In a release issued under the same headline earlier
today by Casella Waste Systems, Inc. (NASDAQ: CWST),
please note that the anticipated spend for landfill closure,
site improvement and remediation expenditures for fiscal year
2019 has been updated to $12.5 million, rather than $13.5 million
as originally stated, where appearing in both the seventh bullet of
the "2019 Outlook" section's second list as well as the table
showing the reconciliation of the Company's anticipated Free
Cash Flow and anticipated Normalized Free Cash Flow from
anticipated Net cash provided by operating activities. In that same
table, the Normalized Free Cash Flow has been correspondingly
updated to $51 million - $55 million, from $52 million - $56
million as originally stated. Also, the second column header of the
Consolidated Net Leverage Ratio table has been changed to "Covenant
Requirement at December 31, 2018", rather than "Fiscal Year
Ended December 31, 2018" as originally stated. Complete
corrected text and tables follow.
Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid
waste, recycling and resource management services company, today
reported its financial results for the three and twelve month
periods ended December 31, 2018. The Company also provided
guidance for the fiscal year ending December 31, 2019.
Highlights for the Three and Twelve Months Ended
December 31, 2018:
- Revenues were $174.7 million for the quarter, up $23.5
million, or 15.5%, from the same period in 2017. Revenues were
$660.7 million for the fiscal year, up $61.4 million, or 10.2%,
from fiscal year 2017.
- Overall solid waste pricing for the quarter was up
4.5%, driven by strong collection pricing, up 5.6%, and robust
landfill pricing, up 3.7%, from the same period in
2017.
- Net loss was $(13.7) million for the quarter, as
compared to net income of $20.0 million for the same period in
2017. Net income was $6.4 million for the fiscal year, as compared
to net loss of $(21.8) million in fiscal year 2017.
- Adjusted Net Income Attributable to Common
Stockholders* was $4.1 million for the quarter, as compared to $4.6
million for the same period in 2017. Adjusted Net Income
Attributable to Common Stockholders was $27.2 million for the
fiscal year, as compared to $28.7 million in fiscal year
2017.
- Adjusted EBITDA* was $33.8 million for the quarter, up
$3.6 million, or 12.0%, from the same period in 2017. Adjusted
EBITDA was $138.0 million for the fiscal year, up $9.0 million, or
7.0%, from fiscal year 2017.
- Net cash provided by operating activities was $120.8
million for the fiscal year, up $13.3 million, or 12.4%, from
fiscal year 2017.
- Normalized Free Cash Flow* was $47.1 million for the
fiscal year, up $8.3 million, or 21.3%, from fiscal year
2017.
“We had a strong operational quarter and a great year, as we
continued to execute well against our key strategies as part of our
2021 plan,” said John W. Casella, Chairman and CEO of Casella Waste
Systems, Inc. “We remain focused on driving cash flow growth by
increasing landfill returns, improving collection profitability,
creating incremental value through resource solutions, using
technology to drive profitable growth and efficiencies, and
efficiently allocating capital for strategic growth.”
“We continued to make substantial progress ramping up our
strategic growth initiative in 2018, with the acquisition of 10
businesses with roughly $77 million of annualized revenues,"
Casella said. "We have built strong process and discipline in our
acquisition approach, and we plan to remain focused on acquiring
well run businesses in strategic markets that will drive additional
internalization to our landfills and leverage operating
synergies. We expect revenue growth of approximately 5.5% in
2019 from the roll-over impact of acquisitions completed in
2018. Further, our acquisition pipeline remains robust
entering 2019, and we believe that we are well positioned to again
surpass our target to acquire or develop $20 million to $40 million
of annualized revenues in 2019.”
“Given the strength of our cash flow growth and our robust
acquisition activity to date, we are on track to outpace our
Normalized Free Cash Flow growth targets set as part of our 2021
plan,” Casella said. “We are increasing our Normalized Free
Cash Flow target range for fiscal year 2021 to between $65 million
and $70 million, or roughly 10% to 15% per year of growth.”
“During 2018, strong operating performance in our integrated
solid waste, customer solutions and organics operations more than
offset the significant commodity pricing headwinds in our recycling
business,” Casella said. “Our disciplined solid waste pricing
programs continue to drive significant value, with collection
pricing up 5.6% and landfill pricing up 3.7% year-over-year in the
fourth quarter. Solid waste volumes were flat year-over-year in the
fourth quarter, or up 0.5% excluding the negative volume headwind
resulting from a fire related business interruption at a transfer
station.”
“Our team has done a great job over the last several years
working to off-take risk across our business, including recycling
commodity pricing risk,” Casella said. “As recycled paper and
cardboard commodity prices stabilized over the last six months, our
trailing SRA fee and revenue share contracts, where applied, are
now fully recovering lower commodity prices. Despite our
average commodity revenue per ton being down roughly 18%
year-over-year in the fourth quarter, our efforts to improve our
recycling business model, reset pricing on legacy contracts, and
reduce contamination all contributed to increasing operating income
$0.7 million in the recycling business year-over-year in the fourth
quarter. Looking forward to 2019, we expect recycling results
to improve further as several third-party recycling processing
contracts will reset over the next six months.”
For the fourth quarter, revenues were $174.7 million, up $23.5
million, or 15.5%, from the same period in 2017, with revenue
growth mainly driven by robust collection, higher cost recovery
fees, acquisition activity, and higher volumes in the organics and
customer solutions lines-of-business, partially offset by lower
recycling commodity pricing and volumes.
Net loss was $(13.7) million, or $(0.32) per diluted common
share, as compared to net income of $20.0 million, or $0.46 per
diluted common share for the same period in 2017. Adjusted Net
income Attributable to Common Stockholders was $4.1 million, or
$0.09 of Adjusted Diluted Earnings Per Common Share*, for the
fourth quarter, compared to Adjusted Net Income Attributable to
Common Stockholders of $4.6 million, or $0.11 of Adjusted Diluted
Earnings Per Common Share, for the same period in 2017.
The fourth quarter included: a $15.8 million Southbridge
Landfill closure charge, $0.9 million of expense from acquisition
activities and other items, and a $1.1 million impairment charge
for the Company’s investment in RecycleRewards, Inc. The same
period in 2017 included a $(16.1) million benefit from U.S tax
reform; partially offset by $0.3 million Southbridge Landfill
closure charge, $0.2 million of expense from acquisition activities
and other items, and $0.2 million of tax effect.
Operating loss was $(5.1) million for the fourth quarter, as
compared to operating income of $9.9 million for the same period in
2017. Adjusted Operating Income* was $11.6 million for the fourth
quarter, up $1.3 million from the same period in 2017.
For the fiscal year, revenues were $660.7 million, up $61.4
million, or 10.2%, from fiscal year 2017, with revenue growth
mainly driven by robust collection and disposal pricing, higher
solid waste volumes, higher cost recovery fees, acquisition
activity, and higher volumes in the organics and customer solutions
lines-of-business, partially offset by lower recycling commodity
pricing and volumes.
Net income was $6.4 million, or $0.15 per diluted common share,
as compared to net loss of $(21.8) million, or $(0.52) per diluted
common share, for fiscal year 2017. Adjusted Net Income
Attributable to Common Stockholders was $27.2 million, or $0.61 of
Adjusted Diluted Earnings Per Common Share, for the fiscal year,
compared to Adjusted Net Income Attributable to Common Stockholders
of $28.7 million, or $0.67 of Adjusted Diluted Earnings Per Common
Share, for fiscal year 2017.
Operating income was $39.7 million for the fiscal year, as
compared to operating loss of $(12.6) million in fiscal year 2017.
Adjusted Operating Income was $52.1 million for the fiscal year,
down $(0.7) million from fiscal year 2017.
2019 Outlook
“Our fiscal year 2019 budget is on track with the fiscal year
2021 strategic plan that we first introduced in August 2017, and
reflects continued execution of our key strategies with the goal of
driving additional shareholder value," Casella said. “We expect
strong growth again in 2019 despite the closure of the Southbridge
Landfill in November 2018, driven by continued pricing execution,
ramping up of tons at our landfills in New York, the roll-over
impacts of acquisitions completed in 2018, and improvements in our
recycling business as several legacy recycling contracts reset to
further shift commodity risk to our customers and increase
processing fees.”
The Company provided guidance for the fiscal year ending
December 31, 2019 by estimating results in the following
ranges:
- Revenues between $710 million and $725 million (as compared to
$660.7 million in fiscal year 2018);
- Net income between $34 million and $38 million (as compared to
$6.4 million in fiscal year 2018);
- Adjusted EBITDA between $152 million and $156 million (as
compared to $138.0 million in fiscal year 2018);
- Net cash provided by operating activities between $119 million
and $123 million (as compared to $120.8 million in fiscal year
2018); and
- Normalized Free Cash Flow between $51 million and $55 million
(as compared to $47.1 million in fiscal year 2018).
Adjusted EBITDA and Normalized Free Cash Flow related to the
fiscal year ending December 31, 2019 are described in the
Reconciliation of 2019 Outlook Non-GAAP Measures section of this
press release. Net income and Net cash provided by operating
activities are provided as the comparable GAAP measures to Adjusted
EBITDA and Normalized Free Cash Flow, respectively, however these
forward looking estimates for fiscal year 2019 do not contemplate
any unanticipated or non-recurring impacts.
The Company provided the following assumptions that are built
into its outlook:
- Overall the Company expects revenue growth of between 7.5% and
9.7% in fiscal year 2019.
- In the solid waste business, revenue growth of between 10.0%
and 12%, with price growth from 3.5% to 4.5%, volume growth from
0.0% to 1.0%, 7.5% growth from acquisitions already completed, and
roughly a 2.0% headwind from the Southbridge Landfill closure.
- In the recycling business, overall revenue growth of between
2.0% and 5.0%, mainly driven by slightly higher recycling commodity
prices, higher processing fees, and neutral to slightly higher
volumes.
- In the Other segment, overall revenue growth of between 1.0%
and 2.0%, with growth in the industrial segment for the Customer
Solutions group and higher volumes in the Organics group.
- The budget includes approximately 5.5% revenue growth from the
roll-over impact of acquisitions completed during fiscal year 2018,
but does not include any acquisitions that have not yet been
completed.
- Capital expenditures of approximately $83 million, with roughly
$8.5 million of non-recurring capital associated with acquisition
integration and recycling facility upgrades. Payments on operating
lease contracts of approximately $6.0 million.
- Net cash provided by operating activities will be negatively
impacted in 2019 as we plan to spend $12.5 million on landfill
closure, site improvement and remediation expenditures associated
with the Southbridge landfill closure and Potsdam remediation
project.
- No material changes in the regional economy from the last 12
months.
Conference call to discuss quarter and fiscal year
results
The Company will host a conference call to discuss these results
on Friday, February 22, 2019 at 9:00 a.m. Eastern Time.
Individuals interested in participating in the call should dial
(877) 838-4153 or for international participants
(720) 545-0037 at least 10 minutes before start time
(Conference ID 7499363). 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 7499363).
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.
*Non-GAAP Financial Measures
In addition to disclosing financial results prepared in
accordance with GAAP, the Company also discloses earnings before
interest, taxes, and depreciation and amortization, adjusted for
accretion, depletion of landfill operating lease obligations, the
Southbridge Landfill closure charge, net, gains on asset sales,
development project charge write-offs, contract settlement charges,
legal settlement costs, tax settlement costs, bargain purchase
gains, asset impairment charges, environmental remediation charges,
severance and reorganization costs, expenses from acquisition
activities and other items, gains on the settlement of acquisition
related contingent consideration, fiscal year-end transition costs,
proxy contest costs, as well as impacts from divestiture
transactions (“Adjusted EBITDA”), which is a non-GAAP financial
measure.
The Company also discloses earnings before interest and taxes,
adjusted for the Southbridge Landfill closure charge, net, gains on
asset sales, development project charge write-offs, contract
settlement charges, legal settlement costs, tax settlement costs,
bargain purchase gains, asset impairment charges, environmental
remediation charges, severance and reorganization costs, expenses
from acquisition activities and other items, gains on the
settlement of acquisition related contingent consideration, fiscal
year-end transition costs, proxy contest costs, as well as impacts
from divestiture transactions (“Adjusted Operating Income”), which
is a non-GAAP financial measure.
The Company also discloses net (loss) income attributable to
common stockholders, adjusted for the U.S. tax reform impact, the
Southbridge Landfill closure charge, net, gains on asset sales,
development project charge write-offs, contract settlement charges,
legal settlement costs, tax settlement costs, bargain purchase
gains, asset impairment charges, environmental remediation charges,
severance and reorganization costs, expenses from acquisition
activities and other items, gains on the settlement of acquisition
related contingent consideration, fiscal year-end transition costs,
proxy contest costs, impacts from divestiture transactions, losses
on debt modifications, as well as impairment of investments
("Adjusted Net Income Attributable to Common Stockholders"), which
is a non-GAAP financial measure.
The Company also discloses Adjusted Diluted Earnings Per Common
Share, which is Adjusted Net Income Attributable to Common
Stockholders divided by Adjusted Diluted Weighted Average Shares
Outstanding, which includes the dilutive effect of options and
restricted / performance stock units.
The Company also discloses net cash provided by operating
activities, less capital expenditures, less payments on landfill
operating lease contracts, plus proceeds from divestiture
transactions, plus proceeds from the sale of property and
equipment, plus proceeds from property insurance settlement, plus
(less) contributions from (distributions to) noncontrolling
interest holders (“Free Cash Flow”), which is a non-GAAP financial
measure.
The Company also discloses Free Cash Flow plus certain cash
outflows associated with landfill closure, site improvement and
remediation expenditures, plus certain cash outflows associated
with new contract and project capital expenditures, (less) plus
cash (inflows) outflows associated with certain business
dissolutions, plus cash interest outflows associated with the
timing of refinancing transactions (“Normalized Free Cash Flow”),
which is a non-GAAP financial measure.
The Company also discloses net cash provided by operating
activities, plus changes in assets and liabilities, net of effects
of acquisitions and divestitures, gains on sale of property and
equipment, environmental remediation charges, losses on debt
extinguishment, stock based compensation expense, the Southbridge
Landfill closure charge, net, interest expense, cash interest
expense, provisions for income taxes, net of deferred taxes and
adjustments as allowed by the Company's credit facility agreement
("Consolidated EBITDA") and total long-term debt and capital
leases, less unencumbered cash and cash equivalents in excess of
$2.0 million ("Consolidated Funded Debt, Net" and, divided by
Consolidated EBITDA, the "Consolidated Net Leverage Ratio"), which
are non-GAAP measures.
Adjusted EBITDA and Adjusted Operating Income are reconciled to
net (loss) income; Adjusted Net Income Attributable to Common
Stockholders is reconciled to net (loss) income; Adjusted Diluted
Earnings Per Common Share is reconciled to diluted earnings per
common share; Free Cash Flow, Normalized Free Cash Flow and
Consolidated EBITDA are reconciled to net cash provided by
operating activities; and Consolidated Funded Debt, Net is
reconciled to total long-term debt and capital leases.
The Company presents Adjusted EBITDA, Adjusted Operating Income,
Adjusted Net Income Attributable to Common Stockholders, Adjusted
Diluted Earnings Per Common Share, Free Cash Flow, Normalized Free
Cash Flow Consolidated EBITDA, Consolidated Funded Debt, Net and
the Consolidated Net Leverage Ratio 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 financial measures to
further understand its “core operating performance.” The Company
believes its “core operating performance” is helpful in
understanding its ongoing performance in the ordinary course of
operations. The Company believes that providing Adjusted EBITDA,
Adjusted Operating Income, Adjusted Net Income Attributable to
Common Stockholders, Adjusted Diluted Earnings Per Common Share,
Free Cash Flow, Normalized Free Cash Flow, Consolidated EBITDA,
Consolidated Funded Debt, Net and the Consolidated Net Leverage
Ratio 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 has performed.
The Company further believes that providing this information allows
its investors greater transparency and a better understanding of
its core financial performance.
Non-GAAP financial measures are not in accordance with or an
alternative for GAAP. Adjusted EBITDA, Adjusted Operating Income,
Adjusted Net Income Attributable to Common Stockholders, Adjusted
Diluted Earnings Per Common Share, Free Cash Flow, Normalized Free
Cash Flow, Consolidated EBITDA, Consolidated Funded Debt, Net and
the Consolidated Net Leverage Ratio 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, Adjusted Net Income
Attributable to Common Stockholders, Adjusted Diluted Earnings Per
Common Share, Free Cash Flow, Normalized Free Cash Flow,
Consolidated EBITDA, Consolidated Funded Debt, Net and the
Consolidated Net Leverage Ratio presented by other companies.
Safe Harbor Statement
Certain matters discussed in this press release, including, but
not limited to, the statements regarding our intentions, beliefs or
current expectations concerning, among other things, our financial
performance; financial condition; operations and services;
prospects; growth; strategies; and guidance for fiscal year 2019,
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 are
based on current expectations, estimates, forecasts and projections
about the industry and markets in which the Company operates and
management’s beliefs and assumptions. The Company cannot guarantee
that it actually will achieve the financial results, plans,
intentions, expectations or guidance disclosed in the
forward-looking statements made. Such forward-looking statements,
and all phases of the Company's 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 its
forward-looking statements. Such risks and uncertainties include or
relate to, among other things: new policies adopted by China as
part of its “National Sword” program that will restrict imports of
recyclable materials into China and have had a material impact on
the Company’s financial results; the planned capping and closure of
the Southbridge Landfill and the pending litigation relating to the
Southbridge Landfill, and the lawsuit relating to the North Country
Landfill could result in material unexpected costs; adverse weather
conditions may negatively impact the Company's revenues and its
operating margin; the Company may be unable to increase volumes at
its landfills or improve its route profitability; the Company's
need to service its indebtedness may limit its ability to invest in
its business; the Company 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 the Company's control; the Company
may be required to incur capital expenditures in excess of its
estimates; fluctuations in energy pricing or the commodity pricing
of its recyclables may make it more difficult for the Company to
predict its results of operations or meet its estimates; the
Company may be unable to achieve its acquisition or development
targets on favorable pricing or at all; and the Company may incur
environmental charges or asset impairments in the future. There are
a number of other important risks and uncertainties that could
cause the Company's 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 the Company's Form 10-K for the
fiscal year ended December 31, 2017, and in other filings that
the Company may make with the Securities and Exchange Commission in
the future.
The Company undertakes 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.
Investors:
Ned ColettaChief Financial Officer(802) 772-2239
Media:
Joseph FuscoVice President(802)
772-2247http://www.casella.com
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except for per share
data)
|
Three Months Ended December
31, |
|
Fiscal Year Ended December
31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
Revenues |
$ |
174,724 |
|
|
$ |
151,223 |
|
|
$ |
660,660 |
|
|
$ |
599,309 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Cost of
operations |
121,760 |
|
|
104,227 |
|
|
453,291 |
|
|
405,188 |
|
General
and administration |
22,431 |
|
|
20,855 |
|
|
84,791 |
|
|
79,243 |
|
Depreciation and amortization |
18,936 |
|
|
15,795 |
|
|
70,508 |
|
|
62,102 |
|
Southbridge Landfill closure charge, net |
15,793 |
|
|
316 |
|
|
8,054 |
|
|
65,183 |
|
Expense
from acquisition activities and other items |
942 |
|
|
176 |
|
|
1,872 |
|
|
176 |
|
Contract
settlement charge |
— |
|
|
— |
|
|
2,100 |
|
|
— |
|
Development project charge |
— |
|
|
— |
|
|
311 |
|
|
— |
|
|
179,862 |
|
|
141,369 |
|
|
620,927 |
|
|
611,892 |
|
Operating (loss)
income |
(5,138 |
) |
|
9,854 |
|
|
39,733 |
|
|
(12,583 |
) |
Other expense
(income): |
|
|
|
|
|
|
|
Interest
expense, net |
6,835 |
|
|
6,015 |
|
|
26,021 |
|
|
24,887 |
|
Loss on
debt extinguishment |
— |
|
|
— |
|
|
7,352 |
|
|
517 |
|
Impairment of investments |
1,069 |
|
|
— |
|
|
1,069 |
|
|
— |
|
Other
income |
(149 |
) |
|
(368 |
) |
|
(745 |
) |
|
(935 |
) |
Other expense, net |
7,755 |
|
|
5,647 |
|
|
33,697 |
|
|
24,469 |
|
(Loss) income before
income taxes |
(12,893 |
) |
|
4,207 |
|
|
6,036 |
|
|
(37,052 |
) |
Provision (benefit) for
income taxes |
783 |
|
|
(15,814 |
) |
|
(384 |
) |
|
(15,253 |
) |
Net (loss) income |
$ |
(13,676 |
) |
|
$ |
20,021 |
|
|
$ |
6,420 |
|
|
$ |
(21,799 |
) |
Basic weighted average
common shares outstanding |
42,936 |
|
|
42,033 |
|
|
42,688 |
|
|
41,846 |
|
Basic earnings per
common share |
$ |
(0.32 |
) |
|
$ |
0.48 |
|
|
$ |
0.15 |
|
|
$ |
(0.52 |
) |
Diluted weighted
average common shares outstanding |
42,936 |
|
|
43,394 |
|
|
44,168 |
|
|
41,846 |
|
Diluted earnings per
common share |
$ |
(0.32 |
) |
|
$ |
0.46 |
|
|
$ |
0.15 |
|
|
$ |
(0.52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands)
ASSETS |
|
December 31, 2018 |
|
December 31, 2017 |
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
4,007 |
|
|
$ |
1,995 |
|
Accounts
receivable - trade, net |
|
74,937 |
|
|
65,953 |
|
Other
current assets |
|
18,149 |
|
|
16,432 |
|
Total current
assets |
|
97,093 |
|
|
84,380 |
|
Property, plant and
equipment, net |
|
404,577 |
|
|
361,547 |
|
Goodwill |
|
162,734 |
|
|
122,605 |
|
Intangible assets,
net |
|
34,767 |
|
|
8,149 |
|
Restricted assets |
|
1,248 |
|
|
1,220 |
|
Cost method
investments |
|
11,264 |
|
|
12,333 |
|
Deferred income
taxes |
|
9,594 |
|
|
11,567 |
|
Other non-current
assets |
|
11,133 |
|
|
13,148 |
|
Total
assets |
|
$ |
732,410 |
|
|
$ |
614,949 |
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current
maturities of long-term debt and capital leases |
|
$ |
2,298 |
|
|
$ |
4,926 |
|
Accounts
payable |
|
57,289 |
|
|
47,081 |
|
Other
accrued liabilities |
|
51,910 |
|
|
36,562 |
|
Total current
liabilities |
|
111,497 |
|
|
88,569 |
|
Long-term debt and
capital leases, less current maturities |
|
542,001 |
|
|
477,576 |
|
Other long-term
liabilities |
|
94,744 |
|
|
86,666 |
|
Total stockholders'
deficit |
|
(15,832 |
) |
|
(37,862 |
) |
Total
liabilities and stockholders' deficit |
|
$ |
732,410 |
|
|
$ |
614,949 |
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(In thousands)
|
Fiscal Year Ended December
31, |
|
2018 |
|
2017 |
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
6,420 |
|
|
$ |
(21,799 |
) |
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
70,508 |
|
|
62,102 |
|
Depletion
of landfill operating lease obligations |
9,724 |
|
|
9,646 |
|
Interest
accretion on landfill and environmental remediation
liabilities |
5,708 |
|
|
4,482 |
|
Amortization of debt issuance costs and discount on long-term
debt |
2,449 |
|
|
2,692 |
|
Stock-based compensation |
8,445 |
|
|
6,432 |
|
(Gain)
loss on sale of property and equipment |
(492 |
) |
|
49 |
|
Southbridge Landfill non-cash closure charge (1) |
16,179 |
|
|
63,526 |
|
Southbridge Landfill insurance recovery for investing
activities |
(3,506 |
) |
|
— |
|
Non-cash
expense from acquisition activities and other items |
757 |
|
|
— |
|
Developmental project charge |
311 |
|
|
— |
|
Loss on
debt extinguishment |
7,352 |
|
|
517 |
|
Impairment of investments |
1,069 |
|
|
— |
|
Deferred
income taxes |
1,250 |
|
|
(15,525 |
) |
Changes
in assets and liabilities, net of effects of acquisitions and
divestitures |
(5,340 |
) |
|
(4,584 |
) |
Net cash
provided by operating activities |
120,834 |
|
|
107,538 |
|
Cash Flows from
Investing Activities: |
|
|
|
Acquisitions, net of cash acquired |
(88,918 |
) |
|
(5,056 |
) |
Additions
to property, plant and equipment |
(73,232 |
) |
|
(64,862 |
) |
Payments
on landfill operating lease contracts |
(7,415 |
) |
|
(7,240 |
) |
Proceeds
from Southbridge Landfill insurance recovery for investing
activities |
3,506 |
|
|
— |
|
Proceeds
from sale of property and equipment |
870 |
|
|
711 |
|
Proceeds
from property insurance settlement |
992 |
|
|
— |
|
Net cash
used in investing activities |
(164,197 |
) |
|
(76,447 |
) |
Cash Flows from
Financing Activities: |
|
|
|
Proceeds
from long-term borrowings |
634,700 |
|
|
185,500 |
|
Principal
payments on long-term debt |
(584,223 |
) |
|
(216,966 |
) |
Payments
of debt issuance costs |
(5,573 |
) |
|
(1,452 |
) |
Proceeds
from the exercise of share based awards |
471 |
|
|
1,278 |
|
Net cash
provided by (used in) financing activities |
45,375 |
|
|
(31,640 |
) |
Net increase (decrease)
in cash and cash equivalents |
2,012 |
|
|
(549 |
) |
Cash, cash equivalents
and restricted cash, beginning of period |
1,995 |
|
|
2,544 |
|
Cash, cash equivalents
and restricted cash, end of period |
$ |
4,007 |
|
|
$ |
1,995 |
|
Supplemental Disclosure
of Cash Flow Information: |
|
|
|
Cash
interest |
$ |
23,523 |
|
|
$ |
25,029 |
|
Cash
income taxes, net of refunds |
$ |
105 |
|
|
$ |
146 |
|
Supplemental Disclosure
of Non-Cash Investing and Financing Activities: |
|
|
|
Non-current assets acquired through long-term obligations |
$ |
7,092 |
|
|
$ |
3,564 |
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED
FINANCIAL
STATEMENTS(Unaudited)(In
thousands)
Note 1: Southbridge Landfill Closure Charge,
Net
In June 2017, the Company initiated its plan to cease operations
of its Subtitle D landfill in Southbridge, Massachusetts
("Southbridge Landfill"). Accordingly, in fiscal years 2018 and
2017, we recorded charges associated with the closure of our
Southbridge Landfill as follows:
|
Three Months Ended December
31, |
|
Fiscal Year Ended December
31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Asset impairment charge
(1) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
47,999 |
Project development charge
(2) |
— |
|
|
— |
|
|
|
— |
|
|
9,149 |
Environmental remediation
charge (3) |
— |
|
|
— |
|
|
|
— |
|
|
6,379 |
Contract settlement charge
(4) |
8,724 |
|
|
— |
|
|
|
8,724 |
|
|
— |
Landfill closure project
charge (5) |
6,012 |
|
|
— |
|
|
|
6,012 |
|
|
— |
Charlton settlement charge
(6) |
— |
|
|
— |
|
|
|
1,216 |
|
|
— |
Legal and transaction
costs (7) |
1,057 |
|
|
316 |
|
|
|
2,102 |
|
|
1,656 |
Recovery on insurance
settlement (8) |
— |
|
|
— |
|
|
|
(10,000 |
) |
|
— |
Southbridge Landfill
closure charge, net |
$ |
15,793 |
|
|
$ |
316 |
|
|
$ |
8,054 |
|
|
$ |
65,183 |
- The Company performed a test of recoverability under Financial
Accounting Standards Board ("FASB") Accounting Standards
Codification ("ASC") 360, which indicated that the carrying value
of our asset group that includes the Southbridge Landfill was no
longer recoverable and, as a result, the asset group was assessed
for impairment with an impairment charge allocated to the
long-lived assets of the Southbridge Landfill in accordance with
FASB ASC 360.
- The Company wrote-off deferred costs associated with
Southbridge Landfill permitting activities no longer deemed
viable.
- The Company recorded an environmental remediation charge
associated with the installation of a municipal waterline.
- The Company recorded a contract settlement charge associated
with the closure of Southbridge Landfill and the remaining future
obligations due to the Town of Southbridge under the landfill
operating agreement with the Town of Southbridge.
- The Company recorded a landfill closure project charge
associated with increased costs under the revised closure plan at
our Southbridge Landfill.
- The Company established a reserve associated with settlement of
the Town of Charlton's claim against us.
- The Company incurred legal and other transaction costs
associated with various matters as part of the Southbridge Landfill
closure.
- The Company recorded a recovery on an environmental insurance
settlement associated with the Southbridge Landfill closure.
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESRECONCILIATION OF CERTAIN NON-GAAP
MEASURES(Unaudited)(In thousands,
except for per share data)
Following is a reconciliation of Adjusted EBITDA and
Adjusted Operating Income from Net (loss) income:
|
Three Months Ended December 31, |
|
Fiscal Year Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net (loss)
income |
$ |
(13,676 |
) |
|
$ |
20,021 |
|
|
$ |
6,420 |
|
|
$ |
(21,799 |
) |
Net (loss)
income margin |
(7.8 |
)% |
|
13.2 |
% |
|
1.0 |
% |
|
(3.6 |
)% |
Provision
(benefit) for income taxes |
783 |
|
|
(15,814 |
) |
|
(384 |
) |
|
(15,253 |
) |
Other
income |
(149 |
) |
|
(368 |
) |
|
(745 |
) |
|
(935 |
) |
Impairment of investments |
1,069 |
|
|
— |
|
|
1,069 |
|
|
— |
|
Loss on
debt extinguishment |
— |
|
|
— |
|
|
7,352 |
|
|
517 |
|
Interest
expense, net |
6,835 |
|
|
6,015 |
|
|
26,021 |
|
|
24,887 |
|
Expense
from acquisition activities and other items |
942 |
|
|
176 |
|
|
1,872 |
|
|
176 |
|
Southbridge Landfill closure charge, net |
15,793 |
|
|
316 |
|
|
8,054 |
|
|
65,183 |
|
Contract
settlement charge |
— |
|
|
— |
|
|
2,100 |
|
|
— |
|
Development project charge |
— |
|
|
— |
|
|
311 |
|
|
— |
|
Depreciation and amortization |
18,936 |
|
|
15,795 |
|
|
70,508 |
|
|
62,102 |
|
Depletion
of landfill operating lease obligations |
1,897 |
|
|
2,812 |
|
|
9,724 |
|
|
9,646 |
|
Interest
accretion on landfill and environmental remediation
liabilities |
1,417 |
|
|
1,277 |
|
|
5,708 |
|
|
4,482 |
|
Adjusted
EBITDA |
$ |
33,847 |
|
|
$ |
30,230 |
|
|
$ |
138,010 |
|
|
$ |
129,006 |
|
Adjusted EBITDA
margin |
19.4 |
% |
|
20.0 |
% |
|
20.9 |
% |
|
21.5 |
% |
Depreciation and amortization |
(18,936 |
) |
|
(15,795 |
) |
|
(70,508 |
) |
|
(62,102 |
) |
Depletion
of landfill operating lease obligations |
(1,897 |
) |
|
(2,812 |
) |
|
(9,724 |
) |
|
(9,646 |
) |
Interest
accretion on landfill and environmental remediation
liabilities |
(1,417 |
) |
|
(1,277 |
) |
|
(5,708 |
) |
|
(4,482 |
) |
Adjusted
Operating Income |
$ |
11,597 |
|
|
$ |
10,346 |
|
|
$ |
52,070 |
|
|
$ |
52,776 |
|
Adjusted
Operating Income margin |
6.6 |
% |
|
6.8 |
% |
|
7.9 |
% |
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Following is a reconciliation of Adjusted Net Income
Attributable to Common Stockholders from Net (loss)
income:
|
Three Months Ended December
31, |
|
Fiscal Year Ended December
31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net (loss)
income |
$ |
(13,676 |
) |
|
$ |
20,021 |
) |
|
$ |
6,420 |
|
|
$ |
(21,799 |
) |
U.S. tax
reform impact |
— |
|
|
(16,089 |
) |
|
— |
|
|
(16,089 |
) |
Loss on
debt extinguishment |
— |
|
|
— |
|
|
7,352 |
|
|
517 |
|
Impairment of investments |
1,069 |
|
|
— |
|
|
1,069 |
|
|
— |
|
Developmental project charge |
— |
|
|
— |
|
|
311 |
|
|
— |
|
Expense
from acquisition activities and other items |
942 |
|
|
176 |
|
|
1,872 |
|
|
176 |
|
Contract
settlement charge |
— |
|
|
— |
|
|
2,100 |
|
|
— |
|
Southbridge Landfill closure charge, net |
15,793 |
|
|
316 |
|
|
8,054 |
|
|
65,183 |
|
Tax
effect (i) |
13 |
|
|
206 |
|
|
(16 |
) |
|
752 |
|
Adjusted Net
Income Attributable to Common Stockholders |
$ |
4,141 |
|
|
$ |
4,630 |
|
|
$ |
27,162 |
|
|
$ |
28,740 |
|
Diluted
weighted average common shares outstanding |
42,936 |
|
|
43,394 |
|
|
44,168 |
|
|
41,846 |
|
Dilutive effect
of options and other stock awards |
1,547 |
|
|
— |
|
|
— |
|
|
1,182 |
|
Adjusted
Diluted Weighted Average Common Shares Outstanding* |
44,483 |
|
|
43,394 |
|
|
44,168 |
|
|
43,028 |
|
Adjusted
Diluted Earnings Per Common Share |
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
0.61 |
|
|
$ |
0.67 |
|
- The aggregate tax effect of the adjustments, including the
impact of deferred tax adjustments.
Following is a reconciliation of Adjusted Diluted
Earnings Per Common Share from Diluted earnings per common
share:
|
Three Months Ended December
31, |
|
Fiscal Year Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Diluted earnings
per common share |
$ |
(0.32 |
) |
|
$ |
0.46 |
|
|
$ |
0.15 |
|
|
$ |
(0.52 |
) |
U.S. tax
reform impact |
— |
|
|
(0.36 |
) |
|
— |
|
|
(0.39 |
) |
Loss on
debt extinguishment |
— |
|
|
— |
|
|
0.16 |
|
|
0.01 |
|
Impairment of investments |
0.02 |
|
|
— |
|
|
0.02 |
|
|
— |
|
Development project charge |
— |
|
|
— |
|
|
0.01 |
|
|
— |
|
Southbridge Landfill closure charge, net |
0.37 |
|
|
0.01 |
|
|
0.18 |
|
|
1.55 |
|
Contract
settlement charge |
— |
|
|
— |
|
|
0.05 |
|
|
— |
|
Expense
from acquisitions and other items |
0.02 |
|
|
— |
|
|
0.04 |
|
|
— |
|
Tax
effect |
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
Adjusted
Diluted Earnings Per Common Share |
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
0.61 |
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Following is a reconciliation of Free Cash Flow and
Normalized Free Cash Flow from Net cash provided by operating
activities:
|
Three Months Ended December 31, |
|
Fiscal Year Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net cash
provided by operating activities |
$ |
30,917 |
|
|
$ |
28,438 |
|
|
$ |
120,834 |
|
|
$ |
107,538 |
|
Capital
expenditures |
(21,391 |
) |
|
(21,450 |
) |
|
(73,232 |
) |
|
(64,862 |
) |
Payments
on landfill operating lease contracts |
(2,409 |
) |
|
(3,509 |
) |
|
(7,415 |
) |
|
(7,240 |
) |
Proceeds
from sale of property and equipment |
261 |
|
|
54 |
|
|
870 |
|
|
711 |
|
Proceeds
from property insurance settlement |
— |
|
|
— |
|
|
992 |
|
|
— |
|
Free Cash
Flow |
$ |
7,378 |
|
|
$ |
3,533 |
|
|
$ |
42,049 |
|
|
$ |
36,147 |
|
Contract
settlement costs (i) |
— |
|
|
— |
|
|
2,100 |
|
|
— |
|
Landfill
closure, site improvement and remediation expenditures (ii) |
912 |
|
|
599 |
|
|
(2,827 |
) |
|
2,182 |
|
Cash
outflows related to acquisitions and other items (iii) |
640 |
|
|
— |
|
|
1,329 |
|
|
— |
|
Non-recurring capital expenditures (iv) |
824 |
|
|
287 |
|
|
4,402 |
|
|
469 |
|
Normalized Free
Cash Flow |
$ |
9,754 |
|
|
$ |
4,419 |
|
|
$ |
47,053 |
|
|
$ |
38,798 |
|
- Includes a contract settlement cash outflow associated with
exiting a contract.
- Includes cash inflows and cash outflows associated with the
Southbridge Landfill closure. This includes $6,494 of the $10,000
recovery of the environmental insurance settlement and excludes
$3,506 pertaining to the recovery of cash flows from investing
activities.
- Includes cash outflows associated with acquisition activities
and other items.
- Includes capital expenditures related to acquisitions or
assumption of new customers from a distressed or defunct market
participant.
Following is the Consolidated Net Leverage Ratio* and
the reconciliations of Consolidated Funded Debt, Net* from
long-term debt and capital leases and Consolidated EBITDA* from Net
cash provided by operating activities:
|
Fiscal Year EndedDecember 31,
2018 |
|
CovenantRequirement atDecember 31,
2018 |
Consolidated Net
Leverage Ratio (i) |
3.62 |
|
|
4.75 |
|
- The Company's credit facility agreement requires it to maintain
a maximum leverage ratio, to be measured at the end of each fiscal
quarter ("Consolidated Net Leverage Ratio"). The Consolidated Net
Leverage Ratio is calculated as consolidated long-term debt and
capital leases, net of unencumbered cash and cash equivalents in
excess of $2,000 ("Consolidated Funded Debt, Net", calculated at
$553,242 as of December 31, 2018, or $555,249 of consolidated
funded debt less $2,007 of cash and cash equivalents in excess of
$2.0 million as of December 31, 2018), divided by Consolidated
EBITDA. Consolidated EBITDA is based on operating results for the
twelve months preceding the measurement date of December 31,
2018. A reconciliation of Net cash provided by operating activities
to Consolidated EBITDA is as follows:
|
Twelve Months Ended December 31,
2018 |
|
$ |
120,834 |
|
Net cash provided
by operating activities |
|
|
Changes in
assets and liabilities, net of effects of acquisitions and
divestitures |
5,340 |
|
Gain on sale
of property and equipment |
492 |
|
Non-cash
expense from acquisition activities and other items |
(757 |
) |
Developmental project charge |
(311 |
) |
Loss on debt
extinguishment |
(7,352 |
) |
Impairment
of investments |
(1,069 |
) |
Stock based
compensation |
(8,445 |
) |
Southbridge
Landfill non-cash closure charge |
(16,179 |
) |
Southbridge
Landfill insurance recovery for investing activities |
3,506 |
|
Interest
expense, less amortization of debt issuance costs |
23,845 |
|
Provision
for income taxes, net of deferred income taxes |
(1,634 |
) |
Adjustments
as allowed by the credit agreement |
34,688 |
|
Consolidated
EBITDA |
$ |
152,958 |
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESRECONCILIATION OF 2019 OUTLOOK
NON-GAAP MEASURES(Unaudited)(In
thousands)
Following is a reconciliation of the Company's
anticipated Adjusted EBITDA from anticipated Net income for the
fiscal year ending December 31, 2019:
|
(Anticipated) Fiscal Year Ending
December 31, 2019 |
Net income |
$34,000 - $38,000 |
Provision for income taxes |
1,000 |
Interest expense, net |
26,000 |
Depreciation and amortization |
76,000 |
Depletion of landfill operating lease
obligations |
10,000 |
Interest accretion on landfill and environmental
remediation liabilities |
5,000 |
Adjusted EBITDA |
$152,000 - $156,000 |
|
|
|
|
Following is a reconciliation of the Company's
anticipated Free Cash Flow and anticipated Normalized Free Cash
Flow from anticipated Net cash provided by operating
activities:
|
(Anticipated) Fiscal Year Ending
December 31, 2019 |
Net cash provided by operating
activities |
$119,000 - $123,000 |
Capital expenditures |
(83,000) |
Payments on landfill operating lease
contracts |
(6,000) |
Free Cash Flow |
$30,000 - $34,000 |
Landfill closure, site improvement and
remediation expenditures (i) |
12,500 |
Non-recurring capital expenditures (ii) |
8,500 |
Normalized Free Cash Flow |
$51,000 - $55,000 |
- Includes cash inflows and cash outflows associated with the
Southbridge landfill closure and the Potsdam, New York
environmental site remediation.
- Includes capital expenditures related to acquisitions,
development projects, and other non-recurring items.
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIESSUPPLEMENTAL DATA
TABLES(Unaudited)(In
thousands)
Amounts of total revenues attributable to services
provided for the three and twelve months ended December 31,
2018 and 2017 are as follows:
|
Three Months Ended December 31, |
|
2018 |
|
% of TotalRevenues |
|
2017 |
|
% of TotalRevenues |
Collection |
$ |
82,768 |
|
|
47.4 |
% |
|
$ |
67,502 |
|
|
44.6 |
% |
Disposal |
44,893 |
|
|
25.7 |
% |
|
41,739 |
|
|
27.6 |
% |
Power generation |
1,115 |
|
|
0.6 |
% |
|
1,254 |
|
|
0.8 |
% |
Processing |
1,327 |
|
|
0.8 |
% |
|
1,699 |
|
|
1.1 |
% |
Solid waste operations |
130,103 |
|
|
74.5 |
% |
|
112,194 |
|
|
74.1 |
% |
Organics |
13,915 |
|
|
7.9 |
% |
|
9,934 |
|
|
6.6 |
% |
Customer
solutions |
19,149 |
|
|
11.0 |
% |
|
15,994 |
|
|
10.6 |
% |
Recycling |
11,557 |
|
|
6.6 |
% |
|
13,101 |
|
|
8.7 |
% |
Total
revenues |
$ |
174,724 |
|
|
100.0 |
% |
|
$ |
151,223 |
|
|
100.0 |
% |
|
Fiscal Year Ended December 31, |
|
2018 |
|
% of
TotalRevenues |
|
2017 |
|
% of
TotalRevenues |
Collection |
$ |
303,418 |
|
|
45.9 |
% |
|
$ |
263,688 |
|
|
44.0 |
% |
Disposal |
181,110 |
|
|
27.4 |
% |
|
160,073 |
|
|
26.7 |
% |
Power generation |
5,129 |
|
|
0.8 |
% |
|
5,375 |
|
|
0.9 |
% |
Processing |
7,174 |
|
|
1.1 |
% |
|
7,994 |
|
|
1.3 |
% |
Solid waste operations |
496,831 |
|
|
75.2 |
% |
|
437,130 |
|
|
72.9 |
% |
Organics |
54,174 |
|
|
8.2 |
% |
|
39,815 |
|
|
6.7 |
% |
Customer
solutions |
67,464 |
|
|
10.2 |
% |
|
60,057 |
|
|
10.0 |
% |
Recycling |
42,191 |
|
|
6.4 |
% |
|
62,307 |
|
|
10.4 |
% |
Total
revenues |
$ |
660,660 |
|
|
100.0 |
% |
|
$ |
599,309 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of revenue growth for the three months ended
December 31, 2018 compared to the three months ended
December 31, 2017 are as follows:
|
Amount |
|
%
ofRelatedBusiness |
|
% of
SolidWasteOperations |
|
% of TotalCompany |
Solid Waste
Operations: |
|
|
|
|
|
|
|
Collection |
$ |
3,779 |
|
|
5.6 |
% |
|
3.4 |
% |
|
2.5 |
% |
Disposal |
1,309 |
|
|
3.1 |
% |
|
1.1 |
% |
|
0.9 |
% |
Processing |
(11 |
) |
|
(0.7 |
)% |
|
— |
% |
|
— |
% |
Solid
Waste Price |
5,077 |
|
|
|
|
4.5 |
% |
|
3.4 |
% |
Collection |
(11 |
) |
|
|
|
— |
% |
|
— |
% |
Disposal |
134 |
|
|
|
|
0.1 |
% |
|
0.1 |
% |
Processing |
(119 |
) |
|
|
|
(0.1 |
)% |
|
(0.1 |
)% |
Solid
Waste Volume |
4 |
|
|
|
|
— |
% |
|
— |
% |
Surcharges and other fees |
1,634 |
|
|
|
|
1.5 |
% |
|
1.0 |
% |
Commodity
price & volume |
(381 |
) |
|
|
|
(0.3 |
)% |
|
(0.3 |
)% |
Acquisitions |
13,403 |
|
|
|
|
11.9 |
% |
|
8.9 |
% |
Closed
landfill |
(1,828 |
) |
|
|
|
(1.6 |
)% |
|
(1.2 |
)% |
Total Solid
Waste |
17,909 |
|
|
|
|
16.0 |
% |
|
11.8 |
% |
Organics |
3,981 |
|
|
|
|
|
|
2.6 |
% |
Customer
Solutions |
3,155 |
|
|
|
|
|
|
2.1 |
% |
Recycling
Operations: |
|
|
|
|
% of Recycling
Operations |
|
|
Price |
(893 |
) |
|
|
|
(6.8 |
)% |
|
(0.6 |
)% |
Volume |
(651 |
) |
|
|
|
(5.0 |
)% |
|
(0.4 |
)% |
Total
Recycling |
(1,544 |
) |
|
|
|
(11.8 |
)% |
|
(1.0 |
)% |
Total
Company |
$ |
23,501 |
|
|
|
|
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solid Waste Internalization Rates by Region for the
three and twelve months ended December 31, 2018 and 2017 are
as follows:
|
Three Months Ended December 31, |
|
Fiscal Year Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Eastern region |
47.8 |
% |
|
58.1 |
% |
|
50.8 |
% |
|
56.2 |
% |
Western region |
58.9 |
% |
|
76.2 |
% |
|
69.2 |
% |
|
73.7 |
% |
Solid waste
internalization |
53.2 |
% |
|
66.5 |
% |
|
59.2 |
% |
|
64.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of capital expenditures (i) for the three and
twelve months ended December 31, 2018 and 2017 are as
follows:
|
Three Months Ended December 31, |
|
Fiscal Year Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Growth Capital
Expenditures |
$ |
2,381 |
|
|
$ |
901 |
|
|
$ |
4,260 |
|
|
$ |
3,552 |
|
Non-Recurring
Capital Expenditures |
824 |
|
|
287 |
|
|
4,402 |
|
|
469 |
|
Replacement
Capital Expenditures: |
|
|
|
|
|
|
|
Landfill
development |
6,369 |
|
|
7,536 |
|
|
27,709 |
|
|
33,697 |
|
Vehicles,
machinery, equipment and containers |
8,450 |
|
|
10,327 |
|
|
30,287 |
|
|
21,581 |
|
Facilities |
2,777 |
|
|
1,447 |
|
|
4,985 |
|
|
3,155 |
|
Other |
590 |
|
|
952 |
|
|
1,589 |
|
|
2,408 |
|
Replacement
Capital Expenditures |
18,186 |
|
|
20,262 |
|
|
64,570 |
|
|
60,841 |
|
Capital
Expenditures |
$ |
21,391 |
|
|
$ |
21,450 |
|
|
$ |
73,232 |
|
|
$ |
64,862 |
|
- The Company's capital expenditures are broadly defined as
pertaining to either growth, replacement or non-recurring
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 adding infrastructure to increase throughput at
transfer stations and recycling facilities. Replacement 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.
Non-recurring capital expenditures are defined as costs of
equipment added directly as a result of new business growth related
to an acquisition or assumption of significant new customers from a
distressed or defunct market participant.
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