SOURCE: Casella Waste Systems, Inc.

Casella Waste Systems, Inc.

March 01, 2011 16:49 ET

Casella Waste Systems, Inc. Announces Third Quarter Fiscal Year 2011 Results

RUTLAND, VT--(Marketwire - March 1, 2011) - 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 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. Adjusted EBITDA* for the quarter was $22.4 million, down $1.6 million from 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."

"As expected in the quarter, the lower energy prices at Maine Energy, the final closure of the Pine Tree landfill in Q3 fiscal year 2010, and the sale of the Cape Cod assets in Q1 fiscal year 2011 led to a negative $0.6 million year-over-year Adjusted EBITDA variance," Casella said. "Excluding these explainable negative impacts and divestiture transaction costs in the quarter that were not allocated to discontinued operations, Adjusted EBITDA was down $0.8 million year-over-year."

"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% Senior Subordinated Notes due 2013 with new $200.0 million 7.75% Senior Subordinated Notes due 2019, yielding significant interest savings.
  • "We acquired a municipal solid waste landfill in McKean County, PA out of bankruptcy proceedings for $0.5 million in cash and the assumption of certain contractual obligations."
Nine Months Financial Results

For the nine months ended January 31, 2011, revenues were $356.5 million, up $11.6 million or 3.4 percent over the same period last year. Operating income was $31.2 million for the nine month period, up $6.1 million from the same period last year, including a $3.5 million gain on sale of assets. The company's net loss applicable to common shareholders was ($10.4) million, or ($0.40) per common share for the nine month period, compared to ($8.7) million, or ($0.34) per share for the same period last year. Adjusted EBITDA was $84.5 million for the nine month period, up $2.4 million from same period last year. While the actual completion of the divestiture of the non-integrated recycling assets occurred during the fourth quarter on March 1, 2011, the third quarter and nine month year to date results reflect discontinued operations treatment for these assets in accordance with GAAP.

Fiscal 2011 Outlook

The following ranges reflect updated guidance for fiscal year 2011, including discontinued operations treatment for the divestiture of the non- integrated recycling facilities in the fourth quarter.

  • Revenues between $460.0 million and $468.0 million;
  • Adjusted EBITDA* between $102.0 million and $106.0 million; and
  • Capital expenditures between $51.0 million and $55.0 million.

In recognition of the value created through the successful divestiture of the non-integrated recycling assets and the steps taken to recapitalize our balance sheet at lower interest rates, the board approved a $3.5 million discretionary bonus to management, which is reflected in the above guidance. Management will not receive a cash incentive bonus in addition to this discretionary bonus for this fiscal year. Since bonuses were not accrued for during the 9 months year-to-date period, the discretionary bonus will be fully expensed in the fourth quarter. We plan to announce fiscal year 2012 guidance on our year end conference call in June.

*Non-GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), the company also discloses earnings before interest, taxes, depreciation and amortization, adjusted for accretion, depletion of landfill operating lease obligations, severance and reorganization charges, a goodwill impairment charge, an environmental remediation charge as well as development project charges (Adjusted EBITDA) 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, less payments on landfill operating leases, less assets acquired through financing leases, plus proceeds from sales of property and equipment, which is a non-GAAP measure. Adjusted EBITDA is reconciled to Net Income (Loss), while Free Cash Flow is reconciled to Net Cash Provided by Operating Activities.

We present Adjusted EBITDA and Free Cash Flow because we consider them important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of our results. Management uses these non-GAAP measures to further understand our "core operating performance." We believe our "core operating performance" represents our on-going performance in the ordinary course of operations. We believe that providing Adjusted EBITDA and Free Cash Flow to investors, in addition to corresponding income statement and cash flow statement measures, provides investors the benefit of viewing our 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. We further believe that providing this information allows our investors greater transparency and a better understanding of our core financial performance. In addition, the instruments governing our indebtedness use EBITDA (with additional adjustments) to measure our compliance with covenants such as interest coverage, leverage and debt incurrence.

Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the U.S. Adjusted EBITDA and Free Cash Flow should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles in the U.S., and may be different from Adjusted EBITDA or Free Cash Flow presented by other companies.

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, contact Ned Coletta, vice president of finance and investor relations at (802) 772-2239, or Ed Johnson, chief financial officer at (802) 772-2241, or visit the company's website at http://www.casella.com.

Conference call to discuss third quarter

Casella will host a conference call to discuss these results on Wednesday, March 2, 2011 at 10:00 a.m. ET. Individuals interested in participating in the call should dial (877) 548-9590 or (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 http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the website, or by calling (800) 642-1687 or (706) 645-9291 (passcode 44979174) until 11:59 p.m. ET on Thursday, March 10, 2011.

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 "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 revenues 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 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, 2010.

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.

               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                 (In thousands, except amounts per share)

                              Three Months Ended      Nine Months Ended
                            ----------------------  ----------------------
                            January 31, January 31, January 31, January 31,
                               2011        2010        2011        2010
                            ----------  ----------  ----------  ----------

Revenues                    $  111,627  $  109,884  $  356,515  $  344,947

Operating expenses:
 Cost of operations             76,933      73,724     237,584     226,986
 General and administration     14,832      14,900      46,446      43,554
 Depreciation and
  amortization                  13,573      13,850      44,776      49,327
 Gain on sale of assets              -           -      (3,502)          -
                            ----------  ----------  ----------  ----------
                               105,338     102,474     325,304     319,867
                            ----------  ----------  ----------  ----------

Operating income                 6,289       7,410      31,211      25,080

Other expense/(income), net:
 Interest expense, net          12,174      12,520      36,603      33,657
 (Gain) loss from equity
  method investment               (102)        (73)      2,536       1,305
 Loss on debt modification         115           -         115         511
 Other income                      (78)       (195)       (490)       (487)
                            ----------  ----------  ----------  ----------
                                12,109      12,252      38,764      34,986
                            ----------  ----------  ----------  ----------

Loss from continuing
 operations before income
 taxes and discontinued
 operations                     (5,820)     (4,842)     (7,553)     (9,906)
Provision for income taxes       1,079         572       2,139         941
                            ----------  ----------  ----------  ----------

Loss from continuing
 operations before
 discontinued operations        (6,899)     (5,414)     (9,692)    (10,847)

Discontinued Operations:
 Income from discontinued
  operations, net of income
  taxes (1)                      1,902         799       1,255       1,814
 (Loss) income on disposal
  of discontinued
  operations, net of income
  taxes (1)                     (1,368)        239      (1,984)        328
                            ----------  ----------  ----------  ----------

Net loss applicable to
 common stockholders        $   (6,365) $   (4,376) $  (10,421) $   (8,705)
                            ==========  ==========  ==========  ==========

Common stock and common
 stock equivalent shares
 outstanding, assuming
 full dilution                  26,115      25,748      26,026      25,705
                            ==========  ==========  ==========  ==========

Net loss per common share   $    (0.24) $    (0.17) $    (0.40) $    (0.34)
                            ==========  ==========  ==========  ==========

Adjusted EBITDA (2)         $   22,408  $   24,040  $   84,487  $   82,089
                            ==========  ==========  ==========  ==========





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


                                                      January 31, April 30,
                        ASSETS                            2011       2010
                                                      ----------- ---------

CURRENT ASSETS:
  Cash and cash equivalents                           $     5,531 $   2,035
  Restricted cash                                              76        76
  Accounts receivable - trade, net of allowance for
   doubtful accounts                                       47,603    51,370
  Other current assets                                     29,998    28,583
                                                      ----------- ---------
Total current assets                                       83,208    82,064

Property, plant and equipment, net of accumulated
 depreciation                                             455,265   457,670
Goodwill                                                  100,430   100,430
Intangible assets, net                                      2,221     2,404
Restricted assets                                             317       228
Investments in unconsolidated entities                     39,228    40,965
Other non-current assets                                   64,490    71,053
                                                      ----------- ---------

Total assets                                          $   745,159 $ 754,814
                                                      =========== =========

         LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current maturities of long-term debt and capital
   leases                                             $     2,411 $   1,929
  Current maturities of financing lease obligations           311     1,045
  Accounts payable                                         34,859    35,056
  Other accrued liabilities                                49,263    52,050
                                                      ----------- ---------
Total current liabilities                                  86,844    90,080

Long-term debt and capital leases, less current
 maturities                                               562,998   556,130
Financing lease obligations, less current maturities        2,236     7,902
Other long-term liabilities                                49,665    50,406

Stockholders' equity                                       43,416    50,296
                                                      ----------- ---------

Total liabilities and stockholders' equity            $   745,159 $ 754,814
                                                      =========== =========




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

                                                      Nine Months Ended
                                                    ----------------------
                                                    January 31, January 31,
                                                       2011        2010
                                                    ----------  ----------
 Cash Flows from Operating Activities:
 Net loss                                           $  (10,421) $   (8,705)
 (Income) from discontinued operations, net             (1,255)     (1,814)
 Loss (income) on disposal of discontinued
  operations, net                                        1,984        (328)
 Adjustments to reconcile net loss to net cash
  provided by operating activities -
  Gain on sale of assets                                (3,502)          -
  Gain on sale of equipment                               (399)     (1,099)
  Depreciation and amortization                         44,776      49,327
  Depletion of landfill operating lease obligations      6,013       4,936
  Interest accretion on landfill and environmental
   remediation liabilities                               2,487       2,668
  Amortization of premium on senior notes                 (584)       (540)
  Amortization of discount on term loan and second
   lien notes                                            1,650       1,141
  Loss from equity method investments                    2,536       1,305
  Loss on debt modification                                115         511
  Stock-based compensation                               2,052       1,598
  Excess tax benefit on the vesting of stock
   options                                                (122)          -
  Deferred income taxes                                  1,827       2,016
  Changes in assets and liabilities, net of
   effects of acquisitions and divestitures             (1,903)     (7,314)
                                                    ----------  ----------
                                                        54,946      54,549
                                                    ----------  ----------
   Net Cash Provided by Operating Activities            45,254      43,702
                                                    ----------  ----------
 Cash Flows from Investing Activities:
  Additions to property, plant and equipment
                                      -   growth        (1,175)     (2,914)
                                      - maintenance    (40,268)    (35,532)
  Payments on landfill operating lease contracts        (4,977)     (7,803)
  Proceeds from divestiture                              7,533           -
  Proceeds from sale of equipment                          631       2,782
  Investment in unconsolidated entities                      -         (20)
                                                    ----------  ----------
   Net Cash Used In Investing Activities               (38,256)    (43,487)
                                                    ----------  ----------
 Cash Flows from Financing Activities:
  Proceeds from long-term borrowings                   134,100     450,644
  Principal payments on long-term debt                (132,957)   (440,033)
  Payment of financing costs                              (340)    (14,072)
  Proceeds from exercise of stock options                  412         260
  Excess tax benefit on the vesting of restricted
   stock                                                   122           -
                                                    ----------  ----------
   Net Cash Provided By (Used In) Financing
    Activities                                           1,337      (3,201)
                                                    ----------  ----------
 Cash (Used In) Provided By Discontinued Operations     (4,839)      3,319
                                                    ----------  ----------
 Net increase in cash and cash equivalents               3,496         333
 Cash and cash equivalents, beginning of period          2,035       1,838
                                                    ----------  ----------
 Cash and cash equivalents, end of period           $    5,531  $    2,171
                                                    ==========  ==========
 Supplemental Disclosures:
 Cash interest                                      $   32,381  $   25,746
 Cash income taxes, net of refunds                  $      142  $      345





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

Note 1:     Discontinued Operations

On January 23, 2011 we entered into a purchase and sale agreement and
related agreements to sell select non-integrated FCR recycling assets and
select intellectual property assets to a new company formed by Pegasus
Capital Advisors, L.P. and Intersection, LLC (the "Purchaser") for $134,100
in gross proceeds (the "FCR Divestiture").  This resulted in a loss on
disposal of discontinued operations (net of tax) of $1,404 and $2,020 in
the three and nine months ended January 31, 2011, respectively. Income from
discontinued operations (net of tax) for the three and nine months ended
January 31, 2011 and 2010 amounted to $2,115, $1,017, $2,098 and $2,152,
respectively.

We completed the divestiture of the assets of our FCR Trilogy Glass
operation in the third quarter of fiscal year 2011 for $1,840 in cash.
This resulted in a gain on disposal of discontinued operations amounting to
$36 (net of tax) in the three and nine months ended January 31, 2011.  Loss
from discontinued operations (net of tax) for the three and nine months
ended January 31, 2011 and 2010 amounted to $213, $205, $844 and $551,
respectively.

In fiscal year 2010, we completed divestitures and closed operations
resulting in a gain on disposal of discontinued operations (net of tax)
amounting to $239 and $328 in the three and nine months ended January 31,
2010, respectively.

The operating results of these operations for the three and nine months
ended January 31, 2011 and 2010 have been reclassified from continuing to 
discontinued operations in our consolidated financial statements.  Revenues
and income before income tax benefit attributable to discontinued
operations for the three and nine months ended January 31, 2011 and 2010
are as follows:

                                    Three Months Ended   Nine Months Ended
                                         January 31,        January 31,
                                    ------------------- -------------------
                                      2011      2010      2011      2010
                                    --------- --------- --------  ---------
Revenues                            $  20,159 $  16,446 $ 56,122  $  48,217
Income (loss) before income taxes   $     491 $   1,397 $   (771) $   3,215
                                    --------- --------- --------  ---------


Note 2:     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, adjusted for
accretion, depletion of landfill operating lease obligations, severance and
reorganization charges, goodwill impairment charges, environmental
remediation charges as well as development project charges (Adjusted
EBITDA) which is a non-GAAP measure.  We also disclose Free Cash Flow,
which is defined as net cash provided by operating activities, less capital
expenditures, less payments on landfill operating leases, less assets
acquired through financing leases, plus proceeds from sales of property and
equipment, which is a non-GAAP measure.  Adjusted EBITDA is reconciled to
Net loss, while Free Cash Flow is reconciled to Net Cash Provided by
Operating Activities.

We present Adjusted EBITDA and Free Cash Flow because we consider them
important supplemental measures of our performance and believe they are
frequently used by securities analysts, investors and other interested
parties in the evaluation of our results. Management uses these non-GAAP
measures to further understand our "core operating performance." We believe
our "core operating performance" represents our on-going performance in the
ordinary course of operations. We believe that providing Adjusted EBITDA
and Free Cash Flow to investors, in addition to corresponding income
statement and cash flow statement measures, provides investors the benefit
of viewing our 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. We
further believe that providing this information allows our investors
greater transparency and a better understanding of our core financial
performance. In addition, the instruments governing our indebtedness use
EBITDA (with additional adjustments) to measure our 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 in the U.S. Adjusted EBITDA and Free Cash Flow should not be
considered in isolation from or as a substitute for financial information
presented in accordance with GAAP in the U.S., and may be different from
Adjusted EBITDA or Free Cash Flow presented by other companies.



Following is a reconciliation of Adjusted EBITDA to Net Loss:

                                 Three Months Ended     Nine Months Ended
                                --------------------  --------------------
                                 January    January    January    January
                                 31, 2011   31, 2010   31, 2011   31, 2010
                                ---------  ---------  ---------  ---------

Net Loss Applicable to Common
 Stockholders                   $  (6,365) $  (4,376) $ (10,421) $  (8,705)
 Income from discontinued
  operations, net                  (1,902)      (799)    (1,255)    (1,814)
 Loss (income) on disposal of
  discontinued operations, net      1,368       (239)     1,984       (328)
 Provision for income taxes         1,079        572      2,139        941
 Interest expense, net             12,174     12,520     36,603     33,657
 Depreciation and amortization     13,573     13,850     44,776     49,327
 Other (income) expense, net          (65)      (268)     2,161      1,329
 Severance and reorganization
  charges                               -         78          -         78
 Depletion of landfill
  operating lease obligations       1,714      1,771      6,013      4,936
 Interest accretion on landfill
  and environmental remediation
  liabilities                         832        931      2,487      2,668
                                ---------  ---------  ---------  ---------
Adjusted EBITDA (2)             $  22,408  $  24,040  $  84,487  $  82,089
                                =========  =========  =========  =========


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


                                 Three Months Ended     Nine Months Ended
                                --------------------  --------------------
                                 January    January    January    January
                                 31, 2011   31, 2010   31, 2011   31, 2010
                                ---------  ---------  ---------  ---------
Net Cash Provided by Operating
 Activities                     $   8,804  $   7,232  $  45,254  $  43,702
Capital expenditures              (10,669)    (6,284)   (41,443)   (38,446)
Payments on landfill operating
 lease contracts                   (2,727)    (3,265)    (4,977)    (7,803)
Proceeds from divestiture and
 sale of property and equipment       143        285      8,164      2,782
Assets acquired through
 financing leases                       -       (404)         -       (404)
                                ---------  ---------  ---------  ---------
Free Cash Flow (2)              $  (4,449) $  (2,436) $   6,998  $    (169)
                                =========  =========  =========  =========



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

Amounts of our total revenues attributable to services provided for the
three and nine months ended January 31, 2011 and 2010 are as follows:

                                      Three Months Ended January 31,
                                ------------------------------------------
                                             % of                  % of
                                             Total                 Total
                                  2011      Revenue     2010      Revenue
                                ---------  ---------  ---------  ---------
Collection                      $  48,068       43.0% $  49,127       44.7%
Disposal                           23,610       21.2%    23,992       21.8%
Power/LFGTE                         7,170        6.4%     7,314        6.7%
Processing and recycling           13,962       12.5%    12,602       11.5%
                                ---------  ---------  ---------  ---------
Solid waste operations             92,810       83.1%    93,035       84.7%
Major accounts                      9,906        8.9%     9,414        8.5%
Recycling                           8,911        8.0%     7,435        6.8%
                                ---------  ---------  ---------  ---------
Total revenues                  $ 111,627      100.0% $ 109,884      100.0%
                                =========  =========  =========  =========

                                       Nine Months Ended January 31,
                                ------------------------------------------
                                             % of                  % of
                                             Total                 Total
                                  2011      Revenue     2010      Revenue
                                ---------  ---------  ---------  ---------
Collection                      $ 152,628       42.8% $ 155,587       45.1%
Disposal                           84,240       23.6%    82,367       23.9%
Power/LFGTE                        19,156        5.4%    20,842        6.0%
Processing and recycling           43,424       12.2%    36,379       10.5%
                                ---------  ---------  ---------  ---------
Solid waste operations            299,448       84.0%   295,175       85.5%
Major accounts                     30,447        8.5%    28,901        8.4%
Recycling                          26,620        7.5%    20,871        6.1%
                                ---------  ---------  ---------  ---------
Total revenues                  $ 356,515      100.0% $ 344,947      100.0%
                                =========  =========  =========  =========

Components of revenue growth for the three months ended January 31, 2011
compared to the three months ended January 31, 2010:

                                              % of       % of      % of
                                            Related  Solid Waste   Total
                                  Amount    Business  Operations  Company
                                ---------  ---------  ---------  ---------
Solid Waste Operations:
Collection                      $     238        0.5%       0.3%       0.2%
Disposal                              171        0.7%       0.2%       0.2%
Power/LFGTE                          (314)      -4.3%      -0.4%      -0.3%
Processing and recycling               59        0.5%       0.1%       0.0%
                                ---------             ---------  ---------
Solid Waste Yield                     154                   0.2%       0.1%

Volume                              2,131                   2.3%       1.9%
Commodity price & volume              147                   0.2%       0.1%
Fuel surcharges                        75                   0.1%       0.1%
Acquisitions & divestitures        (1,476)                 -1.6%      -1.3%
Closed landfill                    (1,255)                 -1.4%      -1.1%
                                ---------             ---------  ---------
Total Solid Waste                    (224)                 -0.2%      -0.2%
                                =========             =========  =========

Major Accounts                        492                              0.4%
                                =========                        =========

Recycling Operations:                                    % of
                                                      Recycling
                                                      Operations
                                                      ---------
Commodity price                     2,075                  27.9%       1.9%
Commodity volume                     (599)                 -8.0%      -0.5%
                                ---------             ---------  ---------
Total Recycling                     1,476                  19.9%       1.4%
                                =========             =========  =========

                                ---------                        ---------
Total Company                   $   1,743                              1.6%
                                =========                        =========

Solid Waste Internalization Rates by Region:

                                 Three Months Ended    Nine Months Ended
                                     January 31,           January 31,
                                --------------------  --------------------
                                   2011       2010       2011       2010
                                ---------  ---------  ---------  ---------
Eastern region                       58.0%      61.0%      54.4%      52.5%
Central region                       81.5%      78.7%      81.8%      77.5%
Western region                       58.4%      65.1%      64.4%      68.4%
Solid waste internalization          65.6%      66.8%      65.2%      65.0%






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

GreenFiber Financial Statistics - as reported (1):

                          Three Months Ended  Nine Months Ended
                              January 31,         January 31,
                          ------------------  ------------------
                            2011      2010      2011      2010
                          --------  --------  --------  --------
Revenues                  $ 28,470  $ 32,528  $ 66,488  $ 82,545
Net income (loss)              205       146    (5,071)   (2,610)
Cash flow from operations      434      (749)   (2,604)    5,241
Net working capital
 changes                    (2,324)   (3,719)   (5,016)   (1,092)
Adjusted EBITDA           $  2,758  $  2,970  $  2,412  $  6,333

As a percentage of
 revenue:

Net income (loss)              0.7%      0.4%     -7.6%     -3.2%
Adjusted EBITDA                9.7%      9.1%      3.6%      7.7%

(1)  We hold a 50% interest in US Green Fiber, LLC ("GreenFiber"), a
     joint venture that manufactures, markets and sells cellulose
     insulation made from recycled fiber.

Components of Growth and Maintenance Capital Expenditures (1):

                                    Three Months Ended   Nine Months Ended
                                        January 31,         January 31,
                                    ------------------  -------------------
                                      2011      2010      2011      2010
                                    --------  --------  --------  ---------
Growth Capital
 Expenditures:
 Landfill Development               $    182  $      -  $    409  $   1,026
 Other                                     4       280       766      1,888
                                    --------  --------  --------  ---------
Total Growth Capital
 Expenditures                            186       280     1,175      2,914
                                    --------  --------  --------  ---------

Maintenance Capital Expenditures:

 Vehicles, Machinery / Equipment
  and Containers                       4,390       904    14,677      8,794
 Landfill Construction & Equipment     5,040     4,147    22,870     23,469
 Facilities                              704       737     1,852      2,586
 Other                                   349       216       869        683
                                    --------  --------  --------  ---------
Total Maintenance Capital
 Expenditures                         10,483     6,004    40,268     35,532
                                    --------  --------  --------  ---------

Total Capital Expenditures          $ 10,669  $  6,284  $ 41,443  $  38,446
                                    ========  ========  ========  =========

(1) Our 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.  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.



               CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                 (In thousands, except amounts per share)

                                    Three Months Ended
                ----------------------------------------------------------
                 October  July 31,  April 30,  January   October  July 31,
                31, 2010    2010      2010    31, 2010  31, 2009    2009
                --------  --------  --------  --------  --------  --------

Revenues        $122,895  $121,992  $112,695  $109,884  $118,035  $117,028

Operating
 expenses:
 Cost of
  operations      79,313    81,338    76,413    73,724    76,151    77,111
 General and
  administration  15,697    15,916    14,001    14,900    13,769    14,885
 Depreciation
  and
  amortization    15,620    15,584    14,291    13,850    17,148    18,329
 Gain on sale
  of assets            -    (3,502)        -         -         -         -
 Environmental
  remediation
  charge               -         -       335         -         -         -
                 110,630   109,336   105,040   102,474   107,068   110,326
                --------  --------  --------  --------  --------  --------

Operating income  12,265    12,656     7,655     7,410    10,968     6,702

Other
 expense/(income),
 net:
 Interest
  expense, net    12,146    12,282    12,364    12,520    12,636     8,502
 Loss (gain)
  from equity
  method
  investment         506     2,132     1,385       (73)      159     1,219
 Loss on debt
  modification         -         -         -         -         -       511
 Other income       (318)      (94)     (359)     (195)     (247)      (45)
                --------  --------  --------  --------  --------  --------
                  12,334    14,320    13,390    12,252    12,548    10,187
                --------  --------  --------  --------  --------  --------

Loss from
 continuing
 operations
 before income
 taxes and
 discontinued
 operations          (69)   (1,664)   (5,735)   (4,842)   (1,580)   (3,485)
Provision for
 income taxes        281       779       563       572       284        84
                --------  --------  --------  --------  --------  --------

Loss from
 continuing
 operations
 before
 discontinued
 operations         (350)   (2,443)   (6,298)   (5,414)   (1,864)   (3,569)

Discontinued
 Operations:
 (Loss) income
  from discontinued
  operations,
  net of income
  taxes             (240)     (407)      293       799       265       750
 (Loss) income
  on disposal
  of discontinued
  operations,
  net of income
  taxes             (564)      (51)      852       239        48        41
                --------  --------  --------  --------  --------  --------

Net loss
 applicable
 to common
 stockholders   $ (1,154) $ (2,902) $ (5,153) $ (4,376) $ (1,551) $ (2,778)
                ========  ========  ========  ========  ========  ========

Common stock and
 common stock
 equivalent
 shares
 outstanding,
 assuming full
 dilution         26,058    25,905    25,810    25,748    25,733    25,688
                ========  ========  ========  ========  ========  ========

Net loss per
 common share   $  (0.04) $  (0.11) $  (0.20) $  (0.17) $  (0.06) $  (0.11)
                ========  ========  ========  ========  ========  ========

Adjusted EBITDA $ 30,804  $ 31,276  $ 25,158  $ 24,040  $ 30,539  $ 27,510
                ========  ========  ========  ========  ========  ========



    Following is a reconciliation of Adjusted EBITDA to Net Loss:



                                    Three Months Ended
                ----------------------------------------------------------
                 October  July 31,  April 30,  January   October  July 31,
                31, 2010    2010      2010    31, 2010  31, 2009    2009
                --------  --------  --------  --------  --------  --------

Net Loss
 Applicable to
 Common Stock
 Holders        $ (1,154) $ (2,902) $ (5,153) $ (4,376) $ (1,551) $ (2,778)
 Income from
  discontinued
  operations, net    240       407      (293)     (799)     (265)     (750)
 Loss (income)
  on disposal of
  discontinued
  operations, net    564        51      (852)     (239)      (48)      (41)
 Provision for
  income taxes       281       779       563       572       284        84
 Interest
  expense, net    12,146    12,282    12,364    12,520    12,636     8,502
 Depreciation
  and
  amortization    15,620    15,584    14,291    13,850    17,148    18,329
 Other expense
  (income), net      188     2,038     1,026      (268)      (88)    1,685
 Environmental
  remediation
  charge               -         -       335         -         -         -
 Severance and
  reorganization
  charges              -         -       107        78         -         -
 Depletion of
  landfill
  operating
  lease
  obligations      2,107     2,192     1,931     1,771     1,645     1,520
 Interest
  accretion on
  landfill and
  environmental
  remediation
  liabilities        812       844       839       931       778       959
                --------  --------  --------  --------  --------  --------
Adjusted
 EBITDA (2)     $ 30,804  $ 31,276  $ 25,158  $ 24,040  $ 30,539  $ 27,510
                ========  ========  ========  ========  ========  ========

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