NASDAQ$CWST

Casella Waste Systems Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong Q3 2022 results with revenue up 22.0% and net income up 42.9% year-over-year, driven by operating initiatives, pricing programs, and disciplined growth strategy.

Casella Waste Systems reported a strong third quarter with revenue increasing by 22.0% to $295.3 million and net income rising by 42.9% to $22.7 million compared to the same period in 2021. The company's performance was driven by effective operating and pricing initiatives that offset inflation, along with contributions from recent acquisitions. The company also updated its fiscal year 2022 guidance, raising expectations for revenue, net income, Adjusted EBITDA, and net cash provided by operating activities.

  • Revenues increased by 22.0% to $295.3 million compared to the same period in 2021.
  • Net income increased by 42.9% to $22.7 million compared to the same period in 2021.
  • Overall solid waste pricing increased by 6.6%, with collection pricing up 7.2% and disposal pricing up 6.0%.
  • The company acquired 13 businesses year-to-date with approximately $48 million of annualized revenues.

Headline financials

Total Revenue

$295M

Previous: $242M+22.0%
EPS (adj)

$0.45

Previous: $0.34+32.4%
Solid Waste Price Growth

6.6%

Previous: 4.1%+61.0%
Capital Expenditures

-$87.7M

Previous: -$81.6M-7.5%
Free Cash Flow

-$65M

Previous: -$65.7M+1.1%
Net Income

$22.7M

Previous: $15.9M+42.9%
Operating Income

$36.3M

Previous: $27.4M+32.5%
Gross Profit

$105M

Previous: $88.1M+19.2%
Cash & Equivalents

$47.9M

Previous: $46.5M+3.1%
Total Assets

$1.4B

Previous: $1.28B+9.3%
Stock-Based Comp

$2.41M

Previous: $2.66M-9.2%

Revenue & EPS history

Casella · Revenue · Quarterly

$295M

Q3 2022+22%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Casella · $213M total across 3 segments · Q3 2022

  • Collection
    $144M+21.2%
  • Disposal
    $66.1M+19.0%
  • Solid Waste Processing
    $3.13M+5.9%

Forward guidance

Casella Waste Systems updated its fiscal year 2022 guidance, raising expectations for revenue, net income, Adjusted EBITDA, and net cash provided by operating activities while reaffirming guidance for Adjusted Free Cash Flow.

Tailwinds

  • Revenues between $1.065 billion and $1.080 billion
  • Net income between $53 million and $56 million
  • Adjusted EBITDA between $245 million and $248 million
  • Net cash provided by operating activities between $210 million and $214 million
  • Adjusted Free Cash Flow between $106 million and $110 million

Headwinds

  • Guidance assumes the economy does not significantly change through the remainder of the year
  • Inflation remains at current historically high levels
  • Recycling commodity prices decline another 20% sequentially
  • Unanticipated or non-recurring impacts are not contemplated in the estimates
  • These forward-looking estimates for fiscal year 2022 do not contemplate any unanticipated or non-recurring impacts.

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 Q3 2022

Historical avgQ3 2022

+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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