Allied Waste Industries Inc. announces significant increase in second quarter earnings per share.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 27, 1995--Allied Waste Industries Inc. (NASDAQ:AWIN) Thursday announced its results of operations for the quarter and six months ended June 30, 1995.

The company's revenues for the three months were $39.1 million, up 60% from $24.4 million during the comparable quarter in 1994. Net income was $3.4 million and earnings per share were $0.08 for the second quarter 1995 compared to net income of $48,000 and a loss per share of ($0.06) reported for the same quarter last year.

Earnings per share are computed after deducting second quarter preferred dividends of $983,000 in 1995 and $935,000 in 1994. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $13.6 million in the second quarter of 1995 compared to $5.6 million for the same period in 1994.

For the six months in 1995, revenues were $72.9 million, up 82% from $40.0 million during the comparable period in 1994. Net income was $5.1 million and earnings per share were $0.10 for the six month period in 1995 compared to a net loss of ($1.1 million) and a loss per share of ($0.22) for the same period last year.

Earnings per share are computed after deducting preferred dividends of $2.1 million for the first six months in 1995 and $1.7 million for the same period in 1994. EBITDA was $24.1 million for the six month period in 1995, three times the $8.0 million reported for the same period in 1994.

Roger A. Ramsey, chairman and chief executive officer, said, "The efforts expended in raising capital and successfully deploying it in 1994 and early 1995 continue to deliver improving revenue and earnings. In addition, we remain focused on our internal development efforts, and our policy of strategic acquisitions with a concentration on existing operations.

"During the quarter, internal revenue growth was approximately 27% with the remainder coming from acquisitions completed since the second quarter of last year. With a strong cash flow and solid asset base on which we continue to build, I am enthusiastic about Allied's continuing growth through 1995 and beyond."

Internal Development

Since the first quarter 1995, Allied received landfill permits in its Northwest Indiana and Phoenix markets. The Newton County Landfill, located in northwest Indiana, is a 160 acre facility with permitted capacity of 43.3 million gate yards. Construction at this site has commenced and the landfill should become operational in the fourth quarter 1995.

The location of this facility is expected to result in Allied's capturing significant third-party waste streams and meaningful transportation savings for its area transfer operations. The Southwest Regional Landfill, located in the rapidly growing Phoenix metropolitan area, is a 305 acre site with a permitted capacity of 70 million gate yards. Construction will begin later this year and the landfill should become operational in the first quarter 1996.

The company has obtained from the City of Independence, Mo., approval to construct a 1,000 ton per day solid waste transfer station. This facility will serve the City of Independence and the east Kansas City area. This represents new waste streams which Allied will transport to the company-owned Show-Me Landfill. The transfer station should be fully operational in the first quarter 1996.

Additionally, the company has entered into a five year agreement, valued at approximately $5 million, for the transportation and disposal of new third-party waste into Allied's County Line Landfill.

Thomas H. Van Weelden, Allied's president and chief operating officer, said: "The Company's operating results continue to show marked improvement. The ratio of Company-collected waste deposited at Company-owned landfills has increased from 61% during 1994 to 83% during the second quarter 1995.

"In addition, comparing the second quarter 1995 to the same period in 1994, third-party waste accepted at Company-owned landfills increased from $2.7 million to $4.8 million, an increase of 78%. In particular, these results reflect the effects of our internal development efforts, the integration of acquisitions into existing operations, and the increased utilization of Allied's landfill capacity."

Acquisitions

During the second quarter, the company acquired five operating solid waste businesses, located in three states. All of the acquisitions "tuck-in" to existing Allied markets in Georgia, Indiana, and New Mexico. These acquisitions account for annualized revenues of $3.4 million and a total purchase price of approximately $3.7 million primarily represented by cash and notes.

Allied Waste Industries Inc. is a rapidly growing solid waste management company providing waste collection, recycling and disposal operations in selected regional markets. Allied Waste has made more than 68 acquisitions from the beginning of 1991 and operates 30 collection companies, 17 landfills, 20 transfer stations and 6 recycling facilities in 10 states. -0-

                   ALLIED WASTE INDUSTRIES INC.
                CONDENSED STATEMENT OF OPERATIONS
                  Quarter Ended June 30, 1995
          (amounts in thousands, except per share amounts)

                                                                Percent
                                   1995            1994        Change in
                             Amount  Percent   Amount  Percent  Amount

Revenue                     $39,109    100%   $24,402    100%     60%
Cost of operations           23,506     60%    16,056     66%     46%
Gross profit                 15,603     40%     8,346     34%     87%
Sales, general and
 administrative expenses      7,478     19%     5,414     22%     38%
Operating income (loss)(EBIT) 8,125     21%     2,932     12%    177%
Interest expense, net         2,423      6%     2,827     12%    -14%
Net income (loss) before
 income taxes                 5,702     15%       105      0%    NMF
Income tax provision
 (benefit)                    2,274      6%        54      0%    NMF
Net income (loss) before
 minority interest            3,428      9%        51      0%    NMF
Minority interest               (10)     0%        (3)     0%    NMF
Net income (loss)           $ 3,418      9%   $    48      0%    NMF

EBITDA                      $13,639     35%   $ 5,634     23%    142%

PER SHARE DATA:
Net income (loss)           $ 3,418      9%   $    48      0%    NMF
Dividends on preferred stock   (983)    -3%      (935)    -4%     5%
Interest savings upon
 conversion of
 convertible securities         234      1%         0     NMF    NMF
Net income (loss) to common
 shareholders                $2,669      7%   $  (887)    -4%    NMF
Income (loss) per
 common share                $ 0.08           $ (0.06)

Weighted average common and
 common share equivalent
 shares                      35,217            13,665

                   ALLIED WASTE INDUSTRIES INC.
                CONDENSED STATEMENT OF OPERATIONS
                  Six Months Ended June 30, 1995
         (amounts in thousands, except per share amounts)

                                                                Percent
                                   1995            1994        Change in
                             Amount  Percent   Amount  Percent  Amount

Revenue                     $72,855    100%   $40,009    100%     82%
Cost of operations           44,686     61%    26,333     66%     70%
Gross profit                 28,169     39%    13,676     34%    106%
Sales, general and
 administrative expenses     14,472     20%    10,210     26%     42%
Operating income (loss)
 (EBIT)                      13,697     19%     3,466      9%    295%
Interest expense, net         4,600      6%     5,383     13%    -15%
Net income (loss) before
 income taxes                 9,097     12%    (1,917)    -5%    NMF
Income tax provision
 (benefit)                    3,957      5%    (1,043)    -3%    NMF
Net income (loss) before
 minority interest            5,140      7%      (874)    -2%    NMF
Minority interest               (16)     0%         2      0%    NMF
Net income (loss) before
 extraordinary item           5,124      7%      (872)    -2%    NMF
Extraordinary item, net
 of tax effect                    0      0%       206      1%    NMF
Net income (loss)           $ 5,124      7%   $(1,078)    -3%    NMF

EBITDA                      $24,133     33%   $ 8,010     20%    201%

PER SHARE DATA:
Net income (loss)           $ 5,124      7%   $(1,078)    -3%    NMF
Dividends on preferred stock (2,126)    -3%    (1,699)    -4%    25%
Net income (loss) to common
 shareholders                $2,998      4%   $(2,777)    -7%    NMF
Income (loss) per
 common share                $ 0.10           $ (0.22)

Weighted average common and
 common share equivalent
 shares                      29,549            12,347

CONTACT: Allied Waste Industries Inc.

Peter Hathaway, 602/423-AWIN

or

Registered Communications Group

Joe Diaz, 602/998-7555