Monty Rakusen/DigitalVision via Getty Images Introduction I'm a big fan of the trash business. Waste management and waste collection is a high margin, recurring revenue business model that's typically been resilient to weaker economic periods while putting up steady top line growth from volume growth year after year. However, I've learned one thing from studying the waste management industry is that not all companies in the space are created equal and there's a wide range in terms of the multiples one can p ...

Financial Data and Key Metrics Changes - Revenues in Q2 2024 were $377.2 million, an increase of $87.5 million or 30.2% year-over-year, with $70 million from acquisitions and $17.5 million from organic growth [11] - Adjusted EBITDA reached $91.6 million, up $19.4 million or 26.9% year-over-year, with adjusted EBITDA margins at 24.3%, down 60 basis points year-over-year [14] - Adjusted net income was $12.5 million, down $6.3 million compared to the prior year, primarily due to accelerated amortization of identifiable intangibles associated with acquisitions [16] Business Line Data and Key Metrics Changes - Solid Waste revenues increased by 35.1% year-over-year, with acquisition growth of 30.7% and price up 5.7%, while volumes decreased by 1.8% [11] - Resource Solutions revenues were up 15.4% year-over-year, with recycling and processing revenue up 31.1% and national accounts up 6.9% [13] - The average price per ton at landfills increased by 10.8% year-over-year, despite lower volumes [12] Market Data and Key Metrics Changes - MSW volumes into landfills were slightly down in the quarter and flat over the first half of the year, with continued weakness in C&D and special waste volumes [12] - The Northeast market is experiencing less reliance on construction activity, leading to a more stable volume trend compared to other regions [59] Company Strategy and Development Direction - The company announced the acquisition of LMR Disposal and Whitetail Disposal, enhancing growth in new markets and increasing density in existing ones [5] - The focus remains on long-term returns, with a disciplined approach to acquisitions and integration efforts [5][10] - The company is actively pursuing additional acquisitions across its 10-state footprint, with ongoing dialogues and diligence efforts [24] Management's Comments on Operating Environment and Future Outlook - Management expects the market to stabilize next year, despite current EBITDA and margin pressures due to lower C&D volumes [7] - The company is optimistic about maintaining growth momentum in the second half of the year, supported by strategic investments and acquisitions [6][10] - Inflationary pressures have been higher than anticipated, but the company is adjusting pricing strategies to mitigate these impacts [54] Other Important Information - The company has completed five acquisitions year-to-date, expected to contribute over $100 million of annualized revenues, primarily in the Mid-Atlantic region [22] - The effective tax rate for the quarter was 35.1%, with expectations to pay less than $5 million in cash taxes for the year [16] Q&A Session Summary Question: Can you clarify the $3 million in leachate costs related to flooding in Vermont? - Management confirmed that the increased leachate costs were due to significant flooding affecting multiple facilities, not due to systemic issues [28][30] Question: How much of the EBITDA guidance increase is attributable to acquisitions? - The $10 million increase in EBITDA guidance is primarily attributable to acquisitions, with no significant core increase expected [31] Question: What is the revenue mix for the recently acquired companies? - The acquired companies do not have transfer assets, but there are opportunities for internalizing recyclables into existing facilities [33][34] Question: How does the recent large transaction by a competitor affect the market? - Management indicated that the transaction does not significantly impact their operations, as they were not receiving MSW from the involved parties [36] Question: What are the inflationary pressures and self-help initiatives in place? - Inflation has been stickier than expected, particularly in maintenance and landfill operations, but the company is adjusting pricing to offset these pressures [52][54] Question: How quickly can synergies from acquisitions be realized? - Synergies typically take a couple of years to fully materialize, with some immediate benefits expected within the first year [62] Question: What is the expected leverage ratio by year-end? - The pro forma leverage ratio is currently at 2.9x, with plans to maintain leverage around 3x or below over time [67]

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 (CWST) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -21.43%. A quarter ago, it was expected that this provider of garbage-disposal and recycling services would post a loss of $0.03 per share when it actually produced a loss of $0.01, delivering a surprise of 66.67%. Over th ...

Revenue Growth and Performance - Revenues for Q2 2024 were $377.2 million, up 30.2% YoY, driven by acquisitions, strong pricing, and higher recycling commodity prices[1][2] - Solid waste pricing increased by 5.7% YoY, with collection pricing up 6.2% and disposal pricing up 4.8%[1] - Total revenues for the three months ended June 30, 2024, were $377.163 million, with solid waste operations contributing 77.9% ($293.945 million) and resource solutions operations contributing 22.1% ($83.218 million)[28] - Total revenues for the six months ended June 30, 2024, were $718.170 million, with solid waste operations contributing 78.0% ($559.881 million) and resource solutions operations contributing 22.0% ($158.289 million)[29] - Collection services accounted for 59.4% ($223.959 million) of total revenues for the three months ended June 30, 2024, compared to 51.7% ($149.848 million) in the same period in 2023[28] - Disposal services accounted for 17.3% ($65.123 million) of total revenues for the three months ended June 30, 2024, compared to 22.0% ($63.629 million) in the same period in 2023[28] - Landfill gas-to-energy revenues were $1.983 million (0.5% of total revenues) for the three months ended June 30, 2024, compared to $1.321 million (0.5% of total revenues) in the same period in 2023[28] Net Income and Profitability - Net income for Q2 2024 was $7.0 million, up 27.6% YoY[1] - Net income for the six months ended June 30, 2024, was $2.9 million, down from $9.0 million in the same period in 2023[14] - Net income for the three months ended June 30, 2024, was $7.006 million, compared to $5.490 million in the same period in 2023[19] - Adjusted Net Income for the three months ended June 30, 2024, was $12.517 million, compared to $18.831 million in the same period in 2023[19] - Diluted earnings per common share for the three months ended June 30, 2024, was $0.12, compared to $0.10 in the same period in 2023[19] - Adjusted Diluted Earnings Per Common Share for the three months ended June 30, 2024, was $0.22, compared to $0.36 in the same period in 2023[19] Adjusted EBITDA and Operating Income - Adjusted EBITDA for Q2 2024 was $91.6 million, up 26.9% YoY, driven by acquisition rollover and 6.0% organic growth[2] - Adjusted EBITDA for the six months ended June 30, 2024, was $162.6 million, compared to $122.8 million in the same period in 2023[17] - Adjusted EBITDA as a percentage of revenues was 22.6% for the six months ended June 30, 2024, compared to 22.2% in the same period in 2023[17] - Adjusted Operating Income for the six months ended June 30, 2024, was $42.7 million, compared to $45.2 million in the same period in 2023[17] - Adjusted Operating Income as a percentage of revenues was 5.9% for the six months ended June 30, 2024, down from 8.2% in the same period in 2023[17] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the year-to-date period was $79.8 million, down from $83.2 million YoY, mainly due to higher cash interest payments and negative changes in working capital[2] - Adjusted Free Cash Flow for the year-to-date period was $39.5 million, down from $47.9 million YoY, driven by higher capital expenditures[2] - Net cash provided by operating activities for the six months ended June 30, 2024, was $79.8 million, down from $83.2 million in the same period in 2023[14] - Net cash provided by operating activities for the three months ended June 30, 2024, was $72.102 million, compared to $67.117 million in the same period in 2023[21] - Adjusted Free Cash Flow for the three months ended June 30, 2024, was $41.915 million, compared to $45.626 million in the same period in 2023[21] - Additions to property and equipment were $74.9 million for the six months ended June 30, 2024, up from $50.4 million in the same period in 2023[14] - Total capital expenditures for the six months ended June 30, 2024, were $74.900 million, compared to $50.415 million in the same period in 2023[33] - Growth capital expenditures for the three months ended June 30, 2024, were $9.959 million, compared to $6.903 million in the same period in 2023[33] - Replacement capital expenditures for the three months ended June 30, 2024, were $34.690 million, compared to $25.633 million in the same period in 2023[33] Acquisitions and Investments - The company acquired five businesses with over $100 million in aggregate annualized revenues, including LMR Disposal, Inc. and Whitetail Disposal, Inc. in the Mid-Atlantic region[2] - Acquisitions, net of cash acquired, amounted to $1.3 million for the six months ended June 30, 2024, compared to $547.6 million in the same period in 2023[14] - Acquisitions contributed $66.772 million (30.7% of operations) to solid waste operations for the three months ended June 30, 2024[31] - Proceeds from debt borrowings were $1.8 million for the six months ended June 30, 2024, compared to $430.0 million in the same period in 2023[14] Financial Guidance - Fiscal year 2024 revenue guidance raised to $1.520 billion - $1.550 billion, up from $1.480 billion - $1.510 billion[4] - Fiscal year 2024 Adjusted EBITDA guidance raised to $360 million - $370 million, up from $350 million - $360 million[4] - Fiscal year 2024 net income guidance lowered to $15 million - $25 million, down from $35 million - $45 million, due to higher acquisition-related expenditures[4] - Estimated Adjusted EBITDA for fiscal year 2024 is projected to be between $360 million and $370 million[25] - Estimated Net income for fiscal year 2024 is projected to be between $15 million and $25 million[25] - Estimated Adjusted Free Cash Flow for fiscal year 2024 is projected to be between $140 million and $150 million[26] - Capital expenditures for fiscal year 2024 are estimated to be $187 million[26] Resource Solutions Operations - Resource solutions operations saw a price increase contributing $3.129 million (4.3% of operations) and a volume increase contributing $4.793 million (6.7% of operations) for the three months ended June 30, 2024[31] Cash and Cash Equivalents - Cash and cash equivalents decreased to $208.5 million as of June 30, 2024, compared to $220.9 million as of December 31, 2023[12]

RUTLAND, Vt., Aug. 01, 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 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%, from the same period in 2023. Solid waste pricing for the quarter was up 5.7% from the same period in 2023, driven by 6.2% collection price growth and 4.8% d ...

RUTLAND, Vt., Aug. 01, 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 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%, from the same period in 2023. Solid waste pricing for the quarter was up 5.7% from the same period in 2023, driven by 6.2% collection price growth and 4.8% d ...

RUTLAND, Vt., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling, and resource management services company (the "Company"), announced that it has acquired two solid waste businesses with operations in the Mid-Atlantic, LMR Disposal LLC ("LMR"), which closed on July 1, 2024, and Whitetail Disposal, Inc. ("Whitetail"), which closed on August 1, 2024. The acquisitions include collection operations across eastern Pennsylvania and western New Jersey, c ...

America's Best Mid-Size Companies 2024 were identified based on three dimensions using more than 15 different criteria. The project scope considered all companies that operate in the United States and generated at least $100 million in revenue but less than $10 billion in 2022 or 2023. Employee Satisfaction: Data of standardized work-related KPIs based on survey data from a large sample of employees from U.S. companies. Revenue Growth: Revenue growth data of all relevant companies from the internal Growth D ...

Charlie Wohlhuter Director of Investor Relations (802) 772-2230 America's Best Mid-Size Companies 2024 were identified based on three dimensions using more than 15 different criteria. The project scope considered all companies that operate in the United States and generated at least $100 million in revenue but less than $10 billion in 2022 or 2023. "To be viewed as one of the best companies of our size in the U.S. is truly rewarding," said John W. Casella, Chairman and CEO of Casella. "And, most especially, ...