Casella Waste Systems, Inc. Program to Divest Non-Strategic Operations Reaches $20 Million Mark in Divested Revenues With Buffalo Market Exit
RUTLAND, VT, Nov 06, 2007 (MARKET WIRE via COMTEX News Network) -- Casella Waste Systems, Inc. (NASDAQ: CWST) announced today that the Company has sold its Buffalo, New York transfer station, hauling operation and related equipment to the principals of Modern Landfill, Inc. for approximately $5.5 million in net proceeds. With the sale, the Company substantially completed its targeted divestiture program with divested revenues of approximately $20.0 million from non-strategic assets.
"In March 2007, we laid out a plan to divest, swap, restructure, or close underperforming and non-strategic operations," said John W. Casella, chairman and chief executive officer of Casella Waste Systems. "With the sale of the Buffalo facilities and the Holliston facility in April 2007, we have divested approximately $20.0 million of annual revenues from low margin operations that do not fit our long-term strategic plan."
The Buffalo transfer station and hauling company reported third party revenues of $9.2 million for the twelve months ended April 30, 2007 and $2.4 million for the three months ended July 31, 2007.
Casella Waste Systems, headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, recycling and resource management services primarily in the eastern United States.
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. There are a number of important risks and uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking statements. These risks and uncertainties include, without limitation, the risk that political, operational and other factors may impact our operating permits and future expansion plans at our facilities, and those additional risks detailed in Item 1A, "Risk Factors" in our Form 10-K for the year ended April 30, 2007.
For further information, contact Ned Coletta Director of Investor Relations or Richard Norris Chief Financial Officer (802) 775-0325 http://www.casella.com
SOURCE: Casella Waste Systems, Inc.
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