Revenue during the quarter grew 6.67 percent to $133.80 million from $125.43 million in the previous year period. Gross margin for the quarter expanded 143 basis points over the previous year period to 29.34 percent. Total expenses were 95.09 percent of quarterly revenues, down from 98.43 percent for the same period last year. This has led to an improvement of 333 basis points in operating margin to 4.91 percent.

Operating income for the quarter was $6.56 million, compared with $1.97 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $23.14 million compared with $19.26 million in the prior year period. At the same time, adjusted EBITDA margin improved 194 basis points in the quarter to 17.30 percent from 15.36 percent in the last year period.

"We had another strong quarter as we continued to execute well against our key management strategies and benefited from stronger recycled commodity pricing for fibers,” said John W. Casella, chairman and chief executive officer of Casella Waste Systems, Inc. "We remain focused on creating shareholder value through increasing landfill returns, improving collection profitability, creating incremental value through resource solutions, improving returns in our recycling business, and reducing leverage through strict capital discipline and debt repayment. The progress we have made on our strategies clearly drove positive financial results in the first quarter, with operating income up $4.6 million, operating income margins up 330 bps, and consolidated net leverage down year-over-year."

Casella Waste Systems expects revenue to be in the range of $577 million to $587 million for financial year 2017.

Cash flow from investing activities was almost stable for the quarter at $10 million, when compared with the previous year period. It has incurred net capital expenditure of $8.55 million on net basis during the quarter, down 9.90 percent or $0.94 million from year ago period.

The company has spent $1 million cash to carry out financing activities during the quarter as against cash inflow of $7.60 million in the last year period.

Cash and cash equivalents stood at $2.23 million as on Mar. 31, 2017, up 35.07 percent or $0.58 million from $1.65 million on Mar. 31, 2016.

Working capital increases sharply
Casella Waste Systems has recorded an increase in the working capital over the last year. It stood at $3.25 million as at Mar. 31, 2017, up 837.75 percent or $2.91 million from $0.35 million on Mar. 31, 2016. Current ratio was at 1.05 as on Mar. 31, 2017, up from 1 on Mar. 31, 2016.

Days sales outstanding went down to 39 days for the quarter compared with 42 days for the same period last year.

At the same time, days payable outstanding went down to 41 days for the quarter from 42 for the same period last year.