Casella Waste Systems (CWST) Q4 1999 earnings summary

Executive summary

• FY1999 met or exceeded stated goals, with revenue, operating income and net income reaching period highs; acquisition-led expansion and operating improvements supported growth.

• The growth strategy continued to focus on consolidating the fragmented Northeast waste market; FY1999 acquisitions added $54.5 million in annualized revenue.

Financial highlights

• FY1999 revenue was $173.4 million, up 23.7% YoY; $23.6 million of the increase came from acquisitions and $9.6 million from internal volume and price growth, net of lower recycled commodity processing.

• Operating income rose to $21.2 million from $11.3 million; net income reached $9.1 million versus $1.9 million in FY1998.

• Adjusted EBITDA was $46.0 million versus $32.7 million; adjusted EBITDA margin was 26.5%, up from 23.4%.

• FY1999 basic and diluted EPS were $0.62 and $0.58, respectively, versus losses of $0.42 per share on both bases in FY1998.

Outlook and guidance

• Growth priorities included expanding integrated collection-to-disposal services, building market leadership, applying operational discipline and seeking predictable performance; no numerical forecast was specified.

• The revised KTI merger was expected to broaden growth opportunities and capabilities; each KTI share was to be exchanged for 0.59 shares, subject to closing and successful integration.

• A new five-year revolving credit facility of $350 million to $400 million was being sought in connection with the KTI merger; syndication was incomplete as of July 15, 1999.