Segment Highlights - Additional details regarding the FX impact on our comparative results can be found in the Foreign Currency sections of this report.

(all amounts are in thousands of U.S. dollars, unless otherwise stated)

Three months ended March 31
	2011		2012			Change			2012			Change
	(as reported)		(holding FX constant with the comparative period)						(as reported)
Revenues	$ 422,850		$ 440,959		$	18,109		$	438,275		$	15,425
Canada	$ 171,920		$ 176,602		$	4,682		$	173,918		$	1,998
U.S. south	$ 168,175		$ 187,407		$	19,232		$	187,407		$	19,232
U.S. northeast	$  82,755		$  76,950		$	(5,805	)	$	76,950		$	(5,805	)
Operating expenses	$ 246,805		$ 266,817		$	20,012		$	265,341		$	18,536
Canada	$  92,629		$  97,114		$	4,485		$	95,638		$	3,009
U.S. south	$ 100,282		$ 116,130		$	15,848		$	116,130		$	15,848
U.S. northeast	$  53,894		$  53,573		$	(321	)	$	53,573		$	(321	)
SG&A (as reported)	$  58,607		$  59,680		$	1,073		$	59,292		$	685
Canada	$  15,584		$  16,159		$	575		$	15,914		$	330
U.S. south	$  16,783		$  19,599		$	2,816		$	19,599		$	2,816
U.S. northeast	$   8,147		$   7,997		$	(150	)	$	7,997		$	(150	)
Corporate	$  18,093		$  15,925		$	(2,168	)	$	15,782		$	(2,311	)
EBITDA(A)(as reported)	$ 117,438		$ 114,462		$	(2,976	)	$	113,642		$	(3,796	)
Canada	$  63,707		$  63,329		$	(378	)	$	62,366		$	(1,341	)
U.S. south	$  51,110		$  51,678		$	568		$	51,678		$	568
U.S. northeast	$  20,714		$  15,380		$	(5,334	)	$	15,380		$	(5,334	)
Corporate	$ (18,093	)	$ (15,925	)	$	2,168		$	(15,782	)	$	2,311
Adjusted SG&A	$  52,774		$  56,986		$	4,212		$	56,626		$	3,852
Canada	$  15,584		$  16,159		$	575		$	15,914		$	330
U.S. south	$  16,783		$  19,599		$	2,816		$	19,599		$	2,816
U.S. northeast	$   8,147		$   7,997		$	(150	)	$	7,997		$	(150	)
Corporate	$  12,260		$  13,231		$	971		$	13,116		$	856
Adjusted EBITDA(A)	$ 123,271		$ 117,156		$	(6,115	)	$	116,308		$	(6,963	)
Canada	$  63,707		$  63,329		$	(378	)	$	62,366		$	(1,341	)
U.S. south	$  51,110		$  51,678		$	568		$	51,678		$	568
U.S. northeast	$  20,714		$  15,380		$	(5,334	)	$	15,380		$	(5,334	)
Corporate	$ (12,260	)	$ (13,231	)	$	(971	)	$	(13,116	)	$	(856	)

Revenues

Gross revenue by service type

The table below presents gross revenue by service type prepared on a consolidated basis and includes the impact of FX.

							Three months ended
		2012		%			2011		%
Commercial	$	162,362		37.0		$	154,544		36.5
Industrial		76,565		17.5			75,643		17.9
Residential		101,489		23.2			90,795		21.5
Transfer and disposal		140,866		32.1			141,553		33.5
Recycling and other		22,141		5.1			22,091		5.2
Gross revenues		503,423		114.9			484,626		114.6
Intercompany		(65,148	)	(14.9	)		(61,776	)	(14.6	)
Revenues	$	438,275		100.0		$	422,850		100.0

Revenue growth or decline components - expressed in percentages and excluding FX

The table below has been prepared using reported revenues for 2012 and gross revenues for 2011. The table has also been prepared assuming Canadian and U.S. dollar parity. For 2011, the amounts are presented as if Waste Services, Inc.'s operations were combined with ours for the three months ended March 31, 2010.

		Three months ended
		2012		2011(*)
Price
	Core price	1.0		1.7
	Fuel surcharges	0.8		1.0
	Recycling and other	(1.2	)	0.6
	Total price growth	0.6		3.3
Volume		(0.9	)	0.6
Total organic (decline) growth		(0.3	)	3.9
Acquisitions		4.6		7.0
Total growth excluding FX		4.3		10.9
FX		(0.7	)
Total growth including FX		3.6

Note:

(*)Prior period amounts have been adjusted to conform to the current period's presentation.

Free cash flow(B)

Purpose and objective

The purpose of presenting this non-GAAP measure is to provide similar disclosures presented by other U.S. publicly listed companies in our industry and to provide investors and analysts with an additional measure of our value and liquidity. We use this non-GAAP measure to assess our relative performance to our peers and to assess the availability of funds for growth investment, share repurchases, debt repayment or dividend increases.

Free cash flow(B) - cash flow approach
		Three months ended March 31
		2012(*)			2011			Change
Cash generated from operating activities	$	65,348		$	54,654		$	10,694
Operating and investing
Stock option expense		1,644			5,344			(3,700	)
Acquisition and related costs		288			315			(27	)
Restructuring expenses		-			847			(847	)
Other expenses		53			186			(133	)
Changes in non-cash working capital items		25,743			34,633			(8,890	)
Capital and landfill asset purchases		(50,091	)		(25,409	)		(24,682	)
Proceeds from the sale of capital assets		719			2,673			(1,954	)
Financing
Net realized foreign exchange loss (gain)		7			(3	)		10
Free cash flow(B)	$	43,711		$	73,240		$	(29,529	)

Note:

(*)Capital and landfill asset purchases include infrastructure expenditures of approximately $3,600.

Free cash flow(B)- adjusted EBITDA(A) approach

We typically calculate free cash flow(B) using an operations approach which is similar to the calculation required by our Canadian and U.S. facilities.

		Three months ended March 31
		2012(*)			2011			Change
Adjusted EBITDA(A)	$	116,308		$	123,271		$	(6,963	)
Capital and landfill asset purchases		(50,091	)		(25,409	)		(24,682	)
Proceeds from the sale of capital assets		719			2,673			(1,954	)
Landfill closure and post-closure expenditures		(1,534	)		(1,701	)		167
Landfill closure and post-closure cost accretion expense		1,308			1,269			39
Interest on long-term debt		(14,264	)		(16,518	)		2,254
Non-cash interest expense		1,690			1,353			337
Current income tax expense		(10,425	)		(11,698	)		1,273
Free cash flow(B)	$	43,711		$	73,240		$	(29,529	)

Note:

(*)Capital and landfill asset purchases include infrastructure expenditures of approximately $3,600.

Long-term debt to adjusted EBITDA(A)

Our adjusted EBITDA(A) ratio prepared on a combined basis, assuming FX parity, is 2.57 times.

Foreign Currency

(in thousands of U.S. dollars unless otherwise stated)

We have elected to report our financial results in U.S. dollars. However, we earn a significant portion of our revenues and earnings in Canada. We have provided our guidance assuming parity between the Canadian and U.S. dollar. If the U.S. dollar strengthens by 10 basis points our reported revenues will decline by approximately $7,600. EBITDA^(A) is similarly impacted by approximately $2,500, assuming a strengthening U.S. dollar. The impact on net income for a similar change in FX rate, results in an approximately $1,000 decline. Should the U.S. dollar weaken by 10 basis points, our reported results will improve by similar amounts.

	2012				2011
	Condensed Consolidated Balance Sheet	Condensed Consolidated Statement of Operations and  Comprehensive Income or Loss			Condensed Consolidated Balance Sheet	Condensed Consolidated Statement of Operations and  Comprehensive Income or Loss
	Current	Average	Cumulative Average		Current	Average	Cumulative Average
December 31					$ 0.9833		$ 1.0109
March 31	$ 1.0009	$ 0.9988	$ 0.9988		$ 1.0290	$ 1.0142	$ 1.0142

Quarterly dividend declared

The Company's Board of Directors declared a quarterly dividend of $0.14 Canadian per share to shareholders of record June 29, 2012. The dividend will be paid on July 16, 2012. The Company has designated these dividends as eligible dividends for the purposes of the Income Tax Act (Canada).

Definitions of Adjusted EBITDA and Free cash flow

^(A) All references to "Adjusted EBITDA" in this document are to revenues less operating expense and SG&A, excluding certain non-operating or non-recurring SG&A expense, on the consolidated statement of operations and comprehensive income or loss. Adjusted EBITDA excludes some or all of the following: certain SG&A expenses, restructuring expenses, goodwill impairment, amortization, net gain or loss on sale of capital assets, interest on long-term debt, net foreign exchange gain or loss, net gain or loss on financial instruments, other expenses, income taxes and income or loss from equity accounted investee. Adjusted EBITDA is a term used by us that does not have a standardized meaning prescribed by U.S. GAAP and is therefore unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA is a measure of our operating profitability, and by definition, excludes certain items as detailed above. These items are viewed by us as either non-cash (in the case of goodwill impairment, amortization, net gain or loss on financial instruments, net foreign exchange gain or loss, deferred income taxes and net income or loss from equity accounted investee) or non-operating (in the case of certain SG&A expenses, restructuring expenses, net gain or loss on sale of capital assets, interest on long-term debt, other expenses, and current income taxes). Adjusted EBITDA is a useful financial and operating metric for us, our Board of Directors, and our lenders, as it represents a starting point in the determination of free cash flow^(B). The underlying reasons for the exclusion of each item are as follows:

Certain SG&A expenses - SG&A expense includes certain non-operating or non-recurring expenses. These expenses include transaction costs related to acquisitions, fair value adjustments attributable to stock options, restricted share expense and a non-recurring one-time charge resulting from the non-renewal of the Company's former Vice Chairman and Chief Executive Officer's agreement. These expenses are not considered an expense indicative of continuing operations. Certain SG&A costs represent a different class of expense than those included in adjusted EBITDA.

Restructuring expenses - restructuring expenses includes costs to integrate various operating locations with our own, exiting certain property and building and office leases, employee severance and employee relocation costs incurred in connection with our acquisition of WSI. These expenses are not considered an expense indicative of continuing operations. Accordingly, restructuring expenses represent a different class of expense than those included in adjusted EBITDA.

Goodwill impairment - as a non-cash item goodwill impairment has no impact on the determination of free cash flow^(B).

Amortization - as a non-cash item amortization has no impact on the determination of free cash flow^(B).

Net gain or loss on sale of capital assets - proceeds from the sale of capital assets are either reinvested in additional or replacement capital assets or used to repay revolving credit facility borrowings.

Interest on long-term debt - interest on long-term debt is a function of our debt/equity mix and interest rates; as such, it reflects our treasury/financing activities and represents a different class of expense than those included in adjusted EBITDA.

Net foreign exchange gain or loss - as non-cash items, foreign exchange gains or losses have no impact on the determination of free cash flow^(B).

Net gain or loss on financial instruments - as non-cash items, gains or losses on financial instruments have no impact on the determination of free cash flow^(B).

Other expenses - other expenses typically represent amounts paid to certain management of acquired companies who are retained by us post acquisition and amounts paid to certain executives in respect of acquisitions successfully completed. These expenses are not considered an expense indicative of continuing operations. Accordingly, other expenses represent a different class of expense than those included in adjusted EBITDA.

Income taxes - income taxes are a function of tax laws and rates and are affected by matters which are separate from our daily operations.

Net income or loss from equity accounted investee - as a non-cash item, net income or loss from our equity accounted investee has no impact on the determination of free cash flow^(B).

^(B) We have adopted a measure called "free cash flow" to supplement net income or loss as a measure of our operating performance. Free cash flow is a term which does not have a standardized meaning prescribed by U.S. GAAP, is prepared before dividends declared and shares repurchased, and may not be comparable to similar measures prepared by other companies. The purpose of presenting this non-GAAP measure is to provide disclosure similar to the disclosure provided by other U.S. publicly listed companies in our industry and to provide investors and analysts with an additional measure of our value and liquidity. We use this non-GAAP measure to assess our performance relative to other U.S. publicly listed companies and to assess the availability of funds for growth investment, debt repayment, share repurchases or dividend increases. All references to "free cash flow" in this document have the meaning set out in this note. 

About Progressive Waste Solutions Ltd.

As North America's third largest full-service waste management company, we provide non-hazardous solid waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in 12 U.S. states and the District of Columbia and six Canadian provinces. We serve our customers with vertically integrated collection and disposal assets. Progressive Waste Solutions Ltd.'s shares are listed on the New York and Toronto Stock Exchanges under the symbol BIN. 

To find out more about Progressive Waste Solutions, visit our website at www.progressivewaste.com.

Management will hold a conference call on Friday, April 27, 2012, at 8:30 a.m. (ET) to discuss results for the three months ended March 31, 2012. Participants may listen to the call by dialing 1-888-300-0053, conference ID 68190909, at approximately 8:20 a.m. (ET). International or local callers should dial 647-427-3420. The call will also be webcast live at www.streetevents.com and at www.progressivewaste.com. A supplemental slide presentation will be available at www.progressivewaste.com.

A replay will be available after the call until Friday, May 11, 2012, at midnight, and can be accessed by dialing 1-855-859-2056, conference ID 68190909. International or local callers can access the replay by dialing 404-537-3406. The audio webcast will also be archived at www.streetevents.com and www.progressivewaste.com.