Casella reports improved quarterly income

Rutland, Vermont-based Casella Waste Systems Inc. has reported improved financial results for the financial quarter ended June 30, 2016. The company says its revenue in the quarter was $144.7 million, up by $1.0 million, or 0.7 percent, from the same period in 2015. Its net income was $5.2 million for the quarter, an improvement of $4.2 million from the same period in 2015.

“We had another strong quarter as our team executed well against our key management strategies as the regional economy continued to strengthen,” says John W. Casella, chairman and CEO of Casella Waste Systems Inc. “Our results clearly demonstrated this improvement, with operating income up $4.2 million and margins up 290 basis points year over year in the second quarter.”

The company says its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $34.8 million for the quarter, an improvement of $4.1 million, or 13.3 percent, from the same period in 2015. The company’s adjusted operating income for the quarter was $15.6 million, an improvement of $4.6 million, or 42.4 percent, from the same period in 2015.

Overall solid waste pricing for the quarter was up 3.5 percent, “mainly driven by strong collection pricing up 4.8 percent,” says the firm.

“Achievement of our strategies is clearly driving positive results, with residential and commercial collection pricing up 5.3 percent on our focused pricing programs,” says John Casella. “Further, our efforts to reduce operating costs and drive efficiencies continue to gain traction across each line of business,” he adds.

John Casella also addressed the recycling sector, commenting, “Recycling operating income was up $0.9 million year over year as our efforts to reshape the recycling business model has improved financial performance in these low commodity markets and helped to mitigate commodity risk.”

On the landfill side, Casella adds, “As expected, we did experience volume headwinds at the landfills during the quarter, with tons down 8.4 percent year over year, as the unseasonably warm Northeast winter resulted in a pull-forward of volumes from the second quarter to the first quarter. Our efforts to improve price at select sites has dampened volume growth, and energy-related waste streams were down in the Marcellus,” Casella said. “With that said, landfill volumes year-to-date were up 51,000 tons, or 2.6 percent, year over year, with particular strength in construction and demolition volumes, which were up 124,000 tons year over year.”