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Sep 30, 2020
Casella Q3 2020 Earnings Report
Financial results exceeded expectations with strong operating execution, real-time cost controls and disciplined cash flow management.
Key Takeaways
Casella Waste Systems reported revenues of $202.7 million for the quarter, a 2.1% increase compared to the same period in 2019. Net income was $15.1 million, up 22.0% from the prior year. The company also raised its fiscal year 2020 guidance for revenue, net income, Adjusted EBITDA, net cash provided by operating activities, and Adjusted Free Cash Flow.
Revenues were $202.7 million for the quarter, up $4.1 million, or up 2.1%, from the same period in 2019.
Overall solid waste pricing for the quarter was up 4.0%, with collection pricing up 3.7%, and landfill pricing up 6.9%, from the same period in 2019.
Net income was $15.1 million for the quarter, up $2.7 million, or up 22.0%, from the same period in 2019.
Adjusted EBITDA, a non-GAAP measure, was $51.3 million for the quarter, up $2.8 million, or up 5.9%, from the same period in 2019.
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 updated guidance for fiscal year 2020 by estimating revenues between $760 million and $775 million, net income between $30 million and $34 million, Adjusted EBITDA between $166 million and $170 million, net cash provided by operating activities between $132 million and $136 million, and Adjusted Free Cash Flow between $60 million and $64 million.
Positive Outlook
- Revenues between $760 million and $775 million (raised from $755 million to $770 million).
- Net income between $30 million and $34 million (raised from $23 million to $28 million).
- Adjusted EBITDA between $166 million and $170 million (raised from $158 million to $163 million).
- Net cash provided by operating activities between $132 million and $136 million (raised from $122 million to $126 million).
- Adjusted Free Cash Flow between $60 million and $64 million (raised from $53 million to $57 million).
Challenges Ahead
- There are still many variables outside of our control, such as new waves of COVID-19.
- Additional stay-at-home orders and impacts on the economy as the Federal stimulus programs run their course.
- Guidance ranges assume a modestly declining to stable economic environment for the remainder of the year.
- Guidance ranges do not contemplate a severe relapse of the COVID-19 pandemic
- New stay-at-home orders, which may negatively impact commercial and general economic activity in our markets through the remainder of 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income