Casella Waste Systems, Inc. · NASDAQ:CWST
Casella Waste Systems — Raymond James 2009 Institutional Investors Conference
21 slides from Casella Waste Systems's conference presentation, Mar 11, 2009
Slide 1: Casella Waste Systems - Raymond James 2009 Institutional Investors Conference
Casella Waste Systems March 11, 2009 Raymond James 2009 Institutional Investors Conference
Slide 2: Safe Harbor Statement
we may be unable to reduce costs or increase revenues sufficiently to achieve estimated EBITDA and other targets; landfill operations and permit status may be affected by factors outside our control; we may be required to incur capital expenditures in excess of our estimates; fluctuations in the com
Slide 3: Casella provides integrated solid waste and recycling services
Casella Waste Systems Casella provides integrated solid waste and recycling services $576.2 million of revenues in last twelve months January 31, 2009 Operations in 15 eastern states Integrated solid waste and recycling services in New England and New York Stand-alone recycling processing facilities
Slide 4: Casella owns/operates valuable solid waste assets and key recycling facilities
32 COLLECTION DIVISIONS 31 TRANSFER STATIONS DISPOSAL FACILITIES 11 RECYCLING FACILITIES 37 Integrated Solid Waste Operations1 Recycling Operations LANDFILL GAS-TO-ENERGY FACILITIES 5 Casella owns/operates valuable solid waste assets and key recycling facilities 1 Integrated solid waste operations i
Slide 5: Taking actions to offset economic downturn
Taking actions to offset economic downturn Economic downturn in late 2008 severely impacted recycling business and weighed on economically sensitive solid waste markets. Integrated solid waste business continues to exhibit recession resistant qualities. Team acted quickly to improve operating perfor
Slide 6: Casella controls valuable North Eastern landfill assets
Casella controls valuable North Eastern landfill assets 10 landfills in strategic locations across the North East. Added 64.5 million tons of total long-term capacity. Added 1.9 million tons of annual disposal capacity. 1 Total Disposal Capacity excludes MERC and all “Closure Projects”; Annual Dispo
Slide 7: Management team is focused on three top priorities
Management team is focused on three top priorities Top Priorities: Increase cash flow generation; Refinance senior secured debt facility; Strategic asset review.
Slide 8: Increase Cash Flow Generation
Increase Cash Flow Generation
Slide 9: Increase Cash Flow Generation
Increase Cash Flow Generation Levers to improve cash flow generation: Pricing Cost controls and operating efficiencies Asset management Capital expenditures Working capital
Slide 10: Actions taken to offset economic weakness: revenue initiatives
Actions taken to offset economic weakness Revenue initiatives: Increased solid waste pricing, resulting in a $6.0 million annualized benefit. Net benefit after limited customer roll-backs, with only 1 month benefit in Q3. Increased recycling tipping and processing fees in Jan 2009 to offset deterior
Slide 11: Actions taken to offset economic weakness: cost initiatives
Actions taken to offset economic weakness Cost initiatives: Reduced workforce by -9.1% since Feb 2008, resulting in an estimated $10.5 million annualized benefit. Reductions are the result of reducing labor to match lower volumes, fleet optimization, and reorganizing 11 operating divisions into 5 ne
Slide 12: Fiscal Year 2010 Operating Goals
Fiscal Year 2010 Operating Goals
Slide 13: Additional pricing and cost efficiency goals for FY10
Additional pricing and cost efficiency goals for FY10 Revenue initiatives: Increase solid waste pricing by +200bps over CPI Enhance fuel, oil, and environmental recovery fees. Implement additional pricing tools, such as container pickup charges. Cost initiatives: Reduce G&A costs by -100bps as a % o
Slide 14: Improving Solid Waste Pricing
Improving Solid Waste Pricing Disciplined collection and disposal pricing strategy driving value through coordinated and standardized approach. 0.9% 2.2% -0.8% -3.6% 0.8% 0.6% 1.3% 0.8% 0.3% 1.0% 1.3% 0.1% -2.4% 0.1% -5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Sol
Slide 15: Enhancing asset management
Enhancing asset management (a) Focus on maintenance capital Landfill growth capital investment completed in FY08; added 64.5 million tons of incremental landfill capacity. FY09 capital projected to be $16.0 million lower than June 2008 plan. Limited growth capital in FY09 invested in high return pro
Slide 16: Refinance Senior Secured Debt Facility
Refinance Senior Secured Debt Facility
Slide 17: Next major debt maturity is senior secured credit facility, maturing April 2010
Next major debt maturity is senior secured credit facility, maturing April 2010 $525.0 million senior secured facility; $350.0 million revolving credit facility and $173.2 million Term Loan B. Total Availability 3 as of Jan 31, 2009 was $142.3 million. Plan to refinance the facility by May 2009, thr
Slide 18: Strategic Asset Review
Strategic Asset Review
Slide 19: Strategic Asset Review
Strategic Asset Review Our goals for the next 18 months are: Improve returns and operating performance; Reduce absolute debt and leverage ratios. As part of our strategy we are reviewing cash flows by market. We will determine if there any performing or under-performing assets that could create more
Slide 20: Casella's value drivers
Casella’s value drivers Strong additions to senior management team. Consistent track record of stable cash flows in a recession resistant industry. Valuable integrated solid waste assets in disposal limited North Eastern markets. Leading industry with innovative resource transformation solutions. Fo
Slide 21: EBITDA reconciliation
2005 Actual 2006 Actual 2007 Actual 2008 Actual 2009 Projected (2) Net Cash Provided by Operating Activities 83.2 $ 75.1 $ 81.1 $ 71.8 $ 72.3 $ Changes in assets and liabilities, net of effects of acquisitions and divestitures 1.0 7.3 (3.7) 11.7 11.1 Deferred income taxes (5.1) (5.0) 11.2 2.4 1.6 St
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