BURLINGTON, Vt., March 11, 2025 (GLOBE NEWSWIRE) -- Building on three decades of collaboration, Casella Waste Systems, Inc. (Casella) (Nasdaq: CWST), a regional solid waste, recycling, and resource management services company and the University of Vermont (UVM), an R1 research institution, announced that they are partnering to launch the Casella Center for Circular Economy and Sustainability at UVM. Casella has committed $1.5 million to launch the Center, which will bring together leading scientists, engine ...

RUTLAND, Vt., March 06, 2025 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (“Casella”) (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today announced that it has priced the previously announced offering of up to $25.0 million aggregate principal amount of Vermont Economic Development Authority (the “Issuer”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022A-2 (the “Bonds”) to be issued under an indenture between the Issuer and ...

Core Viewpoint - Casella Waste Systems, Inc. is offering up to $25.0 million in Solid Waste Disposal Revenue Bonds to finance capital projects in Vermont, utilizing proceeds from previously issued bonds [1]. Group 1: Bond Offering Details - The offering consists of Solid Waste Disposal Revenue Bonds Series 2022A-2, which are part of a larger issuance where $35.0 million was initially loaned to the company in June 2022 [1]. - The Bonds will be guaranteed by all or substantially all of Casella's subsidiaries, as required by the loan agreement [1]. - The net proceeds from the Bonds will be used to finance and/or reimburse certain capital project costs in Vermont [1]. Group 2: Conditions and Regulatory Aspects - The exact terms and timing of the bond offering will depend on market conditions and other factors, with no assurance that all approvals will be received [2]. - The Bonds will not be a general obligation of the Issuer and will not constitute a debt of the State of Vermont or any political subdivision [3]. - The Bonds will be offered only to qualified institutional buyers and have not been registered under the Securities Act [4].

Core Insights - Casella Waste Systems, Inc. has been recognized in Forbes' "America's Best Midsize Employers" list for 2025, being the only company in its industry and the only one headquartered in Vermont to receive this honor [1][2] Group 1: Employee Recognition and Satisfaction - The recognition was based on a survey conducted by Forbes in partnership with Statista, which involved over 217,000 employees from U.S. companies with more than 1,000 employees [2] - Employees rated their employers on various criteria, including salary, work environment, training programs, and opportunities for advancement [2] Group 2: Company Commitment to Workforce - The CEO of Casella emphasized that the company's workforce is its biggest competitive advantage, highlighting significant investments in safety, training, recruitment, and retention [3] - Casella established the Kenneth A. Hier Sr. CDL Training Center in 2020, which has trained over 300 new drivers, reflecting the company's commitment to employee development [3] Group 3: Previous Recognitions and Future Focus - In 2024, Casella was also included in Time's America's Best Midsize Companies list, based on employee satisfaction, revenue growth, and sustainability transparency [4] - The company continues to expand its training programs beyond drivers to include mechanics, technicians, and frontline leaders, reinforcing its commitment to service and safety [4][5] Group 4: Company Overview - Casella Waste Systems, Inc. provides resource management services primarily in solid waste collection, disposal, recycling, and organics services across the eastern United States [6]

Core Insights - Casella Waste Systems, Inc. has been recognized in Forbes' "America's Best Midsize Employers" list for 2025, being the only company in its industry and the only one headquartered in Vermont to receive this honor [1][2] Company Overview - Casella Waste Systems, Inc. is a regional solid waste, recycling, and resource management services company based in Rutland, Vermont, serving residential, commercial, municipal, institutional, and industrial customers primarily in the eastern United States [6] Employee Investment and Training - The company emphasizes its workforce as a key competitive advantage, having invested significantly in safety, training, recruitment, and retention, which benefits both customers and communities [3] - In 2020, Casella established the Kenneth A. Hier Sr. CDL Training Center, training over 300 new drivers since its inception [3] Recognition and Growth - In 2024, Casella was also included in Time's "America's Best Midsize Companies" list, highlighting employee satisfaction, revenue growth, and sustainability transparency [4] - The company continues to expand its training programs beyond drivers to include mechanics, technicians, and frontline leaders, reinforcing its commitment to service and safety [4][5] Service Philosophy - The company maintains a strong focus on service, stating that employee satisfaction leads to customer satisfaction, which in turn drives growth and financial success [5] - As the company surpasses 5,000 employees, it recognizes the importance of maintaining its service-oriented culture for sustainable future growth [5]

Acquisitions and Growth - The company closed on eight acquisitions in fiscal year 2024, expanding operations into New Jersey and New York's middle and lower Hudson Valley, contributing to a densified Mid-Atlantic platform[25]. - Since 2018, the company has acquired 68 solid waste collection, transfer, and recycling businesses, generating over $800 million in total annualized revenues[40]. - The workforce grew by over 20% in fiscal year 2024, reaching over 5,000 employees, due to acquisition activity and entry into new markets[43]. - The Mid-Atlantic region was entered in fiscal year 2023 with the completion of the GFL Acquisition, expanding the company's operational footprint[61]. - The company remains focused on increasing vertical integration in the Western region through market expansion and tuck-in acquisitions[61]. Pricing and Revenue - Landfill pricing increased by 4.4% for fiscal year 2024 compared to fiscal year 2023, driven by tightened disposal capacity in the Northeast market[28]. - Collection pricing rose by 6.5% for fiscal year 2024 compared to fiscal year 2023, aided by strategic pricing programs that offset cost inflation[31]. - Revenues for the Eastern region reached $416.7 million, the Western region $591.2 million, the Mid-Atlantic region $219.5 million, and Resource Solutions $329.9 million for fiscal year 2024[63]. - The National Accounts business experienced a volume increase of 4.3% in fiscal year 2024, reflecting strong demand for resource management services from larger customers[38]. Environmental Compliance and Regulations - The company’s operations are subject to extensive federal, state, and local regulations, requiring substantial capital expenditures for compliance[106]. - The Resource Conservation and Recovery Act (RCRA) regulates the generation and disposal of solid waste, classifying waste as hazardous or non-hazardous, with hazardous waste subject to more extensive regulations[109]. - The Clean Water Act requires permits for discharges from solid waste management facilities, with compliance necessary to avoid penalties[115]. - The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) imposes liability for cleanup costs of hazardous substances, which could significantly impact the company's financials if found responsible[118]. - The Clean Air Act regulates emissions from landfills, with potential future regulations focusing on greenhouse gas emissions, including methane[120][122]. - The company is currently in substantial compliance with applicable federal, state, and local environmental laws, with no anticipated material costs for future compliance[108]. - Future changes in environmental regulations could require the company to invest in additional pollution control technologies, impacting profitability[123]. Infrastructure and Technology - The company is executing a multi-year technology strategy, including a "Lead to Cash" project aimed at standardizing core revenue and operational systems, with a planned rollout in 2025 and 2026[46]. - The company has invested in processing infrastructure to reduce operating costs and improve the quality of post-sorted commodities, enhancing its recycling business model[36]. - The company has invested in rail infrastructure to expand market reach for the McKean Landfill, beginning waste deliveries by rail in fiscal year 2024[79]. - The company operates eight large-scale, high-volume MRFs across the northeastern United States, processing various recyclable materials[84]. Waste Management and Recycling - In fiscal year 2024, the company processed and/or marketed over 1.1 million tons of recyclable materials[85]. - The company has implemented a processing fee model to mitigate commodity pricing volatility, ensuring a guaranteed minimum price for recyclable materials[86]. - The company provides solid waste and recycling services to various customer segments, with a majority of commercial and industrial services performed under one-to-five year agreements[101]. - The company aims to grow its municipal, institutional, commercial, and industrial customer base by leveraging broader service offerings in its Resource Solutions operating segment[93]. Risk Management - The company maintains environmental risk management programs to ensure compliance with environmental laws and reduce the risk of contamination and litigation[96]. - The company has a maximum exposure of $1.50 million per individual event under its workers' compensation plan for fiscal year 2024[98]. - The company faces potential liabilities under the Comprehensive Environmental Response, Compensation, and Liability Act for hazardous substance releases[118]. - The company is subject to stringent state and local regulations regarding waste management, which may be more stringent than federal regulations[129]. Market Conditions - The solid waste services industry is competitive, with the company focusing on secondary or tertiary markets where it has a strong presence, while competing against large national companies[90]. - The global recycling market experienced significant volatility, with near record highs in Q2 FY 2022 followed by near record lows in Q4 FY 2022 due to economic conditions[87]. - Revenue is historically higher in late spring, summer, and early fall, reflecting seasonal waste volume fluctuations[103]. - Operations can be adversely affected by severe weather, which may increase operating costs and delay waste collection[104]. Executive Team - The company’s executive team includes experienced professionals with backgrounds in finance, operations, and legal, enhancing its strategic direction and compliance capabilities[140][141][142][143][144][145][146][147].

Financial Data and Key Metrics Changes - Revenues in Q4 2024 were $427.5 million, an increase of $67.9 million or 18.9% year-over-year, with $50.1 million from acquisitions and $17.8 million from organic growth [23] - Adjusted EBITDA was $95 million in the quarter, up $12.8 million or 15.6% year-over-year, with adjusted EBITDA margins at 22.2%, down 60 basis points year-over-year [27][28] - GAAP net income was $4.9 million in the quarter, up $6.7 million year-over-year [31] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 21.4% year-over-year, with acquisition growth of 17.8% and price up 5.4%, while volumes decreased by 1.8% [23] - Resource solutions revenues rose by 9.7% year-over-year, with recycling and processing revenue up 8.1% and national accounts up 10.7% [26] - Collection operations saw adjusted EBITDA margin expansion of over 100 basis points year-over-year [15] Market Data and Key Metrics Changes - Volume declines were concentrated in the mid-Atlantic region, particularly in recently acquired businesses, while collection volume was flat to positive elsewhere [24] - MSW tons into landfills were up 4.8% in the quarter, but special waste and C&D volumes were down 11.8% year-over-year [25] - The average price per ton at the landfill increased by 5.1% year-over-year [25] Company Strategy and Development Direction - The company closed eight acquisitions in 2024, contributing over $200 million in annualized revenue, and is focused on further acquisitions in 2025 [10][48] - The company aims to maintain a low leverage profile and has a disciplined growth strategy, focusing on integration and pricing strength [13] - Investments in automation and technology are ongoing to drive operational efficiencies and reduce costs [15][106] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for modest volume growth in 2025 as external pressures ease [14] - The company anticipates continued strong performance in the national accounts business, particularly in the industrial sector [130] - Management highlighted the importance of integrating acquisitions effectively to enhance operational performance [68] Other Important Information - The company expects adjusted free cash flow to grow approximately 9% at the midpoint for 2025, with capital expenditures of around $215 million [45] - The company has an estimated $83 million in NOLs, which are expected to shield most federal tax liability in 2025 [34] Q&A Session Summary Question: Update on M&A opportunities for 2025 - Management indicated that the M&A pipeline is very active, with ongoing discussions and several high-quality deals already closed in 2025 [62][64] Question: Plans for the new MRF acquisition in Massachusetts - The acquisition of Save That Stuff is expected to create synergies with existing operations, enhancing processing capabilities and route efficiencies [70][72] Question: Update on the Brookhaven situation in New York - Management confirmed that Brookhaven is closed for C&D, but they expect to see improvements in tonnage at their facilities in 2025 [75][76] Question: Impact of weather on Q1 operations - Management stated that weather has not significantly impacted operations compared to historical trends [84] Question: Internalization of tons and its economic implications - Management confirmed that internalization efforts are included in the 2025 guidance, with incremental margin benefits expected [93][94] Question: Technology spending and its purpose - Management is investing in upgrading systems to improve scalability and efficiency, with a focus on automating processes [106]

Core Viewpoint - Casella's quarterly earnings significantly exceeded expectations, indicating strong performance in the garbage-disposal and recycling services sector [1][2]. Financial Performance - The company reported earnings of $0.41 per share, surpassing the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.13 per share a year ago, resulting in an earnings surprise of 156.25% [1]. - Revenues for the quarter ended December 2024 were $427.49 million, exceeding the Zacks Consensus Estimate by 1.53%, and up from $359.57 million year-over-year [2]. Market Performance - Casella shares have increased by approximately 1.6% since the beginning of the year, while the S&P 500 has gained 3.2% [3]. - The company's current Zacks Rank is 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $404.99 million, and for the current fiscal year, it is $1.08 on revenues of $1.75 billion [7]. - The Pollution Control industry, to which Casella belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8].

Revenue Performance - Revenues for Q4 2024 were $427.5 million, an increase of $67.9 million or 18.9% compared to Q4 2023[4] - For fiscal year 2024, total revenues reached $1.557 billion, up $292.7 million or 23.1% from fiscal year 2023[8] - Revenues for the three months ended December 31, 2024, increased to $427.5 million, up 18.9% from $359.6 million in the same period of 2023[23] - Total revenues for the three months ended December 31, 2024, were $514.771 million, compared to $437.066 million for the same period in 2023, representing a year-over-year increase of 17.7%[41] - For the twelve months ended December 31, 2024, total revenues reached $1.886 billion, up from $1.546 billion in 2023, marking a growth of 22%[41] EBITDA and Income - Adjusted EBITDA for Q4 2024 was $95.0 million, reflecting a growth of $12.8 million or 15.6% year-over-year[7] - Adjusted EBITDA for fiscal year 2024 was $360.6 million, an increase of $66.0 million or 22.4% from fiscal year 2023[11] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $360.6 million, representing an increase of 22.4% from $294.6 million in 2023[30] - Net income for fiscal year 2024 was $13.5 million, down 46.7% from fiscal year 2023, while Adjusted Net Income was $80.7 million, up 8.7% year-over-year[10] - Net income for the three months ended December 31, 2024, was $4.9 million, compared to a net loss of $1.8 million in the same period of 2023[23] - Net income for the three months ended December 31, 2024, was $4.876 million, compared to a loss of $1.811 million in the same period of 2023, while the twelve months ended December 31, 2024, reported a net income of $13.536 million, down from $25.399 million in 2023[31] Cash Flow and Operating Activities - Net cash provided by operating activities for fiscal year 2024 was $281.4 million, up $48.3 million or 20.7% from fiscal year 2023[11] - Net cash provided by operating activities for the three months ended December 31, 2024, was $109.761 million, an increase from $75.267 million in 2023, and for the twelve months, it rose to $281.355 million from $233.092 million[34] - Adjusted Free Cash Flow for fiscal year 2024 was $158.3 million, an increase of $30.0 million or 23.4% from fiscal year 2023[11] - Adjusted Free Cash Flow for the three months ended December 31, 2024, was $59.555 million, compared to $33.991 million in 2023, and for the twelve months, it increased to $158.309 million from $128.299 million[34] Acquisitions and Growth - The company acquired eight businesses in fiscal year 2024 with over $200 million in annualized revenues and three businesses in fiscal year 2025 year-to-date with approximately $40 million in annualized revenues[3] - The company incurred $468.6 million in acquisitions during the twelve months ended December 31, 2024, compared to $851.8 million in 2023[28] - Acquisition-related expenses for the twelve months ended December 31, 2024, totaled $24.879 million, up from $15.038 million in 2023[31] - Solid waste operations contributed $60.370 million to revenue growth in Q4 2024, accounting for 21.4% of the related business growth[43] - Acquisitions accounted for $50.128 million, or 17.8% of the total solid waste operations revenue growth in Q4 2024[43] Capital Expenditures - The company incurred capital expenditures of $76.866 million for the three months ended December 31, 2024, compared to $64.543 million in 2023[34] - Growth capital expenditures for Q4 2024 were $29.382 million, up from $21.010 million in Q4 2023, indicating a 39.5% increase[45] - Replacement capital expenditures for the twelve months ended December 31, 2024, were $135.177 million, compared to $113.422 million in 2023, showing a growth of 19.2%[45] Future Projections - The company anticipates fiscal year 2025 revenues between $1.775 billion and $1.805 billion, with Adjusted EBITDA expected between $410 million and $425 million[13] - The company expects Adjusted EBITDA for the fiscal year 2025 to be between $410 million and $425 million, with net income estimated between $10 million and $25 million[38] - Estimated net cash provided by operating activities for fiscal year 2025 is projected to be between $320 million and $335 million, with capital expenditures expected to be $215 million[38] Assets and Liabilities - Total assets as of December 31, 2024, reached $3.23 billion, up from $2.54 billion in 2023, reflecting a growth of 27.4%[25] - Cash, cash equivalents, and restricted cash increased to $383.3 million as of December 31, 2024, compared to $220.9 million at the end of 2023[28] - Total current liabilities increased to $307.3 million as of December 31, 2024, from $278.9 million in 2023, marking a rise of 10.2%[25] Earnings Per Share - The company reported a basic earnings per share of $0.08 for the three months ended December 31, 2024, compared to a loss of $0.03 per share in the same period of 2023[23] - Adjusted Diluted Earnings Per Common Share for the three months ended December 31, 2024, was $0.41, up from $0.29 in 2023, while for the twelve months, it was $1.35 compared to $1.34 in 2023[31]

Core Insights - Casella Waste Systems, Inc. reported record financial results for 2024, with over 20% growth in revenues, Adjusted EBITDA, and Adjusted Free Cash Flow [3][5][10] - The company acquired eight businesses in 2024, contributing over $200 million in annualized revenue, and has continued its growth strategy into 2025 with three additional acquisitions [3][5][15] - The company anticipates a return to growth in landfill volumes in 2025 as market pressures subside [3][5] Financial Performance - Q4 2024 revenues reached $427.5 million, an increase of $67.9 million or 18.9% from Q4 2023 [5][6] - Fiscal year 2024 revenues totaled $1.557 billion, up $292.7 million or 23.1% from fiscal year 2023 [5][10] - Adjusted EBITDA for Q4 2024 was $95.0 million, a 15.6% increase from Q4 2023, while fiscal year 2024 Adjusted EBITDA was $360.6 million, up 22.4% from the previous year [9][13] Profitability Metrics - Net income for Q4 2024 was $4.9 million, a significant improvement from a loss of $(1.8) million in Q4 2023 [8][12] - Fiscal year 2024 net income was $13.5 million, down 46.7% from $25.4 million in fiscal year 2023, primarily due to lower operating income and higher interest expenses [12][13] - Adjusted Net Income for fiscal year 2024 was $80.7 million, an increase of 8.7% from fiscal year 2023 [12][13] Operational Highlights - Solid waste pricing increased by 5.7% in fiscal year 2024, driven by 6.5% growth in collection prices and 3.9% in disposal prices [5][10] - The company expanded Adjusted EBITDA margins in its collection business by over 100 basis points in 2024, attributed to price growth and operational efficiency [3][5] - The company has over 5,000 employees and operates in 10 states, marking its 50th anniversary in 2025 [3][5] 2025 Outlook - The company provided guidance for fiscal year 2025, estimating revenues between $1.775 billion and $1.805 billion, net income between $10 million and $25 million, and Adjusted EBITDA between $410 million and $425 million [15][16] - The guidance does not include the impact of any acquisitions that have not been completed [16]