News Releases

Waste Connections Reports Fourth Quarter and Full Year 2006 Results and Provides 2007 Outlook
Fourth Quarter 2006 Highlights:
- Revenue increased 11.8% to $210.7 million on stronger than expected internal growth
- Reports internal growth of 5.5% price and 2.0% volume
- Reports operating margin consistent with Q4 outlook
- Reports free cash flow of $25 million, or 11.9% of revenue
PRNewswire-FirstCall
FOLSOM, Calif.

Waste Connections, Inc. today announced its results for the fourth quarter 2006. Revenue totaled $210.7 million, an 11.8% increase over revenue of $188.4 million in the year ago period. Operating income was $43.9 million, an 11.8% increase over operating income of $39.3 million in the fourth quarter of 2005. Net income was $20.6 million, or $0.44 per share on a diluted basis of 46.7 million shares. Operating income and net income in the current period included a $0.8 million ($0.5 million net of taxes, or approximately $0.01 per share) non-cash loss on disposal of assets. The income tax provision and net income in the current period also included $0.8 million expense (approximately $0.02 per share) due to the approval during the quarter of a change in tax accounting method regarding certain landfills, which also reduced cash taxes in the period. In the year ago period, the Company reported net income of $18.7 million and diluted earnings per share of $0.40. Net income in the prior year period included a non-cash charge of approximately $1.6 million ($1.0 million net of taxes, or approximately $0.02 per share) related to the accelerated vesting of outstanding options.

"We are extremely pleased with our continuously improving results during 2006 and the pieces we already have in place for expected margin expansion and double-digit revenue growth in 2007. Many of the improvements in our underlying financials achieved during 2006 were masked primarily by the significant year-to-year increase in our fuel costs. Now that we have transitioned to a higher fuel cost environment, we expect continuing pricing strength and increasing volume growth to drive year-over-year margin expansion in 2007," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "Our strong free cash flow in the fourth quarter enabled us to exit the year with sufficient cash balances to fund our recent acquisition of Waste Management's integrated operations in Eastern Kentucky without incremental borrowings."

For the year ended December 31, 2006, revenue was $824.4 million, a 14.2% increase over revenue of $721.9 million in 2005. Operating income was $171.4 million versus $168.0 million in 2005. Net income was $77.4 million, or $1.65 per share on a diluted basis of 46.9 million shares. In 2005, the Company reported income from continuing operations of $84.5 million and diluted earnings per share from continuing operations of $1.75.

2007 OUTLOOK

Waste Connections also announced its outlook for 2007, its 10th anniversary year. The Company's outlook excludes the impact of any additional acquisitions and assumes: (1) approximately $5.7 million of equity-based compensation costs; and (2) $100 million of common stock is repurchased during the year. 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.

   --   Revenue is estimated to range between $920 million and $930 million.
        This assumes internal growth in a range between 8.0% and 8.5%,
        excluding the impact of intermodal services and commodities, with
        between 4.0% and 4.5% from price and surcharges, and the remainder
        from volume growth.
   --   Selling, general and administrative expense, which includes
        increased equity-based compensation costs, is estimated at
        approximately 10.2% of revenue, subject to quarterly fluctuations.
   --   Depreciation and amortization is estimated at approximately 9.0% of
        revenue, subject to quarterly fluctuations.
   --   Operating income is estimated at approximately 21.2% of revenue,
        subject to quarterly fluctuations.
   --   Net interest expense is estimated at approximately $33.5 million.
   --   Minority interest expense is estimated at approximately 1.6% of
        revenue, subject to quarterly fluctuations.
   --   Effective tax rate is expected to be approximately 38.0%, subject to
        quarterly fluctuations.
   --   Net cash provided by operating activities is estimated to be
        approximately 24% of revenue, subject to quarterly fluctuations.
   --   Capital expenditures are estimated to be approximately $115 million,
        of which approximately $15 million relates to up-front outlays for
        trucks and containers associated with the commencement of a long-
        term collection contract in Northern California.

Waste Connections will be hosting a conference call related to fourth quarter earnings and 2007 outlook on February 13th at 8:30 A.M. Eastern Time. The call will be broadcast live over the Internet at www.streetevents.com and through a link on the Company's web site at www.wasteconnections.com. A playback of the call will be available at both of these sites.

For non-GAAP measures, see accompanying Non-GAAP Reconciliation Schedule.

In the second quarter of 2005, Waste Connections classified as discontinued operations the results of certain operations in Utah and California that were exited during that quarter. Results for 2005 have been reclassified to present the results for these operations as discontinued operations.

In accordance with the Company's adoption of SFAS 123R at the beginning of the first quarter of 2006, excess tax benefits associated with equity-based compensation, which totaled $7.7 million for the year ended December 31, 2006, are now classified as a cash flow from financing activities, rather than as a cash flow from operating activities as classified in prior year periods. This requirement will reduce the amounts recorded as net cash provided by operating activities, and will increase the amount recorded as net cash provided by financing activities. In order to improve comparability to prior periods, the Company's definition of free cash flow, a non-GAAP financial measure, has been expanded to include the excess tax benefits associated with equity-based compensation. Total cash flow will remain unchanged from what would have been reported under prior accounting rules.

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 more than one million residential, commercial and industrial customers from a network of operations in 22 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.

Certain statements contained in this press release are forward-looking in nature. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. Waste Connections' 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) Waste Connections may be unable to compete effectively with larger and better capitalized companies and governmental service providers; (2) increases in the price of fuel may adversely affect Waste Connections' business and reduce its operating margins; (3) increases in labor and disposal and related transportation costs could impact Waste Connections' financial results; (4) increases in insurance costs and the amount that Waste Connections self- insures for various risks could reduce its operating margins and reported earnings; (5) Waste Connections' financial results are based upon estimates and assumptions that may differ from actual results; (6) efforts by labor unions could divert management attention and adversely affect operating results; (7) Waste Connections may lose contracts through competitive bidding, early termination or governmental action; (8) Waste Connections' results are vulnerable to economic conditions and seasonal factors affecting the regions in which it operates; (9) Waste Connections may be subject in the normal course of business to judicial and administrative proceedings that could interrupt its operations, require expensive remediation and create negative publicity; (10) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit Waste Connections' ability to grow through acquisitions; (11) Waste Connections' growth and future financial performance depend significantly on its ability to integrate acquired businesses into its organization and operations; (12) Waste Connections' acquisitions may not be successful, resulting in changes in strategy, operating losses or a loss on sale of the business acquired; (13) Waste Connections' Amended and Restated Revolving Credit and Term Loan Agreement and other factors and considerations may limit the number of shares repurchased under Waste Connections' stock repurchase program; (14) because Waste Connections depends on railroads for its intermodal operations, its operating results and financial condition are likely to be adversely affected by any reduction or deterioration in rail service; (15) Waste Connections' intermodal business could be adversely affected by steamship lines diverting business to ports other than those Waste Connections services, or by heightened security measures or actual or threatened terrorist attacks; (16) Waste Connections depends significantly on the services of the members of its senior and district management team, and the departure of any of those persons could cause its operating results to suffer; (17) Waste Connections' decentralized decision-making structure could allow local managers to make decisions that adversely affect Waste Connections' operating results; (18) Waste Connections may incur additional charges related to capitalized expenditures, which would decrease its earnings; (19) the outcome of audits by the Internal Revenue Service may adversely affect Waste Connections; (20) each business that Waste Connections acquires or has acquired may have liabilities that Waste Connections fails or is unable to discover, including environmental liabilities; (21) liabilities for environmental damage may adversely affect Waste Connections' business and earnings; and (22) the adoption of new accounting standards or interpretations could adversely impact Waste Connections' financial results. These risks and uncertainties, as well as others, are discussed in greater detail in Waste Connections' filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. There may be additional risks of which Waste Connections is not presently aware or that it currently believes are immaterial which could have an adverse impact on its business. Waste Connections makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.

                         WASTE CONNECTIONS, INC.
                    CONSOLIDATED STATEMENTS OF INCOME
         THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2006
                               (Unaudited)
            (in thousands, except share and per share amounts)


                                  Three months ended   Twelve months ended
                                     December 31,          December 31,
                                    2005       2006       2005      2006

  Revenues                       $188,445   $210,668   $721,899 $824,354
  Operating expenses:
     Cost of operations           111,068    124,421    416,883  492,766
     Selling, general and
      administrative               20,470     22,695     72,395   84,541
     Depreciation and amortization 17,511     18,825     64,788   74,865
     Loss (gain) on disposal
      of assets                       116        831      (216)      796
  Operating income                 39,280     43,896    168,049  171,386

  Interest expense                (6,946)    (7,285)   (23,489)  (28,970)
  Minority interests              (3,150)    (3,157)   (12,422)  (12,905)
  Other income (expense), net         223         81        450   (3,759)
  Income from continuing
   operations before income tax    29,407     33,535    132,588  125,752

  Income tax provision           (10,706)   (12,908)   (48,066)  (48,329)
  Income from continuing
   operations                      18,701     20,627     84,522   77,423
  Loss from discontinued
   operations, net of tax               -          -      (579)         -

  Net income                      $18,701    $20,627    $83,943  $77,423

  Basic earnings per common share:
     Continuing operations          $0.41      $0.45      $1.81    $1.70
     Discontinued operations            -          -     (0.01)         -
     Net income per common share    $0.41      $0.45      $1.80    $1.70

  Diluted earnings per common share:
     Continuing operations          $0.40      $0.44      $1.75    $1.65
     Discontinued operations            -          -     (0.01)         -
     Net income per common share    $0.40      $0.44      $1.74    $1.65

  Shares used in the per
   share calculations:
     Basic                     46,096,009 45,364,370 46,700,64945,424,084
     Diluted                   47,316,277 46,686,227 48,211,30146,939,115


                         WASTE CONNECTIONS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (Unaudited)
            (in thousands, except share and per share amounts)


                                            December 31,     December 31,
                                                2005             2006
  ASSETS
  Current assets:
     Cash and equivalents                      $7,514           $34,949
     Accounts receivable, net of allowance
      for doubtful accounts of $2,826 and
      $3,489 at December 31, 2005 and
      2006, respectively                       94,438           100,269
     Deferred income taxes                      5,145             9,373
     Prepaid expenses and other
      current assets                           17,279            15,642
        Total current assets                  124,376           160,233

  Property and equipment, net                 700,508           736,428
  Goodwill                                    723,120           750,397
  Intangible assets, net                       87,651            86,098
  Restricted assets                            13,888            15,917
  Other assets, net                            26,764            24,818
                                           $1,676,307        $1,773,891

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
     Accounts payable                         $54,795           $53,010
     Book overdraft                             8,869                 -
     Accrued liabilities                       44,522            57,810
     Deferred revenue                          30,957            32,161
     Current portion of long-term
      debt and notes payable                   10,858             6,884
        Total current liabilities             150,001           149,865

  Long-term debt and notes payable            586,104           637,308
  Other long-term liabilities                  20,478            16,712
  Deferred tax liabilities                    175,167           205,532
        Total liabilities                     931,750         1,009,417

  Commitments and contingencies
  Minority interests                           26,357            27,992

  Stockholders' equity:
  Preferred stock: $0.01 par value; 7,500,000
   shares authorized; none issued and outstanding   -                 -
  Common stock: $0.01 par value; 100,000,000
   shares authorized; 45,924,686 and 45,510,697
   shares issued and outstanding at
   December 31, 2005 and 2006, respectively       459               455
  Additional paid-in capital                  373,382           310,229
  Deferred stock compensation                 (2,234)                 -
  Treasury stock at cost, 106,600 shares
   outstanding at December 31, 2005           (3,672)                 -
  Retained earnings                           345,308           422,731
  Accumulated other comprehensive income        4,957             3,067
        Total stockholders' equity            718,200           736,482
                                           $1,676,307        $1,773,891


                         WASTE CONNECTIONS, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2006
                               (Unaudited)
                          (Dollars in thousands)


                                                   Twelve months ended
                                                       December 31,
                                                  2005             2006
  Cash flows from operating activities:
  Net income                                    $83,943          $77,423

  Adjustments to reconcile net income to
   net cash provided by operating activities:
     Loss (gain) on disposal of assets            (413)              796
     Depreciation                                61,968           70,785
     Amortization of intangibles                  3,070            4,080
     Deferred income taxes, net of acquisitions   (792)           26,585
     Minority interests                          12,422           12,905
     Amortization of debt issuance costs          2,001            6,238
     Stock-based compensation                     2,826            3,451
     Interest income on restricted assets         (390)            (618)
     Closure and post-closure accretion             681              623
     Tax benefit on the exercise
      of stock options                            7,338                -
     Excess tax benefit associated with
      equity-based compensation                       -          (7,728)
     Net change in operating assets and
      liabilities, net of acquisitions           27,158            9,694
  Net cash provided by operating activities     199,812          204,234

  Cash flows from investing activities:
     Payments for acquisitions, net
      of cash acquired                         (80,849)         (38,594)
     Capital expenditures for property
      and equipment                            (97,482)         (96,519)
     Proceeds from disposal of assets             5,254            2,198
     Decrease (increase) in restricted
      assets, net of interest income                661          (1,411)
     Increase in other assets                     (856)            (224)
  Net cash used in investing activities       (173,272)        (134,550)

  Cash flows from financing activities:
     Proceeds from long-term debt               232,631          666,035
     Principal payments on notes
      payable and long-term debt              (159,688)        (621,161)
     Change in book overdraft                       208          (8,869)
     Proceeds from option and
      warrant exercises                          28,716           32,146
     Excess tax benefit associated with
      equity-based compensation                       -            7,728
     Distributions to minority
      interest holders                         (10,486)         (11,270)
     Payments for repurchase of common stock  (113,874)        (100,245)
     Debt issuance costs                          (143)          (6,613)
  Net cash used in financing activities        (22,636)         (42,249)

  Net increase in cash and equivalents            3,904           27,435
  Cash and equivalents at beginning of period     3,610            7,514
  Cash and equivalents at end of period          $7,514          $34,949


                          ADDITIONAL STATISTICS
             THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006
                          (Dollars in thousands)



Internal Growth: The following table reflects revenue growth for operations owned for at least 12 months:

                             Three Months Ended       Twelve Months Ended
                             December 31, 2006         December 31, 2006
  Price                              5.5%                     5.1%
  Volume                             2.0%                     2.8%
  Intermodal, Recycling
   and Other                         0.3%                   (0.3%)
  Total                              7.8%                     7.6%


  Uneliminated Revenue Breakdown:

                                 Three Months Ended    Twelve Months Ended
                                 December 31, 2006      December 31, 2006
  Collection                    $153,221      64.1%     $602,762     64.2%
  Disposal and Transfer           65,582      27.5%      259,190     27.6%
  Intermodal, Recycling
   and Other                      20,120       8.4%       77,202      8.2%
  Total                         $238,923     100.0%     $939,154    100.0%

  Inter-company elimination      $28,255                $114,800

Days Sales Outstanding for the three months ended December 31, 2006: 44 (30 net of deferred revenue)

  Internalization for the three months ended December 31, 2006:  69%


  Other Cash Flow Items for the three months ended December 31, 2006:
   Cash Interest Paid: $10,039
   Cash Taxes Paid:    $45


  Debt to Capitalization Ratio as of December 31, 2006:  46.7%


  Share Information for the three months ended December 31, 2006:

  Basic shares outstanding                      45,364,370
     Dilutive effect of options and warrants     1,198,467
     Dilutive effect of restricted stock           123,390
     Diluted shares outstanding                 46,686,227


                     NON-GAAP RECONCILIATION SCHEDULE
             THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006
                              (in thousands)

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 and excess tax benefit associated with equity-based compensation, plus or minus change in book overdraft, less capital expenditures and distributions to minority interest holders. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Management uses free cash flow as one of the principal measures to evaluate and monitor the ongoing financial performance of our operations. Other companies may calculate free cash flow differently.

  Free cash flow reconciliation:

                                    Three Months Ended Twelve Months Ended
                                    December 31, 2006    December 31, 2006
  Net cash provided by
   operating activities                  $51,894              $204,234
  Change in book overdraft               (2,726)               (8,869)
  Plus: Proceeds from
   disposal of assets                        248                 2,198
  Plus: Excess tax benefit
   associated with equity-based
   compensation                            2,068                 7,728
  Less: Capital expenditures
   for property and equipment           (23,037)              (96,519)
  Less: Distributions to minority
   interest holders                      (3,430)              (11,270)
  Free cash flow                         $25,017               $97,502

  Free cash flow as % of revenues          11.9%                 11.8%

SOURCE: Waste Connections, Inc.

CONTACT: Worthing Jackman, +1-916-608-8266, or
worthingj@wasteconnections.com