Casella highlights acquisitions, innovation in Q1 results

In the three months ending March 31, Rutland, Vermont-based Casella Waste Systems Inc. reported a strong start to the year, which was largely driven by “the continued execution of … core operating strategies and pricing programs and the successful integration of the acquisitions … completed in 2023,” says CEO John W. Casella.

In the company’s first-quarter results, Casella says investments in fleet automation, route optimization and onboard computers have allowed the company to improve efficiency, productivity and safety in its collection business.

He also highlights Casella’s focus on recycling, in which the company has made meaningful investments 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,” he says.

Additionally, the integration of 2023 acquisitions is “advancing well,” Casella says, and the company is realizing “planned synergies,” with more acquisitions in the pipeline.

For the quarter, revenues were $341 million, up $78 million, or 29.9 percent, 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.

“We remain focused on pricing our services appropriately and strengthening the quality of our revenue, with overall solid waste pricing up 5.5 percent, collection pricing up 6.2 percent and the average price per ton at our landfills up 13.3 percent in the quarter. Solid waste volumes were down year-over-year, as expected; however, this net trade-off improved margins,” Casella says.

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 higher depreciation and amortization expense related to acquisition growth and higher expenses from acquisition activities, as well as higher interest expense.

The company reaffirmed its guidance for the fiscal year, with revenues estimated to be between $1.4 billion and $1.5 billion.

“The business is operating in line with plan, and our outlook for our markets and the economy has not materially changed,” Casella says.