SOURCE: Casella Waste Systems, Inc.

June 15, 2009 20:18 ET

Casella Waste Systems, Inc. Announces Fourth Quarter and Fiscal Year 2009 Results; Provides Fiscal Year 2010 Guidance

Casella Achieves Original Fiscal Year 2009 Free Cash Flow*

RUTLAND, VT--(Marketwire - June 15, 2009) - Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported financial results for the fourth quarter and its 2009 fiscal year, and gave guidance on its 2010 fiscal year.

Highlights of the quarter include:

  • Free cash flow for the fiscal year was $8.8 million, within the original guidance range;
  • Adjusted EBITDA* for the fiscal year was $115.6 million; and
  • Solid waste operations continue to perform well through the economic slowdown; the Recycling group rebounds after volatile commodity pricing.

"In spite of the collapse of the global recycling commodity markets mid-way through our 2009 fiscal year and an extended economic contraction, our team executed well against the factors within our control to meet our original free cash flow goals," John W. Casella, chairman and CEO of Casella Waste Systems, said.

"During the third and fourth quarters we experienced significant declines in commodity pricing and lower solid waste volumes in more economically sensitive markets," Casella said. "To meet our free cash flow target, we acted swiftly and thoughtfully to improve all aspects of our operating structure and daily business practices, and we successfully implemented programs that reduced costs and improved asset utilization.

"In addition, we offset downward revenue pressure by increasing pricing where supported by the market, flexing operations to volumes, and reducing capital spending," Casella said. "I'm confident that we are well positioned as an operationally efficient, cash flow focused company not only for this economic downturn, but also for an anticipated economic recovery and growth environment."

Fourth Quarter Results

For the quarter ended April 30, 2009, the company reported revenues of $117.6 million, down $22.0 million or 15.7 percent over the same quarter last year. Approximately fifty three percent of the decline was due to a drop in recycling revenues, down $11.6 million over the same quarter last year primarily as the result of lower commodity prices.

Solid waste revenues including the company's major accounts programs were down approximately 11.0 percent from the same quarter last year. Excluding fuel, oil and environmental recovery fees, pricing was up 3.4 percent, and volumes were down 5.9 percent (excluding revenue losses due to the planned end-of-life decline of landfill volumes at the Pine Tree landfill in Hampden, Maine; the planned closure of the Colebrook, NH landfill in early August 2008; and the idling of a C&D processing facility in October 2008).

The company's net loss applicable to common shareholders was ($68.5) million, or ($2.67) per common share, compared to a net loss of ($7.8) million, or ($0.31) per share for the same quarter last year.

Reported results for the 2009 quarter include a non-cash goodwill impairment charge of $55.3 million, an environmental remediation charge of $1.5 million, development project charges of $0.4 million, severance and reorganization charges of $1.3 million, and a charge of $24.1 million for the increase of the non-cash deferred tax valuation allowance. Reported results for the comparable 2008 period include an impairment and closing charge of $1.4 million for the closure of the Hardwick landfill, development project charge of $0.5 million, a charge of $0.4 million for the increase of the non-cash deferred tax valuation allowance, and a $2.0 million after-tax loss from discontinued operations and the loss on disposal of discontinued operations.

Excluding the charges outlined above, the net loss from continuing operations for the quarter amounted to ($0.8) million or ($0.03) per common share, as compared to a net loss of ($4.3) million or ($0.17) per common share for the same quarter last year.

Net cash provided by operating activities in the quarter was $26.9 million, compared to $19.8 million for the same quarter last year. Net cash provided by operating activities was favorably impacted by a $13.9 million increase due to the dissolution of the company's captive insurance company during the quarter.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA*), adjusted for goodwill impairment, environmental remediation charge, severance and reorganization charges, and development project charge (Adjusted EBITDA* which included adjustments to EBITDA for $57.2 million) was $23.3 million for the quarter, down $2.9 million from the same quarter last year. The company's free cash flow* in the quarter was $4.2 million, compared to $6.0 million in the same quarter last year.

Fiscal 2009 Results

For the fiscal year ended April 30, 2009, the company reported revenues of $554.2 million, down $25.3 million or 4.4 percent over fiscal year 2008. The company's net loss applicable to common shareholders was ($68.0) million, or ($2.66) per common share, for fiscal year 2009, compared to a net loss of ($7.8) million, or ($0.31) per share, for the same period last year.

Reported results for fiscal year 2009 include a non-cash goodwill impairment charge of $55.3 million, an environmental remediation charge of $4.4 million, development project charges of $0.4 million, severance and reorganization charges of $1.4 million, and a charge of $24.1 million for the increase of the non-cash deferred tax valuation allowance. Reported results for the comparable 2008 period include an impairment and closing charge of $1.4 million for the closure of the Hardwick landfill, development project charge of $0.5 million, severance and reorganization charges of $1.2 million, a charge of $0.4 million for the increase of the non-cash deferred tax valuation allowance, and a $3.8 million after-tax loss from discontinued operations and the loss on disposal of discontinued operations.

Excluding the charges outlined above, the fiscal year 2009 net income from continuing operations amounted to $1.3 million or $0.05 per common share, as compared to a net loss of ($1.7) million or ($0.07) per common share for fiscal year 2008.

Net cash provided by operating activities for fiscal year 2009 was $77.5 million, compared to $71.2 million for fiscal year 2008. Net cash provided by operating activities was favorably impacted by a $13.9 million increase due to the dissolution of the company's captive insurance company during the fiscal year.

The company's earnings before interest, taxes, depreciation, amortization (EBITDA*), adjusted for goodwill impairment, environmental remediation, severance and reorganization charges, and development project charge (Adjusted EBITDA*) was $115.6 million for fiscal year 2009, compared to $123.5 million in fiscal year 2008.

The company's free cash flow* for fiscal year 2009 was $8.8 million versus $5.3 million for fiscal year 2008. As of April 30, 2009, the company had cash on hand of $2.3 million, and had an outstanding total debt level of $562.5 million. More detailed financial results are contained in the tables accompanying this release.

During the fourth quarter of fiscal year 2009, the company recorded an additional environmental remediation charge of $1.5 million related to a scrap yard and transfer station owned by the company, in recognition of the declared bankruptcy of General Motors Corporation, one of the other responsible parties to this obligation.

In the fourth quarter of fiscal year 2009, the company recorded a severance and reorganization charge of $1.4 million which consisted of employee severance and benefit costs, and operating lease costs, as a result of the market area consolidation of several operating units, the elimination of one region office, and other workforce reductions.

Fiscal 2010 Outlook

"In fiscal year 2010, our emphasis is on further improving cash flows through increased pricing, cost controls and operational efficiencies, and focused capital deployment," Casella said. "Our plan for the fiscal year assumes that commodity prices rebound slightly and economic activity remains soft, essentially mirroring the conditions that our business experienced during the last six months of our fiscal year 2009."

The company provided guidance for its fiscal year 2010, which began May 1, 2009, by estimating results in the following ranges:

  • Revenues between $510.0 million and $530.0 million;
  • EBITDA* between $111.0 million and $117.0 million;
  • Capital Expenditures between $48.0 million and $54.0 million; and
  • Free Cash Flow (redefined for fiscal year 2010) between $0.0 million and $6.0 million. Please note that we have changed our definition of "Free Cash Flow" for fiscal year 2010 to net cash provided by operating activities; less capital expenditures; less payments on landfill operating leases; less assets acquired through financing leases. We plan to report free cash flow on this basis in the future.

The company said the following assumptions are built into its fiscal year 2010 outlook:

  • Zero-growth in the regional economy from the fourth quarter fiscal year 2009;
  • In the solid waste business, overall revenue declines between negative 3.0 percent and negative 6.0 percent, with price projected to outpace CPI; volumes down; fuel and oil recovery fees down; and the roll-over impacts noted below included;
  • In the recycling business, overall revenue declines between negative 16.0 percent and negative 20.0 percent, with price down and volumes flat;
  • In the major accounts business, overall revenue growth of between 5.0 percent and 10.0 percent, principally through volume growth;
  • The roll-over impacts of fiscal year 2009 growth projects are included in the above growth targets. For the solid waste business this includes the two new landfill gas-to-energy plants that came online in the third quarter; for FCR this includes a new contract that began in the third quarter and the two Zero-Sort Recycling™ conversions that were completed in the fourth quarter; and
  • No acquisitions.

Free cash flow of $0.0 million to $6.0 million is based on net cash provided by operating activities of $61.0 million to $67.0 million, less estimated capital expenditures of $48.0 million to $54.0 million, and payments on landfill operating leases of approximately $10.0 million.

*Non-GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for severance and reorganization charges, goodwill impairment charge, environmental remediation charge as well as development project charges (Adjusted EBITDA) and free cash flow, which are non-GAAP measures. In addition we disclose Adjusted net income (loss) from continuing operations which reflects adjustments to Net income (loss) per common share for the tax effected impact of severance and reorganization charges, goodwill impairment charge, environmental remediation charge, development project charges and tax valuation allowance. In the future we may modify items considered in defining free cash flow and adjusted EBITDA if we believe it will help the understanding of our financial performance.

These measures are provided because we understand that certain investors use this information when analyzing the financial position of companies in the solid waste industry, including us. Historically, these measures have been key in comparing operating efficiency of publicly traded companies in the solid waste industry, and assist investors in measuring our ability to meet capital expenditures, payments on landfill operating lease contracts, and working capital requirements. For these reasons we utilize these non-GAAP metrics to measure our performance at all levels. Free cash flow, EBITDA and Adjusted EBITDA are not intended to replace "Net Cash Provided by Operating Activities," which is the most comparable GAAP financial measure. Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as capital expenditures, payments on landfill operating lease contracts, or working capital, or to react to changes in our industry or to the economy generally. Because these measures are not calculated by all companies in the same fashion, they may not be comparable to similarly titled measures reported by other companies.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services primarily in the eastern United States.

For further information, contact Ned Coletta, director of investor relations at (802) 772-2239, or visit the Company's website at http://www.casella.com.

The Company will host a conference call to discuss these results on Tuesday, June 16, 2009 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-7915 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems' website at http://www.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 719-457-0820 or 888-203-1112 (conference code #7644674), until 11:59 p.m. ET on Tuesday, June 23, 2009.

Safe Harbor Statement

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 the company "believes," "expects," "anticipates," "plans," "may," "will," "would," "intends," "estimates" 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 or expectations 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 have adversely affected our revenues and our operating margin and will impact our efforts to refinance our senior credit facility; the impact of the current economic environment on our operating performance or our ability to refinance debt or gain covenant wavers could cause us to be in default of certain financial covenants under the existing senior credit facility; we may be unable to reduce costs or increase revenues sufficiently to achieve estimated 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 the commodity pricing of our recyclables may make it more difficult for us to predict our results of operations or meet our estimates; and we may incur environmental charges or asset impairments in the future. 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, 2009.

We do not necessarily intend 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
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                Unaudited
                 (In thousands, except amounts per share)


                                 Three Months Ended   Twelve Months Ended
                                --------------------  --------------------
                                April 30,  April 30,  April 30,  April 30,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------

Revenues                        $ 139,628  $ 117,647  $ 579,517  $ 554,241

Operating expenses:
  Cost of operations               94,329     78,528    383,009    372,178
  General and administration       19,132     17,173     74,184     67,846
  Depreciation and amortization    18,699     16,668     77,769     72,677
  Goodwill impairment charge            -     55,286          -     55,286
  Environmental remediation
   charge                               -      1,533          -      4,356
  Hardwick impairment and
   closing charge                   1,400          -      1,400          -
  Development project charge          534        375        534        355
                                ---------  ---------  ---------  ---------
                                  134,094    169,563    536,896    572,698
                                ---------  ---------  ---------  ---------

Operating (loss) income             5,534    (51,916)    42,621    (18,457)

Other expense/(income), net:
  Interest expense, net (1)         9,658      9,217     41,505     39,039
  Loss (income) from equity
   method investments               1,532        247      6,077      2,157
  Other income                       (273)      (244)    (2,690)      (792)
                                ---------  ---------  ---------  ---------
                                   10,917      9,220     44,892     40,404
                                ---------  ---------  ---------  ---------

Loss from continuing operations
 before income taxes
 and discontinued operations       (5,383)   (61,136)    (2,271)   (58,861)
Provision for income taxes            456      7,314      1,746      9,119
                                ---------  ---------  ---------  ---------

Loss from continuing operations
 before discontinued operations    (5,839)   (68,450)    (4,017)   (67,980)

Discontinued Operations:
  Loss from discontinued
   operations, net of income
   taxes (2)                         (289)         -     (1,705)       (11)
  Loss on disposal of
   discontinued operations, net
   of income taxes (2)             (1,675)         -     (2,113)       (34)
                                ---------  ---------  ---------  ---------

Net loss applicable to common
 stockholders                   $  (7,803) $ (68,450) $  (7,835) $ (68,025)
                                =========  =========  =========  =========

Common stock and common stock
 equivalent shares outstanding,
 assuming full dilution            25,415     25,667     25,382     25,584
                                =========  =========  =========  =========

Net loss per common share       $   (0.31) $   (2.67) $   (0.31) $   (2.66)
                                =========  =========  =========  =========




               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                Unaudited
                              (In thousands)


                                                        April 30, April 30,
                         ASSETS                           2008      2009
                                                        --------- ---------

CURRENT ASSETS:
  Cash and cash equivalents                             $   2,814 $   1,838
  Restricted cash                                              95       508
  Accounts receivable - trade, net of allowance for
   doubtful accounts                                       62,233    51,296
  Other current assets                                     30,343    23,093
                                                        --------- ---------
Total current assets                                       95,485    76,735

Property, plant and equipment, net of accumulated
 depreciation                                             488,028   490,360
Goodwill                                                  179,716   125,709
Intangible assets, net                                      2,608     2,635
Restricted cash                                            13,563       127
Investments in unconsolidated entities                     44,617    41,798
Other non-current assets                                   12,070    13,598
                                                        --------- ---------

Total assets                                            $ 836,087 $ 750,962
                                                        ========= =========

        LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current maturities of long-term debt                  $   2,758 $ 522,467
  Current maturities of financing lease obligations             -     1,344
  Accounts payable                                         51,731    34,623
  Other accrued liabilities                                58,335    39,350
                                                        --------- ---------
Total current liabilities                                 112,824   597,784

Long-term debt, less current maturities                   559,227    26,396
Financing lease obligations                                     -    12,281
Other long-term liabilities                                39,354    48,191

Stockholders' equity                                      124,682    66,310
                                                        --------- ---------

Total liabilities and stockholders' equity              $ 836,087 $ 750,962
                                                        ========= =========




               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                Unaudited
                              (In thousands)


                                                      Twelve Months Ended
                                                      --------------------
                                                      April 30,  April 30,
                                                        2008       2009
                                                      ---------  ---------
Cash Flows from Operating Activities:
Net loss                                              $  (7,835) $ (68,025)
Loss from discontinued operations, net                    1,705         11
Loss on disposal of discontinued operations, net          2,113         34
Adjustments to reconcile net loss
 to net cash provided by operating activities -
  Gain on sale of equipment                                (387)      (352)
  Depreciation and amortization                          77,769     72,677
  Depletion of landfill operating lease obligations       6,010      6,416
  Goodwill impairment                                         -     55,286
  Environmental remediation charge                            -      4,356
  Hardwick impairment and closing charges                 1,400          -
  Development project charges                               534        355
  Income from assets under contractual obligation        (1,605)      (162)
  Preferred stock dividend                                1,038          -
  Amortization of premium on senior notes                  (625)      (675)
  Maine Energy settlement                                (2,142)         -
  Loss from equity method investments                     6,077      2,157
  Stock-based compensation                                1,376      1,679
  Excess tax benefit on the exercise of stock
   options                                                 (103)      (162)
  Deferred income taxes                                  (2,373)     8,806
  Changes in assets and liabilities, net of
   effects of acquisitions and divestitures             (11,762)    (4,881)
                                                      ---------  ---------
                                                         75,207    145,500
                                                      ---------  ---------
    Net Cash Provided by Operating Activities            71,190     77,520
                                                      ---------  ---------
Cash Flows from Investing Activities:
  Acquisitions, net of cash acquired                    (11,881)    (2,394)
  Additions to property, plant and equipment
                                     - growth           (18,950)   (10,570)
                                     - maintenance      (54,224)   (47,166)
  Payments on landfill operating lease contracts         (7,143)    (5,102)
  Proceeds from divestitures                              2,373        670
  Other                                                   4,138       (854)
                                                      ---------  ---------
    Net Cash Used In Investing Activities               (85,687)   (65,416)
                                                      ---------  ---------
Cash Flows from Financing Activities:
  Proceeds from long-term borrowings                    301,200    127,600
  Principal payments on long-term debt                 (223,067)  (142,003)
  Deferred financing costs                                 (554)      (348)
  Redemption of Series A redeemable, convertible
   preferred stock                                      (75,056)         -
  Proceeds from exercise of stock options                 1,367      1,462
  Excess tax benefit on the exercise of stock options       103        162
                                                      ---------  ---------
    Net Cash (Used in) Provided by Financing
     Activities                                           3,993    (13,127)
                                                      ---------  ---------
Cash Provided by Discontinued Operations                    952         47
                                                      ---------  ---------
Net decrease in cash and cash equivalents                (9,552)      (976)
Cash and cash equivalents, beginning of period           12,366      2,814
                                                      ---------  ---------
Cash and cash equivalents, end of period              $   2,814  $   1,838
                                                      =========  =========




               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               Unaudited
                             (In thousands)

Note 1: The Company's Series A redeemable, convertible preferred stock ("Series A preferred") contained a mandatory redemption provision effective August 11, 2007. As the Company did not anticipate that the Series A preferred would be converted to Class A Common Stock by the redemption date, the Company reflected the redemption value of the Series A preferred as a current liability. Consistent with this presentation, the Company recorded the Series A preferred dividend as interest expense in the three and six months ended October 31, 2007. The Series A preferred was redeemed effective August 11, 2007 at an aggregate redemption price of $75,056.

Note 2: In fiscal year 2007, the Company completed the sale of the assets of the Holliston Transfer Station in the Eastern region for cash sale proceeds of $7,383. A loss amounting to $717 (net of tax) was recorded to loss on disposal of discontinued operations in fiscal year 2007. In fiscal year 2008 the Company recorded the true-up of certain contingent liabilities associated with the Holliston transaction amounting to a gain of $319 (net of tax) recorded to loss on disposal of discontinued operations and also completed the sale of the Company's Buffalo, N.Y. transfer station, hauling operation and related equipment in the Western region for proceeds of $4,873 including a note receivable for $2,500 and net cash proceeds of $2,373. A loss amounting to $493 (net of tax) has been recorded to loss on disposal of discontinued operations in fiscal year 2008.

The Company terminated its operation of MTS Environmental, a soils processing operation in the Eastern region, in fiscal year 2008. A charge was recorded amounting to $3,247 associated with the abandonment. Included in this charge was the write off of the carrying value of assets along with costs associated with vacating the site. A loss amounting to $1,939 (net of tax) has been recorded to loss on disposal of discontinued operations in fiscal year 2008. As of April 30, 2008, the Company also deemed its FCR Greenville operation as held for sale and classified this operation as a discontinued operation pursuant to the requirements of SFAS No 144, Accounting for the Impairment or Disposal of Long-Lived Assets ("SFAS No. 144"). The divestiture was completed in June 2008 for cash proceeds of $670. A loss amounting to $34 (net of tax) has been recorded to loss on disposal of discontinued operations in fiscal year 2009. The operating results of the operations discussed above, including those related to prior years, have been reclassified from continuing to discontinued operations in the accompanying consolidated financial statements.

The operating results of the operations discussed above, including those related to prior years, have been reclassified from continuing to discontinued operations in the accompanying consolidated financial statements.

Note 3: Non - GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), we also disclose earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for severance and reorganization charges, goodwill impairment charge, environmental remediation charge as well as development project charges (Adjusted EBITDA) and free cash flow, which are non-GAAP measures. In addition we disclose Adjusted net income (loss) from continuing operations which reflects adjustments to Net income (loss) per common share for the tax effected impact of severance and reorganization charges, goodwill impairment charge, environmental remediation charge, development project charges and tax valuation allowance.

These measures are provided because we understand that certain investors use this information when analyzing the financial position of the solid waste industry, including us. Historically, these measures have been key in comparing operating efficiency of publicly traded companies within the industry, and assist investors in measuring our ability to meet capital expenditures, payments on landfill operating lease contracts and working capital requirements. For these reasons, we utilize these non-GAAP metrics to measure our performance at all levels. EBITDA, Adjusted EBITDA and Free Cash Flow are not intended to replace "Net cash provided by operating activities", which is the most comparable GAAP financial measure. We also disclose Adjusted net income (loss) per common share from continuing operations which is reconciled to "Net income (loss) per common share", which is the most comparable GAAP measure. Adjusted net income (loss) per common share from continuing operations is not intended to replace "Net income (loss) per common share". Moreover, these measures do not necessarily indicate whether cash flow will be sufficient for such items as working capital, payments on landfill operating lease contracts or capital expenditures, or to react to changes in our industry or to the economy generally. Because these measures are not calculated by all companies in the same fashion, they may not be comparable to similarly titled measures reported by other companies.

Following is a reconciliation of Adjusted EBITDA and EBITDA to Net Cash Provided by Operating Activities:

                                 Three Months Ended   Twelve Months Ended
                                --------------------  --------------------
                                April 30,  April 30,  April 30,  April 30,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------


Net Cash Provided by Operating
 Activities                     $  19,782  $  26,887  $  71,190  $  77,520

Changes in assets and
 liabilities, net of effects
 of acquisitions and
 divestitures                      (3,597)   (12,527)    11,762      4,881
Stock-based compensation, net
 of excess tax benefit on
 exercise of options                 (362)      (291)    (1,273)    (1,517)
Provision for income taxes, net
 of deferred taxes                  1,518          2      4,119        313
Net interest expense plus
 amortization of premium on
 senior notes                       9,819      9,391     42,130     39,714
Preferred stock dividend                -          -     (1,038)         -
Depletion of landfill operating
 lease obligations                 (1,195)    (1,398)    (6,010)    (6,416)
Income from assets under
 contractual obligation               142         48      1,605        162
Severance and reorganization
 charges                                -      1,325      1,163      1,370
Gain on sale of equipment and
 other income, net                     60       (166)      (161)      (440)
                                ---------  ---------  ---------  ---------
Adjusted EBITDA (3)                26,167     23,271    123,487    115,587

Goodwill impairment charge              -    (55,286)         -    (55,286)
Environmental remediation
 charge                                 -     (1,533)         -     (4,356)
Hardwick impairment and closing
 charge                            (1,400)         -     (1,400)         -
Development project charge           (534)      (375)      (534)      (355)
                                ---------  ---------  ---------  ---------
EBITDA (3)                      $  24,233  $ (33,923) $ 121,553  $  55,590
                                =========  =========  =========  =========




               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                                Unaudited
                              (In thousands)


 Following is a reconciliation of Free Cash Flow to Net Cash Provided by
  Operating Activities:


                                 Three Months Ended   Twelve Months Ended
                                --------------------  --------------------
                                April 30,  April 30,  April 30,  April 30,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------


Adjusted EBITDA                 $  26,167  $  23,271  $ 123,487  $ 115,587
Add (deduct):
     Cash interest                (13,923)   (14,641)   (40,792)   (40,623)
     Capital expenditures         (13,996)    (8,157)   (73,174)   (57,736)
     Cash taxes                       425        693     (1,426)       332
     Depletion of landfill
      operating lease
      obligations                   1,195      1,398      6,010      6,416
     Change in working capital,
      adjusted for non-cash
      items                         6,178      1,611     (8,768)   (15,204)
                                ---------  ---------  ---------  ---------

FREE CASH FLOW                      6,046      4,175      5,337      8,772
Add (deduct):
     Capital expenditures          13,996      8,157     73,174     57,736
     Other                           (260)    14,555     (7,321)    11,012
                                ---------  ---------  ---------  ---------
Net Cash Provided by Operating
 Activities                     $  19,782  $  26,887  $  71,190  $  77,520
                                =========  =========  =========  =========


 Following details the Earnings per Share impact of various charges to
  earnings.  Adjustments to Earnings per Share are net of taxes:


Net loss per common share       $   (0.31) $   (2.67) $   (0.31) $   (2.66)
Add:
     Severance and
      reorganization charges            -       0.03       0.03       0.03
     Goodwill impairment charge         -       1.62          -       1.63
     Environmental remediation
      charge                            -       0.04          -       0.10
     Hardwick impairment and
      closing charge                 0.03          -       0.03          -
     Development project charge      0.01       0.01       0.01       0.01
     Tax valuation allowance         0.02       0.94       0.02       0.94
     Loss from discontinued
      operations                     0.01          -       0.07          -
     Loss on disposal of
      discontinued operations        0.07          -       0.08          -
                                ---------  ---------  ---------  ---------

Adjusted net income (loss) per
 common share from continuing
 operations                     $   (0.17) $   (0.03) $   (0.07) $    0.05
                                =========  =========  =========  =========




               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                        SUPPLEMENTAL DATA TABLES
                               (Unaudited)
                             (In thousands)


Amounts of the Company's total revenues attributable to services provided
are as follows:


                                    Three Months Ended  Twelve Months Ended
                                        April 30,           April 30,
                                    ------------------- -------------------
                                      2008      2009      2008      2009
                                    --------- --------- --------- ---------
Collection                          $  64,321 $  59,418 $ 270,075 $ 261,541
Landfill / disposal facilities         24,087    21,356   106,234   104,451
Transfer                                5,598     6,713    26,241    30,901
Recycling                              45,622    30,160   176,967   157,348
                                    --------- --------- --------- ---------
Total revenues                      $ 139,628 $ 117,647 $ 579,517 $ 554,241
                                    ========= ========= ========= =========


Components of revenue growth for the three months ended April 30, 2009
compared to the three months ended April 30, 2008:


                                                                Percentage
Solid Waste
 Operations (1)     Core price                                         3.4%
                    Fuel, oil and environmental recovery fee          -2.0%
                    Volume                                           -10.9%
                    Commodity price and volume                        -1.4%
                                                                -----------
Total growth - Solid Waste Operations                                -10.9%
                                                                ===========

FCR Operations (1)  Price                                            -26.0%
                    Volume                                            -8.2%
                                                                -----------
Total growth - FCR Operations                                        -34.2%
                                                                ===========

Rollover effect of acquisitions (2)                                    0.3%

Total revenue growth (2)                                             -15.7%

(1) - Calculated as a percentage of segment revenues.
(2) - Calculated as a percentage of total revenues.


Solid Waste Internalization Rates by Region:


                                 Three Months Ended   Twelve Months Ended
                                      April 30,             April 30,
                                --------------------  --------------------
                                2008 (1)     2009     2008 (1)     2009
                                ---------  ---------  ---------  ---------
Eastern region                       59.4%      48.1%      49.9%      49.2%
Central region                       77.5%      77.4%      78.9%      78.9%
Western region                       62.3%      66.5%      61.3%      66.0%
Solid Waste internalization          66.1%      62.7%      62.8%      63.7%


(1) Eastern region internalization rates for the three and twelve months
    ended April 30, 2008 have been revised to exclude the activity
    associated with MTS Environmental. The Company terminated operations
    at MTS Environmental during the quarter ended April 30, 2008.




               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
                        SUPPLEMENTAL DATA TABLES
                               (Unaudited)
                             (In thousands)


US GreenFiber Financial Statistics (as reported):


                                 Three Months Ended   Twelve Months Ended
                                      April 30,             April 30,
                                --------------------  --------------------
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------
Revenues                        $  31,709  $  27,657  $ 151,635  $ 129,810
Net loss                           (2,551)      (266)    (8,103)    (4,315)
Cash flow from operations           2,834      1,519     10,178     10,910
Net working capital changes         2,503     (1,178)     6,597      3,515
Adjusted EBITDA                 $     331  $   2,697  $   3,581  $   7,395

As a percentage of revenue:

Net loss                             -8.0%      -1.0%      -5.3%      -3.3%
Adjusted EBITDA                       1.0%       9.8%       2.4%       5.7%


Components of Growth versus Maintenance Capital Expenditures (1):


                                          Three Months      Twelve Months
                                        Ended April 30,   Ended April 30,
                                        ----------------- -----------------
                                          2008     2009     2008     2009
                                        -------- -------- -------- --------
Growth Capital Expenditures:
  Landfill Development                  $  1,271 $      - $ 11,896 $  6,642
  MRF Equipment Upgrades                   3,282        -    4,053    1,310
  Other                                      117      405    3,001    2,618
                                        -------- -------- -------- --------
Total Growth Capital Expenditures          4,670      405   18,950   10,570
                                        -------- -------- -------- --------

Maintenance Capital Expenditures:
  Vehicles, Machinery / Equipment and
   Containers                              2,809    1,485   12,326   14,430
  Landfill Construction & Equipment        4,385    5,601   30,126   28,325
  Facilities                               1,485      353    9,783    2,642
  Other                                      647      313    1,989    1,769
                                        -------- -------- -------- --------
Total Maintenance Capital Expenditures     9,326    7,752   54,224   47,166
                                        -------- -------- -------- --------

Total Capital Expenditures              $ 13,996 $  8,157 $ 73,174 $ 57,736
                                        ======== ======== ======== ========


(1) The Company's capital expenditures are broadly defined as pertaining
    to either growth or maintenance activities. Growth capital expenditures
    are defined as costs related to development of new airspace, permit
    expansions, 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 new business as well as expenditures associated with
    increasing infrastructure to increase throughput at transfer stations
    and recycling facilities. Growth capital expenditures also include
    those outlays associated with acquiring landfill operating leases,
    which do not meet the operating lease payment definition, but which
    were included as a commitment in the successful bid. Maintenance
    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.

Contact Information

  • For further information, contact:
    Ned Coletta
    Director of Investor Relations
    (802) 772-2239
    http://www.casella.com