Casella Waste Systems, Inc. Announces Third Quarter Fiscal Year 2011 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 Third Quarter Fiscal Year 2011 Results

March 1, 2011

RUTLAND, VT -- (MARKET WIRE) -- 03/01/11 -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported financial results for its third quarter fiscal year 2011. For the quarter ended January 31, 2011, revenues were $111.6 million, up $1.7 million or 1.6 percent over the same quarter last year, driven mainly by solid waste volume growth and higher commodity prices. Operating income was $6.3 million for the quarter, down $1.1 million from the same quarter last year. The company's net loss applicable to common shareholders was ($6.4) million, or ($0.24) per common share for the quarter, compared to ($4.4) million, or ($0.17) per share for the same quarter last year. Adjusted EBITDA* for the quarter was $22.4 million, down $1.6 million from same quarter last year.

"While our third quarter results were below last year's performance and our plan, the underperformance was mainly driven by adverse weather and non-recurring events," said John W. Casella, chairman and CEO of Casella Waste Systems. "The bad winter weather during the quarter impacted operational performance, with lower than projected productivity throughout the solid waste business and lower waste volumes. Our landfill volumes were lower year-over-year by 4.4 percent, with the negative variance attributable to reaching annual permit limits at several key sites in early December and lower volumes in January due to the bad weather."

"As expected in the quarter, the lower energy prices at Maine Energy, the final closure of the Pine Tree landfill in Q3 fiscal year 2010, and the sale of the Cape Cod assets in Q1 fiscal year 2011 led to a negative $0.6 million year-over-year Adjusted EBITDA variance," Casella said. "Excluding these explainable negative impacts and divestiture transaction costs in the quarter that were not allocated to discontinued operations, Adjusted EBITDA was down $0.8 million year-over-year."

"Since last quarter our team has done an excellent job completing important long-term strategic goals aimed at improving our balance sheet today and better positioning us for the future," Casella said. "These strategic accomplishments include:

  • "We successfully divested our non-integrated recycling facilities for $134.1 million, with net proceeds of approximately $120.0 million used to permanently pay-off our Term Loan B.
  • "We refinanced our $195.0 million 9.75% Senior Subordinated Notes due 2013 with new $200.0 million 7.75% Senior Subordinated Notes due 2019, yielding significant interest savings.
  • "We acquired a municipal solid waste landfill in McKean County, PA out of bankruptcy proceedings for $0.5 million in cash and the assumption of certain contractual obligations."
Nine Months Financial Results

For the nine months ended January 31, 2011, revenues were $356.5 million, up $11.6 million or 3.4 percent over the same period last year. Operating income was $31.2 million for the nine month period, up $6.1 million from the same period last year, including a $3.5 million gain on sale of assets. The company's net loss applicable to common shareholders was ($10.4) million, or ($0.40) per common share for the nine month period, compared to ($8.7) million, or ($0.34) per share for the same period last year. Adjusted EBITDA was $84.5 million for the nine month period, up $2.4 million from same period last year. While the actual completion of the divestiture of the non-integrated recycling assets occurred during the fourth quarter on March 1, 2011, the third quarter and nine month year to date results reflect discontinued operations treatment for these assets in accordance with GAAP.

Fiscal 2011 Outlook

The following ranges reflect updated guidance for fiscal year 2011, including discontinued operations treatment for the divestiture of the non- integrated recycling facilities in the fourth quarter.

  • Revenues between $460.0 million and $468.0 million;
  • Adjusted EBITDA* between $102.0 million and $106.0 million; and
  • Capital expenditures between $51.0 million and $55.0 million.

In recognition of the value created through the successful divestiture of the non-integrated recycling assets and the steps taken to recapitalize our balance sheet at lower interest rates, the board approved a $3.5 million discretionary bonus to management, which is reflected in the above guidance. Management will not receive a cash incentive bonus in addition to this discretionary bonus for this fiscal year. Since bonuses were not accrued for during the 9 months year-to-date period, the discretionary bonus will be fully expensed in the fourth quarter. We plan to announce fiscal year 2012 guidance on our year end conference call in June.

*Non-GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), the company also discloses earnings before interest, taxes, depreciation and amortization, adjusted for accretion, depletion of landfill operating lease obligations, severance and reorganization charges, a goodwill impairment charge, an environmental remediation charge as well as development project charges (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 sales of 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, generally accepted accounting principles 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 generally accepted accounting principles in the U.S., 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 third quarter

Casella will host a conference call to discuss these results on Wednesday, March 2, 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 website, or by calling (800) 642-1687 or (706) 645-9291 (passcode 44979174) until 11:59 p.m. ET on Thursday, March 10, 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 revenues 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, 2010.

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      Nine Months Ended

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

                            January 31, January 31, January 31, January 31,

                               2011        2010        2011        2010

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



Revenues                    $  111,627  $  109,884  $  356,515  $  344,947



Operating expenses:

 Cost of operations             76,933      73,724     237,584     226,986

 General and administration     14,832      14,900      46,446      43,554

 Depreciation and

  amortization                  13,573      13,850      44,776      49,327

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

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

                               105,338     102,474     325,304     319,867

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



Operating income                 6,289       7,410      31,211      25,080



Other expense/(income), net:

 Interest expense, net          12,174      12,520      36,603      33,657

 (Gain) loss from equity

  method investment               (102)        (73)      2,536       1,305

 Loss on debt modification         115           -         115         511

 Other income                      (78)       (195)       (490)       (487)

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

                                12,109      12,252      38,764      34,986

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



Loss from continuing

 operations before income

 taxes and discontinued

 operations                     (5,820)     (4,842)     (7,553)     (9,906)

Provision for income taxes       1,079         572       2,139         941

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



Loss from continuing

 operations before

 discontinued operations        (6,899)     (5,414)     (9,692)    (10,847)



Discontinued Operations:

 Income from discontinued

  operations, net of income

  taxes (1)                      1,902         799       1,255       1,814

 (Loss) income on disposal

  of discontinued

  operations, net of income

  taxes (1)                     (1,368)        239      (1,984)        328

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



Net loss applicable to

 common stockholders        $   (6,365) $   (4,376) $  (10,421) $   (8,705)

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



Common stock and common

 stock equivalent shares

 outstanding, assuming

 full dilution                  26,115      25,748      26,026      25,705

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



Net loss per common share   $    (0.24) $    (0.17) $    (0.40) $    (0.34)

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



Adjusted EBITDA (2)         $   22,408  $   24,040  $   84,487  $   82,089

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











               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                (Unaudited)

                              (In thousands)





                                                      January 31, April 30,

                        ASSETS                            2011       2010

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



CURRENT ASSETS:

  Cash and cash equivalents                           $     5,531 $   2,035

  Restricted cash                                              76        76

  Accounts receivable - trade, net of allowance for

   doubtful accounts                                       47,603    51,370

  Other current assets                                     29,998    28,583

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

Total current assets                                       83,208    82,064



Property, plant and equipment, net of accumulated

 depreciation                                             455,265   457,670

Goodwill                                                  100,430   100,430

Intangible assets, net                                      2,221     2,404

Restricted assets                                             317       228

Investments in unconsolidated entities                     39,228    40,965

Other non-current assets                                   64,490    71,053

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



Total assets                                          $   745,159 $ 754,814

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



         LIABILITIES AND STOCKHOLDERS' EQUITY



CURRENT LIABILITIES:

  Current maturities of long-term debt and capital

   leases                                             $     2,411 $   1,929

  Current maturities of financing lease obligations           311     1,045

  Accounts payable                                         34,859    35,056

  Other accrued liabilities                                49,263    52,050

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

Total current liabilities                                  86,844    90,080



Long-term debt and capital leases, less current

 maturities                                               562,998   556,130

Financing lease obligations, less current maturities        2,236     7,902

Other long-term liabilities                                49,665    50,406



Stockholders' equity                                       43,416    50,296

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



Total liabilities and stockholders' equity            $   745,159 $ 754,814

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









               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                (Unaudited)

                              (In thousands)



                                                      Nine Months Ended

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

                                                    January 31, January 31,

                                                       2011        2010

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

 Cash Flows from Operating Activities:

 Net loss                                           $  (10,421) $   (8,705)

 (Income) from discontinued operations, net             (1,255)     (1,814)

 Loss (income) on disposal of discontinued

  operations, net                                        1,984        (328)

 Adjustments to reconcile net loss to net cash

  provided by operating activities -

  Gain on sale of assets                                (3,502)          -

  Gain on sale of equipment                               (399)     (1,099)

  Depreciation and amortization                         44,776      49,327

  Depletion of landfill operating lease obligations      6,013       4,936

  Interest accretion on landfill and environmental

   remediation liabilities                               2,487       2,668

  Amortization of premium on senior notes                 (584)       (540)

  Amortization of discount on term loan and second

   lien notes                                            1,650       1,141

  Loss from equity method investments                    2,536       1,305

  Loss on debt modification                                115         511

  Stock-based compensation                               2,052       1,598

  Excess tax benefit on the vesting of stock

   options                                                (122)          -

  Deferred income taxes                                  1,827       2,016

  Changes in assets and liabilities, net of

   effects of acquisitions and divestitures             (1,903)     (7,314)

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

                                                        54,946      54,549

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

   Net Cash Provided by Operating Activities            45,254      43,702

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

 Cash Flows from Investing Activities:

  Additions to property, plant and equipment

                                      -   growth        (1,175)     (2,914)

                                      - maintenance    (40,268)    (35,532)

  Payments on landfill operating lease contracts        (4,977)     (7,803)

  Proceeds from divestiture                              7,533           -

  Proceeds from sale of equipment                          631       2,782

  Investment in unconsolidated entities                      -         (20)

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

   Net Cash Used In Investing Activities               (38,256)    (43,487)

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

 Cash Flows from Financing Activities:

  Proceeds from long-term borrowings                   134,100     450,644

  Principal payments on long-term debt                (132,957)   (440,033)

  Payment of financing costs                              (340)    (14,072)

  Proceeds from exercise of stock options                  412         260

  Excess tax benefit on the vesting of restricted

   stock                                                   122           -

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

   Net Cash Provided By (Used In) Financing

    Activities                                           1,337      (3,201)

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

 Cash (Used In) Provided By Discontinued Operations     (4,839)      3,319

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

 Net increase in cash and cash equivalents               3,496         333

 Cash and cash equivalents, beginning of period          2,035       1,838

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

 Cash and cash equivalents, end of period           $    5,531  $    2,171

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

 Supplemental Disclosures:

 Cash interest                                      $   32,381  $   25,746

 Cash income taxes, net of refunds                  $      142  $      345











               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               (Unaudited)

                              (In thousands)



Note 1:     Discontinued Operations



On January 23, 2011 we entered into a purchase and sale agreement and

related agreements to sell select non-integrated FCR recycling assets and

select intellectual property assets to a new company formed by Pegasus

Capital Advisors, L.P. and Intersection, LLC (the "Purchaser") for $134,100

in gross proceeds (the "FCR Divestiture").  This resulted in a loss on

disposal of discontinued operations (net of tax) of $1,404 and $2,020 in

the three and nine months ended January 31, 2011, respectively. Income from

discontinued operations (net of tax) for the three and nine months ended

January 31, 2011 and 2010 amounted to $2,115, $1,017, $2,098 and $2,152,

respectively.



We completed the divestiture of the assets of our FCR Trilogy Glass

operation in the third quarter of fiscal year 2011 for $1,840 in cash.

This resulted in a gain on disposal of discontinued operations amounting to

$36 (net of tax) in the three and nine months ended January 31, 2011.  Loss

from discontinued operations (net of tax) for the three and nine months

ended January 31, 2011 and 2010 amounted to $213, $205, $844 and $551,

respectively.



In fiscal year 2010, we completed divestitures and closed operations

resulting in a gain on disposal of discontinued operations (net of tax)

amounting to $239 and $328 in the three and nine months ended January 31,

2010, respectively.



The operating results of these operations for the three and nine months

ended January 31, 2011 and 2010 have been reclassified from continuing to

discontinued operations in our consolidated financial statements.  Revenues

and income before income tax benefit attributable to discontinued

operations for the three and nine months ended January 31, 2011 and 2010

are as follows:



                                    Three Months Ended   Nine Months Ended

                                         January 31,        January 31,

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

                                      2011      2010      2011      2010

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

Revenues                            $  20,159 $  16,446 $ 56,122  $  48,217

Income (loss) before income taxes   $     491 $   1,397 $   (771) $   3,215

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





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, severance and

reorganization charges, goodwill impairment charges, environmental

remediation charges as well as development project 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 sales of property and

equipment, which is a non-GAAP measure.  Adjusted EBITDA is reconciled to

Net 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:



                                 Three Months Ended     Nine Months Ended

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

                                 January    January    January    January

                                 31, 2011   31, 2010   31, 2011   31, 2010

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



Net Loss Applicable to Common

 Stockholders                   $  (6,365) $  (4,376) $ (10,421) $  (8,705)

 Income from discontinued

  operations, net                  (1,902)      (799)    (1,255)    (1,814)

 Loss (income) on disposal of

  discontinued operations, net      1,368       (239)     1,984       (328)

 Provision for income taxes         1,079        572      2,139        941

 Interest expense, net             12,174     12,520     36,603     33,657

 Depreciation and amortization     13,573     13,850     44,776     49,327

 Other (income) expense, net          (65)      (268)     2,161      1,329

 Severance and reorganization

  charges                               -         78          -         78

 Depletion of landfill

  operating lease obligations       1,714      1,771      6,013      4,936

 Interest accretion on landfill

  and environmental remediation

  liabilities                         832        931      2,487      2,668

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

Adjusted EBITDA (2)             $  22,408  $  24,040  $  84,487  $  82,089

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





Following is a reconciliation of Free Cash Flow to Net Cash Provided by

Operating Activities:





                                 Three Months Ended     Nine Months Ended

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

                                 January    January    January    January

                                 31, 2011   31, 2010   31, 2011   31, 2010

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

Net Cash Provided by Operating

 Activities                     $   8,804  $   7,232  $  45,254  $  43,702

Capital expenditures              (10,669)    (6,284)   (41,443)   (38,446)

Payments on landfill operating

 lease contracts                   (2,727)    (3,265)    (4,977)    (7,803)

Proceeds from divestiture and

 sale of property and equipment       143        285      8,164      2,782

Assets acquired through

 financing leases                       -       (404)         -       (404)

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

Free Cash Flow (2)              $  (4,449) $  (2,436) $   6,998  $    (169)

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







               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 nine months ended January 31, 2011 and 2010 are as follows:



                                      Three Months Ended January 31,

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

                                             % of                  % of

                                             Total                 Total

                                  2011      Revenue     2010      Revenue

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

Collection                      $  48,068       43.0% $  49,127       44.7%

Disposal                           23,610       21.2%    23,992       21.8%

Power/LFGTE                         7,170        6.4%     7,314        6.7%

Processing and recycling           13,962       12.5%    12,602       11.5%

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

Solid waste operations             92,810       83.1%    93,035       84.7%

Major accounts                      9,906        8.9%     9,414        8.5%

Recycling                           8,911        8.0%     7,435        6.8%

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

Total revenues                  $ 111,627      100.0% $ 109,884      100.0%

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



                                       Nine Months Ended January 31,

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

                                             % of                  % of

                                             Total                 Total

                                  2011      Revenue     2010      Revenue

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

Collection                      $ 152,628       42.8% $ 155,587       45.1%

Disposal                           84,240       23.6%    82,367       23.9%

Power/LFGTE                        19,156        5.4%    20,842        6.0%

Processing and recycling           43,424       12.2%    36,379       10.5%

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

Solid waste operations            299,448       84.0%   295,175       85.5%

Major accounts                     30,447        8.5%    28,901        8.4%

Recycling                          26,620        7.5%    20,871        6.1%

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

Total revenues                  $ 356,515      100.0% $ 344,947      100.0%

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



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

compared to the three months ended January 31, 2010:



                                              % of       % of      % of

                                            Related  Solid Waste   Total

                                  Amount    Business  Operations  Company

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

Solid Waste Operations:

Collection                      $     238        0.5%       0.3%       0.2%

Disposal                              171        0.7%       0.2%       0.2%

Power/LFGTE                          (314)      -4.3%      -0.4%      -0.3%

Processing and recycling               59        0.5%       0.1%       0.0%

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

Solid Waste Yield                     154                   0.2%       0.1%



Volume                              2,131                   2.3%       1.9%

Commodity price & volume              147                   0.2%       0.1%

Fuel surcharges                        75                   0.1%       0.1%

Acquisitions & divestitures        (1,476)                 -1.6%      -1.3%

Closed landfill                    (1,255)                 -1.4%      -1.1%

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

Total Solid Waste                    (224)                 -0.2%      -0.2%

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



Major Accounts                        492                              0.4%

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



Recycling Operations:                                    % of

                                                      Recycling

                                                      Operations

                                                      ---------

Commodity price                     2,075                  27.9%       1.9%

Commodity volume                     (599)                 -8.0%      -0.5%

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

Total Recycling                     1,476                  19.9%       1.4%

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



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

Total Company                   $   1,743                              1.6%

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



Solid Waste Internalization Rates by Region:



                                 Three Months Ended    Nine Months Ended

                                     January 31,           January 31,

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

                                   2011       2010       2011       2010

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

Eastern region                       58.0%      61.0%      54.4%      52.5%

Central region                       81.5%      78.7%      81.8%      77.5%

Western region                       58.4%      65.1%      64.4%      68.4%

Solid waste internalization          65.6%      66.8%      65.2%      65.0%













               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                         SUPPLEMENTAL DATA TABLES

                               (Unaudited)

                              (In thousands)



GreenFiber Financial Statistics - as reported (1):



                          Three Months Ended  Nine Months Ended

                              January 31,         January 31,

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

                            2011      2010      2011      2010

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

Revenues                  $ 28,470  $ 32,528  $ 66,488  $ 82,545

Net income (loss)              205       146    (5,071)   (2,610)

Cash flow from operations      434      (749)   (2,604)    5,241

Net working capital

 changes                    (2,324)   (3,719)   (5,016)   (1,092)

Adjusted EBITDA           $  2,758  $  2,970  $  2,412  $  6,333



As a percentage of

 revenue:



Net income (loss)              0.7%      0.4%     -7.6%     -3.2%

Adjusted EBITDA                9.7%      9.1%      3.6%      7.7%



(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   Nine Months Ended

                                        January 31,         January 31,

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

                                      2011      2010      2011      2010

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

Growth Capital

 Expenditures:

 Landfill Development               $    182  $      -  $    409  $   1,026

 Other                                     4       280       766      1,888

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

Total Growth Capital

 Expenditures                            186       280     1,175      2,914

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



Maintenance Capital Expenditures:



 Vehicles, Machinery / Equipment

  and Containers                       4,390       904    14,677      8,794

 Landfill Construction & Equipment     5,040     4,147    22,870     23,469

 Facilities                              704       737     1,852      2,586

 Other                                   349       216       869        683

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

Total Maintenance Capital

 Expenditures                         10,483     6,004    40,268     35,532

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



Total Capital Expenditures          $ 10,669  $  6,284  $ 41,443  $  38,446

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



(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, 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.







               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                (Unaudited)

                 (In thousands, except amounts per share)



                                    Three Months Ended

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

                 October  July 31,  April 30,  January   October  July 31,

                31, 2010    2010      2010    31, 2010  31, 2009    2009

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



Revenues        $122,895  $121,992  $112,695  $109,884  $118,035  $117,028



Operating

 expenses:

 Cost of

  operations      79,313    81,338    76,413    73,724    76,151    77,111

 General and

  administration  15,697    15,916    14,001    14,900    13,769    14,885

 Depreciation

  and

  amortization    15,620    15,584    14,291    13,850    17,148    18,329

 Gain on sale

  of assets            -    (3,502)        -         -         -         -

 Environmental

  remediation

  charge               -         -       335         -         -         -

                 110,630   109,336   105,040   102,474   107,068   110,326

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



Operating income  12,265    12,656     7,655     7,410    10,968     6,702



Other

 expense/(income),

 net:

 Interest

  expense, net    12,146    12,282    12,364    12,520    12,636     8,502

 Loss (gain)

  from equity

  method

  investment         506     2,132     1,385       (73)      159     1,219

 Loss on debt

  modification         -         -         -         -         -       511

 Other income       (318)      (94)     (359)     (195)     (247)      (45)

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

                  12,334    14,320    13,390    12,252    12,548    10,187

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



Loss from

 continuing

 operations

 before income

 taxes and

 discontinued

 operations          (69)   (1,664)   (5,735)   (4,842)   (1,580)   (3,485)

Provision for

 income taxes        281       779       563       572       284        84

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



Loss from

 continuing

 operations

 before

 discontinued

 operations         (350)   (2,443)   (6,298)   (5,414)   (1,864)   (3,569)



Discontinued

 Operations:

 (Loss) income

  from discontinued

  operations,

  net of income

  taxes             (240)     (407)      293       799       265       750

 (Loss) income

  on disposal

  of discontinued

  operations,

  net of income

  taxes             (564)      (51)      852       239        48        41

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



Net loss

 applicable

 to common

 stockholders   $ (1,154) $ (2,902) $ (5,153) $ (4,376) $ (1,551) $ (2,778)

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



Common stock and

 common stock

 equivalent

 shares

 outstanding,

 assuming full

 dilution         26,058    25,905    25,810    25,748    25,733    25,688

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



Net loss per

 common share   $  (0.04) $  (0.11) $  (0.20) $  (0.17) $  (0.06) $  (0.11)

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



Adjusted EBITDA $ 30,804  $ 31,276  $ 25,158  $ 24,040  $ 30,539  $ 27,510

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







    Following is a reconciliation of Adjusted EBITDA to Net Loss:







                                    Three Months Ended

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

                 October  July 31,  April 30,  January   October  July 31,

                31, 2010    2010      2010    31, 2010  31, 2009    2009

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



Net Loss

 Applicable to

 Common Stock

 Holders        $ (1,154) $ (2,902) $ (5,153) $ (4,376) $ (1,551) $ (2,778)

 Income from

  discontinued

  operations, net    240       407      (293)     (799)     (265)     (750)

 Loss (income)

  on disposal of

  discontinued

  operations, net    564        51      (852)     (239)      (48)      (41)

 Provision for

  income taxes       281       779       563       572       284        84

 Interest

  expense, net    12,146    12,282    12,364    12,520    12,636     8,502

 Depreciation

  and

  amortization    15,620    15,584    14,291    13,850    17,148    18,329

 Other expense

  (income), net      188     2,038     1,026      (268)      (88)    1,685

 Environmental

  remediation

  charge               -         -       335         -         -         -

 Severance and

  reorganization

  charges              -         -       107        78         -         -

 Depletion of

  landfill

  operating

  lease

  obligations      2,107     2,192     1,931     1,771     1,645     1,520

 Interest

  accretion on

  landfill and

  environmental

  remediation

  liabilities        812       844       839       931       778       959

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

Adjusted

 EBITDA (2)     $ 30,804  $ 31,276  $ 25,158  $ 24,040  $ 30,539  $ 27,510

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

Ned Coletta

(802) 772-2239



Ed Johnson

(802) 772-2241



http://www.casella.com



Source: Casella Waste Systems, Inc.

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