SOURCE: BWI Holdings, Inc.

BWI Holdings, Inc.

June 05, 2009 07:00 ET

BWI Announces Fourth Quarter Results and Year End Operating Results

CALGARY, AB--(Marketwire - June 5, 2009) - BWI Holdings, Inc. (OTCBB: BWIH), operating as Budget Waste Inc. (the "Company"), is pleased to announce the results of its subsidiary's (Budget Waste Inc.) operations for the year ended March 31, 2009. All figures are in Canadian dollars and have been prepared by management. The figures have not been audited, reviewed or otherwise verified for accuracy and completeness. Audited consolidated financial statements will be presented upon completion of the audit.

Mr. Bruce Milroy, CFO, states, "On March 4, 2009 we announced that as a result of the global financial crisis and economic downturn that we would restructure and consolidate our operations. To ensure the longevity of the company and ensure that we were successful in our restructuring, we entered CCAA protection. We are now pleased to update the shareholders on the success of our restructuring, even over a limited period, and report that for the year ended March 31, 2009, we will present a significant positive net income and strong tangible assets. We will continue to restructure our operations and reduce overall costs, and as the economy improves, so will our profitability."

For the three months and year ended March 31, 2009, the Company reported revenues of $2,017,000 and $11,777,000 respectively, compared to $4,091,000 and $16,680,000 for the three months and year ended March 31, 2008. A substantial decrease but expected considering the downturn of the residential and industrial construction markets.

The gross margins for the quarter and year ended March 31, 2009 were $743,000 and $3,697,000 respectively, representing 36.8% and 31.4% of revenue. The comparative amounts were $1,281,000 or 31.3% of revenue for the three months and $4,511,000 or 27.0% of revenue for the year ended March 31, 2008. The higher gross margin percentages were more positive evidence of our cost cutting and process improvement strategies.

Selling, general and administrative ("S,G&A") expenses decreased to $685,000 for the three months ended March 31, 2009 from $2,117,000 in the three month period in 2008, a decrease of 67.6%. For the year ended March 31, 2009, S,G&A was down to $2,933,000 from $4,489,000 in the year ended March 31, 2008, a decrease of 34.7%.

Non-cash charges, such as depreciation and amortization, decreased to $224,000 in the fourth quarter and $1,242,000 in the year ended March 31, 2009 from $324,000 and $1,859,000 for 2008.

The Company realized a net income of $171,000 for the fourth quarter and $324,000 for the year ended March 31, 2009 compared to ($632,000) for the fourth quarter and ($1,308,000) for the year ended March 31, 2008. This was a substantial increase in profitability considering the magnitude of the losses incurred in prior years while integrating and consolidating many different companies acquired in 2006 and 2007.

Cash generated (used) in operations during the year ended March 31, 2009 was roughly $530,000 which included the payment of $465,000 of trade payables as compared to $(82,000) for the year ended March 31, 2008 which included an increase in trade payables of $286,000. $492,000 was used to acquire equipment and $1,225,000 was used to repay debt and obligations under capital leases.

A summary of the Company's operating results over the three months and year ended March 31, 2008 and 2009 are presented in the table below.

                                For the    For the
                                 Three      Three     For the    For the
                                 Months     Months      Year       Year
                                 Ended      Ended      Ended      Ended
                                March 31,  March 31,  March 31,  March 31,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
 All figures in Canadian
                                 (000's)    (000's)    (000's)    (000's)
                                ---------  ---------  ---------  ---------

Revenue                             2,017      4,091     11,777     16,680
Gross Margin                          743      1,281      3,697      4,511
Gross Margin as a percent of
 revenue                             36.8%      31.3%      31.4%      27.0%
Selling and Admin Expenses            685      2,117      2,933      4,489

Selling and Admin as a percent
 of revenue                          34.0%      51.7%      24.9%      26.9%
Depreciation                          224        324      1,242      1,859
Net Income (Loss)                     171       (632)       324     (1,308)
EBITDA                                466       (254)     1,958        991

Net Income per share                0.003     (0.011)     0.006     (0.023)
EBITDA per share                    0.008     (0.005)     0.035      0.018

                                ---------  ---------  ---------  ---------

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.

Budget Waste 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

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:
    Budget Waste 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: Email Contact