Integrated waste services provider Casella Waste Systems Inc. (CWST) Monday reported a wider year-over-year loss for the fourth quarter, hurt by a 15.7% revenue decline and higher operating expenses. The company also provided revenue forecast for the fiscal year 2010, in line with current analysts' expectations.
In a statement, chairman and chief executive officer, John Casella said, "During the third and fourth quarters we experienced significant declines in commodity pricing and lower solid waste volumes in more economically sensitive markets. To meet our free cash flow target, we acted swiftly and thoughtfully to improve all aspects of our operating structure and daily business practices, and we successfully implemented programs that reduced costs and improved asset utilization."
The Rutland, Vermont-based company reported net loss applicable to common shareholders of $68.5 million or $2.67 per share for the fourth quarter, sharply wider than $7.8 million or $0.31 per share in the prior-year quarter.
The results for the latest quarter include a non-cash goodwill impairment charge of $55.3 million or $1.62 per share, an environmental remediation charge of $1.5 million or $0.04 per share, development project charges of $0.4 million or $0.01 per share, severance and reorganization charges of $1.3 million or $0.03 per share, and a charge of $24.1 million or $0.94 per share for the increase of the non-cash deferred tax valuation allowance.
Excluding the non-recurring charges, adjusted net loss from continuing operations for the quarter narrowed to $0.8 million or $0.03 per share from $4.3 million or $0.17 per share in the year-ago quarter.
On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.07 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined 15.7% to $117.6 million from $139.6 million in the same quarter last year, and narrowly missed Three Wall Street analysts' consensus estimate of $118.17 million.
The company noted that about 53% of the decline was due to a drop in recycling revenues from last year mainly as the result of lower commodity prices.
Operating loss for the fourth quarter was $51.92 million, compared to an operating income of $5.53 million in the prior-year quarter.
Total operating expenses for the quarter were $169.56 million, higher than $134.09 million in the year-ago quarter. Other expenses declined to $9.22 million from $10.92 million in the same quarter last year. For fiscal 2009, Castella reported a net loss of $68.03 million or $2.66 per share, sharply wider than $7.84 million or $0.31 per share posted in fiscal 2008.
Excluding the non-recurring charges, adjusted net income from continuing operations was $1.3 million or $0.05 per share, compared to a net loss of $1.7 million or $0.07 per share last year. Analysts expected the company to report a loss of $0.06 per share.
Total revenues for the fiscal year 2009 were $554.24 million, 4.4% lower than $579.52 million in the previous year. The Street was looking for full year 2009 revenues of $555.08 million.
Looking ahead to fiscal 2010, Casella expects revenues in a range of $510.0 million to $530.0 million. Analysts currently expect the company to post revenues of $520.65 million for the full year.
CWST closed Monday's regular trading session at $2.79, down $0.05 or 1.76% on a volume of 0.14 million shares, lower than the three-month average volume of 0.21 million shares.
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