SOURCE: Casella Waste Systems, Inc.

Casella Waste Systems, Inc.

December 01, 2010 16:15 ET

Casella Waste Systems, Inc. Revenues and Operating Income up Year-Over-Year in Second Quarter Fiscal Year 2011 Results

RUTLAND, VT--(Marketwire - December 1, 2010) - Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported growth in both revenue and operating income as it released its financial results for the second quarter of its 2011 fiscal year.

For the quarter ended October 31, 2010, revenues were $141.0 million, up $7.9 million or 5.9 percent over the same quarter last year. Operating income was $13.8 million for the quarter, up $0.1 million from the same quarter last year. The company's net loss applicable to common shareholders was ($1.2) million, or ($0.04) per common share for the quarter, compared to ($1.6) million, or ($0.06) per share for the same quarter last year.

Highlights for the quarter included:

  • The 5.9 percent in revenue growth from the same quarter last year was driven mainly by Solid Waste volume growth and higher recycling commodity prices and volumes.

  • Operating income was up 0.7 percent from the same quarter last year.

  • Adjusted EBITDA* for the quarter was $33.5 million, down $0.9 million from same quarter last year.

  • Net debt reduction was $2.9 million from July 31, 2010.

  • Company remains on target to achieve Revenue, Adjusted EBITDA, and Free Cash Flow* guidance ranges.

"We're pleased with our operating performance in the second quarter, especially at our landfills where tonnages were up 16 percent and Adjusted EBITDA was up 24 percent from last year," said John W. Casella, chairman and CEO of Casella Waste Systems. "On an annualized basis, our landfills are running at or near their maximum permitted levels, which has allowed us to begin pushing out lower priced tonnages and raising spot prices. Our team is doing a great job sourcing new landfill contracts and streams of materials to offset continued weakness in the regional economy and construction & demolition volumes."

"As expected in the quarter, the lower energy prices at Maine Energy and the final closure of the Pine Tree landfill had a negative $2.8 million year-over-year impact on Adjusted EBITDA," Casella said. "Excluding these negative impacts, Adjusted EBITDA was up year-over-year."

"During the second quarter we made substantial progress with negotiations and due diligence towards the sale of assets in excess of the $75.0 million divestiture target that we established last year, although we have not yet reached definitive agreements," Casella said. "As part of this divestiture work in progress we incurred $0.7 million of transaction costs during the quarter."

Six Months Financial Results

For the six months ended October 31, 2010, revenues were $280.9 million, up $15.3 million or 5.8 percent over the same period last year. Operating income was $28.4 million for the six month period, up $5.6 million from the same period last year, including a $3.5 million gain on divestitures. The company's net loss applicable to common shareholders was ($4.1) million, or ($0.16) per common share for the six month period, compared to ($4.3) million, or ($0.17) per share for the same period last year.

Fiscal 2011 Outlook

The company confirmed its fiscal year guidance in the following categories:

  • Revenues between $532.0 million and $542.0 million.

  • Adjusted EBITDA* between $123.0 million and $127.0 million.

  • Free Cash Flow* between $4.0 million and $11.0 million.

*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 and Free Cash Flow are reconciled to Net Cash Provided by Operating Activities in the attached Notes to Consolidated Financial Statements.

These measures are provided because the company understands 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 the company's ability to meet capital expenditures, payments on landfill operating lease contracts and working capital requirements. For these reasons, the company utilizes these non-GAAP metrics to measure our performance at all levels. 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. 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 the company's 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.

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 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.

Conference call to discuss second quarter

Casella will host a conference call to discuss these results on Thursday, December 2, 2010 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://www.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 26460243) until 11:59 p.m. ET on Thursday, December 9, 2010.

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; we may be unable to implement our divestiture plan due to market conditions or other factors; 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       Six Months Ended
                            ----------------------  ----------------------
                            October 31, October 31, October 31, October 31,
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------

Revenues                    $  141,009  $  133,094  $  280,850  $  265,551

Operating expenses:
  Cost of operations            92,978      86,379     187,824     174,007
  General and
   administration               17,406      14,755      34,630      30,980
  Depreciation and
   amortization                 16,791      18,309      33,518      37,801
  Gain on divestiture                -           -      (3,502)          -
                            ----------  ----------  ----------  ----------
                               127,175     119,443     252,470     242,788
                            ----------  ----------  ----------  ----------

Operating income                13,834      13,651      28,380      22,763

Other expense/(income), net:
  Interest expense, net         14,518      14,978      29,150      24,790
  Loss from equity method
   investment                      506         159       2,638       1,378
  Loss on debt modification          -           -           -         511
  Other income                    (317)       (247)       (412)       (291)
                            ----------  ----------  ----------  ----------
                                14,707      14,890      31,376      26,388
                            ----------  ----------  ----------  ----------

Loss from continuing
 operations before income
 taxes and discontinued
 operations                       (873)     (1,239)     (2,996)     (3,625)
Provision for income taxes         281         457       1,060       1,019
                            ----------  ----------  ----------  ----------

Loss from continuing
 operations before
 discontinued operations        (1,154)     (1,696)     (4,056)     (4,644)

Discontinued Operations:
  Income from discontinued
   operations, net of
   income taxes (1)                  -          97           -         226
  Income on disposal of
   discontinued operations,
   net of income taxes (1)           -          48           -          89
                            ----------  ----------  ----------  ----------

Net loss available to
 common stockholders        $   (1,154) $   (1,551) $   (4,056) $   (4,329)
                            ==========  ==========  ==========  ==========

Common stock and common
 stock equivalent shares
 outstanding,
 assuming full dilution         26,058      25,733      25,981      25,711
                            ==========  ==========  ==========  ==========

Net loss per common share   $    (0.04) $    (0.06) $    (0.16) $    (0.17)
                            ==========  ==========  ==========  ==========

Adjusted EBITDA (3)         $   33,543  $   34,384  $   67,853  $   65,467
                            ==========  ==========  ==========  ==========






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


                                                     October 31,  April 30,
                      ASSETS                            2010        2010
                                                     ----------  ----------

CURRENT ASSETS:
  Cash and cash equivalents                          $    4,044  $    2,035
  Restricted cash                                            76          76
  Accounts receivable - trade, net of allowance
   for doubtful accounts                                 65,032      61,722
  Other current assets                                   18,501      18,231
                                                     ----------  ----------
Total current assets                                     87,653      82,064

Property, plant and equipment, net of accumulated
 depreciation                                           478,715     480,053
Goodwill                                                125,792     125,792
Intangible assets, net                                    2,603       3,085
Restricted assets                                           311         228
Investments in unconsolidated entities                   38,825      40,965
Other non-current assets                                 18,326      22,627
                                                     ----------  ----------

Total assets                                         $  752,225  $  754,814
                                                     ==========  ==========

        LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current maturities of long-term debt and capital
   leases                                            $    2,425  $    2,000
  Current maturities of financing lease obligations       1,471       1,449
  Accounts payable                                       43,419      40,139
  Other accrued liabilities                              45,777      46,492
                                                     ----------  ----------
Total current liabilities                                93,092      90,080

Long-term debt and capital leases, less current
 maturities                                             551,833     556,130
Financing lease obligations, less current maturities     10,066      10,832
Other long-term liabilities                              48,805      47,476

Stockholders' equity                                     48,429      50,296
                                                     ----------  ----------

Total liabilities and stockholders' equity           $  752,225  $  754,814
                                                     ==========  ==========






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


                                                       Six Months Ended
                                                    ----------------------
                                                    October 31, October 31,
                                                       2010        2009
                                                    ----------  ----------
Cash Flows from Operating Activities:
Net loss                                            $   (4,056) $   (4,329)
Income from discontinued operations, net                     -        (226)
Income on disposal of discontinued operations, net           -         (89)
Adjustments to reconcile net loss to net cash
 provided by operating activities -
  Gain on divestiture                                   (3,502)          -
  Gain on sale of equipment                               (310)       (916)
  Depreciation and amortization                         33,518      37,801
  Depletion of landfill operating lease obligations      4,299       3,165
  Interest accretion on landfill and environmental
   remediation liabilities                               1,656       1,738
  Amortization of premium on senior notes                 (386)       (356)
  Amortization of discount on term loan and second
   lien notes                                            1,088         626
  Loss from equity method investments                    2,638       1,378
  Loss on debt modification                                  -         511
  Stock-based compensation                               1,480       1,040
  Excess tax benefit on the vesting of stock
   options                                                (117)          -
  Deferred income taxes                                  1,185         875
  Changes in assets and liabilities, net of
   effects of acquisitions and divestitures             (1,981)     (1,540)
                                                    ----------  ----------
                                                        39,568      44,322
                                                    ----------  ----------
    Net Cash Provided by Operating Activities           35,512      39,678
                                                    ----------  ----------
Cash Flows from Investing Activities:
  Additions to property, plant and equipment
                                     - growth           (1,201)     (2,643)
                                     - maintenance     (31,180)    (29,757)
  Payments on landfill operating lease contracts        (2,250)     (4,538)
  Proceeds from divestiture                              7,533           -
  Proceeds from sale of equipment                          555       2,497
                                                    ----------  ----------
    Net Cash Used In Investing Activities              (26,543)    (34,441)
                                                    ----------  ----------
Cash Flows from Financing Activities:
  Proceeds from long-term borrowings                    76,900     413,144
  Principal payments on long-term debt                 (84,236)   (405,344)
  Payment of financing costs                              (357)    (13,980)
  Proceeds from exercise of stock options                  160          85
  Excess tax benefit on the exercise of stock
   options                                                 117           -
                                                    ----------  ----------
    Net Cash Used in Financing Activities               (7,416)     (6,095)
                                                    ----------  ----------
Cash Provided by Discontinued Operations                   456       1,024
                                                    ----------  ----------
Net increase in cash and cash equivalents                2,009         166
Cash and cash equivalents, beginning of period           2,035       1,838
                                                    ----------  ----------
Cash and cash equivalents, end of period            $    4,044  $    2,004
                                                    ==========  ==========

Supplemental Disclosures:
Cash interest                                       $   26,225  $   17,512
Cash income taxes, net of refunds                   $      117  $      550






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

Note 1: Discontinued Operations

We completed the divestiture of our Great Northern Recycling Canadian operation in the third quarter of fiscal year 2010 for $400 in cash. In the fourth quarter of fiscal year 2010, we also completed the divestiture of our domestic brokerage operations for $1,350. We had previously accounted for these transactions as assets under contractual obligation. This resulted in a gain on disposal of discontinued operations (net of tax) amounting to $48 and $89 in the three and six months ended October 31, 2009, respectively.

Our contract for the FCR Recycling Cape May operation expired in the third quarter of fiscal year 2010. Accordingly, this operation has been treated as a discontinued operation. The operating results of these operations for the six months ended October 31, 2009 have been reclassified from continuing to discontinued operations in the accompanying consolidated financial statements. Revenues attributable to discontinued operations for the three and six months ended October 31, 2009 amounted to $639 and $1,283, respectively. Income from discontinued operations (net of tax) for the three and six months ended October 31, 2009 amounted to $97 and $226, respectively.

Note 2: Reclassification

We have made reclassifications in our Consolidated Statements of Operations to conform information for the three and six months ended October 31, 2009 to our current period presentation. The supplementary financial information included in this section has also been updated to reflect these changes.

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, adjusted for accretion, depletion of landfill operating lease obligations, severance and reorganization charges, goodwill impairment charge, environmental remediation charge as well as development project charges (Adjusted EBITDA) and 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 (Free Cash Flow), which are non-GAAP measures.

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. 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. 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 to Net Cash Provided by
 Operating Activities:

                              Three Months Ended       Six Months Ended
                            ----------------------  ----------------------
                            October 31, October 31, October 31, October 31,
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------

Net Cash Provided by
 Operating Activities       $   22,208  $   15,440  $   35,512  $   39,678
Changes in assets and
 liabilities, net of
 effects of acquisitions
 and divestitures               (1,742)      4,472       1,981       1,540
Stock-based compensation,
 net of excess tax benefit
 on exercise of options           (733)       (510)     (1,363)     (1,040)
Provision for income taxes,
 net of deferred taxes            (245)         87        (125)        144
Net interest expense plus
 amortization of
 premium/discount               14,164      14,652      28,448      24,520
Gain on Divestiture                  -           -       3,502           -
Gain on sale of equipment
 and other                        (109)        243        (102)        625
                            ----------  ----------  ----------  ----------
Adjusted EBITDA (2)         $   33,543  $   34,384  $   67,853  $   65,467
                            ==========  ==========  ==========  ==========



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

                              Three Months Ended       Six Months Ended
                            ----------------------  ----------------------
                            October 31, October 31, October 31, October 31,
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
Net Cash Provided by
 Operating Activities       $   22,208  $   15,440  $   35,512  $   39,678
Capital expenditures           (16,561)    (14,154)    (32,381)    (32,400)
Payments on landfill
 operating lease contracts      (1,461)     (3,211)     (2,250)     (4,538)
Proceeds from divestiture
 and sale of property and
 equipment                         247       1,914       8,088       2,497
                            ----------  ----------  ----------  ----------
Free Cash Flow              $    4,433  $      (11) $    8,969  $    5,237
                            ==========  ==========  ==========  ==========



              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 six months ended October 31, 2010 and 2009 are as follows:


                                         Three Months Ended October 31,
                                    --------------------------------------
                                                % of                % of
                                                Total               Total
                                       2010    Revenue     2009    Revenue
                                    --------- --------  --------- --------
Collection                          $  52,241     37.1% $  53,352     40.1%
Disposal                               30,893     21.9%    28,633     21.5%
Power/LFGTE                             6,273      4.4%     7,159      5.4%
Processing and recycling               14,662     10.4%    11,999      9.0%
                                    --------- --------  --------- --------
Solid waste operations                104,069     73.8%   101,143     76.0%
Major accounts                         10,139      7.2%     9,694      7.3%
FCR recycling                          26,801     19.0%    22,257     16.7%
                                    --------- --------  --------- --------
Total revenues                      $ 141,009    100.0% $ 133,094    100.0%
                                    ========= ========  ========= ========

                                          Six Months Ended October 31,
                                    --------------------------------------
                                                % of                % of
                                                Total               Total
                                       2010    Revenue     2009    Revenue
                                    --------- --------  --------- --------
Collection                          $ 104,916     37.4% $ 106,460     40.1%
Disposal                               60,273     21.4%    58,375     22.0%
Power/LFGTE                            11,986      4.3%    13,528      5.1%
Processing and recycling               29,462     10.5%    23,777      9.0%
                                    --------- --------  --------- --------
Solid waste operations                206,637     73.6%   202,140     76.2%
Major accounts                         20,541      7.3%    19,486      7.3%
FCR recycling                          53,672     19.1%    43,925     16.5%
                                    --------- --------  --------- --------
Total revenues                      $ 280,850    100.0% $ 265,551    100.0%
                                    ========= ========  ========= ========


Components of revenue growth for the three months ended October 31, 2010
compared to the three months ended October 31, 2009:

                                               % of    % of Solid    % of
                                             Related     Waste      Total
                                    Amount   Business  Operations  Company
                                    -------  --------  ----------  -------
Solid Waste Operations:
Collection                          $   277       0.5%        0.3%     0.2%
Disposal                               (256)     -0.9%       -0.3%    -0.2%
Power/LFGTE                            (177)     -2.5%       -0.2%    -0.1%
Processing and recycling                  4       0.0%        0.0%     0.0%
                                    -------            ----------  -------
Solid Waste Yield                      (152)                 -0.1%    -0.1%

Volume                                8,850                   8.7%     6.6%
Commodity price & volume               (117)                 -0.1%    -0.1%
Fuel surcharges                          84                   0.1%     0.1%
Acquisitions & divestitures          (1,591)                 -1.6%    -1.2%
Closed landfill                      (4,148)                 -4.1%    -3.1%
                                    -------            ----------  -------
Total Solid Waste                     2,926                   2.9%     2.2%
                                    -------            ==========  -------

                                    -------                        -------
Major Accounts                          445                            0.3%
                                    -------                        -------

                                                        % of FCR
FCR Operations:                                        Operations
                                                       ----------
Commodity price                       3,250                  14.6%     2.4%
Commodity volume                      1,294                   5.8%     1.0%
                                    -------            ----------  -------
Total FCR                             4,544                  20.4%     3.4%
                                    -------            ==========  -------

                                    -------                        -------
Total Company                       $ 7,915                            5.9%
                                    =======                        =======



Solid Waste Internalization Rates by Region:


                                 Three Months Ended     Six Months Ended
                                     October 31,           October 31,
                                --------------------  --------------------
                                   2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
Eastern region                       54.9%      56.6%      52.8%      55.5%
Central region                       81.8%      80.2%      82.0%      81.6%
Western region                       65.4%      64.6%      66.9%      63.6%
Solid waste internalization          66.1%      65.6%      65.1%      65.7%




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


GreenFiber Financial Statistics - as reported (1):


                                    Three Months Ended   Six Months Ended
                                        October 31,         October 31,
                                    ------------------  ------------------
                                      2010      2009      2010      2009
                                    --------  --------  --------  --------
Revenues                            $ 20,581  $ 28,897  $ 38,018  $ 50,016
Net (loss) income                     (1,012)     (318)   (5,276)   (2,756)
Cash flow from operations             (3,414)    3,095    (3,038)    5,991
Net working capital changes           (4,856)      566    (2,692)    2,628
Adjusted EBITDA                     $  1,442  $  2,529  $   (346) $  3,363

As a percentage of revenue:

Net loss                                -4.9%     -1.1%    -13.9%     -5.5%
Adjusted EBITDA                          7.0%      8.8%     -0.9%      6.7%

(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       Six Months
                                        Ended October 31, Ended October 31,
                                        ----------------- -----------------
                                          2010     2009     2010     2009
                                        -------- -------- -------- --------
Growth Capital Expenditures:
  Landfill Development                  $      - $    801 $    227 $  1,026
  Other                                      319    1,001      974    1,617
                                        -------- -------- -------- --------
Total Growth Capital Expenditures            319    1,802    1,201    2,643
                                        -------- -------- -------- --------

Maintenance Capital Expenditures:

  Vehicles, Machinery / Equipment and
   Containers                              4,283    3,035   11,576    8,434
  Landfill Construction & Equipment       10,778    7,886   17,830   18,951
  Facilities                               1,071    1,170    1,316    1,899
  Other                                      110      261      458      473
                                        -------- -------- -------- --------
Total Maintenance Capital Expenditures    16,242   12,352   31,180   29,757
                                        -------- -------- -------- --------

Total Capital Expenditures              $ 16,561 $ 14,154 $ 32,381 $ 32,400
                                        ======== ======== ======== ========

(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.


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