SUBSIDIARY GUARANTORS

9 Months Ended

Jan. 31, 2012

SUBSIDIARY GUARANTORS

SUBSIDIARY GUARANTORS

17.          SUBSIDIARY GUARANTORS

Our 2019 Notes and Second Lien 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 Second Lien Notes and the Parent has no independent assets or operations. The information which follows presents the condensed consolidating financial position as of January 31, 2012 and April 30, 2011, the condensed consolidating results of operations for the three and nine months ended January 31, 2012 and 2011, and the condensed consolidating statements of cash flows for the nine months ended January 31, 2012 and 2011 of (a) the Parent company only, (b) the combined guarantors (the “Guarantors”), each of which is 100% wholly-owned by the Parent, (c) the combined non-guarantors (the “Non-Guarantors”), (d) eliminating entries and (e) the consolidated total.

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JANUARY 31, 2012

(in thousands, except for share and per share data)

ASSETS	Parent		Guarantors			Non- Guarantors			Elimination			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	942	$	138		$	51		$	—		$	1,131
Accounts receivable - trade, net of allowance for doubtful accounts	24		48,008			—			—			48,032
Refundable income taxes	1,284		—			—			—			1,284
Deferred income taxes	2,860		—			—			—			2,860
Other current assets	2,529		8,959			—			—			11,488
Total current assets	7,639		57,105			51			—			64,795
Property, plant and equipment, net of accumulated depreciation and amortization	4,424		454,586			2,894			—			461,904
Goodwill	—		101,773			—			—			101,773
Intangible assets	362		2,777			—			—			3,139
Restricted assets	—		400			—			—			400
Notes receivable - related party/employee	721		—			—			—			721
Investments in unconsolidated entities	15,486		8,199			—			(1,932		)	21,753
Investments in subsidiaries	38,046		—			—			(38,046		)	—
Other non-current assets	14,202		5,682			—			—			19,884
	73,241		573,417			2,894			(39,978		)	609,574
Intercompany receivable	502,572		(489,082		)	(15,422		)	1,932			—
	$	583,452	$	141,440		$	(12,477	)	$	(38,046	)	$	674,369

LIABILITIES AND STOCKHOLDERS’ EQUITY	Parent			Guarantors		Non - Guarantors			Elimination			Consolidated
CURRENT LIABILITIES:
Current maturities of long-term debt and capital leases	$	139		$	1,074	$	—		$	—		$	1,213
Current maturities of financing lease obligations	—			332		—			—			332
Accounts payable	22,235			23,017		—			—			45,252
Current accrued capping, closure and post-closure costs	—			4,665		3			—			4,668
Other current liabilities	17,368			15,357		—			—			32,725
Total current liabilities	39,742			44,445		3			—			84,190
Long-term debt and capital leases, less current maturities	469,213			1,624		—			—			470,837
Financing lease obligations, less current maturities	—			1,904		—			—			1,904
Accrued capping, closure and post-closure costs, less current portion	—			35,261		40			—			35,301
Deferred income taxes	4,133			—		—			—			4,133
Other long-term liabilities	5,448			6,196		—			—			11,644
STOCKHOLDERS’ EQUITY:
Casella Waste Systems, Inc. stockholders’ equity:
Class A common stock -
Authorized - 100,000,000 shares, $0.01 par value per share, issued and outstanding - 25,987,000 shares	260			100		—			(100		)	260
Class B common stock -
Authorized - 1,000,000 shares, $0.01 par value per share, 10 votesper share, issued and outstanding - 988,000 shares	10			—		—			—			10
Accumulated other comprehensive (loss) income	(2,054		)	433		—			(433		)	(2,054		)
Additional paid-in capital	287,810			48,078		1,622			(49,700		)	287,810
Accumulated deficit	(221,110		)	3,399		(15,586		)	12,187			(221,110		)
Total Casella Waste Systems, Inc. stockholders’ equity	64,916			52,010		(13,964		)	(38,046		)	64,916
Noncontrolling interest	—			—		1,444			—			1,444
Total stockholders’ equity	64,916			52,010		(12,520		)	(38,046		)	66,360
	$	583,452		$	141,440	$	(12,477	)	$	(38,046	)	$	674,369

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF APRIL 30, 2011

(in thousands, except for share and per share data)

ASSETS	Parent		Guarantors			Non- Guarantors			Elimination			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	1,531	$	286		$	—		$	—		$	1,817
Accounts receivable - trade, net of allowance for doubtful accounts	1,243		53,671			—			—			54,914
Deferred income taxes	5,600		—			—			—			5,600
Other current assets	1,653		8,421			—			—			10,074
Total current assets	10,027		62,378			—			—			72,405
Property, plant and equipment, net of accumulated depreciation and amortization	4,473		448,888			—			—			453,361
Goodwill	—		101,204			—			—			101,204
Intangible assets	430		2,025			—			—			2,455
Restricted assets	—		334			—			—			334
Notes receivable - related party/employee	1,297		—			—			—			1,297
Investments in unconsolidated entities	15,125		25,070			—			(1,932		)	38,263
Investments in subsidiaries	56,426		—			—			(56,426		)	—
Other non-current assets	16,204		5,058			—			—			21,262
	93,955		582,579			—			(58,358		)	618,176
Intercompany receivable	493,823		(480,333		)	(15,422		)	1,932			—
	$	597,805	$	164,624		$	(15,422	)	$	(56,426	)	$	690,581

LIABILITIES AND STOCKHOLDERS’ EQUITY	Parent			Guarantors		Non - Guarantors			Elimination			Consolidated
CURRENT LIABILITIES:
Current maturities of long-term debt and capital leases	$	132		$	1,085	$	—		$	—		$	1,217
Current maturities of financing lease obligations	—			316		—			—			316
Accounts payable	12,885			29,614		—			—			42,499
Current accrued capping, closure and post-closure costs	—			1,699		3			—			1,702
Income taxes payable	3,786			—		—			—			3,786
Other current liabilities	19,814			14,587		—			—			34,401
Total current liabilities	36,617			47,301		3			—			83,921
Long-term debt and capital leases, less current maturities	458,963			2,455		—			—			461,418
Financing lease obligations, less current maturities	—			2,156		—			—			2,156
Accrued capping, closure and post-closure costs, less current portion	—			34,668		37			—			34,705
Deferred income taxes	5,578			—		—			—			5,578
Other long-term liabilities	2,660			6,156		—			—			8,816
STOCKHOLDERS’ EQUITY:
Class A common stock -
Authorized - 100,000,000 shares, $0.01 par value per share, issued and outstanding - 25,589,000 shares	256			100		—			(100		)	256
Class B common stock -
Authorized - 1,000,000 shares, $0.01 par value per share, 10 votes per share, issued and outstanding - 988,000 shares	10			—		—			—			10
Accumulated other comprehensive (loss) income	378			418		—			(418		)	378
Additional paid-in capital	285,992			48,078		120			(48,198		)	285,992
Accumulated deficit	(192,649		)	23,292		(15,582		)	(7,710		)	(192,649		)
Total stockholders’ equity	93,987			71,888		(15,462		)	(56,426		)	93,987
	$	597,805		$	164,624	$	(15,422	)	$	(56,426	)	$	690,581

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

THREE MONTHS ENDED JANUARY 31, 2012

(in thousands)

	Parent			Guarantors			Non - Guarantors			Elimination			Consolidated
Revenues	$	—		$	114,578		$	—		$	—		$	114,578
Operating expenses:
Cost of operations	20			81,377			1			—			81,398
General and administration	8			13,924			1			—			13,933
Depreciation and amortization	367			14,460			—			—			14,827
	395			109,761			2			—			110,158
Operating (loss) income	(395		)	4,817			(2		)	—			4,420
Other expense/(income), net:
Interest income	(9,798		)	(19		)	—			9,797			(20		)
Interest expense	11,523			9,802			—			(9,797		)	11,528
Loss from equity method investments	21,940			6,383			—			(21,940		)	6,383
Impairment of equity method investment	—			10,680			—			—			10,680
Other income	(26		)	(91		)	—			—			(117		)
Other expense, net	23,639			26,755			—			(21,940		)	28,454
Loss from continuing operations before income taxes	(24,034		)	(21,938		)	(2		)	21,940			(24,034		)
Provision for income taxes	601			—			—			—			601
Net loss attributable to common stockholders	$	(24,635	)	$	(21,938	)	$	(2	)	$	21,940		$	(24,635	)

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

THREE MONTHS ENDED JANUARY 31, 2011

(in thousands)

	Parent			Guarantors			Non - Guarantors			Elimination			Consolidated
Revenues	$	—		$	111,627		$	—		$	—		$	111,627
Operating expenses:
Cost of operations	14			76,918			1			—			76,933
General and administration	539			14,293			—			—			14,832
Depreciation and amortization	399			13,174			—			—			13,573
	952			104,385			1			—			105,338
Operating (loss) income	(952		)	7,242			(1		)	—			6,289
Other expense/(income), net:
Interest income	(7,747		)	(9		)	—			7,741			(15		)
Interest expense	14,715			4,689			—			(7,741		)	11,663
Income from equity method investments	(2,643		)	(102		)	—			2,643			(102		)
Other expense, net	9			28			—			—			37
Other expense, net	4,334			4,606			—			2,643			11,583
Loss from continuing operations before income taxes	(5,286		)	2,636			(1		)	(2,643		)	(5,294		)
Provision for income taxes	1,079			—			—			—			1,079
Loss from continuing operations	(6,365		)	2,636			(1		)	(2,643		)	(6,373		)
Discontinued operations:
Income from discontinued operations, net	—			1,376			—			—			1,376
Loss on disposal of discontinued operations, net	—			(1,368		)	—			—			(1,368		)
Net loss attributable to common stockholders	$	(6,365	)	$	2,644		$	(1	)	$	(2,643	)	$	(6,365	)

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

NINE MONTHS ENDED JANUARY 31, 2012

(in thousands)

	Parent			Guarantors			Non - Guarantors			Elimination			Consolidated
Revenues	$	—		$	371,637		$	—		$	—		$	371,637
Operating expenses:
Cost of operations	49			253,196			3			—			253,248
General and administration	421			45,780			1			—			46,202
Depreciation and amortization	1,041			43,353			—			—			44,394
Legal settlement	1,000			359			—			—			1,359
Development project charge	—			131			—			—			131
	2,511			342,819			4			—			345,334
Operating (loss) income	(2,511		)	28,818			(4		)	—			26,303
Other expense/(income), net:
Interest income	(29,515		)	(25		)	—			29,508			(32		)
Interest expense	33,982			29,423			—			(29,508		)	33,897
Loss from equity method investments	20,386			10,163			—			(20,386		)	10,163
Impairment of equity method investment	—			10,680			—			—			10,680
Other income	(233		)	(316		)	—			—			(549		)
Other expense, net	24,620			49,925			—			(20,386		)	54,159
Loss from continuing operations before income taxes	(27,131		)	(21,107		)	(4		)	20,386			(27,856		)
Provision for income taxes	1,330			—			—			—			1,330
Loss from continuing operations	(28,461		)	(21,107		)	(4		)	20,386			(29,186		)
Discontinued operations:
Gain on disposal of discontinued operations, net	—			725			—			—			725
Net loss attributable to common stockholders	$	(28,461	)	$	(20,382	)	$	(4	)	$	20,386		$	(28,461	)

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

NINE MONTHS ENDED JANUARY 31, 2011

(in thousands)

	Parent			Guarantors			Non - Guarantors			Elimination			Consolidated
Revenues	$	—		$	356,515		$	—		$	—		$	356,515
Operating expenses:
Cost of operations	28			237,554			2			—			237,584
General and administration	(903		)	47,346			3			—			46,446
Depreciation and amortization	1,180			43,596			—			—			44,776
Gain on sale of assets	—			(3,502		)	—			—			(3,502		)
	305			324,994			5			—			325,304
Operating (loss) income	(305		)	31,521			(5		)	—			31,211
Other expense/(income), net:
Interest income	(23,761		)	(23		)	—			23,743			(41		)
Interest expense	43,765			15,051			—			(23,743		)	35,073
(Income) loss from equity method investments	(11,912		)	2,536			—			11,912			2,536
Other income, net	(115		)	(260		)	—			—			(375		)
Other expense, net	7,977			17,304			—			11,912			37,193
Loss from continuing operations before income taxes	(8,282		)	14,217			(5		)	(11,912		)	(5,982		)
Provision for income taxes	2,139			—			—			—			2,139
Loss from continuing operations	(10,421		)	14,217			(5		)	(11,912		)	(8,121		)
Discontinued operations:
Loss from discontinued operations, net	—			(316		)	—			—			(316		)
Loss on disposal of discontinued operations, net	—			(1,984		)	—			—			(1,984		)
Net loss attributable to common stockholders	$	(10,421	)	$	11,917		$	(5	)	$	(11,912	)	$	(10,421	)

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED JANUARY 31, 2012

(in thousands)

	Parent			Guarantors			Non-Guarantors			Elimination		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	1,390		$	48,353		$	(1	)	$	—	$	49,742
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired	—			(2,102		)	—			—		(2,102		)
Additions to property, plant and equipment
— acquisitions	—			(168		)	—			—		(168		)
— growth	—			(8,209		)	(1,624		)	—		(9,833		)
— maintenance	(977		)	(38,302		)	—			—		(39,279		)
Payments on landfill operating lease contracts	—			(6,052		)	—			—		(6,052		)
Proceeds from sale of property and equipment	—			1,337			—			—		1,337
Other	(1,863		)	(3,785		)	1,502			—		(4,145		)
Net Cash Used In Investing Activities	(2,840		)	(57,281		)	(122		)	—		(60,243		)
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	127,900			—			—			—		127,900
Principal payments on long-term debt	(118,356		)	(1,077		)	—			—		(119,433		)
Other	449			—			174			—		623
Intercompany borrowings	(9,132		)	9,132			—			—		—
Net Cash Provided by Financing Activities	861			8,055			174			—		9,090
Cash Provided by Discontinued Operations	—			725			—			—		725
Net (decrease) increase in cash and cash equivalents	(589		)	(148		)	51			—		(686		)
Cash and cash equivalents, beginning of period	1,531			286			—			—		1,817
Cash and cash equivalents, end of period	$	942		$	138		$	51		$	—	$	1,131

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED JANUARY 31, 2011

(in thousands)

	Parent			Guarantors			Non-Guarantors		Elimination		Consolidated
Net Cash (Used in) Provided by Operating Activities	$	(15,174	)	$	61,032		$	—	$	—	$	45,858
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired	—			—			—		—		—
Additions to property, plant and equipment
— growth	—			(1,175		)	—		—		(1,175		)
— maintenance	(1,321		)	(38,947		)	—		—		(40,268		)
Payments on landfill operating lease contracts	—			(4,977		)	—		—		(4,977		)
Proceeds from sale of property and equipment	—			7,533			—		—		7,533
Other	—			631			—		—		631
Net Cash Used In Investing Activities	(1,321		)	(36,935		)	—		—		(38,256		)
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	134,100			—			—		—		134,100
Principal payments on long-term debt	(125,687		)	(10,662		)	—		—		(136,349		)
Other	(6		)	200			—		—		194
Intercompany borrowings	12,106			(12,106		)	—		—		—
Net Cash Provided by (Used in) Financing Activities	20,513			(22,568		)	—		—		(2,055		)
Cash Used in Discontinued Operations	—			(2,051		)	—		—		(2,051		)
Net increase (decrease) in cash and cash equivalents	4,018			(522		)	—		—		3,496
Cash and cash equivalents, beginning of period	1,234			801			—		—		2,035
Cash and cash equivalents, end of period	$	5,252		$	279		$	—	$	—	$	5,531