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Jun 30, 2020
Casella Q2 2020 Earnings Report
Financial results exceeded forecast due to strong operating execution, real-time cost controls, and disciplined cash flow management.
Key Takeaways
Casella Waste Systems reported revenues of $188.8 million for the quarter, a 0.7% increase from the same period in 2019. Net income was $12.1 million, up 1.7% from the previous year, and Adjusted EBITDA was $44.0 million, an 8.9% increase. The company maintained pricing discipline with collection pricing up 4.3% and landfill pricing up 6.2%. They also reintroduced fiscal year 2020 guidance.
Revenues for the quarter were $188.8 million, up 0.7% from the same period in 2019.
Overall solid waste pricing for the quarter was up 4.4%, with collection pricing up 4.3%, and landfill pricing up 6.2%, from the same period in 2019.
Net income was $12.1 million for the quarter, up 1.7% from the same period in 2019.
Adjusted EBITDA was $44.0 million for the quarter, up 8.9% from the same period in 2019.
Revenue by Segment
Forward Guidance
The Company provided guidance for fiscal year 2020 by estimating results in the following ranges: Revenues between $755 million and $770 million; Net income between $23 million and $28 million; Adjusted EBITDA between $158 million and $163 million; Net cash provided by operating activities between $122 million and $126 million; and Adjusted Free Cash Flow between $53 million and $57 million.
Positive Outlook
- Revenues between $755 million and $770 million
- Net income between $23 million and $28 million
- Adjusted EBITDA between $158 million and $163 million
- Net cash provided by operating activities between $122 million and $126 million
- Adjusted Free Cash Flow between $53 million and $57 million
Challenges Ahead
- Variables outside of their control, such as new waves of COVID-19
- Additional stay-at-home orders
- Impacts on the economy as the Federal stimulus programs run their course
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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