SeeThruEquity Issues Update on National Waste Management Holdings, Inc. (NWMH)

NEW YORK, NY / ACCESSWIRE / July 13, 2016 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update on National Waste Management Holdings, Inc. NWMH with a price target of $0.90.

The report is available here: NWMH Update Note.

National Waste Management Holdings, Inc. NWMH is a solid waste management company, which specializes in construction and demolition (C&D) landfill services, recycling, transfer station services, and provides roll-off containers at affordable rates. NWMH is pursuing a growth strategy comprising both complementary acquisitions as well as organic growth initiatives as it seeks to become a leading national solid waste company. The company currently has a presence in Florida, and New York State, and is seeking to accelerate its growth through future acquisitions. In addition to acquisitive opportunities, NWMH stands to benefit from an experienced leadership team - a key attribute in a highly regulated industry - as well as by taking advantage of industry trends including national recycling mandates, as well as potential increases in residential construction and infrastructure spending.

NWMH has continued to advance its business model since we initiated coverage on the company in January. We see several potential catalysts ahead for the company. The company recently announced it would acquire Sivart Services, LLC ("Sivart"), a roll-off and compactor company located in Worchester, NY, and we expect at least one more acquisition during 2016. Management also continues to target an uplisting to a national exchange.

1Q16 results show early execution of growth plan

NWMH reported strong growth in 1Q16, with revenues climbing by 298% to $1.55mn from $0.39mn in 1Q15. Results place the company at an annualized revenue run rate of $6.2mn, which compares favorably to annual revenues of $2.5mn in FY15. Assuming NWMH is able to follow through on its plans to make 1-2 acquisitions in 2016 (including Sivart), the company appears to be on course for meeting our full year revenue estimate of $7.6mn, implying threefold growth over 2015. NWMH also generated healthy double-digit EBITDA margins of approximately 17% in 1Q16 (excluding a one-time write off of $72,473 in lost acquisition deposits). EBITDA calculated on this basis came in at $0.30mn and generally aligned with free cash flow after capital spending of $0.26mn. Our model now projects FY16 EBITDA to rise to $1.0mn from $0.4mn in FY15, and FY16 EPS of $0.00.

NWMH management targeting uplisting to national exchange

Importantly, NWMH management reiterated its goal to uplist shares to a major exchange, such as the NASDAQ or NYSE MKT. NWMH recently added an independent director to its Board, and shareholder's equity increased to $7.9mn in 1Q16, versus $5.6mn in 4Q15, prompting management to state that it is "much closer" to achieving an uplisting to a national exchange. Should the company be successful in this endeavor, it expects an uplisting to offer potential improvements to the liquidity in the stock, given the broader pool of possible institutional investors, and also believes that it could make it easier / less costly for new acquisitions, as potential target companies would likely be more willing to accept shares listed on a national exchange as a portion of the acquisition payment than OTC-listed shares.

Price target of $0.90 for NWMH

We continue to see NWMH as an intriguing roll up play in the waste industry. The company's 1Q16 results appear to be a significant step in the early phase of the NWMH's growth story. Results put the company's annual revenue run rate north of $6mn, following 50% growth in 2015, during which the company generated revenues of $2.5mn. This seems to position the company well to reach its growth goals over the next 12 months. We are adjusting our target to $0.90 to reflect a lower valuation assumption. The target suggests a EV/Revenue multiple of 4.4x 2017E revenue of $13.6mn.

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About National Waste Management Holdings, Inc.

National Waste Management Holdings Inc. is a growing and emerging vertically integrated solid waste management company with a concentration on C&D collection, hauling and recycling. National Waste services Florida's west coast and upstate New York and is a distinguished leader in solid waste services. Nationalwastemgmt.com.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

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Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity