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Casella
🇺🇸 NASDAQ:CWST
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Sep 30, 2022

Casella Q3 2022 Earnings Report

Reported strong Q3 2022 results with revenue up 22.0% and net income up 42.9% year-over-year, driven by operating initiatives, pricing programs, and disciplined growth strategy.

Key Takeaways

Casella Waste Systems reported a strong third quarter with revenue increasing by 22.0% to $295.3 million and net income rising by 42.9% to $22.7 million compared to the same period in 2021. The company's performance was driven by effective operating and pricing initiatives that offset inflation, along with contributions from recent acquisitions. The company also updated its fiscal year 2022 guidance, raising expectations for revenue, net income, Adjusted EBITDA, and net cash provided by operating activities.

Revenues increased by 22.0% to $295.3 million compared to the same period in 2021.

Net income increased by 42.9% to $22.7 million compared to the same period in 2021.

Overall solid waste pricing increased by 6.6%, with collection pricing up 7.2% and disposal pricing up 6.0%.

The company acquired 13 businesses year-to-date with approximately $48 million of annualized revenues.

Total Revenue
$295M
Previous year: $242M
+22.0%
EPS
$0.45
Previous year: $0.34
+32.4%
Solid Waste Price Growth
6.6%
Previous year: 4.1%
+61.0%
Gross Profit
$105M
Previous year: $88.1M
+19.2%
Cash and Equivalents
$47.9M
Previous year: $46.5M
+3.1%
Free Cash Flow
$27.4M
Previous year: $29.6M
-7.4%
Total Assets
$1.4B
Previous year: $1.28B
+9.3%

Casella

Casella

Casella Revenue by Segment

Forward Guidance

Casella Waste Systems updated its fiscal year 2022 guidance, raising expectations for revenue, net income, Adjusted EBITDA, and net cash provided by operating activities while reaffirming guidance for Adjusted Free Cash Flow.

Positive Outlook

  • Revenues between $1.065 billion and $1.080 billion
  • Net income between $53 million and $56 million
  • Adjusted EBITDA between $245 million and $248 million
  • Net cash provided by operating activities between $210 million and $214 million
  • Adjusted Free Cash Flow between $106 million and $110 million

Challenges Ahead

  • Guidance assumes the economy does not significantly change through the remainder of the year
  • Inflation remains at current historically high levels
  • Recycling commodity prices decline another 20% sequentially
  • Unanticipated or non-recurring impacts are not contemplated in the estimates
  • These forward-looking estimates for fiscal year 2022 do not contemplate any unanticipated or non-recurring impacts.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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