Casella Q4 2023 Earnings Report
Key Takeaways
Casella Waste Systems reported a strong Q4 2023, marked by a 32.1% increase in revenues to $359.6 million. The company's performance was driven by strategic acquisitions, positive pricing in collection and disposal, and higher commodity prices. While the company reported a net loss of $(1.8) million for the quarter, adjusted EBITDA rose by 46.1% to $82.2 million, reflecting organic growth and successful operating initiatives.
Revenues increased by 32.1% to $359.6 million, driven by acquisitions and positive pricing.
Net loss was $(1.8) million, compared to net income of $8.4 million in the same period last year.
Adjusted EBITDA increased by 46.1% to $82.2 million, with organic growth of 17.1%.
Acquired seven businesses in fiscal year 2023 with approximately $315 million of annualized revenues.
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Casella Revenue by Segment
Forward Guidance
Casella provided fiscal year 2024 guidance, estimating revenues between $1.480 billion and $1.510 billion, net income between $35 million and $45 million, and Adjusted EBITDA between $350 million and $360 million.
Positive Outlook
- Expect approximately $175 million of revenue growth related to the roll over contribution of acquisitions closed in 2023.
- Expect to drive further margin expansion in 2024 through continued execution of operating and pricing programs.
- Plan to continue upfront capital investment in recently acquired businesses to achieve targeted synergies.
- Plan to bring the assets up to the Company's standards while making further investments in our portfolio of development projects.
- Expect revenue growth of between approximately 17% and 19% in fiscal year 2024.
Challenges Ahead
- Guidance ranges assume a stable economic environment through 2024 but reflect a cautious outlook for construction and demolition volumes.
- Does not include the impact of any acquisitions that have not yet been completed.
- In the Solid Waste business, expect volume growth of 0.0% to down (1.0)%.
- Capital expenditures of approximately $180 million, which includes approximately $40 million of non-recurring capital associated with acquisitions and approximately $5 million of capital associated with the McKean Landfill rail project.
- Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2024 do not contemplate any unanticipated impacts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income