Casella Waste Posts Profit in Second Quarter

Casella Waste Systems Inc. made a profit in its fiscal second quarter, and revenue rose as well.

The Rutland, Vt.-based Casella reported for the period ended Oct. 31 a net profit of $361,000, or 1 cent per diluted share, compared with a net loss of $575,000, or 1 cent per diluted share, in the year-ago period.

Revenue climbed 6.8 percent to $141.3 million to $132.3 million, according to a news release.

For the six months, the waste and recycling firm posted net income of $207,000, or 0 cents per diluted share, compared with a net loss of $738,000, or 1 cent per diluted share, a year earlier. Revenue rose 8.4 percent to $282.7 million from $260.9 million in 2013.

"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 Casella, chairman and CEO of the company. "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."

Casella is in transition this fiscal year to a calendar year, so the eight-month transition ends Dec. 31. The company reaffirmed its operating guidance for the 8-month transition period with revenue between $356 million and $366 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) between $71 million and $75 million.