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AMERICAN WASTE SERVICES, INC. ANNOUNCES SECOND QUARTER RESULTS

 WARREN, Ohio, Aug. 2 /PRNewswire/ -- Ronald E. Klingle, chairman of the board of directors of American Waste Services, Inc. (NYSE: AW) today announced financial results for the second quarter and first six months of 1993.
 For the second quarter of 1993, net operating revenues were $21.3 million compared with $24.6 million in the second quarter of 1992. Net income totaled $1 million, or $.03 per share, during the second quarter of 1993 compared with $2 million, or $.07 per share, during the second quarter of the prior year. For the first six months of 1993 net operating revenues were $40.6 million compared with $47.6 million in the prior year period while net earnings in the current period were $1.6 million, or $.05 per share, compared with net earnings of $3.1 million, or $.10 per share, in the first six months of 1992.
 Klingle stated, "Net operating revenues of the Company's disposal operations in the second quarter of 1993 were approximately equal to revenues recorded in the second quarter of the prior year. During the second quarter of 1993 record volumes of waste were received at the Company's landfills primarily as a result of our sales and marketing efforts. Disposal volumes increased 9 percent in the second quarter of 1993 compared with the second quarter of 1992 and increased 39 percent compared with the first quarter of 1993. Extremely competitive conditions continue to exist for disposal services resulting in declining average disposal rates. In the second quarter of 1993 average disposal rates were 11 percent lower than the second quarter of 1992 and were 10 percent lower than the first quarter of 1993. Earnings of the disposal operations declined in the second quarter of 1993 compared with the second quarter of 1992 as the impact of average disposal price decreases more than offset the impact of volume improvements. For the first six months of 1993, disposal operations recorded lower net operating revenues and earnings due to a 8 percent decline in average disposal rates and a 4 percent decrease in disposal volumes compared with the first six months of the prior year. We expect competitive pressures for disposal services to continue during the next several months and the company will continue to focus on securing additional business for our landfills. Disposal brokerage revenues and earnings for both the second quarter and first six months of 1993 were lower than the comparable periods of the prior year reflecting the absence in 1993 of any significant disposal brokerage projects.
 "Transportation and transportation brokerage revenues were down in the current quarter and first six months of 1993 by approximately 21 percent compared with the comparable periods of the prior year primarily as a result of a decline in the amount of waste transported and continued competitive pressures on transportation rates. Our transportation operations reported a
small operating loss in the second quarter of 1993. At the end of the second quarter of 1993 the transportation group implemented certain cost reduction measures to improve the profitability of its operations. Earnings of the transportation group in the second quarter of 1992 were impacted by a favorable tax adjustment resulting from various tax audits.
 "Our technical environmental services business reported improved revenues and earnings during the current quarter and six month period of 1993 compared with the second quarter and first six months of 1992 which reflects continued progress in our integrated full service approach. For the second quarter of 1993 our technical environmental services business reported a 35 percent revenue increase and a significant improvement in profitability compared with the second quarter of 1992 when an operating loss was reported. As previously reported, our technical services group has been successful in obtaining contracts involving the initial stages of potentially very significant environmental projects which could also provide significant future opportunities for our transportation and disposal businesses. The impact this will have on future revenues of our company can not be currently quantified because the progress of these projects is dependent upon each customers' economic and regulatory situation. As a result of the foregoing and the uncertainty of future disposal rates it is difficult to estimate the Company's future earnings."
 American Waste Services, Inc. provides integrated waste management and environmental services, including disposal, transportation and transportation-related services, disposal brokerage and management services, environmental engineering, site assessment, analytical laboratory and remediation services to industrial, commercial, municipal and governmental customers.
 AMERICAN WASTE SERVICES, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Income (Unaudited)
 (in thousands except for per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net operating revenues $21,306 $24,610 $40,588 $47,559
 Cost and expenses:
 Cost of operations 15,813 17,140 30,382 33,998
 Selling, general and
 administrative expense 3,495 3,948 6,751 7,641
 Income from operations 1,998 3,522 3,455 5,920
 Interest expense (420) (559) (880) (1,146)
 Other income (expense), net 91 137 177 210
 Income before income taxes 1,669 3,100 2,752 4,984
 Income taxes 703 1,141 1,142 1,894
 Net income $ 966 $ 1,959 $ 1,610 $ 3,090
 Net income per share $ .03 $ .07 $ .05 $ .10
 Weighted average shares
 outstanding 29,686 29,686 29,686 29,737
 -0- 8/2/93
 /CONTACT: Charles Boryenace, chief financial officer of American Waste Services, Inc., 216-856-8800/
 (AW)


CO: American Waste Services, Inc. ST: Ohio IN: ENV SU: ERN

BM -- CL016 -- 8577 08/02/93 17:45 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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