Casella Waste Systems, Inc. Announces Second Quarter Fiscal Year 2009 Results

Casella provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States.

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Casella Waste Systems, Inc. Announces Second Quarter Fiscal Year 2009 Results

December 3, 2008

RUTLAND, VT, Dec 03, 2008 (MARKET WIRE via COMTEX News Network) -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported financial results for the second quarter of its 2009 fiscal year.

Highlights of the quarter include:

--  Free cash flow* for the quarter was up $8.2 million over the same
period last year;
--  Operating income for the quarter was up 1.3 percent over same period
last year; and
--  Solid waste operations continue to perform well through the economic
slowdown, while the recycling group faces pressures from volatile commodity
pricing.

"Since the northeastern U.S. economy first began to slow in July 2006, we have taken steps to better position our business to perform well in this uncertain economic environment," John W. Casella, chairman and CEO of Casella Waste Systems, said. "We continue to execute well against factors that we can control by combining our successful cost reduction initiatives from the past 18 months with operating programs that enhance productivity and asset utilization."

"These efforts are currently offsetting economic pressures in our solid waste group, with performance in the quarter driven by increases in landfill volumes, improved operating performance of the hauling operations, and roll over impacts from the successful divestiture program of under-performing assets," Casella said.

"While it is difficult to fully assess the potential economic impacts from the financial market turmoil, the recession-resistant qualities of our integrated solid waste group will help our business maintain stability," Casella said.

"The global slowdown is negatively impacting recycling commodity pricing," Casella said. "However, our commodity risk mitigation programs are dampening pricing exposure through the use of hedging agreements, floor price contracts, and long-term supply contracts with customers."

Second Quarter Financial Results

For the quarter ended October 31, 2008, the company reported revenues of $157.5 million, up $7.0 million, or 4.7 percent over the same quarter last year. The company's net income available to common shareholders was $2.1 million or $0.08 per common share compared with net income of $2.8 million or $0.11 per common share in the same quarter last year.

Operating income for the quarter was $16.0 million, up $0.2 million or 1.3 percent over the same quarter last year. Net cash provided by operating activities in the quarter was $19.4 million, compared to $15.1 million in the same quarter last year. The company's earnings before interest, taxes, depreciation and amortization (EBITDA*) were $35.5 million, down $0.5 million or 1.4 percent over the same quarter last year. The company's free cash flow for the quarter was $6.2 million, up $8.2 million over the same period last year.

In early August 2008, the company ceased accepting waste at the Colebrook, NH landfill closure project, creating a negative $1.1 million EBITDA variance for the second quarter of fiscal year 2009 over the same period last year. Excluding the negative year-over-year impact of closing Colebrook, EBITDA for the quarter was up $0.6 million or 1.7 percent over the same quarter last year.

Six Months Financial Results

For the six months ended October 31, 2008, the company reported revenues of $315.4 million, up 5.5 percent over the same period last year. The company's net income per common share for the six month period was $0.17, compared to a net income per common share of $0.18 in the same period last year.

Operating income for the six month period was $31.6 million, up $1.9 million or 6.4 percent over the same period last year. Net cash provided by operating activities for the six month period was $39.2 million, up $3.9 million compared to the same period last year. EBITDA was $70.5 million for the six month period, up $0.8 million or 1.1% from the same period last year. The company's free cash flow for six months period was $4.4 million, up $5.5 million over the same period last year.

Fiscal 2009 Outlook

The company said that its solid waste group continues to maintain a stable level of performance, while the recycling group faces pressures from softer commodity pricing. As expected in late October, commodity pricing continued to weaken during November and the company forecasts average commodity pricing to be down approximately 55 percent from our first quarter of fiscal year 2009 through the remainder of our fiscal year. The updated fiscal year 2009 guidance reflects continued weakness in commodity pricing and softening of economic conditions through the remainder of the fiscal year.

The company has updated its guidance for fiscal year 2009 to the following ranges:

--  Revenues between $580.0 million and $600.0 million;
--  Free cash flow remaining constant at the original range of $8.0 million
to $14.0 million;
--  EBITDA between $120.0 million and $124.0 million; and
--  Capital expenditures between $65.0 million and $69.0 million.

*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 expenditures, payments on landfill operating lease contracts, and working capital requirements. For these reasons we utilize these non-GAAP metrics to measure our performance at all levels. Free cash flow and EBITDA are not intended to replace "Net Cash Provided by Operating Activities," which is the most comparable GAAP financial measure. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as capital expenditures, payments on landfill operating lease contracts, or working capital, 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, Inc., 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 Ned Coletta, director of investor relations at (802) 772-2239, or visit the Company's website at http://www.casella.com.

The Company will host a conference call to discuss these results on Thursday, December 4, 2008 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 675-4751 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems' website at http://www.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 719-457-0820 or 888-203-1112 (conference code #4859748), until 11:59 p.m. ET on Thursday, December 11, 2008.

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 the company "believes," "expects," "anticipates," "plans," "may," "will," "would," "intends," "estimates" 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 or expectations 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: we may be unable to reduce costs or increase revenues sufficiently to achieve estimated EBITDA and other targets; landfill operations and permit status may be affected by factors outside our control, continuing weakness in general economic conditions and in the commodities markets and poor weather conditions may affect our revenues; we may be required to incur capital expenditures in excess of our estimates; and fluctuations in the commodity pricing of our recyclables may make it more difficult for us to predict our results of operations or meet our estimates. 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, 2008. We do not necessarily intend 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
                  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,
                            2007         2008         2007         2008
                        -----------  -----------  -----------  -----------
Revenues                $   150,483  $   157,538  $   299,009  $   315,442
Operating expenses:
  Cost of operations         95,621      103,728      192,525      208,170
  General and
   administration            18,898       18,299       36,766       36,739
  Depreciation and
   amortization              20,136       19,505       40,044       38,975
                        -----------  -----------  -----------  -----------
                            134,655      141,532      269,335      283,884
                        -----------  -----------  -----------  -----------
Operating income             15,828       16,006       29,674       31,558
Other expense/(income),
 net:
  Interest expense, net
   (1)                       10,785       10,253       21,399       20,227
  Loss from equity
   method investments         1,487        1,045        3,638        2,173
  Other (income) expense         35          (64)      (2,360)        (152)
                        -----------  -----------  -----------  -----------
                             12,307       11,234       22,677       22,248
                        -----------  -----------  -----------  -----------
Income from continuing
 operations before
 income taxes
 and discontinued
 operations                   3,521        4,772        6,997        9,310
Provision (benefit) for
 income taxes                  (416)       2,706          714        5,023
                        -----------  -----------  -----------  -----------
Income from continuing
 operations before
 discontinued
 operations                   3,937        2,066        6,283        4,287
Discontinued Operations:
  Loss from discontinued
   operations, net of
   income taxes (2) (3)
   (4)                         (670)           -       (1,274)         (11)
  Loss on disposal of
   discontinued
   operations, net of
   income taxes (2) (4)        (437)           -         (437)         (34)
                        -----------  -----------  -----------  -----------
Net income available to
 common stockholders    $     2,830  $     2,066  $     4,572  $     4,242
                        ===========  ===========  ===========  ===========
Common stock and common
 stock equivalent
 shares outstanding,
 assuming full dilution      25,652       25,745       25,592       25,720
                        ===========  ===========  ===========  ===========
Net income per common
 share                  $      0.11  $      0.08  $      0.18  $      0.17
                        ===========  ===========  ===========  ===========
                        -----------  -----------  -----------  -----------
EBITDA (6)              $    35,964  $    35,511  $    69,718  $    70,533
                        ===========  ===========  ===========  ===========
               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                Unaudited
                              (In thousands)
                                                     April 30,  October 31,
                            ASSETS                      2008        2008
                                                    ----------- -----------
CURRENT ASSETS:
  Cash and cash equivalents                         $     2,814 $     3,110
  Restricted cash                                            95          96
  Accounts receivable - trade, net of allowance for
   doubtful accounts                                     62,233      66,222
  Other current assets                                   30,343      32,206
                                                    ----------- -----------
Total current assets                                     95,485     101,634
Property, plant and equipment, net of accumulated
 depreciation                                           488,028     501,263
Goodwill                                                179,716     179,930
Intangible assets, net                                    2,608       2,680
Restricted cash                                          13,563      13,602
Investments in unconsolidated entities                   44,617      41,832
Other non-current assets                                 12,070      15,515
                                                    ----------- -----------
Total assets                                        $   836,087 $   856,456
                                                    =========== ===========
           LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current maturities of long-term debt              $     2,758 $     2,002
  Accounts payable                                       51,731      47,340
  Other accrued liabilities                              58,335      47,512
                                                    ----------- -----------
Total current liabilities                               112,824      96,854
Long-term debt, less current maturities                 559,227     562,280
Financing lease obligations                                   -      11,674
Other long-term liabilities                              39,354      48,406
Stockholders' equity                                    124,682     137,242
                                                    ----------- -----------
Total liabilities and stockholders' equity          $   836,087 $   856,456
                                                    =========== ===========
               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                Unaudited
                              (In thousands)
                                                      Six Months Ended
                                                  ------------------------
                                                  October 31,  October 31,
                                                      2007         2008
                                                  -----------  -----------
Cash Flows from Operating Activities:
Net income                                        $     4,572  $     4,242
Loss from discontinued operations, net                  1,274           11
Loss on disposal of discontinued operations, net          437           34
Adjustments to reconcile net income
 to net cash provided by operating activities -
  Gain on sale of equipment                              (418)        (577)
  Depreciation and amortization                        40,045       38,975
  Depletion of landfill operating lease
   obligations                                          3,348        3,520
  Income from assets under contractual obligation      (1,367)        (114)
  Preferred stock dividend                              1,038            -
  Amortization of premium on senior notes                (307)        (331)
  Maine Energy settlement                              (2,142)           -
  Loss from equity method investments                   3,638        2,173
  Stock-based compensation                                505          954
  Excess tax benefit on the exercise of stock
   options                                                (16)        (157)
  Deferred income taxes                                   691        4,647
  Changes in assets and liabilities, net of
   effects of acquisitions and divestitures           (15,988)     (14,160)
                                                  -----------  -----------
                                                       29,027       34,930
                                                  -----------  -----------
    Net Cash Provided by Operating Activities          35,310       39,217
                                                  -----------  -----------
Cash Flows from Investing Activities:
  Acquisitions, net of cash acquired                      (93)        (458)
  Additions to property, plant and equipment
    - growth                                           (7,965)      (8,232)
    - maintenance                                     (35,025)     (29,964)
  Payments on landfill operating lease contracts       (2,413)      (1,825)
  Proceeds from divestitures                                -          670
  Other                                                 2,554       (1,501)
                                                  -----------  -----------
    Net Cash Used In Investing Activities             (42,942)     (41,310)
                                                  -----------  -----------
Cash Flows from Financing Activities:
  Proceeds from long-term borrowings                  221,605       60,000
  Principal payments on long-term debt               (149,468)     (59,104)
  Redemption of Series A redeemable, convertible
   preferred stock                                    (75,056)           -
  Proceeds from exercise of stock options                 286        1,289
  Excess tax benefit on the exercise of stock
   options                                                 16          157
                                                  -----------  -----------
    Net Cash Provided by (Used in) Financing
     Activities                                        (2,617)       2,342
                                                  -----------  -----------
Cash Provided by Discontinued Operations                   51           47
                                                  -----------  -----------
Net increase (decrease) in cash and cash
 equivalents                                          (10,198)         296
Cash and cash equivalents, beginning of period         12,366        2,814
                                                  -----------  -----------
Cash and cash equivalents, end of period          $     2,168  $     3,110
                                                  ===========  ===========
            CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               Unaudited
                             (In thousands)

Note 1: The Company's Series A redeemable, convertible preferred stock ("Series A preferred") contained a mandatory redemption provision effective August 11, 2007. As the Company did not anticipate that the Series A preferred would be converted to Class A Common Stock by the redemption date, the Company reflected the redemption value of the Series A preferred as a current liability. Consistent with this presentation, the Company recorded the Series A preferred dividend as interest expense in the three and six months ended October 31, 2007. The Series A preferred was redeemed effective August 11, 2007 at an aggregate redemption price of $75,057.

Note 2: The Company divested its Buffalo, N.Y. transfer station, hauling operation and related equipment during the quarter ended October 31, 2007. The transaction required discontinued operations treatment under SFAS No. 144, therefore the operating results of these operations have been reclassified from continuing to discontinued operations for the three and six months ended October 31, 2007. For the three and six months ended October 31, 2007, the Company recorded a loss from discontinued operations (net of tax) of ($273) and ($810), respectively. For the three and six months ended October 31, 2007, the Company recorded a loss on disposal of discontinued operations (net of tax) of ($437).

Note 3: The Company terminated its operation of MTS Environmental, a soils processing operation in the quarter ended April 30, 2008. The transaction required discontinued operations treatment under SFAS No. 144, therefore the operating results of this operation have been reclassified from continuing to discontinued operations for the three and six months ended October 31, 2007. For the three and six months ended October 31, 2007, the Company recorded a loss from discontinued operations (net of tax) of ($478) and ($650), respectively.

Note 4: The Company divested its FCR Greenville operation in the quarter ended July 31, 2008. The transaction required discontinued operations treatment under SFAS No. 144, therefore the operating results of this operation have been reclassified from continuing to discontinued operations for the three and six months ended October 31, 2007. For the three and six months ended October 31, 2007 and 2008, the Company recorded a gain /(loss) from discontinued operations (net of tax) of $81, $0, $186 and ($11), respectively. For the six months ended October 31, 2008, the Company recorded a loss on disposal of discontinued operations (net of tax) of ($34).

Note 5: Return on Net Assets, (RONA), is defined as twelve months of operating income (excluding all unusual or non-recurring items) divided by the average for the five quarter-ends, commencing on the day preceding such twelve-month period, of the sum of working capital (net of cash) plus the net book value of property, plant and equipment plus goodwill and net intangible assets.

Note 6: Non - GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose earnings before interest, taxes, depreciation and amortization, (EBITDA) and free cash flow, which are non-GAAP measures.

These measures are provided because we understand that certain investors use this information when analyzing the financial position of the solid waste industry, including us. Historically, these measures have been key in comparing operating efficiency of publicly traded companies within the industry, and assist investors in measuring our ability to meet capital expenditures, payments on landfill operating lease contracts and working capital requirements. For these reasons, we utilize these non-GAAP metrics to measure our performance at all levels. EBITDA and free cash flow are not intended to replace "Net cash provided by operating activities", which is the most comparable GAAP financial measure. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as working capital, payments on landfill operating lease contracts 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.

  Following is a reconciliation of EBITDA to Net Cash Provided by
  Operating Activities:
                                    Three Months Ended   Six Months Ended
                                    ------------------  ------------------
                                    October   October   October   October
                                      31,       31,       31,       31,
                                      2007      2008      2007      2008
                                    --------  --------  --------  --------
Net Cash Provided by Operating
 Activities                         $ 15,078  $ 19,430  $ 35,310  $ 39,217
Changes in assets and liabilities,
 net of effects of acquisitions
 and divestitures                     11,232     7,149    15,988    14,160
Deferred income taxes                    165    (2,212)     (691)   (4,647)
Stock-based compensation                (289)     (565)     (505)     (954)
Excess tax benefit on the exercise
 of stock options                         16       126        16       157
Provision (benefit) for income
 taxes                                  (416)    2,706       714     5,023
Interest expense, net                 10,785    10,253    21,399    20,227
Preferred stock dividend                (113)        -    (1,038)        -
Amortization of premium on senior
 notes                                   156       167       307       331
Depletion of landfill operating
 lease obligations                    (1,491)   (1,797)   (3,348)   (3,520)
Income from assets under
 contractual obligation                  629        25     1,367       114
Gain on sale of equipment                177       293       418       577
Other (income) expense, net               35       (64)     (219)     (152)
                                    --------  --------  --------  --------
EBITDA                              $ 35,964  $ 35,511  $ 69,718  $ 70,533
                                    ========  ========  ========  ========
               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                                Unaudited
                              (In thousands)
  Following is a reconciliation of Free Cash Flow to Net Cash Provided by
  Operating Activities:
                                    Three Months Ended   Six Months Ended
                                    ------------------  ------------------
                                    October   October   October   October
                                      31,       31,       31,       31,
                                      2007      2008      2007      2008
                                    --------  --------  --------  --------
EBITDA                              $ 35,964  $ 35,511  $ 69,718  $ 70,533
Add (deduct):
  Cash interest                      (14,471)  (14,618)  (19,154)  (20,463)
  Capital expenditures               (20,642)  (15,767)  (42,990)  (38,196)
  Cash taxes                          (1,459)      (13)   (1,770)     (258)
  Depletion of landfill operating
   lease obligations                   1,491     1,797     3,348     3,520
  Change in working capital,
   adjusted for non-cash items        (2,886)     (743)  (10,303)  (10,778)
                                    --------  --------  --------  --------
FREE CASH FLOW                        (2,003)    6,167    (1,151)    4,358
Add (deduct):
  Capital expenditures                20,642    15,767    42,990    38,196
  Other                               (3,561)   (2,504)   (6,529)   (3,337)
                                    --------  --------  --------  --------
Net Cash Provided by Operating
 Activities                         $ 15,078  $ 19,430  $ 35,310  $ 39,217
                                    ========  ========  ========  ========
               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   Six Months Ended
                                        October 31,         October 31,
                                    ------------------- -------------------
                                      2007      2008      2007      2008
                                    --------- --------- --------- ---------
Collection                          $  69,178 $  70,094 $ 138,331 $ 141,422
Landfill / disposal facilities         28,966    30,866    58,169    59,909
Transfer                                7,691     8,717    15,038    17,920
Recycling                              44,648    47,861    87,471    96,191
                                    --------- --------- --------- ---------
Total revenues                      $ 150,483 $ 157,538 $ 299,009 $ 315,442
                                    ========= ========= ========= =========
Components of revenue growth for the three months ended October 31, 2008
compared to the three months ended October 31, 2007:
                                                                Percentage
                                                                ----------
Solid Waste Operations (1)  Price                                      3.4%
                            Volume                                    -2.2%
                            Commodity price and volume                 0.2%
                                                                ----------
Total growth - Solid Waste Operations                                  1.4%
                                                                ==========
FCR  Operations (1)         Price                                     13.0%
                            Volume                                     1.2%
                                                                ----------
Total growth - FCR Operations                                         14.2%
                                                                ==========
Rollover effect of acquisitions (2)                                    0.7%
Total revenue growth (2)                                               4.7%
(1) - Calculated as a percentage of segment revenues.
(2) - Calculated as a percentage of total revenues.
Solid Waste Internalization Rates by Region:
                                    Three Months Ended   Six Months Ended
                                        October 31,         October 31,
                                    ------------------  ------------------
                                    2007 (1)    2008    2007 (1)    2008
                                    --------  --------  --------  --------
North Eastern region                    61.6%     66.6%     59.0%     65.4%
South Eastern region                    33.6%     34.2%     29.9%     34.4%
Central region                          82.8%     79.5%     79.0%     77.7%
Western region                          60.0%     66.3%     60.5%     65.6%
Solid Waste internalization             62.8%     65.1%     60.5%     63.9%
(1)  Internalization rates for the three and six months ended October
     31, 2007 have been revised to exclude the activity associated with MTS
     Environmental.  The Company terminated operations at MTS Environmental
     during the quarter ended April 30, 2008. The South Eastern region
     prior year amounts have also been revised.
               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                         SUPPLEMENTAL DATA TABLES
                                (Unaudited)
                              (In thousands)
US GreenFiber Financial Statistics (as reported):
                          Three Months Ended   Six Months Ended
                              October 31,         October 31,
                          ------------------  ------------------
                            2007      2008      2007      2008
                          --------  --------  --------  --------
Revenues                  $ 41,995  $ 35,496  $ 75,494  $ 65,729
Net loss                    (1,816)   (2,090)   (5,409)   (4,347)
Cash flow from
 operations                  3,580    (1,472)    3,580    (4,150)
Net working capital
 changes                     2,481    (2,345)    3,231    (5,698)
EBITDA                    $  1,099  $    873  $    349  $  1,548
As a percentage of
 revenue:
Net loss                      -4.3%     -5.9%     -7.2%     -6.6%
EBITDA                         2.6%      2.5%      0.5%      2.4%
Components of Growth versus Maintenance Capital Expenditures (1):
                          Three Months Ended   Six Months Ended
                              October 31,         October 31,
                          ------------------  ------------------
                            2007      2008      2007      2008
                          --------  --------  --------  --------
Growth Capital
 Expenditures:
   Landfill Development   $      -  $  2,823  $  5,123  $  6,642
   MRF Equipment Upgrades      194         -       329       455
   Other                     1,141       685     2,513     1,135
                          --------  --------  --------  --------
Total Growth Capital
 Expenditures                1,335     3,508     7,965     8,232
Maintenance Capital
 Expenditures:
   Vehicles, Machinery /
    Equipment and
    Containers               3,484     3,750     8,151     9,057
   Landfill Construction
    & Equipment             11,366     6,753    20,722    18,206
   Facilities                3,940       900     5,253     1,654
   Other                       517       856       899     1,047
                          --------  --------  --------  --------
Total Maintenance Capital
 Expenditures               19,307    12,259    35,025    29,964
                          --------  --------  --------  --------
                          --------  --------  --------  --------
Total Capital
 Expenditures             $ 20,642  $ 15,767  $ 42,990  $ 38,196
                          ========  ========  ========  =========
(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.

Contact:
Ned Coletta
(802) 772-2239


SOURCE: Casella Waste Systems, Inc.



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