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Casella Waste Systems, Inc. reported a 19.5 percent increase in revenue for Q3, attributing this growth to the impact of recent acquisitions and improved pricing strategies, despite a decline in solid waste volumes and recycling commodity prices.
November 2, 2023
Casella Waste Systems, Inc. (NASDAQ: CWST) saw a 19.5 percent revenue boost for Q3, driven by roll-over impact from acquisitions, the company reported.
The Vermont-based company released its third-quarter earnings results, further citing positive collection and disposal pricing as well as higher commodity volumes, which were partially offset by lower revenues from solid waste volumes and recycling commodity prices.
Third quarter Q3 revenue reached $352.5 million, up $57.5 million year over year (YOY). Higher collection and disposal pricing during the quarter drove solid waste pricing up 6.9 percent from Q3 2022.
John W. Casella, chairman and CEO, stated that while solid waste volumes decreased year over year, the company’s workforce has been crucial to smooth operations with heightened acquisition activity.
"Our team is doing an excellent job balancing the on-boarding and integration of our recent acquisitions while keeping their focus on delivering excellent operating results in the core business through our key operating programs and organic growth initiatives,” he said.
The company finalized three acquisitions in Q3, including Consolidated Waste Services in September, strengthening its workforce by 1000 employees.
Casella noted that while special waste streams were “choppy” in Q3, activity rebounded in October.
“Importantly, our pricing programs are maintaining a positive spread to costs as we advanced solid waste pricing by 6.9 percent and furthered our operating productivity initiatives in the quarter,” he added. “We expect execution of our plans will deliver margin expansion year-over-year in the fourth quarter and for the full fiscal year."
In late June, the company’s Boston material recovery facility was back in operation following equipment updates, of which early results are now being realized.
"We are seeing increased productivity, throughput, and safety levels while increasing material recovery and quality on the back-end,” Casella said. These early results are exciting, and we look forward to this positive contribution over the remainder of the year."
Revenue: $352.5 million, up 19.5 percent
Net Income: $18.2 million, down 19.8 percent
Adjusted EBITDA: $89.6 million, up 19.4 percent
Adjusted Free Cash Flow: $96 million, up 17.5 percent
Net Cash Provided by Operating Activities: $15 million, up 3.5 percent
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