Date: December 3, 2012
Source: Casella Waste Systems, Inc.
Casella Waste Systems, Inc. (Rutland, VT) reshuffled its management and reported a second quarter fiscal loss that widened on restructuring costs amid lower revenue that was hurt by lower recycled commodity prices and lower landfill volume. The company promoted its finance chief Ed Johnson to chief operating officer, replacing Paul Larkin, who left the company effective Nov. 30. Ned Coletta, who was until recently vice president of finance, is now CFO.
For the quarter, the company posted a net loss of $21.1 million, or ($0.68) per share, compared with $765,000, or ($0.03) per share, in the year-ago period. Revenue fell 7.3 percent to $120.3 million from $129.9 million last year. The latest quarter included a $9.7 million loss on the extinguishment of debt, $1.8 million in severance and reorganization charges related to its operational realignment unveiled in August, and a $0.1 million expense on the sale of Maine Energy Recovery. Without these charges, the net loss would have been $5.7 million, or ($0.18) per share.
CEO John W. Casella cited difficult economic conditions in the northeastern US. "Recycling commodity prices, landfill volumes at our Western New York landfills, and our roll-off collection line-of-business all underperformed our expectations in the quarter and, as such, we have lowered our guidance for the current fiscal year."
For fiscal 2013, the company now predicts revenue between $468 million and $478 million, from $475 million and $485 million projected in August.
PRESS RELEASE
December 3, 2012
For the quarter ended
The company's net loss attributable to common shareholders was
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
Operating income was
"The northeastern U.S. economy remained a difficult environment through our
second quarter," said
"We believe that broad uncertainty in the national and global economy has translated to declining economic activity across our region over the last 6 months," Casella said. "This trend was especially pronounced in the construction and demolition (C&D) market, where we experienced an unexpected 12.9 percent decline in roll-off revenues year-over-year on lower volumes, weak pricing, and a tough comparison to the second quarter last year when we saw increased demand from Hurricane Irene and Tropical Storm Lee clean-up activity. Despite this weakness, our pricing programs in the commercial and residential lines-of-business remained on track with positive 1.9 percent pricing in the quarter."
"Recycling commodity prices hit bottom in September and began to rebound modestly
in October and November as Chinese and domestic demand reemerged," Casella said.
"We have taken what we believe is a conservative view on recycling commodity
prices for the remainder of our fiscal year with pricing expected to remain
consistent with current levels. Maximizing our landfill capacity utilization
in
"We accomplished two important strategic goals in the quarter which we believe position the company well for the future, specifically:
"As separately announced this afternoon, we have completed the sale of
the property containing our Maine Energy facility to the
"During the second quarter we redeemed our 11.0 percent
Fiscal 2013 Outlook
Due primarily to the negative impact of lower than expected recycling commodity prices and landfill volumes, softness in the roll-off line-of-business, and project and contract delays discussed below, the company adjusted its fiscal year guidance in the following categories:
Revenues between
Adjusted EBITDA* between
The negative variances from our fiscal year forecast as presented in August to this current forecast include the following impacts from the second quarter and our expectations about the remainder of the fiscal year:
While we expected average recycling commodity price per ton to decline
through our second quarter, actual commodity prices declined below the levels
we had forecasted in August. Given the actual lower results from our second
quarter and our current revised commodity price forecast for the remainder
of our fiscal year, we expect recycling Adjusted EBITDA to be approximately
While we expected disposal volumes to decline through our second quarter,
actual volumes and pricing declined below the levels we had forecasted in
August, mainly due to lower C&D volumes, lower special waste volumes, and
contract delays for drilling solidification work at our
The roll-off collection line-of-business underperformed our August forecast
projections with weaker than expected net revenue due to lower pricing and
volumes. Given the actual lower results from our second quarter and our
current revised forecast for the remainder of our fiscal year, we expect
roll-off Adjusted EBITDA to be approximately
The delayed start-up of the company's joint venture water treatment facility
at its McKean landfill is expected reduce the facility's forecasted Adjusted
EBITDA for the fiscal year by
*Non-GAAP Financial Measures
In addition to disclosing financial results prepared
in accordance with Generally Accepted Accounting Principles in
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
Conference call to discuss quarter
The company will host a conference call to discuss these
results on
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; and we may be unable to decommission our waste-to-energy facility on
a timely basis and shift waste volumes to other landfill sites. 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
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 Six Months Ended
------------------------ ------------------------
October 31, October 31, October 31, October 31,
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenues $ 120,335 $ 129,866 $ 241,529 $ 257,059
Operating expenses:
Cost of operations 85,474 86,627 170,251 171,851
General and
administration 13,985 16,062 29,307 32,268
Depreciation and
amortization 14,632 15,061 29,388 29,567
Severance and
reorganization costs 1,793 - 1,827 -
Expense from
divestiture and
financing costs 77 - 631 -
Legal settlement - 359 - 1,359
Development project
charge - 131 - 131
----------- ----------- ----------- -----------
115,961 118,240 231,404 235,176
----------- ----------- ----------- -----------
Operating income 4,374 11,626 10,125 21,883
Other expense/(income),
net:
Interest expense, net 11,689 11,207 23,533 22,357
Loss from equity
method investment 109 1,523 1,875 3,781
Loss on derivative
instruments 3,896 - 3,896 -
Loss on debt
extinguishment 9,670 - 9,670 -
Other income (311) (327) (441) (432)
----------- ----------- ----------- -----------
25,053 12,403 38,533 25,706
----------- ----------- ----------- -----------
Loss from continuing
operations before
income taxes and
discontinued operations (20,679) (777) (28,408) (3,823)
Provision for income
taxes 413 67 1,063 728
----------- ----------- ----------- -----------
Loss from continuing
operations before
discontinued operations (21,092) (844) (29,471) (4,551)
Discontinued operations:
Gain on disposal of
discontinued
operations, net of
income taxes (1) - 79 - 725
----------- ----------- ----------- -----------
Net loss (21,092) (765) (29,471) (3,826)
----------- ----------- ----------- -----------
Less: Net loss
attributable to
noncontrolling
interest (125) - (133) -
----------- ----------- ----------- -----------
Net loss attributable to
common stockholders $ (20,967) $ (765) $ (29,338) $ (3,826)
=========== =========== =========== ===========
Weighted average common
shares outstanding 30,872 26,759 28,932 26,661
=========== =========== =========== ===========
Net loss per common
share $ (0.68) $ (0.03) $ (1.01) $ (0.14)
=========== =========== =========== ===========
Adjusted EBITDA (2) $ 24,392 $ 30,532 $ 48,708 $ 59,194
=========== =========== =========== ===========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
October 31, April 30,
ASSETS 2012 2012
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,901 $ 4,534
Restricted cash 23,655 76
Accounts receivable - trade, net of allowance
for doubtful accounts 50,978 47,472
Other current assets 17,495 15,274
------------ ------------
Total current assets 94,029 67,356
Property, plant and equipment, net of accumulated
depreciation and amortization 424,839 416,717
Goodwill 102,722 101,706
Intangible assets, net 4,217 2,970
Restricted assets 521 424
Notes receivable - related party/employee 514 722
Investments in unconsolidated entities 20,729 22,781
Other non-current assets 21,904 21,067
------------ ------------
Total assets $ 669,475 $ 633,743
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and capital
leases $ 73,795 $ 1,228
Current maturities of financing lease
obligations 349 338
Accounts payable 51,326 46,709
Other accrued liabilities 42,904 40,060
------------ ------------
Total current liabilities 168,374 88,335
Long-term debt and capital leases, less current
maturities 412,051 473,381
Financing lease obligations, less current
maturities 1,640 1,818
Other long-term liabilities 52,345 51,978
Total stockholders' equity 35,065 18,231
------------ ------------
Total liabilities and stockholders' equity $ 669,475 $ 633,743
============ ============
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Six Months Ended
--------------------------
October 31, October 31,
2012 2011
------------ ------------
Cash Flows from Operating Activities:
Net loss $ (29,471) $ (3,826)
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 (223) (754)
Depreciation and amortization 29,388 29,567
Depletion of landfill operating lease
obligations 4,878 4,514
Interest accretion on landfill and
environmental remediation liabilities 1,858 1,740
Development project charge - 131
Amortization of discount on second lien notes
and senior subordinated notes 502 467
Loss from equity method investments 1,875 3,781
Loss on derivative instruments 3,896 -
Loss on debt extinguishment 9,670 -
Stock-based compensation 1,306 1,366
Excess tax benefit on the vesting of share
based awards (188) (219)
Deferred income taxes 907 1,008
Changes in assets and liabilities, net of
effects of acquisitions and divestitures (2,023) 4,428
------------ ------------
Net Cash Provided by Operating Activities 22,375 41,478
------------ ------------
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired (4,635) (715)
Additions to property, plant and equipment
- acquisitions (417) (133)
- growth (8,257) (6,410)
- maintenance (25,368) (29,427)
Payment for capital related to divestiture (618) -
Payments on landfill operating lease contracts (3,298) (3,314)
Proceeds from sale of property and equipment 557 1,170
Investments in unconsolidated entities (1,000) (935)
------------ ------------
Net Cash Used In Investing Activities (43,036) (39,764)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from long-term borrowings 236,177 82,100
Principal payments on long-term debt (227,028) (82,146)
Change in restricted cash (23,579) -
Payment of tender premium and costs on second
lien notes (6,745) -
Payments of financing costs (4,329) (184)
Net proceeds from the sale of Class A common
stock 42,149 -
Proceeds from the exercise of share based
awards - 176
Excess tax benefit on the vesting of share
based awards 188 219
Contributions from noncontrolling interest
holder 1,195 -
------------ ------------
Net Cash Provided By Financing Activities 18,028 165
------------ ------------
Net Cash Provided By Discontinued Operations - 725
------------ ------------
Net (decrease) increase in cash and cash
equivalents (2,633) 2,604
Cash and cash equivalents, beginning of period 4,534 1,817
------------ ------------
Cash and cash equivalents, end of period $ 1,901 $ 4,421
============ ============
Supplemental Disclosures:
Cash interest $ 22,578 $ 20,531
Cash income taxes, net of refunds $ 71 $ 5,281
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 and
personal 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 waved certain conditions
precedent not satisfied at that time. Post closing, we are entitled to
continue operations of Maine Energy for our benefit and obligated to begin
work to decommission the facility in accordance with the provisions of the
agreement within a period not to exceed six months after the closing date.
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.
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 for $130,400 in gross
proceeds. 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 three months ended October 31, 2011 , 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, as
well as expenses from divestiture and financing costs (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, as well as expenses from divestiture and financing
costs (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 Six Months Ended
-------------------------- --------------------------
October 31, October 31, October 31, October 31,
2012 2011 2012 2011
------------ ------------ ------------ ------------
Net Loss $ (21,092) $ (765) $ (29,471) $ (3,826)
Gain on disposal
of discontinued
operations, net - (79) - (725)
Provision for
income taxes 413 67 1,063 728
Other expense, net 13,364 1,196 15,001 3,349
Interest expense,
net 11,689 11,207 23,533 22,357
Legal settlement - 359 - 1,359
Expense from
divestiture and
financing costs 77 - 631 -
Depreciation and
amortization 14,632 15,061 29,388 29,567
Development
project charge - 131 - 131
Severance and
reorganization
charges 1,793 - 1,827 -
Depletion of
landfill
operating lease
obligations 2,591 2,484 4,878 4,514
Interest accretion
on landfill and
environmental
remediation
liabilities 925 871 1,858 1,740
------------ ------------ ------------ ------------
Adjusted EBITDA (2) $ 24,392 $ 30,532 $ 48,708 $ 59,194
Depreciation and
amortization (14,632) (15,061) (29,388) (29,567)
Depletion of
landfill
operating lease
obligations (2,591) (2,484) (4,878) (4,514)
Interest accretion
on landfill and
environmental
remediation
liabilities (925) (871) (1,858) (1,740)
------------ ------------ ------------ ------------
Adjusted Operating
Income (2) $ 6,244 $ 12,116 $ 12,584 $ 23,373
============ ============ ============ ============
Following is a reconciliation of Free Cash Flow to Net Cash Provided by
Operating Activities:
Three Months Ended Six Months Ended
-------------------------- --------------------------
October 31, October 31, October 31, October 31,
2012 2011 2012 2011
------------ ------------ ------------ ------------
Net Cash Provided by
Operating
Activities $ 14,854 $ 27,538 $ 22,375 $ 41,478
Capital expenditures
- growth and
maintenance (17,229) (20,969) (33,625) (35,837)
Payments on landfill
operating lease
contracts (1,484) (1,456) (3,298) (3,314)
Proceeds from sale
of property and
equipment 292 971 557 1,170
Contributions from
noncontrolling
interest holder 474 - 1,195 -
------------ ------------ ------------ ------------
Free Cash Flow (2) $ (3,093) $ 6,084 $ (12,796) $ 3,497
============ ============ ============ ============
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 six months ended October 31, 2012 and 2011 are as follows:
Three Months Ended October 31,
----------------------------------------------
% of Total % of Total
2012 Revenue 2011 Revenue
----------- ---------- ----------- ----------
Collection $ 53,104 44.1% $ 54,764 42.2%
Disposal 32,382 26.9% 34,254 26.4%
Power generation 2,793 2.3% 3,190 2.4%
Processing and organics 13,795 11.5% 13,992 10.8%
----------- ---------- ----------- ----------
Solid waste operations 102,074 84.8% 106,200 81.8%
Major accounts 9,221 7.7% 9,847 7.6%
Recycling 9,040 7.5% 13,819 10.6%
----------- ---------- ----------- ----------
Total revenues $ 120,335 100.0% $ 129,866 100.0%
=========== ========== =========== ==========
Six Months Ended October 31,
----------------------------------------------
% of Total % of Total
2012 Revenue 2011 Revenue
----------- ---------- ----------- ----------
Collection $ 106,147 43.9% $ 108,390 42.2%
Disposal 63,349 26.2% 66,426 25.8%
Power generation 5,456 2.3% 6,233 2.4%
Processing and organics 28,427 11.8% 28,730 11.2%
----------- ---------- ----------- ----------
Solid waste operations 203,379 84.2% 209,779 81.6%
Major accounts 18,746 7.8% 20,557 8.0%
Recycling 19,404 8.0% 26,723 10.4%
----------- ---------- ----------- ----------
Total revenues $ 241,529 100.0% $ 257,059 100.0%
=========== ========== =========== ==========
Components of revenue growth for the three months ended October 31, 2012
compared to the three months ended October 31, 2011 are as follows:
% of % of Solid
Related Waste % of Total
Amount Business Operations Company
----------- ---------- ---------- ----------
Solid Waste Operations:
Collection $ (74) -0.1% -0.1% -0.1%
Disposal (184) -0.5% -0.2% -0.1%
----------- ---------- ----------
Solid Waste Yield (258) -0.3% -0.2%
Collection (2,379) -2.2% -1.8%
Disposal (1,259) -1.2% -1.0%
Organics and processing 140 0.1% 0.1%
----------- ---------- ----------
Solid Waste Volume (3,498) -3.3% -2.7%
Fuel surcharge (67) -0.1% 0.0%
Commodity price & volume (849) -0.8% -0.6%
Acquisitions 1,029 1.0% 0.8%
Closed landfill (482) -0.5% -0.4%
----------- ---------- ----------
Total Solid Waste (4,126) -4.0% -3.1%
----------- ========== ==========
Major Accounts (626) -0.5%
----------- ==========
% of
Recycling
Recycling Operations: Operations
----------
Commodity price (4,905) -35.5% -3.8%
Commodity volume 126 0.9% 0.1%
----------- ---------- ----------
Total Recycling (4,779) -34.6% -3.7%
----------- ========== ==========
Total Company $ (9,531) -7.3%
=========== ==========
Solid Waste Internalization Rates by Region:
Three Months Ended Six Months Ended
October 31, October 31,
---------------------- ----------------------
2012 2011 2012 2011
---------- ---------- ---------- ----------
Eastern region 53.5% 59.7% 53.7% 56.9%
Western region 74.2% 77.0% 73.4% 76.6%
Solid waste internalization 65.0% 68.9% 64.5% 67.3%
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA TABLES
(Unaudited)
(In thousands)
GreenFiber Financial Statistics (1):
Three Months Ended Six Months Ended
October 31, October 31,
---------------------- ----------------------
2012 2011 2012 2011
---------- ---------- ---------- ----------
Revenues $ 19,494 $ 21,841 $ 32,595 $ 37,856
Net loss (297) (3,049) (3,866) (7,564)
Cash flow provided by (used
in) operations 805 (949) 1,031 (2,258)
Net working capital changes (662) (149) 1,274 726
Adjusted EBITDA $ 1,467 $ (800) $ (243) $ (2,984)
As a percentage of revenues:
Net loss -1.5% -14.0% -11.9% -20.0%
Adjusted EBITDA 7.5% -3.7% -0.7% -7.9%
(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 Six Months Ended
October 31, October 31,
---------------------- ----------------------
2012 2011 2012 2011
---------- ---------- ---------- ----------
Growth capital expenditures:
Landfill development $ 257 $ 203 $ 589 $ 244
Water treatment facility 3,908 - 4,668 -
Transfer station
construction 1,434 - 1,434
Landfill gas-to-energy
project - 792 - 1,159
MRF equipment upgrades - 2,498 - 3,007
Other 656 1,774 1,566 2,000
---------- ---------- ---------- ----------
Total Growth Capital
Expenditures 6,255 5,267 8,257 6,410
---------- ---------- ---------- ----------
Maintenance capital
expenditures:
Vehicles, machinery /
equipment and containers $ 3,168 $ 3,868 $ 6,221 $ 10,308
Landfill construction &
equipment 7,172 9,807 18,094 16,804
Facilities 501 1,815 780 1,990
Other 133 212 273 325
---------- ---------- ---------- ----------
Total Maintenance Capital
Expenditures 10,974 15,702 25,368 29,427
---------- ---------- ---------- ----------
Total Growth and Maintenance
Capital Expenditures $ 17,229 $ 20,969 $ 33,625 $ 35,837
========== ========== ========== ==========
(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.
For more information, contact:
Investors:
Vice President of Finance and Investor Relations
(802) 772-2239
Media:
Vice President
(802) 772-2247
www.casella.com.
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