NASDAQ$CWST

Casella Waste Systems Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Casella's third quarter financial results were announced, demonstrating strong performance driven by the company's growth strategy and investments in Resource Solutions. The company raised its revenue, Adjusted EBITDA, and Adjusted Free Cash Flow guidance ranges and updated its net income guidance range for fiscal year 2023.

Casella Waste Systems reported a solid third quarter with revenues up 19.5% to $352.7 million. The company experienced growth through acquisitions, positive pricing, and higher commodity volumes, although solid waste volumes were down. Net income was $18.2 million, and Adjusted EBITDA reached $89.6 million, up 19.4%.

  • Revenues increased by 19.5% to $352.7 million, driven by acquisitions and positive pricing.
  • Overall solid waste pricing increased by 6.9%, with collection pricing up 7.6% and disposal pricing up 5.9%.
  • Net income was $18.2 million, a decrease of 19.8% compared to the same period in 2022.
  • Adjusted EBITDA increased by 19.4% to $89.6 million.

Headline financials

Total Revenue

$353M

Previous: $295M+19.5%
EPS (adj)

$0.35

Previous: $0.45-22.2%
Solid Waste Price Growth

6.9%

Previous: 6.6%+4.5%
Capital Expenditures

-$90.4M

Previous: -$87.7M-3.1%
Free Cash Flow

-$72.2M

Previous: -$65M-11.1%
Net Income

$18.2M

Previous: $22.7M-19.8%
Operating Income

$34.2M

Previous: $36.3M-5.8%
Gross Profit

$126M

Previous: $105M+20.4%
Cash & Equivalents

$219M

Previous: $47.9M+357.1%
Total Assets

$2.5B

Previous: $1.4B+78.5%
Stock-Based Comp

$2.36M

Previous: $2.41M-2.2%

Revenue & EPS history

Casella · Revenue · Quarterly

$353M

Q3 2023+19.5%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Casella · $275M total across 3 segments · Q3 2023

  • Collection
    $206M+43.0%
  • Disposal
    $66.3M+0.3%
  • Solid Waste Processing
    $3.02M-3.6%

Forward guidance

Casella updated its fiscal year 2023 guidance, expecting revenue between $1.255 billion and $1.280 billion, Adjusted EBITDA between $292 million and $298 million, and Adjusted Free Cash Flow between $125 million and $131 million. They reaffirmed net cash provided by operating activities between $231 million and $237 million and updated net income between $33 million and $39 million.

Tailwinds

  • Revenue between $1.255 billion and $1.280 billion
  • Adjusted EBITDA between $292 million and $298 million
  • Adjusted Free Cash Flow between $125 million and $131 million
  • Net cash provided by operating activities between $231 million and $237 million
  • Assumes stable economic activity levels for the remainder of the year

Headwinds

  • Net income between $33 million and $39 million
  • Reduction in net income primarily associated with recent acquisition activity.
  • Depreciation and amortization up $11.0 million.
  • Interest expense net up $2.0 million.
  • Expense from acquisition activities up $3.0 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 Q3 2023

Historical avgQ3 2023

+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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