Casella Q3 2023 Earnings Report
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
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