Casella Waste Systems, Inc., a regional solid waste, recycling and resource management services company, reported its financial results for the three and six-month periods ended June 30, 2024.
Key highlights:
- Revenues were $377.2 million for the quarter, up $87.5 million, or up 30.2 percent, from the same period in 2023.
- Solid waste pricing for the quarter was up 5.7 percent from the same period in 2023, driven by 6.2 percent collection price growth and 4.8 percent disposal price growth.
- Net income was $7.0 million for the quarter, up $1.5 million, or up 27.6 percent, from the same period in 2023.
- Adjusted EBITDA, a non-GAAP measure, was $91.6 million for the quarter, up $19.4 million, or up 26.9 percent, from the same period in 2023.
- Acquired five businesses through August 1, 2024 with over $100 million in aggregate annualized revenues, including LMR Disposal, Inc. and Whitetail Disposal, Inc. in the Mid-Atlantic region.
“We continued to execute on our core operating strategies in the second quarter and have driven solid year-to-date performance,” said John W. Casella, chairman and chief executive officer of Casella Waste Systems, Inc. “The growth in our business, both organically and through acquisitions, positions us well for the second half of the year.”
“Since the end of the second quarter, we acquired two high quality companies in the Mid-Atlantic region that expand and densify our operations in this market and offer exciting growth opportunities,” Casella said. “We would like to welcome our new team members and customers, and we look forward to continuing to deliver a high level of service. As we build scale in this market, we see further value creation opportunity through cost efficiencies and our differentiated service offerings. Our M&A pipeline remains robust across our entire footprint with potential to close on more acquisitions this year.”
For the quarter, revenues were $377.2 million, up $87.5 million, or up 30.2 percent, from the same period in 2023, with revenue growth mainly driven by: the rollover contribution from acquisitions closed in 2023; strong collection and disposal pricing; and higher recycling commodity prices.
Operating income was $23.0 million for the quarter, up $0.4 million, or up 1.8 percent, from the same period in 2023.
Net income was $7.0 million for the quarter, or $0.12 per diluted common share, as compared to net income of $5.5 million, or $0.10 per diluted common share, for the same period in 2023. Adjusted Net Income, a non-GAAP measure, was $12.5 million for the quarter, or $0.22 Adjusted Diluted Earnings Per Common Share, a non-GAAP measure, as compared to Adjusted Net Income of $18.8 million, or $0.36 Adjusted Diluted Earnings Per Common Share, for the same period in 2023. Adjusted EBITDA was $91.6 million for the quarter, up $19.4 million, or up 26.9 percent, from the same period in 2023, driven by acquisition rollover and 6.0 percent organic growth.
Net cash provided by operating activities was $79.8 million for the year-to-date period, as compared to $83.2 million for the same period in 2023, with the year-over-year variance mainly attributable to higher cash interest payments and negative changes in working capital. Adjusted Free Cash Flow was $39.5 million for the year-to-date period, as compared to $47.9 million for the same period in 2023, with the year-over-year variance further driven by higher capital expenditures.