Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste,
recycling and resource management services company, today reported
financial results for its third quarter fiscal year 2013, and
provided updated guidance for its 2013 fiscal year.
Highlights for the quarter included:
- Revenue growth of 0.4 percent over the same
quarter last year.
- Overall solid waste pricing growth of 1.0
percent was primarily driven by collection pricing growth of 1.9
percent as a percentage of collection revenues.
- Adjusted EBITDA* was $19.7 million for the
quarter.
For the quarter ended January 31, 2013, revenues were $115.0
million, up $0.4 million or 0.4 percent from the same quarter last
year, with revenue growth mainly driven by higher solid waste
collection pricing and acquisition activity. The company's net loss
attributable to common stockholders was ($11.4) million, or ($0.29)
per share for the quarter, compared to net loss of ($24.6) million,
or ($0.92) per share for the same quarter last year.
The current quarter includes a $1.6 million severance and
reorganization charge related to the sale of Maine Energy Recovery
Company facility ("Maine Energy") and other realignment activities,
$0.8 million of expenses related to the divestiture of Maine Energy
and the acquisition of Blow Bros. ("BBI"), and a $5.9 million loss
on the extinguishment of debt related to the repurchase of the
company's second lien notes in November 2012. By comparison, the
quarter ended January 31, 2012 included two non-cash charges
totaling $15.8 million related to our investment in US GreenFiber
LLC.
Excluding the unusual and one-time charges from each period and
assuming no tax impact, the company's net loss attributable to
common shareholders was ($3.1) million, or ($0.08) per common share
for the quarter, compared to net loss of ($8.9) million, or ($0.33)
per share for the same quarter last year.
Operating loss was ($0.1) million for the quarter, down from
operating income of $4.4 million in the same quarter last year.
Excluding the unusual and one-time charges, Adjusted Operating
Income* in the current quarter was $2.3 million, down $2.1 million
from the same quarter last year. Adjusted EBITDA was $19.7 million
for the quarter, down $2.5 million from same quarter last year.
"We continued to face operating challenges throughout our
business in the third quarter," said John W. Casella, Chairman and
CEO of Casella Waste Systems. "Landfill volumes at our western New
York landfills, volumes in our collection line-of-business, and the
ramp-up of several projects all underperformed our expectations in
the quarter and, as such, we have lowered our guidance for the
current fiscal year."
"We accomplished three important developments in the quarter
which we believe position the company well for the future,
specifically:
- "We sold our Maine Energy facility to the City of Biddeford,
Maine on November 30, 2012 and then permanently closed the facility
on December 31, 2012. On January 2, 2013, we began transferring
waste through our newly constructed transfer station in Westbrook,
Maine to other disposal facilities, including our North Country and
Southbridge landfills."
- "We completed the acquisition of all of the outstanding capital
stock of BBI on December 6, 2012. BBI's operations overlay well
with our footprint in New Hampshire and Maine and we expect the
acquisition to drive incremental value from our existing operations
through operational synergies and internalization benefits, and to
provide a growth platform in several new market areas."
- "On January 18, 2013, the Massachusetts Department of
Environmental Protection increased the annual permit limit at our
Southbridge landfill to 405,000 tons per year of municipal solid
waste (MSW) from the previous limit of 300,000 tons per year of
MSW. We have begun to ramp tonnages to the site, and given the
scarcity of disposal capacity in the Massachusetts market, we
expect to be operating at our newly permitted annual tonnage level
by the summer of 2013."
"In early December, we reset the strategic direction of the
company with two changes to our senior management team," Casella
said. "These changes furthered the steps we made in August to move
responsibility and accountability from the corporate office to
local operating units. The new leadership team is focused on making
the cultural and structural changes necessary to drive the company
to profitability. The solid waste business is inherently a local
business and by giving flexibility to the local teams, we believe
that we can lead in each market by reducing our cost of service and
providing our customers with exceptional service and
solutions."
Fiscal 2013 Outlook Due primarily to the
negative impact of lower than expected landfill volumes, softness
in the collection line-of-business, and project delays, the company
adjusted its fiscal year guidance in the following categories:
- Revenues between $462.0 million and $472.0 million.
- Adjusted EBITDA* between $87.0 million and $90.0 million.
The negative variances from our fiscal year forecast as
presented in December to this current forecast include the
following impacts from the third quarter and our conservative
expectations about the remainder of the fiscal year:
- While we expected performance in the disposal line-of-business
to decline year-over-year in our third quarter, actual performance
was below expectations due to lower than anticipated landfill
volumes (most pronounced at our western New York landfills), an
unfavorable shift in mix, and a regulatory delay in accessing
additional airspace at the Worcester landfill closure project.
Given the actual lower results from our third quarter and our
current revised forecast for the remainder of our fiscal year, we
expect disposal Adjusted EBITDA to be approximately $2.8 million
lower than that reflected in our December fiscal year
forecast.
- The collection line-of-business underperformed our December
forecast with weaker than expected volumes. Given the actual lower
results from our third quarter and our downwardly revised forecast
for the remainder of our fiscal year, we expect Adjusted EBITDA in
the collection line-of-business to be approximately $3.4 million
lower than that reflected in our December fiscal year
forecast.
- The processing line-of-business underperformed our December
forecast with weaker than expected operating performance and the
delayed ramp-up of a new facility. Given the actual lower results
from our third quarter and our revised forecast for the remainder
of our fiscal year, we expect Adjusted EBITDA in the processing
line-of-business to be approximately $2.6 million lower than that
reflected in our December fiscal year forecast.
*Non-GAAP Financial Measures In addition
to disclosing financial results prepared in accordance with
Generally Accepted Accounting Principles in the United States
(GAAP), the company also discloses earnings before interest, taxes,
depreciation and amortization, adjusted for accretion, depletion of
landfill operating lease obligations, gain on sale of assets,
development project charge write-offs, legal settlement charges,
bargain purchase gains, asset impairment charges, environmental
remediation charges, severance and reorganization charges, expenses
from divestiture, acquisition and financing costs, as well as
losses on divestiture (Adjusted EBITDA) which is a non-GAAP
measure. The company also discloses earnings before interest,
taxes, adjusted for gain on sale of assets, development project
charge write-offs, legal settlement charges, bargain purchase
gains, asset impairment charges, environmental remediation charges,
severance and reorganization charges, expenses from divestiture,
acquisition and financing costs, as well as losses on divestiture
(Adjusted Operating Income) which is a non-GAAP measure. The
company also discloses Free Cash Flow, which is defined as net cash
provided by operating activities, less capital expenditures
attributable to growth and maintenance (excluding acquisition
related capital), less payments on landfill operating leases, less
assets acquired through financing leases, plus proceeds from the
sale of property and equipment, plus contributions from
non-controlling interest holder, which is a non-GAAP measure.
Adjusted EBITDA and Adjusted Operating Income are reconciled to net
income (loss), while Free Cash Flow is reconciled to net cash
provided by operating activities.
The company presents Adjusted EBITDA, Adjusted Operating Income,
and Free Cash Flow because it considers them important supplemental
measures of its performance and believes they are frequently used
by securities analysts, investors and other interested parties in
the evaluation of the company's results. Management uses these
non-GAAP measures to further understand the company's "core
operating performance." The company believes its "core operating
performance" represents its on-going performance in the ordinary
course of operations. The company believes that providing Adjusted
EBITDA, Adjusted Operating Income, and Free Cash Flow to investors,
in addition to corresponding income statement and cash flow
statement measures, affords investors the benefit of viewing its
performance using the same financial metrics that the management
team uses in making many key decisions and understanding how the
core business and its results of operations may look in the future.
The company further believes that providing this information allows
its investors greater transparency and a better understanding of
its core financial performance. In addition, the instruments
governing the company's indebtedness use EBITDA (with additional
adjustments) to measure its compliance with covenants such as
interest coverage, leverage and debt incurrence.
Non-GAAP financial measures are not in accordance with or an
alternative for GAAP. Adjusted EBITDA, Adjusted Operating Income,
and Free Cash Flow should not be considered in isolation from or as
a substitute for financial information presented in accordance with
GAAP, and may be different from Adjusted EBITDA, Adjusted Operating
Income, or Free Cash Flow presented by other companies.
About Casella Waste Systems, Inc. Casella
Waste Systems, Inc., headquartered in Rutland, Vermont, provides
solid waste management services consisting of collection, transfer,
disposal, and recycling services in the northeastern United States.
For further information, investors contact Ned Coletta, Chief
Financial Officer at (802) 772-2239; media contact Joseph Fusco,
Vice President at (802) 772-2247, or visit the company's website at
http://www.casella.com.
Conference call to discuss quarter The
Company will host a conference call to discuss these results on
Tuesday, March 5, 2013 at 10:00 a.m. ET. Individuals interested in
participating in the call should dial (877) 548-9590 (or, for
international participants (720) 545-0037) at least 10 minutes
before start time. The call will also be webcast; to listen,
participants should visit Casella Waste Systems' website at
http://ir.casella.com and follow the appropriate link to the
webcast. A replay of the call will be available on the company's
website, or by calling (855) 859-2056 or (404) 537-3406 (Conference
ID 12271071) until 11:59 p.m. ET on Tuesday, March 12, 2013.
Safe Harbor Statement Certain matters
discussed in this press release are "forward-looking statements"
intended to qualify for the safe harbors from liability established
by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements can generally be identified as such by
the context of the statements, including words such as "believe,"
"expect," "anticipate," "plan," "may," "will," "would," "intend,"
"estimate," "guidance" and other similar expressions, whether in
the negative or affirmative. These forward-looking statements are
based on current expectations, estimates, forecasts and projections
about the industry and markets in which we operate and management's
beliefs and assumptions. We cannot guarantee that we actually will
achieve the plans, intentions, expectations or guidance disclosed
in the forward-looking statements made. Such forward-looking
statements, and all phases of our operations, involve a number of
risks and uncertainties, any one or more of which could cause
actual results to differ materially from those described in our
forward-looking statements. Such risks and uncertainties include or
relate to, among other things: current economic conditions that
have adversely affected and may continue to adversely affect our
revenues and our operating margin; we may be unable to reduce costs
or increase pricing or volumes sufficiently to achieve estimated
Adjusted EBITDA and other targets; landfill operations and permit
status may be affected by factors outside our control; we may be
required to incur capital expenditures in excess of our estimates;
fluctuations in energy pricing or the commodity pricing of our
recyclables may make it more difficult for us to predict our
results of operations or meet our estimates; we may incur
environmental charges or asset impairments in the future; we may be
unable to decommission our waste-to-energy facility on a timely
basis; and we may not fully recognize the expected financial
benefits from the BBI acquisition due to the an inability to
recognize operational cost savings, general and administration cost
savings, or landfill or recycling facility internalization
benefits. There are a number of other important risks and
uncertainties that could cause our actual results to differ
materially from those indicated by such forward-looking statements.
These additional risks and uncertainties include, without
limitation, those detailed in Item 1A, "Risk Factors" in our Form
10-K for the year ended April 30, 2012.
We undertake no obligation to update publicly any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except amounts per share)
Three Months Ended Nine Months Ended
------------------------ ------------------------
January 31, January 31, January 31, January 31,
2013 2012 2013 2012
----------- ----------- ----------- -----------
Revenues $ 115,002 $ 114,578 $ 356,531 $ 371,637
Operating expenses:
Cost of operations 84,168 81,398 254,417 253,248
General and
administration 14,480 13,933 43,788 46,202
Depreciation and
amortization 14,045 14,827 43,433 44,394
Severance and
reorganization costs 1,636 - 3,463 -
Expense from
divestiture,
acquisition and
financing costs 372 - 1,003 -
Loss on divestiture
(1) 353 - 353 -
Legal settlement - - - 1,359
Development project
charge - - - 131
----------- ----------- ----------- -----------
115,054 110,158 346,457 345,334
----------- ----------- ----------- -----------
Operating (loss) income (52) 4,420 10,074 26,303
Other expense/(income),
net:
Interest expense, net 9,357 11,508 32,890 33,865
Loss from equity
method investments 1,436 6,383 3,311 10,163
Impairment of equity
method investment - 10,680 - 10,680
(Gain) loss on
derivative
instruments (24) - 3,871 -
Loss on debt
extinguishment 5,914 - 15,584 -
Other income (298) (117) (737) (549)
----------- ----------- ----------- -----------
16,385 28,454 54,919 54,159
----------- ----------- ----------- -----------
Loss from continuing
operations before
income taxes and
discontinued operations (16,437) (24,034) (44,845) (27,856)
(Benefit) provision for
income taxes (4,963) 601 (3,899) 1,330
----------- ----------- ----------- -----------
Loss from continuing
operations before
discontinued operations (11,474) (24,635) (40,946) (29,186)
Discontinued operations:
Gain on disposal of
discontinued
operations, net of
income taxes (1) - - - 725
----------- ----------- ----------- -----------
Net loss (11,474) (24,635) (40,946) (28,461)
----------- ----------- ----------- -----------
Less: Net loss
attributable to
noncontrolling
interest (67) - (199) -
----------- ----------- ----------- -----------
Net loss attributable to
common stockholders $ (11,407) $ (24,635) $ (40,747) $ (28,461)
=========== =========== =========== ===========
Weighted average common
shares outstanding 39,230 26,822 32,365 26,715
=========== =========== =========== ===========
Net loss per common
share $ (0.29) $ (0.92) $ (1.26) $ (1.07)
=========== =========== =========== ===========
Adjusted EBITDA (2) $ 19,733 $ 22,175 $ 68,440 $ 81,369
=========== =========== =========== ===========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
January 31, April 30,
ASSETS 2013 2012
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 1,112 $ 4,534
Restricted cash 76 76
Accounts receivable - trade, net of allowance
for doubtful accounts 50,425 47,472
Other current assets 18,200 15,274
----------- -----------
Total current assets 69,813 67,356
Property, plant and equipment, net of accumulated
depreciation and amortization 428,452 416,717
Goodwill 116,281 101,706
Intangible assets, net 11,979 2,970
Restricted assets 523 424
Notes receivable - related party/employee 516 722
Investments in unconsolidated entities 19,431 22,781
Other non-current assets 26,158 21,067
----------- -----------
Total assets $ 673,153 $ 633,743
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and capital
leases $ 992 $ 1,228
Current maturities of financing lease
obligations 355 338
Accounts payable 47,695 46,709
Other accrued liabilities 49,549 40,060
----------- -----------
Total current liabilities 98,591 88,335
Long-term debt and capital leases, less current
maturities 490,686 473,381
Financing lease obligations, less current
maturities 1,549 1,818
Other long-term liabilities 55,392 51,978
Total stockholders' equity 26,935 18,231
----------- -----------
Total liabilities and stockholders' equity $ 673,153 $ 633,743
=========== ===========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended
------------------------
January 31, January 31,
2013 2012
----------- -----------
Cash Flows from Operating Activities:
Net loss $ (40,946) $ (28,461)
Gain on disposal of discontinued operations, net - (725)
Adjustments to reconcile net loss to net cash
provided by operating activities -
Gain on sale of property and equipment (422) (902)
Depreciation and amortization 43,433 44,394
Depletion of landfill operating lease
obligations 7,358 6,570
Interest accretion on landfill and environmental
remediation liabilities 2,756 2,613
Loss on divestiture 353 -
Development project charge - 131
Amortization of discount on second lien notes
and senior subordinated notes 568 712
Loss from equity method investments 3,311 10,163
Impairment of equity method investment - 10,680
Loss on derivative instruments, net 3,871 -
Loss on debt extinguishment 15,584 -
Stock-based compensation expense and related
severance expense 1,840 1,307
Excess tax benefit on the vesting of share based
awards (98) (254)
Deferred income taxes (4,057) 1,548
Changes in assets and liabilities, net of
effects of acquisitions and divestitures (3,025) 1,966
----------- -----------
Net Cash Provided by Operating Activities 30,526 49,742
----------- -----------
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired (25,106) (2,102)
Additions to property, plant and equipment -
acquisitions (528) (168)
- growth (10,415) (9,833)
- maintenance (33,526) (39,279)
Payment for capital related to divestiture (618) -
Payments on landfill operating lease contracts (5,726) (6,052)
Proceeds from sale of property and equipment 795 1,337
Investments in unconsolidated entities (1,000) (4,146)
----------- -----------
Net Cash Used In Investing Activities (76,124) (60,243)
----------- -----------
Cash Flows from Financing Activities:
Proceeds from long-term borrowings 334,497 127,900
Principal payments on long-term debt (320,483) (119,433)
Payment of tender premium and costs on second
lien notes (10,743) -
Payments of financing costs (4,572) (142)
Net proceeds from the sale of Class A common
stock 42,184 -
Proceeds from the exercise of share based awards - 337
Excess tax benefit on the vesting of share based
awards 98 254
Contributions from noncontrolling interest
holder 1,195 174
----------- -----------
Net Cash Provided By Financing Activities 42,176 9,090
----------- -----------
Net Cash Provided By Discontinued Operations - 725
----------- -----------
Net decrease in cash and cash equivalents (3,422) (686)
Cash and cash equivalents, beginning of period 4,534 1,817
----------- -----------
Cash and cash equivalents, end of period $ 1,112 $ 1,131
=========== ===========
Supplemental Disclosures:
Cash interest $ 26,933 $ 31,952
Cash income taxes, net of refunds $ 97 $ 5,314
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(In thousands)
Note 1: Divestiture and Discontinued Operations
Maine Energy Divestiture
On August 1, 2012, we executed a purchase and sale agreement with the City
of Biddeford, Maine pursuant to which we agreed to sell the real property of
Maine Energy, which resides in our Eastern region, to the City of Biddeford,
subject to satisfaction of conditions precedent and closing. We agreed to
sell Maine Energy for undiscounted purchase consideration of $6,650, which
shall be paid in installments over the next 21 years, subject to the terms
of the purchase and sale agreement. The transaction closed on November 30,
2012 and we waived certain conditions precedent not satisfied at that time.
Effective December 31, 2012, we closed the facility and initiated the
decommissioning process in accordance with the provisions of the agreement.
Following the decommissioning of Maine Energy, it is our responsibility to
demolish the facility, at our cost, within twelve months of the closing date
and in accordance with the terms of the purchase and sale agreement. We
recorded a charge to loss on divestiture of $353 in the three months ended
January 31, 2013 as a result of this transaction.
Discontinued Operations
On January 23, 2011, we entered into a purchase and sale agreement and
related agreements to sell non-integrated recycling assets and select
intellectual property assets to a new company (the "Purchaser") formed by
Pegasus Capital Advisors, L.P. and Intersection LLC. Pursuant to these
agreements, we divested non-integrated recycling assets located outside our
core operating regions of New York, Massachusetts, Vermont, New Hampshire,
Maine and northern Pennsylvania, including 17 material recovery facilities
("MRFs"), one transfer station and certain related intellectual property
assets. Following the transaction, we retained four integrated MRFs located
in our core operating regions. As a part of the disposition, we also entered
into a ten-year commodities marketing agreement with the Purchaser to market
100% of the tonnage from three of our remaining integrated MRFs.
We completed the transaction on March 1, 2011 for $134,195 in gross cash
proceeds. This included an estimated $3,795 working capital and other
purchase price adjustment, which was subject to further adjustment, as
defined in the purchase and sale agreement. The final working capital
adjustment, along with additional legal expenses related to the transaction,
of $646 was recorded to gain on disposal of discontinued operations, net of
income taxes in the first quarter of fiscal year 2012.
In the second quarter of fiscal year 2012, we recorded an additional working
capital adjustment of $79 to gain on disposal of discontinued operations,
net of income taxes, which related to our subsequent collection of
receivable balances that were released to us for collection by the
Purchaser.
Note 2: Non - GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with
Generally Accepted Accounting Principles in the United States (GAAP), we
also disclose earnings before interest, taxes, depreciation and
amortization, adjusted for accretion, depletion of landfill operating lease
obligations, gain on sale of assets, development project charge write-offs,
legal settlement charges, bargain purchase gains, asset impairment charges,
environmental remediation charges, severance and reorganization charges,
expenses from divestiture, acquisition and financing costs, as well as
losses on divestiture (Adjusted EBITDA) which is a non-GAAP measure. We also
disclose earnings before interest, taxes, adjusted for gain on sale of
assets, development project charge write-offs, legal settlement charges,
bargain purchase gains, asset impairment charges, environmental remediation
charges, severance and reorganization charges, expenses from divestiture,
acquisition and financing costs, as well as losses on divestiture (Adjusted
Operating Income) which is a non-GAAP measure. We also disclose Free Cash
Flow, which is defined as net cash provided by operating activities, less
capital expenditures attributable to growth and maintenance (excluding
acquisition related capital), less payments on landfill operating leases,
less assets acquired through financing leases, plus proceeds from the sale
of property and equipment, plus contributions from non-controlling interest
holder, which is a non-GAAP measure. Adjusted EBITDA and Adjusted Operating
Income are reconciled to net income (loss), while Free Cash Flow is
reconciled to net cash provided by operating activities.
We present Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow
because we consider them important supplemental measures of our performance
and believe they are frequently used by securities analysts, investors and
other interested parties in the evaluation of our results. We use these non-
GAAP measures to further understand our "core operating performance." We
believe our "core operating performance" represents our on-going performance
in the ordinary course of operations. We believe that providing Adjusted
EBITDA, Adjusted Operating Income, and Free Cash Flow to investors, in
addition to corresponding income statement and cash flow statement measures,
affords investors the benefit of viewing our performance using the same
financial metrics that our management team uses in making many key decisions
and understanding how the core business and our results of operations may
look in the future. We further believe that providing this information
allows our investors greater transparency and a better understanding of our
core financial performance. In addition, the instruments governing our
indebtedness use EBITDA (with additional adjustments) to measure our
compliance with covenants such as interest coverage, leverage and debt
incurrence.
Non-GAAP financial measures are not in accordance with or an alternative for
GAAP. Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow should
not be considered in isolation from or as a substitute for financial
information presented in accordance with GAAP, and may be different from
Adjusted EBITDA, Adjusted Operating Income, or Free Cash Flow presented by
other companies.
Following is a reconciliation of Adjusted EBITDA and Adjusted Operating
Income to Net Loss:
Three Months Ended Nine Months Ended
------------------------ ------------------------
January 31, January 31, January 31, January 31,
2013 2012 2013 2012
----------- ----------- ----------- -----------
Net Loss $ (11,474) $ (24,635) $ (40,946) $ (28,461)
Gain on disposal of
discontinued
operations, net - - - (725)
(Benefit) provision
for income taxes (4,963) 601 (3,899) 1,330
Other expense, net 7,028 16,946 22,029 20,293
Interest expense, net 9,357 11,508 32,890 33,865
Legal settlement - - - 1,359
Loss on divestiture
(1) 353 - 353 -
Expense from
divestiture,
acquisition and
financing costs 372 - 1,003 -
Depreciation and
amortization 14,045 14,827 43,433 44,394
Development project
charge - - - 131
Severance and
reorganization costs 1,636 - 3,463 -
Depletion of landfill
operating lease
obligations 2,480 2,055 7,358 6,570
Interest accretion on
landfill and
environmental
remediation
liabilities 899 873 2,756 2,613
----------- ----------- ----------- -----------
Adjusted EBITDA (2) $ 19,733 $ 22,175 $ 68,440 $ 81,369
Depreciation and
amortization (14,045) (14,827) (43,433) (44,394)
Depletion of landfill
operating lease
obligations (2,480) (2,055) (7,358) (6,570)
Interest accretion on
landfill and
environmental
remediation
liabilities (899) (873) (2,756) (2,613)
----------- ----------- ----------- -----------
Adjusted Operating
Income (2) $ 2,309 $ 4,420 $ 14,893 $ 27,792
=========== =========== =========== ===========
Following is a reconciliation of Free Cash Flow to Net Cash Provided by
Operating Activities:
Three Months Ended Nine Months Ended
------------------------ ------------------------
January 31, January 31, January 31, January 31,
2013 2012 2013 2012
----------- ----------- ----------- -----------
Net Cash Provided by
Operating Activities $ 8,151 $ 8,264 $ 30,526 $ 49,742
Capital expenditures -
growth and maintenance (10,192) (13,275) (43,941) (49,112)
Payments on landfill
operating lease
contracts (2,428) (2,738) (5,726) (6,052)
Proceeds from sale of
property and equipment 238 167 795 1,337
Contributions from
noncontrolling interest
holder - 174 1,195 174
----------- ----------- ----------- -----------
Free Cash Flow (2) $ (4,231) $ (7,408) $ (17,151) $ (3,911)
=========== =========== =========== ===========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA TABLES
(Unaudited)
(In thousands)
Amounts of our total revenues attributable to services provided for the
three and nine months ended January 31, 2013 and 2012 are as follows:
Three Months Ended January 31,
------------------------------------------
% of Total % of Total
2013 Revenue 2012 Revenue
--------- ---------- --------- ----------
Collection $ 51,459 44.7% $ 48,875 42.7%
Disposal 27,219 23.7% 30,220 26.4%
Power generation 3,400 3.0% 3,182 2.8%
Processing and organics 14,469 12.6% 12,231 10.7%
--------- ---------- --------- ----------
Solid waste operations 96,547 84.0% 94,508 82.6%
Major accounts 8,551 7.4% 9,198 7.9%
Recycling 9,904 8.6% 10,872 9.5%
--------- ---------- --------- ----------
Total revenues $ 115,002 100.0% $ 114,578 100.0%
========= ========== ========= ==========
Nine Months Ended January 31,
------------------------------------------
% of Total % of Total
2013 Revenue 2012 Revenue
--------- ---------- --------- ----------
Collection $ 157,124 44.1% $ 157,265 42.3%
Disposal 90,569 25.4% 96,645 26.0%
Power generation 8,856 2.5% 9,415 2.5%
Processing and organics 43,378 12.1% 40,961 11.1%
--------- ---------- --------- ----------
Solid waste operations 299,927 84.1% 304,286 81.9%
Major accounts 27,296 7.7% 29,756 8.0%
Recycling 29,308 8.2% 37,595 10.1%
--------- ---------- --------- ----------
Total revenues $ 356,531 100.0% $ 371,637 100.0%
========= ========== ========= ==========
Components of revenue growth for the three months ended January 31, 2013
compared to the three months ended January 31, 2012 are as follows:
% of % of Solid
Related Waste % of Total
Amount Business Operations Company
------------ ----------- ----------- -----------
Solid Waste Operations:
Collection $ 905 1.9% 0.9% 0.8%
Disposal 86 0.3% 0.1% 0.1%
------------ ----------- -----------
Solid Waste Yield 991 1.0% 0.9%
Collection (1,769) -1.8% -1.5%
Disposal (562) -0.6% -0.5%
Organics and processing 1,055 1.1% 0.9%
------------ ----------- -----------
Solid Waste Volume (1,276) -1.3% -1.1%
Fuel surcharge 289 0.3% 0.3%
Commodity price &
volume 1,507 1.6% 1.3%
Acquisitions, net
divestitures 2,460 2.6% 2.1%
Closed landfill (1,931) -2.0% -1.7%
------------ ----------- -----------
Total Solid Waste 2,039 2.2% 1.8%
------------ =========== ===========
Major Accounts (647) -0.6%
------------ ===========
Recycling Operations: % of
Recycling
Operations
-----------
Commodity price (1,187) -10.9% -1.0%
Commodity volume 219 2.0% 0.2%
------------ ----------- -----------
Total Recycling (968) -8.9% -0.8%
------------ =========== ===========
Total Company $ 424 0.4%
============ ===========
Solid Waste Internalization Rates by Region:
Three Months Ended Nine Months Ended
January 31, January 31,
-------------------- --------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Eastern region 54.0% 51.9% 53.8% 55.4%
Western region 74.0% 77.5% 73.6% 76.8%
Solid waste internalization 64.8% 65.3% 64.5% 66.7%
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA TABLES
(Unaudited)
(In thousands)
GreenFiber Financial Statistics (1):
Three Months Ended Nine Months Ended
January 31, January 31,
---------------------- ----------------------
2013 2012 2013 2012
---------- ---------- ---------- ----------
Revenues $ 17,608 $ 23,460 $ 50,203 $ 61,317
Net loss (2,785) (12,818) (6,651) (20,382)
Cash flow used in operations (1,151) (2,971) (120) (5,229)
Net working capital changes (314) (2,602) 960 (1,877)
Adjusted EBITDA $ (837) $ (369) $ (1,080) $ (3,352)
As a percentage of revenues:
Net loss -15.8% -54.6% -13.2% -33.2%
Adjusted EBITDA -4.8% -1.6% -2.2% -5.5%
(1) We hold a 50% interest in US Green Fiber, LLC ("GreenFiber"), a joint
venture that manufactures, markets and sells cellulose insulation made
from recycled fiber.
Components of Growth and Maintenance Capital Expenditures (1):
Three Months Ended Nine Months Ended
January 31, January 31,
---------------------- ----------------------
2013 2012 2013 2012
---------- ---------- ---------- ----------
Growth capital expenditures:
Landfill development $ - $ 414 $ 589 $ 658
Water treatment facility 207 - 4,875 -
Transfer station
construction 1,775 - 3,209 -
Landfill gas-to-energy
project - 208 - 1,367
MRF equipment upgrades - 97 - 3,104
Other 176 2,704 1,742 4,704
---------- ---------- ---------- ----------
Total Growth Capital
Expenditures 2,158 3,423 10,415 9,833
---------- ---------- ---------- ----------
Maintenance capital
expenditures:
Vehicles, machinery /
equipment and containers $ 903 $ 5,166 $ 7,249 $ 15,474
Landfill construction &
equipment 5,561 3,810 23,655 20,614
Facilities 1,466 714 2,245 2,704
Other 104 162 377 487
---------- ---------- ---------- ----------
Total Maintenance Capital
Expenditures 8,034 9,852 33,526 39,279
---------- ---------- ---------- ----------
Total Growth and Maintenance
Capital Expenditures $ 10,192 $ 13,275 $ 43,941 $ 49,112
========== ========== ========== ==========
(1) Our capital expenditures are broadly defined as pertaining to either
growth, maintenance or acquisition activities. Growth capital expenditures
are defined as costs related to development of new airspace, permit
expansions, and new recycling contracts along with incremental costs of
equipment and infrastructure added to further such activities. Growth
capital expenditures include the cost of equipment added directly as a
result of organic business growth as well as expenditures associated with
increasing infrastructure to increase throughput at transfer stations and
recycling facilities. Maintenance capital expenditures are defined as
landfill cell construction costs not related to expansion airspace, costs
for normal permit renewals, and replacement costs for equipment due to age
or obsolescence. Acquisition capital expenditures are defined as costs of
equipment added directly as a result of new business growth related to an
acquisition.
Investors: Ned Coletta Chief Financial Officer (802) 772-2239
Media: Joseph Fusco Vice President (802) 772-2247
http://www.casella.com
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