Casella Waste Systems, Inc., a regional solid waste, recycling and resource management services company, reported its financial results for the three and nine-month periods ended September 30, 2024.
Key Highlights:
- Revenues were $411.6 million for the quarter, up $58.9 million, or up 16.7 percent, from the same period in 2023.
- Solid waste pricing for the quarter was up 5.5 percent from the same period in 2023, driven by 6.1 percent collection price growth.
- Net income was $5.8 million for the quarter, down $(12.4) million, or down (68.2) percent, as compared to $18.2 million for the same period in 2023.
- Adjusted EBITDA, a non-GAAP measure, was $102.9 million for the quarter, up $13.3 million, or up 14.9 percent, from the same period in 2023.
- Net cash provided by operating activities was $171.6 million for the year-to-date period, up $13.8 million, or up 8.7 percent, as compared to $157.8 million for the same period in 2023.
- Adjusted Free Cash Flow, a non-GAAP measure, was $98.8 million for the year-to-date period, as compared to $94.3 million for the same period in 2023.
- Acquired six businesses year-to-date with over $200 million in aggregate annualized revenues, including Royal Carting and Welsh Sanitation (collectively, “Royal”) on October 1, 2024.
“We posted another solid quarter of execution against our growth strategies across our business,” said John W. Casella, chairman and chief executive officer of Casella Waste Systems, Inc. “The success of our operating plan, combined with our acquisition strategy, has allowed us to generate over $400 million in revenues and more than $100 million in Adjusted EBITDA in a quarter for the first time in the company’s history. Our entire team deserves recognition for their continued execution and hard work, which puts us on track for another successful year.”
“While we are executing well against our strategic plan, third quarter performance was mixed. Insurance expense accruals related to two discrete events impacted Adjusted EBITDA by over $3 million in the quarter, and we had a $2 million headwind from continued lower year-over-year landfill volumes, primarily construction and demolition materials, which we expect to abate next year. Together, these two items weighed on overall Adjusted EBITDA margins by 110 basis points,” Casella said.
For the quarter, revenues were $411.6 million, up $58.9 million, or up 16.7 percent, from the same period in 2023, with revenue growth mainly driven by: newly closed acquisitions along with the rollover impact from acquisitions closed in prior periods; strong collection and disposal pricing; and higher recycling commodity volumes and prices.
Operating income was $24.4 million for the quarter, down $(9.8) million, or down (28.7) percent, from the same period in 2023 as a result of an $8.5 million charge at the Town of Southbridge, Massachusetts landfill to revise accrued post-closure monitoring costs following receipt of increased requirements contained in the final closure permit; higher expense from acquisition activities; and higher depreciation and amortization expenses related to recently closed acquisitions.
Net income was $5.8 million for the quarter, or $0.10 per diluted common share, down $(12.4) million, or down (68.2) percent, as compared to net income of $18.2 million, or $0.31 per diluted common share, for the same period in 2023. Adjusted Net Income, a non-GAAP measure, was $15.9 million for the quarter, or $0.27.
Published December 2024
