NASDAQ$CWST

Casella Waste Systems Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Casella's Q4 2023 earnings were announced, showcasing significant revenue growth and strategic acquisitions.

Casella Waste Systems reported a strong Q4 2023, marked by a 32.1% increase in revenues to $359.6 million. The company's performance was driven by strategic acquisitions, positive pricing in collection and disposal, and higher commodity prices. While the company reported a net loss of $(1.8) million for the quarter, adjusted EBITDA rose by 46.1% to $82.2 million, reflecting organic growth and successful operating initiatives.

  • Revenues increased by 32.1% to $359.6 million, driven by acquisitions and positive pricing.
  • Net loss was $(1.8) million, compared to net income of $8.4 million in the same period last year.
  • Adjusted EBITDA increased by 46.1% to $82.2 million, with organic growth of 17.1%.
  • Acquired seven businesses in fiscal year 2023 with approximately $315 million of annualized revenues.

Headline financials

Total Revenue

$360M

Previous: $272M+32.1%
EPS (adj)

$0.13

Previous: $0.18-27.8%
Solid Waste Price Growth

6.7%

Previous: 6.2%+8.1%
Capital Expenditures

-$64.5M

Previous: $43.3M-249.1%
Net Income

-$1.8M

Previous: $8.4M-121.4%
Operating Income

$13.4M

Previous: $17.2M-22.1%
Gross Profit

$65.8M

Previous: $87.8M-25.1%
Stock-Based Comp

$2.39M

Previous: $2.57M-7.1%

Revenue & EPS history

Casella · Revenue · Quarterly

$360M

Q4 2023+32.1%vs Q4 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 provided fiscal year 2024 guidance, estimating revenues between $1.480 billion and $1.510 billion, net income between $35 million and $45 million, and Adjusted EBITDA between $350 million and $360 million.

Tailwinds

  • Expect approximately $175 million of revenue growth related to the roll over contribution of acquisitions closed in 2023.
  • Expect to drive further margin expansion in 2024 through continued execution of operating and pricing programs.
  • Plan to continue upfront capital investment in recently acquired businesses to achieve targeted synergies.
  • Plan to bring the assets up to the Company's standards while making further investments in our portfolio of development projects.
  • Expect revenue growth of between approximately 17% and 19% in fiscal year 2024.

Headwinds

  • Guidance ranges assume a stable economic environment through 2024 but reflect a cautious outlook for construction and demolition volumes.
  • Does not include the impact of any acquisitions that have not yet been completed.
  • In the Solid Waste business, expect volume growth of 0.0% to down (1.0)%.
  • Capital expenditures of approximately $180 million, which includes approximately $40 million of non-recurring capital associated with acquisitions and approximately $5 million of capital associated with the McKean Landfill rail project.
  • Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2024 do not contemplate any unanticipated 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 Q4 2023

Historical avgQ4 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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