FOR IMMEDIATE RELEASE
CASELLA WASTE SYSTEMS, INC. ANNOUNCES FIRST QUARTER RESULTS; AND WITHDRAWS FISCAL YEAR 2020 GUIDANCE GIVEN UNCERTAINTIES OF COVID-19
RUTLAND, VERMONT (May 7, 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 month period ended March 31, 2020. The Company also withdraws guidance for the fiscal year ending December 31, 2020.
Highlights for the Three Months Ended March 31, 2020:
•Revenues were $182.9 million for the quarter, up $19.2 million, or up 11.8%, from the same period in 2019.
•Overall solid waste pricing for the quarter was up 5.8%, driven by robust collection pricing, up 5.2%, and strong disposal pricing, up 7.7%, from the same period in 2019.
•Net income was $1.0 million for the quarter, up $2.7 million from the same period in 2019.
•Adjusted Net Income* was $2.5 million for the quarter, up $3.0 million from the same period in 2019.
•Adjusted EBITDA* was $33.5 million for the quarter, up $6.9 million, or up 25.9%, from the same period in 2019.
•Net cash provided by operating activities was $14.8 million for the quarter, up $10.0 million, or up 209.6% from the same period in 2019.
•Normalized Free Cash Flow* was $4.0 million for the quarter, up $12.5 million from the same period in 2019.
“During the first quarter, we continued to execute well against our key long-term strategies as part of our 2021 plan,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. “Our solid waste pricing programs were ahead of budget as we advanced 5.2% pricing in the collection line-of-business and 10.1% pricing at the landfills, with overall solid waste price increasing by 5.8%. Solid waste volumes were down (2.7)% in the quarter, as we continued to focus on shedding unprofitable work, advancing pricing in excess of inflation, and we began to experience early negative volume impacts from COVID-19 as the shelter-in-place orders forced businesses to close and construction to come to a halt.”
“We continue to make substantial progress executing against our strategic growth initiative, as we acquired four businesses with approximately $13 million of annualized revenues in 2020,” Casella said. “Our acquisition pipeline remains robust, and while we believe that there is substantial opportunity to drive additional cash flow growth across our footprint, we do expect acquisition activity to slow in the near term as we focus on managing our business through the COVID-19 pandemic.”
“During the first quarter we completed the realignment of our recycling, organics and customer solutions groups into the newly formed Resource Solutions segment,” Casella said. “This is an important long-term strategic move to ensure that our resource-oriented teams are well aligned as they help customers achieve their sustainability goals, while effectively leveraging synergies across operations, sales and the back-office. You will see this change presented in our segment reporting for the quarter.”
“Our first quarter results did not have significant negative impacts from the COVID-19 pandemic as the stay-at-home orders and widespread business shutdowns did not occur until roughly mid-March across our operating footprint,” Casella said.
For the quarter, revenues were $182.9 million, up $19.2 million, or 11.8%, from the same period in 2019, with revenue growth mainly driven by: robust collection and strong disposal pricing; the roll-over impact from acquisitions; higher resource solutions volumes; higher recycling processing price; and higher fees; partially offset by lower solid waste volumes and lower recycling commodity prices.
Net income was $1.0 million for the quarter, or $0.02 per diluted common share for the quarter, as compared to net loss of $(1.7) million, or $(0.04) per diluted common share, for the same period in 2019. The first quarter included $1.0 million of expense from acquisition activities and other items and $0.6 million of legal and other expenses associated with the Southbridge Landfill closure. The same quarter last year included $0.7 million of expense from acquisition activities and other items and $0.6 million of legal and other costs associated with the Southbridge Landfill closure.
Adjusted Net Income was $2.5 million for the quarter, or Adjusted Diluted Earnings Per Common Share* of $0.05 for the quarter, as compared to Adjusted Net Loss of $(0.5) million, or Adjusted Diluted Earnings Per Common Share of $(0.01), for the same period in 2019.
The following information was filed by Casella Waste Systems Inc (CWST) on Thursday, May 7, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.