FOR IMMEDIATE RELEASE
CASELLA WASTE SYSTEMS, INC. ANNOUNCES THIRD QUARTER 2018 RESULTS AND RAISES 2018 GUIDANCE
The Company raises its revenue, Adjusted EBITDA* and Normalized Free Cash Flow* guidance ranges for the fiscal year ending December 31, 2018.
RUTLAND, VERMONT (November 1, 2018) — Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three month period ended September 30, 2018.
Third Quarter and Year-To-Date Highlights:
Revenues were $172.8 million for the quarter, up $12.6 million, or 7.8%, from the same period in 2017.
Overall solid waste pricing for the quarter was up 4.8%, driven by strong collection pricing, up 5.7%, and robust landfill pricing, up 4.1%, from the same period in 2017.
Net income was $22.3 million for the quarter, an increase of $10.2 million, or 84.6%, from the same period in 2017.
Adjusted Net Income* was $13.4 million for the quarter, up $0.3 million from the same period in 2017.
Adjusted EBITDA was $42.4 million for the quarter, up $2.9 million, or 7.3%, from the same period in 2017.
Net cash provided by operating activities was $89.9 million year-to-date, up $10.8 million, or 13.7%, from the same period in 2017.
Normalized Free Cash Flow was $37.3 million year-to-date, up $2.9 million, or 8.5%, from the same period in 2017.
With the two acquisitions completed earlier today, the Company has acquired approximately $70 million of annualized revenues year-to-date, exceeding its $20 million to $40 million target range for 2018.
“We had another strong operational quarter, 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 Normalized Free 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 efficiently allocating capital for strategic growth.”
“We continue to make substantial progress ramping up our strategic growth initiative, as we have acquired roughly $70 million of annualized revenues year-to-date, including the two acquisitions that we closed on earlier today," Casella said. "We are focused on acquiring well run businesses in strategic markets that will drive additional internalization to our landfills and operating synergies. We are also focused on more effectively optimizing waste placement around the northeast as the ever-tightening disposal market is creating additional opportunity to source new volumes at higher prices. We expect revenue growth of over 5.5% in 2019 including the roll-over impact of acquisitions already completed in 2018. Further, our acquisition pipeline remains robust, and we believe that there is additional opportunity to drive cash flow growth across our footprint through strategic growth.”
“On the operating side, outperformance in our solid waste, customer solutions and organics operations more than offset the significant commodity pricing headwinds in our recycling business,” Casella said. “Our disciplined solid waste pricing programs continue to drive significant value, with collection pricing up 5.7% and landfill pricing up 4.1% year-over-year in the third quarter. Solid waste volumes were down (1.0)% year-over-year in the third quarter, with (0.7)% of the decline resulting from a fire related business interruption at a transfer station, and the remainder associated with our disciplined pricing strategy that is focused on balancing volume growth with higher pricing.”
“Our team has done a great job over the last several years working to off-take risk across our business, including recycling commodity pricing risk,” Casella said. “As commodity prices stabilized in the third quarter, our trailing SRA fee and revenue share contracts, where applied, are now fully recovering lower commodity prices, albeit these programs are designed to recover costs and as a result have pressured margins. Despite this progress, operating income in the recycling line-of-business was down year-over-year, as we are still absorbing all of the commodity pricing risk on several legacy third-party
The following information was filed by Casella Waste Systems Inc (CWST) on Thursday, November 1, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.