Casella Waste Systems, Inc. Announces Fourth Quarter and Fiscal Year 2012 Results; Provides Fiscal Year 2013 Guidance

Casella provides integrated solid waste, recycling, and resource management services in the eastern United States.

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Casella Waste Systems, Inc. Announces Fourth Quarter and Fiscal Year 2012 Results; Provides Fiscal Year 2013 Guidance

June 27, 2012

RUTLAND, VT -- (Marketwire) -- 06/27/12 -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported financial results for its fourth quarter and 2012 fiscal year, and gave guidance for its 2013 fiscal year.

Highlights for the quarter included:

  • Solid waste pricing growth of 1.3 percent was primarily driven by strong collection line-of-business pricing growth of 2.3 percent.
  • Positive growth of 0.8 percent in solid waste volumes.
  • Adjusted EBITDA* was $19.9 million for the quarter, up $1.6 million from same quarter last year.

For the quarter ended April 30, 2012, revenues were $109.2 million, down $0.3 million or 0.3 percent from the same quarter last year, with strong collection pricing offset by lower collection volumes and lower recycling commodity prices.

The current quarter includes a $40.7 million non-cash asset impairment charge for our Eastern Region assets related to the potential sale of the Maine Energy Recovery Company, a waste-to-energy facility, and a $0.3 million loss on debt modification. The quarter ended April 30, 2011 also included various unusual and one-time items, including a $45.6 million gain on the disposal of discontinued operations, net of income taxes.

Including the non-cash asset impairment charge and the loss on debt modification charge, the company's net loss attributable to common shareholders was ($49.1) million, or ($1.83) per common share for the quarter, compared to net income of $48.8 million, or $1.85 per share for the same quarter last year.

Operating loss was ($37.8) million for the quarter, down $35.2 million from the same quarter last year. Excluding the unusual and one-time gains and charges from each period, Adjusted Operating Income* in the current quarter was $2.9 million, up $0.8 million from the same quarter last year.

"We made significant progress in fiscal year 2012 on several important operational and strategic fronts, including the introduction of a successful collection pricing program, the consolidation of back-office functions into a shared services center, and the issuance of permits and resolution of long-standing legal challenges at three of our landfills," said John W. Casella, chairman and CEO of Casella Waste Systems. "We are particularly pleased with our ability to yield price in a difficult economic environment. Our new yield management tools and philosophy have positioned the company as a market price leader, particularly in secondary and tertiary markets."

"We have implemented a number of strategies to improve financial performance and reduce our exposure to risk in the future," Casella said. "We continue to see weakness in the economy during the first two months of our fiscal year, with lower special waste volumes to the landfills and lower energy prices. As a result of that uncertainty, we are providing a fairly muted outlook for fiscal year 2013. Our focus for fiscal year 2013 includes: selling our waste-to-energy facility, capturing more of our landfill volumes at the curb, continuing to improve our operating efficiencies, effectively managing pricing yield, and improving free cash generation."

Fiscal Year 2012 Financial Results

Highlights for the fiscal year included:

  • Solid waste pricing growth of 1.3 percent was primarily driven by strong collection line-of-business pricing growth of 2.6 percent.
  • Positive growth of 0.8 percent in solid waste volumes.
  • Adjusted EBITDA was $101.2 million for the fiscal year, up $1.9 million from last year.

For the fiscal year ended April 30, 2012, revenues were $480.8 million, up $14.7 million or 3.2 percent over fiscal year 2011. The current fiscal year includes a $40.7 million non-cash asset impairment charge, $1.4 million legal settlement charges, a $0.1 million development project charge, a $0.3 million loss on debt modification, the company's 50 percent share of US GreenFiber LLC's$10.2 million non-cash goodwill impairment charge, and a $10.7 million non-cash impairment of equity method investment charge to write down the book value of the US GreenFiber LLC investment. Fiscal year 2011 also included various unusual and one-time items, including a $43.6 million gain on the disposal of discontinued operations net of income taxes.

The company's net loss attributable to common shareholders was ($77.6) million, or ($2.90) per common share for fiscal year 2012, compared to a net income of $38.4 million, or $1.47 per share for the same period last year.

Operating loss was ($11.5) million for fiscal year 2012, down $40.1 million from the same period last year. Excluding the unusual and one-time gains and charges from each period, Adjusted Operating Income for fiscal year 2012 was $30.7 million, up $0.9 million from the same period last year.

Fiscal 2013 Outlook

"In fiscal year 2013, our emphasis will be on improving cash flows through opportunistic pricing, cost controls and operating efficiencies, and volume growth through focused capital deployment," Casella said. "Our plan for the fiscal year assumes that economic activity remains soft with limited GDP growth, energy prices remain at current low levels, and landfill special waste volumes decline."

The company provided guidance for its fiscal year 2013, which began May 1, 2012, by estimating results in the following ranges:

  • Revenues between $482.0 million and $492.0 million (representing growth of 0.2 percent to 2.3 percent);
  • Adjusted EBITDA* between $104.0 million and $108.0 million; and
  • Free Cash Flow* between $7.0 million and $11.0 million.

The company said the following assumptions are built into its fiscal year 2013 outlook:

  • The above guidance does not include the financial impacts from the potential sale of Maine Energy or the refinancing of the 11.0 percent $180.0 million second lien notes due July 2014.
  • No material changes in the regional economy from fiscal year 2012.
  • In the solid waste business, revenue growth of between 2.5 percent and 4.5 percent, with price growth from 1.5 percent to 2.0 percent; volumes and roll-over impact of acquisitions contributing between 1.0 percent and 2.5 percent.
  • We expect the recent Southbridge and Chemung landfill expansions to add an incremental $3.5 to $4.0 million of Adjusted EBITDA in fiscal year 2013.
  • In the recycling business, overall revenue declines of between 5.0 percent and 8.5 percent, with price declines on lower commodity pricing and volumes up 1.5 percent to 2.0 percent on continued adoption of Zero-Sort® Recycling. Our risk mitigation strategies continue to effectively manage commodity pricing risk in the recycling business, and as such we expect Adjusted EBITDA to be down $0.9 million to $1.6 million.
  • In the major accounts business, overall revenue declines of approximately 10.0 percent, principally due to the anticipated loss of volumes from one brokerage customer. This customer loss is expected to negatively impact Adjusted EBITDA by approximately $0.4 million.
  • No acquisitions beyond the above-mentioned roll-over impact of the acquisitions completed during fiscal year 2012 are included.

*Non-GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles in the United States (GAAP), the company also discloses earnings before interest, taxes, depreciation and amortization, adjusted for accretion, depletion of landfill operating lease obligations, gain on sale of assets, development project charge write-off, legal settlement charges, a bargain purchase gain, asset impairment charges, an environmental remediation charge, severance and reorganization charges, as well as a one-time discretionary bonus (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-off, legal settlement charges, a bargain purchase gain, asset impairment charges, an environmental remediation charge, severance and reorganization charges, as well as a one-time discretionary bonus (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, plus contributions from non-controlling interest holder, which is a non-GAAP measure. Adjusted EBITDA is reconciled to net income (loss), while Free Cash Flow is reconciled to net cash provided by operating activities.

The company presents Adjusted EBITDA, 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, vice president of finance and investor relations at (802) 772-2239, or Ed Johnson, chief financial officer at (802) 772-2241, 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 Thursday, June 28, 2012 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-9590 or (720) 545-0037 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems' website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the company's website, or by calling (855) 859-2056 or (404) 537-3406 (Conference ID 91134901) until 11:59 p.m. ET on Thursday, July 5, 2012.

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; and we may be unable to sell our waste-to-energy facility and shift waste volumes to other landfill sites. There are a number of other important risks and uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A, "Risk Factors" in our Form 10-K for the year ended April 30, 2011.

We undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.


                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                  (In thousands, except amounts per share)



                            Three Months Ended        Twelve Months Ended

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

                          April 30,    April 30,    April 30,    April 30,

                             2012         2011         2012         2011

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



Revenues                 $   109,178  $   109,549  $   480,815  $   466,064



Operating expenses:

  Cost of operations          77,505       79,920      330,754      317,504

  General and

   administration             14,573       17,565       60,775       64,010

  Depreciation and

   amortization               14,182       13,484       58,576       58,261

  Asset impairment

   charge                     40,746        3,654       40,746        3,654

  Legal settlement                 -            -        1,359            -

  Development project

   charge                          -            -          131            -

  Environmental

   remediation charge              -          549            -          549

  Bargain purchase gain            -       (2,975)           -       (2,975)

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

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

                             147,006      112,197      492,341      437,501

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



Operating (loss) income      (37,828)      (2,648)     (11,526)      28,563



Other expense/(income),

 net:

  Interest expense, net       11,633       10,826       45,499       45,858

  (Gain) loss from

   equity method

   investments                  (169)       1,560        9,994        4,096

  Impairment of equity

   method investment               -            -       10,680            -

  Loss on debt

   modification                  300        7,275          300        7,390

  Other income                  (313)        (370)        (863)        (860)

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

                              11,451       19,291       65,610       56,484

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



Loss from continuing

 operations before

 income taxes and

 discontinued operations     (49,279)     (21,939)     (77,136)     (27,921)

(Benefit) provision for

 income taxes                   (148)     (26,356)       1,181      (24,217)

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



(Loss) income from

 continuing operations

 before discontinued

 operations                  (49,131)       4,417      (78,317)      (3,704)



Discontinued operations:

  Loss from discontinued

   operations, net of

   income taxes (1)                -       (1,141)           -       (1,458)

  Gain on disposal of

   discontinued

   operations, net of

   income taxes (1)                -       45,573          725       43,590

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



Net (loss) income        $   (49,131) $    48,849  $   (77,592) $    38,428

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



  Less: Net loss

   attributable to

   noncontrolling

   interest                       (6)           -           (6)           -

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



Net (loss) income

 attributable to Casella

 Waste Systems, Inc. and

 Subsidiaries

 stockholders            $   (49,125) $    48,849  $   (77,586) $    38,428

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



Common stock and common

 stock equivalent shares

 outstanding, assuming

 full dilution                26,851       26,351       26,749       26,105

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



Net (loss) income per

 common share

 attributable to common

 stockholders            $     (1.83) $      1.85  $     (2.90) $      1.47

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



Adjusted EBITDA (2)      $    19,878  $    18,323  $   101,246  $    99,309

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





                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)



                                                   April 30,     April 30,

                     ASSETS                           2012          2011

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



CURRENT ASSETS:

    Cash and cash equivalents                    $       4,534 $       1,817

    Restricted cash                                         76            76

    Accounts receivable - trade, net of

     allowance for doubtful accounts                    47,472        54,914

    Other current assets                                15,274        15,598

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

Total current assets                                    67,356        72,405



Property, plant and equipment, net of

 accumulated depreciation                              416,717       453,361

Goodwill                                               101,706       101,204

Intangible assets, net                                   2,970         2,455

Restricted assets                                          424           334

Notes receivable - related party/employee                  722         1,297

Investments in unconsolidated entities                  22,781        38,263

Other non-current assets                                21,067        21,262

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



Total assets                                     $     633,743 $     690,581

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



      LIABILITIES AND STOCKHOLDERS' EQUITY



CURRENT LIABILITIES:

    Current maturities of long-term debt and

     capital leases                              $       1,228 $       1,217

    Current maturities of financing lease

     obligations                                           338           316

    Accounts payable                                    46,709        42,499

    Other accrued liabilities                           40,060        39,889

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

Total current liabilities                               88,335        83,921



Long-term debt and capital leases, less current

 maturities                                            473,381       461,418

Financing lease obligations, less current

 maturities                                              1,818         2,156

Other long-term liabilities                             51,978        49,099



  Total Casella Waste Systems, Inc. and

   Subsidiaries stockholders' equity                    16,431        93,987

  Noncontrolling interest                                1,800             -

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

Total stockholders' equity                              18,231        93,987

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



Total liabilities and stockholders' equity       $     633,743 $     690,581

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





                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                               (In thousands)



                                                       Twelve Months Ended

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

                                                      April 30,   April 30,

                                                        2012        2011

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

Cash Flows from Operating Activities:

Net (loss) income                                    $  (77,592) $   38,428

Loss from discontinued operations, net of income

 taxes                                                        -       1,458

Gain on disposal of discontinued operations, net of

 income taxes                                              (725)    (43,590)

Adjustments to reconcile net (loss) income to net

 cash provided by operating activities -

  Gain on sale of assets                                      -      (3,502)

  Gain on sale of property and equipment                 (1,004)       (470)

  Depreciation and amortization                          58,576      58,261

  Depletion of landfill operating lease obligations       8,482       7,878

  Interest accretion on landfill and environmental

   remediation liabilities                                3,479       3,331

  Environmental remediation charge                            -         549

  Asset impairment charge                                40,746       3,654

  Bargain purchase gain                                       -      (2,975)

  Development project charge                                131           -

  Amortization of premium on senior subordinated

   notes                                                      -        (611)

  Amortization of discount on term loan and second

   lien notes                                               964         801

  Loss from equity method investments                     9,994       4,096

  Impairment of equity method investment                 10,680           -

  Loss on debt modification                                 300       7,390

  Stock-based compensation                                1,855       1,592

  Excess tax benefit on the vesting of share based

   awards                                                  (254)       (129)

  Deferred income taxes                                   1,899     (23,615)

  Changes in assets and liabilities, net of effects

   of acquisitions and divestitures                       6,244      (5,455)

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

    Net Cash Provided by Operating Activities            63,775      47,091

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

Cash Flows from Investing Activities:

  Acquisitions, net of cash acquired                     (2,102)     (1,744)

  Additions to property, plant and equipment

   attributable to acquisitions                            (529)         (5)

  Additions to property, plant and equipment -

   growth                                               (12,211)     (2,803)

      - maintenance                                     (47,001)    (52,441)

  Payments on landfill operating lease contracts         (6,616)     (5,655)

  Purchase of gas rights                                      -      (1,608)

  Proceeds from sale of assets                                -       7,533

  Proceeds from sale of property and equipment            1,492         959

  Investments in unconsolidated entities                 (5,045)          -

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

    Net Cash Used In Investing Activities               (72,012)    (55,764)

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

Cash Flows from Financing Activities:

  Proceeds from long-term borrowings                    163,500     383,757

  Principal payments on long-term debt                 (152,806)   (491,669)

  Payments of financing costs                            (1,592)    (10,588)

  Proceeds from exercise of share based awards              337         476

  Excess tax benefit on the vesting of share based

   awards                                                   254         129

  Contributions from noncontrolling interest holder         536           -

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

    Net Cash Provided By (Used In) Financing

     Activities                                          10,229    (117,895)

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

Net Cash Provided By Discontinued Operations                725     126,350

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

Net increase (decrease) in cash and cash equivalents      2,717        (218)

Cash and cash equivalents, beginning of period            1,817       2,035

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

Cash and cash equivalents, end of period             $    4,534  $    1,817

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

Supplemental Disclosures:

Cash interest                                        $   41,243  $   44,291

Cash income taxes, net of refunds                    $    5,048  $    1,480





                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                               (In thousands)



Note 1: Discontinued Operations



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

related agreements to sell non-integrated recycling assets and select

intellectual property assets to a new company (the "Purchaser") formed by

Pegasus Capital Advisors, L.P. and Intersection LLC for $130,400 in gross

proceeds. Pursuant to these agreements, we divested non-integrated recycling

assets located outside our core operating regions of New York,

Massachusetts, Vermont, New Hampshire, Maine and northern Pennsylvania,

including 17 material recovery facilities ("MRFs"), one transfer station and

certain related intellectual property assets. Following the transaction, we

retained four integrated MRFs located in our core operating regions. As a

part of the disposition, we also entered into a ten-year commodities

marketing agreement with the Purchaser to market 100% of the tonnage from

three of our remaining integrated MRFs.



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

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

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

defined in the purchase and sale agreement. After netting transaction costs

and cash taxes payable in conjunction with the divestiture, net cash

proceeds amounted to approximately $122,953. We used cash proceeds from the

divestiture and borrowings under our subsequently refinanced senior secured

revolving credit facility due December 31, 2012 to repay the aggregate

balance of our then outstanding senior secured term B loan due April 9, 2014

in full upon completion of the disposition. This resulted in a gain on

disposal of discontinued operations (net of tax) of $43,718 in the fourth

quarter of fiscal year 2011. 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 tax) 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 tax), which related to our

subsequent collection of receivable balances that were released to us for

collection by the Purchaser.



During the third quarter of fiscal year 2011, we also completed the sale of

the assets of the Trilogy Glass business for cash proceeds of $1,840. A loss

of to $128 (net of tax) was recorded to gain on disposal of discontinued

operations in fiscal year 2011.



The operating results of these operations, including those related to prior

years, have been reclassified from continuing to discontinued operations in

the accompanying consolidated financial statements. Revenues and loss before

income taxes attributable to discontinued operations were $62,510 and

($2,258) for the fiscal year ended April 30, 2011.



We have recorded contingent liabilities associated with these divestitures

of approximately $325 and $332 at April 30, 2012 and 2011, respectively. We

also allocate interest expense to discontinued operations. We have also

eliminated inter-company activity associated with discontinued operations.



Note 2: Non - GAAP Financial Measures



In addition to disclosing financial results prepared in accordance with

Generally Accepted Accounting Principles 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-off,

legal settlement charges, a bargain purchase gain, asset impairment charges,

an environmental remediation charge, severance and reorganization charges,

as well as a one-time discretionary bonus (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-off, legal

settlement charges, a bargain purchase gain, asset impairment charges, an

environmental remediation charge, severance and reorganization charges, as

well as a one-time discretionary bonus (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, plus contributions

from non-controlling interest holder, which is a non-GAAP measure. Adjusted

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

reconciled to net cash provided by operating activities.



We present Adjusted EBITDA, 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) Income:



                               Three Months Ended      Twelve Months Ended

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

                              April 30,   April 30,   April 30,   April 30,

                                2012        2011        2012        2011

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





Net (Loss) Income            $  (49,131) $   48,849  $  (77,592) $   38,428

  Loss from discontinued

   operations, net of income

   taxes                              -       1,141           -       1,458

  Gain on disposal of

   discontinued operations,

   net of income taxes                -     (45,573)       (725)    (43,590)

  (Benefit) provision for

   income taxes                    (148)    (26,356)      1,181     (24,217)

  Interest expense, net          11,633      10,826      45,499      45,858

  Depreciation and

   amortization                  14,182      13,484      58,576      58,261

  Other (income) expense,

   net                             (182)      8,465      20,110      10,626

  Legal settlement                    -           -       1,359           -

  Development project charge          -           -         131           -

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

  Bargain purchase gain               -      (2,975)          -      (2,975)

  Asset impairment charge        40,746       3,654      40,746       3,654

  Environmental remediation

   charge                             -         549           -         549

  One-time discretionary

   bonus charge                       -       3,550           -       3,550

  Depletion of landfill

   operating lease

   obligations                    1,912       1,865       8,482       7,878

  Interest accretion on

   landfill and

   environmental remediation

   liabilities                      866         844       3,479       3,331

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

Adjusted EBITDA (2)          $   19,878  $   18,323  $  101,246  $   99,309

  Depreciation and

   amortization                 (14,182)    (13,484)    (58,576)    (58,261)

  Depletion of landfill

   operating lease

   obligations                   (1,912)     (1,865)     (8,482)     (7,878)

  Interest accretion on

   landfill and

   environmental remediation

   liabilities                     (866)       (844)     (3,479)     (3,331)

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

Adjusted Operating Income

 (2)                         $    2,918  $    2,130  $   30,709  $   29,839

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



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,

                                 2012        2011        2012        2011

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

Net Cash Provided by

 Operating Activities        $   14,033  $    1,233  $   63,775  $   47,091

Capital expenditures -

 growth and maintenance         (10,100)    (13,801)    (59,212)    (55,244)

Payments on landfill

 operating lease contracts         (564)       (678)     (6,616)     (5,655)

Proceeds from sale of assets

 and property and equipment         155         328       1,492       8,492

Contributions from

 noncontrolling interest

 holder                             362           -         536           -

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

Free Cash Flow (2)           $    3,886  $  (12,918) $      (25) $   (5,316)

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





                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 twelve months ended April 30, 2012 and 2011 are as follows:



                                     Three Months Ended April 30,

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

                                        % of Total               % of Total

                               2012       Revenue       2011       Revenue

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

Collection                 $    48,066        44.0% $    47,264        43.1%

Disposal                        26,969        24.7%      25,284        23.1%

Power generation                 2,479         2.3%       2,982         2.7%

Processing and organics         12,779        11.7%      12,335        11.3%

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

  Solid waste operations        90,293        82.7%      87,865        80.2%

Major accounts                   8,546         7.8%       9,916         9.1%

Recycling                       10,339         9.5%      11,768        10.7%

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

Total revenues             $   109,178       100.0% $   109,549       100.0%

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



                                     Twelve Months Ended April 30,

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

                                        % of Total               % of Total

                               2012       Revenue       2011       Revenue

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

Collection                 $   205,325        42.7% $   199,892        42.9%

Disposal                       123,620        25.7%     118,831        25.5%

Power generation                11,894         2.4%      12,831         2.8%

Processing and organics         53,740        11.2%      50,590        10.9%

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

  Solid waste operations       394,579        82.0%     382,144        82.0%

Major accounts                  38,302         8.0%      40,363         8.7%

Recycling                       47,934        10.0%      43,557         9.3%

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

Total revenues             $   480,815       100.0% $   466,064       100.0%

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



Components of revenue growth for the three months ended April 30, 2012

 compared to the three months ended April 30, 2011 are as follows:



                                           % of      % of Solid

                                          Related       Waste    % of Total

                              Amount     Business    Operations    Company

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

Solid Waste Operations:

Collection                 $     1,074         2.3%         1.2%        1.0%

Disposal                           108         0.4%         0.1%        0.1%

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

Solid Waste Yield                1,182                      1.3%        1.1%



Collection                        (973)                    -1.1%       -0.9%

Disposal                         1,577                      1.8%        1.4%

Processing and organics             91                      0.1%        0.1%

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

Solid Waste Volume                 695                      0.8%        0.6%



Commodity price & volume          (141)                    -0.2%       -0.1%

Acquisitions &

 divestitures                      698                      0.8%        0.6%

Closed landfill                     (6)                     0.0%        0.0%

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

Total Solid Waste                2,428                      2.7%        2.2%

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



Major Accounts                  (1,370)                                -1.2%

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



Recycling Operations:                                   % of

                                                      Recycling

                                                     Operations

                                                    -----------

Commodity price                 (1,574)                   -13.4%       -1.4%

Commodity volume                   145                      1.2%        0.1%

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

Total Recycling                 (1,429)                   -12.2%       -1.3%

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



Total Company              $      (371)                                -0.3%

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



Solid Waste

 Internalization Rates by

 Region:



                              Three Months Ended       Twelve Months Ended

                                   April 30,                April 30,

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

                               2012        2011         2012        2011

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

Eastern region                    52.9%       54.0%        54.9%       54.3%

Western region                    74.5%       72.2%        76.3%       74.1%

Solid waste

 internalization                  64.4%       63.5%        66.2%       64.8%





                CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

                          SUPPLEMENTAL DATA TABLES

                                (Unaudited)

                               (In thousands)



GreenFiber Financial Statistics - as reported (1):



                               Three Months Ended      Twelve Months Ended

                                    April 30,               April 30,

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

                                2012        2011        2012        2011

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

Revenues                     $   16,228  $   18,415  $   77,544  $   84,903

Net loss                         (2,108)     (3,120)    (20,003)     (8,192)

Cash flow provided by (used

 in) operations                   2,517       2,160      (2,712)       (444)

Net working capital changes       2,707       2,952         831      (2,064)

Adjusted EBITDA              $     (190) $     (792) $   (3,543) $    1,620



As a percentage of revenues:



Net loss                          -13.0%      -16.9%      -25.8%       -9.6%

Adjusted EBITDA                    -1.2%       -4.3%       -4.6%        1.9%



(1) We hold a 50% interest in US Green Fiber, LLC ("GreenFiber"), a joint

 venture that manufactures, markets and sells cellulose insulation made

 from recycled fiber.



Components of Growth and Maintenance Capital Expenditures (1):



                                Three Months Ended     Twelve Months Ended

                                    April 30,               April 30,

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

                                 2012        2011        2012        2011

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

Growth capital expenditures:

Landfill development         $      372  $      199  $    1,030  $      608

Landfill gas-to-energy

 project                          1,133       1,050       2,500       1,050

MRF equipment upgrades                -         303       3,104         303

Other                               873          76       5,577         842

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

Total Growth Capital

 Expenditures                     2,378       1,628      12,211       2,803

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



Maintenance capital

 expenditures:

Vehicles, machinery /

 equipment and containers    $    3,068  $    3,805  $   18,540  $   18,482

Landfill construction &

 equipment                        3,466       6,845      24,080      29,715

Facilities                        1,108       1,173       3,809

Other                                80         350         572       1,219

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

Total Maintenance Capital

 Expenditures                     7,722      12,173      47,001      49,416

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



Total Growth and Maintenance

 Capital Expenditures        $   10,100  $   13,801  $   59,212  $   52,219

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



(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

Vice President of Finance and Investor Relations

(802) 772-2239



Ed Johnson

Chief Financial Officer

(802) 772-2241



Media:

Joseph Fusco

Vice President

(802) 772-2247



http://www.casella.com



Source: Casella Waste Systems, Inc

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