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Progressive Waste Solutions Ltd. Reports Results for the Three Months Ended March 31, 2016

TORONTO, ONTARIO, Apr 27, 2016 (Marketwired via COMTEX) -- Progressive Waste Solutions Ltd. (the "Company") BIN, +0.53% (BIN) today reported its financial results for the three months ended March 31, 2016.

First quarter highlights

--  Consolidated revenues of $471.4 million, an increase of 6.0% assuming a
    foreign currency exchange rate ("FX") consistent with the prior year
    period ("constant currency").
--  Organic revenue growth of 6.6%, including price and volume growth of
    1.6% and 4.5%, respectively.
--  Adjusted EBITDA(A) of $112.3 million, an increase of 9.6% at constant
    currency. Adjusted EBITDA(A)margin of 23.8%.
--  Free cash flow(B) of $30.3 million, down 6.2% at constant currency.
--  Adjusted net income(A) per share of $0.25, consistent with the same
    period last year.


Management Commentary

(All amounts are in United States ("U.S.") dollars, unless otherwise stated)

"We delivered strong revenue growth in the first quarter on consolidated revenues of $471.4 million, up 6.0% at constant currency, and we converted this revenue growth into adjusted EBITDA(A) of $112.3 million, up 9.6% at constant currency," said Dan Pio, Chief Executive Officer. "Our organic revenue growth of 6.6%, or nearly $33 million, was driven by unseasonably higher landfill volumes in our North and East regions due to the mild weather relative to the year-ago period, as well as a significant contribution from our natural gas plant at the Lachenaie landfill in Quebec. Revenues from the gas plant represented approximately $9.3 million of our organic growth, with the majority relating to increases in biofuel commodity pricing and approximately $2.0 million that is not expected to recur. Our organic revenue improvement was also driven by higher price across our collection service lines, most notably from our commercial service line which increased 2.9% period-over-period, and by higher consolidated volume growth of 4.5%. Excluding industrial volumes in the North region, which declined due to lower economic activity in Alberta, waste volumes improved across our consolidated collection, transfer and disposal business."

Mr. Pio continued, "We are pleased with the results of our operations as we prepare to enter into the previously announced combination with Waste Connections, Inc. Our expectation remains that the combination will close in the second quarter of 2016, following shortly after the anticipated approval at our upcoming annual and special meeting of shareholders. On behalf of our Company's management team, I would like to thank our employees for their commitment to safety and customer service. I am confident that the efforts of our outstanding people will contribute to the success of the combined company and create significant value for our shareholders."

First quarter ended March 31, 2016

Reported revenues increased $11.2 million or 2.4% from $460.2 million in the first quarter of 2015 to $471.4 million in the first quarter of 2016. Expressed on a reportable basis, and assuming a FX rate of parity between the Canadian and U.S. dollar, revenues increased 6.2%. This increase was due in large part to a 1.6% increase in overall pricing, higher volumes of 4.5% and higher recycled commodity pricing, 1.5%, partially offset by lower fuel surcharges, (1.0%) and net divestitures, (0.4%).

Operating income was $21.5 million in the first quarter of 2016 versus $49.2 million in the first quarter of 2015. Net (loss) income was ($2.0) million versus $18.1 million in the first quarter of 2016 and 2015, respectively. The current period net loss includes approximately $21.9 million of transaction related costs incurred as a result of our proposed merger with Waste Connections.

Adjusted amounts

Adjusted EBITDA(A) was $112.3 million, or 5.1% higher, in the first quarter of 2016 versus $106.9 million in the same quarter a year ago. Expressed on a reportable basis, and assuming constant currency, adjusted EBITDA(A) increased 9.6%. Adjusted operating EBIT(A) was $46.6 million, or (10.4%) lower, in the quarter compared to $52.1 million in the same period last year. Adjusted net income(A) was $27.0 million, or $0.25 per diluted share, compared to $28.2 million, or $0.25 per diluted share in the comparative period.

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, 2016 and 2015 (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 ended
----------------------------------------------------------------------------
                                                         2016        2015Copyright
----------------------------------------------------------------------------
REVENUES                                        $     471,438  $     460,205
EXPENSES
  OPERATING                                           302,543        297,500
  SELLING, GENERAL AND ADMINISTRATION                  81,713         58,716
  AMORTIZATION                                         65,782         64,009
  NET GAIN ON SALE OF CAPITAL AND LANDFILL
   ASSETS                                               (138)        (9,194)
----------------------------------------------------------------------------
OPERATING INCOME                                       21,538         49,174
INTEREST ON LONG-TERM DEBT                             12,462         15,456
NET FOREIGN EXCHANGE LOSS (GAIN)                        1,144          (283)
NET LOSS ON FINANCIAL INSTRUMENTS                      13,862         10,759
----------------------------------------------------------------------------
(LOSS) INCOME BEFORE INCOME TAX EXPENSE
 (RECOVERY)                                           (5,930)         23,242
INCOME TAX EXPENSE (RECOVERY)
  Current                                               5,950          4,837
  Deferred                                            (9,870)            284
----------------------------------------------------------------------------
                                                      (3,920)          5,121
----------------------------------------------------------------------------
NET (LOSS) INCOME                                     (2,010)         18,121
----------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (LOSS):
  Foreign currency translation adjustment              23,866       (41,682)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)                23,866       (41,682)
----------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS)                     $      21,856  $    (23,561)
----------------------------------------------------------------------------
Net (loss) income per weighted average share,
 basic and diluted                              $      (0.02)  $        0.16
Weighted average number of shares outstanding
  (thousands), basic and diluted                      109,306        112,501
Progressive Waste Solutions Ltd.
Condensed Consolidated Balance Sheets ("Balance Sheet")
March 31, 2016 (unaudited) and December 31, 2015 (stated in accordance with
accounting principles generally accepted in the United States of America
("U.S.") and in thousands of U.S. dollars except for issued and outstanding
share amounts)
----------------------------------------------------------------------------
                                                    March 31,   December 31,
                                                         2016           2015
----------------------------------------------------------------------------
ASSETS
CURRENT
  Cash and cash equivalents                     $      43,919  $      35,780
  Accounts receivable                                 204,969        207,636
  Other receivables                                       147            118
  Prepaid expenses                                     34,624         31,164
  Income taxes recoverable                              2,272              -
  Restricted cash                                         542            542
  Other assets                                             15              -
----------------------------------------------------------------------------
                                                      286,488        275,240
OTHER RECEIVABLES                                       2,520          2,343
FUNDED LANDFILL POST-CLOSURE COSTS                     10,959         10,145
INTANGIBLES                                           168,670        176,973
GOODWILL                                              907,450        886,911
LANDFILL DEVELOPMENT ASSETS                            16,305         15,067
DEFERRED FINANCING COSTS                               11,619         11,528
CAPITAL ASSETS                                        969,154        929,111
LANDFILL ASSETS                                       933,914        932,595
INVESTMENTS                                               798            748
OTHER ASSETS                                                -            759
                                              ------------------------------
TOTAL ASSETS                                    $   3,307,877  $   3,241,420
----------------------------------------------------------------------------
LIABILITIES
CURRENT
  Accounts payable                              $      93,588  $      98,614
  Accrued charges                                     155,295        139,988
  Dividends payable                                    14,328         13,425
  Income taxes payable                                  3,430          3,175
  Deferred revenues                                    16,911         16,340
  Current portion of long-term debt                       523            494
  Landfill closure and post-closure costs              10,625         10,717
  Other liabilities                                    21,339         17,394
----------------------------------------------------------------------------
                                                      316,039        300,147
LONG-TERM DEBT                                      1,583,190      1,546,737
LANDFILL CLOSURE AND POST-CLOSURE COSTS               120,126        115,195
OTHER LIABILITIES                                      33,235         20,474
DEFERRED INCOME TAXES                                 120,747        129,970
----------------------------------------------------------------------------
TOTAL LIABILITIES                                   2,173,337      2,112,523
----------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
  Common shares (authorized - unlimited,
   issued and outstanding - 108,871,584
   (December 31, 2015 - 108,806,684))               1,692,209      1,691,963
  Restricted shares (issued and outstanding -
   445,189 (December 31, 2015 - 496,672))            (13,139)       (12,461)
  Additional paid in capital                            4,751          7,015
  Accumulated deficit                               (376,475)      (360,948)
  Accumulated other comprehensive loss              (172,806)      (196,672)
----------------------------------------------------------------------------
  Total shareholders' equity                        1,134,540      1,128,897
----------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $   3,307,877  $   3,241,420
----------------------------------------------------------------------------
Progressive Waste Solutions Ltd.
Condensed Consolidated Statements of Cash Flows ("Statement of Cash Flows")
For the periods ended March 31, 2016 and 2015 (unaudited - stated in
accordance with accounting principles generally accepted in the U.S. and in
thousands of U.S. dollars)
----------------------------------------------------------------------------
                                                          Three months ended
----------------------------------------------------------------------------
                                                         2016           2015
----------------------------------------------------------------------------
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE
 FOLLOWING ACTIVITIES
OPERATING
  Net (loss) income                             $     (2,010)  $      18,121
  Items not affecting cash
    Restricted share expense                            1,322            806
    Accretion of landfill closure and post-
     closure costs                                      1,581          1,599
    Amortization of intangibles                        10,918         11,298
    Amortization of capital assets                     37,717         36,109
    Amortization of landfill assets                    17,147         16,602
    Interest on long-term debt (amortization
     of deferred financing costs)                         644            764
    Non-cash interest income                             (25)           (65)
    Net gain on sale of capital and landfill
     assets                                             (138)        (9,194)
    Net loss on financial instruments                  13,862         10,759
    Deferred income tax (recovery) expense            (9,870)            284
  Landfill closure and post-closure
   expenditures                                         (829)        (1,047)
  Changes in non-cash working capital items             2,754          2,139
----------------------------------------------------------------------------
Cash generated from operating activities               73,073         88,175
----------------------------------------------------------------------------
INVESTING
  Acquisitions                                          (130)       (29,838)
  Investment in other receivables                        (41)           (23)
  Proceeds from other receivables                          29             10
  Funded landfill post-closure costs                    (249)          (287)
  Purchase of capital assets                         (48,620)       (51,232)
  Purchase of landfill assets                        (15,866)        (9,964)
  Proceeds from the sale of capital and
   landfill assets                                        722          1,263
  Proceeds from asset divestiture                           -         76,190
  Investment in landfill development assets             (126)           (67)
----------------------------------------------------------------------------
Cash utilized in investing activities                (64,281)       (13,948)
----------------------------------------------------------------------------
FINANCING
  Proceeds from long-term debt                         90,584         93,029
  Repayment of long-term debt                        (79,311)      (133,257)
  Proceeds from the exercise of stock options,
   net of related costs                                    96             53
  Repurchase of common shares and related
   costs                                                    -       (15,284)
  Purchase of, net of proceeds from,
   restricted shares                                  (3,593)        (2,481)
  Dividends paid to shareholders                     (13,516)       (14,504)
----------------------------------------------------------------------------
Cash utilized in financing activities                 (5,740)       (72,444)
Effect of foreign currency translation on cash
 and cash equivalents                                   5,087        (6,485)
                                              ------------------------------
NET CASH INFLOW (OUTFLOW)                               8,139        (4,702)
----------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR           35,780         41,636
----------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD        $      43,919  $      36,934
----------------------------------------------------------------------------
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash and cash equivalents are comprised of:
    Cash                                        $      43,918  $      36,933
    Cash equivalents                                        1             ...

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