Casella Waste Systems, Inc. (NASDAQ:CWST), a regional solid waste,
recycling and resource management services company, today reported
its first quarter financial results for the three month period
ended March 31, 2016.
Highlights for the Three Months Ended
March 31, 2016:
- Revenues were $125.4 million for the quarter, up $8.9
million, or 7.6%, from the same period in 2015.
- Adjusted EBITDA* was $19.3 million for the quarter, up
$4.8 million, or 33.1%, from the same period in 2015. Net
Loss was ($7.6) million, an improvement of $0.4 million from the
same period in 2015.
- Adjusted Operating Income* for the quarter was $2.0
million, up $3.8 million from the same period in
2015.
- Overall solid waste pricing for the quarter was up
4.7%, mainly driven by strong collection pricing up
6.7%.
“Our solid results in the first quarter were driven by continued
execution against our key management strategies, a mild winter in
the Northeast, and selective strengthening of the regional
economy,” said John W. Casella, chairman and CEO of Casella Waste
Systems. “I am very pleased with our financial and
operational performance during the quarter, and I believe that we
are well positioned to continue to execute in fiscal year 2016 and
beyond.”
“We continued to expand Adjusted Operating Income margins in the
quarter, up roughly 310 bps year-over-year, as our strong pricing
and operating efficiency programs enabled us to outpace inflation
during the period,” Casella said. "Our efforts to drive
pricing in the collection and disposal lines-of-business continued
to gain strength through the first quarter. Overall solid
waste pricing was up 4.7%, with particular strength in the
collection line-of-business, where we experienced our highest
pricing growth in over 10 years at 6.7%. Adding to this
success, we advanced disposal pricing 2.8% in our Eastern Region as
we further capitalized on the tightening disposal markets across
this market area. These strong pricing gains were
complemented by improvements from our operating efficiency programs
with our fleet and routing programs driving lower costs.”
“Beyond our strategic execution, our results during the quarter
benefited from a mild winter as compared to the historically snowy
and cold winter that we experienced in the first quarter of 2015,”
Casella said. “It is too early in the year to estimate how
much of the typical spring ramp-up was pulled forward into the
winter months versus the benefits from the tightening disposal
markets and economic growth in the Northeast. During the
first quarter, our landfill volumes were up 152,000 tons
year-over-year, or up 19.7%, with over 55% of this growth coming
from higher construction & demolition volumes across most of
our market areas. These strong trends have begun to moderate
into the second quarter.”
“Over the last year, we have worked diligently to reshape our
recycling sales model in the face of rapidly declining recycling
commodity prices, and the changes that we made are working
extremely well,” Casella said. “In fact, during the first
quarter we improved operating income by $1.1 million year-over-year
in our recycling business, despite a 20% drop in our average
commodity revenue per ton. We overcame lower recycling
commodity prices and achieved this improvement through a
combination of our Sustainability Recycling Adjustment (“SRA”) fee
applied to residential and commercial hauling customers, lower
rebates or higher tipping fees to recycling processing customers,
and efforts to reduce operating costs at our materials processing
facilities.”
“During the first quarter, we repurchased and permanently
retired $4.2 million of our 7.75% Senior Subordinated Notes due
2019, demonstrating our continued commitment to reduce leverage and
accelerate free cash flow generation by retiring our highest cost
debt,” Casella said. “Through our continued cash flow growth
and debt repayment, we reduced our consolidated leverage ratio as
defined by our ABL Revolver from 5.43x on March 31, 2015 to 4.64x
on March 31, 2016.”
For the quarter, revenues were $125.4 million, up $8.9 million,
or 7.6%, from the same period in 2015, with revenue growth mainly
driven by robust collection and disposal pricing and continued
growth in solid waste and recycling volumes, partially offset by
lower recycling commodity pricing, lower energy pricing and
divestitures.
Adjusted EBITDA was $19.3 million for the quarter, up $4.8
million, or 33.1%, from the same period in 2015, with growth mainly
driven by improved performance in the collection, disposal and
recycling lines-of-business.
Operating income was $2.0 million for the quarter, down $1.1
million from the same period in 2015, whereas Adjusted Operating
Income was $2.0 million for the quarter, up $3.8 million from the
same period in 2015. The current quarter did not include any
adjustments, while the same period in 2015 included a $4.9 million
gain related to the dissolution of CARES and a reversal of excess
costs related to the Maine Energy divestiture.
Net loss attributable to common stockholders was ($7.6) million,
or ($0.19) per common share for the quarter, compared to a net loss
attributable to common stockholders of ($9.3) million, or ($0.23)
per common share for the same period in 2015. The current
quarter included a less than $0.1 million gain on debt
extinguishment, while the same quarter last year included, in
addition to the items identified above, a $0.5 million loss on debt
extinguishment related to refinancing of the company's Senior
Credit Facility.
Net cash provided by operating activities was $1.7 million in
the quarter, up $7.4 million from the same period in 2015.
Free Cash Flow* was ($8.3) million in the quarter, as
compared to ($7.5) million for the same period in 2015.
Normalized Free Cash Flow* was ($8.3) million in the quarter, up
$2.0 million from the same period in 2015. The current
quarter did not include any adjustments, while the same period in
2015 included a $3.1 million adjustment for the net cash proceeds
from the CARES dissolution and a $0.2 million adjustment for the
cash outlays associated with the Worcester landfill
capping.
As expected, given the operational and working capital
seasonality of the Company’s business, Free Cash Flow was negative
in the first quarter, and we project Free Cash Flow to be positive
for the remainder of our fiscal year.
Outlook
The company reaffirmed its 2016 guidance for the year ending
December 31, 2016 by estimating results in the following
ranges:
- Revenues between $550 million and $560 million;
- Adjusted EBITDA* between $111 million and $115 million;
and
- Free Cash Flow* between $20 million and $24 million.
Conference call to discuss quarter
The company will host a conference call to discuss these results
on Thursday, May 5, 2016 at 10:00 a.m. Eastern Time.
Individuals interested in participating in the call should dial
(877) 838-4153 or for international participants (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
88359103) until 1:00 p.m. ET on Thursday, May 12, 2016.
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.
*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, and depreciation and amortization, adjusted for
accretion, depletion of landfill operating lease obligations, gains
on asset sales, development project charge write-offs, contract
settlement charges, legal settlement costs, tax settlement costs,
bargain purchase gains, asset impairment charges, environmental
remediation charges, severance and reorganization costs, expenses
from divestiture, acquisition and financing costs, gains on the
settlement of acquisition related contingent consideration, fiscal
year-end transition costs, proxy contest costs, as well as impacts
from divestiture transactions (“Adjusted EBITDA”), which is a
non-GAAP measure.
The company also discloses earnings before interest and taxes,
adjusted for gains on asset sales, development project charge
write-offs, contract settlement charges, legal settlement costs,
tax settlement costs, bargain purchase gains, asset impairment
charges, environmental remediation charges, severance and
reorganization costs, expenses from divestiture, acquisition and
financing costs, gains on the settlement of acquisition related
contingent consideration, fiscal year-end transition costs, proxy
contest costs, as well as impacts from divestiture transactions
(“Adjusted Operating Income”), which is a non-GAAP
measure.
The company also discloses net cash provided by operating
activities, less capital expenditures (excluding acquisition
related capital expenditures), less payments on landfill operating
lease contracts, plus proceeds from divestiture transactions, plus
proceeds from the sale of property and equipment, plus proceeds
from property insurance settlement, less contributions from
(distributions to) noncontrolling interest holders (“Free Cash
Flow”), which is a non-GAAP measure.
And lastly, the company discloses Free Cash Flow plus certain
cash outflows associated with landfill closure, site improvement
and remediation expenditures, plus certain cash outflows associated
with new contract and project capital expenditures, plus cash
(inflows) outflows associated with certain business dissolutions
(“Normalized Free Cash Flow”), which is a non-GAAP measure.
Adjusted EBITDA and Adjusted Operating Income are reconciled to
net loss, while Free Cash Flow and Normalized Free Cash Flow are
reconciled to net cash provided by operating activities. The
Company does not provide reconciling information for
forward-looking periods because such information is not available
without an unreasonable effort. The Company believes that
such information is not significant to an understanding of its
non-GAAP measures for forward-looking periods because its
methodology for calculating such non-GAAP measures is based on
sensitivity analysis at the business unit level rather than on
differences from GAAP financial measures.
The company presents Adjusted EBITDA, Adjusted Operating Income,
Free Cash Flow, and Normalized 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” is helpful in
understanding its ongoing performance in the ordinary course of
operations. The company believes that providing Adjusted EBITDA,
Adjusted Operating Income, Free Cash Flow, and Normalized 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 has performed.
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.
Non-GAAP financial measures are not in accordance with or an
alternative for GAAP. Adjusted EBITDA, Adjusted Operating
Income, Free Cash Flow, and Normalized 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, Free Cash Flow, or
Normalized Free Cash Flow presented by other companies.
Safe Harbor Statement
Certain matters discussed in this press release, including, but
not limited to, the statements regarding financial results and
guidance, 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,” “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 financial results, 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: adverse
weather conditions that have negatively impacted and may continue
to negatively impact our revenues and our operating margin; 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; groundwater
contamination discovered near our Southbridge landfill may delay
our permitting activities at that landfill and result in costs and
liabilities as well as impacting our disposal revenues at that
site, each of which could impact our results of operations; 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
actions of activist investors and the cost and disruption of
responding to those actions. 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 fiscal year ended December 31, 2015.
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 March
31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
125,432 |
|
|
$ |
116,577 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Cost of
operations |
|
|
90,418 |
|
|
|
87,833 |
|
|
General
and administration |
|
|
18,587 |
|
|
|
16,805 |
|
|
Depreciation and amortization |
|
|
14,453 |
|
|
|
13,748 |
|
|
Divestiture transactions |
|
|
- |
|
|
|
(4,935 |
) |
|
|
|
|
123,458 |
|
|
|
113,451 |
|
|
|
|
|
|
|
|
Operating income |
|
|
1,974 |
|
|
|
3,126 |
|
|
|
|
|
|
|
|
Other expense
(income): |
|
|
|
|
|
Interest
expense, net |
|
|
9,926 |
|
|
|
9,985 |
|
|
(Gain)
loss on debt extinguishment |
|
|
(48 |
) |
|
|
521 |
|
|
Loss on
derivative instruments |
|
|
- |
|
|
|
151 |
|
|
Other
income |
|
|
(141 |
) |
|
|
(164 |
) |
|
Other expense, net |
|
|
9,737 |
|
|
|
10,493 |
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
|
(7,763 |
) |
|
|
(7,367 |
) |
|
(Benefit) provision for
income taxes |
|
|
(149 |
) |
|
|
596 |
|
|
|
|
|
|
|
|
Net loss |
|
|
(7,614 |
) |
|
|
(7,963 |
) |
|
|
|
|
|
|
|
Less: Net
(loss) income attributable to noncontrolling interests |
|
|
(6 |
) |
|
|
1,308 |
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders |
|
$ |
(7,608 |
) |
|
$ |
(9,271 |
) |
|
|
|
|
|
|
|
Basic
and diluted weighted average common shares outstanding |
|
|
40,996 |
|
|
|
40,417 |
|
|
|
|
|
|
|
|
Basic
and diluted earnings per common share |
|
$ |
(0.19 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
19,263 |
|
|
$ |
14,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(In thousands) |
|
|
|
|
|
|
|
ASSETS |
|
March 31,
2016 |
|
December 31,
2015 |
|
|
|
(Unaudited) |
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,648 |
|
|
$ |
2,312 |
|
|
Restricted cash |
|
|
|
|
|
Accounts
receivable - trade, net of allowance for doubtful accounts |
|
|
53,034 |
|
|
|
60,167 |
|
|
Other
current assets |
|
|
16,050 |
|
|
|
14,189 |
|
|
Total current
assets |
|
|
70,732 |
|
|
|
76,668 |
|
|
|
|
|
|
|
|
Property, plant and
equipment, net of accumulated depreciation and amortization |
|
|
397,107 |
|
|
|
402,252 |
|
|
Goodwill |
|
|
118,976 |
|
|
|
118,976 |
|
|
Intangible assets,
net |
|
|
8,728 |
|
|
|
9,252 |
|
|
Restricted assets |
|
|
871 |
|
|
|
2,251 |
|
|
Cost method
investments |
|
|
12,333 |
|
|
|
12,333 |
|
|
Other non-current
assets |
|
|
11,659 |
|
|
|
11,937 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
620,406 |
|
|
$ |
633,669 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Current
maturities of long-term debt and capital leases |
|
$ |
1,458 |
|
|
$ |
1,448 |
|
|
Accounts
payable |
|
|
38,809 |
|
|
|
44,921 |
|
|
Other
accrued liabilities |
|
|
30,118 |
|
|
|
38,977 |
|
|
Total current
liabilities |
|
|
70,385 |
|
|
|
85,346 |
|
|
|
|
|
|
|
|
Long-term debt and
capital leases, less current maturities |
|
|
513,220 |
|
|
|
505,985 |
|
|
Other long-term
liabilities |
|
|
65,317 |
|
|
|
63,935 |
|
|
|
|
|
|
|
|
Total stockholders'
deficit |
|
|
(28,516 |
) |
|
|
(21,597 |
) |
|
|
|
|
|
|
|
Total
liabilities and stockholders' deficit |
|
$ |
620,406 |
|
|
$ |
633,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
Three Months Ended March
31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
Cash Flows from
Operating Activities: |
|
|
|
|
|
Net loss |
|
$ |
(7,614 |
) |
|
$ |
(7,963 |
) |
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities - |
|
|
|
|
|
Depreciation and amortization |
|
|
14,453 |
|
|
|
13,748 |
|
|
Depletion
of landfill operating lease obligations |
|
|
1,950 |
|
|
|
1,690 |
|
|
Interest
accretion on landfill and environmental remediation
liabilities |
|
|
886 |
|
|
|
848 |
|
|
Amortization of debt issuance costs and discount on long-term
debt |
|
|
1,040 |
|
|
|
938 |
|
|
Stock-based compensation expense |
|
|
722 |
|
|
|
660 |
|
|
Gain on
sale of property and equipment |
|
|
(203 |
) |
|
|
(46 |
) |
|
Divestiture transactions |
|
|
- |
|
|
|
(4,935 |
) |
|
(Gain)
loss on debt extinguishment |
|
|
(48 |
) |
|
|
521 |
|
|
Loss on
derivative instruments |
|
|
- |
|
|
|
151 |
|
|
Deferred
income taxes |
|
|
100 |
|
|
|
(49 |
) |
|
Changes
in assets and liabilities, net of effects of acquisitions and
divestitures |
|
|
(9,562 |
) |
|
|
(11,258 |
) |
|
Net Cash
Provided By (Used In) Operating Activities |
|
|
1,724 |
|
|
|
(5,695 |
) |
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
Additions
to property, plant and equipment |
|
|
(9,848 |
) |
|
|
(4,444 |
) |
|
Payments
on landfill operating lease contracts |
|
|
(500 |
) |
|
|
(478 |
) |
|
Proceeds
from divestiture transactions |
|
|
- |
|
|
|
4,550 |
|
|
Proceeds
from sale of property and equipment |
|
|
359 |
|
|
|
89 |
|
|
Net Cash
Used In Investing Activities |
|
|
(9,989 |
) |
|
|
(283 |
) |
|
Cash Flows
from Financing Activities: |
|
|
|
|
|
Proceeds
from long-term borrowings |
|
|
64,300 |
|
|
|
197,591 |
|
|
Principal
payments on long-term debt |
|
|
(57,948 |
) |
|
|
(186,500 |
) |
|
Payments
of debt issuance costs |
|
|
(99 |
) |
|
|
(6,852 |
) |
|
Change in
restricted cash |
|
|
1,348 |
|
|
|
4,086 |
|
|
Distribution to noncontrolling interest holder |
|
|
- |
|
|
|
(1,495 |
) |
|
Net Cash
Provided By Financing Activities |
|
|
7,601 |
|
|
|
6,830 |
|
|
Net
(decrease) increase in cash and cash equivalents |
|
|
(664 |
) |
|
|
852 |
|
|
Cash and
cash equivalents, beginning of period |
|
|
2,312 |
|
|
|
2,205 |
|
|
Cash and
cash equivalents, end of period |
|
$ |
1,648 |
|
|
$ |
3,057 |
|
|
|
|
|
|
|
|
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
|
Cash
interest |
|
$ |
16,122 |
|
|
$ |
15,336 |
|
|
Cash
income taxes, net of refunds |
|
$ |
101 |
|
|
$ |
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIES |
RECONCILIATION OF CERTAIN NON-GAAP
MEASURES |
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
Following is a reconciliation of Adjusted EBITDA and
Adjusted Operating Income (Loss) to Net Loss: |
|
|
|
|
|
|
|
|
Three Months
Ended March
31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
Net Loss |
|
$ |
(7,614 |
) |
|
$ |
(7,963 |
) |
|
(Benefit)
provision for income taxes |
|
|
(149 |
) |
|
|
596 |
|
|
Other
(income) expense, net |
|
|
(189 |
) |
|
|
508 |
|
|
Interest
expense, net |
|
|
9,926 |
|
|
|
9,985 |
|
|
Divestiture transactions |
|
|
- |
|
|
|
(4,935 |
) |
|
Depreciation and amortization |
|
|
14,453 |
|
|
|
13,748 |
|
|
Depletion
of landfill operating lease obligations |
|
|
1,950 |
|
|
|
1,690 |
|
|
Interest
accretion on landfill and environmental remediation
liabilities |
|
|
886 |
|
|
|
848 |
|
|
Adjusted EBITDA |
|
$ |
19,263 |
|
|
$ |
14,477 |
|
|
Depreciation and amortization |
|
|
(14,453 |
) |
|
|
(13,748 |
) |
|
Depletion
of landfill operating lease obligations |
|
|
(1,950 |
) |
|
|
(1,690 |
) |
|
Interest
accretion on landfill and environmental remediation
liabilities |
|
|
(886 |
) |
|
|
(848 |
) |
|
Adjusted Operating Income (Loss) |
|
$ |
1,974 |
|
|
$ |
(1,809 |
) |
|
|
|
|
|
|
|
|
Following is a reconciliation of Free Cash Flow and
Normalized Free Cash Flow to Net Cash Provided By (Used In)
Operating Activities: |
|
|
|
Three Months Ended March
31, |
|
|
|
2016 |
|
2015 |
|
Net Cash Provided By (Used In) Operating
Activities |
|
$ |
1,724 |
|
|
$ |
(5,695 |
) |
|
Capital
expenditures |
|
|
(9,848 |
) |
|
|
(4,444 |
) |
|
Payments on landfill
operating lease contracts |
|
|
(500 |
) |
|
|
(478 |
) |
|
Proceeds from sale of
property and equipment |
|
|
359 |
|
|
|
89 |
|
|
Proceeds from
divestiture transactions |
|
|
- |
|
|
|
4,550 |
|
|
Distribution to
noncontrolling interest holder |
|
|
- |
|
|
|
(1,495 |
) |
|
Free Cash
Flow |
|
$ |
(8,265 |
) |
|
$ |
(7,473 |
) |
|
Landfill
closure, site improvement and remediation expenditures
(i) |
|
|
- |
|
|
|
234 |
|
|
Net cash
proceeds from CARES dissolution (ii) |
|
|
- |
|
|
|
(3,055 |
) |
|
Normalized Free Cash
Flow |
|
$ |
(8,265 |
) |
|
$ |
(10,294 |
) |
|
|
|
|
|
|
|
(i) Includes cash outlays associated with Worcester landfill
capping. |
(ii) Includes cash proceeds and cash distribution associated
with the dissolution of CARES. |
|
|
|
|
|
|
CASELLA WASTE SYSTEMS, INC. AND
SUBSIDIARIES |
|
SUPPLEMENTAL DATA TABLES |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts of our total revenues attributable to services
provided for the three months ended March 31, 2016 and 2015 are as
follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2016 |
|
% of Total Revenue |
|
2015 |
|
% of Total Revenue |
|
|
Collection |
|
$ |
57,851 |
|
|
|
46.1 |
% |
|
$ |
53,326 |
|
|
|
45.7 |
% |
|
|
Disposal |
|
|
32,253 |
|
|
|
25.7 |
% |
|
|
27,767 |
|
|
|
23.9 |
% |
|
|
Power generation |
|
|
1,707 |
|
|
|
1.4 |
% |
|
|
2,047 |
|
|
|
1.8 |
% |
|
|
Processing |
|
|
973 |
|
|
|
0.8 |
% |
|
|
1,121 |
|
|
|
0.9 |
% |
|
|
Solid waste operations |
|
|
92,784 |
|
|
|
74.0 |
% |
|
|
84,261 |
|
|
|
72.3 |
% |
|
|
Organics |
|
|
8,935 |
|
|
|
7.1 |
% |
|
|
9,020 |
|
|
|
7.7 |
% |
|
|
Customer solutions |
|
|
13,075 |
|
|
|
10.4 |
% |
|
|
13,002 |
|
|
|
11.2 |
% |
|
|
Recycling |
|
|
10,638 |
|
|
|
8.5 |
% |
|
|
10,294 |
|
|
|
8.8 |
% |
|
|
Total
revenues |
|
$ |
125,432 |
|
|
|
100.0 |
% |
|
$ |
116,577 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of revenue growth for the three months
ended March 31, 2016 compared to the three months ended March 31,
2015 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount |
|
% of Related Business |
|
% of Solid Waste Operations |
|
% of Total Company |
|
|
Solid Waste
Operations: |
|
|
|
|
|
|
|
|
|
|
Collection |
|
$ |
3,599 |
|
|
|
6.7 |
% |
|
|
4.3 |
% |
|
|
3.1 |
% |
|
|
Disposal |
|
|
372 |
|
|
|
1.3 |
% |
|
|
0.4 |
% |
|
|
0.3 |
% |
|
|
Solid Waste
Price |
|
|
3,971 |
|
|
|
|
|
4.7 |
% |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Collection |
|
|
1,239 |
|
|
|
|
|
1.5 |
% |
|
|
1.1 |
% |
|
|
Disposal |
|
|
4,121 |
|
|
|
|
|
4.9 |
% |
|
|
3.5 |
% |
|
|
Processing |
|
|
(89 |
) |
|
|
|
|
-0.1 |
% |
|
|
-0.1 |
% |
|
|
Solid Waste
Volume |
|
|
5,271 |
|
|
|
|
|
6.3 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge |
|
|
(33 |
) |
|
|
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
Commodity price &
volume |
|
|
(398 |
) |
|
|
|
|
-0.6 |
% |
|
|
-0.4 |
% |
|
|
Acquisitions, net
divestitures |
|
|
(288 |
) |
|
|
|
|
-0.3 |
% |
|
|
-0.2 |
% |
|
|
Total Solid
Waste |
|
|
8,523 |
|
|
|
|
|
10.1 |
% |
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Organics |
|
|
(85 |
) |
|
|
|
|
|
|
-0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
Solutions |
|
|
73 |
|
|
|
|
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Recycling
Operations: |
|
|
|
|
|
% of Recycling Operations |
|
|
|
|
Price |
|
|
(498 |
) |
|
|
|
|
-4.9 |
% |
|
|
-0.4 |
% |
|
|
Volume |
|
|
842 |
|
|
|
|
|
8.2 |
% |
|
|
0.7 |
% |
|
|
Total
Recycling |
|
|
344 |
|
|
|
|
|
3.3 |
% |
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company |
|
$ |
8,855 |
|
|
|
|
|
|
|
7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Solid Waste Internalization Rates by Region for the three
months ended March 31, 2016 and 2015 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
|
Eastern region |
|
|
|
|
|
|
44.7 |
% |
|
|
44.2 |
% |
|
|
Western region |
|
|
|
|
|
|
72.6 |
% |
|
|
71.7 |
% |
|
|
Solid waste
internalization |
|
|
|
|
|
|
57.5 |
% |
|
|
57.3 |
% |
|
|
|
|
Components of Capital Expenditures for the three
months ended March 31, 2016 and 2015 are as follows
(iv): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
|
Total Growth
Capital Expenditures |
|
|
|
|
|
$ |
1,346 |
|
|
$ |
738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Replacement Capital Expenditures: |
|
|
|
|
|
|
|
|
|
|
Landfill
development |
|
|
|
|
|
$ |
3,787 |
|
|
$ |
1,238 |
|
|
|
Vehicles, machinery, equipment and containers |
|
|
|
|
|
4,194 |
|
|
|
1,713 |
|
|
|
Facilities |
|
|
|
|
|
|
154 |
|
|
|
169 |
|
|
|
Other |
|
|
|
|
|
|
367 |
|
|
|
586 |
|
|
|
Total
Replacement Capital Expenditures |
|
|
|
|
|
$ |
8,502 |
|
|
$ |
3,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Growth and Replacement Capital
Expenditures |
|
|
|
|
$ |
9,848 |
|
|
$ |
4,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(iv) Our capital expenditures are broadly defined as
pertaining to either growth, replacement 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 adding infrastructure to increase throughput at
transfer stations and recycling facilities. Replacement 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, which are not included in the
table above, 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
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