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• Revenue: $411.6 million, up 16.7% year over year.

• Adjusted EBITDA: $102.9 million, up 14.9% year over year.

• Adjusted EBITDA Margin: 25%, down 40 basis points year over year.

• Net Cash Provided by Operating Activities: $171.6 million for the first nine months, up $13.8 million year over year.

• Adjusted Free Cash Flow: $98.8 million for the first nine months, up $4.4 million year over year.

• Solid Waste Revenue Growth: 17.3% year over year.

• Collection Line Price Increase: 6.1%.

• Landfill Price Growth: 4.6%.

• Resource Solutions Revenue Growth: 14.5% year over year.

• Recycling and Other Processing Revenue Growth: 25.8%.

• National Accounts Revenue Growth: 8%.

• Average Price Per Ton at Landfills: Up 7.1% year over year.

• Net Income: Adjusted net income of $15.9 million, down $4.2 million year over year.

• GAAP Net Income: $5.8 million, down $12.4 million year over year.

• Acquisition Revenue Contribution: $37.5 million from acquisitions.

• Organic Growth Contribution: $21.3 million or 6%.

• Debt: $1.1 billion as of September 30.

• Cash: $519 million as of September 30.

• Consolidated Net Leverage Ratio: 2.57 times for bank covenant purposes.

• Warning! GuruFocus has detected 8 Warning Signs with CWST.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Casella Waste Systems Inc (NASDAQ:CWST) completed its sixth acquisition of the year, including the significant acquisition of Royal, enhancing its market presence.

• The company achieved over $400 million in revenue and over $100 million in adjusted EBITDA for the first time in a quarter, reflecting strong operational performance.

• Strategic investments in frontline operations have led to improved adjusted EBITDA margins, up 130 basis points in the collection segment.

• The company received support from the state of Maine for the expansion of its Juniper Ridge landfill, securing long-term disposal capacity.

• Casella Waste Systems Inc (NASDAQ:CWST) has a robust M&A pipeline with approximately $600 million in potential revenue, indicating continued growth opportunities.

Negative Points

• Landfill volumes were down year over year, with significant declines in construction and demolition (C&D) waste impacting results.

• The company faced over $3 million in unexpected insurance expenses related to two discrete events, negatively affecting margins.

• Adjusted net income decreased by $4.2 million compared to the prior year, impacted by higher amortization and interest expenses.

• The Southbridge landfill closure resulted in an $8.5 million charge due to revised post-closure cost estimates.

• The retrofit and upgrade of the Willimantic recycling facility caused a temporary negative impact on results, with the facility offline until early 2025.