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Casella Waste Systems, Inc. reported its second quarter financial results today which saw an increase in revenue from the same period in 2022 but net income was down due to some non-recurring items in the quarter.
July 28, 2023
Casella Waste Systems, Inc. (NASDAQ: CWST) reported its second quarter financial results today which saw an increase in revenue from the same period in 2022 but net income was down due to some non-recurring items in the quarter.
The second quarter was a solid one for Casella which was spearheaded by the company’s overall operating efficiency programs and execution against its growth strategy. With that, revenues for Casella were $289.6 million for Q2, up $6 million from Q2 2022. Adjusted EBITDA was also up for the quarter as it reached $72.2 million, up $3.7 million from 2022’s second quarter.
"We executed well in the second quarter against our operating initiatives and growth strategies, which helped to drive meaningful Adjusted EBITDA growth and margin expansion, despite significant recycling headwinds with commodity prices down 53% year-over-year,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. “This is an exciting period of growth for our organization.”
Roughly a month ago now, Casella closed on its acquisition of select operations from GFL. This acquisition creates a meaningful opportunity to expand Casella’s reach into the Mid-Atlantic and promotes long-term growth in a new geographical platform.
“We are off to a great start servicing our new customers in Pennsylvania, Delaware, and Maryland and would like to once again welcome our new Casella team members onboard. We also look forward to additional growth opportunities, including the previously announced pending acquisition of Twin Bridges,” said Casella on the acquisition.
Casella adds that the company will continue to focus on core operating strategies as business is performing well this year. The company has made investments through adding automated trucks to its fleet and implanting route optimization software and onboard computers which is helping with safety and operating efficiency.
While revenue for the quarter was up, net income was down throughout this window, but not without cause. Casella notes that several non-recurring items played a role in net income being down $12.3 million, including $6.2 million for a legal settlement and an $8.2 million loss from termination of bridge financing.
Even with net income being down, year-to-date revenues for Casella remain healthy as revenues are up $34.5 million six months into the year, which is up 6.7% from last year in the same time frame.
"Given the expected contribution from acquisitions closed through the first half of this year and the expectation that our solid waste operations continue to perform at budget during the remainder of the year, we are updating our fiscal year 2023 guidance ranges that were first announced in mid-February and reaffirmed in April," Casella said. "These updated guidance ranges now include the contribution from the acquisition of select operations from GFL, which closed on June 30, 2023, and assume a stable economic environment through the remainder of the year. These guidance ranges do not include the potential impact from the pending acquisition of Twin Bridges."
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