SOURCE: BWI Holdings, Inc.

BWI Holdings, Inc.

January 13, 2010 16:05 ET

BWI Holdings, Inc. Reports $ 705,000 Net Profit for 9 Month Operating Results Ending December 31, 2009

CALGARY, AB--(Marketwire - January 13, 2010) - BWI Holdings, Inc ("BWI") (PINKSHEETS: BWIH) operating as Budget Waste, Inc. (the "Company") a waste solutions company headquartered in Western Canada that provides complete waste and recycling services to commercial, residential and industrial clients, announces today its financial results for the third quarter ended December 31, 2009.

Mr. Jim Can, CEO, states, "Given the extremely tough economic climate that we have to deal with, we are very pleased that we can remain profitable and at the same time continue to give excellent customer service. I am extremely proud of our team who recognizes the tough economic times and is willing to persevere, work hard and maintain our strong momentum. Although it is still early in the final quarter of fiscal 2010, we expect to continue growing our sales and improve profitability in the current fiscal year."

For the three and nine months ended December 31, 2009, the Company reported revenues of $1,948,000 and $6,223,000 respectively, compared to $2,730,000 and $8,339,000 for the comparative periods ended December 31, 2008. A substantial decrease but expected considering the downturn of the residential and industrial construction markets.

The gross margins for the quarter and nine months ended December 31, 2009 were $425,000 and $1,565,000, respectively, representing 21.8% and 25.1% of revenue. The comparative amounts were $973,000 or 35.6% of revenue for the quarter and $1,565,000 or 25.1% of revenue for the three quarters ended December 31, 2008. The lower gross margin percentages were due to the economic recession.

Selling, general and administrative ("S,G&A") expenses decreased to $486,000 for the three months ended December 31, 2009 from $1,264,000 in the comparative quarter. For the nine months ended December 31, 2009, S,G&A was down to $1,534,000 from $3,629,000 in the three quarters ended December 31, 2008.

The Company realized a net income of $578,000 for the third quarter and $705,000 for the nine months ended December 31, 2009. It was due to gains from restructuring.

A summary of the Company's operating results over the three months ended December 31, 2009 and the nine months ended December 31, 2009, and the comparative quarters ended December 31, 2009 are presented in the table below.

All figures are presented in U.S. dollars

                       Three Months Three Months  Nine Months  Nine Months
                           Ended       Ended        Ended        Ended
                        December 31, December 31, December 31, December 31,
                           2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
                          (000's)      (000's)      (000's)      (000's)
                        -----------  -----------  -----------  -----------
Revenue                 $     1,948  $     2,730  $     6,223  $     8,339
Gross Margin            $       425  $       973  $     1,565  $     2,488
Gross Margin as % of
 Revenue                       21.8%        35.6%        25.1%        29.8%
Selling, Admin &
 Depreciation           $       486  $     1,264  $     1,534  $     3,629
Selling, Admin &
 Depreciation as % of
 Revenue                       24.9%        46.3%        24.7%        43.5%
Gain on Disposal of
 Assets                 $       639  $         -  $       674  $       441
Net Income (Loss)       $       578  $        52  $       705  $       153
EBIDTA                  $       674  $       331  $       880  $     1,286
                        -----------  -----------  -----------  -----------

Budget Waste Inc. is a waste solutions company in Western Canada providing complete waste and recycling services to commercial, industrial, construction, homebuilding, oilfield and residential clients. With our broad range of innovative services we offer our customers more value for their dollar and reduce accounting costs by providing streamlined billing. BWI is currently following its growth through acquisition strategy with exceptional success. With regulations throughout North America pressing companies and individuals to be more vigilant in the way they handle their waste products we see vast opportunity for expansion of our distinctive services. We are confident that extraordinary growth and focus on customer needs will bring our stockholders outstanding value for the confidence they have placed in BWI.

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Safe Harbor Act Notice:

Certain information included in this press release, may contain forward-looking statements about our current and expected performance trends, growth plans, business goals and other matters. These statements may be contained in our filings with the Securities and Exchange Commission, in our press releases, in other written communications, and in oral statements made by or with the approval of one of our authorized officers. Information set forth in this press release contains various "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 (the "Act") provides certain "safe harbor" provisions for forward-looking statements. The reader is cautioned that such forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "should," "will," and similar words, although some forward-looking statements are expressed differently. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

Contact Information

  • Contact:

    BWI Holdings, Inc.
    Investor Relations
    3915 - 61st Ave. SE.
    Calgary, AB T2C 1V5
    Ph. 403-255-2900
    Toll free 1-888-255-2990
    Fax: 403-255-3237
    Email: ir@budgetwaste.com