Casella Waste Systems (CWST) swung to a net profit for the quarter ended Oct. 31, 2014. The company has made a net profit of $0.26 million, or $ 0.01 a share in the quarter, against a net loss of $0.34 million, or $0.01 a share in the last year period.
Revenue during the quarter grew 6.84 percent to $141.34 million from $132.30 million in the previous year period. Gross margin for the quarter contracted 110 basis points over the previous year period to 30.46 percent. Total expenses were 92.88 percent of quarterly revenues, up from 92.86 percent for the same period last year. That has resulted in a contraction of 2 basis points in operating margin to 7.12 percent.
Operating income for the quarter was $10.06 million, compared with $9.45 million in the previous year period. However, the adjusted operating income for the quarter stood at $10.65 million compared to $9.66 million in the prior year period.
"We continued to make progress against our key strategic initiatives in our second quarter, with notable gains at our landfills, where we added another 110,000 tons year-over-year," said John W. Casella, chairman and chief executive officer of Casella Waste Systems.
"Over the last two years a number of competitor disposal facilities have permanently closed across the Northeast. We have excellent asset positioning in these markets, and have been able to capitalize on the changing dynamics to gain market share, improve pricing, and drive higher cash flows and returns."
The company reaffirmed its operating guidance for the 8-month transition period ending Dec. 31, 2014. It expects revenues to be in the range of $356.0 million and $366.0 million and adjusted EBITDA in the range of $71.0 million and $75.0 million.
Operating cash flow declines
Casella Waste Systems has generated cash of $22.83 million from operating activities during the first half, down 18.80 percent or $5.28 million, when compared with the last year period.
The company has spent $38.02 million cash to meet investing activities during the first six months as against cash outgo of $34.94 million in the last year period. It has incurred net capital expenditure of $35.21 million on net basis during the first six months, up 40.10 percent or $10.08 million from year ago period.
Cash flow from financing activities was $15.28 million for the first six months, up 49.56 percent or $5.06 million, when compared with the last year period. It has made net debt repayment of $15.63 million. It has raised net of $0.14 million by selling common stocks.
Cash and cash equivalents stood at $2.73 million as on Oct. 31, 2014, down 44.80 percent or $2.22 million from $4.95 million on Oct. 31, 2013.
Working capital remains negative
Working capital of Casella Waste Systems was negative $0.51 million on Oct. 31, 2014 compared with negative $13.14 million on Oct. 31, 2013. Current ratio was at 0.99 as on Oct. 31, 2014, up from 0.85 on Oct. 31, 2013.
Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 10 days for the last year period. Days sales outstanding were almost stable at 39 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 2 days for the quarter compared with 4 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 52 for the same period last year.
Debt moves up marginally
Casella Waste Systems has witnessed an increase in total debt over the last one year. It stood at $523.78 million as on Oct. 31, 2014, up 3.19 percent or $16.19 million from $507.59 million on Oct. 31, 2013.
Total debt was 79.15 percent of total assets as on Oct. 31, 2014, compared with 10,248.11 percent on Oct. 31, 2013. Debt to equity ratio was at 78.63 as on Oct. 31, 2014, down from 32.04 as on Oct. 31, 2013.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]