Casella Waste announces second quarter fiscal year 2006

Casella Waste Systems, Inc. (CWSI), a regional, non-hazardous solid waste services company, reported financial results for the second quarter and first six months of its 2006 fiscal year.

Second Quarter Results
For the quarter ended October 31, 2005, the company reported revenues of $136.8 million, up $10.4 million, or 8.2 percent over the same quarter last year. The Company’s net income per common share was $0.13, up $0.03 over the same quarter last year. Operating income for the quarter was $13.7 million, up $950,000, or 7.4 percent over the same quarter last year. Cash provided by operating activities in the quarter was $14.0 million, down $2.2 million, or 13.3 percent compared to the same quarter last year. The Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) were $30.6 million*, essentially unchanged from the same quarter last year.

For the six months ended October 31, 2005, the company reported revenues of $268.8 million. The Company’s net income per common share was $0.22. Operating income for the six month period was $26.8 million. Cash provided by operating activities for the period was $36.6 million. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) were $59.8 million*.

Highlights of the Quarter
“Our internal growth was solid, even taking into account the fuel and energy headwinds that everyone is facing,” John W. Casella, chairman and chief executive officer, said.

“Business conditions continue to present a mixed set of challenges,” Casella said. “Margin improvement continues to be challenged mainly due to higher transportation and fuel costs.

“The company also began operating the Chemung County landfill during the quarter. This is a superb facility right in the heart of our western New York state market.

“The landfill’s current utilization rate is 120,000 tons of municipal solid waste (MSW) per year, and we’ve begun efforts to increase the facility’s capacity in accordance with the host community agreement and the public- private partnership,” Casella said.

The Company said it also believes it will meet the low end of the range of its fiscal year 2006 EBITDA* guidance of $112.0 million to $116.0 million.