Press Release

Waste Connections Reports Fourth Quarter Results and Provides 2011 Outlook

FOLSOM, CA, Feb 08, 2011 (MARKETWIRE via COMTEX) -- Waste Connections, Inc. (NYSE: WCN)

--  Q4 revenue of $336.0 million, up 8.4%, and operating margins above
    expectations
--  Q4 GAAP EPS of $0.31 and adjusted EPS* of $0.32, up 33.3% over prior
    year period
--  Full year revenue of $1.32 billion, up 10.8%, and adjusted EPS* of
    $1.24, up 26.5%
--  Full year net cash provided by operating activities of $328.4 million
--  Full year free cash flow* of $212.5 million, or 16.1% of revenue
--  Repurchased almost 6% of outstanding common stock during the year
--  Initiated regular quarterly cash dividend of $0.075 per share
--  Expects continuing revenue, operating margin and free cash flow growth
    in 2011

Waste Connections, Inc. (NYSE: WCN) today announced its results for the fourth quarter of 2010. Revenue totaled $336.0 million, an 8.4% increase over revenue of $309.9 million in the year ago period. Operating income was $67.7 million, or 20.2% of revenue, versus $58.9 million in the fourth quarter of 2009. Net income attributable to Waste Connections in the quarter was $36.1 million, or $0.31 per share on a diluted basis of 115.3 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $23.3 million, or $0.19 per share on a diluted basis of 119.9 million shares. Shares and per share numbers reflect a three-for-two stock split effective November 12, 2010.

Adjusted net income attributable to Waste Connections in the quarter was $36.7 million*, or $0.32 per share*, adjusting for acquisition-related costs expensed due to the implementation of accounting guidance for business combinations effective January 1, 2009. Adjusted net income attributable to Waste Connections in the prior year period was $29.3 million*, or $0.24 per share*, adjusted primarily for costs associated with the early termination of certain interest rate swaps.

Non-cash costs for equity-based compensation, amortization of acquisition-related intangibles, and amortization of debt discount related to convertible debt instruments in connection with the adoption of accounting guidance on January 1, 2009, were $6.6 million ($4.1 million net of taxes, or approximately $0.04 per share) in the quarter compared to $7.2 million ($4.5 million net of taxes, or approximately $0.04 per share) in the year ago period.

"Increasing disposal volumes, record recycled commodity values, strong core pricing, and a stable cost structure drove results above expectations throughout 2010. Adjusted operating income before depreciation and amortization* as a percentage of revenue expanded more than 100 basis points in 2010 over the prior year, and adjusted EPS* increased 26.5%. We generated record free cash flow during the year, remained disciplined in our acquisition strategy, and returned approximately 6% of market cap to shareholders," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "We already are well positioned for continuing margin expansion, increasing free cash flow, and double digit growth in earnings per share in 2011; any volume growth from an improving economy, continuation of current recycled commodity prices, or acquisitions completed during the year should provide further upside to our outlook provided below. We also remain committed to repurchasing between four and five percent of outstanding shares during the year and expect to increase the amount of the quarterly cash dividend later in the year."

Mr. Mittelstaedt added, "Our strategic focus on exclusive and secondary markets, unique corporate culture, and discipline in deploying capital, have produced a differentiated asset mix within our industry and differentiated financial performance."

For the year ended December 31, 2010, revenue was $1.32 billion, a 10.8% increase over revenue of $1.19 billion in the year ago period. Operating income was $272.4 million, versus $230.7 million for the same period in 2009. Net income attributable to Waste Connections for the year ended December 31, 2010, was $135.1 million, or $1.16 per share on a diluted basis of 116.9 million shares. In the year ago period, the Company reported net income attributable to Waste Connections of $109.8 million, or $0.91 per share on a diluted basis of 120.5 million shares. Adjusted net income attributable to Waste Connections for the year ended December 31, 2010, was $145.0 million*, or $1.24 per share*, compared to $117.9 million*, or $0.98 per share* in the year ago period.

For the year ended December 31, 2010, non-cash costs for equity-based compensation, amortization of acquisition-related intangibles, loss on the early redemption of the 2026 Notes (net of make-whole payment), and amortization of debt discount related to convertible debt instruments in connection with the adoption of accounting guidance on January 1, 2009, were $29.4 million ($18.2 million net of taxes, or approximately $0.16 per share), compared to $27.0 million ($16.9 million net of taxes, or approximately $0.14 per share) in the year ago period.

2011 OUTLOOK

Waste Connections also announced its outlook for 2011, which assumes no change in the current economic environment. The Company's outlook excludes the impact of any additional acquisitions and expensing of acquisition-related transaction costs. And as noted above, any volume growth from an improving economy or continuation of current recycled commodity prices should provide further upside to this outlook.

The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic SEC filings. Certain components of the outlook for 2011 are subject to quarterly fluctuations.

--  Revenue is estimated to be approximately $1.375 billion.
--  Depreciation expense is estimated to be approximately 10.0% of revenue.
--  Amortization expense for acquisition-related intangibles is estimated
    to be approximately 1.0% of revenue.
--  Closure and post-closure accretion expense is estimated to be
    approximately 0.15% of revenue.
--  Operating income is estimated to be approximately 21.5% of revenue.
--  Net interest expense is estimated to be approximately $36.5 million.
--  Effective tax rate is expected to be approximately 39.0%.
--  Net income attributable to noncontrolling interests is estimated to
    reduce net income by approximately $1.2 million.
--  Net cash provided by operating activities is estimated to be
    approximately 26.0% of revenue.
--  Capital expenditures are estimated to range between $130 million and
    $135 million.

CONFERENCE CALL

Waste Connections will be hosting a conference call related to fourth quarter results and 2011 outlook on February 9th at 8:30 A.M. Eastern Time. The call will be broadcast live over the Internet at www.streetevents.com or through a link on our web site at www.wasteconnections.com. A playback of the call will be available at both of these web sites.

Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly secondary markets in the Western and Southern U.S. The Company serves approximately two million residential, commercial and industrial customers from a network of operations in 27 states. The Company also provides intermodal services for the movement of containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in Folsom, California.

For more information, visit the Waste Connections web site at www.wasteconnections.com. Copies of financial literature, including this release, are available on the Waste Connections web site or through contacting us directly at (916) 608-8200.

* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule.

Information Regarding Forward-Looking Statements

Certain statements contained in this release are forward-looking in nature, including statements related to expected share repurchases, dividend payments, recycled commodity prices, expected contribution from closed acquisitions, future acquisition activity, expected margin expansion, free cash flow growth and earnings per share growth, and our 2011 outlook. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) our acquisitions may not be successful, resulting in changes in strategy, operating losses or a loss on sale of the business acquired; (2) a portion of our growth and future financial performance depends on our ability to integrate acquired businesses into our organization and operations; (3) downturns in the worldwide economy adversely affect operating results; (4) our results are vulnerable to economic conditions and seasonal factors affecting the regions in which we operate; (5) we may be subject in the normal course of business to judicial, administrative or other third party proceedings that could interrupt or limit our operations, require expensive remediation, result in adverse judgments, settlements or fines and create negative publicity; (6) we may be unable to compete effectively with larger and better capitalized companies and governmental service providers; (7) we may lose contracts through competitive bidding, early termination or governmental action; (8) price increases may not be adequate to offset the impact of increased costs or may cause us to lose volume; (9) increases in the price of fuel may adversely affect our business and reduce our operating margins; (10) increases in labor and disposal and related transportation costs could impact our financial results; (11) efforts by labor unions could divert management attention and adversely affect operating results; (12) we could face significant withdrawal liability if we withdraw from participation in one or more underfunded multiemployer pension plans in which we participate; (13) increases in insurance costs and the amount that we self-insure for various risks could reduce our operating margins and reported earnings; (14) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit our ability to grow through acquisitions; (15) our indebtedness could adversely affect our financial condition; we may incur substantially more debt in the future; (16) each business that we acquire or have acquired may have liabilities or risks that we fail or are unable to discover, including environmental liabilities; (17) liabilities for environmental damage may adversely affect our financial condition, business and earnings; (18) our accruals for our landfill site closure and post-closure costs may be inadequate; (19) the financial soundness of our customers could affect our business and operating results; (20) we depend significantly on the services of the members of our senior, regional and district management team, and the departure of any of those persons could cause our operating results to suffer; (21) our decentralized decision-making structure could allow local managers to make decisions that adversely affect our operating results; (22) we may incur charges related to capitalized expenditures of landfill development projects, which would decrease our earnings; (23) because we depend on railroads for our intermodal operations, our operating results and financial condition are likely to be adversely affected by any reduction or deterioration in rail service; (24) our financial results are based upon estimates and assumptions that may differ from actual results; (25) the adoption of new accounting standards or interpretations could adversely affect our financial results; (26) our financial and operating performance may be affected by the inability to renew landfill operating permits, obtain new landfills and expand existing ones; (27) future changes in laws or renewed enforcement of laws regulating the flow of solid waste in interstate commerce could adversely affect our operating results; (28) fluctuations in prices for recycled commodities that we sell and rebates we offer to customers may cause our revenues and operating results to decline; (29) extensive and evolving environmental, health, safety and employment laws and regulations may restrict our operations and growth and increase our costs; (30) climate change regulations may adversely affect operating results; (31) extensive regulations that govern the design, operation and closure of landfills may restrict our landfill operations or increase our costs of operating landfills; (32) alternatives to landfill disposal may cause our revenues and operating results to decline; and (33) unusually adverse weather conditions may interfere with our operations, harming our operating results. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

- financial tables attached -

                         WASTE CONNECTIONS, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
        THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2010
                               (Unaudited)
           (in thousands, except share and per share amounts)
                           Three months ended       Twelve months ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2009         2010         2009         2010
                        -----------  -----------  -----------  -----------
Revenues                $   309,897  $   335,955  $ 1,191,393  $ 1,319,757
Operating expenses:
   Cost of operations       181,584      191,512      692,415      749,487
   Selling, general and
    administrative           33,615       39,395      138,026      149,860
   Depreciation              31,670       33,525      117,796      132,874
   Amortization of
    intangibles               3,611        3,782       12,962       14,582
   Loss (gain) on
    disposal of assets          556           (1)        (481)         571
                        -----------  -----------  -----------  -----------
Operating income             58,861       67,742      230,675      272,383
Interest expense            (12,344)      (9,292)     (49,161)     (40,134)
Interest income                 139          136        1,413          590
Loss on extinguishment
 of debt                          -            -            -      (10,193)
Other income (expense),
 net                         (8,607)         860       (7,551)       2,830
                        -----------  -----------  -----------  -----------
Income before income
 tax provision               38,049       59,446      175,376      225,476
Income tax provision        (14,495)     (23,011)     (64,565)     (89,334)
                        -----------  -----------  -----------  -----------
Net income                   23,554       36,435      110,811      136,142
Less: net income
 attributable to
 noncontrolling
 interests                     (295)        (290)        (986)      (1,038)
                        -----------  -----------  -----------  -----------
Net income attributable
 to Waste Connections   $    23,259  $    36,145  $   109,825  $   135,104
                        ===========  ===========  ===========  ===========
Earnings per common
 share attributable
 to Waste Connections'
 common stockholders:
   Basic               $      0.20  $      0.32  $      0.92  $      1.17
                        ===========  ===========  ===========  ===========
   Diluted             $      0.19  $      0.31  $      0.91  $      1.16
                        ===========  ===========  ===========  ===========
Shares used in the per
 share calculations:
   Basic                118,204,728  114,212,664  119,119,601  115,646,173
                        ===========  ===========  ===========  ===========
   Diluted              119,928,021  115,327,440  120,506,162  116,894,204
                        ===========  ===========  ===========  ===========
Cash dividends per
 common share                     -  $     0.075            -  $     0.075
                        ===========  ===========  ===========  ===========
                         WASTE CONNECTIONS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (Unaudited)
           (in thousands, except share and per share amounts)
                                                    December     December
                                                      31,          31,
                                                      2009         2010
                                                  -----------  -----------
ASSETS
Current assets:
  Cash and equivalents                            $     9,639  $     9,873
  Accounts receivable, net of allowance for
   doubtful accounts of $4,058 and $5,084 at
   December 31, 2009 and 2010, respectively           138,972      152,156
  Deferred income taxes                                17,748       20,130
  Prepaid expenses and other current assets            33,495       33,402
                                                  -----------  -----------
    Total current assets                              199,854      215,561
Property and equipment, net                         1,308,392    1,337,476
Goodwill                                              906,710      927,852
Intangible assets, net                                354,303      381,475
Restricted assets                                      27,377       30,441
Other assets, net                                      23,812       23,179
                                                  -----------  -----------
                                                  $ 2,820,448  $ 2,915,984
                                                  ===========  ===========
LIABILITIES AND EQUITY
Current liabilities:
  Accounts payable                                $    86,669  $    85,252
  Book overdraft                                       12,117       12,396
  Accrued liabilities                                  93,380       99,075
  Deferred revenue                                     50,138       54,157
  Current portion of long-term debt and notes
   payable                                              2,609        2,657
                                                  -----------  -----------
    Total current liabilities                         244,913      253,537
Long-term debt and notes payable                      867,554      909,978
Other long-term liabilities                            45,013       47,637
Deferred income taxes                                 305,932      334,414
                                                  -----------  -----------
    Total liabilities                               1,463,412    1,545,566
Commitments and contingencies
Equity:
Preferred stock: $0.01 par value; 7,500,000
 shares authorized; none issued and outstanding             -            -
Common stock: $0.01 par value; 150,000,000 shares
 authorized;  117,898,624 and 113,950,081 shares
 issued and outstanding at December 31, 2009 and
 2010, respectively                                       786        1,139
Additional paid-in capital                            625,173      509,218
Retained earnings                                     732,738      858,887
Accumulated other comprehensive loss                   (4,892)      (3,095)
                                                  -----------  -----------
  Total Waste Connections' equity                   1,353,805    1,366,149
Noncontrolling interests                                3,231        4,269
                                                  -----------  -----------
  Total equity                                      1,357,036    1,370,418
                                                  -----------  -----------
                                                  $ 2,820,448  $ 2,915,984
                                                  ===========  ===========
                         WASTE CONNECTIONS, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2010
                               (Unaudited)
                         (Dollars in thousands)
                                                    Twelve months ended
                                                        December 31,
                                                  ------------------------
                                                      2009         2010
                                                  -----------  -----------
Cash flows from operating activities:
Net income                                        $   110,811  $   136,142
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Loss (gain) on disposal of assets                      (481)         571
  Depreciation                                        117,796      132,874
  Amortization of intangibles                          12,962       14,582
  Deferred income taxes, net of acquisitions           38,224       26,431
  Loss on redemption of 2026 Notes, net of
   make-whole payment                                       -        2,255
  Amortization of debt issuance costs                   1,942        1,574
  Amortization of debt discount                         4,684        1,245
  Equity-based compensation                             9,336       11,331
  Interest income on restricted assets                   (488)        (511)
  Closure and post-closure accretion                    2,055        1,766
  Excess tax benefit associated with equity-based
   compensation                                        (4,054)     (11,997)
  Net change in operating assets and liabilities,
   net of acquisitions                                 10,850       12,133
                                                  -----------  -----------
Net cash provided by operating activities             303,637      328,396
                                                  -----------  -----------
Cash flows from investing activities:
  Payments for acquisitions, net of cash acquired    (420,011)     (81,010)
  Capital expenditures for property and equipment    (128,251)    (134,829)
  Proceeds from disposal of assets                      5,061        6,659
  Increase in restricted assets, net of interest
   income                                              (3,880)      (2,552)
  Increase in other assets                             (1,146)      (2,492)
                                                  -----------  -----------
Net cash used in investing activities                (548,227)    (214,224)
                                                  -----------  -----------
Cash flows from financing activities:
  Proceeds from long-term debt                        426,500      483,253
  Principal payments on notes payable and
   long-term debt                                    (401,970)    (467,660)
  Change in book overdraft                              7,802          279
  Proceeds from option and warrant exercises           15,397       33,074
  Excess tax benefit associated with equity-based
   compensation                                         4,054       11,997
  Payments for repurchase of common stock             (62,624)    (166,320)
  Payments for cash dividends                               -       (8,561)
  Debt issuance costs                                    (194)           -
                                                  -----------  -----------
Net cash used in financing activities                 (11,035)    (113,938)
                                                  -----------  -----------
Net increase (decrease) in cash and equivalents      (255,625)         234
Cash and equivalents at beginning of period           265,264        9,639
                                                  -----------  -----------
Cash and equivalents at end of period             $     9,639  $     9,873
                                                  ===========  ===========
                          ADDITIONAL STATISTICS
             THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2010
                         (Dollars in thousands)
Internal Growth:  The following table reflects revenue growth for
operations owned for at least 12 months:
                                          Three months  Twelve months
                                             ended          ended
                                          December 31,   December 31,
                                              2010           2010
                                          ------------   ------------
      Core Price                                   2.6%           2.7%
      Surcharges                                   0.3%           0.2%
      Volume                                       0.9%           0.0%
      Intermodal, Recycling and Other              2.5%           2.6%
                                          ------------   ------------
      Total                                        6.3%           5.5%
                                          ------------   ------------
Uneliminated Revenue Breakdown:
                              Three months ended      Twelve months ended
                               December 31, 2010       December 31, 2010
                            ----------------------  ----------------------
   Collection               $  239,213        62.2% $  951,327        62.8%
   Disposal and Transfer       115,851        30.1%    458,241        30.3%
   Intermodal, Recycling
    and Other                   29,469         7.7%    103,974         6.9%
                            ----------  ----------  ----------  ----------
   Total before inter-
    company elimination     $  384,533       100.0%  $1,513,542      100.0%
   Inter-company
    elimination             $  (48,578)             $ (193,785)
                            ----------              ----------
     Reported Revenue       $  335,955              $1,319,757
                            ----------              ----------
Days Sales Outstanding for the three months ended December 31, 2010:  42
(27 net of deferred revenue)
Internalization for the three months ended December 31, 2010:  66%
Other Cash Flow Items:
                              Three months ended      Twelve months ended
                               December 31, 2010       December 31, 2010
                            ----------------------  ----------------------
   Cash Interest Paid              $ 14,120                $ 39,913
   Cash Taxes Paid                 $ 13,881                $ 50,111
Debt to Book Capitalization as of December 31, 2010:  40%
Share Information for the three months ended December 31, 2010:
   Basic shares outstanding                     114,212,664
   Dilutive effect of options and warrants          541,767
   Dilutive effect of restricted stock              573,009
                                                -----------
   Diluted shares outstanding                   115,327,440
                    NON-GAAP RECONCILIATION SCHEDULE
                             (in thousands)
Reconciliation of Adjusted Operating Income before Depreciation and
 Amortization:
Adjusted operating income before depreciation and amortization, a non-GAAP
financial measure, is provided supplementally because it is widely used by
investors as a performance and valuation measure in the solid waste
industry. Waste Connections defines adjusted operating income before
depreciation and amortization as operating income, plus depreciation and
amortization expense, plus closure and post-closure accretion expense, plus
or minus any gain or loss on disposal of assets. The Company further
adjusts this calculation to exclude the effects of items management
believes impact the ability to assess the operating performance of our
business. This measure is not a substitute for, and should be used in
conjunction with, GAAP financial measures. Management uses adjusted
operating income before depreciation and amortization as one of the
principal measures to evaluate and monitor the ongoing financial
performance of the Company's operations. Other companies may calculate
adjusted operating income before depreciation and amortization differently.
                                                Three months  Three months
                                                   ended         ended
                                                December 31,  December 31,
                                                    2009          2010
                                                ------------  ------------
Operating income                                $     58,861  $     67,742
Plus: Depreciation and amortization                   35,281        37,307
Plus: Closure and post-closure accretion                 559           443
Plus/less: Loss (gain) on disposal of assets             556            (1)
Adjustments:
  Plus: Acquisition-related transaction
   costs (a)                                            (191)          904
  Plus: Loss on prior corporate office
   lease (b)                                             218             -
                                                ------------  ------------
Adjusted operating income before depreciation
 and amortization                               $     95,284  $    106,395
                                                ------------  ------------
As % of revenues                                        30.7%         31.7%
                                               Twelve months  Twelve months
                                                   ended         ended
                                                December 31,  December 31,
                                                    2009          2010
                                                ------------  ------------
Operating income                                $    230,675  $    272,383
Plus: Depreciation and amortization                  130,758       147,456
Plus: Closure and post-closure accretion               2,055         1,766
Plus/less: Loss (gain) on disposal of assets            (481)          571
Adjustments:
  Plus: Acquisition-related transaction
   costs (a)                                           3,987         2,081
  Plus: Loss on prior corporate office
   lease (b)                                           1,839             -
                                                ------------  ------------
Adjusted operating income before depreciation
 and amortization                               $    368,833  $    424,257
                                                ------------  ------------
As % of revenues                                        31.0%         32.1%
(a) Reflects the addback of acquisition-related costs expensed due to the
    implementation of accounting guidance for business combinations
    effective January 1, 2009.
(b) Reflects the addback of a loss on the Company's prior corporate office
    lease due to the relocation of the Company's corporate offices.
              NON-GAAP RECONCILIATION SCHEDULE (continued)
                (in thousands, except per share amounts)
Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income
 per diluted share:
Adjusted net income and adjusted net income per diluted share, both
non-GAAP financial measures, are provided supplementally because they are
widely used by investors as a valuation measure in the solid waste
industry. The Company provides adjusted net income to exclude the effects
of items management believes impact the comparability of operating results
between periods. Adjusted net income has limitations due to the fact that
it may exclude items that have an impact on the Company's financial
condition and results of operations. Adjusted net income and adjusted net
income per diluted share are not a substitute for, and should be used in
conjunction with, GAAP financial measures. Management uses adjusted net
income and adjusted net income per diluted share as one of the principal
measures to evaluate and monitor ongoing financial performance of the
Company's operations. Other companies may calculate adjusted net income and
adjusted net income per diluted share differently.
                                    Three months ended  Twelve months ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2009      2010      2009      2010
                                    --------  --------  --------  --------
Reported net income attributable
 to Waste Connections               $ 23,259  $ 36,145  $109,825  $135,104
Adjustments:
  Swap termination costs, net of
   taxes (a)                           5,753         -     5,753         -
  Loss on extinguishment of debt,
   net of taxes (b)                        -         -         -     6,320
  Acquisition-related transaction
   costs, net of taxes (c)              (176)      560     2,630     1,290
  Loss on prior corporate office
   lease, net of taxes (d)               136         -     1,144         -
  Loss (gain) on disposal of
   assets, net of taxes (e)              346         -      (299)      776
  Impact of deferred tax
   adjustment (f)                          -         -    (1,142)    1,547
                                    --------  --------  --------  --------
Adjusted net income attributable
 to Waste Connections               $ 29,318  $ 36,705  $117,911  $145,037
                                    ========  ========  ========  ========
Diluted earnings per common share
 attributable to Waste Connections
 common stockholders:
  Reported net income               $   0.19  $   0.31  $   0.91  $   1.16
                                    ========  ========  ========  ========
  Adjusted net income               $   0.24  $   0.32  $   0.98  $   1.24
                                    ========  ========  ========  ========
(a) Reflects the elimination of costs associated with the termination of a
    notional $175 million of interest rate swaps.
(b) Reflects the elimination of costs associated with the early redemption
    of outstanding debt.
(c) Reflects the elimination of acquisition-related costs due to the
    implementation of accounting guidance for business combinations
    effective January 1, 2009.
(d) Reflects the elimination of a loss on the Company's prior corporate
    office lease due to the relocation of the Company's corporate offices.
(e) Reflects the elimination of a loss (gain) on disposal of assets.
(f) Reflects (1) the elimination in 2009 of a benefit to the income tax
    provision primarily from a reduction in the Company's deferred tax
    liabilities, and (2) the elimination in 2010 of an increase to the
    income tax provision associated with an adjustment in the Company's
    deferred tax liabilities primarily resulting from a voter-approved
    increase in Oregon state income tax rates.
              NON-GAAP RECONCILIATION SCHEDULE (continued)
                             (in thousands)
Reconciliation of Free Cash Flow:
Free cash flow, a non-GAAP financial measure, is provided supplementally
because it is widely used by investors as a valuation and liquidity measure
in the solid waste industry. Waste Connections defines free cash flow as
net cash provided by operating activities, plus proceeds from disposal of
assets, plus or minus change in book overdraft, plus excess tax benefit
associated with equity-based compensation, less capital expenditures for
property and equipment and distributions to noncontrolling interests. This
measure is not a substitute for, and should be used in conjunction with,
GAAP liquidity or financial measures. Management uses free cash flow as one
of the principal measures to evaluate and monitor the ongoing financial
performance of the Company's operations. Other companies may calculate free
cash flow differently.
                                                Three months  Three months
                                                   ended         ended
                                                December 31,  December 31,
                                                    2009          2010
                                                ------------  ------------
Net cash provided by operating activities       $     61,392  $     86,098
Plus: Change in book overdraft                         7,754           653
Plus: Proceeds from disposal of assets                   712           874
Plus: Excess tax benefit associated with
 equity-based compensation                             3,358         3,061
Less: Capital expenditures for property and
 equipment                                           (43,962)      (48,708)
                                                ------------  ------------
Free cash flow                                  $     29,254  $     41,978
                                                ------------  ------------
As % of revenues                                         9.4%         12.5%
                                               Twelve months  Twelve months
                                                   ended         ended
                                                December 31,  December 31,
                                                    2009          2010
                                                ------------  ------------
Net cash provided by operating activities       $    303,637  $    328,396
Plus: Change in book overdraft                         7,802           279
Plus: Proceeds from disposal of assets                 5,061         6,659
Plus: Excess tax benefit associated with
 equity-based compensation                             4,054        11,997
Less: Capital expenditures for property and
 equipment                                          (128,251)     (134,829)
                                                ------------  ------------
Free cash flow                                  $    192,303  $    212,502
                                                ------------  ------------
As % of revenues                                        16.1%         16.1%

CONTACT:
Worthing Jackman
(916) 608-8266
Email Contact

SOURCE: Waste Connections, Inc.

http://www2.marketwire.com/mw/emailprcntct?id=148FB21B4BB2942C