Casella Waste Systems, Inc. (Nasdaq:CWST), a regional solid waste,
recycling and resource management services company, today reported
financial results for its second quarter fiscal year 2014, and
revised its guidance for its fiscal year 2014.
Highlights for the quarter included:
- Revenue growth of $15.5 million, or 13.2 percent, from
the same quarter last year.
- Adjusted EBITDA* was $29.2 million for the quarter, up
$4.8 million, or 19.8 percent, from the same quarter last
year.
- Adjusted Operating Income* was $9.7 million for the
quarter, up $3.4 million, or 53.4 percent, from the same quarter
last year.
- Revenue and Adjusted EBITDA guidance is revised upward
for fiscal year 2014; the second upward revision this fiscal
year.
For the quarter ended October 31, 2013, revenues were $132.3
million, up $15.5 million, or 13.2 percent, from the same quarter
last year, with revenue growth mainly driven by higher disposal
volumes, acquisition activity, and higher solid waste collection
pricing. Overall solid waste pricing growth of 1.0 percent was
primarily driven by residential and commercial pricing growth of
1.7 percent as a percentage of segment revenues.
The company's net loss attributable to common stockholders was
($0.3) million, or ($0.01) per share for the quarter, compared to
($21.0) million, or ($0.68) per share for the same quarter last
year.
Operating income was $9.5 million for the quarter, up $5.0
million from the same quarter last year. The current quarter
includes a $0.2 million environmental remediation charge and a $0.1
million severance and reorganization charge related to general
realignment activities, whereas, the quarter ended October 31, 2012
included a $1.8 million severance and reorganization charge and a
$0.1 million expense related to divestiture, acquisition and
financing costs.
Excluding these charges, Adjusted Operating Income* in the
current quarter was $9.7 million, up $3.4 million from same quarter
last year. Adjusted EBITDA was $29.2 million for the quarter, up
$4.8 million from the same quarter last year.
"We continued to make excellent progress through our second
quarter, with results primarily driven by continued execution in
key areas of management focus - sourcing incremental landfill
volumes; improving collection route profitability; and successfully
executing the multi-year Eastern region strategy," said John W.
Casella, chairman and CEO of Casella Waste Systems.
"Landfill volumes were up 122,000 tons from the same quarter
last year, or up 298,000 tons year-to-date, excluding volumes from
the Worcester landfill closure project," Casella said. "This
improvement was driven by enhanced sales efforts in Western New
York, ramping of tonnages to the Southbridge landfill, the
integration of the BBI acquisition, and a tightening disposal
market in Vermont and New Hampshire due to competitor site
closures. We continued to experience these same positive landfill
tonnage trends into November."
Six Months Financial Results
Highlights for the six months ended October 31, 2013
included:
- Revenue growth of $26.4 million, or 11.3 percent, from
the same period last year.
- Adjusted EBITDA* was $57.9 million for the six-month
period, up $9.2 million, or 19.0 percent, from the same period last
year.
- Adjusted Operating Income* was $19.5 million for the
six-month period, up $6.8 million, or 53.8 percent, from the same
period last year.
For the six months ended October 31, 2013, revenues were $260.9
million, up $26.4 million, or 11.3 percent, from the same period
last year. Operating income was $19.2 million for the six month
period, up $9.0 million from the same period last year. The
company's net loss attributable to common stockholders was ($0.5)
million, or ($0.01) per common share for the six month period,
compared to ($29.3) million, or ($1.01) per share for the same
period last year.
Fiscal 2014 Outlook
"After a solid first two quarters and better visibility into the
remainder of our fiscal year, we have revised our fiscal year 2014
guidance for revenues, Adjusted EBITDA and capital expenditures,"
Casella said. "This revision is based on a consistent framework for
all assumptions outside of our direct control, such as new landfill
volumes or economic growth. Free cash flow guidance remains
unchanged due to higher capital expenditures at the landfills on
higher than expected volumes."
The company updated guidance for the fiscal year ending April
30, 2014, by estimating results in the following ranges:
- Revenues between $480.0 million and $490.0 million (increased
from a range of $470.0 million to $480.0 million);
- Adjusted EBITDA* between $95.0 million and $98.0 million
(increased from a range of $92.0 million and $96.0 million).
- Capital Expenditures of between $44.0 million and $47.0 million
(refined from a range of $42.0 million to $46.0 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 Friday, December 6, 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 11195212) until 11:59 p.m. ET on
Friday, December 13, 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 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
for per share data) |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
October 31, |
October 31, |
October 31, |
October 31, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Revenues |
$ 132,296 |
$ 116,836 |
$ 260,854 |
$ 234,474 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Cost of operations |
90,545 |
82,087 |
178,962 |
163,432 |
General and administration |
16,425 |
13,883 |
31,503 |
29,073 |
Depreciation and amortization |
15,669 |
14,570 |
30,866 |
29,279 |
Environmental remediation charge |
150 |
-- |
150 |
-- |
Severance and reorganization costs |
53 |
1,793 |
161 |
1,827 |
Expense from divestiture, acquisition and
financing costs |
4 |
77 |
24 |
631 |
|
122,846 |
112,410 |
241,666 |
224,242 |
|
|
|
|
|
Operating income |
9,450 |
4,426 |
19,188 |
10,232 |
|
|
|
|
|
Other expense/(income): |
|
|
|
|
Interest expense, net |
9,534 |
11,506 |
18,881 |
23,189 |
(Income) loss from equity method
investments |
(91) |
109 |
887 |
1,875 |
Loss (gain) on derivative
instruments |
629 |
3,896 |
(25) |
3,896 |
Loss on debt extinguishment |
-- |
9,670 |
-- |
9,670 |
Other income |
(392) |
(311) |
(530) |
(441) |
Other expense, net |
9,680 |
24,870 |
19,213 |
38,189 |
|
|
|
|
|
Loss from continuing operations before income
taxes and discontinued operations |
(230) |
(20,444) |
(25) |
(27,957) |
Provision for income taxes |
300 |
413 |
619 |
1,063 |
|
|
|
|
|
Loss from continuing operations before
discontinued operations |
(530) |
(20,857) |
(644) |
(29,020) |
|
|
|
|
|
Discontinued operations: |
|
|
|
|
(Loss) income from discontinued
operations, net of income taxes (1) |
(45) |
(235) |
284 |
(451) |
Loss on disposal of discontinued
operations, net of income taxes (1) |
-- |
-- |
(378) |
-- |
|
|
|
|
|
Net loss |
(575) |
(21,092) |
(738) |
(29,471) |
|
|
|
|
|
Less: Net loss attributable to
noncontrolling interests |
(236) |
(125) |
(207) |
(133) |
|
|
|
|
|
Net loss attributable to common
stockholders |
$ (339) |
$ (20,967) |
$ (531) |
$ (29,338) |
|
|
|
|
|
Weighted average common shares
outstanding |
39,821 |
30,872 |
39,742 |
28,932 |
|
|
|
|
|
Net loss per common share |
$ (0.01) |
$ (0.68) |
$ (0.01) |
$ (1.01) |
|
|
|
|
|
Adjusted EBITDA (2) |
$ 29,212 |
$ 24,382 |
$ 57,947 |
$ 48,706 |
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(In
thousands) |
|
|
|
|
October 31, |
April 30, |
ASSETS |
2013 |
2013 |
|
(Unaudited) |
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 4,953 |
$ 1,755 |
Restricted cash |
76 |
76 |
Accounts receivable - trade, net of
allowance for doubtful accounts |
54,275 |
48,689 |
Other current assets |
17,137 |
14,025 |
Total current assets |
76,441 |
64,545 |
|
|
|
Property, plant and equipment, net of
accumulated depreciation and amortization |
422,407 |
422,502 |
Goodwill |
118,257 |
115,928 |
Intangible assets, net |
12,430 |
11,674 |
Restricted assets |
645 |
545 |
Notes receivable - related party |
149 |
147 |
Investments in unconsolidated entities |
19,217 |
20,252 |
Other non-current assets |
28,967 |
27,526 |
|
|
|
Total assets |
$ 678,513 |
$ 663,119 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
Current maturities of long-term debt and
capital leases |
$ 430 |
$ 857 |
Current maturities of financing lease
obligations |
374 |
361 |
Accounts payable |
49,542 |
51,974 |
Other accrued liabilities |
39,234 |
34,906 |
Total current liabilities |
89,580 |
88,098 |
|
|
|
Long-term debt and capital leases, less
current maturities |
507,159 |
493,531 |
Financing lease obligations, less current
maturities |
1,266 |
1,456 |
Other long-term liabilities |
64,668 |
64,583 |
|
|
|
Total stockholders' equity |
15,840 |
15,451 |
|
|
|
Total liabilities and stockholders'
equity |
$ 678,513 |
$ 663,119 |
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In
thousands) |
|
|
|
|
Six Months
Ended |
|
October 31, |
October 31, |
|
2013 |
2012 |
Cash Flows from Operating
Activities: |
|
|
Net loss |
$ (738) |
$ (29,471) |
Adjustments to reconcile net loss to net cash
provided by operating activities: |
|
|
(Income) loss from discontinued
operations, net |
(284) |
451 |
Loss on disposal of discontinued
operations, net |
378 |
-- |
Gain on sale of property and
equipment |
(389) |
(209) |
Depreciation and amortization |
30,866 |
29,279 |
Depletion of landfill operating lease
obligations |
5,491 |
4,878 |
Interest accretion on landfill and
environmental remediation liabilities |
2,068 |
1,858 |
Amortization of discount on second lien
notes and senior subordinated notes |
119 |
502 |
Loss from equity method investments |
887 |
1,875 |
(Gain) loss on derivative
instruments |
(25) |
3,896 |
Loss on debt extinguishment |
-- |
9,670 |
Stock-based compensation |
1,209 |
1,306 |
Excess tax benefit on the vesting of
share based awards |
-- |
(188) |
Deferred income taxes |
504 |
907 |
Changes in assets and liabilities, net of
effects of acquisitions and divestitures |
(11,967) |
(1,986) |
Net Cash Provided by Operating
Activities |
28,119 |
22,768 |
Cash Flows from Investing
Activities: |
|
|
Acquisitions, net of cash
acquired |
(2,822) |
(4,635) |
Additions to property, plant and
equipment - acquisition |
(1,365) |
(417) |
- growth |
(3,249) |
(8,198) |
- maintenance |
(22,810) |
(24,776) |
Payments on landfill operating lease
contracts |
(3,471) |
(3,298) |
Payment for capital related to
divestiture |
-- |
(618) |
Investments in unconsolidated
entities |
(2,148) |
(1,000) |
Proceeds from sale of property and
equipment |
929 |
543 |
Net Cash Used In Investing
Activities |
(34,936) |
(42,399) |
Cash Flows from Financing
Activities: |
|
|
Proceeds from long-term
borrowings |
83,190 |
236,177 |
Principal payments on long-term
debt |
(72,586) |
(227,028) |
Change in restricted cash |
-- |
(23,579) |
Payment of tender premium and costs on
second lien notes |
-- |
(6,745) |
Payments of financing costs |
(388) |
(4,329) |
Net proceeds from the sale of Class A
common stock |
-- |
42,149 |
Excess tax benefit on the vesting of
share based awards |
-- |
188 |
Contributions from noncontrolling
interest holders |
-- |
1,195 |
Net Cash Provided By Financing
Activities |
10,216 |
18,028 |
Net Cash Used In Discontinued
Operations |
(201) |
(1,030) |
Net increase (decrease) in cash and cash
equivalents |
3,198 |
(2,633) |
Cash and cash equivalents, beginning of
period |
1,755 |
4,534 |
Cash and cash equivalents, end of
period |
$ 4,953 |
$ 1,901 |
|
|
|
Supplemental Disclosures: |
|
|
Cash interest |
$ 17,577 |
$ 22,234 |
Cash income tax payments, net |
$ 622 |
$ 71 |
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. Demolition is nearly complete, pending
final approval of work plans by the United States Environmental
Protection Agency, and the time for completion has been
consensually extended by Maine Energy and the City of Biddeford. 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 have withdrawn 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 FASB ASC 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 previously classified as held-for-sale, and included
in discontinued operations as of April 30, 2013, include certain
inventory along with plant and equipment. In the first quarter of
fiscal year 2014, 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 over five years commencing
November 1, 2013, subject to the terms of the purchase and sale
agreement. We recognized a $378 loss on disposal of discontinued
operations in the first quarter of fiscal year 2014 associated with
the disposition. Revenues and (loss) income before income taxes
attributable to discontinued operations for the three and six
months ended October 31, 2013 and 2012, respectively, are as
follows:
|
Three Months
Ended October 31, |
Six Months Ended
October 31, |
|
2013 |
2012 |
2013 |
2012 |
Revenues |
$ 5 |
$ 3,498 |
$ 3,316 |
$ 7,055 |
(Loss) income before income taxes |
$ (45) |
$ (235) |
$ 284 |
$ (451) |
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 |
Six Months
Ended |
|
October 31, |
October 31, |
October 31, |
October 31, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Net Loss |
$ (575) |
$ (21,092) |
$ (738) |
$ (29,471) |
Loss (income) from discontinued
operations, net |
45 |
235 |
(284) |
451 |
Loss on disposal of discontinued
operations, net |
-- |
-- |
378 |
-- |
Provision for income taxes |
300 |
413 |
619 |
1,063 |
Other expense, net |
146 |
13,364 |
331 |
15,001 |
Interest expense, net |
9,534 |
11,506 |
18,881 |
23,189 |
Expense from divestiture, acquisition and
financing costs |
4 |
77 |
24 |
631 |
Depreciation and amortization |
15,669 |
14,570 |
30,866 |
29,279 |
Severance and reorganization
costs |
53 |
1,793 |
161 |
1,827 |
Environmental remediation
charge |
150 |
-- |
150 |
-- |
Depletion of landfill operating lease
obligations |
2,864 |
2,591 |
5,491 |
4,878 |
Interest accretion on landfill and
environmental remediation liabilities |
1,022 |
925 |
2,068 |
1,858 |
Adjusted EBITDA (2) |
$ 29,212 |
$ 24,382 |
$ 57,947 |
$ 48,706 |
Depreciation and amortization |
(15,669) |
(14,570) |
(30,866) |
(29,279) |
Depletion of landfill operating lease
obligations |
(2,864) |
(2,591) |
(5,491) |
(4,878) |
Interest accretion on landfill and
environmental remediation liabilities |
(1,022) |
(925) |
(2,068) |
(1,858) |
Adjusted Operating Income
(2) |
$ 9,657 |
$ 6,296 |
$ 19,522 |
$ 12,691 |
|
|
|
|
|
Following is a reconciliation of Free
Cash Flow to Net Cash Provided by Operating
Activities: |
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
October 31, |
October 31, |
October 31, |
October 31, |
|
2013 |
2012 |
2013 |
2012 |
Net Cash Provided by Operating
Activities |
$ 8,593 |
$ 15,046 |
$ 28,119 |
$ 22,768 |
Capital expenditures - growth and
maintenance |
(12,652) |
(16,793) |
(26,059) |
(32,974) |
Payments on landfill operating lease
contracts |
(1,489) |
(1,484) |
(3,471) |
(3,298) |
Proceeds from sale of property and
equipment |
645 |
278 |
929 |
543 |
Contributions from noncontrolling interest
holders |
-- |
474 |
-- |
1,195 |
Free Cash Flow (2) |
$ (4,903) |
$ (2,479) |
$ (482) |
$ (11,766) |
|
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 six
months ended October 31, 2013 and 2012 are as
follows: |
|
|
|
|
|
|
Three Months
Ended October 31, |
|
2013 |
% of Total
Revenue |
2012 |
% of Total
Revenue |
Collection |
$ 58,932 |
44.5% |
$ 52,632 |
45.0% |
Disposal |
37,374 |
28.3% |
32,382 |
27.7% |
Power generation |
1,980 |
1.5% |
2,793 |
2.4% |
Processing |
2,512 |
1.9% |
1,604 |
1.4% |
Solid waste
operations |
100,798 |
76.2% |
89,411 |
76.5% |
Organics |
9,474 |
7.2% |
8,394 |
7.2% |
Customer solutions |
10,518 |
8.0% |
9,221 |
7.9% |
Recycling |
11,506 |
8.7% |
9,810 |
8.4% |
Total revenues |
$ 132,296 |
100.0% |
$ 116,836 |
100.0% |
|
|
|
|
|
|
Six Months Ended
October 31, |
|
2013 |
% of Total
Revenue |
2012 |
% of Total
Revenue |
Collection |
$ 117,245 |
44.9% |
$ 105,665 |
45.1% |
Disposal |
72,497 |
27.8% |
63,349 |
27.0% |
Power generation |
4,022 |
1.5% |
5,456 |
2.3% |
Processing |
5,364 |
2.1% |
3,039 |
1.3% |
Solid waste
operations |
199,128 |
76.3% |
177,509 |
75.7% |
Organics |
19,350 |
7.4% |
17,247 |
7.4% |
Customer solutions |
19,686 |
7.5% |
18,746 |
8.0% |
Recycling |
22,690 |
8.8% |
20,972 |
8.9% |
Total revenues |
$ 260,854 |
100.0% |
$ 234,474 |
100.0% |
|
|
|
|
|
Components of revenue
growth for the three months ended October 31, 2013 compared to the
three months ended October 31, 2012 are as follows: |
|
|
Amount |
% of Related
Business |
% of Solid Waste
Operations |
% of Total
Company |
Solid Waste Operations: |
|
|
|
|
Collection |
$ 950 |
1.8% |
1.1% |
0.8% |
Disposal |
180 |
0.6% |
0.2% |
0.2% |
Solid Waste Yield |
1,130 |
|
1.3% |
1.0% |
|
|
|
|
|
Collection |
1,033 |
|
1.1% |
0.9% |
Disposal |
5,344 |
|
6.0% |
4.5% |
Processing |
99 |
|
0.1% |
0.1% |
Solid Waste Volume |
6,476 |
|
7.2% |
5.5% |
|
|
|
|
|
Fuel and oil recovery fee |
(95) |
|
-0.1% |
-0.1% |
Commodity price & volume |
187 |
|
0.2% |
0.2% |
Acquisitions, net divestitures |
3,689 |
|
4.1% |
3.2% |
Closed landfill |
-- |
|
0.0% |
0.0% |
Total Solid Waste |
11,387 |
|
12.7% |
9.8% |
|
|
|
|
|
Organics |
1,080 |
|
|
0.9% |
|
|
|
|
|
Customer Solutions |
1,297 |
|
|
1.1% |
|
|
|
|
|
Recycling Operations: |
|
|
% of Recycling
Operations |
|
Commodity price |
970 |
|
9.9% |
0.8% |
Commodity volume |
726 |
|
7.4% |
0.6% |
Total Recycling |
1,696 |
|
17.3% |
1.4% |
|
|
|
|
|
Total Company |
$ 15,460 |
|
|
13.2% |
|
|
|
|
|
Solid Waste Internalization Rates by
Region: |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended October 31, |
Six Months Ended
October 31, |
|
2013 |
2012 |
2013 |
2012 |
Eastern region |
47.5% |
53.5% |
53.8% |
53.7% |
Western region |
74.4% |
74.2% |
74.4% |
73.4% |
Solid waste
internalization |
61.8% |
65.0% |
64.3% |
64.5% |
|
CASELLA WASTE SYSTEMS,
INC. AND SUBSIDIARIES |
SUPPLEMENTAL DATA
TABLES |
(Unaudited) |
(In
thousands) |
|
|
|
|
|
GreenFiber Financial Statistics
(1): |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended October 31, |
Six Months Ended
October 31, |
|
2013 |
2012 |
2013 |
2012 |
Revenues |
$ 20,840 |
$ 19,494 |
$ 35,570 |
$ 32,595 |
Net income (loss) |
152 |
(297) |
(1,843) |
(3,866) |
Cash flow (used in) provided by
operations |
(82) |
805 |
1,375 |
1,031 |
Net working capital changes |
(1,757) |
(662) |
133 |
1,274 |
Adjusted EBITDA |
$ 1,675 |
$ 1,467 |
$ 1,242 |
$ (243) |
|
|
|
|
|
As a percentage of revenues: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
0.7% |
-1.5% |
-5.2% |
-11.9% |
Adjusted EBITDA |
8.0% |
7.5% |
3.5% |
-0.7% |
|
|
|
|
|
(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 October 31, |
Six Months Ended
October 31, |
|
2013 |
2012 |
2013 |
2012 |
Growth capital expenditures: |
|
|
|
|
Landfill development |
$ 54 |
$ 257 |
$ 54 |
$ 589 |
Water treatment facility |
-- |
3,908 |
-- |
4,668 |
Transfer station construction |
174 |
1,434 |
174 |
1,434 |
Other |
1,236 |
597 |
3,021 |
1,507 |
Total Growth Capital
Expenditures |
$ 1,464 |
$ 6,196 |
$ 3,249 |
$ 8,198 |
|
|
|
|
|
Maintenance capital expenditures: |
|
|
|
|
Vehicles, machinery / equipment and
containers |
$ 2,405 |
$ 2,925 |
$ 5,438 |
$ 5,814 |
Landfill construction &
equipment |
8,202 |
7,172 |
15,300 |
18,094 |
Facilities |
467 |
367 |
1,698 |
595 |
Other |
114 |
133 |
374 |
273 |
Total Maintenance Capital
Expenditures |
$ 11,188 |
$ 10,597 |
$ 22,810 |
$ 24,776 |
|
|
|
|
|
Total Growth and Maintenance Capital
Expenditures |
$ 12,652 |
$ 16,793 |
$ 26,059 |
$ 32,974 |
|
|
|
|
|
(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. |
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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