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Progressive Waste Solutions Ltd. Reports Results for the Three Months Ended March 31, 2012

Friday, April 27, 2012

Progressive Waste Solutions Ltd. Reports Results for the Three Months Ended March 31, 201207:00 EDT Friday, April 27, 2012TORONTO, ONTARIO--(Marketwire - April 27, 2012) -Progressive Waste Solutions Ltd. (the "Company") (TSX:BIN)(NYSE:BIN) reported financial results for the three months ended March 31, 2012. First quarter consolidated revenue growth of 3.6% to $438.3 million Adjusted EBITDA(A) of $116.3 million Reaffirms fiscal year 2012 outlook for revenue of $1.88 to $1.91 billion, adjusted EBITDA(A) of $535 to $550 million and free cash flow(B) of $220 to $240 million, excluding internal infrastructure investmentManagement Commentary(All amounts are in United States ("U.S.") dollars, unless otherwise stated)"The results of our first quarter were in line with our expectations and our performance is on track with our outlook for 2012. Our 2012 guidance anticipated lower comparative first quarter results due in large part to the rollover impact of the weak economic environment in the U.S. northeast that we faced in the latter part of 2011. As we indicated, our plans also called for a year with more back-end loaded special waste volumes compared with last year and, in fact, we are already seeing more special waste activity in the second quarter of the year," said Joseph Quarin, Vice Chairman and Chief Executive Officer, Progressive Waste Solutions Ltd. "We achieved solid total revenue growth, with reported revenues increasing 3.6% to $438.3 million, despite the impact of lower recycled fiber pricing and less special waste activity in parts of our U.S. operations relative to the quarter a year ago. Strategic "tuck-in" acquisitions that we completed in 2011 and the first quarter of 2012 contributed to our results, as did strong results in our consolidated commercial and residential collection service lines. Consolidated core price increased 1.0% and volumes declined 0.9%. Higher core price and volume in our Canadian segment and higher core price in our U.S. south segment were offset by continued softness in our U.S. northeast segment. Transfer station and landfill volumes and collection pricing in this segment were lower in the first quarter of 2012 compared to the first quarter a year ago. However, we are pleased to see early signs of pricing stability in the U.S. northeast on a sequential basis. "Adjusted EBITDA(A) of $116.3 million, in line with our expectations, and an adjusted EBITDA(A) margin of 26.5%, were affected most significantly by the combination of lower recycled commodity and special waste revenues, which are both high-margin contributors to adjusted EBITDA(A) and therefore affected our first quarter results disproportionately. In addition, the impact of "tuck-in" acquisitions, higher diesel fuel prices, one additional operating day in the quarter and non-recurring professional services fees also contributed to the decline in adjusted EBITDA(A) comparatively. Free cash flow(B) of $43.7 million, also in line with expectations, reflects the timing of higher capital and landfill expenditures in the period."Mr. Quarin continued, "We are reaffirming our outlook for 2012, which includes revenue of $1.88 to $1.91 billion, adjusted EBITDA(A) of $535 to $550 million, and free cash flow(B) of $220 to $240 million, excluding additional internal infrastructure investment of $40 to $50 million. Our outlook assumes the average pricing we are currently obtaining for recycled fiber commodities, but anticipates a higher level of special waste volumes over the balance of the fiscal year. We remain focused on our disciplined program for enhancing organic growth and our "tuck-in" acquisition program continues to be active. We look forward to executing on our plans for 2012, which will contribute meaningfully to our performance in 2013 and beyond."Reported revenues increased $15.4 million or 3.6% from $422.9 million in the first quarter of 2011 to $438.3 million in the first quarter of 2012. Expressed on a reportable basis, and assuming Canadian and U.S. dollar parity, revenues increased 4.3% quarter over quarter due in large part to the 4.6% increase attributable to acquisitions, while higher overall pricing and fuel surcharges were offset by lower volumes and recycled fiber prices. Adjusted EBITDA(A) was $116.3 million, or (5.6)% lower, in the first quarter of 2012 versus $123.3 million in the same quarter a year ago. Excluding the impact of foreign currency ("FX") and the decline in recycled fiber pricing, adjusted EBITDA(A) would have been $122.5 million in the current quarter. The first quarter of 2012 also included one additional operating day which added $2.2 million of operating expense without any additional revenue contribution in our commercial and residential service lines. Adjusted operating income(A) was $53.0 million, or (14.3)% lower, in the quarter compared to $61.9 million in the same period last year. Adjusted net income(A) was $24.1 million, or $0.20 per weighted average diluted share ("diluted share"), compared to $28.2 million, or $0.23 per diluted share in the comparative period. Share repurchases in the quarter totalled $29.3 million and dividends paid to shareholders totalled $14.8 million. Together, this represents a combined $44.1 million return to shareholders in the first quarter of 2012 compared to $38.9 million a year ago. Other highlights for the three months ended March 31, 2012In March 2012, we received a modification to our operating permit for the Ridge landfill that increases the amount of annual waste allowable at the site from 0.9 to 1.3 million tonnes annually. We repurchased and cancelled approximately 1.37 million common shares in the quarter. At the close of the period, there were 116.9 million common shares outstanding. Progressive Waste Solutions Ltd.Condensed Consolidated Statements of Operations and Comprehensive Income or Loss("Statement of Operations and Comprehensive Income or Loss")For the periods ended March 31, 2012 and 2011 (unaudited - stated in accordance with accounting principles generally accepted in the U.S. and in thousands of U.S. dollars, except share and net income or loss per share amounts) Three months ended20122011REVENUES$438,275$422,850EXPENSESOPERATING265,341246,805SELLING, GENERAL AND ADMINISTRATION59,29258,607RESTRUCTURING-847AMORTIZATION63,65462,819NET GAIN ON SALE OF CAPITAL ASSETS(384)(1,423)OPERATING INCOME50,37255,195INTEREST ON LONG-TERM DEBT14,26416,518NET FOREIGN EXCHANGE LOSS (GAIN)7(3)NET GAIN ON FINANCIAL INSTRUMENTS(545)(1,926)OTHER EXPENSES53186INCOME BEFORE INCOME TAX EXPENSE AND NET LOSS FROM EQUITY ACCOUNTED INVESTEE36,593 40,420INCOME TAX EXPENSECurrent10,42511,698Deferred4,0955,62014,52017,318NET LOSS FROM EQUITY ACCOUNTED INVESTEE44NET INCOME22,06923,098Foreign currency translation adjustment9,62313,974Derivatives designated as cash flow hedges, net of income tax ($388) (2011 - ($1,835))721 3,407Settlement of derivatives designated as cash flow hedges, net of income tax ($137) (2011 - ($132))256 245OTHER COMPREHENSIVE INCOME10,60017,626COMPREHENSIVE INCOME$32,669$40,724Net income per weighted average share, basic$0.19$0.19Net income per weighted average share, diluted$0.19$0.19Weighted average number of shares outstanding (thousands), basic117,887121,697Weighted average number of shares outstanding (thousands), diluted117,887121,697Progressive Waste Solutions Ltd. Condensed Consolidated Balance Sheets ("Balance Sheet")March 31, 2012 (unaudited) and December 31, 2011 (stated in accordance with accounting principles generally accepted in the United States of America ("U.S.") and in thousands of U.S. dollars except issued and outstanding share amounts)March 31,December 31,20122011ASSETSCURRENTCash and cash equivalents$11,000$14,143Accounts receivable198,171212,099Other receivables388414Prepaid expenses37,44131,484Restricted cash454452Other assets4,0261,972251,480260,564OTHER RECEIVABLES291376FUNDED LANDFILL POST-CLOSURE COSTS9,4249,200INTANGIBLES250,396257,731GOODWILL781,747774,409LANDFILL DEVELOPMENT ASSETS17,31815,869DEFERRED FINANCING COSTS18,42719,983CAPITAL ASSETS780,477776,058LANDFILL ASSETS959,899958,792INVESTMENT IN EQUITY ACCOUNTED INVESTEE4,0413,973OTHER ASSETS629649$3,074,129$3,077,604LIABILITIESCURRENTAccounts payable$98,922$115,292Accrued charges105,164124,496Dividends payable16,38614,540Income taxes payable3,65710,693Deferred revenues18,27417,645Current portion of long-term debt1,5001,500Landfill closure and post-closure costs8,9839,468Other liabilities3,4743,484256,360297,118LONG-TERM DEBT1,351,9741,311,593LANDFILL CLOSURE AND POST-CLOSURE COSTS95,40692,034OTHER LIABILITIES7,3527,484DEFERRED INCOME TAXES81,84276,2341,792,9341,784,463SHAREHOLDERS' EQUITYCommon shares (authorized - unlimited, issued and outstanding - 116,685,167 (December 31, 2011 - 118,040,683))1,802,285 1,824,231Restricted shares (issued and outstanding - 252,150 (December 31, 2011 - 252,150))(5,353)(5,353)Additional paid in capital3,3752,789Accumulated deficit(467,961)(466,775)Accumulated other comprehensive loss(51,151)(61,751)Total shareholders' equity1,281,1951,293,141$3,074,129$3,077,604Progressive Waste Solutions Ltd.Condensed Consolidated Statements of Cash Flows ("Statement of Cash Flows")For the periods ended March 31, 2012 and 2011 (unaudited - stated in accordance with accounting principles generally accepted in the U.S. and in thousands of U.S. dollars)Three months ended20122011NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIESOPERATINGNet income$22,069$23,098Items not affecting cashRestricted share expense734174Accretion of landfill closure and post-closure costs1,3081,269Amortization of intangibles12,92812,164Amortization of capital assets33,89932,449Amortization of landfill assets16,82718,206Interest on long-term debt (amortization of deferred financing costs)1,6901,353Net gain on sale of capital assets(384)(1,423)Net gain on financial instruments(545)(1,926)Deferred income taxes4,0955,620Net loss from equity accounted investee44Landfill closure and post-closure expenditures(1,534)(1,701)Changes in non-cash working capital items(25,743)(34,633)Cash generated from operating activities65,34854,654INVESTINGAcquisitions(6,544)(12,380)Restricted cash deposits(2)-Proceeds from other receivables124115Funded landfill post-closure costs(86)(98)Purchase of capital assets(37,386)(15,902)Purchase of landfill assets(12,705)(9,507)Proceeds from the sale of capital assets7192,673Investment in landfill development assets(2,266)(622)Cash utilized in investing activities(58,146)(35,721)FINANCINGPayment of deferred financing costs(55)(1,020)Proceeds from long-term debt98,941103,483Repayment of long-term debt(65,845)(84,816)Proceeds from the exercise of stock options310292Repurchase of common shares(29,308)(23,500)Dividends paid to shareholders(14,769)(15,429)Cash utilized in financing activities(10,726)(20,990)Effect of foreign currency translation on cash and cash equivalents381425NET CASH OUTFLOW(3,143)(1,632)CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR14,14313,406CASH AND CASH EQUIVALENTS, END OF PERIOD$11,000$11,774SUPPLEMENTAL CASH FLOW INFORMATION:Cash and cash equivalents are comprised of:Cash$10,998$11,773Cash equivalents21$11,000$11,774Cash paid during the period for:Income taxes$16,510$15,043Interest$13,844$16,296FX Impact on Consolidated ResultsThe following table has been prepared to assist readers in assessing the FX impact on selected results for the three months ended March 31, 2012.Three months endedMarch 31, 2011March 31, 2012March 31, 2012March 31, 2012March 31, 2012(unaudited)(unaudited)(unaudited)(unaudited)(unaudited) (as reported)(organic, acquisition and other non-operating changes)(holding FX constant with the comparative period)(FX impact)(as reported)Condensed Consolidated Statement of OperationsRevenues$ 422,850$ 18,109$ 440,959$ (2,684)$ 438,275Operating expenses246,80520,012266,817(1,476)265,341Selling, general and administration58,6071,07359,680(388)59,292Restructuring expenses847(847)---Amortization62,8191,18564,004(350)63,654Net gain on sale of capital assets(1,423)1,037(386)2(384)Operating income55,195(4,351)50,844(472)50,372Interest on long-term debt16,518(2,180)14,338(74)14,264Net foreign exchange (gain) loss(3)107-7Net gain on financial instruments(1,926)1,378(548)3(545)Other expense186(132)54(1)53Income before net income taxexpense and net loss fromequity accounted investee40,420(3,427)36,993(400)36,593Net income tax expense17,318(2,670)14,648(128)14,520Net loss from equity accounted investee4-4-4Net income$ 23,098$ (757)$ 22,341$ (272)$ 22,069Adjusted EBITDA (A)(*)$ 123,271$ (6,115)$ 117,156$ (848)$ 116,308Adjusted operating income (A)(*)$ 61,875$ (8,336)$ 53,539$ (501)$ 53,038Adjusted net income (A)(*)$ 28,229$ (3,863)$ 24,366$ (300)$ 24,066Free cash flow (B)(*)$ 73,240$ (29,208)$ 44,032$ (321)$ 43,711Note:(*) Prior period amounts have been adjusted to conform to the current period's presentation.(**) Please refer to the free cash flow section for further details.Other Financial Highlights(all amounts are in thousands of U.S. dollars, excluding per share amounts) Three months ended March 3120122011Operating income$50,372$55,195Transaction and related costs - SG&A288315Fair value movements in stock options - SG&A1,6445,344Restricted share expense - SG&A734174Restructuring expenses-847Adjusted operating income53,03861,875Net gain on sale of capital assets(384)(1,423)Amortization63,65462,819Adjusted EBITDA$116,308$123,271Net income$22,069$23,098Transaction and related costs - SG&A288315Fair value movements in stock options - SG&A1,6445,344Restricted share expense - SG&A734174Restructuring expenses-847Net gain on financial instruments(545)(1,926)Other expenses53186Net income tax expense or (recovery)(177)191Adjusted net income$24,066$28,229Adjusted net income per weighted average share, basic(A)(*)$0.20$0.23Adjusted net income per weighted average share, diluted(A)(*)$0.20$0.23Replacement and growth expendituresReplacement expenditures$36,374$18,042Growth expenditures13,7177,367Total replacement and growth expenditures$50,091$25,409Free cash flow(B)Cash generated from operating activities (statement of cash flows)$65,348$54,654Free cash flow(B)$43,711$73,240Free cash flow (B)per weighted average share, diluted$0.37$0.60DividendsDividends declared (common shares)$16,351$15,305Note:(*)Prior period amounts have been adjusted to conform to the current period's presentation.Segment Highlights - Additional details regarding the FX impact on our comparative results can be found in the Foreign Currency sections of this report.(all amounts are in thousands of U.S. dollars, unless otherwise stated)Three months ended March 3120112012Change2012Change(as reported)(holding FX constant with the comparative period)(as reported)Revenues $ 422,850$ 440,959$18,109$438,275$15,425Canada $ 171,920$ 176,602$4,682$173,918$1,998U.S. south$ 168,175$ 187,407$19,232$187,407$19,232U.S. northeast$ 82,755$ 76,950$(5,805)$76,950$(5,805)Operating expenses$ 246,805$ 266,817$20,012$265,341$18,536Canada$ 92,629$ 97,114$4,485$95,638$3,009U.S. south$ 100,282$ 116,130$15,848$116,130$15,848U.S. northeast$ 53,894$ 53,573$(321)$53,573$(321)SG&A (as reported)$ 58,607$ 59,680$1,073$59,292$685Canada$ 15,584$ 16,159$575$15,914$330U.S. south$ 16,783$ 19,599$2,816$19,599$2,816U.S. northeast$ 8,147$ 7,997$(150)$7,997$(150)Corporate$ 18,093$ 15,925$(2,168)$15,782$(2,311)EBITDA(A)(as reported)$ 117,438$ 114,462$(2,976)$113,642$(3,796)Canada$ 63,707$ 63,329$(378)$62,366$(1,341)U.S. south$ 51,110$ 51,678$568$51,678$568U.S. northeast$ 20,714$ 15,380$(5,334)$15,380$(5,334)Corporate$ (18,093)$ (15,925)$2,168$(15,782)$2,311Adjusted SG&A$ 52,774$ 56,986$4,212$56,626$3,852Canada$ 15,584$ 16,159$575$15,914$330U.S. south$ 16,783$ 19,599$2,816$19,599$2,816U.S. northeast$ 8,147$ 7,997$(150)$7,997$(150)Corporate$ 12,260$ 13,231$971$13,116$856Adjusted EBITDA(A)$ 123,271$ 117,156$(6,115)$116,308$(6,963)Canada$ 63,707$ 63,329$(378)$62,366$(1,341)U.S. south$ 51,110$ 51,678$568$51,678$568U.S. northeast$ 20,714$ 15,380$(5,334)$15,380$(5,334)Corporate$ (12,260)$ (13,231)$(971)$(13,116)$(856)RevenuesGross revenue by service typeThe table below presents gross revenue by service type prepared on a consolidated basis and includes the impact of FX.Three months ended2012%2011%Commercial$162,36237.0$154,54436.5Industrial76,56517.575,64317.9Residential101,48923.290,79521.5Transfer and disposal140,86632.1141,55333.5Recycling and other22,1415.122,0915.2Gross revenues503,423114.9484,626114.6Intercompany(65,148)(14.9)(61,776)(14.6)Revenues$438,275100.0$422,850100.0Revenue growth or decline components - expressed in percentages and excluding FXThe table below has been prepared using reported revenues for 2012 and gross revenues for 2011. The table has also been prepared assuming Canadian and U.S. dollar parity. For 2011, the amounts are presented as if Waste Services, Inc.'s operations were combined with ours for the three months ended March 31, 2010.Three months ended20122011(*)PriceCore price1.01.7Fuel surcharges0.81.0Recycling and other(1.2)0.6Total price growth0.63.3Volume(0.9)0.6Total organic (decline) growth(0.3)3.9Acquisitions4.67.0Total growth excluding FX4.310.9FX(0.7)Total growth including FX3.6Note:(*)Prior period amounts have been adjusted to conform to the current period's presentation.Free cash flow(B)Purpose and objectiveThe purpose of presenting this non-GAAP measure is to provide similar disclosures presented by other U.S. publicly listed companies in our industry and to provide investors and analysts with an additional measure of our value and liquidity. We use this non-GAAP measure to assess our relative performance to our peers and to assess the availability of funds for growth investment, share repurchases, debt repayment or dividend increases.Free cash flow(B)- cash flow approach Three months ended March 312012(*)2011ChangeCash generated from operating activities$65,348$54,654$10,694Operating and investingStock option expense1,6445,344(3,700)Acquisition and related costs288315(27)Restructuring expenses-847(847)Other expenses53186(133)Changes in non-cash working capital items25,74334,633(8,890)Capital and landfill asset purchases(50,091)(25,409)(24,682)Proceeds from the sale of capital assets7192,673(1,954)FinancingNet realized foreign exchange loss (gain)7(3)10Free cash flow(B)$43,711$73,240$(29,529)Note:(*)Capital and landfill asset purchases include infrastructure expenditures of approximately $3,600.Free cash flow(B)- adjusted EBITDA(A) approachWe typically calculate free cash flow(B) using an operations approach which is similar to the calculation required by our Canadian and U.S. facilities.Three months ended March 312012(*)2011ChangeAdjusted EBITDA(A)$116,308$123,271$(6,963)Capital and landfill asset purchases(50,091)(25,409)(24,682)Proceeds from the sale of capital assets7192,673(1,954)Landfill closure and post-closure expenditures(1,534)(1,701)167Landfill closure and post-closure cost accretion expense1,3081,26939Interest on long-term debt(14,264)(16,518)2,254Non-cash interest expense1,6901,353337Current income tax expense(10,425)(11,698)1,273Free cash flow(B)$43,711$73,240$(29,529)Note:(*)Capital and landfill asset purchases include infrastructure expenditures of approximately $3,600.Long-term debt to adjusted EBITDA(A)Our adjusted EBITDA(A) ratio prepared on a combined basis, assuming FX parity, is 2.57 times.Foreign Currency(in thousands of U.S. dollars unless otherwise stated)We have elected to report our financial results in U.S. dollars. However, we earn a significant portion of our revenues and earnings in Canada. We have provided our guidance assuming parity between the Canadian and U.S. dollar. If the U.S. dollar strengthens by 10 basis points our reported revenues will decline by approximately $7,600. EBITDA(A) is similarly impacted by approximately $2,500, assuming a strengthening U.S. dollar. The impact on net income for a similar change in FX rate, results in an approximately $1,000 decline. Should the U.S. dollar weaken by 10 basis points, our reported results will improve by similar amounts.20122011Condensed Consolidated Balance SheetCondensed Consolidated Statement of Operations and Comprehensive Income or LossCondensed Consolidated Balance SheetCondensed Consolidated Statement of Operations and Comprehensive Income or LossCurrentAverageCumulative AverageCurrentAverageCumulative AverageDecember 31$ 0.9833$ 1.0109March 31 $ 1.0009$ 0.9988$ 0.9988$ 1.0290$ 1.0142$ 1.0142Quarterly dividend declaredThe Company's Board of Directors declared a quarterly dividend of $0.14 Canadian per share to shareholders of record June 29, 2012. The dividend will be paid on July 16, 2012. The Company has designated these dividends as eligible dividends for the purposes of the Income Tax Act (Canada).Definitions of Adjusted EBITDA and Free cash flow(A) All references to "Adjusted EBITDA" in this document are to revenues less operating expense and SG&A, excluding certain non-operating or non-recurring SG&A expense, on the consolidated statement of operations and comprehensive income or loss. Adjusted EBITDA excludes some or all of the following: certain SG&A expenses, restructuring expenses, goodwill impairment, amortization, net gain or loss on sale of capital assets, interest on long-term debt, net foreign exchange gain or loss, net gain or loss on financial instruments, other expenses, income taxes and income or loss from equity accounted investee. Adjusted EBITDA is a term used by us that does not have a standardized meaning prescribed by U.S. GAAP and is therefore unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA is a measure of our operating profitability, and by definition, excludes certain items as detailed above. These items are viewed by us as either non-cash (in the case of goodwill impairment, amortization, net gain or loss on financial instruments, net foreign exchange gain or loss, deferred income taxes and net income or loss from equity accounted investee) or non-operating (in the case of certain SG&A expenses, restructuring expenses, net gain or loss on sale of capital assets, interest on long-term debt, other expenses, and current income taxes). Adjusted EBITDA is a useful financial and operating metric for us, our Board of Directors, and our lenders, as it represents a starting point in the determination of free cash flow(B). The underlying reasons for the exclusion of each item are as follows:Certain SG&A expenses - SG&A expense includes certain non-operating or non-recurring expenses. These expenses include transaction costs related to acquisitions, fair value adjustments attributable to stock options, restricted share expense and a non-recurring one-time charge resulting from the non-renewal of the Company's former Vice Chairman and Chief Executive Officer's agreement. These expenses are not considered an expense indicative of continuing operations. Certain SG&A costs represent a different class of expense than those included in adjusted EBITDA. Restructuring expenses - restructuring expenses includes costs to integrate various operating locations with our own, exiting certain property and building and office leases, employee severance and employee relocation costs incurred in connection with our acquisition of WSI. These expenses are not considered an expense indicative of continuing operations. Accordingly, restructuring expenses represent a different class of expense than those included in adjusted EBITDA.Goodwill impairment - as a non-cash item goodwill impairment has no impact on the determination of free cash flow(B).Amortization - as a non-cash item amortization has no impact on the determination of free cash flow(B).Net gain or loss on sale of capital assets - proceeds from the sale of capital assets are either reinvested in additional or replacement capital assets or used to repay revolving credit facility borrowings.Interest on long-term debt - interest on long-term debt is a function of our debt/equity mix and interest rates; as such, it reflects our treasury/financing activities and represents a different class of expense than those included in adjusted EBITDA.Net foreign exchange gain or loss - as non-cash items, foreign exchange gains or losses have no impact on the determination of free cash flow(B).Net gain or loss on financial instruments - as non-cash items, gains or losses on financial instruments have no impact on the determination of free cash flow(B).Other expenses - other expenses typically represent amounts paid to certain management of acquired companies who are retained by us post acquisition and amounts paid to certain executives in respect of acquisitions successfully completed. These expenses are not considered an expense indicative of continuing operations. Accordingly, other expenses represent a different class of expense than those included in adjusted EBITDA.Income taxes - income taxes are a function of tax laws and rates and are affected by matters which are separate from our daily operations.Net income or loss from equity accounted investee - as a non-cash item, net income or loss from our equity accounted investee has no impact on the determination of free cash flow(B).(B) We have adopted a measure called "free cash flow" to supplement net income or loss as a measure of our operating performance. Free cash flow is a term which does not have a standardized meaning prescribed by U.S. GAAP, is prepared before dividends declared and shares repurchased, and may not be comparable to similar measures prepared by other companies. The purpose of presenting this non-GAAP measure is to provide disclosure similar to the disclosure provided by other U.S. publicly listed companies in our industry and to provide investors and analysts with an additional measure of our value and liquidity. We use this non-GAAP measure to assess our performance relative to other U.S. publicly listed companies and to assess the availability of funds for growth investment, debt repayment, share repurchases or dividend increases. All references to "free cash flow" in this document have the meaning set out in this note. About Progressive Waste Solutions Ltd. As North America's third largest full-service waste management company, we provide non-hazardous solid waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in 12 U.S. states and the District of Columbia and six Canadian provinces. We serve our customers with vertically integrated collection and disposal assets. Progressive Waste Solutions Ltd.'s shares are listed on the New York and Toronto Stock Exchanges under the symbol BIN. To find out more about Progressive Waste Solutions, visit our website at www.progressivewaste.com. Management will hold a conference call on Friday, April 27, 2012, at 8:30 a.m. (ET) to discuss results for the three months ended March 31, 2012. Participants may listen to the call by dialing 1-888-300-0053, conference ID 68190909, at approximately 8:20 a.m. (ET). International or local callers should dial 647-427-3420. The call will also be webcast live at www.streetevents.com and at www.progressivewaste.com. A supplemental slide presentation will be available at www.progressivewaste.com.A replay will be available after the call until Friday, May 11, 2012, at midnight, and can be accessed by dialing 1-855-859-2056, conference ID 68190909. International or local callers can access the replay by dialing 404-537-3406. The audio webcast will also be archived at www.streetevents.com and www.progressivewaste.com.FOR FURTHER INFORMATION PLEASE CONTACT: Chaya CooperbergProgressive Waste Solutions Ltd.VP, Investor Relations and Corporate Communications(905) 532-7517chaya.cooperberg@progressivewaste.comwww.progressivewaste.com