Casella Waste Systems, Inc. Announces Fourth Quarter and Fiscal Year 2009 Results; Provides Fiscal Year 2010 Guidance
RUTLAND, VT, Jun 15, 2009 (MARKETWIRE 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 2009 fiscal year, and gave guidance on its 2010 fiscal year.
Highlights of the quarter include:
-- Free cash flow for the fiscal year was $8.8 million, within the original guidance range; -- Adjusted EBITDA* for the fiscal year was $115.6 million; and -- Solid waste operations continue to perform well through the economic slowdown; the Recycling group rebounds after volatile commodity pricing.
"In spite of the collapse of the global recycling commodity markets mid-way through our 2009 fiscal year and an extended economic contraction, our team executed well against the factors within our control to meet our original free cash flow goals," John W. Casella, chairman and CEO of Casella Waste Systems, said.
"During the third and fourth quarters we experienced significant declines in commodity pricing and lower solid waste volumes in more economically sensitive markets," Casella said. "To meet our free cash flow target, we acted swiftly and thoughtfully to improve all aspects of our operating structure and daily business practices, and we successfully implemented programs that reduced costs and improved asset utilization.
"In addition, we offset downward revenue pressure by increasing pricing where supported by the market, flexing operations to volumes, and reducing capital spending," Casella said. "I'm confident that we are well positioned as an operationally efficient, cash flow focused company not only for this economic downturn, but also for an anticipated economic recovery and growth environment."
Fourth Quarter Results
For the quarter ended April 30, 2009, the company reported revenues of $117.6 million, down $22.0 million or 15.7 percent over the same quarter last year. Approximately fifty three percent of the decline was due to a drop in recycling revenues, down $11.6 million over the same quarter last year primarily as the result of lower commodity prices.
Solid waste revenues including the company's major accounts programs were down approximately 11.0 percent from the same quarter last year. Excluding fuel, oil and environmental recovery fees, pricing was up 3.4 percent, and volumes were down 5.9 percent (excluding revenue losses due to the planned end-of-life decline of landfill volumes at the Pine Tree landfill in Hampden, Maine; the planned closure of the Colebrook, NH landfill in early August 2008; and the idling of a C&D processing facility in October 2008).
The company's net loss applicable to common shareholders was ($68.5) million, or ($2.67) per common share, compared to a net loss of ($7.8) million, or ($0.31) per share for the same quarter last year.
Reported results for the 2009 quarter include a non-cash goodwill impairment charge of $55.3 million, an environmental remediation charge of $1.5 million, development project charges of $0.4 million, severance and reorganization charges of $1.3 million, and a charge of $24.1 million for the increase of the non-cash deferred tax valuation allowance. Reported results for the comparable 2008 period include an impairment and closing charge of $1.4 million for the closure of the Hardwick landfill, development project charge of $0.5 million, a charge of $0.4 million for the increase of the non-cash deferred tax valuation allowance, and a $2.0 million after-tax loss from discontinued operations and the loss on disposal of discontinued operations.
Excluding the charges outlined above, the net loss from continuing operations for the quarter amounted to ($0.8) million or ($0.03) per common share, as compared to a net loss of ($4.3) million or ($0.17) per common share for the same quarter last year.
Net cash provided by operating activities in the quarter was $26.9 million, compared to $19.8 million for the same quarter last year. Net cash provided by operating activities was favorably impacted by a $13.9 million increase due to the dissolution of the company's captive insurance company during the quarter.
The company's earnings before interest, taxes, depreciation and amortization (EBITDA*), adjusted for goodwill impairment, environmental remediation charge, severance and reorganization charges, and development project charge (Adjusted EBITDA* which included adjustments to EBITDA for $57.2 million) was $23.3 million for the quarter, down $2.9 million from the same quarter last year. The company's free cash flow* in the quarter was $4.2 million, compared to $6.0 million in the same quarter last year.
Fiscal 2009 Results
For the fiscal year ended April 30, 2009, the company reported revenues of $554.2 million, down $25.3 million or 4.4 percent over fiscal year 2008. The company's net loss applicable to common shareholders was ($68.0) million, or ($2.66) per common share, for fiscal year 2009, compared to a net loss of ($7.8) million, or ($0.31) per share, for the same period last year.
Reported results for fiscal year 2009 include a non-cash goodwill impairment charge of $55.3 million, an environmental remediation charge of $4.4 million, development project charges of $0.4 million, severance and reorganization charges of $1.4 million, and a charge of $24.1 million for the increase of the non-cash deferred tax valuation allowance. Reported results for the comparable 2008 period include an impairment and closing charge of $1.4 million for the closure of the Hardwick landfill, development project charge of $0.5 million, severance and reorganization charges of $1.2 million, a charge of $0.4 million for the increase of the non-cash deferred tax valuation allowance, and a $3.8 million after-tax loss from discontinued operations and the loss on disposal of discontinued operations.
Excluding the charges outlined above, the fiscal year 2009 net income from continuing operations amounted to $1.3 million or $0.05 per common share, as compared to a net loss of ($1.7) million or ($0.07) per common share for fiscal year 2008.
Net cash provided by operating activities for fiscal year 2009 was $77.5 million, compared to $71.2 million for fiscal year 2008. Net cash provided by operating activities was favorably impacted by a $13.9 million increase due to the dissolution of the company's captive insurance company during the fiscal year.
The company's earnings before interest, taxes, depreciation, amortization (EBITDA*), adjusted for goodwill impairment, environmental remediation, severance and reorganization charges, and development project charge (Adjusted EBITDA*) was $115.6 million for fiscal year 2009, compared to $123.5 million in fiscal year 2008.
The company's free cash flow* for fiscal year 2009 was $8.8 million versus $5.3 million for fiscal year 2008. As of April 30, 2009, the company had cash on hand of $2.3 million, and had an outstanding total debt level of $562.5 million. More detailed financial results are contained in the tables accompanying this release.
During the fourth quarter of fiscal year 2009, the company recorded an additional environmental remediation charge of $1.5 million related to a scrap yard and transfer station owned by the company, in recognition of the declared bankruptcy of General Motors Corporation, one of the other responsible parties to this obligation.
In the fourth quarter of fiscal year 2009, the company recorded a severance and reorganization charge of $1.4 million which consisted of employee severance and benefit costs, and operating lease costs, as a result of the market area consolidation of several operating units, the elimination of one region office, and other workforce reductions.
Fiscal 2010 Outlook
"In fiscal year 2010, our emphasis is on further improving cash flows through increased pricing, cost controls and operational efficiencies, and focused capital deployment," Casella said. "Our plan for the fiscal year assumes that commodity prices rebound slightly and economic activity remains soft, essentially mirroring the conditions that our business experienced during the last six months of our fiscal year 2009."
The company provided guidance for its fiscal year 2010, which began May 1, 2009, by estimating results in the following ranges:
-- Revenues between $510.0 million and $530.0 million; -- EBITDA* between $111.0 million and $117.0 million; -- Capital Expenditures between $48.0 million and $54.0 million; and -- Free Cash Flow (redefined for fiscal year 2010) between $0.0 million and $6.0 million. Please note that we have changed our definition of "Free Cash Flow" for fiscal year 2010 to net cash provided by operating activities; less capital expenditures; less payments on landfill operating leases; less assets acquired through financing leases. We plan to report free cash flow on this basis in the future.
The company said the following assumptions are built into its fiscal year 2010 outlook:
-- Zero-growth in the regional economy from the fourth quarter fiscal year 2009; -- In the solid waste business, overall revenue declines between negative 3.0 percent and negative 6.0 percent, with price projected to outpace CPI; volumes down; fuel and oil recovery fees down; and the roll-over impacts noted below included; -- In the recycling business, overall revenue declines between negative 16.0 percent and negative 20.0 percent, with price down and volumes flat; -- In the major accounts business, overall revenue growth of between 5.0 percent and 10.0 percent, principally through volume growth; -- The roll-over impacts of fiscal year 2009 growth projects are included in the above growth targets. For the solid waste business this includes the two new landfill gas-to-energy plants that came online in the third quarter; for FCR this includes a new contract that began in the third quarter and the two Zero-Sort Recycling(TM) conversions that were completed in the fourth quarter; and -- No acquisitions.
Free cash flow of $0.0 million to $6.0 million is based on net cash provided by operating activities of $61.0 million to $67.0 million, less estimated capital expenditures of $48.0 million to $54.0 million, and payments on landfill operating leases of approximately $10.0 million.
*Non-GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for severance and reorganization charges, goodwill impairment charge, environmental remediation charge as well as development project charges (Adjusted EBITDA) and free cash flow, which are non-GAAP measures. In addition we disclose Adjusted net income (loss) from continuing operations which reflects adjustments to Net income (loss) per common share for the tax effected impact of severance and reorganization charges, goodwill impairment charge, environmental remediation charge, development project charges and tax valuation allowance. In the future we may modify items considered in defining free cash flow and adjusted EBITDA if we believe it will help the understanding of our financial performance.
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, EBITDA and Adjusted EBITDA are not intended to replace "Net Cash Provided by Operating Activities," which is the most comparable GAAP financial measure. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as capital expenditures, payments on landfill operating lease contracts, or working capital, or to react to changes in our industry or to the economy generally. Because these measures are not calculated by all companies in the same fashion, they may not be comparable to similarly titled measures reported by other companies.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services primarily in the eastern United States.
For further information, contact Ned Coletta, director of investor relations at (802) 772-2239, or visit the Company's website at http://www.casella.com.
The Company will host a conference call to discuss these results on Tuesday, June 16, 2009 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-7915 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 #7644674), until 11:59 p.m. ET on Tuesday, June 23, 2009.
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: current economic conditions have adversely affected our revenues and our operating margin and will impact our efforts to refinance our senior credit facility; the impact of the current economic environment on our operating performance or our ability to refinance debt or gain covenant wavers could cause us to be in default of certain financial covenants under the existing senior credit facility; 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; 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, 2009.
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,
2008 2009 2008 2009
--------- --------- --------- ---------
Revenues $ 139,628 $ 117,647 $ 579,517 $ 554,241
Operating expenses:
Cost of operations 94,329 78,528 383,009 372,178
General and administration 19,132 17,173 74,184 67,846
Depreciation and amortization 18,699 16,668 77,769 72,677
Goodwill impairment charge - 55,286 - 55,286
Environmental remediation
charge - 1,533 - 4,356
Hardwick impairment and
closing charge 1,400 - 1,400 -
Development project charge 534 375 534 355
--------- --------- --------- ---------
134,094 169,563 536,896 572,698
--------- --------- --------- ---------
Operating (loss) income 5,534 (51,916) 42,621 (18,457)
Other expense/(income), net:
Interest expense, net (1) 9,658 9,217 41,505 39,039
Loss (income) from equity
method investments 1,532 247 6,077 2,157
Other income (273) (244) (2,690) (792)
--------- --------- --------- ---------
10,917 9,220 44,892 40,404
--------- --------- --------- ---------
Loss from continuing operations
before income taxes
and discontinued operations (5,383) (61,136) (2,271) (58,861)
Provision for income taxes 456 7,314 1,746 9,119
--------- --------- --------- ---------
Loss from continuing operations
before discontinued operations (5,839) (68,450) (4,017) (67,980)
Discontinued Operations:
Loss from discontinued
operations, net of income
taxes (2) (289) - (1,705) (11)
Loss on disposal of
discontinued operations, net
of income taxes (2) (1,675) - (2,113) (34)
--------- --------- --------- ---------
Net loss applicable to common
stockholders $ (7,803) $ (68,450) $ (7,835) $ (68,025)
========= ========= ========= =========
Common stock and common stock
equivalent shares outstanding,
assuming full dilution 25,415 25,667 25,382 25,584
========= ========= ========= =========
Net loss per common share $ (0.31) $ (2.67) $ (0.31) $ (2.66)
========= ========= ========= =========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
April 30, April 30,
ASSETS 2008 2009
--------- ---------
CURRENT ASSETS:
Cash and cash equivalents $ 2,814 $ 1,838
Restricted cash 95 508
Accounts receivable - trade, net of allowance for
doubtful accounts 62,233 51,296
Other current assets 30,343 23,093
--------- ---------
Total current assets 95,485 76,735
Property, plant and equipment, net of accumulated
depreciation 488,028 490,360
Goodwill 179,716 125,709
Intangible assets, net 2,608 2,635
Restricted cash 13,563 127
Investments in unconsolidated entities 44,617 41,798
Other non-current assets 12,070 13,598
--------- ---------
Total assets $ 836,087 $ 750,962
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 2,758 $ 522,467
Current maturities of financing lease obligations - 1,344
Accounts payable 51,731 34,623
Other accrued liabilities 58,335 39,350
--------- ---------
Total current liabilities 112,824 597,784
Long-term debt, less current maturities 559,227 26,396
Financing lease obligations - 12,281
Other long-term liabilities 39,354 48,191
Stockholders' equity 124,682 66,310
--------- ---------
Total liabilities and stockholders' equity $ 836,087 $ 750,962
========= =========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In thousands)
Twelve Months Ended
--------------------
April 30, April 30,
2008 2009
--------- ---------
Cash Flows from Operating Activities:
Net loss $ (7,835) $ (68,025)
Loss from discontinued operations, net 1,705 11
Loss on disposal of discontinued operations, net 2,113 34
Adjustments to reconcile net loss
to net cash provided by operating activities -
Gain on sale of equipment (387) (352)
Depreciation and amortization 77,769 72,677
Depletion of landfill operating lease obligations 6,010 6,416
Goodwill impairment - 55,286
Environmental remediation charge - 4,356
Hardwick impairment and closing charges 1,400 -
Development project charges 534 355
Income from assets under contractual obligation (1,605) (162)
Preferred stock dividend 1,038 -
Amortization of premium on senior notes (625) (675)
Maine Energy settlement (2,142) -
Loss from equity method investments 6,077 2,157
Stock-based compensation 1,376 1,679
Excess tax benefit on the exercise of stock
options (103) (162)
Deferred income taxes (2,373) 8,806
Changes in assets and liabilities, net of
effects of acquisitions and divestitures (11,762) (4,881)
--------- ---------
75,207 145,500
--------- ---------
Net Cash Provided by Operating Activities 71,190 77,520
--------- ---------
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired (11,881) (2,394)
Additions to property, plant and equipment
- growth (18,950) (10,570)
- maintenance (54,224) (47,166)
Payments on landfill operating lease contracts (7,143) (5,102)
Proceeds from divestitures 2,373 670
Other 4,138 (854)
--------- ---------
Net Cash Used In Investing Activities (85,687) (65,416)
--------- ---------
Cash Flows from Financing Activities:
Proceeds from long-term borrowings 301,200 127,600
Principal payments on long-term debt (223,067) (142,003)
Deferred financing costs (554) (348)
Redemption of Series A redeemable, convertible
preferred stock (75,056) -
Proceeds from exercise of stock options 1,367 1,462
Excess tax benefit on the exercise of stock options 103 162
--------- ---------
Net Cash (Used in) Provided by Financing
Activities 3,993 (13,127)
--------- ---------
Cash Provided by Discontinued Operations 952 47
--------- ---------
Net decrease in cash and cash equivalents (9,552) (976)
Cash and cash equivalents, beginning of period 12,366 2,814
--------- ---------
Cash and cash equivalents, end of period $ 2,814 $ 1,838
========= =========
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
(In thousands)
Note 1: The Company's Series A redeemable, convertible preferred stock ("Series A preferred") contained a mandatory redemption provision effective August 11, 2007. As the Company did not anticipate that the Series A preferred would be converted to Class A Common Stock by the redemption date, the Company reflected the redemption value of the Series A preferred as a current liability. Consistent with this presentation, the Company recorded the Series A preferred dividend as interest expense in the three and six months ended October 31, 2007. The Series A preferred was redeemed effective August 11, 2007 at an aggregate redemption price of $75,056.
Note 2: In fiscal year 2007, the Company completed the sale of the assets of the Holliston Transfer Station in the Eastern region for cash sale proceeds of $7,383. A loss amounting to $717 (net of tax) was recorded to loss on disposal of discontinued operations in fiscal year 2007. In fiscal year 2008 the Company recorded the true-up of certain contingent liabilities associated with the Holliston transaction amounting to a gain of $319 (net of tax) recorded to loss on disposal of discontinued operations and also completed the sale of the Company's Buffalo, N.Y. transfer station, hauling operation and related equipment in the Western region for proceeds of $4,873 including a note receivable for $2,500 and net cash proceeds of $2,373. A loss amounting to $493 (net of tax) has been recorded to loss on disposal of discontinued operations in fiscal year 2008.
The Company terminated its operation of MTS Environmental, a soils processing operation in the Eastern region, in fiscal year 2008. A charge was recorded amounting to $3,247 associated with the abandonment. Included in this charge was the write off of the carrying value of assets along with costs associated with vacating the site. A loss amounting to $1,939 (net of tax) has been recorded to loss on disposal of discontinued operations in fiscal year 2008. As of April 30, 2008, the Company also deemed its FCR Greenville operation as held for sale and classified this operation as a discontinued operation pursuant to the requirements of SFAS No 144, Accounting for the Impairment or Disposal of Long-Lived Assets ("SFAS No. 144"). The divestiture was completed in June 2008 for cash proceeds of $670. A loss amounting to $34 (net of tax) has been recorded to loss on disposal of discontinued operations in fiscal year 2009. The operating results of the operations discussed above, including those related to prior years, have been reclassified from continuing to discontinued operations in the accompanying consolidated financial statements.
The operating results of the operations discussed above, including those related to prior years, have been reclassified from continuing to discontinued operations in the accompanying consolidated financial statements.
Note 3: Non - GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for severance and reorganization charges, goodwill impairment charge, environmental remediation charge as well as development project charges (Adjusted EBITDA) and free cash flow, which are non-GAAP measures. In addition we disclose Adjusted net income (loss) from continuing operations which reflects adjustments to Net income (loss) per common share for the tax effected impact of severance and reorganization charges, goodwill impairment charge, environmental remediation charge, development project charges and tax valuation allowance.
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, Adjusted EBITDA and Free Cash Flow are not intended to replace "Net cash provided by operating activities", which is the most comparable GAAP financial measure. We also disclose Adjusted net income (loss) per common share from continuing operations which is reconciled to "Net income (loss) per common share", which is the most comparable GAAP measure. Adjusted net income (loss) per common share from continuing operations is not intended to replace "Net income (loss) per common share". 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 Adjusted EBITDA and EBITDA to Net Cash Provided by Operating Activities:
Three Months Ended Twelve Months Ended
-------------------- --------------------
April 30, April 30, April 30, April 30,
2008 2009 2008 2009
--------- --------- --------- ---------
Net Cash Provided by Operating
Activities $ 19,782 $ 26,887 $ 71,190 $ 77,520
Changes in assets and
liabilities, net of effects
of acquisitions and
divestitures (3,597) (12,527) 11,762 4,881
Stock-based compensation, net
of excess tax benefit on
exercise of options (362) (291) (1,273) (1,517)
Provision for income taxes, net
of deferred taxes 1,518 2 4,119 313
Net interest expense plus
amortization of premium on
senior notes 9,819 9,391 42,130 39,714
Preferred stock dividend - - (1,038) -
Depletion of landfill operating
lease obligations (1,195) (1,398) (6,010) (6,416)
Income from assets under
contractual obligation 142 48 1,605 162
Severance and reorganization
charges - 1,325 1,163 1,370
Gain on sale of equipment and
other income, net 60 (166) (161) (440)
--------- --------- --------- ---------
Adjusted EBITDA (3) 26,167 23,271 123,487 115,587
Goodwill impairment charge - (55,286) - (55,286)
Environmental remediation
charge - (1,533) - (4,356)
Hardwick impairment and closing
charge (1,400) - (1,400) -
Development project charge (534) (375) (534) (355)
--------- --------- --------- ---------
EBITDA (3) $ 24,233 $ (33,923) $ 121,553 $ 55,590
========= ========= ========= =========
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,
2008 2009 2008 2009
--------- --------- --------- ---------
Adjusted EBITDA $ 26,167 $ 23,271 $ 123,487 $ 115,587
Add (deduct):
Cash interest (13,923) (14,641) (40,792) (40,623)
Capital expenditures (13,996) (8,157) (73,174) (57,736)
Cash taxes 425 693 (1,426) 332
Depletion of landfill
operating lease
obligations 1,195 1,398 6,010 6,416
Change in working capital,
adjusted for non-cash
items 6,178 1,611 (8,768) (15,204)
--------- --------- --------- ---------
FREE CASH FLOW 6,046 4,175 5,337 8,772
Add (deduct):
Capital expenditures 13,996 8,157 73,174 57,736
Other (260) 14,555 (7,321) 11,012
--------- --------- --------- ---------
Net Cash Provided by Operating
Activities $ 19,782 $ 26,887 $ 71,190 $ 77,520
========= ========= ========= =========
Following details the Earnings per Share impact of various charges to
earnings. Adjustments to Earnings per Share are net of taxes:
Net loss per common share $ (0.31) $ (2.67) $ (0.31) $ (2.66)
Add:
Severance and
reorganization charges - 0.03 0.03 0.03
Goodwill impairment charge - 1.62 - 1.63
Environmental remediation
charge - 0.04 - 0.10
Hardwick impairment and
closing charge 0.03 - 0.03 -
Development project charge 0.01 0.01 0.01 0.01
Tax valuation allowance 0.02 0.94 0.02 0.94
Loss from discontinued
operations 0.01 - 0.07 -
Loss on disposal of
discontinued operations 0.07 - 0.08 -
--------- --------- --------- ---------
Adjusted net income (loss) per
common share from continuing
operations $ (0.17) $ (0.03) $ (0.07) $ 0.05
========= ========= ========= =========
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,
------------------- -------------------
2008 2009 2008 2009
--------- --------- --------- ---------
Collection $ 64,321 $ 59,418 $ 270,075 $ 261,541
Landfill / disposal facilities 24,087 21,356 106,234 104,451
Transfer 5,598 6,713 26,241 30,901
Recycling 45,622 30,160 176,967 157,348
--------- --------- --------- ---------
Total revenues $ 139,628 $ 117,647 $ 579,517 $ 554,241
========= ========= ========= =========
Components of revenue growth for the three months ended April 30, 2009
compared to the three months ended April 30, 2008:
Percentage
Solid Waste
Operations (1) Core price 3.4%
Fuel, oil and environmental recovery fee -2.0%
Volume -10.9%
Commodity price and volume -1.4%
-----------
Total growth - Solid Waste Operations -10.9%
===========
FCR Operations (1) Price -26.0%
Volume -8.2%
-----------
Total growth - FCR Operations -34.2%
===========
Rollover effect of acquisitions (2) 0.3%
Total revenue growth (2) -15.7%
(1) - Calculated as a percentage of segment revenues.
(2) - Calculated as a percentage of total revenues.
Solid Waste Internalization Rates by Region:
Three Months Ended Twelve Months Ended
April 30, April 30,
-------------------- --------------------
2008 (1) 2009 2008 (1) 2009
--------- --------- --------- ---------
Eastern region 59.4% 48.1% 49.9% 49.2%
Central region 77.5% 77.4% 78.9% 78.9%
Western region 62.3% 66.5% 61.3% 66.0%
Solid Waste internalization 66.1% 62.7% 62.8% 63.7%
(1) Eastern region internalization rates for the three and twelve months
ended April 30, 2008 have been revised to exclude the activity
associated with MTS Environmental. The Company terminated operations
at MTS Environmental during the quarter ended April 30, 2008.
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA TABLES
(Unaudited)
(In thousands)
US GreenFiber Financial Statistics (as reported):
Three Months Ended Twelve Months Ended
April 30, April 30,
-------------------- --------------------
2008 2009 2008 2009
--------- --------- --------- ---------
Revenues $ 31,709 $ 27,657 $ 151,635 $ 129,810
Net loss (2,551) (266) (8,103) (4,315)
Cash flow from operations 2,834 1,519 10,178 10,910
Net working capital changes 2,503 (1,178) 6,597 3,515
Adjusted EBITDA $ 331 $ 2,697 $ 3,581 $ 7,395
As a percentage of revenue:
Net loss -8.0% -1.0% -5.3% -3.3%
Adjusted EBITDA 1.0% 9.8% 2.4% 5.7%
Components of Growth versus Maintenance Capital Expenditures (1):
Three Months Twelve Months
Ended April 30, Ended April 30,
----------------- -----------------
2008 2009 2008 2009
-------- -------- -------- --------
Growth Capital Expenditures:
Landfill Development $ 1,271 $ - $ 11,896 $ 6,642
MRF Equipment Upgrades 3,282 - 4,053 1,310
Other 117 405 3,001 2,618
-------- -------- -------- --------
Total Growth Capital Expenditures 4,670 405 18,950 10,570
-------- -------- -------- --------
Maintenance Capital Expenditures:
Vehicles, Machinery / Equipment and
Containers 2,809 1,485 12,326 14,430
Landfill Construction & Equipment 4,385 5,601 30,126 28,325
Facilities 1,485 353 9,783 2,642
Other 647 313 1,989 1,769
-------- -------- -------- --------
Total Maintenance Capital Expenditures 9,326 7,752 54,224 47,166
-------- -------- -------- --------
Total Capital Expenditures $ 13,996 $ 8,157 $ 73,174 $ 57,736
======== ======== ======== ========
(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.
For further information, contact: Ned Coletta Director of Investor Relations (802) 772-2239 http://www.casella.com
SOURCE: Casella Waste Systems, Inc.
http://www.casella.com
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