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Dec 31, 2021
Casella Q4 2021 Earnings Report
Casella's Q4 2021 financial results exceeded expectations due to solid pricing, operating execution, cost efficiencies, and strong cash flow growth.
Key Takeaways
Casella Waste Systems reported strong Q4 2021 results with a 20.8% increase in revenues, driven by acquisitions, positive pricing, and higher volumes. Adjusted EBITDA increased by 20.6%, and the company provided fiscal year 2022 guidance.
Revenues increased by 20.8% compared to the same period in 2020, reaching $241.8 million.
Overall solid waste pricing increased by 4.3%, driven by collection and landfill pricing.
Adjusted Net Income rose by 25.6% to $11.0 million.
Operating income increased by 14.8% to $16.3 million.
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 fiscal year 2022 by estimating revenues between $980 million and $995 million, net income between $48 million and $52 million, Adjusted EBITDA between $228 million and $232 million, net cash provided by operating activities between $202 million and $206 million, and Adjusted Free Cash Flow between $104 million and $108 million.
Positive Outlook
- Overall revenue growth of between 10.2% and 11.9% in fiscal year 2022.
- Approximately 6.2% revenue growth from the roll-over impact of acquisitions.
- Solid Waste business revenue growth of between 13.3% and 14.3%.
- Price growth from 4.5% to 5.0% in the Solid Waste business.
- Volume growth from 1.5% to 2.0% in the Solid Waste business.
Challenges Ahead
- Does not include the impact of any acquisitions that have not yet been completed.
- Lower recycling commodity prices may partially offset growth in the resource solutions business.
- Capital expenditures of approximately $120 million, including $15 million of non-recurring capital associated with acquisition integration.
- Net cash provided by operating activities will be negatively impacted by $6.5 million on landfill closure expenditures.
- Guidance ranges assume a stable economic environment continuing from the fourth quarter 2021 through the remainder of 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income