Casella reports third quarter loss
Staff Report | March 04,2013
Casella Waste Systems on Monday reported a third quarter loss of $11.4 million, or 29 cents per share, compared to a loss of $24.6 million, or 92 cents per share for the same quarter last year.
For the quarter ended Jan. 31, revenues were $115 million, up $400,000 from the same quarter a year ago. The company said revenue growth was mainly driven by higher solid waste collection pricing and acquisitions.
The quarter included a $1.6 million severance and reorganization charge related to the sale of Maine Energy Recovery Company facility and other realignment activities, $800,000 in expenses related to the divestiture of Maine Energy and the acquisition of Blow Bros., and a $5.9 million loss on the extinguishment of debt related to the repurchase of the company's second lien notes in November.
"We continued to face operating challenges throughout our business in the third quarter," said John Casella, chairman and CEO of Casella Waste Systems. "Landfill volumes at our western New York landfills, volumes in our collection line-of-business, and the ramp-up of several projects all underperformed our expectations in the quarter and, as such, we have lowered our guidance for the current fiscal year."
Casella said the company accomplished several important goals in the quarter including the sale of the Maine waste-to-energy plant, the acquisition of BBI in Maine and New Hampshire and the issuance of a permit to expand its Southbridge landfill in Massachusetts.
Due primarily to the negative impact of lower than expected landfill volumes, softness in the collection line-of-business, and project delays, Casella adjusted its fiscal year guidance with revenues between $462 million and $472 million and adjusted EBITDA between $87 million and $90 million.