Date: July 6, 2010
Source: Casella Waste Systems, Inc.
Casella Waste Systems, Inc. Divests Cape Cod and Rochester Massachusetts Transfer and Hauling Assets for $7.8 Million
Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management company, announced that it has sold its Rochester, Massachusetts construction and demolition debris transfer station; its Sandwich, Massachusetts transfer station; and its Cape Cod hauling assets and related equipment (collectively, the "Cape Cod assets") to United Waste Management, Inc. for approximately $7.8 million in proceeds.
"Our goal is to divest $25.0 million of non-contributing, non-strategic assets to help de-lever the balance sheet by the end of the calendar year," said John W. Casella, chairman and chief executive officer of Casella Waste Systems. "With the sale of the Cape Cod assets, we have achieved approximately $11.1 million of total divestiture proceeds thus far -- significant progress towards our objective."
"The Cape Cod assets were low margin businesses, and we believe that we had limited opportunity to materially improve asset performance in these markets," Casella said. "In addition, these assets are not critical to the municipal solid waste conversion and ramp-up of the Southbridge Landfill. Moving forward, we will focus our efforts in central Massachusetts, with the goal of improving vertical integration into the Southbridge Landfill."
The transaction closed on July 1, 2010, the company said.
The Cape Cod assets generated revenues of $9.0 million for the twelve months ended April 30, 2010 and $9.2 million for the twelve months ended April 30, 2009. Operating income net depreciation and amortization from these assets was $1.1 million for the twelve months ended April 30, 2010 and $0.2 million for the twelve months ended April 30, 2009.
The guidance ranges for fiscal year 2011 as previously announced on June 7, 2010 remain unchanged with this divestiture.
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc. is an integrated solid waste and resource management company headquartered in Rutland, Vermont. For further information, investors should contact Ned Coletta, director of finance and investor relations at (802) 772-2239; media should contact Joseph Fusco, vice president at (802) 772-2247; or visit the company's website at www.casella.com.
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 the Company "believes," "expects," "anticipates," "plans," "may," "will," "would," "intends," "estimates" 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 or expectations disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of our operations, involve a number of risks and uncertainties, including that we may be unable to complete future divestitures of assets at projected prices, if at all, which could affect our ability to repay debt and which could therefore cause actual results to differ materially from those described in our forward-looking statements. 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 Annual Report on 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.
Director of Finance and Investor Relations