Casella Q4 2021 Earnings Report
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
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