1282398--3/14/2007--WCA_WASTE

related topics

{cost, regulation, environmental}

{cost, contract, operation}

{debt, indebtedness, cash}

{condition, economic, financial}

{cost, operation, labor}

{loss, insurance, financial}

{provision, law, control}

{stock, price, share}

{capital, credit, financial}

{tax, income, asset}

{regulation, government, change}

{personnel, key, retain}

{control, financial, internal}

{stock, price, operating}

{competitive, industry, competition}

Our acquisition strategy has resulted and is expected to continue to result in significant goodwill and other intangible assets, which may need to be written down if performance is not as expected. We may incur charges related to acquisitions, which could lower our earnings. Risks Relating To Our Business Changes in interest rates may affect our profitability. We may not be successful in expanding the permitted capacity of our current or future landfills, which could restrict our growth, increase our disposal costs, and reduce our operating margins. We are subject to environmental and safety laws, which restrict our operations and increase our costs. We may become subject to environmental clean-up costs or litigation that could curtail our business operations and materially decrease our earnings. Our accruals for landfill closure and post-closure costs may be inadequate, and our earnings would be lower if we are required to pay or accrue additional amounts. A general downturn in U.S. economic conditions may reduce our business prospects and decrease our revenue and cash flows. We may be unable to obtain financial assurances necessary for our operations, which could result in the closure of landfills or the termination of collection contracts. Our business is capital intensive, requiring ongoing cash outlays that may strain or consume our available capital and force us to sell assets, incur debt, or sell equity on unfavorable terms. Increases in the costs of disposal may reduce our operating margins. Increases in the costs of labor may reduce our operating margins. Increases in the costs of fuel may reduce our operating margins. Increases in costs of insurance would reduce our operating margins. We may not be able to maintain sufficient insurance coverage to cover the risks associated with our operations, which could result in uninsured losses that would adversely affect our financial condition. Our failure to remain competitive with our numerous competitors, some of which have greater resources, could adversely affect our ability to retain existing customers and obtain future business. We may lose contracts through competitive bidding, early termination or governmental action, or we may have to substantially lower prices in order to retain certain contracts, any of which would cause our revenue to decline. Comprehensive waste planning programs and initiatives required by state and local governments may reduce demand for our services, which could adversely affect our waste volumes and the price of our landfill disposal services. Efforts by labor unions to organize our employees could divert management attention and increase our operating expenses. Current and proposed laws may restrict our ability to operate across local borders which could affect our manner, cost and feasibility of doing business. Risks Relating to Our Operations and Corporate Organization Poor decisions by our regional and local managers could result in the loss of customers or an increase in costs, or adversely affect our ability to obtain future business. We are vulnerable to factors affecting our local markets, which could adversely affect our stock price relative to our competitors. Seasonal fluctuations will cause our business and results of operations to vary among quarters, which could adversely affect our stock price. Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price. Our success depends on key members of our senior management, the loss of any of whom could disrupt our customer and business relationships and our operations. A controlling interest in our voting stock is held by one fund and a small number of individuals (including management), which when combined with various agreements and rights of the fund, may discourage a change of control transaction and may exert control over our strategic direction. Provisions in our amended and restated certificate of incorporation, our amended and restated bylaws and Delaware law could prohibit a change of control that our stockholders may favor and which could negatively affect our stock price. We do not anticipate paying cash dividends on our common stock in the foreseeable future, so you can only realize a return on your investment by selling your shares of our common stock. We may issue preferred stock that has a liquidation or other preference over our common stock without the approval of the holders of our common stock, which may affect those holders rights or the market price of our common stock. Risks Associated with Our Indebtedness We have a substantial amount of debt which could adversely affect our operations and financial performance. The provisions in our debt instruments impose restrictions on us that may limit the discretion of management in operating our business.

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1282398--3/14/2007--WCA_WASTE_CORP