Casella(CWST) - 2024 Q2 - Quarterly Results

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]