Casella Waste Systems, Inc. (Nasdaq:CWST), a regional solid waste,
recycling and resource management services company, today reported
financial results for its first quarter fiscal year 2014, and
revised its guidance for its fiscal year 2014.
Highlights for the quarter included:
- Revenue growth of 9.3 percent over the same quarter
last year.
- Adjusted EBITDA* was $28.7 million for the quarter, up
$4.4 million from the same quarter last year.
- Adjusted Operating Income* was $9.9 million for the
quarter, up $3.5 million from the same quarter last
year.
- Income from continuing operations before income taxes
and discontinued operations was $0.2 million for the
quarter.
- Revenue and Adjusted EBITDA guidance revised upward for
fiscal year 2014.
For the quarter ended July 31, 2013, revenues were $128.6
million, up $10.9 million, or 9.3 percent, from the same quarter
last year, with revenue growth mainly driven by higher volumes
across all lines-of business, acquisition activity, and higher
solid waste collection pricing. Overall solid waste pricing growth
of 0.5 percent was primarily driven by residential and commercial
pricing growth of 1.9 percent as a percentage of segment
revenues.
The company's net loss attributable to common stockholders was
($0.2) million, or ($0.00) per share for the quarter, compared to
net loss of ($8.4) million, or ($0.31) per share for the same
quarter last year.
Operating income was $9.7 million for the quarter, up $3.9
million from the same quarter last year. The current quarter
includes a $0.1 million severance and reorganization charge related
to general realignment activities and by comparison, the quarter
ended July 31, 2012 included $0.6 million of expenses related to
divestiture and financing costs. Excluding these charges, Adjusted
Operating Income* in the current quarter was $9.9 million, up $3.5
million from same quarter last year.
Adjusted EBITDA was $28.7 million for the quarter, up from $24.3
million in the same quarter last year.
"We had a solid first quarter, with results primarily driven by
continued execution in key areas of management focus - sourcing
incremental landfill volumes; improving collection route
profitability; and completing the multi-year Eastern region
strategy," said John W. Casella, chairman and CEO of Casella Waste
Systems.
"Our success in the quarter was led by solid performance at our
landfills, with tonnages up 175,000 tons year-over-year, excluding
the planned declines at the Worcester landfill closure project,"
Casella said. "We believe that this improvement is directly
attributable to our actions to improve our special waste sales
efforts, several new additions to our landfill team, and a
tightening disposal market in select markets. We continue to
experience these same positive landfill tonnage trends into
August."
"During the quarter, our recycling team did an excellent job
leveraging their quality control processes and infrastructure to
drive higher volumes and tip fees at our MRFs, offsetting much of
the decline in commodity pricing" Casella said. "We do not expect
commodity pricing to rebound in the near term; however we do
believe that our differentiated platform will continue to drive
higher volumes, offsetting the majority of pricing pressure."
Fiscal 2014 Outlook
"After a good first quarter and better visibility into the
remainder of our fiscal year, we have revised our fiscal year 2014
guidance for revenues and Adjusted EBITDA," Casella said. "This
upward revision is based on a conservative and consistent framework
for all assumptions outside of our direct control, such as new
landfill volumes or economic growth. We have chosen to leave free
cash flow guidance in place this early in the fiscal year."
The company updated guidance for its fiscal year 2014, which
began May 1, 2013, by estimating results in the following
ranges:
- Revenues between $470.0 million and $480.0 million (increased
from a range of $465.0 million to $475.0 million);
- Adjusted EBITDA* between $92.0 million and $96.0 million
(increased from a range of $91.0 million and $95.0 million).
*Non-GAAP Financial Measures
In addition to disclosing financial results prepared in
accordance with Generally Accepted Accounting Principles in the
United States (GAAP), the company also discloses earnings before
interest, taxes, depreciation and amortization, adjusted for
accretion, depletion of landfill operating lease obligations, gain
on sale of assets, development project charge write-offs, legal
settlement charges, tax settlement costs, bargain purchase gains,
asset impairment charges, environmental remediation charges,
severance and reorganization charges, expenses from divestiture,
acquisition and financing costs, as well as losses on divestiture
(Adjusted EBITDA) which is a non-GAAP measure. The company also
discloses earnings before interest, taxes, adjusted for gain on
sale of assets, development project charge write-offs, legal
settlement charges, tax settlement costs, bargain purchase gains,
asset impairment charges, environmental remediation charges,
severance and reorganization charges, expenses from divestiture,
acquisition and financing costs, as well as losses on divestiture
(Adjusted Operating Income) which is a non-GAAP measure. The
company also discloses Free Cash Flow, which is defined as net cash
provided by operating activities, less capital expenditures
attributable to growth and maintenance (excluding acquisition
related capital), less payments on landfill operating leases, less
assets acquired through financing leases, plus proceeds from the
sale of property and equipment, plus contributions from
non-controlling interest holders, which is a non-GAAP measure.
Adjusted EBITDA and Adjusted Operating Income are reconciled to net
income (loss), while Free Cash Flow is reconciled to net cash
provided by operating activities.
The company presents Adjusted EBITDA, Adjusted Operating Income,
and Free Cash Flow because it considers them important supplemental
measures of its performance and believes they are frequently used
by securities analysts, investors and other interested parties in
the evaluation of the company's results. Management uses these
non-GAAP measures to further understand the company's "core
operating performance." The company believes its "core operating
performance" represents its on-going performance in the ordinary
course of operations. The company believes that providing Adjusted
EBITDA, Adjusted Operating Income, and Free Cash Flow to investors,
in addition to corresponding income statement and cash flow
statement measures, affords investors the benefit of viewing its
performance using the same financial metrics that the management
team uses in making many key decisions and understanding how the
core business and its results of operations may look in the future.
The company further believes that providing this information allows
its investors greater transparency and a better understanding of
its core financial performance. In addition, the instruments
governing the company's indebtedness use EBITDA (with additional
adjustments) to measure its compliance with covenants such as
interest coverage, leverage and debt incurrence.
Non-GAAP financial measures are not in accordance with or an
alternative for GAAP. Adjusted EBITDA, Adjusted Operating Income,
and Free Cash Flow should not be considered in isolation from or as
a substitute for financial information presented in accordance with
GAAP, and may be different from Adjusted EBITDA, Adjusted Operating
Income, or Free Cash Flow presented by other companies.
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont,
provides solid waste management services consisting of collection,
transfer, disposal, and recycling services in the northeastern
United States. For further information, investors contact Ned
Coletta, Chief Financial Officer at (802) 772-2239, media contact
Joseph Fusco, Vice President at (802) 772-2247, or visit the
company's website at http://www.casella.com.
Conference call to discuss quarter
The Company will host a conference call to discuss these results
on Thursday, August 29, 2013 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 28418433) until 11:59 p.m. ET on
Thursday, September 5, 2013.
Safe Harbor
Statement
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such by the context of the statements,
including words such as "believe," "expect," "anticipate," "plan,"
"may," "will," "would," "intend," "estimate," "guidance" and other
similar expressions, whether in the negative or affirmative. These
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industry and markets
in which we operate and management's beliefs and assumptions. We
cannot guarantee that we actually will achieve the plans,
intentions, expectations or guidance disclosed in the
forward-looking statements made. Such forward-looking statements,
and all phases of our operations, involve a number of risks and
uncertainties, any one or more of which could cause actual results
to differ materially from those described in our forward-looking
statements. Such risks and uncertainties include or relate to,
among other things: current economic conditions that have adversely
affected and may continue to adversely affect our revenues and our
operating margin; we may be unable to increase volumes at our
landfills or improve our route profitability; our need to service
our indebtedness may limit our ability to invest in our business;
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 not fully recognize the
expected financial benefits from the BBI acquisition due to the an
inability to recognize operational cost savings, general and
administration cost savings, or landfill or recycling facility
internalization benefits. There are a number of other important
risks and uncertainties that could cause our actual results to
differ materially from those indicated by such forward-looking
statements. These additional risks and uncertainties include,
without limitation, those detailed in Item 1A, "Risk Factors" in
our Form 10-K for the year ended April 30, 2013.
We undertake no obligation to update publicly any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
|
|
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Unaudited) |
(In thousands, except
amounts per share) |
|
|
|
|
Three Months
Ended |
|
|
July 31, |
July 31, |
|
2013 |
2012 |
|
|
|
Revenues |
$ 128,558 |
$ 117,638 |
|
|
|
Operating expenses: |
|
|
Cost of operations |
88,419 |
81,345 |
General and administration |
15,078 |
15,190 |
Depreciation and amortization |
15,197 |
14,709 |
Expense from divestiture, acquisition and
financing costs |
20 |
553 |
Severance and reorganization costs |
107 |
34 |
|
118,821 |
111,831 |
|
|
|
Operating income |
9,737 |
5,807 |
|
|
|
Other expense/(income), net: |
|
|
Interest expense, net |
9,347 |
11,684 |
Loss from equity method investments |
977 |
1,766 |
Gain on derivative instruments |
(654) |
-- |
Other income |
(138) |
(130) |
Other expense, net |
9,532 |
13,320 |
|
|
|
Income (loss) from continuing operations
before income taxes and discontinued operations |
205 |
(7,513) |
Provision for income taxes |
319 |
650 |
|
|
|
Loss from continuing operations before
discontinued operations |
(114) |
(8,163) |
|
|
|
Discontinued operations: |
|
|
Income (loss) from discontinued
operations, net of income taxes (1) |
329 |
(216) |
Loss on disposal of discontinued
operations, net of income taxes (1) |
(378) |
-- |
|
|
|
Net loss |
(163) |
(8,379) |
|
|
|
Less: Net income (loss) attributable to
noncontrolling interests |
28 |
(8) |
|
|
|
Net loss attributable to common
stockholders |
$ (191) |
$ (8,371) |
|
|
|
Weighted average common shares
outstanding |
39,662 |
26,992 |
|
|
|
Net loss per common share |
$ (0.00) |
$ (0.31) |
|
|
|
Adjusted EBITDA (2) |
$ 28,734 |
$ 24,324 |
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(In
thousands) |
|
|
|
|
|
July 31, |
April 30, |
|
ASSETS |
2013 |
2013 |
|
|
(Unaudited) |
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ 2,919 |
$ 1,755 |
|
Restricted cash |
76 |
76 |
|
Accounts receivable - trade, net of
allowance for doubtful accounts |
54,277 |
48,689 |
|
Other current assets |
16,559 |
14,025 |
|
Total current assets |
73,831 |
64,545 |
|
|
|
|
|
Property, plant and equipment, net of
accumulated depreciation and amortization |
424,772 |
422,502 |
|
Goodwill |
115,928 |
115,928 |
|
Intangible assets, net |
11,152 |
11,674 |
|
Restricted assets |
538 |
545 |
|
Notes receivable - related party |
148 |
147 |
|
Investments in unconsolidated entities |
19,225 |
20,252 |
|
Other non-current assets |
29,150 |
27,526 |
|
|
|
|
|
Total assets |
$ 674,744 |
$ 663,119 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current maturities of long-term debt and
capital leases |
$ 427 |
$ 857 |
|
Current maturities of financing lease
obligations |
367 |
361 |
|
Accounts payable |
52,252 |
51,974 |
|
Other accrued liabilities |
44,727 |
34,906 |
|
Total current liabilities |
97,773 |
88,098 |
|
|
|
|
|
Long-term debt and capital leases, less
current maturities |
496,988 |
493,531 |
|
Financing lease obligations, less current
maturities |
1,363 |
1,456 |
|
Other long-term liabilities |
62,763 |
64,583 |
|
|
|
|
|
Total stockholders' equity |
15,857 |
15,451 |
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ 674,744 |
$ 663,119 |
|
|
|
|
|
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In
thousands) |
|
|
|
|
|
Three Months
Ended |
|
|
July 31, |
July 31, |
|
|
2013 |
2012 |
|
Cash Flows from Operating
Activities: |
|
|
|
Net loss |
$ (163) |
$ (8,379) |
|
(Income) loss from discontinued
operations, net |
(329) |
216 |
|
Loss on disposal of discontinued
operations, net |
378 |
-- |
|
Adjustments to reconcile net loss to
net cash provided by operating activities -- |
|
|
|
Gain on sale of property and
equipment |
(164) |
(46) |
|
Depreciation and
amortization |
15,197 |
14,709 |
|
Depletion of landfill operating
lease obligations |
2,627 |
2,288 |
|
Interest accretion on landfill and
environmental remediation liabilities |
1,046 |
933 |
|
Amortization of discount on second
lien notes and senior subordinated notes |
59 |
259 |
|
Loss from equity method investments |
977 |
1,766 |
|
Gain on derivative
instruments |
(654) |
-- |
|
Stock-based compensation |
631 |
675 |
|
Excess tax provision (benefit) on
the vesting of share based awards |
63 |
(205) |
|
Deferred income taxes |
260 |
565 |
|
Changes in assets and liabilities,
net of effects of acquisitions and divestitures |
(402) |
(5,059) |
|
Net Cash Provided by
Operating Activities |
19,526 |
7,722 |
|
Cash Flows from Investing
Activities: |
|
|
|
Acquisitions, net of cash
acquired |
(29) |
(3,150) |
|
Additions to property, plant and
equipment - acquisitions |
(1,072) |
(288) |
|
- growth |
(1,785) |
(2,002) |
|
- maintenance |
(11,622) |
(14,179) |
|
Payments on landfill operating lease
contracts |
(1,982) |
(1,814) |
|
Payment for capital related to
divestiture |
-- |
(618) |
|
Investments in unconsolidated
entities |
(2,148) |
(1,000) |
|
Proceeds from sale of property and
equipment |
284 |
265 |
|
Net Cash Used In Investing
Activities |
(18,354) |
(22,786) |
|
Cash Flows from Financing
Activities: |
|
|
|
Proceeds from long-term
borrowings |
29,890 |
62,310 |
|
Principal payments on long-term
debt |
(29,310) |
(48,689) |
|
Payments of financing costs |
(359) |
(96) |
|
Excess tax (provision) benefit on the
vesting of share based awards |
(63) |
205 |
|
Contributions from noncontrolling
interest holders |
-- |
721 |
|
Net Cash Provided By Financing
Activities |
158 |
14,451 |
|
Net Cash Used In Discontinued
Operations |
(166) |
(416) |
|
Net increase (decrease) in cash and
cash equivalents |
1,164 |
(1,029) |
|
Cash and cash equivalents, beginning of
period |
1,755 |
4,534 |
|
Cash and cash equivalents, end of
period |
$ 2,919 |
$ 3,505 |
|
Supplemental Disclosures: |
|
|
|
Cash interest |
$ 1,902 |
$ 11,230 |
|
Cash income tax payments (refunds),
net |
$ 720 |
$ (26) |
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC.
AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (Unaudited) (In thousands)
Note 1: Divestiture and Discontinued
Operations
Maine Energy Divestiture In the first quarter of fiscal year
2013, we executed a purchase and sale agreement with the City of
Biddeford, Maine, pursuant to which we agreed to sell the real
property of Maine Energy Recovery Company LP ("Maine Energy"),
which is located in our Eastern region, to the City of Biddeford,
subject to satisfaction of conditions precedent and closing. We
agreed to sell Maine Energy for undiscounted purchase consideration
of $6,650, which will be paid to us in equal installments over the
next 21 years, subject to the terms of the purchase and sale
agreement. The transaction closed in November 2012, and we waived
certain conditions precedent not satisfied at that time. In
December 2012, we closed the Maine Energy facility and initiated
the decommissioning process in accordance with the provisions of
the agreement. Following the decommissioning of the Maine Energy
facility, it is our responsibility to demolish the facility, at our
cost, within twelve months of the closing date and in accordance
with the terms of the purchase and sale agreement. We will continue
to finalize estimates and obtain additional information regarding
the estimated costs associated with the divestiture. Due to the
inherent judgments and estimates regarding the remaining costs to
fulfill our obligation under the purchase and sale agreement to
demolish the facility and remediate the site, recognition of a loss
on divestiture, which we do not expect, or a potential gain on
divestiture is possible.
As a part of the closure and decommissioning of the Maine Energy
facility, we are withdrawing from a multiemployer pension plan to
which we have made contributions for the benefit of Maine Energy
employees covered under a collective bargaining agreement. We have
a potential liability associated with our withdrawal from the
multiemployer pension plan based on the value of the plan's
unfunded vested benefits. In accordance with Financial Accounting
Standards Board Accounting Standards Codification 715-80, in a
situation with unfunded vested benefits, a liability is not
recorded by a participating employer as no single employer has an
identifiable share of the actuarial obligation of the multiemployer
pension plan.
Discontinued Operations In the fourth quarter of fiscal year
2013, we initiated a plan to dispose of KTI Bio Fuels, Inc. ("Bio
Fuels"), a construction and demolition material processing facility
located in Lewiston, Maine, and as a result, the assets associated
with Bio Fuels were classified as held-for-sale and the results of
operations were recorded as loss from discontinued operations.
Assets of the disposal group classified as held-for-sale, and now
as discontinued operations, include certain inventory along with
plant and equipment. In the three months ended July 31, 2013, we
executed a purchase and sale agreement with ReEnergy Lewiston LLC
("ReEnergy"), pursuant to which we agreed to sell certain assets of
Bio Fuels, which is located in our Eastern region, to ReEnergy. We
agreed to sell the Bio Fuels assets for undiscounted purchase
consideration of $2,000, which will be paid to us in equal
quarterly installments commencing November 1, 2013 and continuing
over five years, subject to the terms of the purchase and sale
agreement. We recognized a $378 loss on disposal of discontinued
operations in the three months ended July 31, 2013 associated with
the disposition. Revenues and income (loss) before income taxes
attributable to discontinued operations for the three months ended
July 31, 2013 and 2012, respectively, are as follows:
|
Three Months
Ended July 31, |
|
2013 |
2012 |
Revenues |
$ 3,312 |
$ 3,557 |
Income (loss) before income taxes |
$ 329 |
$ (216) |
|
|
|
Note 2: Non - GAAP Financial Measures In
addition to disclosing financial results prepared in accordance
with Generally Accepted Accounting Principles in the United States
(GAAP), we also disclose earnings before interest, taxes,
depreciation and amortization, adjusted for accretion, depletion of
landfill operating lease obligations, gain on sale of assets,
development project charge write-offs, legal settlement charges,
tax settlement costs, bargain purchase gains, asset impairment
charges, environmental remediation charges, severance and
reorganization charges, expenses from divestiture, acquisition and
financing costs, as well as losses on divestiture (Adjusted
EBITDA), which is a non-GAAP measure. We also disclose earnings
before interest, taxes, adjusted for gain on sale of assets,
development project charge write-offs, legal settlement charges,
tax settlement costs, bargain purchase gains, asset impairment
charges, environmental remediation charges, severance and
reorganization charges, expenses from divestiture, acquisition and
financing costs, as well as losses on divestiture (Adjusted
Operating Income), which is a non-GAAP measure. We also disclose
Free Cash Flow, which is defined as net cash provided by operating
activities, less capital expenditures attributable to growth and
maintenance (excluding acquisition related capital), less payments
on landfill operating leases, less assets acquired through
financing leases, plus proceeds from the sale of property and
equipment, plus contributions from non-controlling interest
holders, which is a non-GAAP measure. Adjusted EBITDA and Adjusted
Operating Income are reconciled to net income (loss), while Free
Cash Flow is reconciled to net cash provided by operating
activities. We present
Adjusted EBITDA, Adjusted Operating Income, and Free Cash Flow
because we consider them important supplemental measures of our
performance and believe they are frequently used by securities
analysts, investors and other interested parties in the evaluation
of our results. We use these non-GAAP measures to further
understand our "core operating performance." We believe our "core
operating performance" represents our on-going performance in the
ordinary course of operations. We believe that providing Adjusted
EBITDA, Adjusted Operating Income, and Free Cash Flow to investors,
in addition to corresponding income statement and cash flow
statement measures, affords investors the benefit of viewing our
performance using the same financial metrics that our management
team uses in making many key decisions and understanding how the
core business and our results of operations may look in the future.
We further believe that providing this information allows our
investors greater transparency and a better understanding of our
core financial performance. In addition, the instruments governing
our indebtedness use EBITDA (with additional adjustments) to
measure our compliance with covenants such as interest coverage,
leverage and debt incurrence.
Non-GAAP financial measures are not in accordance with or an
alternative for GAAP. Adjusted EBITDA, Adjusted Operating Income,
and Free Cash Flow should not be considered in isolation from or as
a substitute for financial information presented in accordance with
GAAP, and may be different from Adjusted EBITDA, Adjusted Operating
Income, or Free Cash Flow presented by other
companies.
Following is a
reconciliation of Adjusted EBITDA and Adjusted Operating Income to
Net Loss: |
|
|
|
|
|
Three Months
Ended |
|
|
July 31, |
July 31, |
|
|
2013 |
2012 |
|
|
|
|
|
Net Loss |
$ (163) |
$ (8,379) |
|
(Income) loss from discontinued
operations, net |
(329) |
216 |
|
Loss on disposal of discontinued
operations, net |
378 |
-- |
|
Provision for income
taxes |
319 |
650 |
|
Other expense (income),
net |
185 |
1,636 |
|
Interest expense, net |
9,347 |
11,684 |
|
Expense from divestiture,
acquisition and financing costs |
20 |
553 |
|
Depreciation and
amortization |
15,197 |
14,709 |
|
Severance and reorganization
costs |
107 |
34 |
|
Depletion of landfill operating
lease obligations |
2,627 |
2,288 |
|
Interest accretion on landfill and
environmental remediation liabilities |
1,046 |
933 |
|
Adjusted EBITDA (2) |
$ 28,734 |
$ 24,324 |
|
Depreciation and
amortization |
(15,197) |
(14,709) |
|
Depletion of landfill operating
lease obligations |
(2,627) |
(2,288) |
|
Interest accretion on landfill and
environmental remediation liabilities |
(1,046) |
(933) |
|
Adjusted Operating Income
(2) |
$ 9,864 |
$ 6,394 |
|
|
|
|
|
Following is a reconciliation of Free
Cash Flow to Net Cash Provided by Operating
Activities: |
|
|
|
|
Three Months
Ended |
|
|
July 31, |
July 31, |
|
|
2013 |
2012 |
|
Net Cash Provided by Operating
Activities |
$ 19,526 |
$ 7,722 |
|
Capital expenditures - growth and
maintenance |
(13,407) |
(16,181) |
|
Payments on landfill operating lease
contracts |
(1,982) |
(1,814) |
|
Proceeds from sale of property and
equipment |
284 |
265 |
|
Contributions from noncontrolling interest
holders |
-- |
721 |
|
Free Cash Flow (2) |
$ 4,421 |
$ (9,287) |
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
SUPPLEMENTAL DATA
TABLES |
(Unaudited) |
(In
thousands) |
|
|
|
|
|
Amounts of our total
revenues attributable to services provided for the three months
ended July 31, 2013 and 2012 are as follows: |
|
|
|
|
|
|
Three
Months Ended July 31, |
|
2013 |
% of Total
Revenue |
2012 |
% of Total
Revenue |
Collection |
$ 58,313 |
45.4% |
$ 53,033 |
45.1% |
Disposal |
35,123 |
27.3% |
30,967 |
26.3% |
Power generation |
2,041 |
1.6% |
2,663 |
2.3% |
Processing |
2,851 |
2.2% |
1,435 |
1.2% |
Solid waste
operations |
98,328 |
76.5% |
88,098 |
74.9% |
Organics |
9,877 |
7.7% |
8,853 |
7.5% |
Customer solutions |
9,169 |
7.1% |
9,525 |
8.1% |
Recycling |
11,184 |
8.7% |
11,162 |
9.5% |
Total revenues |
$ 128,558 |
100.0% |
$ 117,638 |
100.0% |
|
|
|
|
|
Components of revenue
growth for the three months ended July 31, 2013 compared to the
three months ended July 31, 2012 are as follows: |
|
Amount |
% of Related
Business |
% of Solid Waste
Operations |
% of Total
Company |
Solid Waste Operations: |
|
|
|
|
Collection |
$ 643 |
1.2% |
0.7% |
0.5% |
Disposal |
(234) |
-0.8% |
-0.2% |
-0.2% |
Solid Waste Yield |
409 |
|
0.5% |
0.3% |
|
|
|
|
|
Collection |
477 |
|
0.5% |
0.4% |
Disposal |
5,712 |
|
6.5% |
4.9% |
Processing |
837 |
|
1.0% |
0.7% |
Solid Waste Volume |
7,026 |
|
8.0% |
6.0% |
|
|
|
|
|
Fuel and oil recovery fee |
(159) |
|
-0.2% |
-0.1% |
Commodity price & volume |
208 |
|
0.2% |
0.2% |
Acquisitions, net divestitures |
3,235 |
|
3.7% |
2.8% |
Closed landfill |
(488) |
|
-0.6% |
-0.5% |
Total Solid Waste |
10,230 |
|
11.6% |
8.7% |
|
|
|
|
|
Organics |
1,024 |
|
|
0.9% |
|
|
|
|
|
Customer Resource
Solutions |
(356) |
|
|
-0.3% |
|
|
|
|
|
Recycling Operations: |
|
|
% of Recycling
Operations |
|
Commodity price |
(1,190) |
|
-10.7% |
-1.0% |
Commodity volume |
1,212 |
|
10.9% |
1.0% |
Total Recycling |
22 |
|
0.2% |
0.0% |
|
|
|
|
|
Total Company |
$ 10,920 |
|
|
9.3% |
|
|
|
|
|
Solid Waste
Internalization Rates by Region: |
|
|
|
|
|
|
|
Three
Months Ended July 31, |
|
|
|
2013 |
2012 |
|
|
Eastern region |
58.7% |
53.8% |
|
|
Western region |
74.5% |
72.5% |
|
|
Solid waste
internalization |
66.5% |
63.9% |
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
SUPPLEMENTAL DATA
TABLES |
(Unaudited) |
(In
thousands) |
|
|
|
GreenFiber Financial Statistics
(1): |
|
|
|
|
|
|
Three
Months Ended July 31, |
|
2013 |
2012 |
Revenues |
$ 14,731 |
$ 13,101 |
Net loss |
(1,995) |
(3,569) |
Cash flow provided by operations |
1,457 |
225 |
Net working capital changes |
1,889 |
1,935 |
Adjusted EBITDA |
$ (432) |
$ (1,710) |
|
|
|
As a percentage of revenues: |
|
|
|
|
|
Net loss |
-13.5% |
-27.2% |
Adjusted EBITDA |
-2.9% |
-13.1% |
|
|
|
(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 July 31, |
|
2013 |
2012 |
Growth capital expenditures: |
|
|
Landfill development |
$ -- |
$ 332 |
Water treatment facility |
-- |
760 |
Transfer station construction |
-- |
-- |
Landfill gas-to-energy project |
-- |
-- |
MRF equipment upgrades |
-- |
-- |
Other |
1,785 |
910 |
Total Growth Capital
Expenditures |
$ 1,785 |
$ 2,002 |
|
|
|
Maintenance capital expenditures: |
|
|
Vehicles, machinery / equipment and
containers |
$ 3,033 |
$ 2,889 |
Landfill construction &
equipment |
7,098 |
10,922 |
Facilities |
1,231 |
228 |
Other |
260 |
140 |
Total Maintenance Capital
Expenditures |
$ 11,622 |
$ 14,179 |
|
|
|
Total Growth and Maintenance Capital
Expenditures |
$ 13,407 |
$ 16,181 |
|
|
|
(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. |
|
|
|
|
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Unaudited) |
(In thousands, except
amounts per share) |
|
|
|
|
|
We have included the
following restated quarterly condensed consolidated statements of
operations, as well as related Adjusted EBITDA and Adjusted
Operating Income schedules, to show the impact that discontinued
operations treatment for BioFuels had on our results of operations
in fiscal year 2013. In addition, the revenue segment data has been
restated by quarter to reflect the realigned segments that were
adopted effective May 1, 2013. |
|
|
|
|
|
Condensed consolidated
statements of operations by quarter for the fiscal year ended April
30, 2013 are as follows: |
|
|
|
|
|
|
Three Months
Ended |
|
April 30, |
January 31, |
October 31, |
July 31, |
|
2013 |
2013 |
2012 |
2012 |
|
|
|
|
|
Revenues |
$ 108,694 |
$ 112,167 |
$ 116,836 |
$ 117,638 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Cost of operations |
78,147 |
81,435 |
82,087 |
81,345 |
General and administration |
14,804 |
14,328 |
13,883 |
15,190 |
Depreciation and amortization |
13,332 |
13,965 |
14,570 |
14,709 |
Expense from divestiture, acquisition and
financing costs |
408 |
372 |
77 |
553 |
Severance and reorganization costs |
246 |
1,636 |
1,793 |
34 |
(Gain) loss on divestiture |
(353) |
353 |
-- |
-- |
|
106,584 |
112,089 |
112,410 |
111,831 |
|
|
|
|
|
Operating income |
2,110 |
78 |
4,426 |
5,807 |
|
|
|
|
|
Other expense/(income), net: |
|
|
|
|
Interest expense, net |
9,081 |
9,159 |
11,506 |
11,684 |
Loss from equity method investment |
1,131 |
1,436 |
109 |
1,766 |
Loss (gain) on derivative
instruments |
640 |
(24) |
3,896 |
-- |
Loss on debt extinguishment |
-- |
5,914 |
9,670 |
-- |
Other income |
(298) |
(298) |
(311) |
(130) |
|
10,554 |
16,187 |
24,870 |
13,320 |
|
|
|
|
|
Loss from continuing operations before income
taxes and discontinued operations |
(8,444) |
(16,108) |
(20,444) |
(7,513) |
Provision (benefit) for income
taxes |
1,373 |
(4,963) |
413 |
650 |
|
|
|
|
|
Loss from continuing operations before
discontinued operations |
(9,817) |
(11,145) |
(20,857) |
(8,163) |
|
|
|
|
|
Discontinued Operations: |
|
|
|
|
Loss from discontinued operations, net of
income taxes |
(3,700) |
(329) |
(235) |
(216) |
|
|
|
|
|
Net loss |
(13,517) |
(11,474) |
(21,092) |
(8,379) |
|
|
|
|
|
Less: Net loss
attributable to noncontrolling interests |
(120) |
(67) |
(125) |
(8) |
|
|
|
|
|
Net loss attributable to common
stockholders |
$ (13,397) |
$ (11,407) |
$ (20,967) |
$ (8,371) |
|
|
|
|
|
Common stock and common stock equivalent
shares outstanding, assuming full dilution |
39,515 |
39,230 |
30,872 |
26,992 |
|
|
|
|
|
Net loss per common share |
$ (0.34) |
$ (0.29) |
$ (0.68) |
$ (0.31) |
|
|
|
|
|
Adjusted EBITDA (2) |
$ 19,355 |
$ 19,783 |
$ 24,382 |
$ 24,324 |
|
|
|
|
|
Amounts of our total
revenues attributable to services provided by quarter for the
fiscal year ended April 30, 2013 are as follows: |
|
|
|
|
|
|
|
Three Months Ended |
|
April 30, |
January 31, |
October 31, |
July 31, |
|
2013 |
2013 |
2012 |
2012 |
Collection |
$ 51,848 |
$ 51,459 |
$ 52,632 |
$ 53,033 |
Disposal |
24,481 |
27,219 |
32,382 |
30,967 |
Power generation |
2,498 |
3,400 |
2,793 |
2,663 |
Processing |
1,751 |
2,111 |
1,604 |
1,435 |
Solid waste
operations |
80,578 |
84,189 |
89,411 |
88,098 |
Organics |
9,358 |
8,725 |
8,394 |
8,853 |
Customer solutions |
8,159 |
8,551 |
9,221 |
9,525 |
Recycling |
10,599 |
10,702 |
9,810 |
11,162 |
Total revenues |
$ 108,694 |
$ 112,167 |
$ 116,836 |
$ 117,638 |
|
|
|
|
|
|
|
|
|
|
Following is
a reconciliation of Adjusted EBITDA to Net Loss by quarter for the
fiscal year ended April 30, 2013: |
|
|
|
|
|
|
|
Three
Months Ended |
|
April 30, |
January 31, |
October 31, |
July 31, |
|
2013 |
2013 |
2012 |
2012 |
|
|
|
|
|
Net Loss |
$ (13,517) |
$ (11,474) |
$ (21,092) |
$ (8,379) |
Loss from discontinued operations,
net |
3,700 |
329 |
235 |
216 |
Provision (benefit) for income
taxes |
1,373 |
(4,963) |
413 |
650 |
Other expense (income), net |
1,473 |
7,028 |
13,364 |
1,636 |
Interest expense, net |
9,081 |
9,159 |
11,506 |
11,684 |
Expense from divestiture, acquisition and
financing costs |
408 |
372 |
77 |
553 |
Depreciation and amortization |
13,332 |
13,965 |
14,570 |
14,709 |
Severance and reorganization
costs |
246 |
1,636 |
1,793 |
34 |
Tax settlement costs |
679 |
-- |
-- |
-- |
Loss (gain) on divestiture |
(353) |
353 |
-- |
-- |
Depletion of landfill operating lease
obligations |
2,014 |
2,480 |
2,591 |
2,288 |
Interest accretion on landfill and
environmental remediation liabilities |
919 |
899 |
925 |
933 |
Adjusted EBITDA (2) |
$ 19,355 |
$ 19,783 |
$ 24,382 |
$ 24,324 |
Depreciation and amortization |
(13,332) |
(13,965) |
(14,570) |
(14,709) |
Depletion of landfill operating lease
obligations |
(2,014) |
(2,480) |
(2,591) |
(2,288) |
Interest accretion on landfill and
environmental remediation liabilities |
(919) |
(899) |
(925) |
(933) |
Adjusted Operating Income
(2) |
$ 3,090 |
$ 2,439 |
$ 6,296 |
$ 6,394 |
CONTACT: Investors:
Ned Coletta
Chief Financial Officer
(802) 772-2239
Media:
Joseph Fusco
Vice President
(802) 772-2247
http://www.casella.com
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