Meridian Waste Solutions Announces First Quarter 2016 Financial and Operating Results

Revenue Increased 147% Compared to the Prior Year

MILTON, GA -- (Marketwired) -- 05/18/16 -- Meridian Waste Solutions, Inc. (OTCQB: MRDN) ("Meridian" or the "Company"), a vertically integrated, non-hazardous solid waste collection firm reported financial results for the three months ended March 31, 2016.

The Company's revenue for the three months ended March 31, 2016 was $7,488,239, a 147% increase over the three months ended March 31, 2015 of $3,035,819. This increase is due to the continued growth of HTS Waste, the acquisitions of Christian Disposal and Eagle Ridge.

Gross profit percentage for the three months ended March 31, 2016 is 30%. This is an increase of approximately 3% from the three months ended March 31, 2015. The increase is significant in that it shows management's ability to improve efficiencies of operations.

The Company purchased over $2 million of new equipment while increasing long-term debt by approximately $2,377,000 during the three months ended March 31, 2016. The increase in debt was due to the Company borrowing on its revolving commitments in order to satisfy a closure/post closure bond for Eagle Ridge Landfill.

Our net revenues have been sufficient to fund our operating expenses. At March 31, 2016, we had total cash and short-term investments of $3,713,695, the majority of which was funded by our lender from the draw on the revolving commitments of $2,150,000 and $1,100,000 from a private placement stock offering.

Jeff Cosman, CEO of Meridian Waste Solutions, stated, "During the first three months of 2016, we invested heavily in state-of-the-art equipment. The most up to date equipment provides our employees with new efficiencies necessary to stay competitive. In addition to our investment in industrial infrastructure, the management team has worked extensively with the teams of Christian Disposal and Eagle Ridge to fully integrate operations and improve overall business operations. Salaries too have increase substantially; however, we intend to recruit a highly experienced executive management team that will help us improve our business lines and overall margins. We are on track to build a leading vertically integrated non-hazardous solid waste collection firm."

Meridian Waste Solutions, Inc. (MRDN) is a company focused on solutions in the waste industry. Currently, the Company operates in St. Louis, Missouri as Meridian Waste Services, Christian Environmental Services and Meridian Waste Solutions, which serves over 65,000 residential, commercial and temporary customers in the St. Louis, MO market. In addition to a fleet of commercial, residential and temporary roll off trucks, the Company operates three transfer stations and one municipal solid waste landfill. Meridian is focused on providing unparalleled customer service in the form of long-term and short-term contracts.

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Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The actual results or outcomes of Meridian Waste Solutions, Inc. may differ materially from those anticipated. Although Meridian Waste Solutions, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Meridian Waste Solutions, Inc. can provide no assurance that any of the forward-looking statements contained in this press release will prove to be accurate.

In light of the significant uncertainties and risks inherent in the forward-looking statements included in this press release, such information should not be regarded as a representation by Meridian Waste Solutions, Inc. that its objectives or plans will be achieved. Included in these uncertainties and risks are, among other things, fluctuations in operating results, general economic conditions, uncertainty regarding the results of certain legal proceedings and competition. Forward-looking statements consist of statements other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may," "intend," "expect," "will," "anticipate," "estimate" or "continue" or the negatives thereof or other variations thereon or comparable terminology. Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Meridian Waste Solutions, Inc.'s most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Meridian Waste Solutions, Inc. does not undertake an obligation to update publicly any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

MARCH 31, 2016 AND DECEMBER 31, 2015
Assets March 31, 2016 (UNAUDITED) December 31, 2015
Current assets:
Cash and cash equivalents $ 1,766,569 $ 2,729,795
Short-term investments 1,947,127 -
Accounts receivable, net of allowance 2,013,933 1,707,818
Prepaid expenses 393,728 427,615
Other current assets 88,537 52,359
Total current assets 6,209,894 4,917,587
Property, plant and equipment, at cost net of accumulated depreciation 16,040,835 14,433,740
Other assets:
Investment in related party affiliate 362,080 364,185
Deposits 10,954 10,954
Loan fees, net of accumulated amortization 1,115,200 1,416,697
Goodwill 7,234,420 7,479,642
Landfill assets, net of accumulated amortization 3,371,212 3,393,476
Customer list, net of accumulated amortization 18,636,744 19,500,362
Non-compete, net of accumulated amortization 145,459 155,699
Website, net of accumulated amortization 10,208 10,904
Total other assets 30,886,277 32,331,919
Total assets $ 53,137,006 $ 51,683,246
Liabilities and Shareholders' (Deficit) Equity
Current liabilities:
Accounts payable $ 1,981,859 $ 1,988,050
Accrued expenses 474,806 280,069
Notes payable, related party 359,891 359,891
Deferred compensation 1,036,630 996,380
Deferred revenue 3,045,935 2,912,264
Convertible notes due related parties, includes put premiums 15,065 15,065
Contingent liability 1,000,000 1,000,000
Derivative liability - stock warrants 2,640,000 2,820,000
Current portion - long term debt 268,994 417,119
Total current liabilities 10,823,180 10,788,838
Long term liabilities:
Asset retirement obligation 245,428 200,252
Long term debt, net of current 42,964,192 40,587,493
Total long term liabilities 43,209,620 40,787,745
Total liabilities 54,032,800 51,576,583
Shareholders' equity:
Preferred Series A stock, par value $.001, 51 shares authorized, issued and outstanding - -
Preferred Series B stock, par value $.001, 71,210 shares authorized, issued and outstanding 71 71
Common stock, par value $.025, 75,000,000 shares authorized, 24,537,982 and 21,038,650 share issued and outstanding, respectively 613,449 525,966
Treasury stock, at cost, 230,000 shares (224,250 ) (224,250 )
Additional paid in capital 32,961,418 27,624,492
Accumulated deficit (34,246,482 ) (27,819,616 )
Total shareholders' (deficit) equity (895,794 ) 106,663
Total liabilities and shareholders' equity $ 53,137,006 $ 51,683,246
Three months ended
March 31, 2016 (UNAUDITED) March 31, 2015 (UNAUDITED)
Services $ 7,488,239 $ 3,035,819
7,488,239 3,035,819
Total revenue
Cost of sales and services
Cost of sales and services 4,469,898 1,833,058
Depreciation 757,089 381,576
Total cost of sales and services 5,226,987 2,214,634
Gross Profit 2,261,252 821,185
Bad debt expense 44,589 2,738
Compensation and related expense 4,230,768 2,145,907
Depreciation and amortization 950,317 725,612
Selling, general and administrative 2,191,571 513,666
Total expenses 7,417,245 3,387,923
Other income (expenses):
Miscellaneous income 6,700 1,097
Loss on disposal of assets (1,451 ) -
Unrealized gain (loss) on interest rate swap - 3,071
Unrealized gain on change in fair value of derivative liability 180,000 -
Loss on extinguishment of debt - -
Loss from proportionate share of equity method investment (2,105 ) -
Recapitalization expense - -
Unrealized gain on investment - -
Interest income 2,139 -
Interest expense (1,456,156 ) (190,076 )
Total other expenses (1,270,873 ) (185,908 )
Net loss $ (6,426,866 ) $ (2,752,646 )
Basic net loss per share $ (0.30 ) $ (0.25 )
Weighted average number of shares outstanding
(Basic and Diluted) 21,680,019 11,114,873
Periods ending
March 31, 2016 (UNAUDITED) March 31, 2015 (UNAUDITED)
Cash flows from operating activities:
Net loss $ (6,426,866 ) $ (2,752,646 )
Adjustments to reconcile net loss to net cash (used in) provided from operating activities:
Depreciation and amortization 1,707,406 1,107,189
Interest accretion on landfill liabilities 45,176
Amortization of capitalized loan fees & debt discount 413,639 -
Unrealized gain on swap agreement - (3,072 )
Unrealized gain on derivatives (180,000 ) -
Stock issued to vendors for services 778,985 260,325
Stock issued to employees as incentive compensation 3,545,422 1,486,265
Loss from proportionate share of equity investment 2,105
Loss on disposal of equipment 1,451 -
Changes in working capital items net of acquisitions:
Accounts receivable, net of allowance (306,115 ) 143,253
Prepaid expenses and other current assets (2,291 ) (89,989 )
Accounts payable and accrued expenses 188,546 122,276
Deferred compensation 40,250 170,000
Deferred revenue 133,671 30,927
Other current liabilities - (340,044 )
Net cash (used in) provided from operating activities (58,620 ) 134,484
Cash flows from investing activities:
Landfill additions / ARO adjustments (29,669 )
Acquisition of property, plant and equipment (2,436,439 ) (295,913 )
Purchases of short-term investments (1,947,127 )
True up related to acquisition 245,222
Proceeds from sale of property, plant and equipment 46,975 -
Net cash used in investing activities (4,121,039 ) (295,913 )
Cash flows from financing activities:
Proceeds from loans 2,150,000 -
Proceeds from issuance of common stock 1,100,000 -
Principle payments on notes payable (33,567 ) (489,286 )
Proceeds from line of credit - 750,000
Net cash provided from financing activities 3,216,433 260,714
Net change in cash (963,226 ) 99,285
Beginning cash 2,729,795 438,907
Ending cash $ 1,766,569 $ 538,192
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest $ 997,341 $ 272,840

Investor Contact:
Christine J. Petraglia
Managing Director, Investor Relations
PCG Advisory Group

Media Contact:
Sean Leous
Managing Director, Public Relations
PCG Advisory Group

Source: Meridian Waste Solutions, Inc.