Casella Q4 2022 Earnings Report
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
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