NASDAQ$CWST

Casella Waste Systems Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Casella reported Q4 2019 financial results, showing revenue increase and improved profitability.

Casella Waste Systems reported a strong fourth quarter with revenues up 10.8% to $193.6 million and net income of $9.1 million. The company's solid waste pricing programs were ahead of budget, and they continued to execute against their key strategies.

  • Revenues increased by 10.8% compared to the same period in 2018, reaching $193.6 million.
  • Net income rose to $9.1 million, a $22.7 million increase from the same period in 2018.
  • Overall solid waste pricing increased by 5.0%, driven by collection and landfill pricing increases.
  • The company acquired nine businesses with approximately $53 million of annualized revenues during 2019.

Headline financials

Total Revenue

$194M

Previous: $175M+10.8%
EPS (adj)

$0.21

Previous: $0.09+133.3%
Solid Waste Price Growth

5.0%

No prior period
Capital Expenditures

$27.2M

Previous: $21.4M+27.0%
Free Cash Flow

$18.2M

Previous: $9.53M+90.7%
Net Income

$9.1M

Previous: -$13.7M+166.5%
Operating Income

$14.6M

Previous: -$5.14M+384.2%
Gross Profit

$62.7M

Previous: $53M+18.3%
Cash & Equivalents

$3.47M

Previous: $4.01M-13.4%
Total Assets

$932M

Previous: $732M+27.3%
Stock-Based Comp

$2.01M

Previous: $2.08M-3.6%

Revenue & EPS history

Casella · Revenue · Quarterly

$194M

Q4 2019+10.8%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Casella · $147M total across 3 segments · Q4 2019

  • Collection
    $97.9M+18.3%
  • Disposal
    $47.1M+5.0%
  • Solid Waste Processing
    $1.75M+31.9%

Forward guidance

The Company provided guidance for the fiscal year ending December 31, 2020, expecting revenue between $800 million and $815 million, net income between $35 million and $39 million, and Adjusted EBITDA between $170 million and $174 million.

Tailwinds

  • Revenue growth of between 7.6% and 9.6% is expected in fiscal year 2020.
  • 4.7% revenue growth from the roll-over impact of acquisitions completed during fiscal year 2019 and those already completed in early 2020.
  • Solid Waste business revenue growth of between 9.0% and 11.0%.
  • Price growth from 3.5% to 4.5% in the Solid Waste business.
  • Net cash provided by operating activities between $131 million and $135 million

Headwinds

  • Volume growth from (0.5)% to 0.5% in the Solid Waste business, including a headwind from the reduction of volumes at the North Country landfill.
  • The planned reduction of volumes at the North Country landfill is expected to negatively impact revenues by $(5.0) million and operating income by $(4.5) million from fiscal year 2019.
  • Capital expenditures of approximately $113 million, which includes approximately $16 million of non-recurring capital associated with acquisition integration, and $12 million of Waste USA landfill phase VI construction capital expenditures.
  • Net cash provided by operating activities will be negatively impacted in 2020 as we plan to spend $14 million on landfill closure, site improvement and remediation expenditures associated with the Southbridge landfill closure.
  • Does not include the impact of any acquisitions that have not yet been completed.

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 Q4 2019

Historical avgQ4 2019

+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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