Casella Waste Systems, Inc. (NASDAQ:CWST) Q2 2022 Earnings Conference Call July 29, 2022 10:00 AM ET Company Participants Joseph Fusco – Vice President Charlie Wohlhuter – Director-Investor Relations John Casella – Chairman and Chief Executive Officer Ned Coletta – President and Chief Financial Officer Sean Steves – Senior Vice President and Chief Operating Officer, Solid Waste Operations Jason Mead – Senior Vice President of Finance and Treasurer Conference Call Participants Tyler Brown – Raymond James Mic ...

PART I [Financial Statements](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited consolidated financial statements for Q2 2022 show total assets at **$1.37 billion**, revenues at **$283.7 million**, and net income at **$17.8 million**, with detailed notes on key accounting policies and segment performance Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $181,156 | $146,479 | | **Total assets** | $1,370,719 | $1,283,580 | | **Total current liabilities** | $163,014 | $152,193 | | **Total liabilities** | $913,153 | $861,123 | | **Total stockholders' equity** | $457,566 | $422,457 | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $283,666 | $215,875 | $517,693 | $405,406 | | **Operating income** | $31,719 | $21,946 | $41,887 | $33,955 | | **Net income** | $17,796 | $11,783 | $21,986 | $16,094 | | **Diluted earnings per common share** | $0.34 | $0.23 | $0.43 | $0.31 | Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $92,251 | $79,013 | | **Net cash used in investing activities** | $(110,611) | $(61,147) | | **Net cash provided by (used in) financing activities** | $24,866 | $(5,031) | [Note 1: Basis of Presentation](index=8&type=section&id=1.%20BASIS%20OF%20PRESENTATION) The company operates as a regional, vertically integrated solid waste services company in seven northeastern U.S. states, managing operations through three segments: Eastern, Western, and Resource Solutions, with financial statements prepared under U.S. GAAP - The company provides integrated solid waste services in Vermont, New Hampshire, New York, Massachusetts, Connecticut, Maine, and Pennsylvania[23](index=23&type=chunk) - Operations are managed through two geographic solid waste segments (Eastern and Western) and one resource-renewal segment (Resource Solutions)[23](index=23&type=chunk) [Note 3: Revenue Recognition](index=9&type=section&id=3.%20REVENUE%20RECOGNITION) Total revenues for Q2 2022 increased to **$283.7 million** from **$215.9 million** in Q2 2021, with growth across all segments and collection services as the largest revenue source Revenues by Operating Segment (in thousands) | Segment | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Eastern | $87,263 | $61,058 | | Western | $114,884 | $98,852 | | Resource Solutions | $81,519 | $55,965 | | **Total revenues** | **$283,666** | **$215,875** | - Accounts receivable, net, increased to **$108.3 million** as of June 30, 2022, from **$87.0 million** as of December 31, 2021, reflecting revenue growth[6](index=6&type=chunk)[33](index=33&type=chunk) [Note 4: Business Combinations](index=11&type=section&id=4.%20BUSINESS%20COMBINATIONS) In H1 2022, the company acquired eight businesses for **$58.9 million**, adding **$28.8 million** in goodwill, a significant increase from four businesses acquired for **$4.9 million** in H1 2021 Acquisition Summary (in thousands) | Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Total consideration** | $58,895 | $4,883 | | **Cash used in acquisitions** | $55,053 | $4,378 | | **Excess purchase price allocated to goodwill** | $28,761 | $1,757 | - Acquisitions in H1 2022 included a full-service collection business, a closed waste-to-energy facility being converted to a transfer station, and several tuck-in collection businesses[34](index=34&type=chunk) [Note 7: Debt](index=15&type=section&id=7.%20DEBT) Total principal debt increased to **$593.7 million** as of June 30, 2022, primarily due to a **$35.0 million** issuance of Vermont Bonds, with **$190.0 million** of debt hedged by interest rate swaps - In Q2 2022, the company issued **$35.0 million** of Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds (Series 2022A-1) with a 5.00% interest rate, maturing in 2052[46](index=46&type=chunk) Debt Composition (in thousands) | Debt Instrument | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Term Loan Facility | $350,000 | $350,000 | | Tax-Exempt Bonds | $197,000 | $162,000 | | Finance leases & Notes payable | $46,662 | $50,570 | | **Total Principal Debt** | **$593,662** | **$562,570** | - As of June 30, 2022, the company had active interest rate derivative agreements with a total notional amount of **$190.0 million** to hedge variable rate debt[48](index=48&type=chunk) [Note 13: Segment Reporting](index=24&type=section&id=13.%20SEGMENT%20REPORTING) All operating segments reported year-over-year revenue growth for Q2 2022, with the Western region generating the highest outside revenues at **$114.9 million** and operating income at **$19.9 million**, while Resource Solutions saw the largest percentage revenue growth Segment Performance - Three Months Ended June 30, 2022 (in thousands) | Segment | Outside Revenues | Operating Income (loss) | Total Assets | | :--- | :--- | :--- | :--- | | Eastern | $87,263 | $6,150 | $362,942 | | Western | $114,884 | $19,897 | $697,252 | | Resource Solutions | $81,519 | $6,235 | $189,820 | | Corporate entities | $— | $(563) | $120,705 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses a **31.4%** YoY revenue increase in Q2 2022 to **$283.7 million**, driven by acquisitions, pricing, and volumes, alongside rising operating costs due to inflation, while maintaining strong liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2022 revenues increased by **$67.8 million** (**31.4%**) YoY, with solid waste up **26.4%** and Resource Solutions up **45.7%**, despite operating expenses rising due to inflation in fuel, labor, and third-party costs, leading to operating income growth to **$31.7 million** Solid Waste Revenues Growth Drivers (Q2 2022 vs Q2 2021) (in millions) | Driver | Amount (in millions) | % Growth Contribution | | :--- | :--- | :--- | | Price | $11.1 | 6.9% | | Volume | $2.6 | 1.6% | | Surcharges and other fees | $8.4 | 5.3% | | Acquisitions | $19.4 | 12.1% | | **Total Solid Waste Growth** | **$42.2** | **26.4%** | - Resource Solutions revenues grew by **$25.6 million** in Q2 2022, driven by acquisition activity (**$17.2 million**), higher non-processing revenues (**$5.9 million**), and favorable recycling commodity pricing (**$3.1 million**)[89](index=89&type=chunk) - Cost of operations as a percentage of revenues increased by **140 basis points** in Q2 2022 YoY, mainly due to higher fuel costs (**+200 bps**), third-party direct costs (**+90 bps**), and direct labor costs (**+10 bps**)[92](index=92&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$271.8 million** available under its Revolving Credit Facility, with net cash from operations increasing to **$92.2 million** in H1 2022, while major cash uses included **$56.3 million** for acquisitions and **$54.9 million** for capital expenditures - The company has **$271.8 million** of undrawn capacity from its **$300.0 million** Revolving Credit Facility as of June 30, 2022[118](index=118&type=chunk) Summary of Cash Flow Activity (in millions) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $92.2 | $79.0 | | Net cash used in investing activities | $(110.6) | $(61.1) | | Net cash provided by (used in) financing activities | $24.9 | $(5.0) | - Cash used for acquisitions increased significantly to **$56.3 million** in H1 2022 from **$5.5 million** in H1 2021, reflecting an active growth strategy[125](index=125&type=chunk) [Inflation](index=40&type=section&id=Inflation) Inflationary pressures, particularly in fuel and labor, materially affected operating margins and cash flows in H1 2022, but management believes flexible pricing, cost recovery fees, and efficiency programs help mitigate these impacts - Inflationary increases in costs, especially for fuel and labor, materially affected operating margins and cash flows during the first half of 2022[132](index=132&type=chunk) - The company utilizes flexible pricing, pass-through contract clauses, and an Energy and Environmental Fee (E&E Fee) to recover escalating costs[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks from interest rate volatility and commodity price fluctuations, managing interest rate risk on its variable-rate debt through derivative instruments, with **$190.0 million** of debt hedged as of June 30, 2022 - The company has interest rate risk related to approximately **$160.0 million** of unhedged variable-rate long-term debt as of June 30, 2022[139](index=139&type=chunk) - A hypothetical **100 basis point** increase in interest rates would change annual interest expense by approximately **$1.6 million**[139](index=139&type=chunk) - The company uses interest rate derivative agreements with a total notional amount of **$190.0 million** to hedge against adverse movements in interest rates[139](index=139&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during Q2 2022 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[141](index=141&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2022 that materially affected, or are reasonably likely to materially affect, internal controls[141](index=141&type=chunk) PART II [Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is subject to various legal proceedings, including an ongoing appeal by the Conservation Law Foundation (CLF) against a landfill expansion permit, with an aggregate accrual of **$1.291 million** for outstanding legal proceedings as of June 30, 2022 - The company is defending against an appeal by the Conservation Law Foundation (CLF) regarding the expansion permit for the North Country Environmental Services, Inc. (NCES) landfill in Bethlehem, New Hampshire[54](index=54&type=chunk) - An aggregate accrual of **$1.291 million** has been recorded for outstanding legal proceedings as of June 30, 2022[52](index=52&type=chunk) [Risk Factors](index=43&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section updates the company's risk factors, emphasizing significant risks from extensive and evolving government and environmental regulations, with potential negative impacts from non-compliance and recent changes to solid waste laws in Maine - The waste industry is subject to extensive government regulations, and non-compliance could lead to fines, penalties, and limits on the ability to operate and expand[146](index=146&type=chunk) - The company faces potential liability from environmental issues at acquired businesses and risks related to obtaining or renewing operating permits[146](index=146&type=chunk) - Recent changes in solid waste laws in the State of Maine may negatively impact operating results through lower revenues or increased costs[146](index=146&type=chunk)

Casella Waste Systems, Inc. 1 Investor Meetings May & June 2022 Safe Harbor Statement Certain matters discussed in this presentation, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance; financial condition; operations and services; prospects; growth; strategies; anticipated impacts from future or completed acquisitions; and guidance for fiscal year 2022, are "forward-looking statements" intended to ...

Casella Waste Systems, Inc. (NASDAQ:CWST) Q1 2022 Earnings Conference Call April 29, 2022 10:00 AM ET Company Participants Joe Fusco – Vice President-Communication John Casella – Chairman and Chief Executive Officer Ned Coletta – Senior Vice President and Chief Financial Officer Ed Johnson – President and Chief Operating Officer Jason Mead – Vice President-Finance Conference Call Participants Alexander Leach – Berenberg Capital Markets Tyler Brown – Raymond James Michael Hoffman – Stifel Sean Eastman – KeyB ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Delaware 03-0338873 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) 25 Greens Hill Lane, Rutland, Vermont 05701 (Address of principal executive offices) (Zip Code) Securities registered pursuant to Section 12(b) of the Act: Title of each classTrading Symbol(s)Name of each exchange on which registered Class A common stock, $0.01 par value per share CWST The Nasdaq Stock Market LLC (Nasda ...

Casella Waste Systems, Inc. 1 Investor Meetings March 2022 Safe Harbor Statement Certain matters discussed in this presentation, including, but not limited to, the insurance coverage and self-insurance reserves may be inadequate to cover all of its statements regarding our intentions, beliefs or current expectations concerning, significant risk exposures; fluctuations in energy pricing or the commodity pricing of its among other things, our financial performance; financial condition; operations and recyclab ...

Start Time: 10:00 January 1, 0000 11:06 AM ET Casella Waste Systems, Inc. (NASDAQ:CWST) Q4 2021 Earnings Conference Call February 18, 2022, 10:00 AM ET Company Participants John Casella - Chairman, CEO and Secretary Edwin Johnson - President and COO Ned Coletta - SVP, CFO and Treasurer Jason Mead - VP of Finance Joseph Fusco - VP of Communications Conference Call Participants Sean Eastman - KeyBanc Capital Markets Tyler Brown - Raymond James Michael Hoffman - Stifel Nicolaus Hamzah Mazari - Jefferies Micha ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-K ____________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-23211 ___ ...

Financial Data and Key Metrics Changes - Revenues in Q3 2021 were $242 million, an increase of 19.4% year-over-year, with $39.3 million attributed to acquisition activity [30] - Adjusted EBITDA was $61.2 million, up 19.4% year-over-year, with EBITDA margins at 25.3%, flat year-over-year [35][36] - Adjusted free cash flow increased by 37.2% year-over-year to $82.3 million [44] Business Line Data and Key Metrics Changes - Solid waste revenues rose 16.7% year-over-year, driven by a 4.1% price increase and a 2.8% volume increase [30] - Resource solutions revenues increased by 27.6% year-over-year, with 12.3% from higher recycling commodity prices and 8.4% from acquisitions [34] - Collection line of business revenues were up 16.2% year-over-year, with prices up 4.6% [30] Market Data and Key Metrics Changes - Landfill tons were up 70 basis points year-over-year, but still down approximately 8% compared to pre-COVID levels [32] - The Northeast disposal capacity continues to tighten, providing opportunities for pricing advancements [15] - Labor constraints and lower economic activity in New York City impacted volume recovery [13][33] Company Strategy and Development Direction - The company is focused on strategic acquisitions and disciplined growth, having closed nine acquisitions in 2021 with $86 million of annualized revenue [11][24] - Continued investment in human resources and technology to mitigate labor challenges and improve operational efficiency [17][20] - The company raised its 2021 guidance for the third time, reflecting solid performance and growth expectations [28][46] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment remains challenging, particularly in New York City, affecting volume recovery [13][70] - The company anticipates a modest rebound in solid waste volumes and pricing in Q4 2021 [47] - Management expressed confidence in the acquisition pipeline and the ability to execute growth strategies [24][84] Other Important Information - The company has implemented various operational technologies to enhance efficiency and predictive insights [62] - Adjusted EBITDA margins improved by 77 basis points year-over-year when excluding acquisition impacts and one-time costs [36] - The company is focused on succession planning and resource allocation to support future growth [29] Q&A Session Summary Question: What was the one-time operating cost that impacted margins? - The one-time operating cost was an accrual for potential landfill waste relocation, amounting to $750,000 [64] Question: Can you elaborate on the margin impacts from fuel and recycling? - Fuel negatively impacted margins by 26 basis points, while recycling positively contributed about 50 basis points [65] Question: What is the status of landfill tons compared to previous quarters? - The company is down 350,000 tons year-over-year, primarily in New York State, due to lower commercial activity [69] Question: How much of your book has an escalator tied to CPI? - Approximately 10% of collection revenues are tied to municipal contracts, with flexibility in pricing for the rest [74] Question: Can you comment on the M&A pipeline? - The company is comfortable with its robust M&A pipeline and has completed nine acquisitions in 2021, with more in the queue [84][86] Question: What are the expectations for volume recovery in New York City? - Volume recovery is uncertain, with management noting that many small businesses may not return, impacting overall activity [118]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Delaware 03-0338873 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) 25 Greens Hill Lane, Rutland, Vermont 05701 (Address of principal executive offices) (Zip Code) Securities registered pursuant to Section 12(b) of the Act: Title of each classTrading Symbol(s)Name of each exchange on which registered Class A common stock, $0.01 par value per share CWST The Nasdaq Stock Market LLC (Nasda ...