Next week, Fuji will unveil their new Track Elite bike, a carbon fiber board racer that uses something not typically found in the velodrome – a tapered headtube. Per the teaser above, they claim it, along with internal frame and fork ribbing, makes for a monstrously stiff bike. Dropouts are kept metal to hold up to frequent wheel changes and adjustments. The frame was developed and tested in the wind tunnel, too, just to make sure all that stiffness didn’t just push more air around. Look for full coverage next week.
Justin Long(Photo: Dimitrios Kambouris/Getty Images) Related Shows Do You Feel Anger? View Comments Off-Broadway’s Vineyard Theatre has announced Justin Long as the latest cast member to appear in the New York premiere Do You Feel Anger? by Mara Nelson-Greenberg. Margot Bordelon will direct the previously announced production, set to begin performances on March 13 with an opening set for March 31.Long is an alum of Broadway’s Seminar, with additional stage credits including Picasso at the Lapin Agile and The Hot L Baltimore. His screen credits include Galaxy Quest and Jeepers Creepers with an upcoming turn in the BBC/Netflix drama Giri/Haji.Long joins a previously announced cast that includes Tiffany Villarin, Tom Aulino, Ugo Chukwu, Megan Hill and Greg Keller.Do You Feel Anger? follows Sofia (Villarin), who is hired as an empathy coach at a debt collection agency—and clearly, she has her work cut out for her. These employees can barely identify what an emotion is, much less practice deep, radical compassion for others. As they painstakingly stumble towards enlightenment, someone keeps mugging Eva (Hill) in the kitchen, and the unspoken dynamics of their seemingly blithe workplace culture become increasingly unsettling.The design team will include scenic designer Laura Jellinek, costume designer Emilio Sosa, lighting designer Marie Yokoyama and sound designer Palmer Hefferan. The production will play a limited run through April 28. Show Closed This production ended its run on April 28, 2019
999 46,338 Interest expense, net9,204 2,581 Adjusted EBITDA between $124 million and $128 million (as compared to $120.6 million in fiscal year 2016); and 31,866 Net cash provided by operating activities was $80.4 million in the fiscal year, up $9.9 million, or 14.1%, from fiscal year 2015. Impairment of investments— In the Other segment, overall revenue growth of between 2.0% and 3.0%, with growth in the industrial segment for Customer Solutions group offsetting lower volumes in the Organics group. Fiscal Year EndedDecember 31, — (3,606) (0.7)% No new acquisitions are included. 1,711 — 1.1%Processing1,589 (0.1)% Proceeds from divestiture transactions— (9) 13,528 — Three Months EndedDecember 31, 63,935 2016 2.1%Volume270 999 1,364 (5,385)Proceeds from sale of property and equipment293 —% — 133 General and administration19,908 27.3% Supplemental Disclosure of Cash Flow Information: — Depreciation and amortization15,425 38,652 38 2016 546 — (21,616)Net increase in cash and cash equivalents232 $633,669 355,229 (0.6)%Organics700 133 1,491 Current maturities of long-term debt and capital leases % of RecyclingOperations 2016 877 $4,686 8.5%Total revenues$143,795 1.0% 9,515 — Cash interest$42,712 Goodwill Environmental remediation charge900 44,921 Landfill development8,019 9,994 2016 $60,751 Loss on debt extinguishment13,011 Additions to property, plant and equipment(54,200) 2016 — 12,333 $(0.17) Distribution to noncontrolling interest holder— 75,356 100.0% 9,252 2,099 Impairment of investments— $633,669 Excess tax benefit on the vesting of share based awards— Depreciation and amortization61,856 $18,620 (5,517)Loss on debt extinguishment13,747 Three Months EndedDecember 31, — Loss before income taxes(11,824) Total current assets (6,364) Long-term debt and capital leases, less current maturities $3,264 $140,024 8.5%Total revenues$565,030 —% CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) 40,090 Gain on sale of property and equipment(574) (1) 2.0% 1,188 $35,232 Depletion of landfill operating lease obligations2,165 302 (414) $(1,620) 26.6% Net loss(11,974) Severance and reorganization costs— 3.2% $1,448 Accounts receivable – trade, net (1,090) 1,940 32,743 62,704 1,940 514,634 1,940 ASSETS $70,507 (49,995)Payments on landfill operating lease contracts(2,438) —%Solid Waste Volume(3,671) $(0.28) Proceeds from sale of property and equipment1,362 $(6,849) (9,025)Payments of debt extinguishment costs(7,219) 78,588 11,937 CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP MEASURES (Unaudited) (In thousands, except for per share data)Following is a reconciliation of Adjusted EBITDA and Adjusted Operating Income to Net loss: (49,995)Payments on landfill operating lease contracts(7,249) 407,694 11,882 119,899 1,781 2,099 — (2,429) Interest accretion on landfill and environmental remediation liabilities3,606 Normalized Free Cash Flow was $27.1 million for the fiscal year, up $8.5 million, or 45.6%, from fiscal year 2015.”We had another strong quarter as we continued to execute well against our key management strategies of increasing landfill returns, improving collection profitability, creating incremental value through resource solutions, and reducing leverage through strict capital discipline and debt repayment,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. “The progress we have made on our strategies clearly drove positive financial results in fiscal year 2016, with Adjusted Operating Income up 50.3%, Adjusted Operating Income margins up 250 basis points, Normalized Free Cash Flow up 45.6%, and total shareholder returns of 107.5% during 2016.”“From an operating standpoint, our disciplined solid waste pricing programs continued to outpace internal inflation with overall solid waste pricing up 2.6% in the quarter, driven by strong residential and commercial pricing, which was up 3.6%, and landfill pricing up 2.7%,” Casella said. “Further, our efforts to reduce operating costs and drive efficiencies continued to gain traction in the fourth quarter, with our cost of operations as a percentage of revenues down 100 bps year-over-year.”“As previously announced, on October 17, 2016, we refinanced our ABL revolver due 2020 and our 7.75% senior subordinated notes due 2019, with a new $160 million revolving credit facility and a $350 million term loan B,” Casella said. “We believe that this transaction positions us well to continue to execute against our strategic plan by reducing our cash interest costs by approximately $11.0 million per year, improving our financial flexibility, and moving out debt maturities.”“We have worked hard over the last two years to reshape our recycling sales model in the face of historically low recycling commodity markets with a goal of making a return on our invested capital in all commodity market cycles,” Casella said. “We have made great strides in accomplishing this goal through a combination of our Sustainability/Recycling Adjustment fee applied to hauling customers, floating rebates or tipping fees applied to recycling processing customers, and efforts to reduce operating costs at our materials processing facilities.”For the fourth quarter, revenues were $143.8 million, up $3.8 million, or 2.7%, from the same period in 2015, with revenue growth mainly driven by robust collection, disposal and recycling commodity pricing, the roll-over impact from the acquisition of three transfer stations in the second quarter, and higher volumes in the Company’s organics and customer solutions lines-of-business, partially offset by lower solid waste volumes, primarily associated with lower margin transportation volumes.Net loss attributable to common stockholders was $(12.0) million, or $(0.29) per diluted common share for the quarter, compared to net loss attributable to common stockholders of $(7.0) million, or $(0.17) per diluted common share for the same period in 2015. Adjusted net income attributable to common stockholders was $1.9 million, or $0.05 per diluted common share for the quarter, compared to adjusted net loss attributable to common stockholders of $(1.6) million, or $(0.04) per diluted common share for the same period in 2015.Operating income was $10.0 million for the quarter, up $5.3 million from the same period in 2015, whereas Adjusted Operating Income was $10.9 million for the quarter, up $2.7 million from the same period in 2015. Adjusted EBITDA was $29.4 million for the quarter, up $1.6 million, or 5.9%, from the same period in 2015, with growth mainly driven by improved performance in the Company’s collection, recycling, organics, and customer solutions lines-of-business.The fourth quarter of 2016 included a $0.9 million environmental remediation charge and a $13.0 million loss on debt extinguishment related to the early redemption, repurchase and retirement of the Company’s remaining 7.75% senior subordinated notes due 2019 (“2019 Notes”) and the repayment of the Company’s senior secured asset-based revolving credit and letter of credit facility due February 2020 (“ABL Facility”), while the same quarter in 2015 included $1.1 million of proxy contest costs, $0.3 million of severance and reorganization costs, a $1.9 million contract settlement charge, a $0.1 million non-cash charge related to divestiture transactions, a $1.8 million non-cash charge related to the impairment of investments, and a $0.1 million loss on debt extinguishment related to the repurchase and permanent retirement of $5.0 million of 2019 Notes.Net cash provided by operating activities was $24.4 million in the quarter, down $(5.6) million from the same period in 2015. Normalized Free Cash Flow was $12.2 million in the quarter, as compared to $8.7 million for the same period in 2015. The fourth quarter of 2016 included a $6.8 million adjustment for the interest payment associated with the redemption of the 2019 Notes, while the same period in 2015 included a $0.1 million adjustment for cash outlays associated with capping at the Company’s Worcester landfill.For the fiscal year, revenues were $565.0 million, up $18.5 million, or 3.4%, from fiscal year 2015, reflecting the impact of robust collection, disposal and recycling commodity pricing, the roll-over impact from the acquisition of three transfer stations in the second quarter, and higher volumes in the Company’s collection, organics and customer solutions lines-of-business, partially offset by lower solid waste volumes and lower energy pricing.Net loss attributable to common stockholders was $(6.8) million, or $(0.17) per diluted common share for the fiscal year, compared to net loss attributable to common stockholders of $(13.0) million, or $(0.32) per diluted common share for fiscal year 2015. Adjusted net income attributable to common stockholders was $7.8 million, or $0.19 per diluted common share for the fiscal year, compared to adjusted net loss attributable to common stockholders of $(11.2) million, or $(0.28) per diluted common share for fiscal year 2015.Operating income was $44.9 million for the fiscal year, up $13.1 million from fiscal year 2015, whereas Adjusted Operating Income was $45.8 million for the fiscal year, up $15.4 million from fiscal year 2015. Adjusted EBITDA was $120.6 million for the fiscal year, up $14.5 million, or 13.7%, from fiscal year 2015.Net cash provided by operating activities was $80.4 million in the fiscal year, up $9.9 million from fiscal year 2015. Normalized Free Cash Flow was $27.1 million in the fiscal year, as compared to $18.6 million for fiscal year 2015.2017 Outlook“Our fiscal year 2017 budget reflects continued execution of our key strategies with the goal of driving additional shareholder value,” Casella said. The Company provided guidance for its next fiscal year ending December 31, 2017 by estimating results in the following ranges: Revenues between $577 million and $587 million (as compared to $565.0 million in fiscal year 2016); 2,251 (1,495)Net cash used in financing activities(17,238) % of TotalRevenuesCollection$62,524 40,642 Other non-current assets — 43.4%Disposal39,161 Adjusted diluted earnings per common share$0.05 6,770 Cash income taxes, net of refunds$274 (5,517) CURRENT LIABILITIES: 2016 2.3%Total Company$3,771 19.8% 100.0% % of TotalRevenues Vehicles, machinery, equipment and containers5,832 Environmental remediation charge900 (18,957) $29,977 0.2%Total Recycling3,164 44,997 Property, plant and equipment, net 61,196 (1,090) 505,985 (9,428)Interest accretion on landfill and environmental remediation liabilities(918) 2016 Three Months EndedDecember 31, 60,167 100.0% 2,409 $(6,858) % of TotalRevenuesCollection$249,640 Net cash provided by operating activities80,434 2015Net loss attributable to common stockholders$(11,974) (16,330) 715 39,134 — 2015 133,798 18,828 10.5% $(0.04) 62,704 — (0.1)%Acquisitions, net divestitures279 $20,347 900 Non-current assets acquired through long-term obligations$2,299 $20,228 999 (131)Divestiture transactions— 79 Total Replacement Capital Expenditures15,683 51 (5,517)Contract settlement charge— 48,827 105,188 7.1% 41,233 302 Changes in assets and liabilities, net of effects of acquisitions and divestitures(9,395) Revenues were $143.8 million for the quarter, up $3.8 million, or 2.7%, from the same period in 2015. Revenues were $565.0 million for the fiscal year, up $18.5 million, or 3.4%, from fiscal year 2015. 96,390 1.9% Distribution to noncontrolling interest holder— 100.0% 13,439 402,252 (7,020) — 398,466 Adjusted Net Income (Loss) Attributable to Common Stockholders$1,937 $54,200 Loss on debt extinguishment13,011 Environmental remediation charge900 $(7,019) 76,668 — 227 0.7% $565,030 Principal payments on long-term debt(608,198) (370,996)Payments of debt issuance costs(8,146) 715 62.9% 546 3,977 185 15,100 35 2015Net loss$(11,974) 3,449 (146)Proceeds from the exercise of share based awards128 107 Cash and cash equivalents, beginning of period2,312 72.6% Cash and cash equivalents, end of period$2,544 7.4% Loss on debt extinguishment13,011 4,702 Adjusted net income attributable to common stockholders* was $1.9 million for the quarter, up $3.6 million from the same period in 2015. Adjusted net income attributable to common stockholders was $7.8 million for the fiscal year, up $19.0 million from fiscal year 2015. 6,876 Other expense (income): Supplemental Disclosure of Non-Cash Investing and Financing Activities: 2,184 Capital expenditures of between $55 million and $59 million, and payments on operating leases of roughly $7 million.The Company does not provide reconciling information of non-GAAP financial measures on a forward-looking basis because such information is not available without an unreasonable effort. The Company believes that such information is not significant to an understanding of its non-GAAP financial measures for forward-looking periods because its methodology for calculating such non-GAAP financial measures is based on sensitivity analysis compared to budget at the business unit level rather than on differences from Generally Accepted Accounting Principles in the United States (“GAAP”) financial measures.Conference call to discuss quarter and fiscal year resultsThe Company will host a conference call to discuss these results on Thursday, March 2, 2017 at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should dial (877) 838-4153 or for international participants (720) 545-0037 at least 10 minutes before start time. The call will also be webcast; to listen, participants should visit Casella Waste Systems’ website at http://ir.casella.com(link is external) and follow the appropriate link to the webcast.A replay of the call will be available on the Company’s website, or by calling (855) 859-2056 or (404) 537-3406 (Conference ID56086480) until 12:00 p.m. ET on March 9, 2017.About Casella Waste Systems, Inc.Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States. For further information, investors contact Ned Coletta, Chief Financial Officer at (802) 772-2239; media contact Joseph Fusco, Vice President at (802) 772-2247; or visit the Company’s website at http://www.casella.com(link is external).*Non-GAAP Financial MeasuresIn addition to disclosing financial results prepared in accordance with GAAP, the Company also discloses earnings before interest, taxes, and depreciation and amortization, adjusted for accretion, depletion of landfill operating lease obligations, gains on asset sales, development project charge write-offs, contract settlement charges, legal settlement costs, tax settlement costs, bargain purchase gains, asset impairment charges, environmental remediation charges, severance and reorganization costs, expenses from divestiture, acquisition and financing costs, gains on the settlement of acquisition related contingent consideration, fiscal year-end transition costs, proxy contest costs, as well as impacts from divestiture transactions (“Adjusted EBITDA”), which is a non-GAAP measure.The Company also discloses net loss attributable to common stockholders, adjusted for gains on asset sales, development project charge write-offs, contract settlement charges, legal settlement costs, tax settlement costs, bargain purchase gains, asset impairment charges, environmental remediation charges, severance and reorganization costs, expenses from divestiture, acquisition and financing costs, gains on the settlement of acquisition related contingent consideration, fiscal year-end transition costs, proxy contest costs, impacts from divestiture transactions, losses on debt modifications, as well as impairment of investments (“Adjusted Net Income (Loss) Attributable to Common Stockholders”), which is a non-GAAP measure.The Company also discloses earnings before interest and taxes, adjusted for gains on asset sales, development project charge write-offs, contract settlement charges, legal settlement costs, tax settlement costs, bargain purchase gains, asset impairment charges, environmental remediation charges, severance and reorganization costs, expenses from divestiture, acquisition and financing costs, gains on the settlement of acquisition related contingent consideration, fiscal year-end transition costs, proxy contest costs, as well as impacts from divestiture transactions (“Adjusted Operating Income”), which is a non-GAAP measure.The Company also discloses net cash provided by operating activities, less capital expenditures (excluding acquisition related capital expenditures), less payments on landfill operating lease contracts, plus proceeds from divestiture transactions, plus proceeds from the sale of property and equipment, plus proceeds from property insurance settlement, plus (less) contributions from (distributions to) noncontrolling interest holders (“Free Cash Flow”), which is a non-GAAP measure.The Company also discloses Free Cash Flow plus certain cash outflows associated with landfill closure, site improvement and remediation expenditures, plus certain cash outflows associated with new contract and project capital expenditures, (less) plus cash (inflows) outflows associated with certain business dissolutions, plus cash interest outflows associated with the timing of refinancing transactions (“Normalized Free Cash Flow”), which is a non-GAAP measure.Adjusted EBITDA and Adjusted Operating Income are reconciled to net loss, while Adjusted Net Income (Loss) Attributable to Common Stockholders is reconciled to net loss attributable to common stockholders and Free Cash Flow and Normalized Free Cash Flow are reconciled to net cash provided by operating activities.The Company presents Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income (Loss) Attributable to Common Stockholders, Free Cash Flow, and Normalized Free Cash Flow because it considers them important supplemental measures of its performance and believes they are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s results. Management uses these non-GAAP measures to further understand its “core operating performance.” The Company believes its “core operating performance” is helpful in understanding its ongoing performance in the ordinary course of operations. The Company believes that providing Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income (Loss) Attributable to Common Stockholders, Free Cash Flow, and Normalized Free Cash Flow to investors, in addition to corresponding income statement and cash flow statement measures, affords investors the benefit of viewing its performance using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and its results of operations has performed. The Company further believes that providing this information allows its investors greater transparency and a better understanding of its core financial performance. In addition, the instruments governing the Company’s indebtedness use EBITDA (with additional adjustments) to measure its compliance with covenants.Non-GAAP financial measures are not in accordance with or an alternative for GAAP. Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income (Loss) Attributable to Common Stockholders, Free Cash Flow, and Normalized Free Cash Flow should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP, and may be different from Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income (Loss) Attributable to Common Stockholders, Free Cash Flow, or Normalized Free Cash Flow presented by other companies.Safe Harbor StatementCertain matters discussed in this press release, including, but not limited to, the statements regarding financial results and guidance, 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 “believe,” “expect,” “anticipate,” “plan,” “may,” “would,” “intend,” “estimate,” “guidance” 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 the Company operates and management’s beliefs and assumptions. The Company cannot guarantee that it actually will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company’s operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements. Such risks and uncertainties include or relate to, among other things: the outcome of its expansion efforts and related matters at the Southbridge landfill, including the uncertainty of the permitting process and groundwater contamination discovered near the landfill, which may delay or negatively impact its permitting activities at that landfill and result in increased costs and liabilities as well as potentially leading to a discontinuation of operations at the landfill; adverse weather conditions that have negatively impacted and may continue to negatively impact its revenues and its operating margin; current economic conditions that have adversely affected and may continue to adversely affect its revenues and its operating margin; the Company may be unable to increase volumes at its landfills or improve its route profitability; the Company’s need to service its indebtedness may limit its ability to invest in its business; the Company may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside its control; the Company may be required to incur capital expenditures in excess of its estimates; fluctuations in energy pricing or the commodity pricing of its recyclables may make it more difficult for the Company to predict its results of operations or meet its estimates; the Company may incur environmental charges or asset impairments in the future; and the Company’s credit facility agreement requires it to meet a number of financial ratios and covenants. There are a number of other important risks and uncertainties that could cause the Company’s 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 the Company’s Form 10-K for the fiscal year ended December 31, 2015 and in our Form 10-Q for the quarterly period ended September 30, 2016.The Company undertakes 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. 5.6%Following is a reconciliation of Adjusted Net Income (Loss) Attributable to Common Stockholders to Net loss attributable to common stockholders: Three Months EndedDecember 31, Fiscal Year EndedDecember 31, 2016 LIABILITIES AND STOCKHOLDERS’ DEFICIT (5,517)Contract settlement charge— 82,426 1,409 19.4%Depreciation and amortization(15,425) $(11,781)Net loss margin for income taxes(8.3)% 1,351 $631,512 (3.5)% — 94 6.8%Customer solutions14,117 2015Net cash provided by operating activities$24,363 16,330 0.5%Customer Solutions678 1,068 (12) — Total stockholders’ deficit 11,482 43.5% 41,537 Fiscal Year EndedDecember 31, 73.6% —% $49,995 (12) $(7,019) Divestiture transactions— $546,500 2015 72,892 13,747 $45,845 — 118,976 900 42,751 (21,597)Total liabilities and stockholders’ deficit Depletion of landfill operating lease obligations9,295 7,696 — CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESSUPPLEMENTAL DATA TABLES(Unaudited)(In thousands)Amounts of total revenues attributable to services provided for the three and twelve months ended December 31, 2016 and 2015 are as follows: 133 (3,449)Adjusted Operating Income$10,897 302 40,889 Change in restricted cash1,347 (54,200) Normalized Free Cash Flow between $32 million and $36 million (as compared to $27.1 million in fiscal year 2016).“Given the timing delays and challenges at the Southbridge landfill, we ramped down amortizable volumes at the site to approximately 325,000 tons in fiscal year 2016,” Casella said. “In fiscal year 2017, we plan to further reduce amortizable volumes to the site by 50,000 to 100,000 tons. We expect this further volume reduction to negatively impact revenues by approximately $3.0 million to $5.0 million and negatively impact Adjusted EBITDA by $2.0 million to $4.0 million as compared to fiscal year 2016, with both reductions already contemplated in our guidance ranges for fiscal year 2017. While we continue to pursue future expansion capacity at the Southbridge landfill, we currently do not have visibility on whether we will be able to develop this expansion capacity at an adequate risk adjusted return, and it is possible that at some point in the future we could conclude that closing the site is in the company’s best economic interest. However, even if we are unsuccessful from a permitting standpoint at the Southbridge landfill, we remain confident that we can achieve our fiscal year 2018 financial targets that we first announced in August 2015.”The Company provided the following assumptions that are built into its outlook: No material changes in the regional economy from the last 12 months. Depreciation and amortization15,425 61.4%Components of capital expenditures for the three and twelve months ended December 31, 2016 and 2015 are as follows (v): 38,652 Other long-term liabilities 2.3% $631,512 (2.6)%Fuel surcharge(12) (2.5)%Processing(17) 2015 1,002 3,606 $106,074 Interest payment on redemption of senior subordinated notes (ii)6,770 494 94 Amount Revenues$143,795 Capital expenditures(16,765) 9,428 72.5%Solid waste internalization64.3% (0.1)%Commodity price & volume(151) 2,873 — 227 — 2015Cash Flows from Operating Activities: CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data) 43.6%Disposal154,211 795 $8,149 — $30,493 Adjusted Operating Income margin7.6% 240 Components of revenue growth for the three months ended December 31, 2016 compared to the three months ended December 31, 2015 are as follows: Divestiture transactions— 44.2% Intangible assets, net Net cash proceeds from CARES dissolution (iv)— 2016 (877) Casella Waste Systems Inc,Vermont Business Magazine Casella Waste Systems, Inc (NASDAQ:CWST(link is external)), a regional solid waste management company based in Rutland, today reported its financial results for the three- and 12-month periods ended December 31, 2016. Revenues were $143.8 million for the fourth quarter, up $3.8 million, or 2.7 percent, from the same period in 2015. Revenues were $565 million for fiscal year 2016, up $18.5 million, or 3.4 percent, from fiscal year 2015. Net loss was $(12.0) million for the quarter, down $(5.0) million, or 70.6 percent, from the same period in 2015. Net loss was $(6.9) million for the fiscal year, up $4.9 million, or 41.8 percent, from fiscal year 2015. Shares were up today, at $12.09, near their 52-week high ($5.67 – $13.41), achieved last December.Highlights for the Three and Twelve Months Ended December 31, 2016: 2016 results exceeded guidance for Revenues, Adjusted EBITDA* and Normalized Free Cash Flow*. 1.1% $(12,969)Basic and diluted weighted average common shares outstanding41,422 % of TotalRevenues 1,781 13,747 27.2% Cost of operations97,565 $120,602 (5,385)Proceeds from divestiture transactions— 999 — 9.8% — Proxy contest costs— 520,085 Operating expenses: 1,351 0.6%Processing— (48,784)Cash Flows from Financing Activities: 3,449 1,902 — 2015Eastern region56.4% $(11,781)Adjustments to reconcile net loss to net cash provided by operating activities: 5.8% Fiscal Year EndedDecember 31, 900 (6,780) $546,500 240 381,973 — 9.6% 2016 1.4%Disposal816 $7,798 $(11,209)Adjusted diluted weighted average common shares outstanding42,553 — $282 Proxy contest costs— (9,295) 2.6% 75.1%Organics10,215 % ofRelatedBusiness Solid Waste Internalization Rates by Region for the three and twelve months ended December 31, 2016 and 2015 are as follows: Three Months EndedDecember 31, Replacement Capital Expenditures: — 61,856 Basic and diluted earnings per share$(0.29) In the solid waste business, revenue growth of between 1.0% and 3.3%, with price growth from 2.5% to 3.5% and lower volumes associated with the planned ramp down of volumes at the Southbridge landfill. 503,961 CURRENT ASSETS: (414) Net loss attributable to common stockholders$(11,974) December 31,2016 1,111 Accounts payable $27,765 (7,249) 2016 53.8% 1,362 (2,409) 382,615 Other income(394) $8,670 227 (62,704)Depletion of landfill operating lease obligations(2,165) $7,244 — —% Loss on derivative instruments— 2015 (1,119)Loss (gain) on derivative instruments— (1,495)Free Cash Flow*$5,453 — 2,099 684 Cost method investments — (185)Deferred income taxes583 (3.4)% $0.19 15,512 (0.1)% 7.2%Customer solutions54,478 2015 9.4% Operating income9,997 13,747 $8,721 Acquisitions, net of cash acquired(2,839) 1,781 Other383 Adjusted Operating Income* was $10.9 million for the quarter, up $2.7 million, or 33.7%, from the same period in 2015. Adjusted Operating Income was $45.8 million for the fiscal year, up $15.4 million, or 50.3%, from fiscal year 2015. Three Months Ended December 31, 2016 Net cash used in investing activities(62,964) (10,430)Provision for income taxes150 2015 Fiscal Year EndedDecember 31, $3,857 1,902 2.7% Total assets 29.6%Power generation1,143 0.8% $(6,849) Divestiture transactions— Fiscal Year Ended December 31, (1,119)Other expense, net21,821 1.0%Solid waste operations104,417 Impairment of investments— 1,940 42,134 — (24,550) 156,536 $2,544 —% 1.1% 9,994 61,856 Net loss was $(12.0) million for the quarter, down $(5.0) million, or 70.6%, from the same period in 2015. Net loss was $(6.9) million for the fiscal year, up $4.9 million, or 41.8%, from fiscal year 2015. CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) $140,024 $238,301 73.5% Other current assets $18,957 12,333 3,079 94 Proceeds from property insurance settlement— 2015 Landfill closure, site improvement and remediation expenditures (iii)— (i) The aggregate tax effect of the adjustments, including the impact of deferred tax adjustments.Following is a reconciliation of Free Cash Flow and Normalized Free Cash Flow to Net cash provided by operating activities: (v) The Company’s capital expenditures are broadly defined as pertaining to either growth, replacement or acquisition activities. Growth capital expenditures are defined as costs related to development of new airspace, permit expansions, and new recycling contracts along with incremental costs of equipment and infrastructure added to further such activities. Growth capital expenditures include the cost of equipment added directly as a result of organic business growth as well as expenditures associated with adding infrastructure to increase throughput at transfer stations and recycling facilities. Replacement capital expenditures are defined as landfill cell construction costs not related to expansion airspace, costs for normal permit renewals, and replacement costs for equipment due to age or obsolescence. Acquisition capital expenditures, which are not included in the table above, are defined as costs of equipment added directly as a result of new business growth related to an acquisition.Source: RUTLAND, Vt., March 01, 2017 (GLOBE NEWSWIRE) — Casella Waste Systems, Inc www.casella.com(link is external) $2,312 6,796 2015Total Growth Capital Expenditures$1,082 4,471 6,061 74.4% 62,704 5,335 18,866 $2,312 Net loss$(6,858) 1,447 — 51.4%Western region73.6% 9.8%Recycling52,911 2,205 42,296 8.1% (61,856) Tax effect (i)— Proceeds from long-term borrowings604,850 (3,055)Normalized Free Cash Flow$12,223 $(12,969)Impairment of investments— Other income(394) % of SolidWasteOperations % of TotalCompanySolid Waste Operations: $(7,020) Adjusted EBITDA$29,405 28.6%Power generation5,921 0.2%Closed landfill— 40,889 38,977 Adjusted EBITDA was $29.4 million for the quarter, up $1.6 million, or 5.9%, from the same period in 2015. Adjusted EBITDA was $120.6 million for the fiscal year, up $14.5 million, or 13.7%, from fiscal year 2015. Stock-based compensation3,393 2015 —%Solid Waste Price2,784 16,330 2.0%Collection(90) Unaudited (0.1)%Disposal(3,564) Three Months EndedDecember 31, Interest expense, net9,204 74.5%Organics41,587 $(0.17) (2.2)%Provision for income taxes150 — Cash Flows from Investing Activities: Fiscal Year EndedDecember 31, 161 $(0.32) Proceeds from property insurance settlement— December 31,2015 Environmental remediation charge900 —%Total Solid Waste(771) 51,309 1.1%Solid waste operations416,054 1,940 2015 Acquisition related additions to property, plant and equipment(38) Price2,894 24.3% In the recycling business, overall revenue growth of between 10.0% and 15.0%, driven by higher commodity prices, partially offset by lower processing fees and lower volumes. 20,568 — 1,111 302 21.3% 9,295 14,189 9,428 135,322 44,945 70,507 — (11,781)Less: Net income (loss) attributable to noncontrolling interests— 14,848 40,642 53,334 Total current liabilities 0.5%Recycling Operations: $27,117 63.4% (1.2)% (6,858) 2,099 5,335 (5.0)% (ii) Includes interest payment required upon redemption of the senior subordinated notes.(iii) Includes cash outlays associated with Worcester landfill capping.(iv) Includes cash proceeds and cash distribution associated with the dissolution of CARES. 1.2%Processing6,282 2016 $5,373 69,675 Fiscal Year EndedDecember 31, 29,666 Contract settlement charge— 53.9% 9.6%Recycling15,046 Interest accretion on landfill and environmental remediation liabilities918 5,829 $80,434 2016 Facilities1,449 Other accrued liabilities Restricted assets 40,090 2016 85,346 Adjusted EBITDA margin20.4% 0.3% Excess tax benefit on the vesting of share based awards— 494 Amortization of debt issuance costs and discount on long-term debt3,881 Total Growth and Replacement Capital Expenditures$16,765 Cash and cash equivalents 1,940 Loss (gain) on derivative instruments— Collection$1,968 Severance and reorganization costs—
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2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr by: Mike DorsettIn our last post, we discussed the benefits of utilizing participation loans. A loan participation is an instrument that allows multiple lenders to participate or share in the funding of a loan. Today, we will dive into the importance of due diligence and some of the types of risk assessment that should be considered when participating in these programs.Due Diligence: Two Critical Words When Considering A Loan ParticipationPrior to starting a loan participation program or entering into a loan participation agreement with a third party, officials must evaluate whether the program is compatible with the board’s risk tolerance, loan policies, and overall strategic plan. Purchasing financial institutions should consider the following factors:Does the seller have demonstrated ability to repurchase the participation, if required under the terms of the participation agreement?Is the product being sold time-tested? The seller should demonstrate experience in underwriting the product, and the product should have weathered a full economic and interest rate cycle.Can you (purchasing financial institution) underwrite the loan to your own standards and not rely on the analysis performed by the seller or the broker? The National Credit Union Association (NCUA) suggests the purchasing institution consider an independent analysis of credit quality. continue reading »
Not all commercial deals were created equal. It’s when things get a little messy, complex or a buyer is considering a potentially risky investment that having a Certified Commercial Investment Manager on his or her side can lead to the most informed decisions possible. This was especially true during the Great Recession. Below are vignettes of interesting, risky and downright bizarre deals local CCIMs have encountered.The fine printCCIM: Alan Davidson, ORION CommercialIn 2009, an investment group* bought a package of properties. One property in particular, a single-story, single-tenant property, though gave them a bit more than they bargained for. When the investment company foreclosed on the property, they found three tenants in the building, a personal boat parked on the premises, flammable materials in what Davidson called a “non-permitted hut” outside the building, a second-floor mezzanine and electrical rewiring that was not completed to code. Furthermore, the previous tenant did not have permits for multiple tenants. The City of Gilbert, which happened to be operating across the street during all this, Davidson says, “red-tagged” the businesses and effectively asked them to move out. Davidson’s role was to strike an agreement with the city to let the tenants stay in operation until they could find a new space to lease. He managed to do this, and to sell the building “as is” to one of the remaining tenants who wanted to consolidate his cabinetry businesses around the Valley.*Davidson has left his clients and certain specifics vague in the interest of fiduciary duty. He is unable to divulge details without written release, which he did not seek for this feature.The corner of happy and healthyCCIM: Alan Davidson, ORION CommercialUniversities receive planned gifts from alumni, especially those who have a particularly strong bond to their alma mater. One generous alum of a California university that will remain unnamed* who had no heirs named his alma mater the beneficiary of two Walgreen’s stores’ land leases in Phoenix. The university contacted a California-based bank for which Davidson was tasked to sell the properties as quickly as possible — in 2009. The university didn’t want to take the title for the land and the Walgreen’s leases were nearly up and losing value. Additionally, one of the leases had a defeasance clause, meaning the loan couldn’t be paid off unless the income to the lender was replaced with equivalent earnings. Davidson deferred to a North Carolina company that had an expert in defeasance clauses and found investments to acquire in Walgreen’s ground lease. The leases were sold in less than 100 days — and the new buyer sold the properties two years later.To buy or not to buyCCIM: Scott Fey, Omni-American LLCHorne Plaza, a 15KSF retail center in Gilbert was available for sale in 2012. The economy was still very soft and retail in Phoenix had not improved. Furthermore the center’s largest tenant, Gilbert Center for Family Medicine, was preparing to move. The largest challenge was to replace the 6KSF medical tenant. The second largest challenge was beyond the control of the buyer. Part of the center not for sale was a 60KSF former Albertsons grocery store. The store was abandoned and there was no indication it would be replaced anytime soon. The CCIM performed a value forecast for the buyer showing the center value based on a CAP rate five years in the future under a worst case, best case and most likely case scenario. The CCIM also studied the retail market in the immediate area and discovered that many of the large vacant “big box” store locations that had been empty in the area were selling at a rapid pace. The buyer considered all of the research and made the decision to purchase what on the surface appeared to be a rather drastic situation. The CCIM helped the buyer negotiate a favorable termination with the medical center that had decided to leave its lease early. The broker on the building was instrumental in completing a lease with a new medical office tenant. An investment group from Las Vegas purchased the old Albertsons location and leased the space to a new grocery chain. The owner successfully released a smaller tenant that was not paying rent on time and expanded the new medical tenant into its space. Cash flow of the property not only stabilized but grew with company guaranteed leases. The value of the building has improved exponentially with the buyer taking a risk but a calculated risk based on the CCIM research.
Gut Microbiome samples. Courtesy/LANL Tonight LANL scientists Armand Dichosa and Kumar Anand are sending samples of the human gut microbiome into space. Courtesy photoLANL News:Los Alamos National Laboratory scientists Armand Dichosa and Anand Kumar are sending samples of the human gut microbiome into space tonight, part of a project with NASA, DTRA and Rhodium Scientific.On its 11:50 p.m. March 6 launch, SpaceX-20 will carry these samples to the International Space Station National Laboratory where they will be allowed to grow in order to understand the effect microgravity has on the microbial community. The samples have been carefully prepared at Los Alamos so that for each sample there is a complementary sample staying here on Earth.Upon return, both sets of samples will be sequenced and analyzed to identify genetic changes that might occur to the bacterial communities, and to understand the potential implications these changes may have to human health in microgravity. NASA will live-stream the March 6 launch at 11:50 p.m. Eastern TimeMore information on the experiment Social Media handles:#LosAlamosNatLab#BusinessOfScience#SpaceMicrobiome
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Press Release, August 29, 2014; Image: Sovcomflot OAO Sovcomflot of Russia announced its financial and operating results for the six months ended 30 June 2014, boasting a net profit of $63.6 million compared to the loss of $14.4 in the previous year.Gross revenue (Freight and Hire) rose to $675.2 million in H1 2014 compared to the first half of 2013 when the company recorded a gross revenue of $628.4 million.TCE revenues increased by 16.7% to $490.7 million in H1 2014 in comparison to the $420.4 million in the same period last year.EBITDA increased 30.1% to $251.7 million from $193.4 million the year before.The company further expanded its LNG fleet as it took delivery of Velikiy Novgorod and Pskov, tri-fuel 170,200m³ Atlanticmax ice class LNG carriers. Both vessels are specially designed for and employed under a long-term charter by Gazprom Group.Sergey Frank, President and CEO of OAO Sovcomflot, said, “The tanker market conditions remain volatile and so we are cautious about the market outlook for the full year. However, a significant and growing portion of Sovcomflot’s revenues comes from long-term charter contracts supporting industrial energy projects in the LNG transportation and offshore services sectors which will underpin our earnings going forward and these sectors continue to be key areas of focus in our long-term business strategy.”
The Portuguese port of Lisbon could soon continue normal operations as the Portuguese Dockers Union (SETC) and the International Dockworkers Council (IDC) reached an agreement with port employers’ associations.IDC said that the “workers achieved a compromise that will, following the signing of a new agreement in the coming days, be valid for the next six years.”The agreement, which was reached on Friday and Saturday after 15 hours of negotiation, was passed yesterday evening at the union general assembly.Among the main points of this deal is the promise of port companies to dismantle alternative labour pools at the port of Lisbon, and to abandon the establishment of direct and precarious contracts.“All existing workers, within a maximum period of two years, will join the existing labour pool. Further, port companies have committed the reinstatement of workers dismissed last year, and the reimbursement of their salaries,” IDC added.The new agreement will also reflect the existence of a mixed system of automatic promotions for dock workers, which will be determined by the amount of time spent working on four upper work levels, and on mixed progression at the two lower levels. In addition, there will be ten pay scale levels, including two additional levels- one minimum and one intermediate- which apply to new employees.“The agreed minimum wage will be 850 euros per month and the agreed maximum wage will be 2,326.06 euros per month. Priority will be given to dockworkers who exercise the tasks of “ship planning” and “yard planning”,” IDC said.Furthermore, the union said that it will carry on with the demonstration organised on June 16 as it wants to state how conditions in Lisbon should be a reference for all Portuguese ports, as well as collaborate with civil society mobilisations against precarious employment.SETC has been delivering strike notices since November 2015 prompted by the inability of the two sides to find a middle-ground on the new contracts, resulting in the contract dispute of over three years. On April 20, the union launched a strike which froze all operations at the port of Lisbon, followed by a number of stoppages.