XML 74 R20.htm IDEA: XBRL DOCUMENT v2.4.1.9
Subsidiary Guarantors
3 Months Ended
Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Subsidiary Guarantors
13. SUBSIDIARY GUARANTORS

Our 2019 Notes are guaranteed jointly and severally, fully and unconditionally, by our significant wholly-owned subsidiaries. The Parent is the issuer and a non-guarantor of the 2019 Notes and the Parent has no independent assets or operations. The information which follows presents the condensed consolidating financial position as of March 31, 2015 and December 31, 2014, the consolidating results of operations and comprehensive income (loss) for the three months ended March 31, 2015 and 2014, and the condensed consolidating statements of cash flows for the three months ended March 31, 2015 and 2014 of (a) the Parent company only, (b) the combined guarantors (“Guarantors”), each of which is 100% wholly-owned by the Parent, (c) the combined non-guarantors (“Non-Guarantors”), (d) eliminating entries and (e) the consolidated total.

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2015

(in thousands)

 

ASSETS

  Parent     Guarantors     Non-
Guarantors
    Elimination     Consolidated  

CURRENT ASSETS:

         

Cash and cash equivalents

  $ 2,441      $ 223      $ 393      $ —        $ 3,057   

Accounts receivable - trade, net

    392        52,047        74        —          52,513   

Refundable income taxes

    526        —          —          —          526   

Prepaid expenses

    2,139        4,955        2        —          7,096   

Inventory

    —          4,418        —          —          4,418   

Deferred income taxes

    2,012        —          —          —          2,012   

Other current assets

    296        3,103        8        —          3,407   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

  7,806      64,746      477      —        73,029   

Property, plant and equipment, net

  5,366      399,087      —        —        404,453   

Goodwill

  —        119,170      —        —        119,170   

Intangible assets, net

  76      10,994      —        —        11,070   

Restricted assets

  1,733      821      —        —        2,554   

Cost method investments

  14,432      1,932      —        (1,932   14,432   

Investments in subsidiaries

  (9,519   —        —        9,519      —     

Other non-current assets

  19,613      10,083      —        —        29,696   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  31,701      542,087      —        7,587      581,375   

Intercompany receivable

  520,428      (483,467   (38,893   1,932      —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 559,935    $ 123,366    $ (38,416 $ 9,519    $ 654,404   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

  Parent     Guarantors     Non-
Guarantors
    Elimination     Consolidated  

CURRENT LIABILITIES:

         

Current maturities of long-term debt and capital leases

  $ 91      $ 1,366      $ —        $ —        $ 1,457   

Accounts payable

    5,632        33,458        320        —          39,410   

Accrued payroll and related expenses

    681        3,453        2        —          4,136   

Accrued interest

    4,931        14        —          —          4,945   

Current accrued capping, closure and post-closure costs

    —          1,982        3        —          1,985   

Other accrued liabilities

    9,638        6,553        9        —          16,200   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

  20,973      46,826      334      —        68,133   

Long-term debt and capital leases, less current maturities

  544,291      1,151      —        —        545,442   

Accrued capping, closure and post-closure costs, less current portion

  —        38,576      33      —        38,609   

Deferred income taxes

  6,948      —        —        —        6,948   

Other long-term liabilities

  8,625      7,424      79      —        16,128   

STOCKHOLDERS’ (DEFICIT) EQUITY:

Casella Waste Systems, Inc. stockholders (deficit)’ equity

  (20,902   29,389      (38,908   9,519      (20,902

Noncontrolling interests

  —        —        46      —        46   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ (deficit) equity

  (20,902   29,389      (38,862   9,519      (20,856
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 559,935    $ 123,366    $ (38,416 $ 9,519    $ 654,404   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2014

(in thousands)

 

ASSETS

  Parent     Guarantors     Non-Guarantors     Elimination     Consolidated  

CURRENT ASSETS:

         

Cash and cash equivalents

  $ 1,596      $ 253      $ 356      $ —        $ 2,205   

Restricted cash

    —          76        —          —          76   

Accounts receivable - trade, net

    597        55,053        100        —          55,750   

Refundable income taxes

    554        —          —          —          554   

Prepaid expenses

    3,622        5,136        5        —          8,763   

Inventory

    —          4,345        29        —          4,374   

Deferred income taxes

    2,095        —          —          —          2,095   

Other current assets

    296        4,549        7        —          4,852   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

  8,760      69,412      497      —        78,669   

Property, plant and equipment, net

  5,049      408,843      650      —        414,542   

Goodwill

  —        119,170      —        —        119,170   

Intangible assets, net

  98      11,710      —        —        11,808   

Restricted assets

  5,819      813      —        —        6,632   

Cost method investments

  14,432      1,932      —        (1,932   14,432   

Investments in subsidiaries

  (9,888   —        —        9,888      —     

Other non-current assets

  14,611      9,931      —        —        24,542   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  30,121      552,399      650      7,956      591,126   

Intercompany receivable

  537,228      (500,267   (38,893   1,932      —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 576,109    $ 121,544    $ (37,746 $ 9,888    $ 669,795   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

  Parent     Guarantors     Non-Guarantors     Elimination     Consolidated  

CURRENT LIABILITIES:

         

Current maturities of long-term debt and capital leases

  $ 89      $ 1,567      $ —        $ —        $ 1,656   

Accounts payable

    17,953        30,040        525        —          48,518   

Accrued payroll and related expenses

    1,536        4,751        2        —          6,289   

Accrued interest

    11,083        11        —          —          11,094   

Current accrued capping, closure and post-closure costs

    —          2,205        3        —          2,208   

Other accrued liabilities

    8,618        7,957        92        —          16,667   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

  39,279      46,531      622      —        86,432   

Long-term debt and capital leases, less current maturities

  532,889      1,166      —        —        534,055   

Accrued capping, closure and post-closure costs, less current portion

  —        37,589      32      —        37,621   

Deferred income taxes

  7,080      —        —        —        7,080   

Other long-term liabilities

  9,114      7,433      80      —        16,627   

STOCKHOLDERS’ (DEFICIT) EQUITY:

Casella Waste Systems, Inc. stockholders (deficit)’ equity

  (12,253   28,825      (38,713   9,888      (12,253

Noncontrolling interests

  —        —        233      —        233   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ (deficit) equity

  (12,253   28,825      (38,480   9,888      (12,020
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
$ 576,109    $ 121,544    $ (37,746 $ 9,888    $ 669,795   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2015

(in thousands)

 

     Parent     Guarantors     Non-
Guarantors
    Elimination     Consolidated  

Revenues

   $ —        $ 116,453      $ 124      $ —        $ 116,577   

Operating expenses:

          

Cost of operations

     (83     87,679        237        —          87,833   

General and administration

     (117     16,938        (16     —          16,805   

Depreciation and amortization

     223        13,525        —          —          13,748   

Divestiture transactions

     —          (2,085     (2,850     —          (4,935
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  23      116,057      (2,629   —        113,451   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

  (23   396      2,753      —        3,126   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other expense (income), net:

Interest income

  (47   (94   —        —        (141

Interest expense

  9,988      53      85      —        10,126   

Loss on debt extinguishment

  521      —        —        —        521   

(Income) loss on derivative instruments

  151      —        —        —        151   

(Income) loss from consolidated entities

  (1,924   —        —        1,924      —     

Other income

  (37   (127   —        —        (164
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other expense (income), net

  8,652      (168   85      1,924      10,493   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  (8,675   564      2,668      (1,924   (7,367

Provision (benefit) for income taxes

  596      —        —        —        596   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  (9,271   564      2,668      (1,924   (7,963
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

  —        —        1,308      —        1,308   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common stockholders

$ (9,271 $ 564    $ 1,360    $ (1,924 $ (9,271
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2014

(in thousands)

 

    Parent     Guarantors     Non-
Guarantors
    Elimination     Consolidated  

Revenues

  $ —        $ 112,933      $ 264      $ —        $ 113,197   

Operating expenses:

         

Cost of operations

    (44     86,002        446        —          86,404   

General and administration

    1,007        15,375        5        —          16,387   

Depreciation and amortization

    266        13,146        196        —          13,608   

Development project charge

    —          1,440        —          —          1,440   

Severance and reorganization costs

    —          80        —          —          80   

Expense from divestiture, acquisition and financing costs

    —          10        —          —          10   

Gain on settlement of acquisition related contingent consideration

    —          (1,058     —          —          (1,058
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  1,229      114,995      647      —        116,871   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

  (1,229   (2,062   (383   —        (3,674
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other expense (income), net:

Interest income

  (2   (108   —        —        (110

Interest expense

  9,580      26      —        —        9,606   

(Income) loss on derivative instruments

  150      —        —        —        150   

(Income) loss from equity method investments

  —        (27   —        —        (27

(Gain) loss on sale of equity method investment

  —        —        221      —        221   

(Income) loss from consolidated entities

  2,173      —        —        (2,173   —     

Other income

  (10   (197   —        —        (207
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other expense (income), net

  11,891      (306   221      (2,173   9,633   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  (13,120   (1,756   (604   2,173      (13,307

Provision (benefit) for income taxes

  303      —        —        —        303   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  (13,423   (1,756   (604   2,173      (13,610
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

  —        —        (187   —        (187
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common stockholders

$ (13,423 $ (1,756 $ (417 $ 2,173    $ (13,423
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED MARCH 31, 2015

(in thousands)

 

    Parent     Guarantors     Non-
Guarantors
    Elimination     Consolidated  

Net income (loss)

  $ (9,271   $ 564      $ 2,668      $ (1,924   $ (7,963

Other comprehensive income (loss), net of tax:

         

Unrealized gain (loss) resulting from changes in fair value of marketable securities

    —          (34     —          —          (34
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

  —        (34   —        —        (34
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income (loss)

  (9,271   530      2,668      (1,924   (7,997

Less: Comprehensive income (loss) attributable to noncontrolling interests

  —        —        1,308      —        1,308   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income (loss) attributable to common stockholders

$ (9,271 $ 530    $ 1,360    $ (1,924 $ (9,305
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED MARCH 31, 2014

(in thousands)

 

    Parent     Guarantors     Non-
Guarantors
    Elimination     Consolidated  

Net income (loss)

  $ (13,423   $ (1,756   $ (604   $ 2,173      $ (13,610

Other comprehensive income (loss), net of tax:

         

Unrealized gain (loss) resulting from changes in fair value of marketable securities

    —          (3     —          —          (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

  —        (3   —        —        (3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income (loss)

  (13,423   (1,759   (604   2,173      (13,613

Less: Comprehensive income (loss) attributable to noncontrolling interests

  —        —        (187   —        (187
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income (loss) attributable to common stockholders

$ (13,423 $ (1,759 $ (417 $ 2,173    $ (13,426
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2015

(in thousands)

 

     Parent     Guarantors     Non-Guarantors     Elimination      Consolidated  

Net cash provided by (used in) operating activities

   $ (10,886   $ 5,604      $ (413   $ —         $ (5,695
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash Flows from Investing Activities:

Additions to property, plant and equipment

  (516   (3,928   —        —        (4,444

Payments on landfill operating lease contracts

  —        (478   —        —        (478

Payments related to investments

  —        1,555      (1,555   —        —     

Proceeds from divestiture transactions

  —        1,050      3,500      —        4,550   

Proceeds from sale of property and equipment

  —        89      —        —        89   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash provided by (used in) investing activities

  (516   (1,712   1,945      —        (283

Cash Flows from Financing Activities:

Proceeds from long-term borrowings

  197,573      18      —        —        197,591   

Principal payments on long-term debt

  (186,267   (233   —        —        (186,500

Change in restricted cash

  4,086      —        —        —        4,086   

Payments of financing costs

  (6,852   —        —        —        (6,852

Distributions to nonctonrolling interest holder

  —        —        (1,495   —        (1,495

Intercompany borrowings

  3,707      (3,707   —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net cash provided by (used in) financing activities

  12,247      (3,922   (1,495   —        6,830   

Net increase (decrease) in cash and cash equivalents

  845      (30   37      —        852   

Cash and cash equivalents, beginning of period

  1,596      253      356      —        2,205   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cash and cash equivalents, end of period

$ 2,441    $ 223    $ 393    $ —      $ 3,057   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2014

(in thousands)

 

    Parent     Guarantors     Non-Guarantors     Elimination     Consolidated  

Net cash provided by (used in) operating activities

  $ (5,327   $ 6,799      $ (111   $ —        $ 1,361   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

Acquisitions, net of cash acquired

  —        214      —        —        214   

Acquisition related additions to property, plant and equipment

  —        (79   —        —        (79

Additions to property, plant and equipment

  (256   (7,221   —        —        (7,477

Payments on landfill operating lease contracts

  —        (563   —        —        (563

Payments related to investments

  —        (84   —        —        (84

Proceeds from sale of property and equipment

  —        216      —        —        216   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

  (256   (7,517   —        —        (7,773

Cash Flows from Financing Activities:

Proceeds from long-term borrowings

  47,860      —        —        —        47,860   

Principal payments on long-term debt

  (41,120   (130   —        —        (41,250

Payments of financing costs

  (17   —        —        —        (17

Intercompany borrowings

  (718   718      —        —        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

  6,005      588      —        —        6,593   

Net cash provided by (used in) discontinued operations

  —        86      —        —        86   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

  422      (44   (111   —        267   

Cash and cash equivalents, beginning of period

  2,312      243      140      —        2,695   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

$ 2,734    $ 199    $ 29    $ —      $ 2,962