Casella Waste Systems, Inc. · NASDAQ:CWST
Casella Waste Systems — KeyBanc Capital Markets' Industrial, Automotive & Transportation Conference 2015
20 slides from Casella Waste Systems's conference presentation, May 28, 2015
Slide 1: Casella Waste Systems, Inc. KeyBanc Capital Markets Conference
Exhibit 99.1 Exhibit Casella KeyBanc Industrial, Transportation May 28,Waste 99.1 2015 Capital Automotive Systems, Conference Markets’ &Inc.
Slide 2: Safe Harbor Statement
Safeundertake Certain similar and statements, Such economic our targets; pricing incur looking 10-Q 2We need management’s harbor risks environmental forexpressions, of landfill matters statements statements. to the conditions our and and service statement quarterly recyclables no uncertainties opera
Slide 3: Casella Waste Systems Overview
$529.3economic Integrated Strategy Tying Provide Casella mm Waste provides customers focused solid of Systems Systems—Overview revenues waste and integrated onunique delivering environmental and 3forresource recycling LTM solid customers waste, ended solutions models services 3/31/15. recycling reso
Slide 4: Casella Company Overview: Facilities and Operations
4Casella Company Casella 35 18 10 (2) Collection Recycling Disposal Ontario 918k 12.8mm Juniper No McKean 312k 2.1mm Hakes 462k 4.0mm Chemung 200.5k Service Landfill 44 Transfer Clinton 175k 15.7mm WasteUSA 600k 14.4mm NCES Hyland 14.6mm Southbridge 405k 7.0mm Note: (1) annual Overview tons/yr Total
Slide 5: Strong Strategic Execution
(1) Strong Strategic #1—Executing #2—Sourcing #3—Driving #4—Executing #5—Reducing Results Annual Pricing & Focused AEBITDA Repositioned New Sold Changed Refinanced Commercial non-core, President municipal Casella execution programs Landfill Disposal Excludes on Focus fiscal margins Revolver operatio
Slide 6: Results and Guidance
(1) Results Revenue $to Adj Guidance 3/31/15 4/30/14 4/30/13 2015 LTM 19.3% $97.9 FYE (2)520 529.3 497.6 530 455.3 (3) EBITDA FYE Results Revenue Adj. $107 Landfill20.0% up Please ($mm) LTM significantly $95.1 ($mm) 19.1% Disposal Excludes Residential Casella EBITDA Waste since tons growth and up FY
Slide 7: Strategic Management Focus in 2015
1Casella Strategic Management 432 Increasing Focus focused Drivinginadditional Creating Improving Waste 2015 landfill in7and keyreturns incremental balance Systems beyond areas tothrough increase profitability value sheet and free riskcash in collection Resource reducing flow and to reduce debt leve
Slide 8: Driving Landfill Volumes and Pricing
(1) Driving Annual 3.9 $28/ton $29/ton $30/ton FYE Western (2) 4.2 Total FYE Landfill Roughly Average Casella 35 Landfill higher Annual Region .LTM Includes disposal annual Waste controls landfill 4/30/13 Eastern Volumes Landfill Highlights: price 0.5mm both landfill per capacity Systems 10 tons ton
Slide 9: Increasing Market Disposal Capacity Constraints
1 Increasing Market Disposal Roughly closure NYC Shifted Eastern Western Casella Dept dynamics of strategic Waste Region Region 1.5mm site 2.4mm oflandfill closures Sanitation Systems –focus tons/yr focus focus are tons/yr) returns improving (and on in 9on of contracts 2015 maximizing pricing, dispo
Slide 10: Disposal Market Dynamics Shifting in Northeast
421120k Disposal 10 2Other18 Disposal Landfill market New Facilities disposal in Gas-to-Energy dynamics Disposal Recycling Northeast Facilitiesare isshifting contracting Clinton 175k 15.7mm WasteUSA 600k 14.4mm NCES 1.8mm Juniper No Hyland 14.6mm Ontario 918k 12.8mm Finch Moretown 286k MERC PERC 300
Slide 11: Creating New Disposal Supply-Demand Imbalance
4Casella creating New Disposal Tons Excess 16.5 Shortfall 2.0 2.9 2012 Service 10 4.5 3.7 0.7 Landfills 1.2 13.6 (0.2) 16.6 York Disposed 2015 Vermont, Area aLandfill 14.6 Capacity 16.6 Massachusetts 5.6 6.3 5.0 0.3 1.3 (0.4) Note: 4.5 4.2 5.0 5.3 2012 Data 4.2 4.4 5.4 supply-demand Waste2018 New 15
Slide 12: Driving Team Pricing and Collection Profitability
2 Driving Team Pricing Route Fleet Collection Residential Launched The Working Implementing Reducing Casella roll-off optimization working profitability –Waste to continued cost volatility additional an pricing and improve market SRA Systems fleet of tocommercial operations further programs fee ––pl
Slide 13: Creating Customer Focus: Resource Solutions
3(1)Creating Customer Focus Experiencing CS Zero-Sort® Mature Recycling Reshaping Casella Business Working revenues onfacilities operates Organics Shipped with model creating Solutions volumes incremental business WasteRecycling up strong partners +28% is6operating tons resource primarily Zero-Sort
Slide 14: Improving Balance Sheet and Free Cash Flow
4Casella Improving July Dec Feb Mar Focused Focus (1) 2015 2012 2013 2014 2015over onWaste US on last improving –– refinanced improving sold completed GreenFiber Maine 50% CARES Systems /stake BioFuels years 2 1operating balance sheet 14 and 2Senior Free on environmental Energy sold assets for in Ca
Slide 15: Balance Sheet Strategy and Free Cash Flow
(1) Strategy Balance Revenue $530 Adj. 20.0% $97.9 $107 $95.1 $87.8 Free FYE $(12.2) $1.3 $6.4 $14 to $18 EBITDA Cash FYE $520 to $103 19.3% (2) Please Casella sheet Please focused ($mm) Flow LTM Waste 19.1% heet &refer refer 2015 ($mm) Normalized Margin onclean-up Systems to driving theto 18.5% 4/3
Slide 16: Casella's Valuable Management Focus
Casella’s Valuable Management Results Near Driving Creating Improving Casella term Waste demonstrate profitability value integrated value focus landfill balance focused Systems through drivers of returns; team: sheet solid strong ofon16 Resource collection & increasing waste execution reducing asset
Slide 17: Additional Information
Additional This directors Meeting Company’s filed the direct STOCKHOLDERS ACCOMPANYING CONTAIN documents www.casella.com, Casella solicitation presentation with orWaste of indirect and the Information filed Stockholders. IMPORTANT proxy certain SEC. Systems ofby interests, may proxies statement by T
Slide 18: Appendix
Casella Waste Systems 18 Appendix
Slide 19: Adjusted EBITDA Reconciliation
Reconciliation ($ Net Revenue Loss (Benefit) Depreciation Other Severance Expense Gain Environmental Asset Development Tax Depletion Interest Adjusted Fiscal April March 2013 4,480 (2,526) 41,429 56,576 23,501 3,709 -1,410 679 9,372 $3,675 19.3% Casella 378 (1,058) — 400 7,455 1,394 455,335 (54,463)
Slide 20: Free Cash Flow Reconciliation
Reconciliation ($ Net Capital Payments Proceeds Contributions Free Landfill New Normalized Fiscal April 2013 (53,281) (6,261) -883 $2,531 11,215 7,381 (i) (ii) Rockland, Casella —43,906 (12,222) 6,372 in Includes Includes Cash 1,524 4,550 Cash thousands) contract 2014 30, — Year expenditures (6,505)