Casella sees growth in 2021 fiscal year

Casella Waste Systems Inc., a Rutland, Vermont-based regional solid waste, recycling and resource management services company, has reported its financial results for the three- and 12-month periods ending Dec. 31, 2021.

“We had another great quarter and arguably the best year in the company’s history, as we continued to execute well against our long-term strategic plan, driving improved financial results and lasting operational benefits, despite lingering challenges from the COVID-19 pandemic, labor shortages and rising inflation,” says John W. Casella, chairman and CEO of Casella Waste Systems. “As a result, we increased revenues by 14.8 percent, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) by 18.8 percent and adjusted free cash flow by 37.9 percent year-over-year in fiscal year 2021.”

For the quarter, revenues were $241.8 million, up $41.6 million, or 20.8 percent, from the same period in 2020. The company says this revenue growth was mainly driven by the roll-over impact from acquisitions; positive collection and disposal pricing; higher solid waste volumes; higher recycling commodity prices; higher resource solutions processing volumes; and higher resource solutions nonprocessing volumes.

Net income was $9.1 million for the quarter, or 18 cents per diluted common share, down $53.8 million, or 85.5 percent, when compared with net income of $62.9 million, or $1.24 per diluted common share, for the same period in 2020. Adjusted net income, a nongeneral accepted accounting principles (GAAP) measure, was $11 million for the quarter, or 21 cents adjusted diluted earnings per common share, a non-GAAP measure, up $2.2 million, or 25.6 percent, when compared with adjusted net income of $8.8 million, or 17 cents adjusted diluted earnings per common share, for the same period in 2020.

Operating income was $16.3 million for the quarter, up $2.1 million, or 14.8 percent, from the same period in 2020. Adjusted operating income, a non-GAAP measure, was $18.4 million for the quarter, up $3.1 million, or 20.4 percent, from the same period in 2020. Adjusted EBITDA was $51.4 million for the quarter, up $8.8 million, or 20.6 percent, from the same period in 2020.

For fiscal year 2021, revenues were $889.2 million, up $114.6 million, or 14.8 percent, from fiscal year 2020. Net income was $41.1 million, or 80 cents per diluted common share, for fiscal year 2021, which compares with net income of $91.1 million, or $1.86 per diluted common share, for fiscal year 2020. Adjusted net income was $46.3 million, or 90 cents adjusted diluted earnings per common share, for fiscal year 2021, which compares with adjusted net income of $40.8 million, or 83 cents adjusted diluted earnings per common share, for fiscal year 2020.

“Our guidance ranges assume a stable economic environment continuing from the fourth quarter 2021 through the remainder of 2022,” Casella says. “We believe that we have established an appropriate pricing plan for 2022 that positions us to offset inflationary headwinds, while still improving margins through our investments in technology and core operating programs.

“Further, we have several exciting resource solutions projects planned for 2022, including a full equipment upgrade to our Boston, Massachusetts, recycling facility to improve throughput and increase efficiencies; the introduction of robotics and optical sorting technologies to additional recycling facilities; and two renewable natural gas projects at our landfills, where a third party is making the capital investments and we will receive gas royalties," he adds.