Casella Waste Systems releases Q3 2016 results

Casella Waste Systems releases Q3 2016 results
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Casella Waste Systems Inc., headquartered in Rutland, Vermont, has reported its financial results for the three-month period ended Sept. 30, 2016. The company says it expects revenue results to be toward the upper-end of its previously announced guidance range.

Casella also increased its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and normalized free cash flow guidance ranges for the fiscal year ending Dec. 31, 2016.

Highlights for the quarter include:

• revenue of $151.1 million, up $4.9 million, or 3.4 percent, from the same period in 2015;
• net income of $7.5 million, up $5.3 million, or 233.6 percent, from the same period in 2015;
• adjusted EBITDA of $37.1 million, up $4 million, or 12.2 percent, from the same period in 2015;
• adjusted operating income of $17.4 million, up $4.2 million, or 24 percent, from the same period in 2015; and
• overall solid waste pricing increased 3 percent, mainly driven by strong collection pricing that increased 3.7 percent and robust landfill pricing the grew 2.7 percent.

“We had another great quarter as we continued to execute well against our key management strategies,” says John W. Casella, chairman and CEO of Casella Waste Systems. “Our team is focused on creating shareholder value through improving returns in our disposal line of business, driving higher profitability in our collection line of business, offsetting risk and improving returns in our recycling business and reducing leverage through strict capital discipline and debt repayment.”

He continues, “The progress that has been made on our strategies is clearly driving positive results in the quarter, with operating income up $4.7 million, operating income margins up 280 bps (basis points) and consolidated net leverage down. We have improved operating income every quarter for the last two years, with operating income for the 12 months ended Sept. 30, 2016, up $27.5 million (or up 226.7 percent) over the 12 months ended Dec. 31, 2014, and total debt down $21.7 million since Dec. 31, 2014.”

Casella says disciplined pricing programs were a key factor behind the company’s improved performance. “We continued to advance positive pricing in our residential and commercial collection lines of business, with pricing up 4.2 percent in the third quarter. Our disposal pricing programs advanced further in the third quarter, with our landfill pricing up 2.7 percent as we improved pricing in key markets. Further, our efforts to reduce operating costs and drive efficiencies continued to gain traction in the third quarter, with cost of operations as a percentage of revenues down 280 bps year-over-year.”

Oct. 17, 2016, Casella Waste Systems refinanced its asset based lending revolving credit facility that is due in 2020 as well as its 7.75 percent senior subordinated notes due 2019 with a new $160 million revolving credit facility and a $350 million term loan B, Casella says. “We believe that this transaction positions us well to continue to execute against our strategic plan by reducing our cash interest costs by approximately $11.0 million per year, improving our financial flexibility, and moving out debt maturities,” he adds.

For the quarter, revenue was $151.1 million, up $4.9 million, or 3.4 percent, from the same period in 2015, with revenue growth mainly driven by robust collection, disposal and recycling commodity pricing, the roll-over impact from the acquisition of three transfer stations in the second quarter and higher volumes in Casella Waste Systems’ organics and customer solutions lines of business, partially offset by lower solid waste volumes, primarily associated with lower margin transportation volumes, the company says.

Net income attributable to common stockholders was $7.5 million, or 18 cents per diluted common share, for the quarter compared with net income attributable to common stockholders of $2.3 million, or 6 cents per diluted common share for the same period in 2015, Casella Waste Systems reports. The current quarter included a $0.2 million loss on debt extinguishment related to the repurchase and permanent retirement of $5 million of 7.75 percent senior subordinated notes due 2019, while the same quarter in 2015 included a $0.3 million loss on debt extinguishment related to the repurchase and permanent retirement of $9.7 million of 7.75 percent senior subordinated notes due 2019.

Operating income was $17.4 million for the quarter, up $4.7 million from the same period in 2015, whereas adjusted operating income was $17.4 million for the quarter, up $4.2 million from the same period in 2015. Adjusted EBITDA was $37.1 million for the quarter, up $4 million from the same period in 2015, with growth mainly driven by improved performance in the company’s collection, disposal and recycling businesses, Casella Waste Systems reports.

Net cash provided by operating activities was $20.5 million in the quarter, up $3.8 million from the same period in 2015. Free cash flow was $5.1 million in the quarter compared with $0.8 million for the same period in 2015. Normalized free cash flow was $5.1 million in the quarter as compared with $1.6 million for the same period in 2015. The current quarter did not include any adjustments differentiating free cash flow from normalized free cash flow, while the same period in 2015 included a $0.9 million adjustment for the cash outlays associated with capping at the company’s Worcester landfill.

Highlights for the nine months ended Sept. 30, 2016, include:

• year-to-date revenue of $421.2 million, up $14.8 million, or 3.6 percent, from the same period in 2015;
• year-to-date net income of $5.1 million, up $9.9 million from the same period in 2015;
• adjusted year-to-date EBITDA of $91.2 million, up $12.9 million, or 16.5 percent, from the same period in 2015; and
• year-to-date adjusted operating income of $34.9 million, up $12.6 million, or 56.4 percent, from the same period in 2015.

Given the Casella Waste Systems’ pricing and operational performance during the third quarter and increased visibility into the remainder of the year, the company says it has increased its adjusted EBITDA and normalized free cash flow guidance ranges for the year ending Dec. 31, 2016, by estimating results in the following ranges:

• adjusted EBITDA between $116 million and $118 million (increased from a range of $115 million to $117 million as announced Sept. 26, 2016); and
• normalized free cash flow between $22 million and $25 million (increased from a range of $20 million to $24 million).

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Source: Recycling Today
Casella Waste Systems releases Q3 2016 results
<![CDATA[Casella Waste Systems Inc., headquartered in Rutland, Vermont, has reported its financial results for the three-month period ended Sept. 30, 2016. The company says it expects revenue results to be toward the upper-end of its previously announced guidance range. Casella also increased its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and normalized free cash flow guidance ranges for the fiscal year ending Dec. 31, 2016. Highlights for the quarter include: revenue of $151.1 million, up $4.9 million, or 3.4 percent, from the same period in 2015; net income of $7.5 million, up $5.3 million, or 233.6 percent, from the same period in 2015; adjusted EBITDA of $37.1 million, up $4 million, or 12.2 percent, from the same period in 2015;adjusted operating income of $17.4 million, up $4.2 million, or 24 percent, from the same period in 2015; andoverall solid waste pricing increased 3 percent, mainly driven by strong collection pricing that increased 3.7 percent and robust landfill pricing the grew 2.7 percent. “We had another great quarter as we continued to execute well against our key management strategies,” says John W. Casella, chairman and CEO of Casella Waste Systems. “Our team is focused on creating shareholder value through…