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Jun 30, 2022

Casella Q2 2022 Earnings Report

Casella's Q2 2022 financial performance showcased strong execution against operating efficiency programs, robust pricing, and growth strategy.

Key Takeaways

Casella Waste Systems reported strong second-quarter results, driven by its operating efficiency programs, robust pricing, and growth strategy. The company's revenue surpassed $1.0 billion for the twelve months ended June 30, 2022, a first in its history. Due to the strong results, the company raised its fiscal year 2022 guidance.

Revenues were $283.7 million for the quarter, up 31.4% from the same period in 2021.

Overall solid waste pricing for the quarter was up 6.9%, driven by collection pricing, up 7.7%, and disposal pricing, up 5.7%, from the same period in 2021.

Net income was $17.8 million for the quarter, up 51.0% from the same period in 2021.

Adjusted EBITDA was $68.5 million for the quarter, up 31.4% from the same period in 2021.

Total Revenue
$284M
Previous year: $216M
+31.4%
EPS
$0.36
Previous year: $0.25
+44.0%
Solid Waste Price Growth
6.9%
Previous year: 4%
+72.5%
Gross Profit
$97.6M
Previous year: $77.3M
+26.3%
Cash and Equivalents
$39.3M
Previous year: $167M
-76.5%
Free Cash Flow
$25.6M
Previous year: $17.6M
+45.1%
Total Assets
$1.37B
Previous year: $1.23B
+11.6%

Casella

Casella

Casella Revenue by Segment

Forward Guidance

The Company raised guidance for fiscal year 2022 by estimating results in the following ranges: •Revenues between $1.035 billion and $1.050 billion (raised from a range of $1.005 billion to $1.020 billion); •Net income between $50 million and $54 million (raised from a range of $48 million to $52 million); •Adjusted EBITDA between $238 million and $242 million (raised from a range of $232 million to $236 million); •Net cash provided by operating activities between $208 million and $212 million (raised from a range of $204 million to $208 million); and •Adjusted Free Cash Flow between $106 million and $110 million (raised from a range of $104 million to $108 million).

Positive Outlook

  • Revenues between $1.035 billion and $1.050 billion
  • Net income between $50 million and $54 million
  • Adjusted EBITDA between $238 million and $242 million
  • Net cash provided by operating activities between $208 million and $212 million
  • Adjusted Free Cash Flow between $106 million and $110 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income