SOURCE: Meridian Waste Solutions, Inc.

Meridian Waste Solutions, Inc.

May 18, 2016 12:53 ET

Meridian Waste Solutions Announces First Quarter 2016 Financial and Operating Results

Revenue Increased 147% Compared to the Prior Year

MILTON, GA--(Marketwired - May 18, 2016) - Meridian Waste Solutions, Inc. (OTCQB: MRDN) ("Meridian" or the "Company"), a vertically integrated, non-hazardous solid waste collection firm reported financial results for the three months ended March 31, 2016. 

The Company's revenue for the three months ended March 31, 2016 was $7,488,239, a 147% increase over the three months ended March 31, 2015 of $3,035,819. This increase is due to the continued growth of HTS Waste, the acquisitions of Christian Disposal and Eagle Ridge.

Gross profit percentage for the three months ended March 31, 2016 is 30%. This is an increase of approximately 3% from the three months ended March 31, 2015. The increase is significant in that it shows management's ability to improve efficiencies of operations.

The Company purchased over $2 million of new equipment while increasing long-term debt by approximately $2,377,000 during the three months ended March 31, 2016. The increase in debt was due to the Company borrowing on its revolving commitments in order to satisfy a closure/post closure bond for Eagle Ridge Landfill.

Our net revenues have been sufficient to fund our operating expenses. At March 31, 2016, we had total cash and short-term investments of $3,713,695, the majority of which was funded by our lender from the draw on the revolving commitments of $2,150,000 and $1,100,000 from a private placement stock offering.

Jeff Cosman, CEO of Meridian Waste Solutions, stated, "During the first three months of 2016, we invested heavily in state-of-the-art equipment. The most up to date equipment provides our employees with new efficiencies necessary to stay competitive. In addition to our investment in industrial infrastructure, the management team has worked extensively with the teams of Christian Disposal and Eagle Ridge to fully integrate operations and improve overall business operations. Salaries too have increase substantially; however, we intend to recruit a highly experienced executive management team that will help us improve our business lines and overall margins. We are on track to build a leading vertically integrated non-hazardous solid waste collection firm."

ABOUT MERIDIAN WASTE SOLUTIONS, INC.
Meridian Waste Solutions, Inc. (MRDN) is a company focused on solutions in the waste industry. Currently, the Company operates in St. Louis, Missouri as Meridian Waste Services, Christian Environmental Services and Meridian Waste Solutions, which serves over 65,000 residential, commercial and temporary customers in the St. Louis, MO market. In addition to a fleet of commercial, residential and temporary roll off trucks, the Company operates three transfer stations and one municipal solid waste landfill. Meridian is focused on providing unparalleled customer service in the form of long-term and short-term contracts.

For more information visit: www.meridianwastesolutions.com

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The actual results or outcomes of Meridian Waste Solutions, Inc. may differ materially from those anticipated. Although Meridian Waste Solutions, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Meridian Waste Solutions, Inc. can provide no assurance that any of the forward-looking statements contained in this press release will prove to be accurate.

In light of the significant uncertainties and risks inherent in the forward-looking statements included in this press release, such information should not be regarded as a representation by Meridian Waste Solutions, Inc. that its objectives or plans will be achieved. Included in these uncertainties and risks are, among other things, fluctuations in operating results, general economic conditions, uncertainty regarding the results of certain legal proceedings and competition. Forward-looking statements consist of statements other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may," "intend," "expect," "will," "anticipate," "estimate" or "continue" or the negatives thereof or other variations thereon or comparable terminology. Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Meridian Waste Solutions, Inc.'s most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Meridian Waste Solutions, Inc. does not undertake an obligation to update publicly any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

   
         
CONSOLIDATED BALANCE SHEETS  
MARCH 31, 2016 AND DECEMBER 31, 2015  
             
             
Assets   March 31, 2016 (UNAUDITED)     December 31, 2015  
Current assets:                
  Cash and cash equivalents   $ 1,766,569     $ 2,729,795  
  Short-term investments     1,947,127       -  
  Accounts receivable, net of allowance     2,013,933       1,707,818  
  Prepaid expenses     393,728       427,615  
  Other current assets     88,537       52,359  
      Total current assets     6,209,894       4,917,587  
Property, plant and equipment, at cost net of accumulated depreciation     16,040,835       14,433,740  
Other assets:                
  Investment in related party affiliate     362,080       364,185  
  Deposits     10,954       10,954  
  Loan fees, net of accumulated amortization     1,115,200       1,416,697  
  Goodwill     7,234,420       7,479,642  
  Landfill assets, net of accumulated amortization     3,371,212       3,393,476  
  Customer list, net of accumulated amortization     18,636,744       19,500,362  
  Non-compete, net of accumulated amortization     145,459       155,699  
  Website, net of accumulated amortization     10,208       10,904  
      Total other assets     30,886,277       32,331,919  
      Total assets   $ 53,137,006     $ 51,683,246  
Liabilities and Shareholders' (Deficit) Equity                
Current liabilities:                
  Accounts payable   $ 1,981,859     $ 1,988,050  
  Accrued expenses     474,806       280,069  
  Notes payable, related party     359,891       359,891  
  Deferred compensation     1,036,630       996,380  
  Deferred revenue     3,045,935       2,912,264  
  Convertible notes due related parties, includes put premiums     15,065       15,065  
  Contingent liability     1,000,000       1,000,000  
  Derivative liability - stock warrants     2,640,000       2,820,000  
  Current portion - long term debt     268,994       417,119  
      Total current liabilities     10,823,180       10,788,838  
Long term liabilities:                
  Asset retirement obligation     245,428       200,252  
  Long term debt, net of current     42,964,192       40,587,493  
      Total long term liabilities     43,209,620       40,787,745  
      Total liabilities     54,032,800       51,576,583  
Shareholders' equity:                
  Preferred Series A stock, par value $.001, 51 shares authorized, issued and outstanding     -       -  
  Preferred Series B stock, par value $.001, 71,210 shares authorized, issued and outstanding     71       71  
  Common stock, par value $.025, 75,000,000 shares authorized, 24,537,982 and 21,038,650 share issued and outstanding, respectively     613,449       525,966  
  Treasury stock, at cost, 230,000 shares     (224,250 )     (224,250 )
  Additional paid in capital     32,961,418       27,624,492  
  Accumulated deficit     (34,246,482 )     (27,819,616 )
      Total shareholders' (deficit) equity     (895,794 )     106,663  
      Total liabilities and shareholders' equity   $ 53,137,006     $ 51,683,246  
                 
   
         
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS  
FOR THE THREE MONTHS ENDING MARCH 31, 2016 AND 2015  
         
             
    Three months ended  
    March 31, 2016 (UNAUDITED)     March 31, 2015 (UNAUDITED)  
Revenue                
  Services   $ 7,488,239     $ 3,035,819  
      7,488,239       3,035,819  
      Total revenue                
Cost of sales and services                
  Cost of sales and services     4,469,898       1,833,058  
  Depreciation     757,089       381,576  
      Total cost of sales and services     5,226,987       2,214,634  
Gross Profit     2,261,252       821,185  
Expenses                
  Bad debt expense     44,589       2,738  
  Compensation and related expense     4,230,768       2,145,907  
  Depreciation and amortization     950,317       725,612  
  Selling, general and administrative     2,191,571       513,666  
      Total expenses     7,417,245       3,387,923  
Other income (expenses):                
  Miscellaneous income     6,700       1,097  
  Loss on disposal of assets     (1,451 )     -  
  Unrealized gain (loss) on interest rate swap     -       3,071  
  Unrealized gain on change in fair value of derivative liability     180,000       -  
  Loss on extinguishment of debt     -       -  
  Loss from proportionate share of equity method investment     (2,105 )     -  
  Recapitalization expense     -       -  
  Unrealized gain on investment     -       -  
  Interest income     2,139       -  
  Interest expense     (1,456,156 )     (190,076 )
      Total other expenses     (1,270,873 )     (185,908 )
Net loss   $ (6,426,866 )   $ (2,752,646 )
Basic net loss per share   $ (0.30 )   $ (0.25 )
Weighted average number of shares outstanding                
(Basic and Diluted)     21,680,019       11,114,873  
                 
   
             
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS  
FOR THE THREE MONTHS ENDING MARCH 31, 2016 AND 2015  
   
    Periods ending  
    March 31, 2016 (UNAUDITED)     March 31, 2015 (UNAUDITED)  
                 
Cash flows from operating activities:                
  Net loss   $ (6,426,866 )   $ (2,752,646 )
    Adjustments to reconcile net loss to net cash (used in) provided from operating activities:                
      Depreciation and amortization     1,707,406       1,107,189  
      Interest accretion on landfill liabilities     45,176          
      Amortization of capitalized loan fees & debt discount     413,639       -  
      Unrealized gain on swap agreement     -       (3,072 )
      Unrealized gain on derivatives     (180,000 )     -  
      Stock issued to vendors for services     778,985       260,325  
      Stock issued to employees as incentive compensation     3,545,422       1,486,265  
      Loss from proportionate share of equity investment     2,105          
      Loss on disposal of equipment     1,451       -  
      Changes in working capital items net of acquisitions:                
        Accounts receivable, net of allowance     (306,115 )     143,253  
        Prepaid expenses and other current assets     (2,291 )     (89,989 )
        Accounts payable and accrued expenses     188,546       122,276  
        Deferred compensation     40,250       170,000  
        Deferred revenue     133,671       30,927  
        Other current liabilities     -       (340,044 )
  Net cash (used in) provided from operating activities     (58,620 )     134,484  
  Cash flows from investing activities:                
  Landfill additions / ARO adjustments     (29,669 )        
  Acquisition of property, plant and equipment     (2,436,439 )     (295,913 )
  Purchases of short-term investments     (1,947,127 )        
  True up related to acquisition     245,222          
  Proceeds from sale of property, plant and equipment     46,975       -  
  Net cash used in investing activities     (4,121,039 )     (295,913 )
Cash flows from financing activities:                
  Proceeds from loans     2,150,000       -  
  Proceeds from issuance of common stock     1,100,000       -  
  Principle payments on notes payable     (33,567 )     (489,286 )
  Proceeds from line of credit     -       750,000  
  Net cash provided from financing activities     3,216,433       260,714  
Net change in cash     (963,226 )     99,285  
Beginning cash     2,729,795       438,907  
Ending cash   $ 1,766,569     $ 538,192  
Supplemental Disclosures of Cash Flow Information:                
Cash paid for interest   $ 997,341     $ 272,840  

Contact Information

  • Investor Contact:
    Christine J. Petraglia
    Managing Director, Investor Relations
    PCG Advisory Group
    646-731-9817
    www.pcgadvisory.com

    Media Contact:
    Sean Leous
    Managing Director, Public Relations
    PCG Advisory Group
    646-863-8998