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Jun 30, 2023
Casella Q2 2023 Earnings Report
Casella Waste Systems, Inc. reported solid second quarter financial results, driven by operating efficiency and growth strategy execution. The company raised its revenue, Adjusted EBITDA, net cash provided by operating activities, and Adjusted Free Cash Flow guidance ranges and updated its net income guidance range for fiscal year 2023.
Key Takeaways
Casella Waste Systems reported a 2.1% increase in revenue to $289.6 million for the quarter. Net income was $5.5 million, while Adjusted EBITDA was $72.2 million, up 5.5% from the same period in 2022. The company also updated its fiscal year 2023 guidance ranges.
Revenues were $289.6 million for the quarter, up 2.1% from the same period in 2022.
Overall solid waste pricing for the quarter was up 7.7% from the same period in 2022, primarily a result of 8.2% higher collection pricing and 7.1% higher disposal pricing.
Net income was $5.5 million for the quarter, down (69.2)% from the same period in 2022, negatively impacted by non-recurring items.
Adjusted EBITDA was $72.2 million for the quarter, up 5.5% from the same period in 2022.
Casella
Casella
Casella Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comDisposal Revenue
CapyFin.comSolid Waste Processing Revenue
CapyFin.com Forward Guidance
The Company raised guidance for fiscal year 2023 and updated certain guidance for fiscal year 2023.
Positive Outlook
- Revenues between $1.240 billion and $1.265 billion.
- Adjusted EBITDA between $289 million and $295 million.
- Net cash provided by operating activities between $231 million and $237 million.
- Adjusted Free Cash Flow between $123 million and $129 million.
- Expected contribution from acquisitions closed through the first half of this year and the expectation that our solid waste operations continue to perform at budget during the remainder of the year.
Challenges Ahead
- Net income between $41 million and $47 million.
- Assumes a stable economic environment through the remainder of the year.
- The closure of the Subtitle D landfill located in Southbridge, Massachusetts could result in material unexpected costs.
- Recent changes in solid waste laws of the State of Maine may result in lower revenues or higher operating costs.
- Adverse weather conditions may negatively impact the Company's revenues and its operating margin.
Revenue & Expenses
Visualization of income flow from segment revenue to net income