SOURCE: Budget Waste Inc.

February 27, 2008 06:00 ET

Budget Waste Inc. Releases Q3 Revenue Highlights

CALGARY, AB--(Marketwire - February 27, 2008) - Budget Waste Inc. (PINKSHEETS: BDGW) today released financial information comparing third quarter revenue to past performance.

For the nine months ended December 31, 2007, the Company reported revenues of $12,129M ("M" representing thousands), an increase of $4,882M, or 67.4%, from $7,247M in the nine months ended December 31, 2006. While the company instituted price increases during the nine months which included fuel surcharges, the greatest growth was from the effect of the acquisition of five of the thirteen companies acquired during the last two years.

Results also show revenue of $4,160M for the quarter ended December 31, 2007, an increase of $1,929M, or 86.4%, from $2,230M in the quarter ended December 31, 2006.

The gross margin for the nine months ended December 31, 2007 of $3,153M represented 26% of revenue as compared to $1,625M for the nine months ended December 31, 2006 or 22%. Efficiencies resulted from moving all vehicle repairs and maintenance from outside vendors to an in house mechanical shop. Consolidation of operations also contributed to a more positive result. The company has also made changes in driver compensation in order to decrease driver overtime.

Selling, general and administrative expenses increased from $3,417M for the nine months ended December 31, 2006 to $4,164M for the nine months ended December 31, 2007. This increase of $747M was only 22% considering revenue increased 67.4%. This is as a result of the ten acquisitions. However, the percentage of revenue for December 2007 was only 34% as compared with 47% for December 2006. The positive trend was gained from efficiencies of the consolidation of the companies. The company has also significantly decreased wages and benefits from $500M to $398M as it streamlines its administration and management.

The quarter ended December 31, 2007 also showed positive improvement of the quarter ended December 31, 2006. Overall selling, general and administrative expenses were $1,491M or 35.8% of revenue as compared to $1,105M or 50% of revenue for the periods December 31, 2007 and December 31, 2006 respectively.

For a complete third quarter report click on www.pinksheets.com go to BDGW then to "filings."

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.

For more information on Budget Waste Inc., please visit our web site at www.budgetwaste.com or contact our investor relations department at:

Budget Waste Inc.
Investor Relations
Mike Kolankowski

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

Safe Harbor Act Notice: This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, acceptance of the company's products, increased levels of competition, product and technological changes, the company's dependence upon financing and third-party suppliers, and other risks detailed from time to time in the company's federal filings, annual report, offering memorandum, or prospectus. Specifications are subject to change without notice.

Contact Information

  • Budget Waste Inc.
    Investor Relations
    Mike Kolankowski

    3915 - 61st Ave. SE.
    Calgary, AB T2C 1V5
    Ph: 403-255-2900
    Toll Free: 1-888-255-2990
    Fax: 403-255-3237
    Email Contact