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Dec 31, 2019
Casella Q4 2019 Earnings Report
Casella reported Q4 2019 financial results, showing revenue increase and improved profitability.
Key Takeaways
Casella Waste Systems reported a strong fourth quarter with revenues up 10.8% to $193.6 million and net income of $9.1 million. The company's solid waste pricing programs were ahead of budget, and they continued to execute against their key strategies.
Revenues increased by 10.8% compared to the same period in 2018, reaching $193.6 million.
Net income rose to $9.1 million, a $22.7 million increase from the same period in 2018.
Overall solid waste pricing increased by 5.0%, driven by collection and landfill pricing increases.
The company acquired nine businesses with approximately $53 million of annualized revenues during 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 provided guidance for the fiscal year ending December 31, 2020, expecting revenue between $800 million and $815 million, net income between $35 million and $39 million, and Adjusted EBITDA between $170 million and $174 million.
Positive Outlook
- Revenue growth of between 7.6% and 9.6% is expected in fiscal year 2020.
- 4.7% revenue growth from the roll-over impact of acquisitions completed during fiscal year 2019 and those already completed in early 2020.
- Solid Waste business revenue growth of between 9.0% and 11.0%.
- Price growth from 3.5% to 4.5% in the Solid Waste business.
- Net cash provided by operating activities between $131 million and $135 million
Challenges Ahead
- Volume growth from (0.5)% to 0.5% in the Solid Waste business, including a headwind from the reduction of volumes at the North Country landfill.
- The planned reduction of volumes at the North Country landfill is expected to negatively impact revenues by $(5.0) million and operating income by $(4.5) million from fiscal year 2019.
- Capital expenditures of approximately $113 million, which includes approximately $16 million of non-recurring capital associated with acquisition integration, and $12 million of Waste USA landfill phase VI construction capital expenditures.
- Net cash provided by operating activities will be negatively impacted in 2020 as we plan to spend $14 million on landfill closure, site improvement and remediation expenditures associated with the Southbridge landfill closure.
- Does not include the impact of any acquisitions that have not yet been completed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income