Rutland, Vermont-based Casella Waste Systems Inc. has reported a first quarter 2017 revenue figure that is up by 6.7 percent compared with the first quarter of 2016. The regional waste and recycling firm also says it lost $200,000 for the quarter compared with $7.6 million in losses in the first quarter of 2016.
The company’s revenue figure of $133.8 million in the quarter was up by $8.4 million, or 6.7 percent, from the same period in 2016. Casella reports that it operating income was $6.6 million for the quarter, up $4.6 million, or 232.5 percent, from the same period in 2016.
“We had another strong quarter as we continued to execute well against our key management strategies and benefited from stronger recycled commodity pricing for fibers,” says John W. Casella, chairman and CEO of Casella Waste Systems Inc. “The progress we have made on our strategies clearly drove positive financial results in the first quarter, with operating income up $4.6 million, operating income margins up 330 basis points, and consolidated net leverage down year over year.”
He continues, “From an operating standpoint, our disciplined solid waste pricing programs continued to outpace internal inflation with overall solid waste pricing up 2.4 percent in the quarter, driven by strong landfill pricing which was up 3.4 percent, and robust residential and commercial pricing which was up 3.1 percent.
“Our solid waste volumes were down 1.5 percent in the first quarter, mainly due to a 6.4 percent decline in disposal volumes,” adds Casella. “Disposal volumes were down as we continued to ramp down volumes at our Southbridge [Massachusetts] landfill, and we purposely shed lower-priced volumes as we worked to improve price and mix at our landfills.”
Regarding its recycling operations, Casella remarks, “Commodity prices were up 22.6 percent sequentially from the fourth quarter of 2016 to the first quarter, mainly driven by higher paper and cardboard pricing. Higher commodity prices, coupled with the changes that we made over the last two years to reshape our recycling business model, helped to drive strong recycling performance in the quarter.”
The company also has earlier guidance for all of 2017, estimating revenue between $577 million and $587 million for the year compared with $565 million in 2016. It also is estimating adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of between $124 million and $128 million compared with $120.6 million in 2016.
Casella Waste Systems provides solid waste management services consisting of collection, transfer, disposal and recycling services in the northeastern United States.