Casella Waste Systems, Inc. Announces Preliminary Results for Fiscal Year 2007 First Quarter
August 16 2006 - 9:16AM
PR Newswire (US)
RUTLAND, Vt., Aug. 16 /PRNewswire-FirstCall/ -- Casella Waste
Systems, Inc. (NASDAQ:CWST), a regional, non-hazardous solid waste
services company, today said that the quarter's overall performance
fell short of expectations and the company will likely report a net
earnings per share (EPS) loss of $(0.02) to $(0.04). The company
said that its overall company revenues for its first quarter of
fiscal year 2007 are on track, with the exception being its South
Eastern region. The company also said it expects its earnings
before interest, taxes, depreciation and amortization (EBITDA*) for
the fiscal year ending April 30, 2007 to be in a range of $113
million to $117 million. The company characterized its first
quarter results as the cumulative impact of the following key
factors: * Historical record rainfalls slowed seasonal construction
activity in the north eastern U.S.; the company reported abnormally
low roll-off container activity on a year-over-year basis in the
Massachusetts market. For the balance of the company's solid waste
markets, roll-off pulls were flat on a year-over-year basis. * The
company's regional landfills incurred higher than normal leachate
treatment and transportation costs, as the volume of rainfall
increased leachate production. The landfills also saw a material
increase in weather-related maintenance costs. * The company's
Worcester, MA landfill closure project faced a weaker-than-expected
pricing environment due to the deep per-ton discounting of airspace
at a competing landfill preparing for closure. The company chose
not to sacrifice its airspace at Worcester at a lower revenue rate;
as a result, the Worcester facility's contribution did not offset
the loss of its Brockton, MA landfill closure project's
contribution on a year-over-year basis. * Lower volumes at the
company's Hardwick, MA landfill. * Higher general and
administration expenses as a percent of revenue. * Plastic
commodities, the only commodity without effective hedges, suffered
a precipitous drop in pricing. The company will host a conference
call with investors on August 17, 2006 at 9:00 a.m. ET. Individuals
interested in participating in the call should dial (719) 457-2617
at least 10 minutes before start time. The call will also be
webcast; to listen, participants should visit Casella Waste
Systems' website at http://www.casella.com/ and follow the
appropriate link to the webcast. A replay of the call will be
available by calling (719) 457-0820 (conference code # 4169209)
before 11:59 p.m. ET, Thursday, August 24, 2006, or by visiting the
company's website. The company expects to release its full first
quarter of fiscal year 2007 results on September 6, 2006 and host a
conference call with investors on September 7, 2006; details of
that investor call will be announced in late August. *Non-GAAP
Financial Measures In addition to disclosing financial results
prepared in accordance with Generally Accepted Accounting
Principles (GAAP), we also disclose free cash flow and earnings
before interest, taxes, depreciation and amortization (EBITDA),
which are non-GAAP measures. These measures are provided because we
understand that certain investors use this information when
analyzing the financial position of the solid waste industry,
including us. Historically, these measures have been key in
comparing operating efficiency of publicly traded companies in the
solid waste industry, and assist investors in measuring our ability
to meet capital expenditure and working capital requirements. For
these reasons we utilize these non- GAAP metrics to measure our
performance at all levels. These measures do not represent, and
should not be considered as alternatives to cash provided by
operating activities as determined in accordance with GAAP.
Moreover, these measures do not necessarily indicate whether cash
flow will be sufficient for such items as working capital or
capital expenditures, or to react to changes in our industry or to
the economy generally. Because these measures are not calculated by
all companies in the same fashion, they may not be comparable to
similarly titled measures reported by other companies. 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," "anticipates,"
"expects" or words of similar import. Similarly, statements that
describe the Company's future plans, objectives or goals are
forward-looking statements. 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: our financial results above are preliminary; we
may be unable to make acquisitions and otherwise develop additional
disposal capacity; continuing weakness in general economic
conditions and weather conditions may affect our revenues; we may
be required to incur capital expenditures in excess of our
estimates; and fluctuations in the commodity pricing of our
recyclables may make it more difficult for us to predict our
results of operations. Other factors which could materially affect
such forward-looking statements can be found in our periodic
reports filed with the Securities and Exchange Commission,
including the Risk Factors section in our Form 10-K for the fiscal
year ended April 30, 2006. For further information, contact Richard
Norris, chief financial officer; or Joseph Fusco, vice president;
at (802) 775-0325, or visit the company's website at
http://www.casella.com/. DATASOURCE: Casella Waste Systems, Inc.
CONTACT: Richard Norris, chief financial officer, or Joseph Fusco,
vice president, +1-802-775-0325, both of Casella Waste Systems,
Inc. Web site: http://www.casella.com/
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