RUTLAND, Vt., March 5, 2014 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST ), a regional solid waste, recycling and resource management services company, announced today that it has been awarded a $7.0 million grant from the State of Pennsylvania to construct a rail siding and transfer station at its McKean County, Pa. landfill.
The grant, awarded by the Pennsylvania Department of Transportation's Bureau of Rail Freight, Ports & Waterways, will go toward funding a project undertaken by the company to construct new track and unloading facilities at the landfill, which is currently permitted to accept 5,000 tons per day by rail. The landfill's permit also allows disposal of 1,000 tons per day by truck. Our property abuts an existing rail line.
"This is great news on several fronts," John W. Casella, chairman and CEO of Casella Waste Systems, Inc., said. "First, it allows us to use rail transportation to more fully utilize this strategic asset's permitted capacity. We have a number of opportunities to pursue additional volumes, and rail transportation is a key advantage.
"Second, it is an economic win for Pennsylvania," Casella said. "This project will result in new jobs, and helps strengthen existing jobs at the facility. And, third, there are significant environmental and safety benefits as well, including potentially reduced truck traffic, diesel fuel consumption, and carbon monoxide and other emissions."
The grant provides for 70 percent of the total costs of the project, the company said. Casella will invest about $3.0 million, or 30 percent of the total costs as the project is built out.
"We're grateful for the strong support we received from McKean County and Sergeant Township officials, state Sen. Joe Scarnati, and state Rep. Martin Causer for our application," Casella said. "These elected officials, along with officials from the Pennsylvania DEP and the DOT, deeply appreciate the economic and environmental benefits of this project."
Casella Waste Systems bought the roughly 230-acre landfill out of bankruptcy proceedings in February 2011 for $0.5 million in cash and the assumption of certain contractual obligations.
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States. For further information, contact Ned Coletta, chief financial officer at (802) 772-2239, or Joe Fusco, vice president, at (802) 772-2247, or visit the company's website at http://www.casella.com .
Safe Harbor Statement
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as we "believe," "expect," "anticipate," "plan," "may," "will," "would," "intend," "estimate" and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the disposition and the industry and markets in which we operate and management's beliefs and assumptions. We cannot guarantee that we actually will achieve the plans, intentions or expectations disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of our operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in our forward-looking statements. Such risks and uncertainties include or relate to, among other things: we may be unable to access all of the grant money or the development of the rail siding and transfer infrastructure might require us to invest more than anticipated; we may be unable to increase the landfill volumes at appropriate pricing to fully utilize this new infrastructure; or other factors beyond the company's control. There are a number of other important risks and uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A, "Risk Factors" in our Form 10-K for the year ended April 30, 2013.
We undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Ned Coletta Chief Financial Officer (802) 772-2239 Joe Fusco Vice President (802) 772-2247 http://www.casella.com
