Casella(US:CWST)2019-08-02 20:05Revenue Performance - Total revenues for the quarter were $187.5 million, an increase of 13.2% from $165.6 million in the same quarter of 2018[144]. - Collection revenues increased by $17.5 million to $92.1 million, representing 49.1% of total revenues, compared to 45.0% in 2018[144]. - Solid waste revenues grew by $17.3 million, or 13.8%, for the quarter, driven by a $6.4 million increase in pricing[146]. - Organics revenues increased by $0.4 million quarterly, attributed to higher volumes from two large transportation and disposal contracts[160]. - Customer solutions revenues rose by $3.3 million quarterly, mainly due to organic growth in multi-site retail and industrial services[161]. - Recycling revenues increased by $1.6 million from higher tipping fees, despite a $1.3 million decline due to unfavorable commodity pricing[162]. - Year-to-date solid waste revenues increased by $28.6 million, or 12.1%, compared to the same period in 2018[146]. - The Eastern segment generated revenues of $57.1 million for the three months ended June 30, 2019, up from $53.6 million, while the Western segment saw revenues increase to $85.4 million from $71.0 million[185]. - Solid waste revenues in the Eastern Region increased by $3.5 million, representing a 6.5% growth for the three months ended June 30, 2019, compared to the same period in 2018[186]. - The Western Region reported solid waste revenues growth of $14.4 million, a 20.1% increase for the three months ended June 30, 2019, compared to the same period in 2018[196]. - Acquisitions contributed $3.4 million (6.3%) to quarterly solid waste revenues growth in the Eastern Region and $11.4 million (16.0%) in the Western Region[186][196]. Operational Costs - Cost of operations for the three months ended June 30, 2019, was $128.7 million, representing 68.6% of total revenues, an increase from $111.8 million (67.5%) for the same period in 2018[165]. - General and administration expenses for the three months ended June 30, 2019, were $22.1 million, or 11.8% of total revenues, compared to $20.8 million (12.6%) in the prior year[169]. - Depreciation and amortization expense for the three months ended June 30, 2019, was $19.7 million, accounting for 10.5% of total revenues, up from $17.4 million (10.6%) in the same period of 2018[173]. - Third-party direct costs increased by $8.2 million quarterly and $13.7 million year-to-date, driven by higher disposal costs and increased reliance on third-party disposal sites[167]. - Labor and related benefit costs rose by $3.6 million quarterly and $7.6 million year-to-date, primarily due to acquisition activity and wage increases[168]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2019, was $38.3 million, a decrease of $9.8 million compared to $48.1 million for the same period in 2018[219]. - Net cash used in investing activities was $(74.0) million for the six months ended June 30, 2019, compared to $(57.9) million in 2018[226]. - The company acquired three solid waste collection businesses for a total consideration of $28.9 million in the six months ended June 30, 2019[227]. - Capital expenditures increased by $11.2 million in the six months ended June 30, 2019, primarily due to business growth and acquisition activities[228]. Debt and Financial Position - The company’s long-term debt decreased from $555.2 million as of December 31, 2018, to $496.7 million as of June 30, 2019[218]. - As of June 30, 2019, the company had outstanding long-term debt of $350.0 million under its Term Loan Facility and $3.1 million under its Revolving Credit Facility[236]. - The maximum consolidated net leverage ratio was 3.18, well below the covenant requirement of 4.50 as of June 30, 2019[237]. - The company was in compliance with all financial covenants contained in the Credit Agreement as of June 30, 2019[240]. Market Risks and Strategies - The company is exposed to market risks, including changes in interest rates and commodity prices, and employs various strategies to mitigate these risks[256]. - A $10 per ton change in commodity prices is estimated to impact annual operating income by approximately $0.7 million[259]. - The company has implemented operating efficiency programs to mitigate inflation impacts on operating results[248]. - The company continues to monitor cash flows and liquidity, relying on operating cash flows and borrowings from a $200.0 million Revolving Credit Facility to meet capital requirements[217]. Seasonal Trends - The company’s operations are affected by seasonality, with higher revenues typically in late spring, summer, and early fall[250].