RUTLAND, Vt., April 25, 2024 (GLOBE NEWSWIRE) -- 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, 2024. Highlights for the Three Months Ended March 31, 2024: Revenues were $341.0 million for the quarter, up $78.4 million, or up 29.9%, from the same period in 2023. Overall solid waste pricing was up 5.5% from the same period in 2023, driven by 6.2% collection price growth and 4.0% disposal price growth. Net loss was $(4.1) million for the quarter, as compared to net income of $3.5 million for the same period in 2023. Adjusted EBITDA, a non-GAAP measure, was $71.0 million for the quarter, up $20.4 million, or up 40.2%, from the same period in 2023. "We had a strong start to the year, driven by the continued execution of our core operating strategies and pricing programs and the successful integration of the acquisitions we completed in 2023," said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. "Our first quarter results demonstrated the dedication of our team and success of our growth strategy and set us up well for the rest of the year." "Our business is performing at a high level and delivered meaningful year-over-year Adjusted EBITDA margin improvement of 150 basis points," Casella said. "From a core operations standpoint, our investments in fleet automation, route optimization, and onboard computers have allowed us to be more efficient, productive, and safer in our collection line of business while maintaining our high customer service standards. Our customer focus also extends into recycling where we have made meaningful investments in our processing facilities to meet customer demand for diversion and sustainability services. Our upgraded Boston recycling facility continues to perform very well, and we are excited to begin the upgrade of our Willimantic recycling facility later this year." "We remain focused on pricing our services appropriately and strengthening the quality of our revenue, with overall solid waste pricing up 5.5%, collection pricing up 6.2% and the average price per ton at our landfills up 13.3% in the quarter. Solid waste volumes were down year-over-year, as expected; however, this net trade-off improved margins," Casella said. "The integration of our 2023 acquisitions is advancing well and we are realizing planned synergies," Casella said. "While our recent focus has been on ensuring a smooth transition for our new employees and customers, looking forward our acquisition pipeline remains robust with a number of quality companies across our footprint." For the quarter, revenues were $341.0 million, up $78.4 million, or up 29.9%, from the same period in 2023, with revenue growth mainly driven by: the rollover contribution from acquisitions closed in 2023; strong collection and disposal pricing; and higher recycling commodity prices. Operating income was $6.8 million for the quarter, down $(3.4) million from the same period in 2023, mainly due to higher depreciation and amortization expense related to acquisition growth and higher expenses from acquisition activities. Net loss was $(4.1) million for the quarter, or $(0.07) per diluted common share, as compared to net income of $3.5 million, or $0.07 per diluted common share, for the same period in 2023 driven by the factors impacting operating income as well as higher interest expense. Adjusted Net Loss, a non-GAAP measure, was $(0.8) million for the quarter, or $(0.01) Adjusted Diluted Loss Per Common Share, a non-GAAP measure, as compared to Adjusted Net Income of $5.3 million, or $0.10 Adjusted Diluted Earnings Per Common Share, for the same period in 2023. Adjusted EBITDA was $71.0 million for the quarter, up $20.4 million, or up 40.2%, from the same period in 2023, driven by acquisition rollover and 8.8% organic growth. Please refer to "Non-GAAP Performance Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliations of Adjusted Net (Loss) Income, Adjusted Diluted (Loss) Earnings Per Common Share, Adjusted EBITDA and other non-GAAP performance measures to their most directly comparable GAAP measures. Net cash provided by operating activities was $7.7 million for the quarter, as compared to $16.1 million for the same period in 2023, driven by higher cash interest payments and changes in working capital, and Adjusted Free Cash Flow was $(2.4) million for the quarter, as compared to $2.2 million for the same period in 2023, with the year-over-year variance further driven by higher capital expenditures. Please refer to "Non-GAAP Liquidity Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliation of Adjusted Free Cash Flow to its most directly comparable GAAP measure. Fiscal Year 2024 Outlook "Given the continued strength of our solid waste and Resource Solutions operations, together with the rollover contribution from closed acquisitions, we are reaffirming our revenue, net income, Adjusted EBITDA, net cash provided by operating activities, and Adjusted Free Cash Flow ranges for fiscal year 2024," Casella said. "The business is operating in line with plan, and our outlook for our markets and the economy has not materially changed." The Company reaffirmed guidance for the fiscal year ending December 31, 2024 ("fiscal year 2024") by estimating results in the following ranges: Revenues between $1.480 billion and $1.510 billion. Net income between $35 million and $45 million. Adjusted EBITDA between $350 million and $360 million. Net cash provided by operating activities between $260 million and $270 million. Adjusted Free Cash Flow between $140 million and $150 million. The guidance ranges do not include the impact of any acquisitions that have not been completed. Adjusted EBITDA and Adjusted Free Cash Flow related to fiscal year 2024 are described in the Unaudited Reconciliation of Fiscal Year 2024 Outlook Non-GAAP Measures section of this press release. Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2024 do not contemplate any unanticipated impacts. Conference Call to Discuss Quarter The Company will host a conference call to discuss these results on Friday, April 26, 2024, at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should register for the call by clicking here to obtain a dial in number and unique passcode. Alternatively, upon registration, the website linked above provides an option for the conference provider to call the registrant's phone line, enabling participation on the call. The call will also be webcast; to listen, participants should visit the company's website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the Company's website and accessible using the same link. About Casella Waste Systems, Inc. Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal, institutional and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the eastern United States. For further information, investors may contact Charlie Wohlhuter, Director of Investor Relations at (802) 772-2230; media may contact Jeff Weld, Director of Communications at (802) 772-2234; or visit the Company's website at http://www.casella.com. Safe Harbor Statement Certain matters discussed in this press release, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance; financial condition; operations and services; prospects; growth; strategies; anticipated impacts from future or completed acquisitions; and guidance for fiscal year 2024, are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as "believe," "expect," "anticipate," "plan," "may," "would," "intend," "estimate," "will," "guidance" and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management's beliefs and assumptions. The Company cannot guarantee that it actually will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company's operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements. Such risks and uncertainties include or relate to, among other things, the following: the Company may be unable to adequately increase prices or drive operating efficiencies to adequately offset increased costs and inflationary pressures, including increased fuel prices and wages; it is difficult to determine the timing or future impact of a sustained economic slowdown that could negatively affect our operations and financial results; the closure of the Subtitle D landfill located in Southbridge, Massachusetts ("Southbridge Landfill") could result in material unexpected costs; the increasing focus on PFAS and other emerging contaminants, including the recent designation by the EPA of two PFAS chemicals as hazardous substances under CERCLA, will likely lead to increased compliance and remediation costs and litigation risks; adverse weather conditions may negatively impact the Company's revenues and its operating margin; the Company may be unable to increase volumes at its landfills or improve its route profitability; the Company may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside the Company's control; the Company may be required to incur capital expenditures in excess of its estimates; the Company's insurance coverage and self-insurance reserves may be inadequate to cover all of its risk exposures; fluctuations in energy pricing or the commodity pricing of its recyclables may make it more difficult for the Company to predict its results of operations or meet its estimates; the Company may be unable to achieve its acquisition or development targets on favorable pricing or at all, including due to the failure to satisfy all closing conditions and to receive required regulatory approvals that may prevent closing of any announced transaction; the Company may not be able to successfully integrate and recognize the expected financial benefits from acquired businesses; and the Company may incur environmental charges or asset impairments in the future. There are a number of other important risks and uncertainties that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A. "Risk Factors" in the Company's most recently filed Form 10-K and in other filings that the Company may make with the Securities and Exchange Commission in the future. The Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. Investors: Charlie WohlhuterDirector of Investor Relations(802) 772-2230 Media: Jeff WeldDirector of Communications(802) 772-2234http://www.casella.com   CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data)     Three Months EndedMarch 31,   Unaudited     2024       2023   Revenues $ 341,008     $ 262,595   Operating expenses:       Cost of operations   230,792       180,243   General and administration   44,334       35,679   Depreciation and amortization   54,037       33,435   Expense from acquisition activities   5,010       2,863   Southbridge Landfill closure charge   —       110       334,173       252,330   Operating income   6,835       10,265   Other expense (income):       Interest expense, net   13,070       6,275   Other income   (352 )     (349 ) Other expense, net   12,718       5,926   (Loss) income before income taxes   (5,883 )     4,339   (Benefit) provision for income taxes   (1,766 )     791   Net (loss) income $ (4,117 )   $ 3,548   Basic weighted average common shares outstanding   58,030       51,770   Basic (loss) earnings per common share $ (0.07 )   $ 0.07   Diluted weighted average common shares outstanding   58,030       51,869   Diluted (loss) earnings per common share $ (0.07 )   $ 0.07     CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)     March 31,2024   December 31,2023   (Unaudited)     ASSETS       CURRENT ASSETS:       Cash and cash equivalents $ 189,457     $ 220,912   Accounts receivable, net of allowance for credit losses   146,795       157,324   Other current assets   49,150       48,089   Total current assets   385,402       426,325   Property and equipment, net of accumulated depreciation and amortization   978,622       980,553   Operating lease right-of-use assets   99,679       100,844   Goodwill   736,513       735,670   Intangible assets, net of accumulated amortization   228,865       241,429   Other non-current assets   48,173       50,649   Total assets $ 2,477,254     $ 2,535,470   LIABILITIES AND STOCKHOLDERS' EQUITY       CURRENT LIABILITIES:       Current maturities of debt $ 63,368     $ 35,781   Current operating lease liabilities   8,825       9,039   Accounts payable   79,989       116,794   Current accrued final capping, closure and post-closure costs   10,140       10,773   Other accrued liabilities   81,799       106,471   Total current liabilities   244,121       278,858   Debt, less current portion   980,878       1,007,662   Operating lease liabilities, less current portion   66,630       66,074   Accrued final capping, closure and post-closure costs, less current portion   127,184       123,131   Other long-term liabilities   32,517       37,954   Total stockholders' equity   1,025,924       1,021,791   Total liabilities and stockholders' equity $ 2,477,254     $ 2,535,470