Casella Q3 revenue up but earnings down

Casella Waste Systems Inc., Rutland, Vermont, reports third quarter 2023 revenue that increased by 19.5 percent compared with the third quarter of last year, citing higher collection pricing as a contributor.

However, the company's net income for the quarter was down by 19.8 percent compared with last year, with Casella stating its third quarter 2023 net income was negatively impacted by several items in the quarter, including a $2.4 million increase in expense from acquisition activities from the same period in 2022.

Casella's most recently quarterly revenue figure of $352.7 million was up by $57.5 million compared with one year ago. “Overall solid waste pricing for the quarter was up 6.9 percent from the same period in 2022, primarily a result of 7.6 percent higher collection pricing and 5.9 percent higher disposal pricing,” the company says.

Regarding the income drop, its third quarter operating income of $34.2 million was down $2.1 million, or 5.8 percent, from the same period in 2022, which includes higher depreciation and amortization expense related to the acquisitions of Twin Bridges, select operations from GFL Environmental Inc. (GFL) and other recent acquisitions.

“We posted another solid quarter and executed well against our growth strategies [across] our newly expanded footprint," CEO John W. Casella says in comments accompanying the report.

“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. We are poised to carry this momentum forward over the remainder of the year and into 2024.

“Our Boston material recovery facility (MRF) came back online in late June following the state-of-the-art processing equipment upgrades during the first half of this year. We are seeing increased productivity, throughput and safety levels while increasing material recovery and quality on the back end. These early results are exciting, and we look forward to this positive contribution over the remainder of the year.”

Regarding the company’s hauling and landfill sector, John Casella says, “Solid waste volumes were down year-over-year on lower project-based special waste volumes at our landfills, and our efforts to improve margins and performance in the residential line of business.

“Special waste streams were choppy in the third quarter, with particular weakness in September but strengthening 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. We expect execution of our plans will deliver margin expansion year-over year in the fourth quarter and for the full fiscal year.”

The company has raised its 2023 revenue expectations from a range of $1.24 billion to $1.265 billion to an expected figure of from $1.255 billion and $1.280 billion.

Regarding earnings before interest, taxes, depreciation and amortization, the company now forecasts a range between $292 million and $298 million, raised from an earlier forecasted range of between $289 million and $295 million.

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SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

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SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

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SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

“These updated guidance ranges assume stable economic activity levels for the remainder of the year,” John Casella says.