Casella Waste Systems, Inc. Announces Fourth Quarter and Fiscal Year 2008 Results; Provides Fiscal Year 2009 Guidance
RUTLAND, VT, Jun 18, 2008 (MARKET WIRE via COMTEX News Network) -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported financial results for the fourth quarter and its 2008 fiscal year, and gave guidance on its 2009 fiscal year.
"This was an exciting year for our team. We made great progress on all of the operational and financial goals we set at the beginning of the year, even in the face of a weak economy in the Northeast," John W. Casella, chairman and CEO of Casella Waste Systems, said. "We exceeded our original fiscal year 2008 EBITDA* guidance and we were at the high-end of the free cash flow* guidance that we issued last June."
Fourth Quarter Results
For the quarter ended April 30, 2008, the company reported revenues of $139.6 million, up $12.9 million or 10.2 percent over the same quarter last year. The company's net loss per common share was ($0.31), versus net loss per share of ($0.80) in the same quarter last year; both quarters include non-recurring charges.
The net loss per share for the quarter ended April 30, 2008 reflects the following non-recurring charges: an impairment and closing charge of $1.4 million for the closure of the Hardwick landfill; development project charges of $0.5 million; and a $2.0 million after-tax loss from discontinued operations and the loss on disposal of discontinued operations.
Excluding the non-recurring charges outlined above, the net loss for the quarter amounted to ($4.7) million or ($0.18) per common share, as compared to a net loss of ($1.7) million or ($0.07) for the same quarter last year excluding non-recurring charges.
Operating income for the quarter was $5.5 million, reflecting the impact of the non-recurring charges outlined above, versus an operating loss of ($19.7) million in the fourth quarter last year. Excluding the non-recurring charges in both periods, operating income for the current quarter was $7.5 million, down $0.5 million or 6.3 percent over the same period last year.
Net cash provided by operating activities in the quarter was $20.1 million. The company's earnings before interest, taxes, depreciation and amortization, Hardwick impairment and closing charge, and development project charges (EBITDA*) were $26.2 million, up $1.0 million or 4.2 percent over the same quarter last year.
Fiscal 2008 Results
For the fiscal year ended April 30, 2008, the company reported revenues of $579.5 million, up $48.2 million or 9.1 percent over fiscal year 2007. The fiscal year net loss per common share was ($0.31) versus a net loss per share of ($0.85) in the previous fiscal year.
The net loss per share for the fiscal year ended April 30, 2008 reflects the following non-recurring charges: an impairment and closing charge of $1.4 million for the closure of the Hardwick landfill; development project charges of $0.5 million; a $3.8 million after-tax loss from discontinued operations and the loss on disposal of discontinued operations; and the $1.2 million expenses incurred as the result of the company's management reorganization during the third quarter of fiscal year 2008.
Excluding the non-recurring charges outlined above, the fiscal year 2008 net loss amounted to ($2.1) million or ($0.08) per common share; as compared to a net loss of ($1.8) million or ($0.07) for the same period last year excluding non-recurring charges.
The company said its GreenFiber unit continues to be severely impacted by the slowdown in the housing market. The company's income from equity method investments in fiscal year 2008 was down $7.1 million over fiscal year 2007, resulting in a negative year-over-year after tax impact of ($0.20) per share. Excluding the negative year-over-year impact from equity method investments and the above listed non-recurring charges, the fiscal year 2008 earnings per common share was $0.12 per common share.
Operating income for fiscal year 2008 was $42.6 million, reflecting the impact of the non-recurring charges noted above, versus $12.2 million for fiscal year 2007. Excluding the non-recurring charges in both years, operating income for the current year was $45.7 million, up $5.9 million or 14.8 percent over the same period last year.
The company's EBITDA* for fiscal year 2008 was $122.3 million versus $110.6 million for fiscal year 2007, up $11.7 million or 10.6 percent over the same period last year. Excluding the one-time management reorganization charge, EBITDA was $123.5 million, up $12.9 million, or 11.7 percent over the same period last year.
The company also announced that net cash provided by operating activities for fiscal year 2008 was $71.8 million. The company's free cash flow* for fiscal year 2008 was $5.3 million versus ($18.6) million for fiscal year 2007, up $23.9 million over the same period last year. As of April 30, 2008, the company had cash on hand of $2.8 million, and had an outstanding total debt level of $552.5 million.
More detailed financial results are contained in the tables accompanying this release.
2008 Highlights
"At the beginning of fiscal year 2008, we laid out a comprehensive operating and capital strategy that focused on generating positive free cash flow and improving returns," Casella said. "The main drivers of the strategy were harvesting value from landfill investments, improving operations and reducing costs, and strategically focusing on capital deployment. We have performed extremely well against these drivers during the year, improving free cash flow by $23.9 million and improving return on net assets by over 80 basis points."
Highlights of the fiscal year include:
-- the cost reduction programs launched in fiscal year 2008 have yielded
approximately $4.1 million of savings on an annualized basis, through the
reorganization of certain assets into market areas, cost savings from
improved purchasing, and specific operating initiatives;
-- during the second quarter, the company received a modification to the
existing permit for the operation of its Hakes construction and demolition
(C&D) landfill, that increased the annual permit to 457,164 tons per year
from 306,000 tons per year;
-- during the second quarter, Ontario County received a modification to
the existing permit for the operation of the municipal solid waste (MSW)
landfill that increased the annual permit to 917,694 tons per year from
612,000 tons per year;
-- during the third quarter, the company received approval from the U.S.
Environmental Protection Agency's Climate Leaders Program for a companywide
greenhouse gas emissions reduction target of ten percent over seven years,
from 2005 to 2012;
-- during the fourth quarter, the company completed the conversion of its
Camden materials processing facility from a dual-stream configuration to a
single-stream system;
-- during the fourth quarter, the company executed a 15 year operating
agreement commencing October 2008, to operate the materials processing
facility for the Resource Recovery and Recycling Authority of Southwest
Oakland County, Michigan (Detroit);
-- The company completed its plan to divest, swap, or close
underperforming and non-strategic operations amounting to over $22.0
million of annual revenues, with the sale of the Holliston, Massachusetts
transfer station on April 30, 2007; the sale of the Buffalo, New York
transfer station, hauling operation and related equipment on October 31,
2007; the termination of operations at MTS Environmental soils processing
facility in Epsom, New Hampshire during the fourth quarter of fiscal year
2008; and the pending first quarter of fiscal year 2009 sale of the
Greenville, South Carolina materials processing facility; and
-- in early June 2008, the company received a positive vote from the
Southbridge Massachusetts Board of Health to amend the landfill's site
assignment allowing the site to receive municipal solid waste (MSW) from
communities other than Southbridge, and to expand the annual permit to
405,600 tons per year from 180,960 tons per year.
Fiscal 2009 Outlook
"Looking forward to fiscal year 2009, our plan focuses on the same key factors from the past year, with a particular emphasis on improving the performance of our base operations and selectively pursuing opportunities that meet emerging customer and market needs," Casella said. "Paul Larkin joined our team as President and Chief Operating Officer in early January, and with Paul's leadership we have introduced new programs to further improve the operational performance of our businesses."
The company also announced its guidance for fiscal year 2009, which began May 1, 2008.
For fiscal year 2009, the company estimates results in the following ranges:
-- Revenues between $610.0 million and $628.0 million; -- EBITDA* between $128.0 million and $132.0 million; -- Capital expenditures between $73.0 million and $77.0 million; and -- Free cash flow* between $8.0 million and $14.0 million.
The company said the following assumptions are built into its fiscal year 2009 outlook:
-- Zero-growth in the regional economy; -- In the solid waste business, price growth of 2.0 percent, with overall volumes up 1.0 percent on increased landfill volumes at Hakes and Ontario landfills; -- In the recycling business, pricing flat, with volumes up slightly; -- One landfill gas-to-energy facility becoming fully operational during the first half of the fiscal year, construction underway on a second landfill gas-to-energy facility with operations expected to commence in the second half of the fiscal year, and construction expected to begin on two additional facilities during the first half of the fiscal year. -- Two zerosort(TM) (single-stream) conversions or upgrades planned during the fiscal year and one new materials processing facility contract commencing late in the third quarter of fiscal year 2009; -- Focus on reducing costs through operational improvements and best practice programs; and -- No acquisitions.
Free cash flow of $8.0 million to $14.0 million is based on net cash provided by operating activities of $80.0 million to $84.0 million, less estimated maintenance capital expenditures of $60.0 million, growth capital expenditures of $13.0 million to $17.0 million, and other balance sheet changes.
"As the broad reaching impacts of increasing global economic prosperity continue to drive consumption, resulting in resource constraints, our strategy to transform traditional waste streams into renewable resources is becoming more and more important to our customers," Casella said. "Over the next several years we plan to selectively pursue opportunities in waste transformation that meet emerging customer and market needs."
*Non-GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose free cash flow and earnings before interest, taxes, depreciation and amortization, Hardwick impairment and closing charge, and development project charges (EBITDA), which are non-GAAP measures.
These measures are provided because we understand that certain investors use this information when analyzing the financial position of companies in the solid waste industry, including us. Historically, these measures have been key in comparing operating efficiency of publicly traded companies in the solid waste industry, and assist investors in measuring our ability to meet capital expenditures, payments on landfill operating lease contracts, and working capital requirements. For these reasons we utilize these non-GAAP metrics to measure our performance at all levels. Free cash flow and EBITDA are not intended to replace "Net Cash Provided by Operating Activities," which is the most comparable GAAP financial measure. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as capital expenditures, payments on landfill operating lease contracts, or working capital, or to react to changes in our industry or to the economy generally. Because these measures are not calculated by all companies in the same fashion, they may not be comparable to similarly titled measures reported by other companies.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services primarily in the eastern United States.
For further information, contact Ned Coletta, director of investor relations at (802) 775-0325, or visit the Company's website at http://www.casella.com.
The Company will host a conference call to discuss these results on Thursday, June 19, 2008 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 591-4949 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems' website at http://www.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the company's website, or by calling 719-457-0820 or 888-203-1112 (conference code #4207502), until 11:59 p.m. ET on Thursday, June 26, 2008.
Safe Harbor Statement
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as the company "believes," "expects," "anticipates," "plans," "may," "will," "would," "intends," "estimates" and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's beliefs and assumptions. We cannot guarantee that we actually will achieve the plans, intentions or expectations disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of our operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in our forward-looking statements. Such risks and uncertainties include or relate to, among other things: we may be unable to reduce costs or increase revenues sufficiently to achieve estimated EBITDA and other targets; landfill operations and permit status may be affected by factors outside our control, continuing weakness in general economic conditions and poor weather conditions may affect our revenues; we may be required to incur capital expenditures in excess of our estimates; and fluctuations in the commodity pricing of our recyclables may make it more difficult for us to predict our results of operations or meet our estimates. There are a number of other important risks and uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A, "Risk Factors" in our Form 10-K for the year ended April 30, 2007. We do not necessarily intend to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except amounts per share)
Three Months Ended Twelve Months Ended
-------------------- --------------------
April 30, April 30, April 30, April 30,
2007 2008 2007 2008
--------- --------- --------- ---------
Revenues $ 126,715 $ 139,628 $ 531,325 $ 579,517
Operating expenses:
Cost of operations 84,002 94,329 347,550 383,009
General and administration 17,592 19,132 73,202 74,184
Depreciation and amortization 17,161 18,699 70,748 77,769
Hardwick impairment and
closing charge 26,892 1,400 26,892 1,400
Development project charges 752 534 752 534
--------- --------- --------- ---------
146,399 134,094 519,144 536,896
--------- --------- --------- ---------
Operating income (loss) (19,684) 5,534 12,181 42,621
Other expense/(income), net:
Interest expense, net (1) 9,683 9,658 37,127 41,505
Loss (income) from equity
method investments 927 1,532 (1,051) 6,077
Other income (220) (273) (571) (2,690)
--------- --------- --------- ---------
10,390 10,917 35,505 44,892
--------- --------- --------- ---------
Loss from continuing operations
before income taxes
and discontinued operations (30,074) (5,383) (23,324) (2,271)
Provision (benefit) for income
taxes (12,069) 456 (7,849) 1,746
--------- --------- --------- ---------
Loss from continuing operations
before discontinued operations (18,005) (5,839) (15,475) (4,017)
Discontinued Operations:
Loss from discontinued
operations, net of income
taxes (2) (3) (4) (5) (652) (289) (1,691) (1,705)
Loss on disposal of
discontinued operations, net
of income taxes (2) (3) (4) (717) (1,675) (717) (2,113)
--------- --------- --------- ---------
Net loss (19,374) (7,803) (17,883) (7,835)
Preferred stock dividend 914 - 3,588 -
--------- --------- --------- ---------
Net loss applicable to common
stockholders $ (20,288) $ (7,803) $ (21,471) $ (7,835)
========= ========= ========= =========
Common stock and common stock
equivalent shares outstanding,
assuming full dilution 25,318 25,443 25,272 25,382
========= ========= ========= =========
Net loss per common share $ (0.80) $ (0.31) $ (0.85) $ (0.31)
========= ========= ========= =========
--------- --------- --------- ---------
EBITDA (6) $ 25,121 $ 26,167 $ 110,573 $ 122,324
========= ========= ========= =========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
April 30, April 30,
ASSETS 2007 2008
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 12,366 $ 2,814
Restricted cash 73 95
Accounts receivable - trade, net of allowance
for doubtful accounts 60,363 62,233
Other current assets 21,998 30,343
------------ ------------
Total current assets 94,800 95,485
Property, plant and equipment, net of accumulated
depreciation 482,819 488,028
Goodwill 168,998 179,716
Intangible assets, net 2,217 2,608
Restricted cash 12,734 13,563
Investments in unconsolidated entities 49,969 44,617
Other non-current assets 22,556 12,070
------------ ------------
Total assets $ 834,093 $ 836,087
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 1,215 $ 2,112
Current maturities of capital lease obligations 1,104 646
Series A redeemable, convertible preferred
stock (1) 74,018 -
Accounts payable 51,122 51,731
Other accrued liabilities 60,693 58,335
------------ ------------
Total current liabilities 188,152 112,824
Long-term debt, less current maturities 476,225 550,416
Capital lease obligations, less current maturities 650 8,811
Other long-term liabilities 39,570 39,354
Stockholders' equity 129,496 124,682
------------ ------------
Total liabilities and stockholders' equity $ 834,093 $ 836,087
============ ============
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In thousands)
Twelve Months Ended
------------------------
April 30, April 30,
2007 2008
----------- -----------
Cash Flows from Operating Activities:
Net loss $ (17,883) $ (7,835)
Loss from discontinued operations, net 1,691 1,705
Loss on disposal of discontinued operations, net 717 2,113
Adjustments to reconcile net loss
to net cash provided by operating activities -
Gain on sale of equipment (806) (387)
Depreciation and amortization 70,748 77,769
Depletion of landfill operating lease obligations 7,021 6,010
Hardwick impairment and closing charge 26,892 1,400
Development project charges 752 534
Income from assets under contractual obligation (190) (1,605)
Preferred stock dividend - 1,038
Maine Energy settlement - (2,142)
Loss (income) from equity method investments (1,051) 6,077
Stock-based compensation 702 1,376
Excess tax benefit on the exercise of stock
options - (103)
Deferred income taxes (11,246) (2,373)
Changes in assets and liabilities, net of
effects of acquisitions and divestitures 3,709 (11,762)
----------- -----------
96,531 75,832
----------- -----------
Net Cash Provided by Operating Activities 81,056 71,815
----------- -----------
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired (2,750) (11,881)
Additions to property, plant and
equipment - growth (36,738) (18,950)
- maintenance (64,107) (54,224)
Payments on landfill operating lease contracts (4,995) (7,143)
Proceeds from divestitures 7,383 2,373
Restricted cash from revenue bond issuance 5,535 -
Other (1,598) 4,138
----------- -----------
Net Cash Used In Investing Activities (97,270) (85,687)
----------- -----------
Cash Flows from Financing Activities:
Proceeds from long-term borrowings 267,525 301,200
Principal payments on long-term debt (244,750) (223,692)
Deferred financing costs (582) (554)
Redemption of Series A redeemable, convertible
preferred stock - (75,056)
Proceeds from exercise of stock options 1,608 1,367
Excess tax benefit on the exercise of stock
options - 103
----------- -----------
Net Cash Provided by Financing Activities 23,801 3,368
----------- -----------
Cash Provided by (Used in) Discontinued Operations (2,646) 952
----------- -----------
Net (decrease) increase in cash and cash
equivalents
4,941 (9,552)
Cash and cash equivalents, beginning of period 7,425 12,366
----------- -----------
Cash and cash equivalents, end of period $ 12,366 $ 2,814
=========== ===========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES Unaudited (In thousands)
Note 1: The Company's Series A redeemable, convertible preferred stock ("Series A preferred") contained a mandatory redemption provision effective August 11, 2007. As the Company did not anticipate that the Series A preferred would be converted to Class A Common Stock by the redemption date, the Company reflected the redemption value of the Series A preferred as a current liability at April 30, 2007. Consistent with this presentation, the Company has recorded the Series A preferred dividend as interest expense in the twelve months ended April 30, 2008. The Series A preferred was redeemed effective August 11, 2007 at an aggregate redemption price of $75,057.
Note 2: The Company divested the assets of the Holliston Transfer Station ("Holliston Transfer") during the quarter ended April 30, 2007. The transaction required discontinued operations treatment under SFAS No. 144 , Accounting for Impairment or Disposal of Long-Lived Assets ("SFAS No.144"). During the quarter ended April 30, 2008, the Company recorded the true-up of certain contingent liabilities associated with the Holliston transaction. For the three and twelve months ended April 30, 2007 and 2008, the Company recorded a loss from discontinued operations (net of tax) of ($230), ($86), ($558) and ($86), respectively. For the three and twelve months ended April 30, 2007 and 2008, the company recorded a gain (loss) on disposal of discontinued operations (net of tax) of ($717), $319, ($717) and $319, respectively.
Note 3: The Company divested its Buffalo, N.Y. transfer station, hauling operation and related equipment during the quarter ended October 31, 2007. The transaction required discontinued operations treatment under SFAS No. 144, therefore the operating results of these operations have been reclassified from continuing to discontinued operations for the three and twelve months ended April 30, 2007. During the quarter ended April 30, 2008, the Company recorded the true-up of working capital associated with the transaction. For the three and twelve months ended April 30, 2007 and 2008, the Company recorded a loss from discontinued operations (net of tax) of ($421), ($72), ($1,422) and ($883), respectively. For the three and twelve months ended April 30, 2008, the company recorded a loss on disposal of discontinued operations (net of tax) of ($55) and ($493), respectively.
Note 4: The Company terminated its operation of MTS Environmental, a soils processing operation in the quarter ended April 30, 2008. The transaction required discontinued operations treatment under SFAS No. 144, therefore the operating results of this operation have been reclassified from continuing to discontinued operations for the three and twelve months ended April 30, 2007. For the three and twelve months ended April 30, 2007 and 2008, the Company recorded a loss from discontinued operations (net of tax) of ($108), ($102), ($56) and ($915), respectively. For the three and twelve months ended April 30, 2008, the company recorded a loss on disposal of discontinued operations (net of tax) of ($1,939).
Note 5: The Company has deemed its FCR Greenville operation as held for sale effective April 30, 2008 and has classified this as a discontinued operation pursuant to the requirements of SFAS No 144. The operating results have been reclassified from continuing to discontinued operations for the three and twelve months ended April 30, 2007. For the three and twelve months ended April 30, 2007 and 2008, the Company recorded income (loss) from discontinued operations (net of tax) of $107, ($29), $345 and $179, respectively.
Note 6: Non-GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose earnings before interest, taxes, depreciation and amortization, Hardwick impairment and closing charge and development project charges (EBITDA) and free cash flow, which are non-GAAP measures.
These measures are provided because we understand that certain investors use this information when analyzing the financial position of the solid waste industry, including us. Historically, these measures have been key in comparing operating efficiency of publicly traded companies within the industry, and assist investors in measuring our ability to meet capital expenditures, payments on landfill operating lease contracts and working capital requirements. For these reasons, we utilize these non-GAAP metrics to measure our performance at all levels. EBITDA and free cash flow are not intended to replace "Net cash provided by operating activities", which is the most comparable GAAP financial measure. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as working capital, payments on landfill operating lease contracts or capital expenditures, or to react to changes in our industry or to the economy generally. Because these measures are not calculated by all companies in the same fashion, they may not be comparable to similarly titled measures reported by other companies.
Following is a reconciliation of EBITDA to Net Cash Provided by Operating
Activities:
Three Months Ended Twelve Months Ended
-------------------- --------------------
April 30, April 30, April 30, April 30,
2007 2008 2007 2008
--------- --------- --------- ---------
Net Cash Provided by Operating
Activities $ 24,608 $ 20,137 $ 81,056 $ 71,815
Changes in assets and liabilities,
net of effects of acquisitions
and divestitures (7,182) (3,791) (3,709) 11,762
Deferred income taxes 11,710 1,062 11,246 2,373
Stock-based compensation (191) (354) (702) (1,376)
Excess tax benefit on the
exercise of stock options (145) (8) - 103
Provision (benefit) for income
taxes (12,069) 456 (7,849) 1,746
Interest expense, net 9,683 9,658 37,127 41,505
Preferred stock dividend - - - (1,038)
Depletion of landfill operating
lease obligations (1,478) (1,195) (7,021) (6,010)
Income from assets under
contractual obligation 190 142 190 1,605
Gain on sale of equipment 215 333 806 387
Other income, net (220) (273) (571) (548)
--------- --------- --------- ---------
EBITDA $ 25,121 $ 26,167 $ 110,573 $ 122,324
========= ========= ========= =========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
Unaudited
(In thousands)
Following is a reconciliation of Free Cash Flow to Net Cash Provided
by Operating Activities:
Three Months Ended Twelve Months Ended
-------------------- --------------------
April 30, April 30, April 30, April 30,
2007 2008 2007 2008
--------- --------- --------- ---------
EBITDA $ 25,121 $ 26,167 $ 110,573 $ 122,324
Add (deduct): Cash interest (14,491) (13,923) (34,307) (40,792)
Capital
expenditures (24,464) (13,996) (100,845) (73,174)
Cash taxes (468) 425 (2,708) (1,426)
Depletion of landfill
operating lease
obligations 1,478 1,195 7,021 6,010
Change in working
capital, adjusted
for non-cash items 12,729 6,178 1,648 (7,605)
--------- --------- --------- ---------
FREE CASH FLOW (95) 6,046 (18,618) 5,337
Add (deduct): Capital expenditures 24,464 13,996 100,845 73,174
Other 239 95 (1,171) (6,696)
--------- --------- --------- ---------
Net Cash Provided by Operating
Activities $ 24,608 $ 20,137 $ 81,056 $ 71,815
========= ========= ========= =========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA TABLES
(Unaudited)
(In thousands)
Amounts of the Company's total revenues attributable to services provided
are as follows:
Three Months Ended Twelve Months Ended
April 30, April 30,
------------------- -------------------
2007 2008 2007 2008
--------- --------- --------- ---------
Collection $ 59,350 $ 63,232 $ 258,334 $ 266,214
Landfill / disposal facilities 23,875 24,087 106,465 106,234
Transfer 4,786 5,913 23,559 26,556
Recycling 38,704 46,396 142,967 180,513
--------- --------- --------- ---------
Total revenues $ 126,715 $ 139,628 $ 531,325 $ 579,517
========= ========= ========= =========
Components of revenue growth for the three months ended April 30, 2008
compared to the three months ended April 30, 2007:
Percentage
-----------
Solid Waste Operations (1) Price 1.7%
Volume 3.3%
Commodity price and volume 0.6%
-----------
Total growth - Solid Waste Operations 5.6%
===========
FCR Operations (1) Price 8.2%
Volume 13.6%
-----------
Total growth - FCR Operations 21.8%
===========
Rollover effect of acquisitions (2) 1.0%
Total revenue growth (2) 10.2%
(1) - Calculated as a percentage of segment revenues.
(2) - Calculated as a percentage of total revenues.
Solid Waste Internalization Rates by Region:
Three Months Twelve Months
Ended April 30, Ended April 30,
--------------- ---------------
2007(1) 2008 2007(1) 2008
------ ------ ------ ------
North Eastern region 57.8% 64.4% 56.5% 60.8%
South Eastern region 30.0% 50.5% 29.2% 33.5%
Central region 78.5% 77.5% 77.7% 78.9%
Western region 58.1% 62.3% 56.8% 61.3%
Solid Waste internalization 59.9% 65.2% 58.6% 61.6%
(1) Internalization rates for the three and twelve months ended April 30,
2007 have been revised to exclude the activity associated with the Buffalo
Hauling and Buffalo Transfer as well as MTS Environmental. The Company
divested the Buffalo operations during the quarter ended October 31, 2007.
The Company terminated operations at MTS Environmental during the quarter
ended April 30, 2008.
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA TABLES
(Unaudited)
(In thousands)
US GreenFiber (50% owned) Financial Statistics:
Three Months Ended Twelve Months Ended
April 30, April 30,
-------------------- --------------------
2007 2008 2007 2008
--------- --------- --------- ---------
Revenues $ 40,758 $ 31,709 $ 186,284 $ 151,635
Net (loss) income (1,191) (2,551) 4,227 (8,103)
Cash flow from operations 1,435 2,834 14,511 10,178
Net working capital changes (348) 2,503 (406) 6,597
EBITDA $ 1,783 $ 331 $ 14,917 $ 3,581
As a percentage of revenue:
Net (loss) income -2.9% -8.0% 2.3% -5.3%
EBITDA 4.4% 1.0% 8.0% 2.4%
Components of Growth versus Maintenance Capital Expenditures (1):
Three Months Ended Twelve Months Ended
April 30, April 30,
------------------- -------------------
2007 2008 2007 2008
--------- --------- --------- ---------
Growth Capital Expenditures:
Landfill Development $ 8,084 $ 1,271 $ 22,849 $ 11,896
MRF Equipment Upgrades 1,971 3,282 8,209 4,053
Other 1,537 117 5,680 3,001
--------- --------- --------- ---------
Total Growth Capital Expenditures 11,592 4,670 36,738 18,950
Maintenance Capital Expenditures:
Vehicles, Machinery / Equipment
and Containers 5,291 2,809 26,189 12,326
Landfill Construction & Equipment 5,649 4,385 32,500 30,126
Facilities 1,577 1,485 4,134 9,783
Other 355 647 1,284 1,989
--------- --------- --------- ---------
Total Maintenance Capital
Expenditures 12,872 9,326 64,107 54,224
--------- --------- --------- ---------
--------- --------- --------- ---------
Total Capital Expenditures $ 24,464 $ 13,996 $ 100,845 $ 73,174
========= ========= ========= =========
(1) The Company's capital expenditures are broadly defined as pertaining to
either growth or maintenance activities. Growth capital expenditures are
defined as costs related to development of new airspace, permit expansions,
new recycling contracts along with incremental costs of equipment and
infrastructure added to further such activities. Growth capital
expenditures include the cost of equipment added directly as a result of
new business as well as expenditures associated with increasing
infrastructure to increase throughput at transfer stations and recycling
facilities. Growth capital expenditures also include those outlays
associated with acquiring landfill operating leases, which do not meet the
operating lease payment definition, but which were included as a commitment
in the successful bid. Maintenance capital expenditures are defined as
landfill cell construction costs not related to expansion airspace, costs
for normal permit renewals and replacement costs for equipment due to age
or obsolescence.
Ned Coletta Director of Investor Relations (802) 775-0325 http://www.casella.com
SOURCE: Casella Waste Systems, Inc.
http://www.casella.com
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