FOR IMMEDIATE RELEASE
CASELLA WASTE SYSTEMS, INC. ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2019 RESULTS; AND PROVIDES FISCAL YEAR 2020 GUIDANCE
RUTLAND, VERMONT (February 20, 2020) — Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three and twelve month periods ended December 31, 2019. The Company also provided guidance for the fiscal year ending December 31, 2020.
Highlights for the Three and Twelve Months Ended December 31, 2019:
•Revenues were $193.6 million for the quarter, up $18.9 million, or up 10.8%, from the same period in 2018. Revenues were $743.3 million for the fiscal year, up $82.6 million, or 12.5%, from fiscal year 2018.
•Overall solid waste pricing for the quarter was up 5.0%, driven by robust collection pricing, up 4.8%, and strong landfill pricing, up 7.6%, from the same period in 2018.
•Net income was $9.1 million for the quarter, up $22.7 million from the same period in 2018. Net income was $31.7 million for the fiscal year, up $25.2 million from fiscal year 2018.
•Adjusted Net Income* was $10.2 million for the quarter, up $6.1 million, or up 146.2%, from the same period in 2018. Adjusted Net Income was $40.6 million for the fiscal year, up $13.5 million, or up 49.6%, from fiscal year 2018.
•Adjusted EBITDA* was $41.1 million for the quarter, up $7.3 million, or up 21.5%, from the same period in 2018. Adjusted EBITDA was $156.5 million for the fiscal year, up $18.5 million, or 13.4%, from fiscal year 2018.
•Net cash provided by operating activities was $116.8 million for the fiscal year, down $(4.0) million, or (3.3)%, from fiscal year 2018.
•Normalized Free Cash Flow* was $55.5 million for the fiscal year, up $8.4 million, or 17.9%, from fiscal year 2018.
“We had another great quarter and year, as we continued to execute well against our key strategies as part of our 2021 plan,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. “We remain focused on driving cash flow growth by increasing landfill returns, improving collection profitability, creating incremental value through resource solutions, using technology to drive profitable growth and efficiencies, and prudently allocating capital for strategic growth.”
“During 2019 we continued to make substantial progress executing against our strategic growth initiative, as we acquired nine businesses with approximately $53 million of annualized revenues,” Casella said. “And, in early 2020 we have started the year well, completing another two acquisitions with approximately $6 million of annualized revenues. We expect revenue growth of roughly 4.7% (or $35 million) in 2020 from the roll-over impact of acquisitions completed in 2019 and those already completed in early 2020. Our acquisition pipeline remains robust, and we believe that there is continued opportunity to drive additional cash flow growth across our footprint through the sustained execution against our disciplined acquisition strategy.”
“Our solid waste pricing programs were ahead of budget again in the fourth quarter as we advanced 4.8% pricing in the collection line-of-business and 7.6% pricing at the landfills, with overall solid waste price increasing by 5.0%,” Casella said. “Solid waste volumes were down (0.9)% in the quarter, with collection volumes down as we continued to focus on shedding unprofitable work and advancing pricing in excess of heightened inflation. Disposal volumes were down slightly on lower transportation and disposal work, however landfill volumes were up 1.1% as we continued to ramp tons into our sites."
“As a company, we have spent the last 45 years working to develop an integrated resource management strategy that balances our customers' current solid waste collection, recycling, organics, and disposal needs with a vision for the future through increased sustainability and resource management,” Casella said. “We have worked extremely hard to develop and successfully implement leading resource initiatives, long before sustainability was in vogue. One such success is our innovative recycling business model. Our revenue share model and other risk management programs coupled with our investments in new processing technologies and our efforts to produce higher quality materials and manage processing costs with increased automation have allowed us to improve our recycling business's financial performance, mitigate commodity risk and maintain viable end-markets in a challenging pricing environment. These efforts have allowed our recycling program to remain both environmentally and economically sustainable through this historically low commodity pricing cycle.”
The following information was filed by Casella Waste Systems Inc (CWST) on Thursday, February 20, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.