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Westway Group, Inc. Reports 21% Increase in Consolidated Net Income



Westway Group, Inc. Reports 21% Increase in Consolidated Net Income

NEW ORLEANS, Nov. 9, 2012 (GLOBE NEWSWIRE) -- Westway Group, Inc.
(Nasdaq:WWAY) today reported an increase of $629,000 or 21% in consolidated
net income for the three months ended September 30, 2012 to $3.7 million
compared to $3.0 million for same period in 2011. Westway Group Inc. also
reported an increase of $845,000 or 7% in consolidated Adjusted EBITDA to
$13.3 million for the three months ended September 30, 2012 compared to $12.5
million for the same period in 2011.

For the nine months ended September 30, 2012, the Company reported a 14%
increase in consolidated net income to $7.9 million compared to $6.9 million
for the same period in 2011. Additionally, the Company also reported a 4%
increase in consolidated Adjusted EBITDA to $36.2 million as compared to $34.7
million for the same period in 2011.

Third Quarter 2012 Highlights:

  * Consolidated net revenue increased $3.1 million, or 3%, to $106.2 million
    for the third quarter of 2012, as compared to $103.0 million in the third
    quarter of 2011, primarily attributable to increases in our liquid feed
    supplement net revenue. We achieved this increase by providing our liquid
    feed customers with products that met their price points and business
    needs in a variety of market conditions.
     
  * Our liquid feed supplements business recognized improvements in all three
    of its key performance indicators in the third quarter of 2012 compared to
    the same period in 2011.

    * Dollar gross profit increased $1.4 million, or 11%.
    * Gross profit margin percentage increased to 16.9% compared to 15.7%.
    * Tonnage sold totaled 469,000 tons, an increase of 1%. This and other
      improvements mentioned were partially due to our success in securing
      favorable supply contracts for several of our key ingredients. This
      combined with our modest volume increase and strong demand for our
      products enabled us to improve the gross profit margin.

  * The liquid feed supplements business also made the following achievements
    in the third quarter of 2012:

    * Signed a licensing agreement with a commercial dry feed manufacturer,
      which will further our research into developing a new profitable process
      in the manufacturing of pellet feed. 
       
    * Expanded the Sweet Lac product capacity by securing an additional source
      of the main ingredient, condensed whey. Currently, we are achieving
      profits from the sale of unprocessed condensed whey, and we are working
      on implementing our patented whey treatment process in order to begin
      producing Sweet Lac on a large commercial scale.

  * Our total global bulk liquid storage capacity increased to 369 million
    gallons at September 30, 2012, which is up from 354 million gallons at the
    end of the third quarter of 2011.
     
  * In our bulk liquid storage business, the following construction projects
    were either completed or under way during the third quarter of 2012:

    * Capacity expansion continued at our Houston 1, TX terminal, which will
      add 6.0 million gallons of storage capacity and three new dock lines, as
      well as associated inbound and outbound marine and land traffic
      infrastructure. Half of this capacity is already under a long term
      agreement for a lease beginning early in the fourth quarter of 2012. The
      remaining capacity from this expansion is on budget and scheduled for
      completion at the end of the fourth quarter of 2012.
    * At our Houston 2, TX terminal, we completed a project that added
      2.5 million gallons of storage capacity. The project was completed on
      time and all of the additional capacity is currently under contract.
    * Construction has been completed subsequent to the end of the third
      quarter of 2012 of a new 3.0 million gallon tank at our Port Allen, LA
      terminal. The tank is already under a ten year lease agreement, which
      began in October 2012.

  * In late August 2012, the New Orleans area experienced Hurricane
    Isaac. Westway's facilities did not suffer any damage, and commercial
    operations continued uninterrupted.
     
  * In late October 2012, our facilities in Baltimore, MD, Philadelphia, PA,
    and Albany, NY experienced Hurricane Sandy. These facilities did not
    suffer any damage, and continued operations with only minor interruptions.

Third Quarter 2012 Results Compared to Third Quarter 2011 Results

The following is a discussion of results for the third quarter of 2012,
compared to results for the third quarter of 2011.

Three Month Comparison of Consolidated Performance (in thousands) (Unaudited)

                    Three Months Ended  Three Months Ended
                    September 30, 2012  September 30, 2011 
                    Consolidated        Consolidated
                                         
Total Net Revenue   $106,152            $103,042
Adjusted EBITDA (1)  13,298              12,453
Net Income           3,676               3,047

  * Consolidated net income increased $629,000 or 21% to $3.7 million for the
    three months ended September 30, 2012 compared to $3.0 million in the same
    period in 2011. Reflected in net income was an income tax provision for
    the three months ended September 30, 2012 of $1.3 million compared to $1.7
    million for the same period in 2011. 
     
  * Consolidated Adjusted EBITDA for the three months ended September 30, 2012
    increased $845,000 or 7% to $13.3 million compared to $12.5 million during
    the same period of 2011.
     
  * Consolidated net revenue for the three months ended September 30, 2012
    increased $3.1 million or 3% to $106.2 million compared to $103.0 million
    for the same period of 2011. 
     
  * Net revenue for the bulk liquid storage business increased $525,000 or 2%
    to $22.4 million for the third quarter of 2012 as compared to $21.9
    million for the same period in 2011. Our total bulk liquid storage
    capacity (net of disposals and not including construction in progress)
    increased to 369 million gallons at the end of the third quarter 2012 as a
    result of recent expansions in our Houston, TX and Amsterdam facilities.
     
  * In the liquid feed supplements business, net revenue for the three months
    ended September 30, 2012 totaled $83.7 million, an increase of $2.6
    million or 3%, over the same period of 2011. Volume for the three months
    ended September 30, 2012 increased 1% to 469,000 tons, compared to 465,000
    tons for the same period in 2011. 
     

First Nine Months Comparison of Consolidated Performance (in thousands)
(Unaudited)

                    Nine Months Ended   Nine Months Ended
                    September 30, 2012  September 30, 2011 
                    Consolidated        Consolidated
                                         
Total Net Revenue    314,698             290,186
Adjusted EBITDA (1)  36,236              34,682
Net Income           7,873               6,899

  * Consolidated net income increased $974,000 or 14% to $7.9 million for the
    nine months ended September 30, 2012 compared to $6.9 million during the
    same period of 2011. Reflected in net income was an income tax provision
    for the nine months ended September 30, 2012 of $4.0 million compared to
    $3.5 million for the same period in 2011. 
     
  * Consolidated Adjusted EBITDA increased $1.6 million, or 4% to $36.2
    million during nine months ended September 30, 2012 compared to $34.7
    million during the same period of 2011.
     
  * Consolidated net revenue increased $24.5 million or 8% to $314.7 million
    in the nine months ended September 30, 2012 as compared to $290.2 million
    during the same period in 2011. 
     
  * In the bulk liquid storage business, net revenue totaled $67.2 million for
    the nine months ended September 30, 2012 and $66.7 million during the same
    period in 2011. Our total bulk liquid storage capacity (net of disposals
    and not including construction in progress) increased to 369 million
    gallons at the end of the third quarter 2012 as a result of recent
    expansions in our Houston, TX and Amsterdam facilities.
     
  * In the liquid feed supplements business, net revenue for the nine months
    ended September 30, 2012 totaled $247.5 million, an increase of $24.0
    million or 11%, over the same period of 2011. Volume for the nine months
    ended September 30, 2012 increased 7% to 1.4 million tons, compared to 1.3
    million tons for the same period in 2011. 

Reconciliations of Net Income to Adjusted EBITDA: (in thousands) (unaudited)

Adjusted EBITDA differs from net income primarily due to certain non-cash
expenses, which have been excluded from Adjusted EBITDA (see the
reconciliation below). Adjusted EBITDA is presented in this release because it
is an important supplemental measure of our performance used by management in
the evaluation of the performance of the Company. EBITDA-based measures are
frequently used by securities analysts, investors and other interested parties
in the evaluation of businesses.  

                                                                  
                                                                  
                       Three Months  Three Months  Nine Months   Nine Months
                       Ended         Ended         Ended         Ended
                       September 30, September 30, September 30, September 30,
                       2012          2011          2012          2011 
                       Consolidated  Consolidated  Consolidated  Consolidated
                       (unaudited)   (unaudited)   (unaudited)   (unaudited)
                                                                  
Net Income              $ 3,676       $ 3,047       $ 7,873       $ 6,899
Interest, net           898           942           2,650         3,509
Income tax provision    1,323         1,713         4,007         3,521
Depreciation and        6,955         6,490         20,560        19,134
amortization
Stock compensation      400           219           1,037         848
expense
Loss on disposal of
property, plant &       46            42            109           771
equipment
                                                                  
Adjusted EBITDA (1)     $ 13,298      $ 12,453      $ 36,236      $ 34,682

Note 1- Adjusted EBITDA, as used herein, is defined as net income plus
interest expense net of interest income, income tax provision, depreciation
and amortization, stock compensation expense, and net loss on disposal of
plant, property, and equipment. Adjusted EBITDA is not a U.S. generally
accepted accounting principle ("GAAP") measure of performance or
liquidity. Other companies may calculate Adjusted EBITDA differently. Our
Adjusted EBITDA numbers, as well as other information in this press release,
should be read in conjunction with our 10-Q filed today.

Strategic Review. On August 2, 2012, we announced that the Company entered
into final negotiations with a selected group of bidders to possibly acquire
our Westway Terminals business. On August 2, 2012, we also announced the
postponement of our annual meeting of stockholders, originally scheduled for
August 6, 2012, to allow the Special Committee and our Board of Directors
additional time to complete the evaluation of strategic alternatives available
to the Company. The Board has not yet set a new date for the annual
meeting. The Board has further decided that, until the conclusion of the
Special Committee's strategic evaluation process, consideration of matters
affecting the capitalization of the Company, including the declaration of any
dividends, will be deferred. See the Company's Form 8-K filed with the SEC on
August 3, 2012 for additional information.

Forward-Looking Statements.  This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 
In some cases, you can identify forward-looking statements by terminology such
as "may," "should," "could," "would," "will," "expect," "plan," "anticipate,"
"believe," "estimate," "continue," or the negative of such terms or other
similar expressions.  We have based our forward-looking statements on our
current expectations and projections about future events.  Our forward-looking
statements are subject to known and unknown risks, uncertainties and
assumptions about us that may cause our actual results, levels of activity,
performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied
by such forward-looking statements.  Factors that might cause or contribute to
such a discrepancy include, but are not limited to, those described in our
Form 10-Q filed today, and other SEC filings.

About Westway Group, Inc.  Westway Group, Inc. ("Westway") is a leading
provider of bulk liquid storage and related value-added services and a leading
manufacturer and distributor of liquid animal feed supplements.

For more information for periods ending September 30, 2012 and September 30,
2011, please refer to the Company's Form 10-Q, which will be available on
Westway's website address at www.westway.com.

The Westway Group, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7654

Summarized Financial Data (in thousands)                     
                                                             
Balance Sheet - Selected Items           As of 
                                         September 30, 2012 December 31, 2011 
                                         (unaudited)         
ASSETS                                                       
Total current assets                      $ 77,550           $ 87,094
Property, plant and equipment, net        328,771            323,458
Total assets                              507,153            512,031
                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Total current liabilities                 $ 35,081           $ 50,097
Borrowings under credit facilities        90,534             93,534
Deferred income taxes                     74,640             71,565
Total liabilities                         202,387            215,898
Total stockholders' equity                304,766            296,133
Total liabilities and stockholders'       507,153            512,031
equity

                                                                  
                                                                  
Income Statement -                                                
Selected Items
                       Three Months  Three Months  Nine Months   Nine Months
                       Ended         Ended         Ended         Ended
                       September 30, September 30, September 30, September 30,
                       2012          2011          2012          2011 
                       (unaudited)   (unaudited)   (unaudited)   (unaudited)
                                                                  
Total net revenue       $ 106,152     $ 103,042     $ 314,698     $ 290,186
Total costs of sales –
liquid feed             69,565        68,393        206,786       187,593
supplements 
Other operating costs   14,524        14,182        44,800        43,502
and expenses 
Depreciation and        6,955         6,490         20,560        19,134
amortization
Selling, general and
administrative          9,069         8,105         27,601        24,804
expenses 
Operating income        6,039         5,872         14,951        15,153
                                                                  
Net Income              3,676         3,047         7,873         6,899
Net (income)
applicable to           (1,389)       (1,301)       (2,661)       (1,301)
participating
stockholders
Net income applicable   1,141         615           1,809         2,213
to common stockholders
                                                                  
Earnings per share of                                             
common stock:
Basic                   $ 0.04        $ 0.02        $ 0.07        $ 0.06
Diluted                 $ 0.04        $ 0.02        $ 0.07        $ 0.06
                                                                  
Dividends declared per  $ --          $ 0.04        $ 0.08        $ 0.04
share
                                                                  

CONTACT: Thomas A. Masilla, Jr.
         Chief Financial Officer of Westway Group, Inc.
         +1-504-636-4245

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