Casella Waste Systems (CWST), a solid waste, recycling and resource management services company, saw its loss widen to $0.29 million or $0.01 a share for the quarter ended Jul. 31, 2014. In the previous year period, the company disclosed a loss of $0.19 million. Analysts on average had predicted net loss of $0.01 a share.
Revenue during the first-quarter grew 9.98 percent to $141.39 million from $128.56 million in the last year period.
Gross margin contracted by 108 basis points over the previous year period to 30.14 percent. That has resulted in contraction of 97 basis points in operating margins to 6.60 percent.
The company disclosed operating income of $9.34 million, compared with $9.74 million in the last year period.
''We had a solid first quarter, with positive results primarily driven by management's continued execution of our four key strategies - sourcing incremental landfill volumes; improving collection route profitability; furthering our long-term Eastern region strategy to improve our business positioning and margins; and driving revenue growth through our customer solutions offerings,'' said John W. Casella, chairman and chief executive officer of Casella Waste Systems.
The comapny expects revenues between $356 million and $366 million, as compared to $340.1 million for the 8-month period ended Dec. 31, 2013.
Cash Flow
Casella Waste Systems has generated cash of $13.58 million from operating activities during the quarter, down 30.45 percent or $5.94 million when compared with the last year period.
The company has spent $17.72 million cash to meet investing activities during the quarter, as against cash outgo of $18.35 million in the last year period. It has made net capital expenditure of $16.72 million during the quarter, which was higher by 27.39 percent or $3.60 million, from a year ago.
The company has generated cash of $4.19 million from financing activities during the quarter, up 2,550 percent or $4.03 million, when compared with the last year period. It has borrowed net of $3.99 million through debt during the quarter. It has raised net of $0.14 million by selling common stocks.
As on Jul. 31, 2014, the company's cash balance stood at $2.60 million, down 11.10 percent or $0.32 million from Jul. 31, 2013.
Working Capital
Casella Waste Systems working capital remained negative at $11.57 million on Jul. 31, 2014, compared with negative $23.94 million on Jul. 31, 2013. It registered an increase in current ratio to 0.87 as at Jul. 31, 2014 from 0.76 on Jul. 31, 2013.
Debt Position
Casella Waste Systems has witnessed an increase in the total debt over the last one year. As on Jul. 31, 2014, total debt stood at $512.07 million, up 2.95 percent or $14.65 million, from Jul. 31, 2013. The company's total debt was 77.99 percent of total assets as on Jul. 31, 2014, compared with 73.72 percent on Jul. 31, 2013.
Shares of the company gained $0.07 or 1.50 percent to settle at $4.75 on Wednesday.
