Financial Data and Key Metrics Changes - Revenues in Q4 2024 were $427.5 million, an increase of $67.9 million or 18.9% year-over-year, with $50.1 million from acquisitions and $17.8 million from organic growth [23] - Adjusted EBITDA was $95 million in the quarter, up $12.8 million or 15.6% year-over-year, with adjusted EBITDA margins at 22.2%, down 60 basis points year-over-year [27][28] - GAAP net income was $4.9 million in the quarter, up $6.7 million year-over-year [31] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 21.4% year-over-year, with acquisition growth of 17.8% and price up 5.4%, while volumes decreased by 1.8% [23] - Resource solutions revenues rose by 9.7% year-over-year, with recycling and processing revenue up 8.1% and national accounts up 10.7% [26] - Collection operations saw adjusted EBITDA margin expansion of over 100 basis points year-over-year [15] Market Data and Key Metrics Changes - Volume declines were concentrated in the mid-Atlantic region, particularly in recently acquired businesses, while collection volume was flat to positive elsewhere [24] - MSW tons into landfills were up 4.8% in the quarter, but special waste and C&D volumes were down 11.8% year-over-year [25] - The average price per ton at the landfill increased by 5.1% year-over-year [25] Company Strategy and Development Direction - The company closed eight acquisitions in 2024, contributing over $200 million in annualized revenue, and is focused on further acquisitions in 2025 [10][48] - The company aims to maintain a low leverage profile and has a disciplined growth strategy, focusing on integration and pricing strength [13] - Investments in automation and technology are ongoing to drive operational efficiencies and reduce costs [15][106] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for modest volume growth in 2025 as external pressures ease [14] - The company anticipates continued strong performance in the national accounts business, particularly in the industrial sector [130] - Management highlighted the importance of integrating acquisitions effectively to enhance operational performance [68] Other Important Information - The company expects adjusted free cash flow to grow approximately 9% at the midpoint for 2025, with capital expenditures of around $215 million [45] - The company has an estimated $83 million in NOLs, which are expected to shield most federal tax liability in 2025 [34] Q&A Session Summary Question: Update on M&A opportunities for 2025 - Management indicated that the M&A pipeline is very active, with ongoing discussions and several high-quality deals already closed in 2025 [62][64] Question: Plans for the new MRF acquisition in Massachusetts - The acquisition of Save That Stuff is expected to create synergies with existing operations, enhancing processing capabilities and route efficiencies [70][72] Question: Update on the Brookhaven situation in New York - Management confirmed that Brookhaven is closed for C&D, but they expect to see improvements in tonnage at their facilities in 2025 [75][76] Question: Impact of weather on Q1 operations - Management stated that weather has not significantly impacted operations compared to historical trends [84] Question: Internalization of tons and its economic implications - Management confirmed that internalization efforts are included in the 2025 guidance, with incremental margin benefits expected [93][94] Question: Technology spending and its purpose - Management is investing in upgrading systems to improve scalability and efficiency, with a focus on automating processes [106]

Core Viewpoint - Casella's quarterly earnings significantly exceeded expectations, indicating strong performance in the garbage-disposal and recycling services sector [1][2]. Financial Performance - The company reported earnings of $0.41 per share, surpassing the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.13 per share a year ago, resulting in an earnings surprise of 156.25% [1]. - Revenues for the quarter ended December 2024 were $427.49 million, exceeding the Zacks Consensus Estimate by 1.53%, and up from $359.57 million year-over-year [2]. Market Performance - Casella shares have increased by approximately 1.6% since the beginning of the year, while the S&P 500 has gained 3.2% [3]. - The company's current Zacks Rank is 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $404.99 million, and for the current fiscal year, it is $1.08 on revenues of $1.75 billion [7]. - The Pollution Control industry, to which Casella belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8].

Revenue Performance - Revenues for Q4 2024 were $427.5 million, an increase of $67.9 million or 18.9% compared to Q4 2023[4] - For fiscal year 2024, total revenues reached $1.557 billion, up $292.7 million or 23.1% from fiscal year 2023[8] - Revenues for the three months ended December 31, 2024, increased to $427.5 million, up 18.9% from $359.6 million in the same period of 2023[23] - Total revenues for the three months ended December 31, 2024, were $514.771 million, compared to $437.066 million for the same period in 2023, representing a year-over-year increase of 17.7%[41] - For the twelve months ended December 31, 2024, total revenues reached $1.886 billion, up from $1.546 billion in 2023, marking a growth of 22%[41] EBITDA and Income - Adjusted EBITDA for Q4 2024 was $95.0 million, reflecting a growth of $12.8 million or 15.6% year-over-year[7] - Adjusted EBITDA for fiscal year 2024 was $360.6 million, an increase of $66.0 million or 22.4% from fiscal year 2023[11] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $360.6 million, representing an increase of 22.4% from $294.6 million in 2023[30] - Net income for fiscal year 2024 was $13.5 million, down 46.7% from fiscal year 2023, while Adjusted Net Income was $80.7 million, up 8.7% year-over-year[10] - Net income for the three months ended December 31, 2024, was $4.9 million, compared to a net loss of $1.8 million in the same period of 2023[23] - Net income for the three months ended December 31, 2024, was $4.876 million, compared to a loss of $1.811 million in the same period of 2023, while the twelve months ended December 31, 2024, reported a net income of $13.536 million, down from $25.399 million in 2023[31] Cash Flow and Operating Activities - Net cash provided by operating activities for fiscal year 2024 was $281.4 million, up $48.3 million or 20.7% from fiscal year 2023[11] - Net cash provided by operating activities for the three months ended December 31, 2024, was $109.761 million, an increase from $75.267 million in 2023, and for the twelve months, it rose to $281.355 million from $233.092 million[34] - Adjusted Free Cash Flow for fiscal year 2024 was $158.3 million, an increase of $30.0 million or 23.4% from fiscal year 2023[11] - Adjusted Free Cash Flow for the three months ended December 31, 2024, was $59.555 million, compared to $33.991 million in 2023, and for the twelve months, it increased to $158.309 million from $128.299 million[34] Acquisitions and Growth - The company acquired eight businesses in fiscal year 2024 with over $200 million in annualized revenues and three businesses in fiscal year 2025 year-to-date with approximately $40 million in annualized revenues[3] - The company incurred $468.6 million in acquisitions during the twelve months ended December 31, 2024, compared to $851.8 million in 2023[28] - Acquisition-related expenses for the twelve months ended December 31, 2024, totaled $24.879 million, up from $15.038 million in 2023[31] - Solid waste operations contributed $60.370 million to revenue growth in Q4 2024, accounting for 21.4% of the related business growth[43] - Acquisitions accounted for $50.128 million, or 17.8% of the total solid waste operations revenue growth in Q4 2024[43] Capital Expenditures - The company incurred capital expenditures of $76.866 million for the three months ended December 31, 2024, compared to $64.543 million in 2023[34] - Growth capital expenditures for Q4 2024 were $29.382 million, up from $21.010 million in Q4 2023, indicating a 39.5% increase[45] - Replacement capital expenditures for the twelve months ended December 31, 2024, were $135.177 million, compared to $113.422 million in 2023, showing a growth of 19.2%[45] Future Projections - The company anticipates fiscal year 2025 revenues between $1.775 billion and $1.805 billion, with Adjusted EBITDA expected between $410 million and $425 million[13] - The company expects Adjusted EBITDA for the fiscal year 2025 to be between $410 million and $425 million, with net income estimated between $10 million and $25 million[38] - Estimated net cash provided by operating activities for fiscal year 2025 is projected to be between $320 million and $335 million, with capital expenditures expected to be $215 million[38] Assets and Liabilities - Total assets as of December 31, 2024, reached $3.23 billion, up from $2.54 billion in 2023, reflecting a growth of 27.4%[25] - Cash, cash equivalents, and restricted cash increased to $383.3 million as of December 31, 2024, compared to $220.9 million at the end of 2023[28] - Total current liabilities increased to $307.3 million as of December 31, 2024, from $278.9 million in 2023, marking a rise of 10.2%[25] Earnings Per Share - The company reported a basic earnings per share of $0.08 for the three months ended December 31, 2024, compared to a loss of $0.03 per share in the same period of 2023[23] - Adjusted Diluted Earnings Per Common Share for the three months ended December 31, 2024, was $0.41, up from $0.29 in 2023, while for the twelve months, it was $1.35 compared to $1.34 in 2023[31]

Core Insights - Casella Waste Systems, Inc. reported record financial results for 2024, with over 20% growth in revenues, Adjusted EBITDA, and Adjusted Free Cash Flow [3][5][10] - The company acquired eight businesses in 2024, contributing over $200 million in annualized revenue, and has continued its growth strategy into 2025 with three additional acquisitions [3][5][15] - The company anticipates a return to growth in landfill volumes in 2025 as market pressures subside [3][5] Financial Performance - Q4 2024 revenues reached $427.5 million, an increase of $67.9 million or 18.9% from Q4 2023 [5][6] - Fiscal year 2024 revenues totaled $1.557 billion, up $292.7 million or 23.1% from fiscal year 2023 [5][10] - Adjusted EBITDA for Q4 2024 was $95.0 million, a 15.6% increase from Q4 2023, while fiscal year 2024 Adjusted EBITDA was $360.6 million, up 22.4% from the previous year [9][13] Profitability Metrics - Net income for Q4 2024 was $4.9 million, a significant improvement from a loss of $(1.8) million in Q4 2023 [8][12] - Fiscal year 2024 net income was $13.5 million, down 46.7% from $25.4 million in fiscal year 2023, primarily due to lower operating income and higher interest expenses [12][13] - Adjusted Net Income for fiscal year 2024 was $80.7 million, an increase of 8.7% from fiscal year 2023 [12][13] Operational Highlights - Solid waste pricing increased by 5.7% in fiscal year 2024, driven by 6.5% growth in collection prices and 3.9% in disposal prices [5][10] - The company expanded Adjusted EBITDA margins in its collection business by over 100 basis points in 2024, attributed to price growth and operational efficiency [3][5] - The company has over 5,000 employees and operates in 10 states, marking its 50th anniversary in 2025 [3][5] 2025 Outlook - The company provided guidance for fiscal year 2025, estimating revenues between $1.775 billion and $1.805 billion, net income between $10 million and $25 million, and Adjusted EBITDA between $410 million and $425 million [15][16] - The guidance does not include the impact of any acquisitions that have not been completed [16]

Core Viewpoint - Casella (CWST) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on February 12, with a consensus EPS estimate of $0.16 per share, reflecting a year-over-year increase of +23.1% [3]. - Revenues are projected to reach $421.05 million, representing a 17.1% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 67.88% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Casella is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +16.08% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - However, Casella currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Casella was expected to post earnings of $0.28 per share but delivered $0.27, resulting in a surprise of -3.57% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While Casella is not positioned as a compelling earnings-beat candidate, it is essential for investors to consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Group 1 - Casella Waste Systems, Inc. will release its financial results for the three months ended December 31, 2024 on February 12, 2025 after market close [1] - A conference call to discuss the financial results is scheduled for February 13, 2025 at 10:00 a.m. Eastern Time [2] - Participants can register for the call and access the webcast through the company's website [2] Group 2 - A replay of the conference call will be available on the company's website following the live event [2] - For further inquiries, contact Jason Mead, Senior Vice President of Finance & Treasurer [3]

RUTLAND, Vt., Dec. 17, 2024 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (“Casella”) (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today announced that it has priced the previously announced offering of up to $45.0 million aggregate principal amount of the Finance Authority of Maine (the “Authority”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2024 (the “Bonds”) to be issued under an indenture between the Authority and the b ...

RUTLAND, Vt., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (“Casella”) (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today announced an offering of up to $45.0 million aggregate principal amount of the Finance Authority of Maine (the “Authority”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2024 (the “Bonds”) under an indenture between the Authority and the bond trustee. The Bonds will be guaranteed under a guar ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 reached $411.6 million, an increase of $58.9 million or 16.7% year-over-year, with $37.5 million from acquisitions and $21.3 million from organic growth [18][29] - Adjusted EBITDA was $102.9 million, up $13.3 million or 14.9% year-over-year, with adjusted EBITDA margins at 25%, down 40 basis points year-over-year [22][23] - GAAP net income was $5.8 million, down $12.4 million compared to the prior year, primarily due to an $8.5 million closure charge at the Southbridge Landfill [26] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 17.3% year-over-year, with acquisition growth of 13% and price up 5.5%, while volumes decreased by 1% [18] - Resource Solutions revenues rose by 14.5% year-over-year, with recycling and processing revenue up 25.8% [20] - Adjusted EBITDA margins in the collection and resource solutions lines increased by 130 and 90 basis points respectively on a same-store basis [24] Market Data and Key Metrics Changes - C&D tons were down 16% year-over-year, with continued weakness expected to persist through the end of the year [20] - The average price per ton at landfills increased by 7.1% year-over-year, reflecting a mix shift away from lower price streams [20] - The company anticipates a return of landfill volumes in 2025 as the Brookhaven Landfill closure impacts the market [58][94] Company Strategy and Development Direction - The company completed its 6th acquisition of the year with the purchase of Royal, focusing on integration and leveraging synergies for growth [9][35] - Strategic investments in automation and technology are expected to enhance operational efficiency and safety [11][16] - The company is focused on sustainability and has published its 2024 Sustainability Report, highlighting its commitment to creating value for customers and communities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong growth opportunities and a solid foundation for continued expansion [17] - The company expects to achieve revenue growth in the range of 12% to 15% on adjusted EBITDA for 2025, driven by improved landfill volumes and pricing [35] - Management acknowledged challenges in the C&D market but expects normalization in 2025 to positively impact results [60] Other Important Information - The company reaffirmed its guidance for revenue, adjusted EBITDA, cash flow from operations, and adjusted free cash flow for 2024, while revising GAAP net income guidance due to the Southbridge Landfill closure charge [31] - Net cash provided by operating activities for the first nine months of 2024 was $171.6 million, up $13.8 million year-over-year [28] Q&A Session Summary Question: Update on landfill development and expansion initiatives - Management provided positive updates on the Juniper Ridge facility's permit and the McKean facility's operational testing, indicating a cautious ramp-up in volumes [43][45] Question: Details on the Royal acquisition - The Royal acquisition is strategically important for expanding into the Hudson Valley, with expectations of mid-teens EBITDA margins and potential for improvement through operational efficiencies [47][50] Question: Clarification on Q3 performance and guidance - Management confirmed that unexpected insurance accruals offset the Royal acquisition's impact, leading to unchanged guidance [55][56] Question: C&D market headwinds - Management acknowledged significant C&D volume declines but expects a return of volumes post-Brookhaven Landfill closure, contributing positively in 2025 [58][60] Question: Internalization strategy and logistics - The company is focused on increasing landfill internalization through new transportation lanes and additional long-haul trucks, with a long-term strategy for waste management [64][66] Question: Insurance expense accruals - Management explained the unusual insurance accruals related to two discrete events, indicating they are one-time occurrences [68][70] Question: 2025 margin expansion potential - Management expressed optimism for margin expansion in 2025, driven by improved landfill volumes and operational efficiencies [72][90] Question: M&A activity outlook - Management indicated a continued focus on smaller tuck-in acquisitions while prioritizing integration of recent acquisitions [73][80]

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 ...