Casella reports fiscal year 2012 results
Tue Jul 3 2012
Casella Waste Systems, Inc (NASDAQ: CWST), of Rutland, Vermont, in its year-end report states that annual revenues were up for fiscal year 2012 to $480.8 million, while net loss was -$2.90 per common share, compared to a net income of $38.4 million, or $1.47 per share for 2011. Casella's share price opened on July 3 at $5.42, which is on the lower end of its 52-week hi/low ($4.50 - $7.15).
Casella is a regional solid waste, recycling and resource management services company, which offered the following report of its 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 millionor 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 ourEastern 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 athttp://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.
RUTLAND, VT -- (Marketwire) -- 06/27/12