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Dec 31, 2023
Casella Q4 2023 Earnings Report
Casella's Q4 2023 earnings were announced, showcasing significant revenue growth and strategic acquisitions.
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.
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 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