Casella Waste Systems Inc., Rutland, Vermont, has reported its financial results for the three month period ending March 31.
For the first quarter of 2021, revenues were $189.5 million, up $6.6 million, or up 3.6 percent, from the same period in 2020. Casella credits this revenue growth to positive collection and disposal pricing; the roll-over impact from acquisitions; higher recycling commodity prices; and higher resource solutions non-processing revenues, partially offset by lower solid waste volumes primarily due to the negative impacts of the COVID-19 pandemic and lower fuel surcharge and other fees.
Net income was $4.3 million for the quarter, up $3.3 million, or up 349.5 percent, as compared to net income of $1.0 million for the same period in 2020. The quarter included $0.4 million of expense from acquisition activities and $0.2 million of legal and other expenses associated with the closure of the company’s landfill in Southbridge, Massachusetts. The same quarter last year included $1.0 million of expense from acquisition activities and $0.6 million of legal and other costs associated with the Southbridge Landfill closure.
Given the reversal of the tax valuation allowance in 2020, Casella expects an income statement tax provision of approximately 31 percent in fiscal year 2021. The income tax provision was $2.4 million in the quarter, up $2.3 million from the same period in 2020, and as expected the company paid cash taxes of $0.2 million in the quarter.
Adjusted net income, a non-GAAP measure, was $4.8 million for the quarter, or $0.09 adjusted diluted earnings per common share, up $2.6 million, or up 122.1 percent, as compared to adjusted net income of $2.1 million, or $0.04 adjusted diluted earnings per common share, for the same period in 2020.
Operating income was $12.0 million for the quarter, up $5.0 million, or up 71.3 percent from the same period in 2020. Adjusted EBITDA was $38.8 million for the quarter, up $5.3 million, or up 15.9 percent, from the same period in 2020.
“Our team continued to execute very well through the first quarter as we increased adjusted EBITDA by 15.9 percent, adjusted EBITDA margins by 215 basis points, and adjusted free cash flow by 172.8 percent year-over-year in the quarter despite continued solid waste volume headwinds due to the COVID-19 pandemic,” said John W. Casella, chairman and CEO of Casella. “These positive results are a testament to the hard work, adaptability and dedication of our team, the resiliency of our business model, our asset positioning in the disposal capacity constrained northeast market that allowed us to advance positive solid waste pricing, and strong execution against our operating and cost efficiency programs.”
Casella continued, “Solid waste volume declines continued to moderate sequentially from the fourth quarter of 2020 through the first quarter of fiscal year 2021. With volumes down 3.3 percent year-over-year in the quarter, we had a tough volume comparison in the first quarter as we experienced only very limited negative impacts from the COVID-19 pandemic late in the first quarter last year. We expect solid waste volumes to improve year-over-year through the remainder of fiscal year 2021.”