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 July 31, 2003

OR

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		05701s
(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 August 29, 2003:

	Class A Common Stock	22,833,982
	Class B Common Stock	988,200

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

	April 30, 2003		July 31, 2003
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	15,652	$	5,737
Restricted cash	10,839		11,606
Accounts receivable - trade, net of allowance for doubtful accounts of $895 and $1,048	45,649		50,889
Notes receivable - officers/employees	1,105		1,105
Prepaid expenses	5,906		5,583
Inventory	1,740		1,581
Deferred income taxes	4,275		4,110
Other current assets	1,111		1,078
Total current assets	86,277		81,689

Property, plant and equipment, net of accumulated depreciation and amortization of $201,681 and $224,984	302,328		305,084
Goodwill, net	159,682		162,938
Other intangible assets, net	3,014		3,223
Investments in unconsolidated entities	34,740		35,048
Net assets under contractual obligation	3,844		5,948
Other non-current assets	12,756		13,269
	516,364		525,510

	$	602,641	$	607,199

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

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

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

	April 30, 2003			July 31, 2003
LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Current maturities of long-term debt	$	4,534		$	4,441
Current maturities of capital lease obligations	1,287			1,028
Accounts payable	33,743			34,674
Accrued payroll and related expenses	7,383			5,991
Accrued interest	5,375			8,347
Accrued income taxes	4,526			3,832
Accrued closure and post-closure costs, current portion	2,962			1,750
Other accrued liabilities	15,662			16,288

Total current liabilities	75,472			76,351

Long-term debt, less current maturities	302,389			302,037
Capital lease obligations, less current maturities	1,969			1,812
Accrued closure and post-closure costs, less current maturities	22,987			17,727
Deferred income taxes	5,473			8,514
Other long-term liabilities	11,375			11,344

Commitments and contingencies

Series A redeemable, convertible preferred stock, 55,750 shares authorized, issued and outstanding as of April 30, 2003 and July 31, 2003, liquidation preference of $1,000 per share plus accrued but unpaid dividends	63,824			64,622

STOCKHOLDERS’ EQUITY:
Class A common stock - Authorized - 100,000,000 shares, $0.01 par value issued and outstanding - 22,769,000 and 22,797,000 shares as of April 30, 2003 and July 31, 2003, respectively	228			228
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	542			733
Additional paid-in capital	270,068			269,323
Accumulated deficit	(151,696		)	(145,502		)
Total stockholders’ equity	119,152			124,792

	$	602,641		$	607,199

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 July 31,
	2002			2003

Revenues	$	116,031		$	113,888

Operating expenses:
Cost of operations	77,792			74,278
General and administration	14,711			14,473
Depreciation and amortization	12,061			14,770
	104,564			103,521
Operating income	11,467			10,367
Other (income)/expense, net:
Interest income	(79		)	(52		)
Interest expense	7,155			6,275
Income from equity method investments	(201		)	(35		)
Minority interest	(152		)	—
Other (income)/expense, net	28