CASELLA WASTE SYSTEMS INC - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2003

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-23211

CASELLA WASTE SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

 
  Delaware

  03-0338873

  (State or other jurisdiction of
incorporation or organization)

  (I.R.S. Employer Identification No.)

  25 Greens Hill Lane,
  Rutland, Vermont

  05701

  (Address of principal executive offices)

  (Zip Code)

Registrant’s telephone number, including area code: (802) 775-0325

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 126-2 of the Exchange Act) Yes ý No o

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of March 3, 2003:

Class A Common Stock	22,769,484
Class B Common Stock	988,200

PART I.		FINANCIAL INFORMATION
ITEM 1.		FINANCIAL STATEMENTS

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

	April 30,		January 31,
ASSETS	2002		2003
			(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	4,298	$	18,922
Restricted cash	10,286		10,609
Accounts receivable - trade, net of allowance for doubtful accounts of $786 and $1,032	43,130		46,185
Notes receivable - officers/employees	1,105		1,141
Prepaid expenses	3,156		5,770
Inventory	2,410		1,940
Investments	62		22
Deferred income taxes	8,767		6,637
Assets held for sale	2,447		2,510
Other current assets	2,267		1,616
Total current assets	77,928		95,352

Property, plant and equipment, net of accumulated depreciation and amortization of $163,521 and $191,084	287,115		284,567
Intangible assets, net	223,379		161,415
Deferred income taxes	648		—
Investments in unconsolidated entities	26,865		29,222
Net assets under contractual obligation	—		3,814
Other non-current assets	5,934		13,559
	543,941		492,577
	$	621,869	$	587,929

The accompanying notes are an integral part of these consolidated financial statements

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

	April 30,			January 31,
LIABILITIES AND STOCKHOLDERS' EQUITY	2002			2003
				(Unaudited)
CURRENT LIABILITIES:
Current maturities of long-term debt	$	6,436		$	5,519
Current maturities of capital lease obligations	1,816			1,409
Accounts payable	23,690			26,686
Accrued payroll and related expenses	5,813			6,182
Accrued interest	1,481			539
Accrued income taxes	3,676			3,788
Accrued closure and post-closure costs, current portion	6,465			1,654
Liabilities of operations held for sale	828			1,136
Other accrued liabilities	23,706			14,300
Total current liabilities	73,911			61,213

Long-term debt, less current maturities	277,545			301,730
Capital lease obligations, less current maturities	3,051			2,163
Accrued closure and post-closure costs, less current maturities	18,307			21,766
Minority interest	523			—
Deferred income taxes	—			4,369
Other long-term liabilities	11,006			10,695

COMMITMENTS AND CONTINGENCIES

Series A redeemable, convertible preferred stock, 55,750 shares authorized, issued and outstanding as of April 30, 2002 and January 31, 2003, liquidation preference of $1,000 per share plus accrued but unpaid dividends	60,730			63,036



STOCKHOLDERS' EQUITY:
Class A common stock -
Authorized- 100,000,000 shares, $0.01 par value issued and outstanding - 22,667,000 and 22,739,000 shares as of April 30, 2002 and January 31, 2003, respectively	227			227
Class B common stock -
Authorized - 1,000,000 shares, $0.01 par value 10 votes per share, issued and outstanding - 988,000 shares	10			10
Accumulated other comprehensive income (loss)	(4,250		)	146
Additional paid-in capital	272,697			270,838
Accumulated deficit	(91,888		)	(148,264		)
Total stockholders' equity	176,796			122,957

	$	621,869		$	587,929

The accompanying notes are an integral part of these consolidated financial statements

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands)

	Three Months Ended				Nine Months Ended
	January 31,				January 31,
	2002		2003		2002		2003

Revenues	$	101,189	$	95,749	$	323,315	$	326,146

Operating expenses:
Cost of operations	66,142		62,009		211,549		214,434
General and administration	13,994		13,554		41,188

Delaware	03-0338873
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

25 Greens Hill Lane, Rutland, Vermont		05701
(Address of principal executive offices)		(Zip Code)