Date: December 6, 2006
Source: Casella Waste Systems, Inc.
Casella Waste Systems, Inc. (Nasdaq: CWST), a regional, non-hazardous solid waste services company, today reported financial results for the second quarter and first six months of its 2007 fiscal year.
Second Quarter Results
For the quarter ended October 31, 2006, the company reported revenues of $147.8 million, up $11.0 million, or 8.0 percent over the same quarter last year. The company's net income per common share was $0.06, compared to $0.13 per share in the same quarter last year. Operating income for the quarter was $14.6 million, up $0.8 million or 5.8 percent over the same quarter last year. Cash provided by operating activities in the quarter was $21.0 million, up $7.0 million, or 50.0 percent compared to the same quarter last year. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) were $33.9 million*, up $3.2 million, or 10.4 percent from the same quarter last year and an increase of $7.3 million from the first quarter of fiscal year 2007.
For the six months ended October 31, 2006, the company reported revenues of $291.3 million. The company's net income per common share was $0.02. Operating income for the six month period was $23.3 million. Cash provided by operating activities for the period was $39.4 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) were $60.5 million*.
Highlights of the Quarter
"The quarter represents an encouraging improvement from the challenges we faced earlier in the year," John W. Casella, chairman and chief executive officer, said.
"In addition, our landfill development work continues to progress towards our goal of adding incremental EBITDA arising from our investment over the last two years," Casella said.
* Non-GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose free cash flow and earnings before interest, taxes, depreciation and amortization (EBITDA), which are non-GAAP measures.
These measures are provided because we understand that certain investors use this information when analyzing the financial position of companies in the solid waste industry, including us. Historically, these measures have been key in comparing operating efficiency of publicly traded companies in the solid waste industry, and assist investors in measuring our ability to meet capital expenditure and working capital requirements. For these reasons we utilize these non-GAAP metrics to measure our performance at all levels. These measures do not represent, and should not be considered as alternatives to cash provided by operating activities as determined in accordance with GAAP. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as working capital or capital expenditures, or to react to changes in our industry or to the economy generally. Because these measures are not calculated by all companies in the same fashion, they may not be comparable to similarly titled measures reported by other companies.
Casella Waste Systems, headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services primarily in the eastern United States.
For further information, contact Richard Norris, chief financial officer; Ned Coletta, director of investor relations; or Joseph Fusco, vice president; at (802) 775-0325, or visit the company's website at www.casella.com.
The company will host a conference call to discuss these results on Thursday, December 7, 2006 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (719) 457-2657 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems' website at www.casella.com and follow the appropriate link to the webcast. A replay of the call will be available by calling (719) 457-0820 (conference code #7430652) before 11:59 p.m. ET, Thursday, December 14, 2006, or by visiting the company's website.
| CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES SUPPLEMENTAL DATA TABLES (Unaudited) (In thousands) |
||||
| Amounts of the Company's total revenues attributable to services provided are as follows: | ||||
| Three Months Ended October 31, |
Six Months Ended October 31, |
|||
| 2005 | 2006 | 2005 | 2006 | |
| Collection | $66,152 | $68,774 | $131,419 | $137,270 |
| Landfill / disposal facilities |
26,498 | 30,031 | 49,761 | 58,407 |
| Transfer | 11,913 | 11,636 | 23,562 | 23,946 |
| Recycling | 32,232 | 37,376 | 64,053 | 71,713 |
| Total revenues | $136,795 | $147,817 | $268,795 | $291,336 |
| Components of revenue growth for the three months ended October 31, 2006 compared to the three months ended October 31, 2005: | ||
| Percentage | ||
| Solid Waste Operations (1) |
Price | 3.6% |
| Volume | -1.5% | |
| Solid waste commodity price and volume | 0.3% | |
| Total growth - Solid Waste Operations | 2.4% | |
| FCR Operations (1) | Price | 2.8% |
| Volume | 5.3% | |
| Total growth - FCR Operations | 8.1% | |
| Rollover effect of acquisitions (as a percentage of total revenues) |
3.8% | |
| Divestitures (as a percentage of total revenues) | -0.4% | |
| Total revenue growth | 8.0% | |
| (1) - Calculated as a percentage of segment revenues. | ||
| Solid Waste Internalization Rates by Region: | ||||
| Three Months Ended October 31, |
Six Months Ended October 31, |
|||
| 2005 | 2006 | 2005 | 2006 | |
| North Eastern region | 54.5% |
57.8% | 57.7% | 57.6% |
| South Eastern region |
41.3% | 41.6% | 41.6% | 41.0% |
| Central region | 79.2% | 76.2% | 78.7% | 77.6% |
| Western region | 42.2% | 49.1% | 41.7% | 49.7% |
| Solid Waste Operations | 55.4% | 57.7% | 55.6% | 58.1% |
| US GreenFiber (50% owned) Financial Statistics: | ||||
| Three Months Ended October 31, |
Six Months Ended October 31, |
|||
| 2005 | 2006 | 2005 | 2006 | |
| Revenues | $42,934 | $52,094 | $74,538 | $96,490 |
| Net Income | 3,026 | 2,370 | 2,886 | 2,784 |
| Cash flow from operations |
5,456 | 1,619 | 9,965 | 9,798 |
| Net working capital changes |
686 | (3,544) | 3,596 | 1,936 |
| EBITDA | $4,770 | $5,163 | $6,369 | $7,862 |
| As a percentage of revenue: |
||||
| Net income | 7.0% | 4.5% | 3.9% | 2.9% |
| EBITDA | 11.1% | 9.9% | 8.5% | 8.1% |
| Components of Growth versus Maintenance Capital Expenditures (1): | ||||
| Three Months Ended October 31, |
Six Months Ended October 31, |
|||
| 2005 | 2006 | 2005 | 2006 | |
| Growth Capital Expenditures: |
||||
| Landfill Development | $10,342 | $5,461 | $18,601 | $11,483 |
| Boston MRF Building | - | - | 5,998 | - |
| MRF Equipment Upgrades | - | 2,412 | - | 3,257 |
| Other | 595 | 1,859 | 1,279 | 3,480 |
| Total Growth Capital Expenditures |
10,937 | 9,732 | 25,878 | 18,220 |
| Maintenance Capital Expenditures: |
||||
| Vehicles, Machinery / Equipment and Containers |
7,769 | 5,536 | 21,495 | 19,366 |
| Landfill Construction & Equipment |
8,470 | 11,474 | 12,782 | 19,551 |
| Facilities | 2,678 | 982 | 3,755 | 2,021 |
| Other | 430 | 260 | 989 | 1,097 |
| Total Maintenance Capital Expenditures |
19,347 | 18,252 | 39,021 | 42,035 |
| Total Capital Expenditures |
$30,284 | $27,984 | $64,899 | $60,255 |
| (1) The Company's capital expenditures are broadly defined as pertaining to either growth or maintenance activities. Growth capital expenditures are defined as costs related to development of new airspace, permit expansions, 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 new business as well as expenditures associated with increasing infrastructure to increase throughput at transfer stations and recycling facilities. Growth capital expenditures also include those outlays associated with acquiring landfill operating leases, which do not meet the operating lease payment definition, but which were included as a commitment in the successful bid. 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. | ||||
For more information, contact:
Richard Norris, Chief financial officer -or-
Ned Coletta, Director of investor relations -or-
Joseph Fusco, Vice president
802-775-0325
Web site: www.casella.com (CWST)
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