Casella reports revenue, income growth in Q2

Casella Waste Systems Inc. has reported a revenue increase of more than 30 percent in the second quarter of 2024 compared with one year ago, while its net income rose by more than 27 percent year on year.

The Rutland, Vermont-based regional waste, recycling and hauling services company also reports that year to date through Aug. 1, it has acquired five businesses it says combined can produce more than $100 million in aggregate annualized revenues. The acquired firms include LMR Disposal of Phillipsburg, New Jersey, and Perkiomenville, Pennsylvania-based Whitetail Disposal in the Mid-Atlantic region.

“We continued to execute on our core operating strategies in the second quarter and have driven solid year-to-date performance," Casella Waste Systems CEO John W. Casella says. "The growth in our business, both organically and through acquisitions, positions us well for the second half of the year.

“Since the end of the second quarter, we acquired two high-quality companies in the Mid-Atlantic region that expand and densify our operations in this market and offer exciting growth opportunities. As we build scale in this market, we see further value creation opportunity through cost efficiencies and our differentiated service offerings. Our M&A pipeline remains robust across our entire footprint with potential to close on more acquisitions this year.

“Incorporating acquisitions completed to date, we are raising our revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) guidance for fiscal year 2024.”

The company now foresees a fiscal year revenue figure of from $1.52 billion to $1.55 billion, up from a previous guidance range of $1.48 billion to $1.51 billion.

However, Casella Waste has lowered its net income guidance for its 2024 fiscal year. It previously had forecast a range of from $35 million to $45 million but has lowered that considerably to a $15 million to $25 million figure.

John Casella says the company met with some factors that negatively impacted the company's profitability in the second quarter.

“Volumes at the landfills were down year-over-year, which we anticipated, but we also incurred approximately $3 million of unanticipated expenses, representing 80 basis points of margin headwind in the quarter, notably higher leachate costs with the continued wet weather and employee separation costs,” he says.

“These issues offset the underlying success of our pricing programs, which remain ahead of inflation, and our operating programs, which are driving costs out of our collection line of business.”

Second quarter revenue of $377.2 million was up by $87.5 million, or 30.2 percent, from one year ago. The company says revenue growth was mainly driven by the rollover contribution from acquisitions closed in 2023, strong collection and disposal pricing and higher recycling commodity prices.