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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.
Casella
Casella
Casella Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comDisposal Revenue
CapyFin.com 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
- Guidance ranges assume a stable to modestly improving economic environment for the remainder of the year
- Experienced a rapid recovery in business activity from late April through mid-June as the stay-at-home orders were first lifted, however this rebound has flattened through July and they do not expect their normal seasonal business uptick from the second to third quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income