FOR IMMEDIATE RELEASE
CASELLA WASTE SYSTEMS, INC. ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2018 RESULTS; AND PROVIDES FISCAL YEAR 2019 GUIDANCE
RUTLAND, VERMONT (February 21, 2019) — 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, 2018. The Company also provided guidance for the fiscal year ending December 31, 2019.
Highlights for the Three and Twelve Months Ended December 31, 2018:
Revenues were $174.7 million for the quarter, up $23.5 million, or 15.5%, from the same period in 2017. Revenues were $660.7 million for the fiscal year, up $61.4 million, or 10.2%, from fiscal year 2017.
Overall solid waste pricing for the quarter was up 4.5%, driven by strong collection pricing, up 5.6%, and robust landfill pricing, up 3.7%, from the same period in 2017.
Net loss was $(13.7) million for the quarter, as compared to net income of $20.0 million for the same period in 2017. Net income was $6.4 million for the fiscal year, as compared to net loss of $(21.8) million in fiscal year 2017.
Adjusted Net Income Attributable to Common Stockholders* was $4.1 million for the quarter, as compared to $4.6 million for the same period in 2017. Adjusted Net Income Attributable to Common Stockholders was $27.2 million for the fiscal year, as compared to $28.7 million in fiscal year 2017.
Adjusted EBITDA* was $33.8 million for the quarter, up $3.6 million, or 12.0%, from the same period in 2017. Adjusted EBITDA was $138.0 million for the fiscal year, up $9.0 million, or 7.0%, from fiscal year 2017.
Net cash provided by operating activities was $120.8 million for the fiscal year, up $13.3 million, or 12.4%, from fiscal year 2017.
Normalized Free Cash Flow* was $47.1 million for the fiscal year, up $8.3 million, or 21.3%, from fiscal year 2017.
“We had a strong operational quarter and a great 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 efficiently allocating capital for strategic growth.”
“We continued to make substantial progress ramping up our strategic growth initiative in 2018, with the acquisition of 10 businesses with roughly $77 million of annualized revenues," Casella said. "We have built strong process and discipline in our acquisition approach, and we plan to remain focused on acquiring well run businesses in strategic markets that will drive additional internalization to our landfills and leverage operating synergies. We expect revenue growth of approximately 5.5% in 2019 from the roll-over impact of acquisitions completed in 2018. Further, our acquisition pipeline remains robust entering 2019, and we believe that we are well positioned to again surpass our target to acquire or develop $20 million to $40 million of annualized revenues in 2019.”
“Given the strength of our cash flow growth and our robust acquisition activity to date, we are on track to outpace our Normalized Free Cash Flow growth targets set as part of our 2021 plan,” Casella said. “We are increasing our Normalized Free Cash Flow target range for fiscal year 2021 to between $65 million and $70 million, or roughly 10% to 15% per year of growth.”
“During 2018, strong operating performance in our integrated 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 5.6% and landfill pricing up 3.7% year-over-year in the fourth quarter. Solid waste volumes were flat year-over-year in the fourth quarter, or up 0.5% excluding the negative volume headwind resulting from a fire related business interruption at a transfer station.”
“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 recycled paper and cardboard commodity prices stabilized over the last six months, our trailing SRA fee and revenue share contracts, where applied, are now fully recovering lower commodity prices. Despite our average commodity revenue per ton being down roughly 18% year-over-year in the fourth quarter, our efforts to improve our recycling business model, reset pricing on legacy contracts, and reduce contamination all contributed to increasing
The following information was filed by Casella Waste Systems Inc (CWST) on Thursday, February 21, 2019 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.