Casella Waste Systems, Inc. F3Q09 (Qtr End 01/31/09) Earnings Call Transcript

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2009-03-05 12:31:14.0

Tags: Operation, Cash Flow, Casella Waste Systems Inc., Call Transcript, Earnings, Operational Accounting, Personal Finance, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you sir. (Operator Instructions) And we will take our first question today from Bill Fisher with Raymond James.

Bill FisherRaymond James

Good morning.

John Casella

Good morning Bill.

Bill FisherRaymond James

Yes just a couple of things. One, I am sure you are not – remove away [ph] through the April ’10 budget or anything, but just big picture looking at the CapEx line item, just wanted to touch on what areas you would be looking at to enhance free cash flow, I think, the growth CapEx it sounds you are reducing your fleet size and then the long-haul, just see if you could touch on some areas you will be looking at?

John Casella

Sure. I think it is fair to say from the actions that we have already taken where we have clearly flexed out capital and we will continue to do so as we have in the third quarter, some of which is reflective of volumes, some of which is reflective of the operating changes that Paul was doing referred to the capital requirements are pretty significant in terms of the fleet that we had in place with – outsourcing now with MBI that is going to reduce our CapEx. And then on a go-forward basis we will look at what the needs are and continue to flex out capital in all of those areas where we can. Obviously we are also flexing in capital in terms of utilization of vehicles. We are going to eliminate, will be able to eliminate some capital expenditures associated with that as well. And certainly, we are looking at development projects as certainly something that can be flexed as well.

Bill FisherRaymond James

Okay. And then maybe along the same thing, on cash flow for Paul, just on the collection operations, obviously you have done a lot on that front, but just wondering if you look at specific operations, I assume you have some that generate cash and some that don’t. Is there any further opportunity to look at markets and make changes in that fashion?

Paul Larkin

There is Bill. You know that that process has been ongoing for quite some time. The last 12 months we’ve really looked at where the operation is today and where do we think we can take it. With all the work that we have done and where we think we can take it ultimately leads us to a decision point. There's more work to still be done there because we are really achieving tremendous improvements on the operating side. So, the bar is moving a little bit.

 

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