<B>Casella Revises Outlook</b>

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.

Get curated news on YOUR industry.

Enter your email to receive our newsletters.

November 2000
Explore the November 2000 Issue

Check out more from this issue and find your next story to read.