Casella Waste Systems Inc. F1Q10 (Qtr End 07/31/09) Earnings Call Transcript

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2009-09-03 12:50:50.0

Tags: Uptick, J.P. Morgan Chase & Co., Casella Waste Systems Inc., Call Transcript, Earnings, Question Obviously, Pricing, Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from Scott Levine - J.P. Morgan.

Scott Levine - J.P. Morgan

I think you characterized in the release and in your comments the seasonal activity or uptick, whatever you want to call it, as normal relative to prior years. I just wanted to confirm that that’s true. And without asking for quarterly guidance, which obviously you don’t give, if you could help us kind of understand if indeed the seasonality is typical. You know, maybe some thoughts with regard to how the quarters should play out. You know, any additional commentary you would be willing to give would be appreciated.

John W. Casella

Sure. There’s no question and one of the things that we went back and took the time to really take a look at and understand was in fact did we see the normal seasonal uptick. We compared this seasonal uptick against last year and it’s very consistent in terms of the percentages, in terms of the uptick, although obviously at a much lower level in terms of overall growth revenue. So the answer to the question is yes, we saw our normal seasonal uptick for the quarter. And I think it’s clear that you know obvious it’s tracking as expected as well. Nothing significant either way but its certainly tracking as expected.

Scott Levine - J.P. Morgan

Would you characterize that pattern as a pleasant surprise versus what you expected heading into the summer months? Or were you expecting the usual seasonality?

John W. Casella

You know to be honest with you I think that we were expecting that we would see some seasonal uptick. The real question obviously is you know we had no idea whether we would or not in the current economic environment. However, we did think that we would see a seasonal uptick and obviously we did, but at much lower volume levels because of the economic reality.

We were not surprised to see the seasonal uptick. We expected that we would have some seasonal uptick.

Scott Levine - J.P. Morgan

But what you saw relative to your expectations in line [audio impairment].

John W. Casella

Yes.

Scott Levine - J.P. Morgan

Turning to pricing, you know and positive territory for solid waste pricing which is good, could you comment on the competition, behavior of your third party customers within your various regions and is the easing of fuel prices or stability at a minimum maybe helping the competitive dynamic on the disposal side?

 

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