Financial Data and Key Metrics Changes - Revenues for 2023 increased by over 16%, with adjusted EBITDA growth topping 20% and adjusted free cash flow growth up 15% [12][20] - Adjusted EBITDA margins expanded by 70 basis points, reaching 22.8% for Q4, marking a record for the company [12][18] - Adjusted EBITDA for Q4 was $82.2 million, up 46.1% year-over-year, with $16.3 million from acquisitions and $9.7 million from organic growth [20] Business Line Data and Key Metrics Changes - Collection line revenues rose 54.8% year-over-year, driven by a 7.2% price increase, despite a 2% decline in volumes [8] - Disposal line revenues increased by 8% year-over-year, with landfill pricing up 6.9% and landfill tons down 3.7% [19] - Resource solutions revenues grew by 8.8% year-over-year, with price up 5.2% and acquisitions contributing 3.8% [19] Market Data and Key Metrics Changes - The company experienced a decline in volumes primarily due to softness in temporary roll-off activity and customer churn, which was a strategic move to improve revenue quality [8][13] - The overall market for construction and demolition (C&D) waste showed signs of pressure, particularly in the Northeast, with expectations of further site closures impacting volumes [61][66] Company Strategy and Development Direction - The company is focused on improving returns across its disposal assets and enhancing operational efficiency through technology investments and employee engagement [75][41] - Plans for further upgrades to sustainability infrastructure, including a full equipment upgrade at the Willimantic recycling facility, are set for 2024 [11][42] - The company aims to maintain a robust acquisition pipeline, having completed seven acquisitions in 2023, expanding its footprint into the Mid-Atlantic region [31][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth runway ahead, citing strong performance from recent acquisitions and operational improvements [4][6] - The outlook for 2024 includes expectations of 18% revenue growth, 21% adjusted EBITDA growth, and 13% free cash flow growth, assuming a stable economic environment [28][39] - Management acknowledged ongoing inflationary pressures but indicated confidence in pricing strategies to offset these costs [66][101] Other Important Information - The company reported a GAAP net loss of $1.8 million for Q4, impacted by acquisition-related expenses and a landfill capping charge [25][26] - Adjusted EPS for Q4 was $0.13, while GAAP EPS showed a loss of $0.03 [26] - The company has a strong balance sheet with $1.05 billion in debt and $221 million in cash, providing ample liquidity for future growth [49] Q&A Session Summary Question: Trends in the disposal line and pricing outlook - Management noted ongoing trends in the Northeast, with some pressure on C&D volumes due to site closures, but stable to positive conditions in MSW and contaminated soils [61] Question: Inflationary trends and pricing cost spread - Management confirmed a robust pricing plan for 2024, targeting high-single-digit increases, justified by rising costs in landfill development and regulatory complexities [66] Question: Impact of recent zone awards in New York - Management indicated that while they do not directly participate in New York City, there may be opportunities to work with transfer stations that won awards, potentially facilitating waste transport to their facilities [119]

Casella (CWST) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -27.78%. A quarter ago, it was expected that this provider of garbage-disposal and recycling services would post earnings of $0.32 per share when it actually produced earnings of $0.35, delivering a surprise of 9.38%.Over ...

Caps milestone year of growth in 2023. RUTLAND, Vt., Feb. 15, 2024 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three and twelve month periods ended December 31, 2023. The Company also provided guidance for the fiscal year ending December 31, 2024 ("fiscal year 2024"). Highlights for the Three Months and Twelve Months Ended December 31, 2023:  Revenues were $359.6 millio ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION FORM 10-K (Exact name of registrant as specified in its charter) ____________________________________________________ Delaware 03-0338873 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) 25 Greens Hill Lane, Rutland, VT 05701 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (802) 775-0325 Securities registered pursuant to Section 12(b) of the Act: Titl ...

The market expects Casella (CWST) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 15, 2024, might help the stock move higher if these key nu ...

RUTLAND, Vt., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling, and resource management services company, will release its financial results for the three months ended December 31, 2023, after the market closes on Thursday, February 15, 2024. The company will host a conference call to discuss these results on Friday, February 16, 2024, at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should register by clicking her ...

Financial Data and Key Metrics Changes - Revenues in Q3 2023 were $352.7 million, an increase of $57.5 million or 19.5% year-over-year, with 18.9% of this change driven by acquisitions [50] - Adjusted EBITDA was $89.6 million, up $14.6 million year-over-year, with $14 million of the growth derived from acquisitions [24] - Adjusted EBITDA margins were 25.4% for the quarter, flat year-over-year, with consolidated price as a percentage of total revenues up 5.8% [25][26] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 28.9% year-over-year, with pricing up 6.9% and volumes slightly down by 3.3% [50] - Collection line revenues were up 43% year-over-year, with pricing up 7.6% and volumes down 1.9% [50] - Disposal line revenues were up 0.3% year-over-year, with landfill pricing up 7.4% and landfill tons down 10.1% [51] Market Data and Key Metrics Changes - Special waste and contaminated soils volumes were down 35% year-over-year due to lower regional activity levels [51] - Resource Solutions revenues decreased by 5.9% year-over-year, with average commodity revenue per ton down approximately 28% [52] - The company expects special waste volumes to decline both sequentially and year-over-year in Q4 [52] Company Strategy and Development Direction - The company is focused on integrating recent acquisitions and enhancing operational efficiency through flexible pricing programs and ongoing fleet automation [46][49] - The acquisition pipeline remains robust, with approximately $500 million of annualized revenue from Northeast operations and $400 million from Mid-Atlantic operations [20] - The company aims to continue growing margins and cash flows into 2024, with expectations of 14% rollover revenue growth from acquisitions completed in 2023 [60] Management's Comments on Operating Environment and Future Outlook - Management noted that while special waste volumes have been weak, MSW and C&D volumes are tracking in line with budgeted and historic levels [8] - The company anticipates continued operating cash flow growth, although inflationary pressures on capital expenditures and higher interest rates may offset this growth [31] - Management expressed optimism about the performance of the company and the larger platform being built, with updated guidance for 2023 reflecting a conservative view of special waste for Q4 [43][58] Other Important Information - The company completed three acquisitions in the quarter, enhancing its operational footprint in the Northeast [41] - Adjusted free cash flow for the year-to-date through September was $96 million, up $14.3 million year-over-year [29] - The company has maintained significant liquidity and balance sheet flexibility to support M&A and organic development [57] Q&A Session Summary Question: Can you help us think about the different moving pieces from Q3 to Q4 that might be pushing margins ahead of the normal seasonal cadence? - Management noted that landfill tonnages had some of the largest days in October, indicating slight changes to business seasonality [33] Question: Can you walk me through if I'm missing any moving pieces regarding margins? - Management highlighted that operational efficiency programs are scheduled for next year, which could expand margins [34] Question: What is the status of the RNG facilities expected to come online? - Management indicated that the second project is delayed and expected to come online in the first half of 2024 [65] Question: Was weather an EBITDA headwind in the quarter? - Management stated that the impact was somewhat neutral, with more tons to the landfill from storm damage offset by a lack of commercial activity [66] Question: How do you view the interest rate environment and its impact on smaller regional players? - Management noted that smaller companies are facing challenges due to higher costs of capital, which may accelerate their desire to sell [124]

PART I [Financial Statements](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited consolidated financial statements for Q3 2023 reflect significant asset and liability growth from acquisitions, with increased revenues but decreased net income Consolidated Balance Sheet Summary (in millions) | Balance Sheet Items | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$2,498.015** | **$1,449.215** | | Total Current Assets | $413.341 | $207.479 | | Goodwill | $737.150 | $274.458 | | **Total Liabilities** | **$1,467.148** | **$951.315** | | Total Current Liabilities | $253.184 | $177.600 | | Debt, less current portion | $1,012.169 | $585.015 | | **Total Stockholders' Equity** | **$1,030.867** | **$497.900** | Consolidated Statement of Operations Summary (in millions) | Income Statement Items | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Revenues** | **$904.975** | **$812.962** | | Operating Income | $67.067 | $78.175 | | **Net Income** | **$27.210** | **$44.658** | | Diluted EPS | $0.50 | $0.86 | Consolidated Statement of Cash Flows Summary (in millions) | Cash Flow Items | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157.825 | $152.431 | | Net cash used in investing activities | $(937.156) | $(161.059) | | Net cash provided by financing activities | $929.998 | $22.753 | | **Net increase in cash and cash equivalents** | **$150.667** | **$14.125** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail accounting policies, significant acquisitions like GFL and Twin Bridges, debt financing, and ongoing legal proceedings, including the adoption of new accounting standards - On June 30, 2023, the company acquired GFL Subsidiaries, forming the new Mid-Atlantic regional operating segment and expanding services into Delaware and Maryland, funded by new financing and an equity offering[108](index=108&type=chunk) - During the nine months ended September 30, 2023, the company acquired five businesses for total consideration of **$845.1 million**, a significant increase from the **$78.1 million** spent on twelve businesses in the same period of 2022[121](index=121&type=chunk)[21](index=21&type=chunk) - To fund acquisitions, the company completed a public offering of **6.1 million** shares of Class A common stock on June 16, 2023, resulting in net proceeds of **$496.2 million**[148](index=148&type=chunk)[26](index=26&type=chunk) - In June 2023, the company borrowed **$430.0 million** under a new 2023 Term Loan Facility to help fund the GFL Acquisition[131](index=131&type=chunk)[23](index=23&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A highlights revenue growth from acquisitions and pricing, increased operating expenses, decreased operating income, and strong liquidity maintained through financing activities [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Results of operations show Q3 and YTD revenue growth driven by acquisitions and pricing, offset by volume declines, leading to increased operating expenses and decreased operating income Revenue by Service Type (in millions) | Service Type | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Solid waste operations | $277.2 | $215.0 | $689.7 | $584.3 | | Resource Solutions operations | $75.5 | $80.3 | $215.3 | $228.7 | | **Total revenues** | **$352.7** | **$295.3** | **$905.0** | **$813.0** | Solid Waste Revenue Growth Drivers (Q3 2023 vs Q3 2022, in millions) | Driver | Amount | % Growth | | :--- | :--- | :--- | | Price | $14.9 | 6.9% | | Volume | $(7.2) | (3.3)% | | Surcharges and other fees | $(0.2) | (0.2)% | | Acquisitions | $54.7 | 25.5% | | **Total Solid Waste Revenue Change** | **$62.2** | **28.9%** | - Operating income decreased across several segments, with the Western region's operating income falling by **$1.9 million** quarterly, Resource Solutions seeing an **$11.6 million** year-to-date decline, and the Mid-Atlantic segment reporting a **$0.7 million** operating loss in its first quarter[86](index=86&type=chunk) - Cost of operations increased by **$36.0 million** in Q3 2023 compared to Q3 2022, driven by acquisitions, higher direct labor costs due to wage inflation, and increased maintenance and repair expenses[193](index=193&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash and credit availability, primarily funded by financing activities and acquisitions - The company maintains a strong liquidity position with **$219.1 million** in cash and equivalents and **$272.3 million** available under its Revolving Credit Facility as of September 30, 2023[15](index=15&type=chunk) Summary of Cash Flow Activity (Nine Months Ended Sep 30, in millions) | Cash Flow Activity | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $157.8 | $152.4 | $5.4 | | Net cash used in investing activities | $(937.2) | $(161.1) | $(776.1) | | Net cash provided by financing activities | $930.0 | $22.8 | $907.2 | - Cash used in investing activities surged to **$937.2 million** year-to-date, primarily due to **$847.8 million** spent on acquisitions, a significant increase from **$74.0 million** in the prior-year period[21](index=21&type=chunk) - Financing activities provided **$930.0 million** in cash, mainly from a **$496.2 million** public stock offering and **$465.0 million** in proceeds from long-term borrowings, used to fund strategic acquisitions[22](index=22&type=chunk)[26](index=26&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages market risks from fuel prices, interest rates, and commodity prices through fees, revenue sharing, and derivative agreements - A **$0.40 per gallon** change in diesel fuel price is estimated to change annual direct fuel costs by approximately **$5.1 million**, which is expected to be almost fully offset by a corresponding **$5.2 million** change in E&E Fee revenue[40](index=40&type=chunk)[39](index=39&type=chunk) - A **$10 per ton** change in recycled material commodity prices is estimated to change annual operating income by approximately **$1.0 million**[43](index=43&type=chunk) - As of September 30, 2023, the company had approximately **$359.6 million** of variable-rate long-term debt, where a **100 basis point** change in the average interest rate would change annual interest expense by approximately **$3.6 million**[44](index=44&type=chunk) [Controls and Procedures](index=51&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[45](index=45&type=chunk) - No material changes to the internal control over financial reporting occurred during the three months ended September 30, 2023[45](index=45&type=chunk) PART II [Legal Proceedings](index=52&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports no new legal proceedings involving governmental authorities with potential monetary sanctions of $1.0 million or more - The company has no environmental legal matters with potential sanctions of **$1.0 million** or more to disclose[48](index=48&type=chunk) [Risk Factors](index=52&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company refers to existing risk factors from its 2022 Annual Report on Form 10-K, with no new material risks identified in this report - The company refers to the risk factors disclosed in its 2022 Annual Report on Form 10-K, indicating no material changes or additions during the quarter[49](index=49&type=chunk) [Other Information](index=52&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section discloses the adoption of Rule 10b5-1 trading arrangements by several directors and officers for tax-related equity award transactions Adoption of Rule 10b5-1 Trading Arrangements (Q3 2023) | Name (Title) | Action (Date) | Nature of Arrangement | | :--- | :--- | :--- | | John W. Casella (CEO) | Adoption (08/22/2023) | Sell-to-cover for equity awards | | Edmond R. Coletta (CFO) | Adoption (08/02/2023) | Sell-to-cover for equity awards | | Shelley E. Sayward (General Counsel) | Adoption (08/02/2023) | Sell-to-cover for equity awards | | Sean M. Steves (COO) | Adoption (08/02/2023) | Sell-to-cover for equity awards | | Kevin J. Drohan (CAO) | Adoption (08/02/2023) | Sell-to-cover for equity awards | | Paul J. Ligon (SVP) | Adoption (08/02/2023) | Sell-to-cover for equity awards | | Douglas R. Casella (Vice Chairman) | Adoption (08/20/2023) | Sell-to-cover for equity awards |

Casella Waste Systems, Inc. (NASDAQ:CWST) Q2 2023 Earnings Conference Call July 28, 2023 10:00 AM ET Company Participants Charlie Wohlhuter - Director, IR John Casella - Chairman and CEO Ned Coletta - President and CFO Jason Mead - SVP, Finance, and Treasurer Sean Steves - SVP and COO, Solid Waste Operations Conference Call Participants Tyler Brown - Raymond James Michael Hoffman - Stifel Sean Eastman - KeyBanc Capital Markets Stephanie Moore - Jefferies Operator Good day, and thank you for standing by. Wel ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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 CASELLA WASTE SYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 03-0338873 (State or other juri ...