FOR IMMEDIATE RELEASE
CASELLA WASTE SYSTEMS, INC. ANNOUNCES FIRST QUARTER 2019 RESULTS
RUTLAND, VERMONT (April 30, 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 month period ended March 31, 2019.
First Quarter Highlights:
Revenues were $163.7 million for the quarter, up $16.2 million, or up 11.0%, from the same period in 2018.
Overall solid waste pricing for the quarter was up 5.0%, driven by strong collection pricing up 6.0%, and robust landfill pricing up 4.2%, from the same period in 2018.
Net loss was $(1.7) million for the quarter, an improvement of $2.2 million, up 56.2%, from the same period in 2018.
Adjusted EBITDA* was $26.6 million for the quarter, up $2.0 million, or up 8.1%, from the same period in 2018.
The Company reaffirms its revenue, net income, Adjusted EBITDA and Normalized Free Cash Flow* guidance ranges for the fiscal year ending December 31, 2019 (“fiscal 2019”).
The Company completed the acquisition of a waste collection company with approximately $7.0 million of annual revenues earlier today and remains on track to exceed its acquisition target range for fiscal 2019.
“We are pleased with the strong start to the 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 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 prudently allocating capital for strategic growth.”
“Our solid waste pricing programs are running ahead of budget as we advanced 6.0% pricing in the collection line-of-business and 4.2% pricing at the landfills, for overall solid waste price of 5.0% during the first quarter,” Casella said. “Our disciplined pricing programs are aimed at balancing volume growth while covering inflation and expanding margins. We accomplished both goals in our collection operations, with margins and cash flows up as we shed unprofitable work, improved operating efficiencies, and offset historically high inflation.”
As expected, lower disposal volumes negatively impacted revenues by $3.4 million year-over-year due to a one-time $3.5 million soil remediation project in the first quarter last year that did not repeat this year,” Casella said. “Given the continued tightening of the northeast disposal market, we worked to drive strong pricing discipline, coupled with our goals to maintain sufficient landfill capacity through the higher priced summer months and to eliminate more challenging waste streams. We expect positive disposal volume growth through the remainder of the year.”
“Due to our efforts to restructure third-party recycling processing contracts and off-take commodity pricing risk, we improved operating income year-over-year in our recycling business despite commodity prices being down roughly 18% during the same period,” Casella said. “Our SRA fee, revenue share contracts and contamination fees combined with our efforts to produce higher quality materials and manage processing costs have allowed us to improve recycling financial performance in a challenging commodity pricing environment.”
“Earlier today we purchased substantially all of the assets of M.C. Disposal, Inc. (“MCD”), a waste collection company with roughly $7.0 million of annual revenues located in Maine,” Casella said. “MCD has built a solid business through excellent customer service, and we expect this acquisition will tuck-in well with our existing operations and allow us to build further route density and drive operational efficiencies. We are pleased to welcome the hardworking MCD employees and owners to our team.”
“While there is still work ahead of us, we have made great progress over the last several months successfully integrating and recognizing synergies from the ten acquisitions that we completed in 2018,” Casella said. “Our acquisition pipeline remains robust with over $40 million of annual revenues under letter of intent that we expect to close by the end of the third quarter. We believe that there is additional opportunity to drive cash flow growth across our footprint through strategic growth.”
The following information was filed by Casella Waste Systems Inc (CWST) on Tuesday, April 30, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.