Casella Waste Systems, a regional solid waste, recycling and resource management services company, has reported revenue growth of 9.3 per cent over the same quarter in 2012.
The company has also revised its guidance for its fiscal year 2014.
Highlights for the first quarter of 2013 included:
-- Adjusted EBITDA* was $28.7 million for the quarter, up $4.4 million from the same quarter last year.
-- Adjusted Operating Income* was $9.9 million for the quarter, up $3.5 million from the same quarter last year.
-- Income from continuing operations before income taxes and discontinued operations was $0.2 million for the quarter.
-- Revenue and Adjusted EBITDA guidance revised upward for fiscal year 2014.
For the quarter ended July 31, 2013, revenues were $128.6 million, up $10.9 million, or 9.3 percent, from the same quarter last year, with revenue growth mainly driven by higher volumes across all lines-of business, acquisition activity, and higher solid waste collection pricing. Overall solid waste pricing growth of 0.5 percent was primarily driven by residential and commercial pricing growth of 1.9 percent as a percentage of segment revenues.
The company's net loss attributable to common stockholders was ($0.2) million, or ($0.00) per share for the quarter, compared to net loss of ($8.4) million, or ($0.31) per share for the same quarter last year.
Operating income was $9.7 million for the quarter, up $3.9 million from the same quarter last year. The current quarter includes a $0.1 million severance and reorganization charge related to general realignment activities and by comparison, the quarter ended July 31, 2012 included $0.6 million of expenses related to divestiture and financing costs. Excluding these charges, Adjusted Operating Income* in the current quarter was $9.9 million, up $3.5 million from same quarter last year.
Adjusted EBITDA was $28.7 million for the quarter, up from $24.3 million in the same quarter last year.
"We had a solid first quarter, with results primarily driven by continued execution in key areas of management focus - sourcing incremental landfill volumes; improving collection route profitability; and completing the multi-year Eastern region strategy," said John W. Casella, chairman and CEO of Casella Waste Systems.
"Our success in the quarter was led by solid performance at our landfills, with tonnages up 175,000 tons year-over-year, excluding the planned declines at the Worcester landfill closure project," Casella said. "We believe that this improvement is directly attributable to our actions to improve our special waste sales efforts, several new additions to our landfill team, and a tightening disposal market in select markets. We continue to experience these same positive landfill tonnage trends into August."
"During the quarter, our recycling team did an excellent job leveraging their quality control processes and infrastructure to drive higher volumes and tip fees at our MRFs, offsetting much of the decline in commodity pricing" Casella said. "We do not expect commodity pricing to rebound in the near term; however we do believe that our differentiated platform will continue to drive higher volumes, offsetting the majority of pricing pressure."
Fiscal 2014 Outlook
"After a good first quarter and better visibility into the remainder of our fiscal year, we have revised our fiscal year 2014 guidance for revenues and Adjusted EBITDA," Casella said. "This upward revision is based on a conservative and consistent framework for all assumptions outside of our direct control, such as new landfill volumes or economic growth. We have chosen to leave free cash flow guidance in place this early in the fiscal year."
The company updated guidance for its fiscal year 2014, which began May 1, 2013, by estimating results in the following ranges:
-- Revenues between $470.0 million and $480.0 million (increased from a range of $465.0 million to $475.0 million);
-- Adjusted EBITDA* between $92.0 million and $96.0 million (increased from a range of $91.0 million and $95.0 million).
*Non-GAAP Financial Measures