Casella Waste Systems, Inc. (NASDAQ: CWST) has released its financial results for the second quarter of 2024, along with recent acquisitions and an update to its fiscal year 2024 guidance.
In the second quarter of 2024, the company reported revenues of $377.2 million, marking a significant increase of $87.5 million or 30.2% from the same period in 2023. Solid waste pricing saw a notable uptick, with a 5.7% increase from the same period in 2023, driven by a 6.2% collection price growth and a 4.8% disposal price growth.
Net income for the quarter stood at $7.0 million, reflecting a noteworthy increase of $1.5 million or 27.6% from the second quarter of 2023. Adjusted EBITDA, a non-GAAP measure, was reported at $91.6 million for the quarter, up $19.4 million or 26.9% from the same period in 2023.
Casella Waste Systems, Inc. also announced the acquisition of five businesses through August 1, 2024, with over $100 million in aggregate annualized revenues, including LMR Disposal, Inc. and Whitetail Disposal, Inc. in the mid-Atlantic region.
Looking at the fiscal year 2024 outlook, the company raised its revenue guidance to a range of $1.520 billion to $1.550 billion, up from the previous range of $1.480 billion to $1.510 billion. Adjusted EBITDA guidance was also revised upward to a range of $360 million to $370 million, compared to the previous range of $350 million to $360 million.
However, the company revised its guidance for net income to a range of $15 million to $25 million, down from the prior range of $35 million to $45 million. Similarly, the net cash provided by operating activities was adjusted to a range of $245 million to $255 million, lower than the previous range of $260 million to $270 million.
The company's operating income for the quarter was $23.0 million, up $0.4 million or 1.8% from the same period in 2023. The net income for the quarter was reported at $7.0 million, or $0.12 per diluted common share, compared to $5.5 million, or $0.10 per diluted common share, for the same period in 2023. Adjusted net income for the quarter was $12.5 million, or $0.22 adjusted diluted earnings per common share, down from $18.8 million, or $0.36 adjusted diluted earnings per common share, for the same period in 2023.
The company's net cash provided by operating activities for the year-to-date period was $79.8 million, as compared to $83.2 million for the same period in 2023. Adjusted free cash flow for the year-to-date period was $39.5 million, down from $47.9 million for the same period in 2023.
Casella Waste Systems, Inc. highlighted that the revenue growth was mainly driven by the rollover contribution from acquisitions closed in 2023, strong collection and disposal pricing, and higher recycling commodity prices.
The company also mentioned that its overall operating performance has been consistent with its plan through the first half of the year, despite some discrete factors negatively impacting adjusted EBITDA on a year-over-year basis in the second quarter.
Casella Waste Systems, Inc. has provided a safe harbor statement in the press release, indicating that certain matters discussed, including its financial performance, operations, and guidance for fiscal year 2024, are forward-looking statements subject to risks and uncertainties.
For further information, investors may contact Charlie Wohlhuter, Director of Investor Relations at (802) 772-2230, or visit the company’s website at http://www.casella.com.
The company will host a conference call on Friday, August 2, 2024, at 10:00 a.m. Eastern Time to discuss the results. Individuals interested in participating in the call can obtain the dial-in number and unique passcode by registering on the company's website.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services in the eastern United States. The market has reacted to these announcements by moving the company's shares -1.2% to a price of $102.29. Check out the company's full 8-K submission here.
