Casella Waste Systems, Inc. Announces Second Quarter Fiscal Year 2012 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 2012 Results

November 30, 2011

RUTLAND, VT -- (MARKET WIRE) -- 11/30/11 -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional vertically-integrated solid waste, recycling and resource management services company, today reported financial results for its second quarter fiscal year 2012, and provided updated guidance for its 2012 fiscal year.

Highlights for the quarter included:

  • Revenue growth of 5.7 percent over the same quarter last year.
  • Overall solid waste pricing growth of 1.6 percent was primarily driven by strong collection pricing growth of 3.4 percent as a percentage of collection revenues.
  • Adjusted EBITDA* was $30.5 million for the quarter, down $0.3 million from same quarter last year.
  • Free cash flow* was $6.0 million for the quarter and $3.4 million year-to-date.
  • Company reaffirms Revenue, Adjusted EBITDA and Free Cash Flow guidance ranges for fiscal year 2012.

For the quarter ended October 31, 2011, revenues were $129.9 million, up $7.0 million or 5.7 percent from the same quarter last year. Operating income was $11.6 million for the quarter, down $0.7 million from the same quarter last year. Excluding the non-recurring $0.4 million legal settlement charge and the $0.1 million development project charge in the current quarter, operating income was down $0.2 million from the same quarter last year.

The company's net loss attributable to common shareholders was ($0.8) million, or ($0.03) per common share for the quarter, compared to a net loss of ($1.2) million, or ($0.04) per share for the same quarter last year.

"We continued to make great progress during the second quarter improving the fundamentals of our core business," said John W. Casella, chairman and CEO of Casella Waste Systems. "Collection price was up 3.4 percent from the same quarter last year, a big improvement from the muted pricing we realized last year. The strong pricing is a reflection of the hard work by our divisional teams to move pricing from an annual event to a core process, their efforts to intelligently manage yield in their markets through the use of the customer profitability analytics, and our constant drive to create value for our customers through resource solutions."

"We are also driving increased collection volumes through our ability to differentiate our service offerings with resource solutions, such as Zero-Sort® Recycling, and our heightened focus on customer care," Casella said. "In spite of the stagnant economic environment, MSW and C&D landfill volumes were up for the quarter, while historically lumpy special waste volumes were down this quarter at most of our sites."

"In late August and early September, the Northeast was hit with two major storms, Irene and Lee, that destroyed local roads and bridges and devastated hundreds of homes and businesses," Casella said. "Our people were prepared for the storms, and with their foresight we avoided major damage to our facilities and equipment. In fact, we were able to get our customer care center operational and our trucks running the day after the storms to meet the needs of our customers and our communities. As a result of the storm clean-up, we realized higher roll-off pulls and landfill volumes at several sites; however much of this benefit was offset by increased operating costs due to the storms."

Fiscal 2012 Outlook

The company reaffirmed its fiscal year guidance in the following categories:

  • Revenues between $475.0 million and $487.0 million.
  • Adjusted EBITDA* between $105.0 million and $110.0 million.
  • Free Cash Flow* between $2.0 million and $7.0 million.

*Non-GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles in the United States (GAAP), the company also discloses earnings before interest, taxes, depreciation and amortization, adjusted for accretion, depletion of landfill operating lease obligations, gain on sale of assets, development project charge write-off, as well as legal settlement charge (Adjusted EBITDA) which is a non-GAAP measure. The company also discloses Free Cash Flow, which is defined as net cash provided by operating activities, less capital expenditures, less payments on landfill operating leases, less assets acquired through financing leases, plus proceeds from the sales of assets and property and equipment, which is a non-GAAP measure. Adjusted EBITDA is reconciled to net income (loss), while Free Cash Flow is reconciled to Net Cash Provided by Operating Activities.

The company presents Adjusted EBITDA 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 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 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 or Free Cash Flow presented by other companies.

About Casella Waste Systems, Inc.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States. For further information, contact Ned Coletta, vice president of finance and investor relations at (802) 772-2239, or Ed Johnson, chief financial officer at (802) 772-2241, or visit the company's website at http://www.casella.com.

Conference call to discuss quarter

The Company will host a conference call to discuss these results on Thursday, December 1, 2011 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-9590 or (720) 545-0037 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems' website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the company's website, or by calling (855) 859-2056 or (404) 537-3406 (Conference ID 22675023) until 11:59 p.m. ET on Thursday, December 8, 2011.

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 the commodity pricing of our recyclables may make it more difficult for us to predict our results of operations or meet our estimates; and we may incur environmental charges or asset impairments in the future. 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, 2011.

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

                  (In thousands, except amounts per share)



                            Three Months Ended         Six Months Ended

                         ------------------------  ------------------------

                         October 31,  October 31,  October 31,  October 31,

                             2011         2010         2011         2010

                         -----------  -----------  -----------  -----------



Revenues                 $   129,866  $   122,895  $   257,059  $   244,887



Operating expenses:

  Cost of operations          86,627       79,313      171,851      160,652

  General and

   administration             16,062       15,696       32,268       31,613

  Depreciation and

   amortization               15,061       15,620       29,567       31,203

  Legal settlement               359            -        1,359            -

  Development project

   charge                        131            -          131            -

  Gain on sale of assets           -            -            -       (3,502)

                         -----------  -----------  -----------  -----------

                             118,240      110,629      235,176      219,966

                         -----------  -----------  -----------  -----------



Operating income              11,626       12,266       21,883       24,921



Other expense/(income),

 net:

  Interest expense, net       11,207       11,619       22,357       23,384

  Loss from equity

   method investments          1,523          506        3,781        2,638

  Other income                  (327)        (317)        (432)        (412)

                         -----------  -----------  -----------  -----------

                              12,403       11,808       25,706       25,610

                         -----------  -----------  -----------  -----------



(Loss) income from

 continuing operations

 before income taxes and

 discontinued operations        (777)         458       (3,823)        (689)

Provision for income

 taxes                            67          281          728        1,060

                         -----------  -----------  -----------  -----------



(Loss) income from

 continuing operations

 before discontinued

 operations                     (844)         177       (4,551)      (1,749)



Discontinued operations:

  Loss from discontinued

   operations, net of

   income taxes (1)                -         (767)           -       (1,692)

  Gain (loss) on

   disposal of

   discontinued

   operations, net of

   income taxes (1)               79         (564)         725         (615)

                         -----------  -----------  -----------  -----------



Net loss attributable to

 common stockholders     $      (765) $    (1,154) $    (3,826) $    (4,056)

                         ===========  ===========  ===========  ===========



Common stock and common

 stock equivalent shares

 outstanding, assuming

 full dilution                26,759       26,788       26,661       25,981

                         ===========  ===========  ===========  ===========



Net loss per common

 share attributable to

 common stockholders     $     (0.03) $     (0.04) $     (0.14) $     (0.16)

                         ===========  ===========  ===========  ===========



Adjusted EBITDA (2)      $    30,532  $    30,804  $    59,194  $    58,577

                         ===========  ===========  ===========  ===========






                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)



                                               October 31,      April 30,

                   ASSETS                          2011            2011

                                             --------------- ---------------



CURRENT ASSETS:

  Cash and cash equivalents                  $         4,421 $         1,817

  Restricted cash                                         76              76

  Accounts receivable - trade, net of

   allowance for doubtful accounts                    56,984          54,914

  Other current assets                                14,989          15,598

                                             --------------- ---------------

Total current assets                                  76,470          72,405



Property, plant and equipment, net of

 accumulated depreciation                            461,359         453,361

Goodwill                                             101,329         101,204

Intangible assets, net                                 2,468           2,455

Restricted assets                                        403             334

Notes receivable - related party/employee                720           1,297

Investments in unconsolidated entities                34,906          38,263

Other non-current assets                              20,285          21,262

                                             --------------- ---------------



Total assets                                 $       697,940 $       690,581

                                             =============== ===============



    LIABILITIES AND STOCKHOLDERS' EQUITY



CURRENT LIABILITIES:

  Current maturities of long-term debt and

   capital leases                            $         1,297 $         1,217

  Current maturities of financing lease

   obligations                                           327             316

  Accounts payable                                    51,758          42,499

  Other accrued liabilities                           41,047          39,889

                                             --------------- ---------------

Total current liabilities                             94,429          83,921



Long-term debt and capital leases, less

 current maturities                                  461,915         461,418

Financing lease obligations, less current

 maturities                                            1,989           2,156

Other long-term liabilities                           47,012          49,099



  Total Casella Waste Systems, Inc. and

   Subsidiaries stockholders' equity                  91,325          93,987

  Noncontrolling interest                              1,270               -

                                             --------------- ---------------

Total stockholders' equity                            92,595          93,987



Total liabilities and stockholders' equity   $       697,940 $       690,581

                                             =============== ===============




                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                               (In thousands)

                                                   Six Months Ended

                                           --------------------------------

                                             October 31,      October 31,

                                                 2011             2010

                                           ---------------  ---------------

Cash Flows from Operating Activities:

Net loss attributable to common

 stockholders                              $        (3,826) $        (4,056)

Loss from discontinued operations, net of

 income taxes                                            -            1,692

(Gain) loss on disposal of discontinued

 operations, net of income taxes                      (725)             615

Adjustments to reconcile net loss to net

 cash

provided by operating activities -

  Gain on sale of assets                                 -           (3,502)

  Gain on sale of property and equipment              (754)            (302)

  Depreciation and amortization                     29,567           31,203

  Depletion of landfill operating lease

   obligations                                       4,514            4,299

  Interest accretion on landfill and

   environmental remediation liabilities             1,740            1,656

  Development project charge                           131                -

  Amortization of premium on senior

   subordinated notes                                    -             (386)

  Amortization of discount on term loan

   and second lien notes                               467              450

  Loss from equity method investments                3,781            2,638

  Stock-based compensation                           1,366            1,347

  Excess tax benefit on the vesting of

   share based awards                                 (219)            (117)

  Deferred income taxes                              1,008            1,185

  Changes in assets and liabilities, net

   of effects of acquisitions and

   divestitures                                      4,428           (2,566)

                                           ---------------  ---------------

                                                    46,029           35,905

                                           ---------------  ---------------

    Net Cash Provided by Operating

     Activities                                     41,478           34,156

                                           ---------------  ---------------

Cash Flows from Investing Activities:

  Acquisitions, net of cash acquired                  (715)               -

  Additions to property, plant and

   equipment - growth                               (6,410)            (990)

                - maintenance                      (29,560)         (29,779)

  Payments on landfill operating lease

   contracts                                        (3,314)          (2,250)

  Proceeds from sale of assets                           -            7,533

  Proceeds from sale of property and

   equipment                                         1,170              555

  Investments in unconsolidated entities              (935)               -

                                           ---------------  ---------------

    Net Cash Used In Investing Activities          (39,764)         (24,931)

                                           ---------------  ---------------

Cash Flows from Financing Activities:

  Proceeds from long-term borrowings                82,100           76,900

  Principal payments on long-term debt             (82,146)         (83,966)

  Payments of financing costs                         (184)            (357)

  Proceeds from exercise of share based

   awards                                              176              160

  Excess tax benefit on the vesting of

   share based awards                                  219              117

                                           ---------------  ---------------

    Net Cash Provided By (Used In)

     Financing Activities                              165           (7,146)

                                           ---------------  ---------------

Cash Provided By (Used In) Discontinued

 Operations                                            725              (70)

                                           ---------------  ---------------

Net increase in cash and cash equivalents            2,604            2,009

Cash and cash equivalents, beginning of

 period                                              1,817            2,035

                                           ---------------  ---------------

Cash and cash equivalents, end of period   $         4,421  $         4,044

                                           ===============  ===============



Supplemental Disclosures:

Cash interest                              $        20,531  $        21,344

Cash income taxes, net of refunds          $         5,281  $           117






                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                               (In thousands)



Note 1: 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 (loss) 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 (loss) 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.

During the third quarter of fiscal year 2011, we also completed the sale of the assets of the Trilogy Glass business for cash proceeds of $1,840.

The operating results of these operations, which relate only to prior fiscal year periods, have been reclassified from continuing to discontinued operations in the accompanying unaudited condensed consolidated financial statements. Revenues and loss before income tax provision attributable to discontinued operations for the three and six months ended October 31, 2010 were $18,114, ($767), $35,693, and ($1,692), respectively.

We allocate interest expense to discontinued operations. We have also eliminated certain immaterial inter-company activity associated with discontinued operations.

Note 2: 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, adjusted for accretion, depletion of landfill operating lease obligations, gain on sale of assets, development project charge write-off, as well as legal settlement charges (Adjusted EBITDA) 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, less payments on landfill operating leases, less assets acquired through financing leases, plus proceeds from the sale of assets and property and equipment, which is a non-GAAP measure. Adjusted EBITDA is reconciled to net income (loss), while Free Cash Flow is reconciled to Net Cash Provided by Operating Activities.

We present Adjusted EBITDA 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. Management uses 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 and Free Cash Flow to investors, in addition to corresponding income statement and cash flow statement measures, provides investors the benefit of viewing our 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. 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 in the U.S. Adjusted EBITDA and Free Cash Flow should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP in the U.S., and may be different from Adjusted EBITDA or Free Cash Flow presented by other companies.




Following is a reconciliation of Adjusted EBITDA to Net Loss Attributable

 to Common Stockholders:



                            Three Months Ended         Six Months Ended

                         ------------------------  ------------------------

                         October 31,  October 31,  October 31,  October 31,

                             2011         2010         2011         2010

                         -----------  -----------  -----------  -----------





Net Loss Attributable to

 Common Stockholders     $      (765) $    (1,154) $    (3,826) $    (4,056)

 Loss from discontinued

  operations, net of

  income taxes                     -          767            -        1,692

 (Gain) loss on disposal

  of discontinued

  operations, net of

  income taxes                   (79)         564         (725)         615

 Provision for income

  taxes                           67          281          728        1,060

 Interest expense, net        11,207       11,619       22,357       23,384

 Depreciation and

  amortization                15,061       15,620       29,567       31,203

 Other expense, net            1,196          189        3,349        2,226

 Legal settlement                359            -        1,359            -

 Development project

  charge                         131            -          131            -

 Gain on sale of assets            -            -            -       (3,502)

 Depletion of landfill

  operating lease

  obligations                  2,484        2,107        4,514        4,299

 Interest accretion on

  landfill and

  environmental

  remediation

  liabilities                    871          811        1,740        1,656

                         -----------  -----------  -----------  -----------

Adjusted EBITDA (2)      $    30,532  $    30,804  $    59,194  $    58,577

                         ===========  ===========  ===========  ===========




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,

                             2011         2010         2011         2010

                         -----------  -----------  -----------  -----------

Net Cash Provided by

 Operating Activities    $    27,538  $    22,793  $    41,478  $    34,156

Capital expenditures         (21,102)     (15,902)     (35,970)     (30,769)

Payments on landfill

 operating lease

 contracts                    (1,456)      (1,461)      (3,314)      (2,250)

Proceeds from sale of

 assets and property and

 equipment                       971          247        1,170        8,088

                         -----------  -----------  -----------  -----------

Free Cash Flow (2)       $     5,951  $     5,677  $     3,364  $     9,225

                         ===========  ===========  ===========  ===========




                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, 2011 and 2010 are as follows:



                                     Three Months Ended October 31,

                            -----------------------------------------------

                                        % of Total               % of Total

                                2011      Revenue        2010      Revenue

                            ----------- ----------   ----------- ----------

Collection                  $    54,764       42.2%  $    52,058       42.4%

Disposal                         31,104       24.0%       31,075       25.3%

Power generation                  6,340        4.9%        6,273        5.1%

Processing and organics          13,992       10.8%       12,972       10.6%

                            ----------- ----------   ----------- ----------

 Solid waste operations         106,200       81.9%      102,378       83.4%

Major accounts                    9,847        7.5%       10,140        8.2%

Recycling                        13,819       10.6%       10,377        8.4%

                            ----------- ----------   ----------- ----------

Total revenues              $   129,866      100.0%  $   122,895      100.0%

                            =========== ==========   =========== ==========



                                      Six Months Ended October 31,

                            -----------------------------------------------

                                        % of Total               % of Total

                                   2011   Revenue           2010   Revenue

                            ----------- ----------   ----------- ----------

Collection                  $   108,390       42.2%  $   104,560       42.7%

Disposal                         60,422       23.5%       60,630       24.8%

Power generation                 12,237        4.8%       11,986        4.9%

Processing and organics          28,730       11.2%       26,220       10.7%

                            ----------- ----------   ----------- ----------

 Solid waste operations         209,779       81.7%      203,396       83.1%

Major accounts                   20,557        7.9%       20,540        8.3%

Recycling                        26,723       10.4%       20,951        8.6%

                            ----------- ----------   ----------- ----------

Total revenues              $   257,059      100.0%  $   244,887      100.0%

                            =========== ==========   =========== ==========






Components of revenue growth for the three months ended October 31, 2011

 compared to the three months ended October 31, 2010 are as follows:



                                            % of     % of Solid

                                           Related      Waste    % of Total

                               Amount     Business   Operations    Company

                            -----------  ----------  ----------  ----------

Solid Waste Operations:

Collection                  $     1,783         3.4%        1.7%        1.5%

Disposal                           (240)       -0.8%       -0.2%       -0.2%

Power operations                    102         1.6%        0.1%        0.1%

Processing and organics               -         0.0%        0.0%        0.0%

                            -----------              ----------  ----------

Solid Waste Yield                 1,645                     1.6%        1.4%



Volume                             (211)                   -0.2%       -0.2%

Commodity price & volume          1,063                     1.0%        0.9%

Acquisitions & divestitures       1,329                     1.3%        1.1%

Closed landfill                      (4)                    0.0%        0.0%

                            -----------              ----------  ----------

Total Solid Waste                 3,822                     3.7%        3.2%

                            -----------              ==========  ==========



Major Accounts                     (293)                               -0.2%

                            -----------                          ----------



Recycling Operations:                                   % of

                                                      Recycling

                                                     Operations

                                                     ----------

Commodity price                   3,749                    36.1%        3.1%

Commodity volume                   (307)                   -2.9%       -0.2%

                            -----------              ----------  ----------

Total Recycling                   3,442                    33.2%        2.9%

                            -----------              ==========  ==========



Total Company               $     6,971                                 5.7%

                            ===========                          ==========




Solid Waste Internalization Rates by Region:



                                  Three Months Ended     Six Months Ended

                                      October 31,           October 31,

                                 --------------------  --------------------

                                    2011       2010       2011       2010

                                 ---------  ---------  ---------  ---------

Eastern region                        59.7%      54.9%      56.9%      52.8%

Western region                        77.0%      75.1%      76.6%      75.7%

Solid waste internalization           68.9%      66.1%      67.3%      65.1%






                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                          SUPPLEMENTAL DATA TABLES

                                (Unaudited)

                               (In thousands)



GreenFiber Financial Statistics - as reported (1):



                               Three Months Ended       Six Months Ended

                                   October 31,             October 31,

                             ----------------------  ----------------------

                                2011        2010        2011        2010

                             ----------  ----------  ----------  ----------

Revenues                     $   21,841  $   20,581  $   37,856  $   38,018

Net loss                         (3,049)     (1,012)     (7,564)     (5,276)

Cash flow used in operations       (949)     (3,414)     (2,258)     (3,038)

Net working capital changes        (149)     (4,856)        726      (2,692)

Adjusted EBITDA              $     (800) $    1,442  $   (2,984) $     (346)



As a percentage of revenues:



Net loss                          -14.0%       -4.9%      -20.0%      -13.9%

Adjusted EBITDA                    -3.7%        7.0%       -7.9%       -0.9%



(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,

                                 --------------------- ---------------------

                                    2011       2010       2011       2010

                                 ---------- ---------- ---------- ----------

Growth capital expenditures:

 Landfill development            $      203 $        - $      244 $      227

 Landfill gas to energy project         792          -      1,159          -

 MRF equipment upgrades               2,498          -      3,007          -

 Other                                1,774        108      2,000        763

                                 ---------- ---------- ---------- ----------

Total Growth Capital

 Expenditures                         5,267        108      6,410        990

                                 ---------- ---------- ---------- ----------



Maintenance capital

 expenditures:

 Vehicles, machinery / equipment

  and containers                 $    3,901 $    3,930 $   10,341 $   10,332

 Landfill construction &

  equipment                           9,907     10,778     16,904     17,830

 Facilities                           1,815        976      1,990      1,148

 Other                                  212        110        325        469

                                 ---------- ---------- ---------- ----------

Total Maintenance Capital

 Expenditures                        15,835     15,794     29,560     29,779

                                 ---------- ---------- ---------- ----------



Total Capital Expenditures       $   21,102 $   15,902 $   35,970 $   30,769

                                 ========== ========== ========== ==========



(1) Our 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, 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 new

business 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.


Contact Information

Ned Coletta

Vice President of Finance and Investor Relations

(802) 772-2239



Ed Johnson

Chief Financial Officer

(802) 772-2241



http://www.casella.com



Source: Casella Waste Systems, Inc.

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