NASDAQ$CWST

Casella Waste Systems Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Casella's Q4 2021 financial results exceeded expectations due to solid pricing, operating execution, cost efficiencies, and strong cash flow growth.

Casella Waste Systems reported strong Q4 2021 results with a 20.8% increase in revenues, driven by acquisitions, positive pricing, and higher volumes. Adjusted EBITDA increased by 20.6%, and the company provided fiscal year 2022 guidance.

  • Revenues increased by 20.8% compared to the same period in 2020, reaching $241.8 million.
  • Overall solid waste pricing increased by 4.3%, driven by collection and landfill pricing.
  • Adjusted Net Income rose by 25.6% to $11.0 million.
  • Operating income increased by 14.8% to $16.3 million.

Headline financials

Total Revenue

$242M

Previous: $200M+20.8%
EPS (adj)

$0.21

Previous: $0.17+23.5%
Solid Waste Price Growth

4.3%

Previous: 3.9%+10.3%
Capital Expenditures

$41.7M

Previous: $30.8M+35.3%
Free Cash Flow

$6.93M

Previous: -$2.83M+344.9%
Net Income

$9.1M

Previous: $62.9M-85.5%
Operating Income

$16.3M

Previous: $14.2M+14.8%
Gross Profit

$79M

Previous: $67M+18.0%
Cash & Equivalents

$33.8M

Previous: $154M-78.1%
Total Assets

$1.28B

Previous: $1.19B+7.5%
Stock-Based Comp

$2.84M

Previous: $2.87M-1.2%

Revenue & EPS history

Casella · Revenue · Quarterly

$242M

Q4 2021+20.8%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Casella · $176M total across 3 segments · Q4 2021

  • Collection
    $119M+18.3%
  • Disposal
    $54.4M+19.3%
  • Solid Waste Processing
    $2.53M

Forward guidance

The Company provided guidance for fiscal year 2022 by estimating revenues between $980 million and $995 million, net income between $48 million and $52 million, Adjusted EBITDA between $228 million and $232 million, net cash provided by operating activities between $202 million and $206 million, and Adjusted Free Cash Flow between $104 million and $108 million.

Tailwinds

  • Overall revenue growth of between 10.2% and 11.9% in fiscal year 2022.
  • Approximately 6.2% revenue growth from the roll-over impact of acquisitions.
  • Solid Waste business revenue growth of between 13.3% and 14.3%.
  • Price growth from 4.5% to 5.0% in the Solid Waste business.
  • Volume growth from 1.5% to 2.0% in the Solid Waste business.

Headwinds

  • Does not include the impact of any acquisitions that have not yet been completed.
  • Lower recycling commodity prices may partially offset growth in the resource solutions business.
  • Capital expenditures of approximately $120 million, including $15 million of non-recurring capital associated with acquisition integration.
  • Net cash provided by operating activities will be negatively impacted by $6.5 million on landfill closure expenditures.
  • Guidance ranges assume a stable economic environment continuing from the fourth quarter 2021 through the remainder of 2022

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 2021

Historical avgQ4 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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