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Jun 30, 2021

Casella Q2 2021 Earnings Report

Casella's Q2 2021 financial results exceeded expectations, driven by solid operating execution, cost efficiencies, and strong free cash flow growth.

Key Takeaways

Casella Waste Systems reported a strong operational quarter with revenues up 14.4% and net income down slightly by 2.7%. The company increased Adjusted EBITDA by 18.5% and Adjusted EBITDA margins by 84 basis points year-over-year. They also completed the acquisition of Willimantic, expanding their operating footprint.

Revenues increased by 14.4% compared to the same period in 2020, reaching $215.9 million.

Overall solid waste pricing increased by 4.0%, driven by collection and landfill pricing.

Net income decreased slightly by 2.7% to $11.8 million.

Adjusted EBITDA increased by 18.5% to $52.1 million.

Total Revenue
$216M
Previous year: $189M
+14.4%
EPS
$0.25
Previous year: $0.27
-7.4%
Solid Waste Price Growth
4%
Previous year: 4.4%
-9.1%
Gross Profit
$77.3M
Previous year: $65.3M
+18.4%
Cash and Equivalents
$167M
Previous year: $3.07M
+5340.2%
Free Cash Flow
$17.6M
Previous year: $16M
+10.3%
Total Assets
$1.23B
Previous year: $967M
+27.0%

Casella

Casella

Casella Revenue by Segment

Forward Guidance

The Company raised guidance for the second time in fiscal year 2021 by estimating results (including Willimantic)

Positive Outlook

  • Revenues between $850 million and $860 million (as compared to $815 million to $830 million)
  • Net income between $35 million and $39 million (as compared to $33 million to $37 million)
  • Adjusted EBITDA between $195 million and $199 million (as compared to $185 million and $189 million)
  • Net cash provided by operating activities between $158 million and $162 million (as compared to $150 million to $154 million)
  • Adjusted Free Cash Flow between $79 million and $83 million (as compared to $76 million and $80 million)

Revenue & Expenses

Visualization of income flow from segment revenue to net income