EX-99.1 Press Release

Exhibit 99.1

PRESS RELEASE

For Immediate Release

WASTE SERVICES REPORTS FOURTH QUARTER RESULTS

BURLINGTON, Ontario, February 28, 2007/PRNewswire-FirstCall/ — Waste Services, Inc. (Nasdaq: WSII) today reported financial results for the three months ended December 31, 2006. Revenue from continuing operations for the quarter was $101.0 million, an increase of $11.3 million, or 12.6% over the same period last year. The increase in revenue was primarily driven by pricing increases of $5.6 million or 6.2%, of which $0.9 million or 1.0% related to fuel surcharges, increased collection and transfer station volumes of $2.0 million, acquisitions, net of divestitures, of $4.1 million and other revenue of $0.5 million. Offsetting these increases were decreases primarily related to the expiration or assignment of certain residential contracts totaling $2.0 million and decreased volumes at our landfill sites of $0.4 million. The favorable effects of foreign exchange rate movements increased revenue by $1.5 million. Net loss for the quarter ended December 31, 2006 was $10.1 million, or $0.27 per share, versus a loss of $12.1 million, or $0.36 per share, for the comparable period last year. Reported EBITDA*, reflecting contribution from our Arizona operations, was $19.9 million for the quarter ended December 31, 2006, compared to $15.4 million for the same period last year. Adjusted EBITDA* (as defined in our credit agreement), reflecting contribution from our Arizona operations, was $21.6 million for the quarter ended December 31, 2006.

For the year ended December 31, 2006, revenue from continuing operations was $396.1 million, an increase of $40.0 million, or 11.3% over the previous year. The increase in revenue was primarily driven by pricing increases of $23.8 million or 6.7%, of which $6.2 million or 1.7% related to fuel surcharges, increased collection and transfer station volumes of $7.3 million, increased volumes at our landfill sites of $5.0 million, acquisitions, net of divestitures, of $5.3 million and other revenue of $1.8 million. Offsetting these increases were decreases primarily related to the expiration or assignment of certain residential contracts totaling $15.2 million. The favorable effects of foreign exchange rate movements increased revenue by $12.0 million. Net loss was $48.5 million for the year ended December 31, 2006, or $1.37 per share, compared to a net loss of $50.3 million, or $1.53 per share for the comparable period last year. Reported EBITDA*, reflecting contribution from our Arizona operations, was $60.2 million for the year ended December 31, 2006, compared to $54.0 million for the previous year. Adjusted EBITDA* (as defined in our credit agreement), reflecting contribution from our Arizona operations, was $78.6 million for the year ended December 31, 2006.

David Sutherland-Yoest, Chairman and Chief Executive Officer, stated “We are very pleased to report record annual results, reflecting significant year-over-year growth in revenue, EBITDA and margins. While we are proud of our progress in 2006, we believe that there are tremendous opportunities for further growth and profitability improvement in 2007, particularly as we integrate our recent acquisitions in Southwest Florida and complete our entry into the Miami-Dade market.”

2007 Outlook

Waste Services today also announced the following guidance for fiscal year 2007:

	•		Revenue of approximately $500.0 million;

	•		Adjusted EBITDA in the range of $110.0 million to $115.0 million; and

	•		Organic revenue growth of approximately 6.0%.

This outlook assumes: (i) no additional acquisitions, other than the completion of transactions previously announced, and (ii) no significant deterioration in economic conditions in Florida or Canada. The company’s guidance is forward looking and actual results may vary, perhaps materially.

*Reconciliation of Non-GAAP Measures:

The following table reconciles the differences between net loss, as determined under US GAAP, and EBITDA, a non-GAAP financial measure (in thousands) (unaudited):


	For The Three Months						For The Year
	Ended December 31,						Ended December 31,
	2006			2005			2006			2005
Net loss	$	(10,098	)	$	(12,098	)	$	(48,531	)	$	(50,290	)
Income tax provision		4,435			3,554			12,820			12,136
Preferred stock dividends and amortization of issue costs		4,860			5,637			19,653			20,984
Interest expense		8,106			6,923			30,905			28,196
Depreciation, depletion and amortization, continuing operations		11,953			10,807			42,813			40,661
Depreciation, depletion and amortization, discontinued operations		604			599			2,528			2,293

EBITDA ⁽¹⁾	$	19,860		$	15,422		$	60,188		$	53,980

The following table reconciles the differences between EBITDA and Adjusted EBITDA, as defined in our credit agreement, for the three months and year ended December 31, 2006 and 2005 (in thousands) (unaudited):


	For The Three Months						For The Year
	Ended December 31,						Ended December 31,
	2006			2005			2006		2005
EBITDA (1)	$	19,860		$	15,422		$	60,188	$	53,980
Adjustments to EBITDA (as defined per credit agreement):
Non-cash items (2)		(242	)		(947	)		10,346		(3,050	)
Other excludable expenses (3)		2,026			1,702			8,096		4,952

Adjusted EBITDA (1)	$	21,644		$	16,177		$	78,630	$	55,882


⁽¹⁾		EBITDA and EBITDA as defined in our credit agreement (“Adjusted EBITDA”) are non-GAAP measures used by management to measure performance. We also believe that EBITDA and Adjusted EBITDA may be used by certain investors to analyze and compare our operating performance between accounting periods and against the operating results of other companies that have different financing and capital structures or tax rates and to measure our ability to service our debt. In addition, management uses EBITDA, among other things, as an internal performance measure. Our lenders also use Adjusted EBITDA to measure our ability to service and/or incur additional indebtedness under our credit facilities. However, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flows or other financial statement data prepared in accordance with US GAAP or as a measure of our performance, profitability or liquidity. EBITDA and Adjusted EBITDA are not calculated under US GAAP and therefore are not necessarily comparable to similarly titled measures of other companies.

⁽²⁾		Non-cash adjustments primarily include impairment of deferred acquisition costs, stock-based compensation expense and gains and losses on foreign exchange and asset sales.

⁽³⁾		Other excludable expenses adjustments include professional fees for certain litigation, severance and other non-recurring costs.

We will host an investor and analyst conference call on Thursday, March 1, 2007 at 8:30 a.m. (EST) to discuss the results of today’s earnings announcement. If you wish to participate in this call, please phone 800-561-2813 (US and Canada) or 617-614-3529 (International) and enter passcode number 28315061. To hear a web cast of the call over the Internet, access the Home page of our website at http://www.wasteservicesinc.com. A post-view of the call will be available until March 15, 2007 by phoning 888-286-8010 (US and Canada) or 617-801-6888 (International) and entering passcode number 35194409. The web cast will also be available on our website.

# # #

Safe Harbor for Forward-Looking Statements

Certain matters discussed in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements describe the company’s future plans, objectives and goals. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from the plans, objectives and goals set forth in this press release. Factors which could materially affect such forward-looking statements can be found in the company’s periodic reports filed with the Securities and Exchange Commission, including risk factors detailed in the company’s Form 10-K for the year ended December 31, 2005. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

The forward-looking statements made in this press release are only made as of the date hereof and Waste Services undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

This release does not constitute an offer to sell or the solicitation of any offer to buy any securities. The company’s securities may not be offered or sold in the United States absent a registration or applicable exemption from registration requirements under applicable state and federal securities laws.

Waste Services, Inc. is a multi-regional, integrated solid waste services company that provides collection, transfer, disposal and recycling services in the United States and Canada. The company’s website is located at http://www.wasteservicesinc.com. Information on the company’s website does not form part of this press release.

For information contact:

Brad Helgeson
Vice President Finance and Treasurer
561-237-3400

WASTE SERVICES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Revenue	$	101,044		$	89,762		$	396,123		$	356,056

Operating and other expenses:
Cost of operations (exclusive of depreciation, depletion and amortization)		67,054			62,880			270,454			255,675
Selling, general and administrative expense (exclusive of depreciation, depletion and amortization)		14,434			12,741			58,941			53,123
Impairment of deferred acquisition costs		—			—			5,612			—
Settlement with sellers of Florida Recycling		—			(4,120	)		—			(4,120	)
Depreciation, depletion and amortization		11,953			10,807			42,813			40,661
Foreign exchange loss (gain) and other		(81	)		3,285			1,993			(175	)


Income from operations		7,684			4,169			16,310			10,892
Interest expense		8,106			6,923			30,905			28,196
Cumulative mandatorily redeemable preferred stock dividends and amortization of issue costs.		4,860			5,637			19,653			20,984


Loss from continuing operations before income taxes		(5,282	)		(8,391	)		(34,248	)		(38,288	)
Income tax provision		4,435			3,554			12,820			12,136


Net loss from continuing operations		(9,717	)		(11,945	)		(47,068	)		(50,424	)

Net income (loss) from discontinued operations, net of income taxes		(381	)		(153	)		(1,463	)		134


Net loss	$	(10,098	)	$	(12,098	)	$	(48,531	)	$	(50,290	)


Basic and diluted loss per share:
Loss per share — continuing operations	$	(0.26	)	$	(0.36	)	$	(1.33	)	$	(1.53	)
Loss per share — discontinued operations		(0.01	)		—			(0.04	)		—

Basic and diluted loss per share	$	(0.27	)	$	(0.36	)	$	(1.37	)	$	(1.53	)


Weighted average common shares outstanding — basic and diluted		37,788			33,172			35,354			32,880

WASTE SERVICES, INC.
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA
(In thousands)

Balance Sheet Data:


	December 31,		December 31,
	2006		2005
Cash	$	8,532	$	8,886
Current assets	$	71,119	$	69,582
Total assets	$	865,063	$	728,389
Current liabilities	$	86,358	$	68,216
Debt:
Senior secured credit facilities:
Revolver	$	—	$	—
Term loan		245,260		123,250
Senior subordinated notes		160,000		160,000
Other notes		4,828		2,965

Total debt	$	410,088	$	286,215
Redeemable preferred stock	$	—	$	84,971
Shareholders’ equity	$	339,357	$	264,491

Cash Flow Data:


	Year Ended December 31,
	2006		2005
Cash flows from operating activities	$	38,936	$	24,653
Cash flows used in investing activities	$	149,007	$	39,511
Cash flows from financing activities	$	109,804	$	14,947
Capital expenditures from continuing operations	$	47,285	$	28,893