SOURCE: BWI Holdings, Inc.

December 19, 2008 12:53 ET

BWI Holdings, Inc. Announces Second Quarter Results

CALGARY, AB--(Marketwire - December 19, 2008) - BWI Holdings, Inc. (OTCBB: BWIH), operating as Budget Waste Inc. (the "Company"), is pleased to announce its financial results for the quarter ended October 31, 2008. Selected financial results are as follows:

                                 For the    For the               For the
                                  Three      Three     For the      Six
                                  Months     Months      Six       Months
                                  Ended      Ended      Months     Ended
                                 October   September   October   September
All amounts in $US              31, 2008   30, 2007   31, 2008   30, 2007
                                ---------  ---------  ---------  ---------
                                 (000's)    (000's)    (000's)    (000's)
                                ---------  ---------  ---------  ---------
Revenue                         $   2,976  $   4,584  $   6,600  $   7,969
Gross Margin                    $     876  $   1,231  $   1,830  $   1,749
Gross Margin as % of Revenue         29.4%      26.9%      27.7%      21.9%
Selling & Admin Expenses        $     851  $   1,372  $   2,134  $   2,638
Selling & Admin as % of Revenue      28.6%      29.9%      32.3%      33.1%
Depreciation                    $     296  $     486  $     638  $     837
Gain on Disposal of Assets      $      12  $       0  $     442  $       0
Net Income (Loss)               $      29  $    (140) $     130  $    (889)
EBITDA                          $     415  $     451  $     973  $     164
                                ---------  ---------  ---------  ---------

Mr. Jim Can, the Company's CEO, states: "We are very pleased with the progress we have made in regards to controlling our costs and processes. We are finally able to reap the benefits of combining excellent customer service with reasonable margins in a very tough economic climate. We will continue to add process improvements and strive to maintain a positive bottom line."

Unfortunately due to the downturn in the housing and industrial construction markets in Alberta over the last few months accompanied with poor inclement weather, sales are substantially down from the corresponding period in 2007. However, gross margins have increased quarter over quarter. Over the past few quarters the Company embarked on an aggressive cost cutting program and implemented an efficiency improvement plan to increase margins and stream line the delivery and driver dispatch areas. These programs were difficult to implement and took longer than expected as a result of the numerous mergers and acquisitions over the last couple of years. Now, in the second quarter of BWI's fiscal year, changed because of the takeover of Gray Creek Mining Inc., the benefits of these arduous programs are starting to take effect. Unless the economic environment continues to erode to unexpected lower levels, the Company should remain profitable.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") increased to $415,000 for the three months ended October 31, 2008 and to $973,000 for the six months ended October 31, 2008. EBITDA for the corresponding three months in 2007 was $451,000 and for the six months ended October 31, 2008 EBITDA was $164,000. We hope to maintain our EBITDA over the next few quarters as the economy continues or starts to improve. EBITDA is a non-GAAP financial measure as defined by SEC regulation G. It is most directly comparable to net income.

Over the last couple of quarters the Company has also strived to pay down outstanding trade payables and creditors and retire long term debt. To generate cash in addition to that created from operations, the Company sold off surplus equipment and land to pay off its creditors. In addition, approximately $5,420,000 of outstanding preferred shares and loans were converted to common shares. The conversion of the preferred shares and the loans will greatly conserve the Company's cash needs in the near future. The Company is now actively pursuing raising additional conventional debt to retire a great deal of the higher than normal interest rate capital leases.

BWI Holdings, 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. BWIH 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 BWIH.

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

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

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

  • 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: Email Contact