Casella Waste Systems Inc (CWST) has reported a 228.27 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $7.54 million, or $0.18 a share in the quarter, compared with $2.30 million, or $0.06 a share for the same period last year.
Revenue during the quarter grew 3.38 percent to $151.13 million from $146.18 million in the previous year period. Gross margin for the quarter expanded 280 basis points over the previous year period to 34.63 percent. Total expenses were 88.50 percent of quarterly revenues, down from 91.32 percent for the same period last year. This has led to an improvement of 281 basis points in operating margin to 11.50 percent.
Operating income for the quarter was $17.38 million, compared with $12.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $37.15 million compared to $33.12 million in the prior year period. At the same time, adjusted operating margin improved 192 basis points in the quarter to 24.58 percent from 22.65 percent in the last year period.
“We had another great quarter as we continued to execute well against our key management strategies,” said John W. Casella, chairman and chief executive officer of Casella Waste Systems, Inc. “Our team is focused on creating shareholder value through improving returns in our disposal line-of-business, driving higher profitability in our collection line-of-business, offsetting risk and improving returns in our recycling business, and reducing leverage through strict capital discipline and debt repayment.”
Casella Waste Systems expects revenue to be in the range of $550 million to $560 million for financial year 2016.
Operating cash flow improves significantly
Casella Waste Systems Inc has generated cash of $56.07 million from operating activities during the nine month period, up 38.34 percent or $15.54 million, when compared with the last year period.
The company has spent $43.65 million cash to meet investing activities during the nine month period as against cash outgo of $27.48 million in the last year period.
The company has spent $11.17 million cash to carry out financing activities during the nine month period as against cash outgo of $13.24 million in the last year period.
Cash and cash equivalents stood at $3.56 million as on Sep. 30, 2016, up 76.37 percent or $1.54 million from $2.02 million on Sep. 30, 2015.
Working capital drops significantly
Casella Waste Systems Inc has witnessed a decline in the working capital over the last year. It stood at $2.23 million as at Sep. 30, 2016, down 54.09 percent or $2.63 million from $4.86 million on Sep. 30, 2015. Current ratio was at 1.03 as on Sep. 30, 2016, down from 1.06 on Sep. 30, 2015.
Days sales outstanding went down to 39 days for the quarter compared with 40 days for the same period last year.
At the same time, days payable outstanding was almost stable at 44 days for the quarter, when compared with the previous year period.
Debt comes down
Casella Waste Systems Inc has recorded a decline in total debt over the last one year. It stood at $500.60 million as on Sep. 30, 2016, down 5.86 percent or $31.14 million from $531.74 million on Sep. 30, 2015. Total debt was 78.80 percent of total assets as on Sep. 30, 2016, compared with 80.49 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.81 for the quarter from 1.27 for the same period last year.
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