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Meridian Waste Solutions Reports Second Quarter 2017 Results

Aug 22, 2017
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Record Revenue Growth of 78% to $14.2 Million; Adjusted EBITDA of $2.1 Million

ATLANTA, GA / ACCESSWIRE / August 22, 2017 / Meridian Waste Solutions, Inc. (NASDAQ: MRDN) ("Meridian Waste" or the "Company"), a vertically integrated, non-hazardous solid waste services company, today reported financial and operational results for the three-month period ended June 30, 2017. Meridian Waste will host a shareholder update conference call on Thursday, September 14, 2017 at 4:30pm ET.

Key Highlights for Second Quarter 2017:

  • Record quarterly revenues of $14.2 million, increased 78% compared to the first quarter ended March 31, 2016, primarily due to the acquisition of the CFS Group;
  • Organic revenue growth of 10.2%;
  • Adjusted EBITDA of $2.1 million in relation to interest expense of $2.2 million;
  • Commenced service in St. Louis County, Missouri, Districts 4 and 6, to 22,000 homes, valued at over $25 million revenue over 5 years;
  • Named Chris Diaz as CFO; and
  • Acquired Mobile Science Technologies, Inc., to strengthen technology platform and advance communications and engagement with customers.

Segment and Related Information for the Six Months Ended June 30, 2017:

With the acquisition of the CFS Group during the three months ended March 31, 2017, the Company's operations are now managed through two operating segments:

  • Mid-Atlantic region, centered upon the Richmond, VA area; and
  • Midwest region, centered upon the St. Louis, MO area.

For the six months ended June 30, 2017, Adjusted EBITDA of $6.0 million in relation to interest expense of $3.9 million

   
Service
Revenues
   
Net
Income (loss)
   
Depreciation and Amortization
   
Capital Expenditures
   
Goodwill
   
Total
Assets
 
                                     
Mid-Atlantic
 
$
8,160,000
   
$
(2,841,000
)
 
$
3,072,000
   
$
2,626,000
   
$
6,014,000
   
$
58,800,000
 
Midwest
   
16,965,000
     
(1,996,000
)
   
4,296,000
     
6,500,000
     
7,234,000
     
50,205,000
 
Corporate
   
-
     
(5,718,000
)
   
23,000
     
100,000
     
-
     
1,085,000
 
Total
 
$
25,125,000
   
$
(10,555,000
)
 
$
7,391,000
   
$
9,226,000
   
$
13,248,000
   
$
110,090,000
 


"While it's been a very productive first half of 2017, unfortunately, we did not meet our funding goals in January's public offering and had to raise additional capital in June in order to keep up with our capital expenditure budgets," stated Chairman and Chief Executive Officer Jeff Cosman. Mr. Cosman, added, "Although this hurt our stock price, it was necessary to position us for continued growth to serve our customers. As we continue to execute within our two existing markets, there remains plenty of opportunity to further expand in other regions that we are evaluating. In addition to our commitment and the growth opportunities in our waste operations, I am very excited about identified opportunities with both Meridian Innovations and Mobile Science Technologies. In each opportunity, waste, innovations or technology, Meridian remains focused and committed to its integrated service platform from collection to landfill, long-term contracted revenue and developing technologies."

Two recent business developments demonstrate Meridian Waste's commitment to excellence in serving its customers:

  • On April 1, 2017, Meridian Waste began providing garbage and recycling service to 22,000 homes in St. Louis County, Missouri, Districts 4 and 6. The value of the combined contracts is expected to be in excess of $25 million over the five-year term.
  • On July 17, 2017, Meridian Waste successfully renewed its contract with Florissant, Missouri, and will continue to provide garbage and recycling services to 17,500+ homes through spring 2021 ensuring reliable collection and environmentally safe disposal services for years to come.

Meridian Waste provides non-hazardous solid waste collection, transfer, recycling and disposal services in two markets: St. Louis, Missouri and Richmond, Virginia. The Company's vertically integrated service platform consists of over 200 trucks, four transfer stations, and three municipal solid waste landfills. Currently, Meridian Waste serves 105,000 residential customers, covered by approximately 35 municipal contracts with terms having three to six years remaining. Additionally, Meridian Waste serves 8,000 commercial customers.

The Company's strategy in its base platform business of waste services is two-fold: (1) to grow existing markets with new contracts and acquiring tuck-in operations and (2) to enter new regional markets by completing more significant acquisitions. In the first quarter of 2017, Meridian Waste executed on this strategy by, (1) obtaining by bid contracts with St. Louis County Districts 4 and 6, which added more than 20,300 residential customers, and (2) entering the Richmond, Virginia market by completing the acquisition of The CFS Group, which added more than 30,000 residential and commercial customers, two landfills, one transfer station and one recycling facility.

Meridian Waste is also developing technologies to support growth and provide differentiation. The Company has advanced two operating subsidiaries to advance its technological efforts: Meridian Innovations, Inc. ("Meridian Innovations") and Mobile Science Technologies, Inc. ("Mobile Science").

Meridian Innovations is seeking to capitalize on the value of recovered materials by investing in advanced byproduct recovery technologies. Enormous volumes of manufacturing residues are disposed of on a daily basis and contain concentrated sources of otherwise valuable material that could yield superior economic value should they be efficiently recovered and further processed. The Company has assembled a team of technical experts with a successful track record in technology development and commercialization through the recovery of materials from otherwise low-value industrial byproduct streams.

The Company has negotiated a joint venture agreement for Meridian Innovations for the recovery of lignin from the byproduct streams of those businesses that process woody biomass. Lignin is an essential component in all plants and, if efficiently recovered and further processed, can be used to produce a wide array of valuable materials such as plastics, carbon fiber, adhesives and transportation fuels. The Joint Venture is subject to Meridian's credit agreement, and the Company has been working to bring this opportunity to commercialization. The Company is excited about the Meridian Innovations pipeline of acquisitions for toll processing and commercializing its products.

Mobile Science is applying technology and connectivity to improve operational efficiencies. Mobile communications with residents and municipalities provide real-time access to customers, enabling them to communicate, follow and complete transactions, which results in a competitive advantage for the Company. Through Mobile Science's [technology applications], the Company is implementing a direct connectivity customer service platform, systems for electronic invoicing and electronic payment, and additional non-waste oriented municipal access points. Mobile Science has been active on its pipeline of acquisitions as well.

Financial Results for the Three Months Ended June 30, 2017:

For the three months ended June 30, 2017, revenues were $ 14.2 million, a 78% increase from $8.0 million for the three months ended June 30, 2016. Organic revenue growth of the Midwest segment of 10.2% was driven by additional customers and price increases.

Gross profit improved slightly by $44,249 to $2.8 million in the three months ended June 30, 2017, as compared to a $2.8 million gross profit in the three months ended June 30, 2016.

Operating expenses were $11.4 million or 80% of revenue, for the three months ended June 30, 2017, as compared to $5.2 million, or 65% of revenue, for the three months ended June 30, 2016. This is an increase of 15% of revenue from the three months ended June 30, 2016. The increase is due to increased labor costs in 2017 in the Midwest segment. Operating labor expenses for the 2016 period were 19% of revenues, whereas 2017 expenses are 28.5% of revenue. The reason for this is twofold; first, the Company needed to increase driver wages to help stabilize the workforce and avoid turnover, second, add-on revenue from the St. Louis County contracts has not materialized as quickly as expected, but the Company has increased its labor force to service the expected increased revenue.

Additionally, the CFS Group's operating expenses were significantly higher than that of the other operating subsidiaries and are being reduced to a more optimal level. Management believes there is an opportunity to improve efficiencies of operations at CFS, and would expect its operating margins to improve over time. There are also synergistic opportunities, such as creating density in some of its routes and internalization of its waste, which are also in process.

For the three months ended June 30, 2017, adjusted EBITDA was $2.1 million.

The following table presents Adjusted EBITDA, a non-GAAP financial measure, and provides a reconciliation of Adjusted EBITDA to the directly comparable GAAP measure reported in the Company's consolidated financial statements:

   
June 30, 2017
 
Net loss
  $ (7,532,480 )
Extinguishment of derivative liability
       
Depreciation and amortization
    4,513,000  
Financing and acquisition related costs
    400,400  
Interest expense
    2,229,125  
Other income, corporate overhead, bonus, internalization
    2,486,947  
Adjusted EBITDA
  $ 2,096,992  


Net loss for the three months ended June 30, 2017, increased by $3.0 million to $7.5 million or $0.94 per share, as compared to $4.4 million or $3.48 per share in the three months ended June 30, 2016. Included in net loss attributable to common stockholders for the six months ended June 30, 2017, is a deemed dividend-related to beneficial conversion feature and accretion of a discount on Series C Preferred Stock of $2.1 million.

At June 30, 2017, Meridian Waste had $2.3 million of cash and cash equivalents, $6.9 million of capital leases, $82.0 million of debt and 9.4 million shares issued and outstanding.

Financial Results for the Six Months Ended June 30, 2017:

For the six months ended June 30, 2017, revenues were $25.1 million, a 62% increase from $15.5 million for the six months ended June 30, 2016. Organic revenue growth of the Midwest segment of 9.5% was driven by additional customers and price increases.

Gross profit improved by $1.3 million to $6.7 million in the six months ended June 30, 2017, as compared to a $5.4 million gross profit in the six months ended June 30, 2016.

Operating expenses were $18.4 million or 73% of revenue, for the six months ended June 30, 2017, as compared to $10.1 million, or 65% of revenue, for the six months ended June 30, 2016. This is an increase of 8% of revenue from the six months ended June 30, 2016. The increase is primarily due to increased labor costs in 2017 in the Midwest segment. Operating labor expenses for the 2016 period were 19.5% of revenue, whereas 2017 expenses are 27.1% of revenue. The reason for this is twofold; first, the Company needed to increase driver wages to help stabilize the workforce and avoid turnover, second, add-on revenue from the St. Louis contracts has not materialized as quickly as expected, but the Company has increased its labor force to service the expected increased revenue.

Management believes there is an opportunity to improve efficiencies of operations at CFS, and would expect its operating margins to improve over time. There are also synergistic opportunities, such as creating density in some of its routes and internalization of its waste, which are also in process.

For the six months ended June 30, 2017, adjusted EBITDA was $2.9 million; includes a full quarter pro-forma effect of the CFS acquisition.

The following table presents Adjusted EBITDA, a non-GAAP financial measure, and provides a reconciliation of Adjusted EBITDA to the directly comparable GAAP measure reported in the Company's consolidated financial statements:

   
June 30, 2017
 
Net loss
  $ (12,745,235 )
Extinguishment of derivative liability
    (2,654,821 )
Depreciation and amortization
    7,491,591  
Financing and acquisition related costs
    1,057,400  
Interest expense
    3,924,604  
Other income, corporate overhead, bonus, internalization
    5,857,013  
Adjusted EBITDA
  $ 2,930,552  


Net loss for the six months ended June 30, 2017, increased by $2.1 million to $12.7 million or $1.78 per share, as compared to $10.6 million or $9.05 per share in the six months ended June 30, 2016. Included in net loss attributable to common stockholders for the six months ended June 30, 2017 is a deemed dividend related to beneficial conversion feature and accretion of a discount on Series C Preferred Stock of $2.1 million.

Conference Call Details:

Date: Thursday, September 14, 2017
Time: 4:30PM ET
Dial-in Number: (888) 567-1603
International Dial-in Number: (212) 548-3250
Webcast: http://www.investorcalendar.com/event/20007

Non-GAAP Financial Measure - Adjusted EBITDA

We make reference to "Adjusted EBITDA," a measure of financial performance not calculated in accordance with accounting principles generally accepted in the United States ("GAAP"). Management has included Adjusted EBITDA because it believes that investors may find it useful to review our financial results as adjusted to exclude items as determined by management. Reconciliations of this non-GAAP financial measure to the most directly comparable GAAP financial measure, net loss, to the extent available without unreasonable effort, are set forth below. The Company defines Adjusted EBITDA as earnings or (loss) from continuing operations before the items noted in the table on page 2. 

Management believes Adjusted EBITDA provides a meaningful representation of our operating performance that provides useful information to investors regarding our financial condition and results of operations. Adjusted EBITDA is commonly used by financial analysts and others to measure operating performance. Furthermore, management believes that this non-GAAP financial measure may provide investors with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. However, while we consider Adjusted EBITDA to be an important measure of operating performance, Adjusted EBITDA and other non-GAAP financial measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Further, Adjusted EBITDA, as we define it, may not be comparable to EBITDA, or similarly titled measures, as defined by other companies.

About Meridian Waste Solutions, Inc.

Meridian Waste Solutions, Inc. (NASDAQ: MRDN) is a company defined by our commitment to servicing our customers with unwavering respect, fairness and care. We are focused on finding and implementing solutions to solid waste needs and challenges within the industry and for our customers. Meridian Waste's core business is centered on residential and commercial waste collection and disposal but it also includes a fundamental objective to seek rewarding environmental solutions through innovation. Currently, the company operates in St. Louis, Missouri and Richmond, Virginia servicing over 113,000 residential, commercial, industrial and governmental customers. In addition to a fleet of commercial, residential and roll off trucks, the Company operates four transfer stations, one recycling facility and three municipal solid waste landfills. For more information, visit www.MWSinc.com.

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.

Contact: 

Hayden IR
ir@meridianwastesolutions.com
(917) 658-7878

 

MERIDIAN WASTE SOLUTIONS, INC. AND SUBSIDIARIES 

 CONDENSED CONSOLIDATED BALANCE SHEETS

 

Assets
 
June 30,
2017
   
December 31, 2016
 
Current assets:
 
(Unaudited)
   
(Unaudited)
 
             
Cash
 
$
2,296,411
   
$
824,928
 
Short-term investments - Restricted
   
-
     
1,953,969
 
Accounts receivable, net
   
6,593,302
     
2,540,657
 
Prepaid expenses
   
1,232,130
     
746,776
 
Other current assets
   
530,902
     
39,895
 
                 
Total current assets
   
10,652,745
     
6,106,225
 
                 
Property, plant and equipment, at cost net of accumulated depreciation
   
35,765,862
     
16,797,015
 
Landfill assets, net of accumulated amortization
   
34,042,804
     
3,278,817
 
Assets held for sale
   
395,000
     
395,000
 
                 
Other assets:
               
                 
Deposits
   
229,779
     
144,793
 
Contract receivable
   
167,586
     
179,067
 
Goodwill
   
13,248,633
     
7,234,420
 
Capitalized software, net of accumulated amortization
   
131,271
     
356,167
 
Trademarks, net of accumulated amortization
   
194,250
     
-
 
Customer list, net of accumulated amortization
   
15,132,131
     
14,553,629
 
Non-compete, net of accumulated amortization
   
94,080
     
114,680
 
Website, net of accumulated amortization
   
36,403
     
38,819
 
                 
Total other assets
   
29,234,133
     
22,621,575
 
                 
Total assets
 
$
110,090,544
   
$
49,198,632
 
                 
Liabilities and Equity
               
Current liabilities:
               
Accounts payable
 
$
4,242,056
   
$
3,327,618
 
Accrued expenses
   
3,045,795
     
2,005,357
 
Notes payable, related parties
   
356,891
     
609,891
 
Deferred compensation
   
-
     
769,709
 
Deferred revenue
   
5,744,144
     
3,431,869
 
Derivative liability
   
-
     
3,343,623
 
Current portion - capital leases payable
   
543,775
     
-
 
Current portion - long term debt
   
1,366,676
     
1,385,380
 
                 
Total current liabilities
   
15,299,337
     
14,873,447
 
                 
Long-term liabilities:
               
Asset retirement obligation
   
8,078,125
     
5,299
 
Deferred tax liability
   
418,000
     
193,482
 
Deferred rent
   
54,149
         
Capital leases, payable
   
6,372,297
     
-
 
Long-term debt, net of current
   
81,640,398
     
41,810,733
 
                 
Total long term liabilities
   
96,562,969
     
42,009,514
 
                 
Total liabilities
   
111,862,306
     
56,882,961
 
                 
Preferred Series C stock redeemable, cumulative, stated value $100 per share, par value $.001, 67,361 shares authorized, 0 and 35,750 shares issued and outstanding, respectively
   
-
     
2,644,951
 
                 
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, 0 and 71,210 issued and outstanding
   
-
     
-
 
Common stock, par value $.025, 75,000,000 shares authorized, 9,368,196 and 1,712,471 shares issued and 9,356,696 and 1,700,971 shares outstanding, respectively
   
233,884
     
42,812
 
Common stock to be issued
   
16,979
         
Treasury stock, at cost, 11,500 shares
   
(224,250
)
   
(224,250
)
Additional paid in capital
   
54,517,377
     
35,752,738
 
Accumulated deficit
   
(56,530,500
)
   
(45,900,580
)
Total Meridian Waste Solutions, Inc. shareholders' deficit
   
(1,986,510
)
   
(10,329,280
)
Noncontrolling interest
   
214,748
     
-
 
Total equity
   
(1,771,762
)
   
(10,329,280
)
                 
Total liabilities and equity
 
$
110,090,544
   
$
49,198,632
 

 

MERIDIAN WASTE SOLUTIONS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   
Three months ended
 
   
June 30,
2017
   
June 30,
2016
 
   
(Unaudited)
   
(Unaudited)
 
             
Service Revenue
 
$
14,220,423
   
$
8,006,098
 
                 
Cost and expenses:
               
Operating
   
11,370,740
     
5,200,644
 
Bad debt expense
   
158,886
     
10,969
 
Depreciation and amortization
   
4,392,825
     
1,800,737
 
Accretion expense
   
112,805
     
-
 
Impairment expense
   
221,146
     
1,255,269
 
Selling, general and administrative
   
3,167,699
     
3,904,634
 
                 
Total cost and expenses
   
19,424,101
     
12,172,253
 
                 
Other income (expenses):
               
Miscellaneous (expense) income
   
25,098
     
(4,436
)
Gain on disposal of assets
   
-
     
4,504
 
Unrealized loss on change in fair value of derivative liability
   
-
     
(60,000
)
Unrealized loss on investment
   
(2,324
)
   
-
 
Gain on contingent liability
   
-
     
1,000,000
 
Interest income
   
454
     
4,287
 
Interest expense
   
(2,229,125
)
   
(1,146,841
)
Total other expenses
   
(2,205,897
)
   
(202,486
)
                 
Loss before income taxes
   
(7,409,575
)
   
(4,368,641
)
                 
Provision for income taxes
   
(122,905
)
   
-
 
                 
Net loss
 
$
(7,532,480
)
 
$
(4,368,641
)
                 
Net loss attributable to noncontrolling interest
   
42,588
     
-
 
                 
Net loss attributable to common stockholders of Meridian Waste Solutions, Inc.
 
$
(7,575,068
)
 
$
(4,368,641
)
                 
Basic net loss per share
 
$
(0.94
)
 
$
(3.48
)
                 
Weighted average number of shares outstanding
   
8,042,278
     
1,256,873
 

 

MERIDIAN WASTE SOLUTIONS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   
Six months ended
 
   
June 30,
2017
   
June 30,
2016
 
   
(Unaudited)
   
(Unaudited)
 
             
Service Revenue
 
$
25,125,490
   
$
15,494,337
 
                 
Cost and expenses:
               
Operating
   
18,358,126
     
10,122,554
 
Bad debt expense
   
337,374
     
55,558
 
Depreciation and amortization
   
7,391,591
     
3,505,840
 
Accretion Expense
   
169,206
     
-
 
Impairment expense
   
221,146
     
1,255,269
 
Selling, general and administrative
   
7,227,845
     
9,891,297
 
                 
Total cost and expenses
   
33,705,288
     
24,830,518
 
                 
Other income (expenses):
               
Miscellaneous income
   
70,243
     
159
 
Gain on disposal of assets
   
841
     
3,053
 
Unrealized gain (loss) on change in fair value of derivative liability
   
(554,112
)
   
120,000
 
Gain on extinguishment of derivative instrument
   
2,654,821
     
-
 
Unrealized loss on investment
   
(8,179
)
   
-
 
Gain on contingent liability
   
-
     
1,000,000
 
Interest income
   
10,136
     
6,426
 
Interest expense
   
(3,924,604
)
   
(2,379,590
)
                 
Total other expenses
   
(1,750,854
)
   
(1,249,952
)
                 
Loss before income taxes
   
(10,330,652
)
   
(10,586,133
)
                 
Provision for income taxes
   
(224,518
)
   
-
 
                 
Net loss
 
$
(10,555,170
)
 
$
(10,586,133
)
                 
Net loss attributable to noncontrolling interest
 
$
74,748
   
$
-
 
                 
Net loss attributable to Meridian Waste Solutions, Inc
 
$
(10,629,918
)
 
$
(10,586,133
)
                 
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series C Preferred Stock
 
$
(2,115,317
)
 
$
-
 
                 
Net loss attributable to common stockholders
 
$
(12,745,235
)
 
$
(10,586,133
)
                 
Basic net loss per share
 
$
(1.78
)
 
$
(9.05
)
                 
Weighted average number of shares outstanding
               
(Basic and Diluted)
   
7,152,129
     
1,170,285
 

 

MERIDIAN WASTE SOLUTIONS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

   
Six months ended
 
   
June 30,
2017
   
June 30,
2016
 
   
(Unaudited)
   
(Unaudited)
 
             
Cash flows from operating activities:
               
Net loss
 
$
(10,555,170
)
 
$
(10,586,133
)
Adjustments to reconcile net loss to net cash (used in) provided from operating activities:
               
Depreciation and amortization
   
7,391,591
     
3,505,840
 
Interest accretion on landfill liabilities
   
169,206
     
91,589
 
Amortization of capitalized loan fees & debt discount
   
390,128
     
272,461
 
Unrealized (gain) loss on derivatives
   
554,112
     
(120,000
)
Bad Debt Expense
   
337,374
     
-
 
Stock issued to vendors for services
   
-
     
778,985
 
Stock and Options issued to employees as incentive compensation
   
70,701
     
5,572,098
 
Gain on extinguishment of debt
   
(2,654,821
)
   
-
 
Impairment expense
   
221,146
     
1,255,269
 
Gain on contingent liability
   
-
     
(1,000,000
)
Loss on disposal of equipment
   
841
     
5,158
 
Changes in working capital items net of acquisitions:
               
Accounts receivable, net of allowance
   
(1,596,593
)
   
(251,954
)
Prepaid expenses and other current assets
   
(216,759
)
   
(322,813
)
Deposits
   
-
     
(131,999
)
Accounts payable and accrued expenses
   
(697,954
)
   
1,286,944
 
Deferred compensation
   
(769,709
)
   
(237,047
)
Deferred revenue
   
2,312,274
     
189,130
 
Deferred Rent
   
54,149
     
-
 
Deferred Tax Liability
   
224,518
     
-
 
                 
Net cash (used in) provided from operating activities
   
(4,764,966
)
   
307,528
 
                 
Cash flows from investing activities:
               
Investment in CFS Group of Companies
   
(3,933,276
)
   
-
 
Landfill additions
   
(1,089,807
)
   
(297,482
)
Acquisition of property, plant and equipment
   
(1,558,891
)
   
(4,047,475
)
Purchases of short-term investments
   
1,953,969
     
(1,951,414
)
Cash proceeds received from post acquisition settlement
   
-
     
245,222
 
Proceeds from sale of property, plant and equipment
   
-
     
46,975
 
                 
Net cash used in investing activities
   
(4,628,005
)
   
(6,004,174
)
                 
Cash flows from financing activities:
               
(Repayments) on notes due related parties
   
(253,000
)
   
-
 
Proceeds from loans
   
569,212
     
2,150,000
 
Proceeds from issuance of common stock, net of fees
   
13,763,127
     
2,187,502
 
Principal payments on capital lease
   
(191,372
)
   
-
 
Principal payments on notes payable
   
(3,034,994
)
   
(131,262
)
Direct Financing lease
   
11,481
     
-
 
Net cash provided from financing activities
   
10,864,454
     
4,206,240
 
                 
Net change in cash
   
1,471,483
     
(1,490,406
)
                 
Beginning cash
   
824,928
     
2,729,795
 
                 
Ending cash
 
$
2,296,411
   
$
1,239,389
 
                 
Supplemental Disclosures of Cash Flow Information:
               
                 
Cash paid for interest
 
$
3,365,270
   
$
2,015,540
 
                 
Supplemental Non-Cash Investing and Financing Information:
               
                 
Note payable incurred for acquisition
 
$
34,100,000
   
$
-
 
Common stock issued for consideration in an acquisition
 
$
1,251,000
   
$
-
 
Retirement of Preferred Stock C and related top off provision through the issuance of Common Stock (and related derivative liability)
 
$
2,644,951
   
$
-
 
Property, plant and equipment additions financed with notes payable and capital leases
 
$
6,567,590
   
$
-
 
Deemed dividend related to beneficial conversion feature of Series C Preferred Stock
 
$
2,115,317
   
$
-
 

SOURCE: Meridian Waste Solutions, Inc.

Investors:

Hayden IR
IR@MWSInc.com
(917) 658-7878

Released Aug 22, 2017