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Dec 31, 2022
Casella Q4 2022 Earnings Report
Casella's Q4 2022 financial results were announced, revealing revenue growth and solid waste pricing improvements.
Key Takeaways
Casella Waste Systems reported a 12.5% increase in revenue for Q4 2022, driven by positive collection and disposal pricing. Net income decreased by 7.9% compared to the same period in 2021. The company exceeded $1 billion in revenues and $100 million in Adjusted Free Cash Flow in fiscal year 2022 for the first time in its history.
Revenues increased by 12.5% to $272.1 million for the quarter.
Overall solid waste pricing increased by 6.2%, with collection pricing up 6.7% and disposal pricing up 5.4%.
Net income decreased by 7.9% to $8.4 million for the quarter.
Adjusted EBITDA increased by 9.3% to $56.2 million for the quarter.
Casella
Casella
Casella Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comDisposal Revenue
CapyFin.comSolid Waste Processing Revenue
CapyFin.com Forward Guidance
Casella provided guidance for fiscal year 2023, estimating revenues between $1.150 billion and $1.180 billion, net income between $56 million and $62 million, Adjusted EBITDA between $266 million and $272 million, net cash provided by operating activities between $227 million and $233 million, and Adjusted Free Cash Flow between $119 million and $125 million.
Positive Outlook
- Revenue growth of between 6.0% and 8.7% is expected in fiscal year 2023.
- Approximately 1.4% of revenue growth from the roll-over impact of acquisitions completed during fiscal year 2022.
- Solid Waste business revenue growth of between 9.7% and 11.2%.
- Price growth from 6.0% to 7.0% in the Solid Waste business.
- Volume growth from 0.5% to 1.0% in the Solid Waste business.
Challenges Ahead
- Guidance assumes a stable economic environment for the remainder of 2023, with a year-over-year headwind from lower recycling commodity values during the first half of the year.
- Resource Solutions business revenue growth of between (3.7)% and 2.3%.
- Lower recycling commodity prices are expected to offset positive price and volumes in the Resource Solutions business.
- Capital expenditures of approximately $141 million, which includes approximately $18 million of non-recurring capital associated with acquisition integration.
- Net cash provided by operating activities will be negatively impacted in fiscal year 2023 as the company plans to spend approximately $11.0 million on landfill capping, closure and post-closure expenditures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income