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Casella(CWST) - 2024 Q2 - Quarterly Results
CWSTCasella(CWST)2024-08-01 20:46

Revenue Growth and Performance - Revenues for Q2 2024 were 377.2million,up30.2377.2 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% (293.945million)andresourcesolutionsoperationscontributing22.1293.945 million) and resource solutions operations contributing 22.1% (83.218 million)[28] - Total revenues for the six months ended June 30, 2024, were 718.170million,withsolidwasteoperationscontributing78.0718.170 million, with solid waste operations contributing 78.0% (559.881 million) and resource solutions operations contributing 22.0% (158.289million)[29]−Collectionservicesaccountedfor59.4158.289 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% (149.848million)inthesameperiodin2023[28]−Disposalservicesaccountedfor17.3149.848 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% (63.629million)inthesameperiodin2023[28]−Landfillgas−to−energyrevenueswere63.629 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 1.321million(0.51.321 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 2.9million,downfrom2.9 million, down from 9.0 million in the same period in 2023[14] - Net income for the three months ended June 30, 2024, was 7.006million,comparedto7.006 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 12.517million,comparedto12.517 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,comparedto0.12, 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,comparedto0.22, compared to 0.36 in the same period in 2023[19] Adjusted EBITDA and Operating Income - Adjusted EBITDA for Q2 2024 was 91.6million,up26.991.6 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 122.8millioninthesameperiodin2023[17]−AdjustedEBITDAasapercentageofrevenueswas22.6122.8 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 45.2millioninthesameperiodin2023[17]−AdjustedOperatingIncomeasapercentageofrevenueswas5.945.2 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 83.2millionYoY,mainlyduetohighercashinterestpaymentsandnegativechangesinworkingcapital[2]−AdjustedFreeCashFlowfortheyear−to−dateperiodwas83.2 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 47.9millionYoY,drivenbyhighercapitalexpenditures[2]−NetcashprovidedbyoperatingactivitiesforthesixmonthsendedJune30,2024,was47.9 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 83.2millioninthesameperiodin2023[14]−NetcashprovidedbyoperatingactivitiesforthethreemonthsendedJune30,2024,was83.2 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 67.117millioninthesameperiodin2023[21]−AdjustedFreeCashFlowforthethreemonthsendedJune30,2024,was67.117 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 45.626millioninthesameperiodin2023[21]−Additionstopropertyandequipmentwere45.626 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 50.4millioninthesameperiodin2023[14]−TotalcapitalexpendituresforthesixmonthsendedJune30,2024,were50.4 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 50.415millioninthesameperiodin2023[33]−GrowthcapitalexpendituresforthethreemonthsendedJune30,2024,were50.415 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 6.903millioninthesameperiodin2023[33]−ReplacementcapitalexpendituresforthethreemonthsendedJune30,2024,were6.903 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 25.633millioninthesameperiodin2023[33]AcquisitionsandInvestments−Thecompanyacquiredfivebusinesseswithover25.633 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 1.3millionforthesixmonthsendedJune30,2024,comparedto1.3 million for the six months ended June 30, 2024, compared to 547.6 million in the same period in 2023[14] - Acquisitions contributed 66.772million(30.766.772 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 430.0millioninthesameperiodin2023[14]FinancialGuidance−Fiscalyear2024revenueguidanceraisedto430.0 million in the same period in 2023[14] Financial Guidance - Fiscal year 2024 revenue guidance raised to 1.520 billion - 1.550billion,upfrom1.550 billion, up from 1.480 billion - 1.510billion[4]−Fiscalyear2024AdjustedEBITDAguidanceraisedto1.510 billion[4] - Fiscal year 2024 Adjusted EBITDA guidance raised to 360 million - 370million,upfrom370 million, up from 350 million - 360million[4]−Fiscalyear2024netincomeguidanceloweredto360 million[4] - Fiscal year 2024 net income guidance lowered to 15 million - 25million,downfrom25 million, down from 35 million - 45million,duetohigheracquisition−relatedexpenditures[4]−EstimatedAdjustedEBITDAforfiscalyear2024isprojectedtobebetween45 million, due to higher acquisition-related expenditures[4] - Estimated Adjusted EBITDA for fiscal year 2024 is projected to be between 360 million and 370million[25]−EstimatedNetincomeforfiscalyear2024isprojectedtobebetween370 million[25] - Estimated Net income for fiscal year 2024 is projected to be between 15 million and 25million[25]−EstimatedAdjustedFreeCashFlowforfiscalyear2024isprojectedtobebetween25 million[25] - Estimated Adjusted Free Cash Flow for fiscal year 2024 is projected to be between 140 million and 150million[26]−Capitalexpendituresforfiscalyear2024areestimatedtobe150 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 3.129million(4.33.129 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 208.5millionasofJune30,2024,comparedto208.5 million as of June 30, 2024, compared to 220.9 million as of December 31, 2023[12]