NASDAQ$CWST

Casella Waste Systems Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Casella's Q2 2021 financial results exceeded expectations, driven by solid operating execution, cost efficiencies, and strong free cash flow growth.

Casella Waste Systems reported a strong operational quarter with revenues up 14.4% and net income down slightly by 2.7%. The company increased Adjusted EBITDA by 18.5% and Adjusted EBITDA margins by 84 basis points year-over-year. They also completed the acquisition of Willimantic, expanding their operating footprint.

  • Revenues increased by 14.4% compared to the same period in 2020, reaching $215.9 million.
  • Overall solid waste pricing increased by 4.0%, driven by collection and landfill pricing.
  • Net income decreased slightly by 2.7% to $11.8 million.
  • Adjusted EBITDA increased by 18.5% to $52.1 million.

Headline financials

Total Revenue

$216M

Previous: $189M+14.4%
EPS (adj)

$0.25

Previous: $0.27-7.4%
Solid Waste Price Growth

4.0%

Previous: 4.4%-9.1%
Solid Waste Volume Growth

7.1%

Previous: -12.4%+157.3%
Capital Expenditures

-$56.1M

Previous: -$51.6M-8.7%
Free Cash Flow

-$44.3M

Previous: -$39.5M-12.2%
Net Income

$11.8M

Previous: $12.1M-2.7%
Operating Income

$21.9M

Previous: $17.4M+25.8%
Gross Profit

$77.3M

Previous: $65.3M+18.4%
Cash & Equivalents

$167M

Previous: $3.07M+5340.2%
Total Assets

$1.23B

Previous: $967M+27.0%
Stock-Based Comp

$3.12M

Previous: $1.82M+71.4%

Revenue & EPS history

Casella · Revenue · Quarterly

$216M

Q2 2021+14.4%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Casella · $159M total across 3 segments · Q2 2021

  • Collection
    $107M+14.2%
  • Disposal
    $49.2M+12.4%
  • Solid Waste Processing
    $2.31M

Forward guidance

The Company raised guidance for the second time in fiscal year 2021 by estimating results (including Willimantic)

Tailwinds

  • Revenues between $850 million and $860 million (as compared to $815 million to $830 million)
  • Net income between $35 million and $39 million (as compared to $33 million to $37 million)
  • Adjusted EBITDA between $195 million and $199 million (as compared to $185 million and $189 million)
  • Net cash provided by operating activities between $158 million and $162 million (as compared to $150 million to $154 million)
  • Adjusted Free Cash Flow between $79 million and $83 million (as compared to $76 million and $80 million)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.6%

Avg return

30 days after

61%

36 / 59 earnings

Positive

+27.5%

Q1 2010

Best reaction

-7.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.7%+6.7%+3.7%
Q4 2025-5.8%-12.0%-23.3%
Q3 2025+7.1%+8.6%+16.4%
Q1 2025-0.7%+2.5%-0.1%
Q4 2024+0.1%+7.8%+0.7%
Q3 2024-4.4%-2.9%+10.5%
Q2 2024+1.8%-1.5%+4.2%
Q1 2024-5.2%-4.8%+5.0%
Q4 2023-0.1%-1.4%+4.5%
Q3 2023+4.1%+5.7%+10.8%
Q2 2023-4.7%-2.4%-4.5%
Q1 2023+2.8%+3.4%+6.7%
Q4 2022-4.4%-4.9%-1.9%
Q3 2022+3.9%+6.8%+10.3%
Q2 2022+6.2%+7.0%+7.7%
Q1 2022-5.6%-11.9%-16.4%
Q4 2021+1.0%-4.1%+17.2%
Q3 2021+4.6%+5.1%+3.3%
Q2 2021+6.1%+7.4%+13.1%
Q1 2021+0.7%+0.6%+1.1%
Q4 2020+1.6%+0.3%+7.6%
Q3 2020-3.0%+0.3%+7.2%
Q2 2020+0.3%+2.1%+5.6%
Q1 2020+7.0%+6.4%+13.8%
Q4 2019-2.5%-3.3%-26.0%
Q3 2019-0.9%-1.2%+9.7%
Q2 2019+3.8%+2.9%+4.4%
Q1 2019+0.5%+0.6%+3.1%
Q4 2018+0.4%-0.7%-0.4%
Q3 2018-7.6%-4.8%+0.3%
Q2 2018+1.3%+2.4%+1.4%
Q1 2018+7.7%+0.2%-4.7%
Q4 2017-2.2%-5.4%-8.0%
Q3 2017+12.0%+6.7%+14.2%
Q2 2017-7.2%-5.3%+0.9%
Q1 2017-0.6%-1.1%-1.6%
Q4 2016+10.2%+12.1%+20.8%
Q3 2016+3.1%+6.1%+20.1%
Q2 2016+4.3%+5.5%+2.7%
Q1 2016+0.4%
Q4 2015+2.5%
Q3 2015-0.5%
Q2 2015+3.0%
Q1 2015+0.0%
Q1 2014-1.2%
Q3 2013-2.0%
Q2 2014-1.3%
Q2 2013+6.5%
Q1 2013+5.9%
Q4 2012+8.3%
Q2 2012+8.3%
Q3 2011-1.4%
Q2 2011-2.1%
Q1 2012+4.5%
Q1 2011-0.6%
Q4 2010+0.6%
Q2 2010+1.8%
Q1 2010+27.5%
Q4 2009+2.5%

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