Casella Waste Systems, Inc. Announces Settlement of Southbridge Litigation
December 03 2018 - 8:30AM
Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste,
recycling and resource management services company, announced that
on November 8, 2018, the company and the Town of Southbridge, MA
(the “Town”) reached a settlement to resolve claims that were the
subject of litigation filed in Worcester Superior
Court.
Under the terms of the settlement, the company and the Town
agreed to advance the date through which the company is obligated
to provide free curbside collection and disposal of the Town’s
residential waste from May 28, 2027 to March 31, 2024. The
settlement also permits the company to close the waste transfer
station located in the Town at the end of 2018.
“The settlement of this litigation is one of the last important
steps to successfully resolve outstanding matters at the
Southbridge landfill and permanently close the site,” said John W.
Casella, Chairman and CEO of Casella Waste Systems, Inc. “We
adopted a plan in July 2017 to close the landfill due to the lack
of local community support, insurmountable political and regulatory
hurdles, and the extremely high cost to develop airspace at the
site. Given these factors, we concluded that we could not
generate an adequate risk adjusted return, and we initiated the
plan to wind down operations at the site and permanently close the
landfill.”
Following the settlement with the Town, the company expects to
take a charge in the range of approximately $8.0 million to $9.0
million in the fourth quarter of 2018 for the free waste collection
and disposal services the company is obligated to provide to the
Town through March 31, 2024, and other remaining cash payment
obligations to the Town that will continue until May 28, 2027.
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 should
contact Ned Coletta, chief financial officer at (802) 772-2239, and
media should contact Joseph Fusco, vice president, at (802)
772-2247, or visit the company’s website at
http://www.casella.com.
Safe Harbor Statement
Certain matters discussed in this press release are
"forward-looking statements". 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,” "will," “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 the Company operates and management’s beliefs and
assumptions. The Company cannot guarantee that it actually will
achieve the plans, intentions, expectations or guidance disclosed
in the forward-looking statements made. Such forward-looking
statements, and all phases of the Company’s 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
its forward-looking statements. Such risks and uncertainties
include or relate the amount of the charge associated with the
settlement of litigation with the Town could exceed estimates.
There are a number of other important risks and uncertainties that
could cause the Company’s 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 the Company's
Form 10-K for the fiscal year ended December 31, 2017, and in
other filings that the Company may make with the Securities and
Exchange Commission in the future.
The Company undertakes 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.
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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