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Mar 31, 2022
Casella Q1 2022 Earnings Report
Casella Waste Systems, Inc. announced first quarter 2022 results, reflecting strong pricing programs and the continued execution of key operating programs. The company also updated fiscal year 2022 guidance.
Key Takeaways
Casella Waste Systems reported a revenue increase of 23.5% compared to the same period in 2021, driven by acquisitions, positive pricing, and higher volumes. Net income decreased slightly, while adjusted EBITDA increased by 17.3%. The company updated its fiscal year 2022 guidance, raising revenue and adjusted EBITDA expectations.
Revenues increased by 23.5% to $234.0 million compared to Q1 2021.
Overall solid waste pricing increased by 5.6%, with collection pricing up 6.5% and disposal pricing up 4.0%.
Net income decreased by 2.8% to $4.2 million, impacted by depreciation and amortization expenses.
Adjusted Free Cash Flow increased by 59.4% to $16.3 million compared to Q1 2021.
Casella
Casella
Casella Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comDisposal Revenue
CapyFin.comSolid Waste Processing Revenue
CapyFin.com Forward Guidance
Casella updated certain fiscal year 2022 guidance ranges, expecting positive contributions from the Northstar acquisition and strong operating execution. The guidance assumes a stable economic environment and expects pricing and cost recovery fees to outpace inflation.
Positive Outlook
- Revenues between $1.005 billion and $1.020 billion (raised from a range of $980 million to $995 million).
- Adjusted EBITDA between $232 million and $236 million (raised from a range of $228 million to $232 million).
- Net cash provided by operating activities between $204 million and $208 million (raised from a range of $202 million to $206 million).
- Net income between $48 million and $52 million (reaffirmed).
- Adjusted Free Cash Flow between $104 million and $108 million (reaffirmed).
Challenges Ahead
- Guidance assumes a stable economic environment continuing through the remainder of the year, including the current historically high inflationary environment.
- Forward-looking estimates for fiscal year 2022 do not contemplate any unanticipated or non-recurring impacts.
- Company may be unable to adequately increase prices to offset increased costs and inflationary pressures, including increased fuel prices.
- It is challenging to predict the duration and scope of the COVID-19 pandemic and its negative effect on the economy, our operations and financial results.
- The capping and closure of the Subtitle D landfill located in Southbridge, Massachusetts could result in material unexpected costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income