SOURCE: BWI Holdings, Inc.

BWI Holdings, Inc.

February 17, 2009 09:00 ET

BWI Holdings, Inc. Reports Profit for Third Consecutive Quarter

CALGARY, AB--(Marketwire - February 17, 2009) - BWI Holdings, Inc. (OTCBB: BWIH), operating as Budget Waste Inc., is pleased to announce the results of operations for the third fiscal quarter and eight month period ended December 31, 2008.

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 2009 we expect to continue growing our sales and improve profitability in the next fiscal year."

For the two and eight months ended December 31, 2008, the Company reported revenues of $1,738,000 and $8,339,000 respectively, compared to $4,160,000 and $12,128,000 for the three and nine months ended December 31, 2007. 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, 2008 were $681,000 and $2,488,000, respectively, representing 39.2% and 29.8% of revenue. The comparative amounts were $1,417,000 or 34.1% of revenue for the three months and $3,152,000 or 26.0% of revenue for the nine months ended December 31, 2007. 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 $658,000 for the two months ended December 31, 2008 from $1,478,000 in the three month period in 2007, a decrease of 55.5%. For the eight months ended December 31, 2008, S,G&A was down to $2,768,000 from $4,164,000 in the nine month period in 2007, a decrease of 33.5%.

Non-cash charges, such as depreciation and amortization, decreased to $223,000 in the third quarter and $861,000 in the 8 months ended December 31, 2008 from $478,000 and $1,315,000 for 2007.

The Company realized a net income of $23,000 for the third quarter and $153,000 for the eight months ended December 31, 2008. However, this was a substantial increase in profitability considering the magnitude of the losses incurred in prior years while integrating and consolidating many different companies in 2007 and 2006.

Cash used in operations during the eight months ended December 31, 2008 was roughly $297,000 which included the payment of $348,000 of trade payables as compared to $1,069,000 for the nine months ended December 31, 2007. $498,000 was used to acquire equipment and $882,000 was used to repay debt and obligations under capital leases.

A summary of the Company's operating results over the two months ended December 31, 2008 and the three months ended December 31, 2007, and the eight months ended December 31, 2008 and nine months ended December 31, 2007 are presented in the table below. Only two months for the third quarter ended December 31, 2008 have been reviewed and presented in the company's Form 10QSB as BWI affected a reverse takeover of Gray Creek Mining Inc. in the second quarter of 2008 of BWI while Gray Creek Mining Inc. had a different reporting and fiscal year end. The fiscal year end for Gray Creek Mining Inc., now BWI, has been changed to the same year end as BWI.

For presentation purposes we have added a column to the financial results table below to show the effects of adding an additional month and then comparing the same three months with the comparable period in 2007. Considering the additional month of revenue and expenses, the financial results are now more consistent with the three months ended December 31, 2007 but still show the effects of the economic downturn.

                          For the   For the   For the   For the   For the
                            Two       Three     Three     Eight     Nine
                           Months    Months    Months    Months    Months
                            Ended     Ended     Ended     Ended     Ended
                          December  December  December  December  December
                          31, 2008  31, 2008  31, 2007  31, 2008  31, 2007
                          --------  --------  --------  --------  --------
                           (000's)   (000's)   (000's)   (000's)   (000's)
                          --------  --------  --------  --------  --------
Revenue                   $  1,738  $  2,730  $  4,160  $  8,339  $ 12,128
Gross Margin              $    681  $    973  $  1,417  $  2,488  $  3,152
Gross Margin as % of
 Revenue                      39.2%     35.6%     34.1%     29.8%     26.0%

Selling & Admin Expenses  $    658  $    942  $  1,478  $  2,768  $  4,164
Selling & Admin as % of
 Revenue                      37.9%     34.5%     35.5%     33.2%     34.3%
Depreciation              $    223  $    322  $    478  $    861  $  1,315
Gain on Disposal of
 Assets                   $      0  $      0  $    541  $    441  $    541
Net Income (Loss)         $     23  $     52  $    480  $    153  ($   470)
EBITDA                    $    313  $    331  $  1,065  $  1,286  $  1,218
                          --------  --------  --------  --------  --------

Note: The results of operations for the three months ended December 31, 2008 were extracted from our internal accounting records and have not been singularly reviewed by our external accountants, nor were they required to be.

About BWI Holdings, Inc.

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

  • 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: Email Contact