MAY 2011

Casella Waste Systems releases 2011 third quarter results

Casella Waste Systems, Inc. reported financial results for its third quarter fiscal year 2011. For the quarter ended January 31, 2011, revenues were $111.6 million, up $1.7 million or 1.6 percent over the same quarter last year, driven mainly by solid waste volume growth and higher commodity prices. Operating income was $6.3 million for the quarter, down $1.1 million from the same quarter last year. The company’s net loss applicable to common shareholders was ($6.4) million, or ($0.24) per common share for the quarter, compared to ($4.4) million, or ($0.17) per share for the same quarter last year.

“While our third quarter results were below last year’s performance and our plan, the underperformance was mainly driven by adverse weather and non-recurring events,” said John W. Casella, chairman and CEO of Casella Waste Systems. “The bad winter weather during the quarter impacted operational performance, with lower than projected productivity throughout the solid waste business and lower waste volumes. Our landfill volumes were lower year-over-year by 4.4 percent, with the negative variance attributable to reaching annual permit limits at several key sites in early December and lower volumes in January due to the bad weather.”

“Since last quarter our team has done an excellent job completing important long-term strategic goals aimed at improving our balance sheet today and better positioning us for the future,” Casella said. “These strategic accomplishments include:

  • “We successfully divested our non-integrated recycling facilities for $134.1 million, with net proceeds of approximately $120.0 million used to permanently pay-off our Term Loan B.
  • “We refinanced our $195.0 million 9.75 percent Senior Subordinated Notes due 2013 with new $200.0 million 7.75 percent Senior Subordinated Notes due 2019, yielding significant interest savings.
  • “We acquired a municipal solid waste landfill in McKean County, Pennsylvania out of bankruptcy proceedings for $0.5 million in cash and the assumption of certain contractual obligations.”