Casella Waste Systems is forecasting that, for the
fiscal quarter ended October 31, revenues will be about $138 million, and
earnings before interest, taxes, depreciation and amortization will be about
$27 million.
The company expects EBITDA to be about $112 million.
Estimates exclude restructuring charges for its cellulose insulation joint
venture business with Louisiana Pacific; a one-time gain due to the planned
sale of stock warrants in Bangor Hydro; and a one-time benefit from the
settlement of a lawsuit.
"We are very disappointed that the performance
of our business compels us to adjust our expectations," John Casella,
president and CEO of Casella Waste, said. "While internal growth in our
core businesses remains strong, clearly we have a great deal of work yet to do
to bring the balance of the business to a level of consistent, reliable
performance."
The quarter and fiscal year adjustments to earnings
are due primarily to the following:
The company reduced and will continue to reduce
volumes to its SERF landfill due to the delayed timing of judicial decisions
reaffirming the company's permits to construct additional capacity at this
facility.
The company experienced sizeable, rapid growth in
eastern Massachusetts, its newest market entry. The integration and turnaround,
however, is taking longer than expected.
The company made a decision to expand its waste tire
business based on the belief that over the long-term it offered the potential
to deliver margins consistent with the company's core business.
The company's cellulose insulation business generated
significant losses during the quarter prior to entering into a joint venture
with L-P.
The company incurred unanticipated legal fees and
settlement costs on outstanding litigation inherited from its acquisition of
KTI.
Non-core energy and waste processing businesses
continued to perform below the company's core business margin objectives during
the quarter.
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