Casella Waste Systems, Inc. Announces Third Quarter Fiscal Year 2013 Results; Updates Guidance for Its Fiscal Year

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 2013 Results; Updates Guidance for Its Fiscal Year

March 4, 2013

RUTLAND, VT -- (Marketwire) -- 03/04/13 -- 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 2013, and provided updated guidance for its 2013 fiscal year.

Highlights for the quarter included:

  • Revenue growth of 0.4 percent over the same quarter last year.
  • Overall solid waste pricing growth of 1.0 percent was primarily driven by collection pricing growth of 1.9 percent as a percentage of collection revenues.
  • Adjusted EBITDA* was $19.7 million for the quarter.

For the quarter ended January 31, 2013, revenues were $115.0 million, up $0.4 million or 0.4 percent from the same quarter last year, with revenue growth mainly driven by higher solid waste collection pricing and acquisition activity. The company's net loss attributable to common stockholders was ($11.4) million, or ($0.29) per share for the quarter, compared to net loss of ($24.6) million, or ($0.92) per share for the same quarter last year.

The current quarter includes a $1.6 million severance and reorganization charge related to the sale of Maine Energy Recovery Company facility ("Maine Energy") and other realignment activities, $0.8 million of expenses related to the divestiture of Maine Energy and the acquisition of Blow Bros. ("BBI"), and a $5.9 million loss on the extinguishment of debt related to the repurchase of the company's second lien notes in November 2012. By comparison, the quarter ended January 31, 2012 included two non-cash charges totaling $15.8 million related to our investment in US GreenFiber LLC.

Excluding the unusual and one-time charges from each period and assuming no tax impact, the company's net loss attributable to common shareholders was ($3.1) million, or ($0.08) per common share for the quarter, compared to net loss of ($8.9) million, or ($0.33) per share for the same quarter last year.

Operating loss was ($0.1) million for the quarter, down from operating income of $4.4 million in the same quarter last year. Excluding the unusual and one-time charges, Adjusted Operating Income* in the current quarter was $2.3 million, down $2.1 million from the same quarter last year. Adjusted EBITDA was $19.7 million for the quarter, down $2.5 million from same quarter last year.

"We continued to face operating challenges throughout our business in the third quarter," said John W. Casella, Chairman and CEO of Casella Waste Systems. "Landfill volumes at our western New York landfills, volumes in our collection line-of-business, and the ramp-up of several projects all underperformed our expectations in the quarter and, as such, we have lowered our guidance for the current fiscal year."

"We accomplished three important developments in the quarter which we believe position the company well for the future, specifically:

  • "We sold our Maine Energy facility to the City of Biddeford, Maine on November 30, 2012 and then permanently closed the facility on December 31, 2012. On January 2, 2013, we began transferring waste through our newly constructed transfer station in Westbrook, Maine to other disposal facilities, including our North Country and Southbridge landfills."
  • "We completed the acquisition of all of the outstanding capital stock of BBI on December 6, 2012. BBI's operations overlay well with our footprint in New Hampshire and Maine and we expect the acquisition to drive incremental value from our existing operations through operational synergies and internalization benefits, and to provide a growth platform in several new market areas."
  • "On January 18, 2013, the Massachusetts Department of Environmental Protection increased the annual permit limit at our Southbridge landfill to 405,000 tons per year of municipal solid waste (MSW) from the previous limit of 300,000 tons per year of MSW. We have begun to ramp tonnages to the site, and given the scarcity of disposal capacity in the Massachusetts market, we expect to be operating at our newly permitted annual tonnage level by the summer of 2013."

"In early December, we reset the strategic direction of the company with two changes to our senior management team," Casella said. "These changes furthered the steps we made in August to move responsibility and accountability from the corporate office to local operating units. The new leadership team is focused on making the cultural and structural changes necessary to drive the company to profitability. The solid waste business is inherently a local business and by giving flexibility to the local teams, we believe that we can lead in each market by reducing our cost of service and providing our customers with exceptional service and solutions."

Fiscal 2013 Outlook
Due primarily to the negative impact of lower than expected landfill volumes, softness in the collection line-of-business, and project delays, the company adjusted its fiscal year guidance in the following categories:

  • Revenues between $462.0 million and $472.0 million.
  • Adjusted EBITDA* between $87.0 million and $90.0 million.

The negative variances from our fiscal year forecast as presented in December to this current forecast include the following impacts from the third quarter and our conservative expectations about the remainder of the fiscal year:

  • While we expected performance in the disposal line-of-business to decline year-over-year in our third quarter, actual performance was below expectations due to lower than anticipated landfill volumes (most pronounced at our western New York landfills), an unfavorable shift in mix, and a regulatory delay in accessing additional airspace at the Worcester landfill closure project. Given the actual lower results from our third quarter and our current revised forecast for the remainder of our fiscal year, we expect disposal Adjusted EBITDA to be approximately $2.8 million lower than that reflected in our December fiscal year forecast.
  • The collection line-of-business underperformed our December forecast with weaker than expected volumes. Given the actual lower results from our third quarter and our downwardly revised forecast for the remainder of our fiscal year, we expect Adjusted EBITDA in the collection line-of-business to be approximately $3.4 million lower than that reflected in our December fiscal year forecast.
  • The processing line-of-business underperformed our December forecast with weaker than expected operating performance and the delayed ramp-up of a new facility. Given the actual lower results from our third quarter and our revised forecast for the remainder of our fiscal year, we expect Adjusted EBITDA in the processing line-of-business to be approximately $2.6 million lower than that reflected in our December fiscal year forecast.

*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-offs, legal settlement charges, bargain purchase gains, asset impairment charges, environmental remediation charges, severance and reorganization charges, expenses from divestiture, acquisition and financing costs, as well as losses on divestiture (Adjusted EBITDA) which is a non-GAAP measure. The company also discloses earnings before interest, taxes, adjusted for gain on sale of assets, development project charge write-offs, legal settlement charges, bargain purchase gains, asset impairment charges, environmental remediation charges, severance and reorganization charges, expenses from divestiture, acquisition and financing costs, as well as losses on divestiture (Adjusted Operating Income) 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 attributable to growth and maintenance (excluding acquisition related capital), less payments on landfill operating leases, less assets acquired through financing leases, plus proceeds from the sale of property and equipment, plus contributions from non-controlling interest holder, which is a non-GAAP measure. Adjusted EBITDA and Adjusted Operating Income are reconciled to net income (loss), while Free Cash Flow is reconciled to net cash provided by operating activities.

The company presents Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow because it considers them important supplemental measures of its performance and believes they are frequently used by securities analysts, investors and other interested parties in the evaluation of the company's results. Management uses these non-GAAP measures to further understand the company's "core operating performance." The company believes its "core operating performance" represents its on-going performance in the ordinary course of operations. The company believes that providing Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow to investors, in addition to corresponding income statement and cash flow statement measures, affords investors the benefit of viewing its performance using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and its results of operations may look in the future. The company further believes that providing this information allows its investors greater transparency and a better understanding of its core financial performance. In addition, the instruments governing the company's indebtedness use EBITDA (with additional adjustments) to measure its compliance with covenants such as interest coverage, leverage and debt incurrence.

Non-GAAP financial measures are not in accordance with or an alternative for GAAP. Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP, and may be different from Adjusted EBITDA, Adjusted Operating Income, or Free Cash Flow presented by other companies.

About 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, investors contact Ned Coletta, Chief Financial Officer at (802) 772-2239; media contact Joseph Fusco, Vice President at (802) 772-2247, 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 Tuesday, March 5, 2013 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-9590 (or, for international participants (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 12271071) until 11:59 p.m. ET on Tuesday, March 12, 2013.

Safe Harbor Statement
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as "believe," "expect," "anticipate," "plan," "may," "will," "would," "intend," "estimate," "guidance" and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's beliefs and assumptions. We cannot guarantee that we actually will achieve the plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of our operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in our forward-looking statements. Such risks and uncertainties include or relate to, among other things: current economic conditions that have adversely affected and may continue to adversely affect our revenues and our operating margin; we may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside our control; we may be required to incur capital expenditures in excess of our estimates; fluctuations in energy pricing or the commodity pricing of our recyclables may make it more difficult for us to predict our results of operations or meet our estimates; we may incur environmental charges or asset impairments in the future; we may be unable to decommission our waste-to-energy facility on a timely basis; and we may not fully recognize the expected financial benefits from the BBI acquisition due to the an inability to recognize operational cost savings, general and administration cost savings, or landfill or recycling facility internalization benefits. 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, 2012.

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,

                             2013         2012         2013         2012

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



Revenues                 $   115,002  $   114,578  $   356,531  $   371,637



Operating expenses:

  Cost of operations          84,168       81,398      254,417      253,248

  General and

   administration             14,480       13,933       43,788       46,202

  Depreciation and

   amortization               14,045       14,827       43,433       44,394

  Severance and

   reorganization costs        1,636            -        3,463            -

  Expense from

   divestiture,

   acquisition and

   financing costs               372            -        1,003            -

  Loss on divestiture

   (1)                           353            -          353            -

  Legal settlement                 -            -            -        1,359

  Development project

   charge                          -            -            -          131

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

                             115,054      110,158      346,457      345,334

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



Operating (loss) income          (52)       4,420       10,074       26,303



Other expense/(income),

 net:

  Interest expense, net        9,357       11,508       32,890       33,865

  Loss from equity

   method investments          1,436        6,383        3,311       10,163

  Impairment of equity

   method investment               -       10,680            -       10,680

  (Gain) loss on

   derivative

   instruments                   (24)           -        3,871            -

  Loss on debt

   extinguishment              5,914            -       15,584            -

  Other income                  (298)        (117)        (737)        (549)

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

                              16,385       28,454       54,919       54,159

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



Loss from continuing

 operations before

 income taxes and

 discontinued operations     (16,437)     (24,034)     (44,845)     (27,856)

(Benefit) provision for

 income taxes                 (4,963)         601       (3,899)       1,330

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



Loss from continuing

 operations before

 discontinued operations     (11,474)     (24,635)     (40,946)     (29,186)



Discontinued operations:

  Gain on disposal of

   discontinued

   operations, net of

   income taxes (1)                -            -            -          725

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



Net loss                     (11,474)     (24,635)     (40,946)     (28,461)

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



  Less: Net loss

   attributable to

   noncontrolling

   interest                      (67)           -         (199)           -

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



Net loss attributable to

 common stockholders     $   (11,407) $   (24,635) $   (40,747) $   (28,461)

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



Weighted average common

 shares outstanding           39,230       26,822       32,365       26,715

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



Net loss per common

 share                   $     (0.29) $     (0.92) $     (1.26) $     (1.07)

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



Adjusted EBITDA (2)      $    19,733  $    22,175  $    68,440  $    81,369

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





                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED BALANCE SHEETS

                                (Unaudited)

                               (In thousands)



                                                   January 31,   April 30,

                      ASSETS                           2013         2012

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



CURRENT ASSETS:

  Cash and cash equivalents                        $     1,112  $     4,534

  Restricted cash                                           76           76

  Accounts receivable - trade, net of allowance

   for doubtful accounts                                50,425       47,472

  Other current assets                                  18,200       15,274

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

Total current assets                                    69,813       67,356



Property, plant and equipment, net of accumulated

 depreciation and amortization                         428,452      416,717

Goodwill                                               116,281      101,706

Intangible assets, net                                  11,979        2,970

Restricted assets                                          523          424

Notes receivable - related party/employee                  516          722

Investments in unconsolidated entities                  19,431       22,781

Other non-current assets                                26,158       21,067

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



Total assets                                       $   673,153  $   633,743

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



       LIABILITIES AND STOCKHOLDERS' EQUITY



CURRENT LIABILITIES:

  Current maturities of long-term debt and capital

   leases                                          $       992  $     1,228

  Current maturities of financing lease

   obligations                                             355          338

  Accounts payable                                      47,695       46,709

  Other accrued liabilities                             49,549       40,060

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

Total current liabilities                               98,591       88,335



Long-term debt and capital leases, less current

 maturities                                            490,686      473,381

Financing lease obligations, less current

 maturities                                              1,549        1,818

Other long-term liabilities                             55,392       51,978



Total stockholders' equity                              26,935       18,231

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



Total liabilities and stockholders' equity         $   673,153  $   633,743

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







                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                (Unaudited)

                               (In thousands)



                                                       Nine Months Ended

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

                                                   January 31,  January 31,

                                                       2013         2012

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

Cash Flows from Operating Activities:

Net loss                                           $   (40,946) $   (28,461)

Gain on disposal of discontinued operations, net             -         (725)

Adjustments to reconcile net loss to net cash

 provided by operating activities -

  Gain on sale of property and equipment                  (422)        (902)

  Depreciation and amortization                         43,433       44,394

  Depletion of landfill operating lease

   obligations                                           7,358        6,570

  Interest accretion on landfill and environmental

   remediation liabilities                               2,756        2,613

  Loss on divestiture                                      353            -

  Development project charge                                 -          131

  Amortization of discount on second lien notes

   and senior subordinated notes                           568          712

  Loss from equity method investments                    3,311       10,163

  Impairment of equity method investment                     -       10,680

  Loss on derivative instruments, net                    3,871            -

  Loss on debt extinguishment                           15,584            -

  Stock-based compensation expense and related

   severance expense                                     1,840        1,307

  Excess tax benefit on the vesting of share based

   awards                                                  (98)        (254)

  Deferred income taxes                                 (4,057)       1,548

  Changes in assets and liabilities, net of

   effects of acquisitions and divestitures             (3,025)       1,966

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

    Net Cash Provided by Operating Activities           30,526       49,742

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

Cash Flows from Investing Activities:

  Acquisitions, net of cash acquired                   (25,106)      (2,102)

  Additions to property, plant and equipment -

   acquisitions                                           (528)        (168)

      - growth                                         (10,415)      (9,833)

      - maintenance                                    (33,526)     (39,279)

  Payment for capital related to divestiture              (618)           -

  Payments on landfill operating lease contracts        (5,726)      (6,052)

  Proceeds from sale of property and equipment             795        1,337

  Investments in unconsolidated entities                (1,000)      (4,146)

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

    Net Cash Used In Investing Activities              (76,124)     (60,243)

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

Cash Flows from Financing Activities:

  Proceeds from long-term borrowings                   334,497      127,900

  Principal payments on long-term debt                (320,483)    (119,433)

  Payment of tender premium and costs on second

   lien notes                                          (10,743)           -

  Payments of financing costs                           (4,572)        (142)

  Net proceeds from the sale of Class A common

   stock                                                42,184            -

  Proceeds from the exercise of share based awards           -          337

  Excess tax benefit on the vesting of share based

   awards                                                   98          254

  Contributions from noncontrolling interest

   holder                                                1,195          174

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

    Net Cash Provided By Financing Activities           42,176        9,090

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

    Net Cash Provided By Discontinued Operations             -          725

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

Net decrease in cash and cash equivalents               (3,422)        (686)

Cash and cash equivalents, beginning of period           4,534        1,817

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

Cash and cash equivalents, end of period           $     1,112  $     1,131

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

Supplemental Disclosures:

Cash interest                                      $    26,933  $    31,952

Cash income taxes, net of refunds                  $        97  $     5,314






                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                 (Unaudited)

                               (In thousands)



Note 1: Divestiture and Discontinued Operations



Maine Energy Divestiture



On August 1, 2012, we executed a purchase and sale agreement with the City

of Biddeford, Maine pursuant to which we agreed to sell the real property of

Maine Energy, which resides in our Eastern region, to the City of Biddeford,

subject to satisfaction of conditions precedent and closing. We agreed to

sell Maine Energy for undiscounted purchase consideration of $6,650, which

shall be paid in installments over the next 21 years, subject to the terms

of the purchase and sale agreement. The transaction closed on November 30,

2012 and we waived certain conditions precedent not satisfied at that time.

Effective December 31, 2012, we closed the facility and initiated the

decommissioning process in accordance with the provisions of the agreement.

Following the decommissioning of Maine Energy, it is our responsibility to

demolish the facility, at our cost, within twelve months of the closing date

and in accordance with the terms of the purchase and sale agreement. We

recorded a charge to loss on divestiture of $353 in the three months ended

January 31, 2013 as a result of this transaction.



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. Pursuant to these

agreements, we divested non-integrated recycling assets located outside our

core operating regions of New York, Massachusetts, Vermont, New Hampshire,

Maine and northern Pennsylvania, including 17 material recovery facilities

("MRFs"), one transfer station and certain related intellectual property

assets. Following the transaction, we retained four integrated MRFs located

in our core operating regions. As a part of the disposition, we also entered

into a ten-year commodities marketing agreement with the Purchaser to market

100% of the tonnage from three of our remaining integrated MRFs.



We completed the transaction on March 1, 2011 for $134,195 in gross cash

proceeds. This included an estimated $3,795 working capital and other

purchase price adjustment, which was subject to further adjustment, as

defined in the purchase and sale agreement. The final working capital

adjustment, along with additional legal expenses related to the transaction,

of $646 was recorded to gain on disposal of discontinued operations, net of

income taxes in the first quarter of fiscal year 2012.



In the second quarter of fiscal year 2012, we recorded an additional working

capital adjustment of $79 to gain on disposal of discontinued operations,

net of income taxes, which related to our subsequent collection of

receivable balances that were released to us for collection by the

Purchaser.



Note 2: Non - GAAP Financial Measures



In addition to disclosing financial results prepared in accordance with

Generally Accepted Accounting Principles in the United States (GAAP), we

also disclose earnings before interest, taxes, depreciation and

amortization, adjusted for accretion, depletion of landfill operating lease

obligations, gain on sale of assets, development project charge write-offs,

legal settlement charges, bargain purchase gains, asset impairment charges,

environmental remediation charges, severance and reorganization charges,

expenses from divestiture, acquisition and financing costs, as well as

losses on divestiture (Adjusted EBITDA) which is a non-GAAP measure. We also

disclose earnings before interest, taxes, adjusted for gain on sale of

assets, development project charge write-offs, legal settlement charges,

bargain purchase gains, asset impairment charges, environmental remediation

charges, severance and reorganization charges, expenses from divestiture,

acquisition and financing costs, as well as losses on divestiture (Adjusted

Operating Income) which is a non-GAAP measure. We also disclose Free Cash

Flow, which is defined as net cash provided by operating activities, less

capital expenditures attributable to growth and maintenance (excluding

acquisition related capital), less payments on landfill operating leases,

less assets acquired through financing leases, plus proceeds from the sale

of property and equipment, plus contributions from non-controlling interest

holder, which is a non-GAAP measure. Adjusted EBITDA and Adjusted Operating

Income are reconciled to net income (loss), while Free Cash Flow is

reconciled to net cash provided by operating activities.



We present Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow

because we consider them important supplemental measures of our performance

and believe they are frequently used by securities analysts, investors and

other interested parties in the evaluation of our results. We use these non-

GAAP measures to further understand our "core operating performance." We

believe our "core operating performance" represents our on-going performance

in the ordinary course of operations. We believe that providing Adjusted

EBITDA, Adjusted Operating Income, and Free Cash Flow to investors, in

addition to corresponding income statement and cash flow statement measures,

affords investors the benefit of viewing our performance using the same

financial metrics that our management team uses in making many key decisions

and understanding how the core business and our results of operations may

look in the future. We further believe that providing this information

allows our investors greater transparency and a better understanding of our

core financial performance. In addition, the instruments governing our

indebtedness use EBITDA (with additional adjustments) to measure our

compliance with covenants such as interest coverage, leverage and debt

incurrence.



Non-GAAP financial measures are not in accordance with or an alternative for

GAAP. Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow should

not be considered in isolation from or as a substitute for financial

information presented in accordance with GAAP, and may be different from

Adjusted EBITDA, Adjusted Operating Income, or Free Cash Flow presented by

other companies.






Following is a reconciliation of Adjusted EBITDA and Adjusted Operating

 Income to Net Loss:



                            Three Months Ended         Nine Months Ended

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

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

                             2013         2012         2013         2012

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



Net Loss                 $   (11,474) $   (24,635) $   (40,946) $   (28,461)

  Gain on disposal of

   discontinued

   operations, net                 -            -            -         (725)

  (Benefit) provision

   for income taxes           (4,963)         601       (3,899)       1,330

  Other expense, net           7,028       16,946       22,029       20,293

  Interest expense, net        9,357       11,508       32,890       33,865

  Legal settlement                 -            -            -        1,359

  Loss on divestiture

   (1)                           353            -          353            -

  Expense from

   divestiture,

   acquisition and

   financing costs               372            -        1,003            -

  Depreciation and

   amortization               14,045       14,827       43,433       44,394

  Development project

   charge                          -            -            -          131

  Severance and

   reorganization costs        1,636            -        3,463            -

  Depletion of landfill

   operating lease

   obligations                 2,480        2,055        7,358        6,570

  Interest accretion on

   landfill and

   environmental

   remediation

   liabilities                   899          873        2,756        2,613

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

Adjusted EBITDA (2)      $    19,733  $    22,175  $    68,440  $    81,369

  Depreciation and

   amortization              (14,045)     (14,827)     (43,433)     (44,394)

  Depletion of landfill

   operating lease

   obligations                (2,480)      (2,055)      (7,358)      (6,570)

  Interest accretion on

   landfill and

   environmental

   remediation

   liabilities                  (899)        (873)      (2,756)      (2,613)

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

Adjusted Operating

 Income (2)              $     2,309  $     4,420  $    14,893  $    27,792

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





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

 Operating Activities:



                            Three Months Ended         Nine Months Ended

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

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

                             2013         2012         2013         2012

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

Net Cash Provided by

 Operating Activities    $     8,151  $     8,264  $    30,526  $    49,742

Capital expenditures -

 growth and maintenance      (10,192)     (13,275)     (43,941)     (49,112)

Payments on landfill

 operating lease

 contracts                    (2,428)      (2,738)      (5,726)      (6,052)

Proceeds from sale of

 property and equipment          238          167          795        1,337

Contributions from

 noncontrolling interest

 holder                            -          174        1,195          174

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

Free Cash Flow (2)       $    (4,231) $    (7,408) $   (17,151) $    (3,911)

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






                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, 2013 and 2012 are as follows:



                                       Three Months Ended January 31,

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

                                           % of Total            % of Total

                                    2013     Revenue      2012     Revenue

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

Collection                       $  51,459       44.7% $  48,875       42.7%

Disposal                            27,219       23.7%    30,220       26.4%

Power generation                     3,400        3.0%     3,182        2.8%

Processing and organics             14,469       12.6%    12,231       10.7%

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

  Solid waste operations            96,547       84.0%    94,508       82.6%

Major accounts                       8,551        7.4%     9,198        7.9%

Recycling                            9,904        8.6%    10,872        9.5%

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

Total revenues                   $ 115,002      100.0% $ 114,578      100.0%

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



                                        Nine Months Ended January 31,

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

                                           % of Total            % of Total

                                    2013     Revenue      2012     Revenue

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

Collection                       $ 157,124       44.1% $ 157,265       42.3%

Disposal                            90,569       25.4%    96,645       26.0%

Power generation                     8,856        2.5%     9,415        2.5%

Processing and organics             43,378       12.1%    40,961       11.1%

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

  Solid waste operations           299,927       84.1%   304,286       81.9%

Major accounts                      27,296        7.7%    29,756        8.0%

Recycling                           29,308        8.2%    37,595       10.1%

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

Total revenues                   $ 356,531      100.0% $ 371,637      100.0%

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





Components of revenue growth for the three months ended January 31, 2013

 compared to the three months ended January 31, 2012 are as follows:



                                          % of      % of Solid

                                        Related       Waste      % of Total

                           Amount       Business    Operations    Company

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

Solid Waste Operations:

Collection              $        905          1.9%         0.9%         0.8%

Disposal                          86          0.3%         0.1%         0.1%

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

Solid Waste Yield                991                       1.0%         0.9%



Collection                    (1,769)                     -1.8%        -1.5%

Disposal                        (562)                     -0.6%        -0.5%

Organics and processing        1,055                       1.1%         0.9%

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

Solid Waste Volume            (1,276)                     -1.3%        -1.1%



Fuel surcharge                   289                       0.3%         0.3%

Commodity price &

 volume                        1,507                       1.6%         1.3%

Acquisitions, net

 divestitures                  2,460                       2.6%         2.1%

Closed landfill               (1,931)                     -2.0%        -1.7%

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

Total Solid Waste              2,039                       2.2%         1.8%

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



Major Accounts                  (647)                                  -0.6%

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



Recycling Operations:                                  % of

                                                    Recycling

                                                    Operations

                                                   -----------

Commodity price               (1,187)                    -10.9%        -1.0%

Commodity volume                 219                       2.0%         0.2%

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

Total Recycling                 (968)                     -8.9%        -0.8%

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



Total Company           $        424                                    0.4%

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





Solid Waste Internalization Rates by Region:



                                  Three Months Ended     Nine Months Ended

                                      January 31,           January 31,

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

                                    2013       2012       2013       2012

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

Eastern region                        54.0%      51.9%      53.8%      55.4%

Western region                        74.0%      77.5%      73.6%      76.8%

Solid waste internalization           64.8%      65.3%      64.5%      66.7%







                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                          SUPPLEMENTAL DATA TABLES

                                (Unaudited)

                               (In thousands)



GreenFiber Financial Statistics (1):



                               Three Months Ended       Nine Months Ended

                                   January 31,             January 31,

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

                                2013        2012        2013        2012

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

Revenues                     $   17,608  $   23,460  $   50,203  $   61,317

Net loss                         (2,785)    (12,818)     (6,651)    (20,382)

Cash flow used in operations     (1,151)     (2,971)       (120)     (5,229)

Net working capital changes        (314)     (2,602)        960      (1,877)

Adjusted EBITDA              $     (837) $     (369) $   (1,080) $   (3,352)



As a percentage of revenues:



Net loss                          -15.8%      -54.6%      -13.2%      -33.2%

Adjusted EBITDA                    -4.8%       -1.6%       -2.2%       -5.5%



(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,

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

                                2013        2012        2013        2012

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

Growth capital expenditures:

Landfill development         $        -  $      414  $      589  $      658

Water treatment facility            207           -       4,875           -

Transfer station

 construction                     1,775           -       3,209           -

Landfill gas-to-energy

 project                              -         208           -       1,367

MRF equipment upgrades                -          97           -       3,104

Other                               176       2,704       1,742       4,704

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

Total Growth Capital

 Expenditures                     2,158       3,423      10,415       9,833

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



Maintenance capital

 expenditures:

Vehicles, machinery /

 equipment and containers    $      903  $    5,166  $    7,249  $   15,474

Landfill construction &

 equipment                        5,561       3,810      23,655      20,614

Facilities                        1,466         714       2,245       2,704

Other                               104         162         377         487

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

Total Maintenance Capital

 Expenditures                     8,034       9,852      33,526      39,279

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



Total Growth and Maintenance

 Capital Expenditures        $   10,192  $   13,275  $   43,941  $   49,112

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



(1) Our capital expenditures are broadly defined as pertaining to either

 growth, maintenance or acquisition activities. Growth capital expenditures

 are defined as costs related to development of new airspace, permit

 expansions, and new recycling contracts along with incremental costs of

 equipment and infrastructure added to further such activities. Growth

 capital expenditures include the cost of equipment added directly as a

 result of organic business growth as well as expenditures associated with

 increasing infrastructure to increase throughput at transfer stations and

 recycling facilities. Maintenance capital expenditures are defined as

 landfill cell construction costs not related to expansion airspace, costs

 for normal permit renewals, and replacement costs for equipment due to age

 or obsolescence. Acquisition capital expenditures are defined as costs of

 equipment added directly as a result of new business growth related to an

 acquisition.



Investors:

Ned Coletta

Chief Financial Officer

(802) 772-2239



Media:

Joseph Fusco

Vice President

(802) 772-2247

http://www.casella.com



Source: Casella Waste Systems, Inc

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