Casella Waste Systems Inc. reported stronger preliminary financial results for its third quarter, and also named Jim O’Connor its lead independent director on its board.
The Rutland, Vt.-based Casella posted higher net earnings and revenue for the period ended Sept.30, according to a news release. It will release final results Oct. 23.
It also named O’Connor, a current Casella director and the long-time CEO of Republic Services Inc., as lead independent director, succeeding Gregory Peters, who continues as a member of the Casella board.
Here are eight things to know about Casella’s latest financial results and corporate moves.
- Net income climbed 112.6 percent to $2.3 million, up $1.2 million from the same period in 2014. Operating income advanced 19.5 percent.
- Revenue increased 3 percent to $146.2 million, a hike of $4.3 million.
- The assessment of Chairman and CEO John Casella: "During our third quarter, we continued to execute well against our key strategies of increasing landfill returns, improving collection route profitability, creating incremental value through resource solutions, reducing financial and operational risks, and improving our balance sheet.” He said the company reduced leverage and accelerated free cash flow generation by retiring its highest cost debt.
- Solid waste pricing rose 2.9 percent, and the company’s operating efficiency improved with success in implementing its Sustainability Recycling Adjustment fee to offset lower recycling commodity prices.
- Casella Waste affirmed its previous guidance for the year. It expects earnings before interest, taxes, depreciation and amortization (EBITDA) of between $103 million and $107 million. Revenue guidance is between $525 million and $535 million.
- The naming of O’Connor reflects the company’s effort to recruit new independent directors with varying perspectives, experiences and competencies, the company said. O’Connor and William Hulligan were added as directors in the past four months. The independent director’s responsibilities include presiding at all meetings at which the chairman is not present and serving as a liaison between the chairman (and management) and the independent directors.
- Said John Casella of the move, “Jim’s appointment, the result of constructive input from our stockholders, is further evidence of our ongoing commitment to enhance the ability of our board to serve the long-term interests of stockholders.”
- The board move comes as the company gets closer to a proxy battle for its board of directors at its Nov. 6 meeting. Casella Waste wants its shareholders to re-elect its slate of existing directors, while investor JCP Investment Management LLC wants its two director candidates elected.