BFI Canada Ltd.
TSX : BFC

BFI Canada Ltd.

April 30, 2009 11:26 ET

BFI Canada Ltd. Announces Results for the Three Months Ended March 31, 2009

TORONTO, ONTARIO--(Marketwire - April 30, 2009) - BFI Canada Ltd. (the "Company") (TSX:BFC) reported financial results for the three months ended March 31, 2009. All amounts are in thousands of Canadian dollars, with the exception of per share or trust unit and participating preferred share ("PPS") amounts, unless otherwise stated.

Management Commentary

"We are very pleased with our strong performance in the first quarter, the result of year-over-year improvement in profitability, margins and free cash flow(B)," said Keith Carrigan, Vice Chairman and Chief Executive Officer. "These milestones were achieved in spite of a difficult economic environment. EBITDA(A) increased 16.7% over the same period last year, while free cash flow(B) grew 22.5%. The EBITDA(A) margin expanded 60 basis points to 28.0%. Core price increased 3.4% in Canada and 2.5% in the U.S., demonstrating the ongoing value of our services to customers."

Mr. Carrigan continued, "While the economy in 2009 will continue to present challenges, we are well-prepared to meet them. We are confident that our market-focused strategies, combined with the resilience of our diversified business model and positive cash flow, place us in a strong position for the balance of the year."

Financial Highlights for the Three Months Ended March 31, 2009

- Revenues increased 14.1% to $278.8 million.

- Excluding the impact of foreign currency translation, revenues declined (1.0%)

- EBITDA(A) increased 16.7% to $78.0 million.

- EBITDA(A) growth, before the impact of foreign currency translation, was 2.7%.

- Free cash flow(B) increased 22.5% to $37.7 million.

- For the quarter, core price increased 3.4% in Canada and 2.5% in the U.S.

- For the quarter, volumes decreased (2.0%) in Canada and (4.2%) in the U.S.

Other Highlights for the Three Months Ended March 31, 2009

- On March 6, 2009, the Company closed its public offering of 8.5 million common shares at $9.50 per share for total gross proceeds of $80.8 million. The Company applied the net proceeds from the public offering, approximately U.S. $61.5 million, to the repayment of outstanding borrowings on its U.S. long-term debt facility.

- On March 30, 2009, the Company closed the over-allotment option on its public offering of 1.275 million common shares at $9.50 per share for total gross proceeds of $12.1 million. The Company applied the net proceeds from the over-allotment option, approximately U.S. $9.5 million, to the repayment of outstanding borrowings on its U.S. long-term debt facility.

- At March 31, 2009, the Company's funded debt to EBITDA(A) ratios, calculated in accordance with its Canadian and U.S. long-term debt facilities, are 1.96 and 3.44 times, respectively.



Summarized Financial Highlights
Three Months
ended March 31,
2009
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Revenues March 31, 2008 $ 244,347
Organic growth and acquisitions (includes fuel and
environmental surcharges) (2,414)
Foreign currency exchange impact 36,885
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Revenues March 31, 2009 $ 278,818
% Revenue growth before foreign currency exchange impact -1.0%
Revenue growth % 14.1%

EBITDA(A) March 31, 2008 $ 66,858
Organic growth and acquisitions 1,837
Foreign currency exchange impact 9,332
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EBITDA(A) March 31, 2009 $ 78,027
% EBITDA(A) growth before foreign currency exchange impact 2.7%
EBITDA(A) growth % 16.7%

Free cash flow(B) March 31, 2008 $ 30,783
Organic growth and acquisitions 2,493
Foreign currency exchange impact 4,448
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Free cash flow(B) March 31, 2009 $ 37,724

% Free cash flow(B) growth before foreign currency exchange
impact 8.1%
Free cash flow(B) growth % 22.5%

Dividends declared $ 19,620
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Financial Highlights
(in thousands, except per weighted
average share or trust unit and PPS)
Three months ended March 31
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2009 2008
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(unaudited) (unaudited)
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(1)

Operating results
Revenues $ 278,818 $ 244,347
Operating expenses 163,357 147,148
Selling, general and administration expenses
("SG&A") 37,434 30,341
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Income before the following ("EBITDA(A)") 78,027 66,858
Amortization 46,564 42,577
Interest on long-term debt 11,461 13,374
Financing costs 383 -
Net (gain) loss on sale of capital and
landfill assets (167) 40
Net foreign exchange loss (gain) 104 (624)
Net loss on financial instruments 660 9,047
Other expenses 37 31
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Income before income taxes 18,985 2,413
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Net income tax expense (recovery) 6,726 (8,061)
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Net income $ 12,259 $ 10,474
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Net income - attributable to common
shareholders $ 10,519 $ 8,776
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Net income per weighted average share or
trust unit, basic $ 0.18 $ 0.15
Net income per weighted average share or
trust unit, diluted $ 0.17 $ 0.15

Shares or trust units and PPSs outstanding
Weighted average number of shares or trust
units outstanding 59,306 57,568
Weighted average number of PPSs outstanding 11,137 11,138
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Weighted average number of shares or trust
units and PPSs outstanding 70,443 68,706
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Aggregate number of shares or trust units and
PPSs outstanding 78,481 68,706
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Replacement and growth expenditures
Replacement capital and landfill purchases
("replacement expenditures") $ 15,523 $ 8,929
Growth capital and landfill purchases
("growth expenditures") 9,598 12,480
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Total replacement and growth expenditures $ 25,121 $ 21,409
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Operating and free cash flow(B)
Cash generated from operating activities $ 60,978 $ 42,934
Free cash flow(B) $ 37,724 $ 30,783
Free cash flow(B) per weighted average share
or trust unit and PPS $ 0.54 $ 0.45

Dividends and distributions
Dividends and distributions declared (shares
or trust units) $ 16,836 $ 26,164
Dividends declared (PPSs) 2,784 5,063
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Total dividends and distributions declared $ 19,620 $ 31,227
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Total dividends or distributions declared per
weighted average share or trust unit and PPS $ 0.28 $ 0.45

Notes:
(1) Net income has been restated throughout this press release to reflect
the adoption of the new accounting standard for non-controlling
interests (see Note 4 to the consolidated financial statements, included
in the Company's 2009 first quarter report). In addition, free cash
flow(B) and replacement and growth expenditures have been restated to
conform to the current period's presentation. Please refer to
Management's Discussion and Analysis ("MD&A") for further details on the
calculations and their methodologies.


Management's Discussion

(all amounts are in thousands, except per share or trust unit, PPS, and foreign currency exchange rate amounts, and are stated in Canadian dollars, unless otherwise stated)

Foreign Currency Exchange Rates

The Company reports its financial results in Canadian dollars. Consequently changes in the foreign currency exchange rate between Canada and the U.S. impacts the translated value of the Company's U.S. operating results to Canadian dollars. The U.S. segments financial position and operating results have been translated to Canadian dollars applying the following U.S. to Canadian dollar foreign exchange rates:



2009 2008
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Consolidated Consolidated
Consoli- Statement of Statement of
dated Operations Operations
Balance and Comprehensive Consolidated and Comprehensive
Sheet Income Balance Sheet Income
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Cumulative Cumulative
Current Average average Current Average average
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December 31 $ 1.225 $ 1.067
March 31 $ 1.260 $ 1.245 $ 1.245 $ 1.028 $ 1.004 $ 1.004


Readers are reminded that a significant portion of the Company's financial results originate in the U.S. The impact of foreign currency exchange on the Company's consolidated results is included in the Company's MD&A for the period ended March 31, 2009.



Operating Highlights
Three months ended March 31
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2009 2008 Change
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Revenues $ 278,818 $ 244,347 $ 34,471
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Canada $ 88,396 $ 85,768 $ 2,628
U.S. south $ 99,684 $ 79,816 $ 19,868
U.S. northeast $ 90,738 $ 78,763 $ 11,975

Operating expenses $ 163,357 $ 147,148 $ 16,209
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Canada $ 45,937 $ 46,544 $ (607)
U.S. south $ 59,554 $ 51,402 $ 8,152
U.S. northeast $ 57,866 $ 49,202 $ 8,664

SG&A $ 37,434 $ 30,341 $ 7,093
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Canada $ 12,604 $ 11,070 $ 1,534
U.S. south $ 13,864 $ 10,407 $ 3,457
U.S. northeast $ 10,966 $ 8,864 $ 2,102

EBITDA(A) $ 78,027 $ 66,858 $ 11,169
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Canada $ 29,855 $ 28,154 $ 1,701
U.S. south $ 26,266 $ 18,007 $ 8,259
U.S. northeast $ 21,906 $ 20,697 $ 1,209



Revenues - Three months ended March 31

Revenue by service type
Three months ended March 31, 2009
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Canada - U.S. -
percentage of U.S. - stated in percentage of
Canada gross revenues U.S. dollars gross revenues
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Commercial $ 38,754 39.2% $ 45,895 25.9%
Industrial 17,030 17.2% 25,105 14.2%
Residential 13,885 14.1% 37,925 21.4%
Transfer and
disposal 23,842 24.1% 61,504 34.7%
Other 5,247 5.3% 6,583 3.7%
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Gross revenues 98,758 100.0% 177,012 100.0%
Intercompany (10,362) (24,102)
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Revenues $ 88,396 $ 152,910
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Gross revenue growth components - expressed in percentages and excluding
foreign currency exchange
Three months ended March 31, 2009
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Canada U.S.
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Price
Core price 3.4% 2.5%
Fuel surcharges -0.5% -1.2%
Recycled commodities -0.8% -2.5%
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Total price 2.1% -1.2%

Volume -2.0% -4.2%
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Total organic growth 0.1% -5.4%

Acquisitions 3.7% 2.2%
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Total gross revenue growth 3.8% -3.2%
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The increase in Canadian segment gross revenues is due principally to core price and acquisition growth. Core price growth is due in part to the recovery of recycled commodity price declines. The decline in fuel surcharges is attributable to the decline in the comparative cost of diesel fuel, while the decline in volumes is due in large part to lower third party waste volumes accepted at the Company's landfills. Management remains optimistic that most of the volume shortfalls experienced in the first quarter of 2009 will be recovered over the balance of the year. Recycled commodity pricing declines represent the balance of the change.

Excluding the impact of foreign currency exchange, U.S. south segment revenues increased. Core pricing remained strong, with fuel surcharges representing the primary offset to core price growth. Lower construction and demolition volumes and recycled commodity pricing also contributed to the decline in U.S. south segment gross revenues.

Net of the foreign currency exchange impact, gross revenues in the U.S. northeast segment declined. Lower industrial collection, and transfer and disposal volumes accounted for the bulk of the comparative decline, while recycling commodity price declines also contributed to this segments decline. Acquisitions, coupled with price increases, partially offset the aforementioned. Compared to the preceding quarter ended December 31, 2008, the Company's U.S. northeast segment exhibited stabilizing characteristics in the first quarter of 2009. Management is encouraged by this trend and is optimistic about the U.S. northeast segments prospects for the balance of 2009.

Operating expenses - Three months ended March 31

The decline in Canadian segment operating expenses is due to lower vehicle operating costs, due in large part to a comparative decline in fuel costs, and lower expenses incurred for landfill development initiatives. These declines were partially offset by higher disposal costs. Higher disposal costs are the result of servicing new customers acquired principally through acquisition.

Excluding the impact of foreign currency exchange, operating expenses in the U.S. south declined. The decline in operating expenses is due to lower vehicle operating costs, which is due in large part to lower fuel costs.

Similarly, operating expenses in the U.S. northeast segment also declined when foreign currency exchange is excluded from this segments period over period change. The principal contributor to the operating expense decline is lower disposal volumes and third party transportation costs. Lower disposal volumes are due to the economic slowdown in the region, while lower transportation costs are due to the comparative decline in fuel costs.

SG&A expenses - Three months ended March 31

The increase in Canadian segment SG&A is primarily attributable to higher salaries. The comparative increase is the result of acquisition and organic growth, additional compensation expense to retain certain executive employees, and additional sales staff.

Excluding the impact of foreign currency exchange, U.S. south segment SG&A expense increased. The increase is due largely to additional sales staff, salary and facility and office costs and is attributable to organic growth.

The entire U.S. northeast segment increase is on account of foreign currency exchange.

Non-controlling interest

With the early adoption of Canadian Institute of Chartered Accountants ("CICA") accounting standard Non-Controlling Interests (section 1602), effective January 1, 2009, the Company changed its presentation of non-controlling interests from mezzanine equity to equity on the Company's consolidated balance sheet. Non-controlling interest is no longer deducted in the determination of net income. Instead, net income and each component of other comprehensive income are attributed to shareholders' equity and non-controlling interest. Adopting this section affects the Company's determination of net income presented in the consolidated statement of operations and comprehensive income, the presentation of net income and non-controlling interest in the consolidated statement of cash flows, and the presentation of non-controlling interest in the consolidated statement of equity.

Free cash flow (B)

Purpose and objective

The purpose of presenting this non-GAAP measure is to align the Company's disclosure with disclosures presented by other U.S. based companies in the waste industry. Investors and analysts use this calculation as a measure of a company's valuation and liquidity. Management uses this non-GAAP measure to assess its performance relative to other U.S. based companies, to assess its primary sources and uses of cash flow, and to assess its ability to sustain its dividend policy.



Free cash flow (B) - cash flow approach
Three months ended March 31
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2009 2008 Change
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Cash generated from operating activities
(per statement of cash flows) $ 60,978 $ 42,934 $ 18,044
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Operating
Changes in non-cash working capital items 1,757 10,579 (8,822)
Capital and landfill asset purchases (25,121) (21,409) (3,712)
Other expenses 37 31 6

Financing
Share based compensation (414) - (414)
Financing and landfill development costs
(net of non-cash portion) 383 (728) 1,111
Net realized foreign exchange loss (gain) 104 (624) 728
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Free cash flow(B) $ 37,724 $ 30,783 $ 6,941
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Free cash flow (B) - EBITDA(A) approach
Three months ended March 31
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2009 2008 Change
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EBITDA(A) $ 78,027 $ 66,858 $ 11,169
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Capital and landfill asset purchases (25,121) (21,409) (3,712)
Landfill closure and post-closure
expenditures (1,527) (245) (1,282)
Landfill closure and post-closure cost
accretion expense 924 781 143
Interest on long-term debt (11,461) (13,374) 1,913
Current income tax expense (3,118) (1,828) (1,290)
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Free cash flow(B) $ 37,724 $ 30,783 $ 6,941
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While the Company enjoyed increasing EBITDA(A) contributions from its Canadian and U.S. south segments, EBITDA(A) decreased comparatively in the U.S. northeast. On balance, however, EBIDTA(A) increased period over period. Contributions from both the Canadian and U.S. south segments are attributable to acquisition and organic revenue growth coupled with declines in vehicle operating costs. The decline in U.S. northeast EBIDTA(A) contributions is due largely to lower volumes in the region, which is the result of economic weakness. Lower interest on long-term debt also contributed to the comparative increase. Lower long-term debt levels and lower borrowing costs on variable rate lending in both Canada and the U.S. are the primary reasons for this decline.

Partially offsetting the increases outlined above, was an increase in current income tax expense, coupled with the timing of landfill closure and post-closure expenditures. The increase in current income tax expense is entirely attributable to the Canadian segment. The conversion from an income trust to a corporation effectively eliminated the Canadian segments ability to shelter taxable income beyond its available loss carryforwards, which are being eroded at a more vigorous pace since conversion. The Company's change in dividend policy, stemming from the Company's conversion, contemplated the Company's additional cash tax obligations. The timing of remediation spending in the Company's U.S. northeast segment is the principal reason for the increase in landfill closure and post-closure expenditures.

Capital and landfill purchases

Capital and landfill purchases characterized as replacement and growth expenditures are as follows:



Three months ended March 31
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2009 2008 Change
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Replacement $ 15,523 $ 8,929 $ 6,594
Growth 9,598 12,480 (2,882)
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Total $ 25,121 $ 21,409 $ 3,712
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Capital and landfill purchases - replacement

Capital and landfill purchases characterized as "replacement expenditures", represents the outlay of cash to sustain current cash flows and are funded from free cash flow(B). Replacement expenditures may include some or all of the following: the replacement of existing capital assets, including vehicles, equipment, containers, compactors, furniture, fixtures and computer equipment. Replacement expenditures also include all landfill construction spending for the Company's operating landfills, which is principally comprised of cell construction.

Excluding the impact of foreign currency exchange, replacement expenditures increased. The Canadian segment represented a significant portion of the increase, which is due in large part to the timing of landfill cell construction, with the balance attributable to working capital adjustments. The U.S. segment increase is also on account of the timing of landfill cell construction and working capital adjustments.

Capital and landfill purchases - growth

Capital and landfill purchases characterized as "growth expenditures", represents the outlay of cash to generate new or future cash flows and are generally funded from free cash flow(B). Growth expenditures may include some or all of the following: vehicles, equipment, containers, compactors, furniture, fixtures and computer equipment to support new contract wins and organic business growth.

Net of foreign currency exchange, growth expenditures declined. In Canada and the U.S., the decline in growth expenditures is due in large part to a decline in capital required to service new residential contract wins which commenced in 2008.

Readers are reminded that revenue, EBITDA(A), and cash flow contributions derived from vehicles, equipment and container growth expenditures will materialize over the assets useful life.

Dividends and Distributions

(all amounts are in thousands, except per share and PPS amounts)

2009

In conjunction with the Company's conversion from an income trust to a corporation, the Company's expected record and payment dates for its regular dividends, in 2009, are as follows:



Expected regular dividend schedule (payable quarterly)

Dividend
amounts
per share
Record date Payment date and PPS
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March 31, 2009 April 15, 2009 $ 0.125
June 30, 2009 July 15, 2009 0.125
September 30, 2009 October 15, 2009 0.125
December 31, 2009 January 15, 2010 0.125
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Total $ 0.500
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In conjunction with the Company's conversion from an income trust to a corporation, the Company's expected record and payment dates for its special dividends, payable only in 2009, are as follows:



Expected special dividend schedule (payable quarterly)

Dividend
amounts
per share
Record date Payment date and PPS
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March 31, 2009 April 15, 2009 $ 0.125
June 30, 2009 July 15, 2009 0.125
September 30, 2009 October 15, 2009 0.125
December 17, 2009 December 31, 2009 0.125
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Total $ 0.500
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2008

The Company's predecessor declared distributions and dividends to trust unit and participating preferred shareholders of record for the period from January to March 2008 totaling $31,227, representing a monthly payout of $0.1515 per trust unit and PPS.

Long-term debt

Summarized details of the Company's long-term debt facilities at March 31, 2009 are as follows:



Letters of
credit (not
reported as
long-term
debt on the
Available Consolidated Available
lending Facility drawn Balance capacity
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Canadian long-term debt
facilities - stated in
Canadian dollars
Senior secured debentures,
series A $ 47,000 $ 47,000 $ - $ -
Senior secured debentures,
series B $ 58,000 $ 58,000 $ - $ -
Revolving credit facility $ 305,000 $ 136,000 $ 24,916 $ 144,084

U.S. long-term debt
facilities - stated in U.S.
dollars
Term loan $ 195,000 $ 195,000 $ - $ -
Revolving credit facility $ 588,500 $ 276,000 $ 126,903 $ 185,597
IRBs $ 104,000 $ 104,000 $ - $ -


Senior secured debentures, series A

The Company plans to draw on its available Canadian revolving credit facility capacity to repay its senior secured series A debentures which mature on June 26, 2009. Drawing on the revolving credit facility has no impact on the Canadian segments funded debt to EBITDA(A) covenant, as this covenant includes both revolving credit facility drawings and senior secured debenture borrowings in its determination. If interest rates on variable rate lending remain at current levels, the Company will enjoy an interest expense savings of approximately 4.0% on $47,000 of borrowings from the date of repayment through the balance of 2009.

U.S. term loan and revolving credit facility

Effective March 31, 2009, the funded debt to EBITDA(A) covenant declined to a maximum of 4.0 times. Concurrently the Company's long-term U.S. debt facility precludes the U.S. corporation from paying dividends should the funded debt to EBITDA(A) ratio exceed 3.9 times, which is a decline from the previous threshold of 4.15 times.

Long-term debt to EBITDA(A)

At March 31, 2009, the Company is not in default of its long-term debt facility covenants. The Company's long-term debt to EBITDA(A) covenant obligations are not subject to foreign currency exchange fluctuations. Accordingly, holding the foreign currency rate between Canada and the U.S. at parity, results in a long-term debt to EBITDA(A) ratio of 2.71 times. Readers are reminded that contributions to EBITDA(A) from acquisitions completed within the last twelve months are not included in the foregoing ratio and that the Company has two revolving credit facilities to support its Canadian and U.S. segment operations which require financial covenant tests to be prepared independently.

Funded debt to EBITDA(A)

At March 31, 2009, long-term debt to EBITDA(A) for Canada and the U.S., as defined and calculated in accordance with the underlying Canadian and U.S. long-term debt facility covenants, are as follows:



Canada U.S.
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Funded debt to EBITDA(A) 1.96 3.44
Funded debt to EBITDA(A) maximum (2) 2.75 4.00

Notes:
(2) The U.S. long-term debt facility funded debt to EBITDA(A) covenant
contractually declined to a maximum of 4.0 on March 31, 2009 from a
maximum of 4.25 at December 31, 2008. Concurrently, the U.S. long-term
debt facility precludes the U.S. corporation from paying dividends
should the funded debt to EBITDA(A) ratio exceed 3.9 (December 31, 2008
- 4.15). The Company expects to fund all, or a significant portion of,
its 2009 dividend payments from its Canadian operations and has applied
the net proceeds from its offering in March 2009 to repay U.S. revolving
credit facility advances.


Definitions of EBITDA and free cash flow

(A) All references to "EBITDA" in this press release are to "income before the following" on the consolidated statement of operations and comprehensive income. "Income before the following" excludes some or all of the following: "amortization, interest on long-term debt, financing costs, net gain or loss on sale of capital and landfill assets, net foreign exchange gain or loss, net gain or loss on financial instruments, other expenses, and income taxes". EBITDA is a term used by the Company that does not have a standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and is therefore unlikely to be comparable to similar measures used by other issuers. EBITDA is a measure of the Company's operating profitability, and by definition, excludes certain items as detailed above. These items are viewed by management as either non-cash (in the case of amortization, certain financing costs, net gain or loss on financial instruments, net foreign exchange gain or loss, and future income taxes) or non-operating (in the case of interest on long-term debt, net gain or loss on sale of capital and landfill assets, certain financing costs, other expenses, and current income taxes). EBITDA is a useful financial and operating metric for management, the Company's Board of Directors, and its lenders, as it represents a starting point in the determination of free cash flow(B). The underlying reasons for exclusion of each item are as follows:

Amortization - as a non-cash item amortization has no impact on the determination of free cash flow (B).

Interest on long-term debt - interest on long-term debt is a function of the Company's debt/equity mix and interest rates; as such, it reflects the treasury/financing activities of the Company and represents a different class of expense than those included in EBITDA.

Financing costs - financing costs are a function of the Company's treasury/financing activities and represents a different class of expense than those included in EBITDA.

Net gain or loss on sale of capital and landfill assets - proceeds from sale of capital and landfill assets are either reinvested in additional or replacement capital or landfill assets or used to repay the Company's revolving credit facility.

Net foreign exchange gain or loss - as non-cash items, foreign exchange gains or losses have no impact on the determination of free cash flow(B).

Net gain or loss on financial instruments - as non-cash items, gains or losses on financial instruments have no impact on the determination of free cash flow(B).

Other expenses - other expenses typically represent amounts paid to certain management of acquired companies who are retained by the Company. These expenses are not considered an expense indicative of continuing operations. Accordingly, other expenses represent a different class of expense than those included in EBITDA.

Income taxes - income taxes are a function of tax laws and rates and are affected by matters which are separate from the daily operations of the Company.

EBITDA should not be construed as a measure of income or of cash flows. The reconciling items between EBITDA and net income (loss) are detailed in the consolidated statement of operations and comprehensive income beginning with "income before the following" and ending with "net income (loss)".

(B) The Company has adopted a measurement called "free cash flow" to supplement net income (loss) as a measure of operating performance. Free cash flow is a term which does not have a standardized meaning prescribed by GAAP, is prepared before dividends and distributions declared, and is therefore unlikely to be comparable to similar measures used by other issuers. The objective of presenting this non-GAAP measure is to align the Company's disclosure with disclosures presented by other U.S. based companies in the waste industry, to assess the Company's primary sources and uses of cash flow, and to assess the Company's ability to sustain its dividend. All references to "free cash flow" in this press release have the meaning set out in this note.

Forward-looking statements

This document may contain forward-looking statements relating to the operations of the Company or to the environment in which it operates, which are based on estimates, forecasts and projections. Forward-looking information is not a guarantee of future performance and involves risks and uncertainties that are difficult to predict, or are beyond management's control. A number of factors could cause actual outcomes and results to differ materially from those estimated, forecast or projected. These factors include those set forth in the Fund's Annual Information Form ("AIF") for the year ended December 31, 2008. Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking information contained herein is based on what management believes to be reasonable assumptions, users are cautioned that actual results may differ. Management disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

The Company, through its operating subsidiaries, is one of North America's largest full-service waste management companies, providing non-hazardous solid waste ("waste") collection and disposal services to commercial, industrial, municipal and residential customers in five Canadian provinces and ten states, and the District of Columbia in the United States ("U.S."). The Company provides service to over 1.8 million customers with vertically integrated collection and disposal assets. The Company's Canadian segment operates under the BFI Canada brand and is Canada's second largest full-service waste management company providing vertically integrated waste collection and disposal services in the provinces of British Columbia, Alberta, Manitoba, Ontario, and Quebec. This segment provides service to 20 Canadian markets and operates five landfills, four transfer collection stations, seven material recovery facilities ("MRFs"), and one landfill gas to energy facility. The Company's U.S. south and northeast segments, collectively the U.S. segment or U.S. segments, operate under the IESI brand and provide vertically integrated waste collection and disposal services in two geographic regions: the south, consisting of various service areas in Texas, Louisiana, Oklahoma, Arkansas, Mississippi, and Missouri, and the northeast, consisting of various service areas in New York, New Jersey, Pennsylvania, Maryland., and the District of Columbia. This segment provides service to 39 U.S. markets and operates 16 landfills, 28 transfer collection stations, 11 MRFs, and one transportation operation. The Company's shares are listed on the Toronto Stock Exchange under the symbol BFC. For more information on BFI Canada Ltd., visit www.bficanada.com.



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Management will hold a conference call on Friday, May 1, 2009, at 8:30 a.m.
(ET) to discuss results for the three months ended March 31, 2009. To access
the call, participants should dial 416-644-3415 or 1-800-733-7571. The
conference call will also be webcast live at www.bficanada.com and
subsequently archived on the BFI Canada website.

A rebroadcast of the call will be available until midnight on May 15, 2009.
To access the rebroadcast, dial 416-640-1917 or 1-877-289-8525 and quote the
reservation number 21303699#.
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BFI CANADA LTD.
Consolidated Balance Sheets
March 31, 2009 (unaudited) and December 31, 2008 (in thousands of dollars)
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March 31, December 31,
2009 2008
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ASSETS

CURRENT
Cash and cash equivalents $ 11,997 $ 14,720
Accounts receivable 128,615 131,972
Other receivables 543 279
Prepaid expenses 21,932 23,998
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163,087 170,969

OTHER RECEIVABLES 1,619 482

FUNDED LANDFILL POST-CLOSURE COSTS 7,651 7,488

INTANGIBLES 141,232 146,827

GOODWILL 777,095 756,597

LANDFILL DEVELOPMENT ASSETS 10,893 10,518

CAPITAL ASSETS 495,790 500,401

LANDFILL ASSETS 766,093 747,761
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$ 2,363,460 $ 2,341,043
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LIABILITIES

CURRENT
Accounts payable $ 57,808 $ 66,293
Accrued charges 61,766 67,769
Dividends payable 19,620 2,862
Income taxes payable 4,595 1,699
Deferred revenues 13,648 13,226
Current portion of long-term debt 47,000 47,000
Landfill closure and post-closure costs 11,360 8,829
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215,797 207,678

LONG-TERM DEBT 918,615 1,022,798

LANDFILL CLOSURE AND POST-CLOSURE COSTS 69,827 62,280

OTHER LIABILITIES 19,111 18,424

FUTURE INCOME TAX LIABILITIES 73,517 69,403
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1,296,867 1,380,583
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EQUITY

NON-CONTROLLING INTEREST 243,584 241,339

SHAREHOLDERS' EQUITY 823,009 719,121
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1,066,593 960,460
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$ 2,363,460 $ 2,341,043
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BFI CANADA LTD.
Consolidated Statements of Operations and Comprehensive Income
For the periods ended March 31, 2009 and 2008 (unaudited - in thousands of
dollars, except net income per share or trust unit amounts)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
2009 2008
----------------------------------------------------------------------------

REVENUES $ 278,818 $ 244,347
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EXPENSES

OPERATING 163,357 147,148

SELLING, GENERAL AND ADMINISTRATION 37,434 30,341
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INCOME BEFORE THE FOLLOWING 78,027 66,858

AMORTIZATION 46,564 42,577

INTEREST ON LONG-TERM DEBT 11,461 13,374

FINANCING COSTS 383 -

NET (GAIN) LOSS ON SALE OF CAPITAL AND LANDFILL ASSETS (167) 40

NET FOREIGN EXCHANGE LOSS (GAIN) 104 (624)

NET LOSS ON FINANCIAL INSTRUMENTS 660 9,047

OTHER EXPENSES 37 31
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INCOME BEFORE INCOME TAXES 18,985 2,413
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INCOME TAX EXPENSE (RECOVERY)
Current 3,118 1,828
Future 3,608 (9,889)
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6,726 (8,061)
----------------------------------------------------------------------------
NET INCOME 12,259 10,474

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment 24,566 25,972
Commodity swaps designated as cash flow hedges, net of
tax (1,387) -
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COMPREHENSIVE INCOME $ 35,438 $ 36,446
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Net income per share or trust unit, basic $ 0.18 $ 0.15

Net income per share or trust unit, diluted $ 0.17 $ 0.15

Weighted average number of shares or trust units
outstanding (thousands), basic 59,306 57,568

Weighted average number of shares or trust units
outstanding (thousands), diluted 70,443 68,706



BFI CANADA LTD.
Consolidated Statements of Cash Flows
For the periods ended March 31, 2009 and 2008 (unaudited - in thousands of
dollars)
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----------------------------------------------------------------------------
2009 2008
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NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING
ACTIVITIES
OPERATING
Net income $ 12,259 $ 10,474
Items not affecting cash
Share based compensation 414 -
Write-off of landfill development assets - 728
Accretion of landfill closure and post-closure costs 924 781
Amortization of intangibles 9,009 8,035
Amortization of capital assets 22,803 19,297
Amortization of landfill assets 14,752 15,245
Net (gain) loss on sale of capital and landfill
assets (167) 40
Net loss on financial instruments 660 9,047
Future income taxes 3,608 (9,889)
Landfill closure and post-closure expenditures (1,527) (245)
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62,735 53,513
Changes in non-cash working capital items (1,757) (10,579)
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Cash generated from operating activities 60,978 42,934
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INVESTING
Acquisitions (291) (19,053)
Investment in other receivables (1,541) -
Proceeds from other receivables 140 69
Funded landfill post-closure costs (99) (390)
Purchase of capital assets (15,764) (13,537)
Purchase of landfill assets (9,357) (7,872)
Proceeds from the sale of capital and landfill assets 4,252 83
Investment in landfill development assets (308) (1,058)
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Cash utilized in investing activities (22,968) (41,758)
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FINANCING
Proceeds from long-term debt 32,888 65,217
Repayment of long-term debt (159,353) (30,617)
Common shares issued, net of issue costs 88,366 -
Dividends and distributions paid to share or
unitholders and dividends paid to
participating preferred shareholders (2,398) (31,227)
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Cash (utilized in) generated from financing
activities (40,497) 3,373
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Effect of foreign exchange changes on foreign cash
and cash equivalents (236) (319)
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NET CASH (OUTFLOW) INFLOW (2,723) 4,230
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 14,720 13,359
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 11,997 $ 17,589
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SUPPLEMENTAL CASH FLOW INFORMATION:
Cash and cash equivalents are comprised of:
Cash $ 11,996 $ 15,042
Cash equivalents 1 2,547
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$ 11,997 $ 17,589
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Cash paid (received) during the period for:
Income taxes $ (455) $ 1,365
Interest $ 11,844 $ 11,232



BFI CANADA LTD.
Consolidated Statements of Equity
For the periods ended March 31, 2009 and 2008 (unaudited - in thousands of
dollars)
----------------------------------------------------------------------------
Common Restricted Treasury Contributed
shares Trust units shares shares surplus
----------------------------------------------------------------------------
Balance at
December 31,
2008 $ 1,006,772 $ - $ (3,985) $ - $ 675
Net income
Dividends
Common shares
issued net of
issue
costs and
related tax
effect 89,901
Restricted
share expense 414
Common shares
acquired by
U.S.
long-term
incentive plan
("LTIP") (2,215)
Deferred
compensation
obligation 2,215
Foreign
currency
translation
adjustment
Commodity swaps
designated as
cash flow
hedges net of
tax
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Balance at
March 31, 2009 $ 1,096,673 $ - $ (3,985) $ - $ 1,089
----------------------------------------------------------------------------
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----------------------------------------------------------------------------
Accumulated
other Non-
comprehensive controlling
Deficit income (loss) interest Equity
----------------------------------------------------------------------------
Balance at
December 31,
2008 $ (300,538) $ 16,197 $ 241,339 $ 960,460
Net income 10,519 1,740 12,259
Dividends (16,836) (2,784) (19,620)
Common shares
issued net of
issue
costs and
related tax
effect 89,901
Restricted
share expense 414
Common shares
acquired by
U.S.
long-term
incentive plan
("LTIP") (2,215)
Deferred
compensation
obligation 2,215
Foreign
currency
translation
adjustment 21,080 3,486 24,566
Commodity swaps
designated as
cash flow
hedges net of
tax (1,190) (197) (1,387)
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Balance at
March 31, 2009 $ (306,855) $ 36,087 $ 243,584 $ 1,066,593
----------------------------------------------------------------------------
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Common Restricted Treasury Contributed
shares Trust units shares shares surplus
----------------------------------------------------------------------------
Balance at
December 31,
2007 $ - $ 1,006,751 $ - $ - $ -
Net income
Dividends
Common shares
acquired by U.S.
long-term
incentive plan
("LTIP") (2,004)
Deferred
compensation
obligation 2,004
Foreign currency
translation
adjustment
----------------------------------------------------------------------------
Balance at
March 31, 2008 $ - $ 1,006,751 $ - $ - $ -
----------------------------------------------------------------------------
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Accumulated
other Non-
comprehensive controlling
Deficit (loss) income interest Equity
----------------------------------------------------------------------------
Balance at
December 31,
2007 $(248,815) $ (128,747) $ 251,371 $ 880,560
Net income 8,776 1,698 10,474
Dividends (26,164) (5,063) (31,227)
Common shares
acquired by U.S.
long-term
incentive plan
("LTIP") (2,004)
Deferred
compensation
obligation 2,004
Foreign currency
translation
adjustment 25,972 25,972
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Balance at
March 31, 2008 $(266,203) $ (102,775) $ 248,006 $ 885,779
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