Casella Waste Systems, Inc. Announces Third Quarter Fiscal Year 2013 Results; Updates Guidance for Its Fiscal Year
(firmenpresse) - RUTLAND, VT -- (Marketwire) -- 03/04/13 -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported financial results for its third quarter fiscal year 2013, and provided updated guidance for its 2013 fiscal year.
Highlights for the quarter included:
For the quarter ended January 31, 2013, revenues were $115.0 million, up $0.4 million or 0.4 percent from the same quarter last year, with revenue growth mainly driven by higher solid waste collection pricing and acquisition activity. The company's net loss attributable to common stockholders was ($11.4) million, or ($0.29) per share for the quarter, compared to net loss of ($24.6) million, or ($0.92) per share for the same quarter last year.
The current quarter includes a $1.6 million severance and reorganization charge related to the sale of Maine Energy Recovery Company facility ("Maine Energy") and other realignment activities, $0.8 million of expenses related to the divestiture of Maine Energy and the acquisition of Blow Bros. ("BBI"), and a $5.9 million loss on the extinguishment of debt related to the repurchase of the company's second lien notes in November 2012. By comparison, the quarter ended January 31, 2012 included two non-cash charges totaling $15.8 million related to our investment in US GreenFiber LLC.
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 ($3.1) million, or ($0.08) per common share for the quarter, compared to net loss of ($8.9) million, or ($0.33) per share for the same quarter last year.
Operating loss was ($0.1) million for the quarter, down from operating income of $4.4 million in the same quarter last year. Excluding the unusual and one-time charges, Adjusted Operating Income* in the current quarter was $2.3 million, down $2.1 million from the same quarter last year. Adjusted EBITDA was $19.7 million for the quarter, down $2.5 million from same quarter last year.
"We continued to face operating challenges throughout our business in the third quarter," said John W. Casella, Chairman and CEO of Casella Waste Systems. "Landfill volumes at our western New York landfills, volumes in our collection line-of-business, and the ramp-up of several projects all underperformed our expectations in the quarter and, as such, we have lowered our guidance for the current fiscal year."
"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 on November 30, 2012 and then permanently closed the facility on December 31, 2012. On January 2, 2013, we began transferring waste through our newly constructed transfer station in Westbrook, Maine to other disposal facilities, including our North Country and Southbridge 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 in New Hampshire and Maine 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, the Massachusetts Department of Environmental Protection increased the annual permit limit at our Southbridge 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 the Massachusetts 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."
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 the Worcester 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.
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, 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. The company also discloses 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. The company also discloses 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.
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.
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 .
The Company will host a conference call to discuss these results on Tuesday, March 5, 2013 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-9590 (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 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 12271071) until 11:59 p.m. ET on Tuesday, March 12, 2013.
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 April 30, 2012.
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.
Investors:
Ned Coletta
Chief Financial Officer
(802) 772-2239
Media:
Joseph Fusco
Vice President
(802) 772-2247
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Datum: 04.03.2013 - 15:15 Uhr
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