Casella Waste Systems, Inc. Announces Third Quarter Fiscal Year 2013 Results; Updates Guidance for Its Fiscal Year
Highlights for the quarter included:
- Revenue growth of 0.4 percent over the same quarter last year.
- Overall solid waste pricing growth of 1.0 percent was primarily driven by collection pricing growth of 1.9 percent as a percentage of collection revenues.
- Adjusted EBITDA* was
$19.7 million for the quarter.
For the quarter ended
The current quarter includes a
Excluding the unusual and one-time charges from each period and assuming no tax impact, the company's net loss attributable to common shareholders was
Operating loss was
"We continued to face operating challenges throughout our business in the third quarter," said
"We accomplished three important developments in the quarter which we believe position the company well for the future, specifically:
- "We sold our Maine Energy facility to the
City of Biddeford, Maine onNovember 30, 2012 and then permanently closed the facility onDecember 31, 2012 . OnJanuary 2, 2013 , we began transferring waste through our newly constructed transfer station inWestbrook, Maine to other disposal facilities, including our North Country andSouthbridge landfills." - "We completed the acquisition of all of the outstanding capital stock of BBI on
December 6, 2012 . BBI's operations overlay well with our footprint inNew Hampshire andMaine and we expect the acquisition to drive incremental value from our existing operations through operational synergies and internalization benefits, and to provide a growth platform in several new market areas." - "On
January 18, 2013 , theMassachusetts Department of Environmental Protection increased the annual permit limit at ourSouthbridge landfill to 405,000 tons per year of municipal solid waste (MSW) from the previous limit of 300,000 tons per year of MSW. We have begun to ramp tonnages to the site, and given the scarcity of disposal capacity in theMassachusetts market, we expect to be operating at our newly permitted annual tonnage level by the summer of 2013."
"In early December, we reset the strategic direction of the company with two changes to our senior management team," Casella said. "These changes furthered the steps we made in August to move responsibility and accountability from the corporate office to local operating units. The new leadership team is focused on making the cultural and structural changes necessary to drive the company to profitability. The solid waste business is inherently a local business and by giving flexibility to the local teams, we believe that we can lead in each market by reducing our cost of service and providing our customers with exceptional service and solutions."
Fiscal 2013 Outlook
Due primarily to the negative impact of lower than expected landfill volumes, softness in the collection line-of-business, and project delays, the company adjusted its fiscal year guidance in the following categories:
- Revenues between
$462.0 million and $472.0 million . - Adjusted EBITDA* between
$87.0 million and $90.0 million .
The negative variances from our fiscal year forecast as presented in December to this current forecast include the following impacts from the third quarter and our conservative expectations about the remainder of the fiscal year:
- While we expected performance in the disposal line-of-business to decline year-over-year in our third quarter, actual performance was below expectations due to lower than anticipated landfill volumes (most pronounced at our western
New York landfills), an unfavorable shift in mix, and a regulatory delay in accessing additional airspace at theWorcester landfill closure project. Given the actual lower results from our third quarter and our current revised forecast for the remainder of our fiscal year, we expect disposal Adjusted EBITDA to be approximately$2.8 million lower than that reflected in our December fiscal year forecast. - The collection line-of-business underperformed our December forecast with weaker than expected volumes. Given the actual lower results from our third quarter and our downwardly revised forecast for the remainder of our fiscal year, we expect Adjusted EBITDA in the collection line-of-business to be approximately
$3.4 million lower than that reflected in our December fiscal year forecast. - The processing line-of-business underperformed our December forecast with weaker than expected operating performance and the delayed ramp-up of a new facility. Given the actual lower results from our third quarter and our revised forecast for the remainder of our fiscal year, we expect Adjusted EBITDA in the processing line-of-business to be approximately
$2.6 million lower than that reflected in our December fiscal year forecast.
*Non-GAAP Financial Measures
In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles in
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
Conference call to discuss quarter
The Company will host a conference call to discuss these results on
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; we may be unable to decommission our waste-to-energy facility on a timely basis; 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
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 Nine Months Ended ------------------------ ------------------------ January 31, January 31, January 31, January 31, 2013 2012 2013 2012 ----------- ----------- ----------- ----------- Revenues $ 115,002 $ 114,578 $ 356,531 $ 371,637 Operating expenses: Cost of operations 84,168 81,398 254,417 253,248 General and administration 14,480 13,933 43,788 46,202 Depreciation and amortization 14,045 14,827 43,433 44,394 Severance and reorganization costs 1,636 - 3,463 - Expense from divestiture, acquisition and financing costs 372 - 1,003 - Loss on divestiture (1) 353 - 353 - Legal settlement - - - 1,359 Development project charge - - - 131 ----------- ----------- ----------- ----------- 115,054 110,158 346,457 345,334 ----------- ----------- ----------- ----------- Operating (loss) income (52) 4,420 10,074 26,303 Other expense/(income), net: Interest expense, net 9,357 11,508 32,890 33,865 Loss from equity method investments 1,436 6,383 3,311 10,163 Impairment of equity method investment - 10,680 - 10,680 (Gain) loss on derivative instruments (24) - 3,871 - Loss on debt extinguishment 5,914 - 15,584 - Other income (298) (117) (737) (549) ----------- ----------- ----------- ----------- 16,385 28,454 54,919 54,159 ----------- ----------- ----------- ----------- Loss from continuing operations before income taxes and discontinued operations (16,437) (24,034) (44,845) (27,856) (Benefit) provision for income taxes (4,963) 601 (3,899) 1,330 ----------- ----------- ----------- ----------- Loss from continuing operations before discontinued operations (11,474) (24,635) (40,946) (29,186) Discontinued operations: Gain on disposal of discontinued operations, net of income taxes (1) - - - 725 ----------- ----------- ----------- ----------- Net loss (11,474) (24,635) (40,946) (28,461) ----------- ----------- ----------- ----------- Less: Net loss attributable to noncontrolling interest (67) - (199) - ----------- ----------- ----------- ----------- Net loss attributable to common stockholders $ (11,407) $ (24,635) $ (40,747) $ (28,461) =========== =========== =========== =========== Weighted average common shares outstanding 39,230 26,822 32,365 26,715 =========== =========== =========== =========== Net loss per common share $ (0.29) $ (0.92) $ (1.26) $ (1.07) =========== =========== =========== =========== Adjusted EBITDA (2) $ 19,733 $ 22,175 $ 68,440 $ 81,369 =========== =========== =========== =========== CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) January 31, April 30, ASSETS 2013 2012 ----------- ----------- CURRENT ASSETS: Cash and cash equivalents $ 1,112 $ 4,534 Restricted cash 76 76 Accounts receivable - trade, net of allowance for doubtful accounts 50,425 47,472 Other current assets 18,200 15,274 ----------- ----------- Total current assets 69,813 67,356 Property, plant and equipment, net of accumulated depreciation and amortization 428,452 416,717 Goodwill 116,281 101,706 Intangible assets, net 11,979 2,970 Restricted assets 523 424 Notes receivable - related party/employee 516 722 Investments in unconsolidated entities 19,431 22,781 Other non-current assets 26,158 21,067 ----------- ----------- Total assets $ 673,153 $ 633,743 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt and capital leases $ 992 $ 1,228 Current maturities of financing lease obligations 355 338 Accounts payable 47,695 46,709 Other accrued liabilities 49,549 40,060 ----------- ----------- Total current liabilities 98,591 88,335 Long-term debt and capital leases, less current maturities 490,686 473,381 Financing lease obligations, less current maturities 1,549 1,818 Other long-term liabilities 55,392 51,978 Total stockholders' equity 26,935 18,231 ----------- ----------- Total liabilities and stockholders' equity $ 673,153 $ 633,743 =========== =========== CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended ------------------------ January 31, January 31, 2013 2012 ----------- ----------- Cash Flows from Operating Activities: Net loss $ (40,946) $ (28,461) Gain on disposal of discontinued operations, net - (725) Adjustments to reconcile net loss to net cash provided by operating activities - Gain on sale of property and equipment (422) (902) Depreciation and amortization 43,433 44,394 Depletion of landfill operating lease obligations 7,358 6,570 Interest accretion on landfill and environmental remediation liabilities 2,756 2,613 Loss on divestiture 353 - Development project charge - 131 Amortization of discount on second lien notes and senior subordinated notes 568 712 Loss from equity method investments 3,311 10,163 Impairment of equity method investment - 10,680 Loss on derivative instruments, net 3,871 - Loss on debt extinguishment 15,584 - Stock-based compensation expense and related severance expense 1,840 1,307 Excess tax benefit on the vesting of share based awards (98) (254) Deferred income taxes (4,057) 1,548 Changes in assets and liabilities, net of effects of acquisitions and divestitures (3,025) 1,966 ----------- ----------- Net Cash Provided by Operating Activities 30,526 49,742 ----------- ----------- Cash Flows from Investing Activities: Acquisitions, net of cash acquired (25,106) (2,102) Additions to property, plant and equipment - acquisitions (528) (168) - growth (10,415) (9,833) - maintenance (33,526) (39,279) Payment for capital related to divestiture (618) - Payments on landfill operating lease contracts (5,726) (6,052) Proceeds from sale of property and equipment 795 1,337 Investments in unconsolidated entities (1,000) (4,146) ----------- ----------- Net Cash Used In Investing Activities (76,124) (60,243) ----------- ----------- Cash Flows from Financing Activities: Proceeds from long-term borrowings 334,497 127,900 Principal payments on long-term debt (320,483) (119,433) Payment of tender premium and costs on second lien notes (10,743) - Payments of financing costs (4,572) (142) Net proceeds from the sale of Class A common stock 42,184 - Proceeds from the exercise of share based awards - 337 Excess tax benefit on the vesting of share based awards 98 254 Contributions from noncontrolling interest holder 1,195 174 ----------- ----------- Net Cash Provided By Financing Activities 42,176 9,090 ----------- ----------- Net Cash Provided By Discontinued Operations - 725 ----------- ----------- Net decrease in cash and cash equivalents (3,422) (686) Cash and cash equivalents, beginning of period 4,534 1,817 ----------- ----------- Cash and cash equivalents, end of period $ 1,112 $ 1,131 =========== =========== Supplemental Disclosures: Cash interest $ 26,933 $ 31,952 Cash income taxes, net of refunds $ 97 $ 5,314
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (In thousands) Note 1: Divestiture and Discontinued Operations Maine Energy Divestiture OnAugust 1, 2012 , we executed a purchase and sale agreement with theCity of Biddeford, Maine pursuant to which we agreed to sell the real property of Maine Energy, which resides in our Eastern region, to theCity of Biddeford , subject to satisfaction of conditions precedent and closing. We agreed to sell Maine Energy for undiscounted purchase consideration of$6,650 , which shall be paid in installments over the next 21 years, subject to the terms of the purchase and sale agreement. The transaction closed onNovember 30, 2012 and we waived certain conditions precedent not satisfied at that time. EffectiveDecember 31, 2012 , we closed the facility and initiated the decommissioning process in accordance with the provisions of the agreement. Following the decommissioning of Maine Energy, 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 recorded a charge to loss on divestiture of$353 in the three months endedJanuary 31, 2013 as a result of this transaction. Discontinued Operations OnJanuary 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 byPegasus Capital Advisors, L.P. andIntersection LLC . Pursuant to these agreements, we divested non-integrated recycling assets located outside our core operating regions ofNew York ,Massachusetts ,Vermont ,New Hampshire ,Maine and northernPennsylvania , 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 onMarch 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. 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 income taxes 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 income taxes, which related to our subsequent collection of receivable balances that were released to us for collection by the Purchaser. Note 2: Non - GAAP Financial Measures In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles inthe 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, 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, 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 holder, 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 Nine Months Ended ------------------------ ------------------------ January 31, January 31, January 31, January 31, 2013 2012 2013 2012 ----------- ----------- ----------- ----------- Net Loss $ (11,474) $ (24,635) $ (40,946) $ (28,461) Gain on disposal of discontinued operations, net - - - (725) (Benefit) provision for income taxes (4,963) 601 (3,899) 1,330 Other expense, net 7,028 16,946 22,029 20,293 Interest expense, net 9,357 11,508 32,890 33,865 Legal settlement - - - 1,359 Loss on divestiture (1) 353 - 353 - Expense from divestiture, acquisition and financing costs 372 - 1,003 - Depreciation and amortization 14,045 14,827 43,433 44,394 Development project charge - - - 131 Severance and reorganization costs 1,636 - 3,463 - Depletion of landfill operating lease obligations 2,480 2,055 7,358 6,570 Interest accretion on landfill and environmental remediation liabilities 899 873 2,756 2,613 ----------- ----------- ----------- ----------- Adjusted EBITDA (2) $ 19,733 $ 22,175 $ 68,440 $ 81,369 Depreciation and amortization (14,045) (14,827) (43,433) (44,394) Depletion of landfill operating lease obligations (2,480) (2,055) (7,358) (6,570) Interest accretion on landfill and environmental remediation liabilities (899) (873) (2,756) (2,613) ----------- ----------- ----------- ----------- Adjusted Operating Income (2) $ 2,309 $ 4,420 $ 14,893 $ 27,792 =========== =========== =========== =========== Following is a reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities: Three Months Ended Nine Months Ended ------------------------ ------------------------ January 31, January 31, January 31, January 31, 2013 2012 2013 2012 ----------- ----------- ----------- ----------- Net Cash Provided by Operating Activities $ 8,151 $ 8,264 $ 30,526 $ 49,742 Capital expenditures - growth and maintenance (10,192) (13,275) (43,941) (49,112) Payments on landfill operating lease contracts (2,428) (2,738) (5,726) (6,052) Proceeds from sale of property and equipment 238 167 795 1,337 Contributions from noncontrolling interest holder - 174 1,195 174 ----------- ----------- ----------- ----------- Free Cash Flow (2) $ (4,231) $ (7,408) $ (17,151) $ (3,911) =========== =========== =========== ===========
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 nine months endedJanuary 31, 2013 and 2012 are as follows: Three Months Ended January 31, ------------------------------------------ % of Total % of Total 2013 Revenue 2012 Revenue --------- ---------- --------- ---------- Collection $ 51,459 44.7% $ 48,875 42.7% Disposal 27,219 23.7% 30,220 26.4% Power generation 3,400 3.0% 3,182 2.8% Processing and organics 14,469 12.6% 12,231 10.7% --------- ---------- --------- ---------- Solid waste operations 96,547 84.0% 94,508 82.6% Major accounts 8,551 7.4% 9,198 7.9% Recycling 9,904 8.6% 10,872 9.5% --------- ---------- --------- ---------- Total revenues $ 115,002 100.0% $ 114,578 100.0% ========= ========== ========= ========== Nine Months Ended January 31, ------------------------------------------ % of Total % of Total 2013 Revenue 2012 Revenue --------- ---------- --------- ---------- Collection $ 157,124 44.1% $ 157,265 42.3% Disposal 90,569 25.4% 96,645 26.0% Power generation 8,856 2.5% 9,415 2.5% Processing and organics 43,378 12.1% 40,961 11.1% --------- ---------- --------- ---------- Solid waste operations 299,927 84.1% 304,286 81.9% Major accounts 27,296 7.7% 29,756 8.0% Recycling 29,308 8.2% 37,595 10.1% --------- ---------- --------- ---------- Total revenues $ 356,531 100.0% $ 371,637 100.0% ========= ========== ========= ========== Components of revenue growth for the three months endedJanuary 31, 2013 compared to the three months endedJanuary 31, 2012 are as follows: % of % of Solid Related Waste % of Total Amount Business Operations Company ------------ ----------- ----------- ----------- Solid Waste Operations: Collection $ 905 1.9% 0.9% 0.8% Disposal 86 0.3% 0.1% 0.1% ------------ ----------- ----------- Solid Waste Yield 991 1.0% 0.9% Collection (1,769) -1.8% -1.5% Disposal (562) -0.6% -0.5% Organics and processing 1,055 1.1% 0.9% ------------ ----------- ----------- Solid Waste Volume (1,276) -1.3% -1.1% Fuel surcharge 289 0.3% 0.3% Commodity price & volume 1,507 1.6% 1.3% Acquisitions, net divestitures 2,460 2.6% 2.1% Closed landfill (1,931) -2.0% -1.7% ------------ ----------- ----------- Total Solid Waste 2,039 2.2% 1.8% ------------ =========== =========== Major Accounts (647) -0.6% ------------ =========== Recycling Operations: % of Recycling Operations ----------- Commodity price (1,187) -10.9% -1.0% Commodity volume 219 2.0% 0.2% ------------ ----------- ----------- Total Recycling (968) -8.9% -0.8% ------------ =========== =========== Total Company $ 424 0.4% ============ =========== Solid Waste Internalization Rates by Region: Three Months Ended Nine Months Ended January 31, January 31, -------------------- -------------------- 2013 2012 2013 2012 --------- --------- --------- --------- Eastern region 54.0% 51.9% 53.8% 55.4% Western region 74.0% 77.5% 73.6% 76.8% Solid waste internalization 64.8% 65.3% 64.5% 66.7% CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES SUPPLEMENTAL DATA TABLES (Unaudited) (In thousands) GreenFiber Financial Statistics (1): Three Months Ended Nine Months Ended January 31, January 31, ---------------------- ---------------------- 2013 2012 2013 2012 ---------- ---------- ---------- ---------- Revenues $ 17,608 $ 23,460 $ 50,203 $ 61,317 Net loss (2,785) (12,818) (6,651) (20,382) Cash flow used in operations (1,151) (2,971) (120) (5,229) Net working capital changes (314) (2,602) 960 (1,877) Adjusted EBITDA $ (837) $ (369) $ (1,080) $ (3,352) As a percentage of revenues: Net loss -15.8% -54.6% -13.2% -33.2% Adjusted EBITDA -4.8% -1.6% -2.2% -5.5% (1) We hold a 50% interest inUS 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 Nine Months Ended January 31, January 31, ---------------------- ---------------------- 2013 2012 2013 2012 ---------- ---------- ---------- ---------- Growth capital expenditures: Landfill development $ - $ 414 $ 589 $ 658 Water treatment facility 207 - 4,875 - Transfer station construction 1,775 - 3,209 - Landfill gas-to-energy project - 208 - 1,367 MRF equipment upgrades - 97 - 3,104 Other 176 2,704 1,742 4,704 ---------- ---------- ---------- ----------Total Growth Capital Expenditures 2,158 3,423 10,415 9,833 ---------- ---------- ---------- ---------- Maintenance capital expenditures: Vehicles, machinery / equipment and containers $ 903 $ 5,166 $ 7,249 $ 15,474 Landfill construction & equipment 5,561 3,810 23,655 20,614 Facilities 1,466 714 2,245 2,704 Other 104 162 377 487 ---------- ---------- ---------- ----------Total Maintenance Capital Expenditures 8,034 9,852 33,526 39,279 ---------- ---------- ---------- ---------- Total Growth and Maintenance Capital Expenditures $ 10,192 $ 13,275 $ 43,941 $ 49,112 ========== ========== ========== ========== (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.
Investors:Ned Coletta Chief Financial Officer (802) 772-2239 Media:Joseph Fusco Vice President (802) 772-2247 http://www.casella.com
Source:
News Provided by Acquire Media