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Sep 30, 2023
Casella Q3 2023 Earnings Report
Casella's third quarter financial results were announced, demonstrating strong performance driven by the company's growth strategy and investments in Resource Solutions. The company raised its revenue, Adjusted EBITDA, 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 solid third quarter with revenues up 19.5% to $352.7 million. The company experienced growth through acquisitions, positive pricing, and higher commodity volumes, although solid waste volumes were down. Net income was $18.2 million, and Adjusted EBITDA reached $89.6 million, up 19.4%.
Revenues increased by 19.5% to $352.7 million, driven by acquisitions and positive pricing.
Overall solid waste pricing increased by 6.9%, with collection pricing up 7.6% and disposal pricing up 5.9%.
Net income was $18.2 million, a decrease of 19.8% compared to the same period in 2022.
Adjusted EBITDA increased by 19.4% to $89.6 million.
Casella
Casella
Casella Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comDisposal Revenue
CapyFin.comSolid Waste Processing Revenue
CapyFin.com Forward Guidance
Casella updated its fiscal year 2023 guidance, expecting revenue between $1.255 billion and $1.280 billion, Adjusted EBITDA between $292 million and $298 million, and Adjusted Free Cash Flow between $125 million and $131 million. They reaffirmed net cash provided by operating activities between $231 million and $237 million and updated net income between $33 million and $39 million.
Positive Outlook
- Revenue between $1.255 billion and $1.280 billion
- Adjusted EBITDA between $292 million and $298 million
- Adjusted Free Cash Flow between $125 million and $131 million
- Net cash provided by operating activities between $231 million and $237 million
- Assumes stable economic activity levels for the remainder of the year
Challenges Ahead
- Net income between $33 million and $39 million
- Reduction in net income primarily associated with recent acquisition activity.
- Depreciation and amortization up $11.0 million.
- Interest expense net up $2.0 million.
- Expense from acquisition activities up $3.0 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income