 33.8

========= 25.5% (a) ========= 19.7%
(a)

(a) Percentages are

calculated based on dollar

amounts rounded in

thousands.

-------------------------------------------------------------------------------

September 30, 2011

-------------------

Debt-to-Capitalization:

Long-term debt including

current maturities $ 280.6

Total equity including

preferred stock 177.6

---------

Total capitalization $ 458.2

=========

Debt-to-total

capitalization 61.2%

Net Debt-to-Capitalization:

Long-term debt including

current maturities $ 280.6

Cash on hand (4.7)

---------

Net debt 275.9

Total equity including

preferred stock 177.6

---------

Total capitalization $ 453.5

=========

Net debt-to-total

capitalization 60.8%

-------------------------------------------------------------------------------

The information below summarizes costs associated with the debt refinancing

activities during the second and third quarters of 2011:

Q2 Q3
-------- -----------------
Loss on early extinguishment

of debt $ 4,075 $ 1,722

Write-off of deferred

financing costs associated

with credit facility

amendment 157 --

Interest expense from

carrying untendered senior

notes 298 (1) 99
(1)
Less: reduction of interest

expense from paying down

revolver (91) (30)

-------- (2) -----------------
(2)

Total pre-tax costs $ 4,439 $ 1,791

======== =================

(1) $100.969 million of the $150 million senior notes due 2014
were tendered as of June 6, 2011, leaving $49.031 million
untendered. Q2 interest expense for the untendered senior notes
is calculated for 24 days from June 7 to June 30, 2011. Q3
interest expense is calculated for 8 days from July 1 to July 8,
2011.
(2) Cash temporarily freed up by the $49.031 million untendered
senior notes was used to pay down the revolver credit facility.
Q2 reduction of revolver interest expense is calculated for 24
days from June 7 to June 30, 2011. Q3 reduction of interest
expense is calculated for 8 days from July 1 to July 8, 2011.

CONTACT: WCA Waste Corporation (NASDAQ:WCAA)
Houston, Texas
Tommy Fatjo, 713-292-2400