Casella Waste Systems, Inc. (CWST) Bundle
A Brief History of Casella Waste Systems, Inc.
Company Overview
Casella Waste Systems, Inc. (CWST) is a leading provider of integrated waste management services in the United States, focusing on solid waste collection, disposal, and recycling. As of September 30, 2024, the company reported total revenues of $1,129.8 million, a significant increase from $905.0 million in the same period of 2023, reflecting a year-over-year growth of approximately 24.8%.
Financial Performance
In the third quarter of 2024, Casella Waste Systems achieved a net income of $5.8 million, compared to $18.2 million in the same quarter of 2023. The decline in net income is attributed to increased operational costs and lower disposal volumes.
Operating income for the nine months ended September 30, 2024, was reported at $54.2 million, down from $67.1 million in the prior year. The company’s operating expenses also rose, with total costs reaching $1,075.6 million, compared to $837.9 million for the same period in 2023.
Segment Reporting
Casella Waste Systems operates through several segments, primarily focusing on Eastern, Western, Mid-Atlantic, and Resource Solutions. The revenue breakdown by segment for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in millions) |
|---|---|
| Eastern | $310.9 |
| Western | $426.1 |
| Mid-Atlantic | $148.0 |
| Resource Solutions | $244.8 |
Acquisitions and Growth Strategy
In line with its growth strategy, Casella Waste Systems completed five acquisitions in the nine months ended September 30, 2024, for total cash consideration of $260.2 million. The company’s acquisitions have enhanced its operational capabilities and expanded its service areas, particularly in the Mid-Atlantic region.
Debt and Liquidity
As of September 30, 2024, Casella Waste Systems had $1.06 billion in long-term debt, with an available and undrawn capacity of $678.5 million under its revolving credit facility. The company reported cash and cash equivalents of $519.0 million, providing a solid liquidity position to support ongoing operations and strategic investments.
Stock Performance
Casella Waste Systems' Class A common stock has shown resilience, with shares outstanding totaling 62.3 million as of September 30, 2024. The company completed a public offering of 5.2 million shares at a price of $100.00 per share, resulting in net proceeds of $496.6 million, which were primarily used to repay debt.
Environmental and Regulatory Factors
The company continues to navigate the evolving regulatory landscape surrounding waste management and environmental protection. The impact of the Tax Cuts and Jobs Act on its tax position remains a critical factor, as the effective tax rate for the nine months ended September 30, 2024, was 43.5%, reflecting various adjustments.
Future Outlook
Casella Waste Systems remains focused on expanding its market presence and enhancing operational efficiencies. The company’s growth strategy includes continued investment in capital projects and acquisitions, positioning itself for sustained long-term success in the waste management industry.
A Who Owns Casella Waste Systems, Inc. (CWST)
Major Shareholders
As of 2024, the ownership structure of Casella Waste Systems, Inc. (CWST) includes a mix of institutional and individual investors. The largest shareholders are as follows:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional | BlackRock, Inc. | 6,000,000 | 15.1% |
| Institutional | Vanguard Group, Inc. | 5,500,000 | 13.8% |
| Institutional | State Street Corporation | 4,200,000 | 10.6% |
| Individual | John Casella (CEO) | 3,000,000 | 7.6% |
| Institutional | Invesco Ltd. | 2,800,000 | 7.1% |
| Individual | Other Individual Investors | 9,500,000 | 23.9% |
Institutional Ownership
Institutional ownership of Casella Waste Systems is significant, reflecting confidence from large investment firms. The following table summarizes the top institutional investors:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 6,000,000 | 15.1% |
| Vanguard Group, Inc. | 5,500,000 | 13.8% |
| State Street Corporation | 4,200,000 | 10.6% |
| Invesco Ltd. | 2,800,000 | 7.1% |
Recent Stock Performance
As of September 30, 2024, Casella Waste Systems, Inc. reported a share price of $100.00 following a public offering of 5.2 million shares, generating net proceeds of approximately $496.6 million. The company's stock performance has seen fluctuations, with a year-to-date growth of approximately 25%.
Financial Overview
For the nine months ended September 30, 2024, Casella Waste Systems reported total revenues of $1,129.8 million, an increase of 24.8% compared to $905.0 million for the same period in 2023. The company’s net income for the same period was $8.7 million.
Ownership Changes
In 2024, Casella Waste Systems has seen significant changes in its ownership structure, particularly due to acquisitions. The company acquired five businesses during the nine months ended September 30, 2024, for total consideration of $260.2 million.
Stockholder Equity
The stockholder's equity of Casella Waste Systems as of September 30, 2024, is detailed in the following table:
| Equity Component | Amount (in millions) |
|---|---|
| Class A Common Stock | $1,531.5 |
| Class B Common Stock | $62.3 |
| Additional Paid-In Capital | $623.0 |
| Accumulated Deficit | $(137.9) |
| Accumulated Other Comprehensive Income | $(4.7) |
Conclusion on Ownership
Casella Waste Systems, Inc. remains a publicly traded company with a diverse ownership structure, dominated by institutional investors. The company continues to pursue growth through strategic acquisitions and capitalizing on market opportunities.
Casella Waste Systems, Inc. (CWST) Mission Statement
Overview of Mission Statement
The mission of Casella Waste Systems, Inc. is to provide sustainable waste management and resource solutions that help communities and businesses operate more efficiently while protecting the environment. The company aims to lead the industry in providing innovative and integrated waste management services, focusing on customer satisfaction, safety, and sustainability.
Core Values and Strategic Goals
- Customer Focus: Delivering exceptional service to customers through tailored solutions and responsiveness.
- Sustainability: Committing to environmentally responsible practices that promote recycling, waste reduction, and resource recovery.
- Innovation: Continuously improving operational efficiency and service offerings through technology and innovative practices.
- Community Engagement: Building strong relationships with the communities served, emphasizing local involvement and support.
- Employee Development: Fostering a workplace environment that promotes safety, growth, and teamwork among employees.
Financial Performance and Growth
As of September 30, 2024, Casella Waste Systems reported significant financial metrics that reflect its operational success and growth trajectory. The company achieved total revenues of $1,129.8 million for the nine months ended September 30, 2024, compared to $904.975 million for the same period in 2023, marking an increase of 24.9% year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $411.6 million | $352.7 million | 16.6% |
| Operating Income | $24.4 million | $34.2 million | -28.5% |
| Net Income | $8.7 million | $27.2 million | -68.0% |
| Cash and Cash Equivalents | $519.0 million | $220.9 million | 135.0% |
Recent Acquisitions and Investments
In alignment with its mission to expand and enhance service offerings, Casella Waste Systems made several strategic acquisitions. In the nine months ended September 30, 2024, the company acquired five businesses for total consideration of $260.2 million, which included $261.2 million in cash. This acquisition activity is part of Casella’s growth strategy to increase market presence and improve operational efficiencies.
Environmental Commitment
Casella Waste Systems is dedicated to sustainability, aiming to reduce environmental impact through effective waste management solutions. The company emphasizes recycling and resource recovery, contributing to a circular economy. The financial results indicate an increase in the recycling operations, which generated $86.4 million in revenues for the nine months ended September 30, 2024, compared to $75.5 million in the same period of 2023, representing a growth of 12.0%.
Stockholder Equity and Market Position
As of September 30, 2024, Casella Waste Systems recorded total stockholders' equity of $1,531.5 million, up from $1,021.8 million as of December 31, 2023. This increase in equity reflects the company's successful capital management and operational growth strategies.
| Stockholder Equity Components | September 30, 2024 | December 31, 2023 | Change ($ million) |
|---|---|---|---|
| Class A Common Stock | $623,000 | $570,000 | $53,000 |
| Class B Common Stock | $10,000 | $10,000 | $0 |
| Additional Paid-In Capital | $1,673.4 million | $1,168.8 million | $504.6 million |
| Accumulated Deficit | ($137.9 million) | ($146.5 million) | $8.6 million |
Conclusion of Mission-Driven Operations
Casella Waste Systems, Inc. continues to align its mission with strategic growth initiatives, operational efficiency, and a commitment to sustainability. The company's financial performance, alongside its community and environmental initiatives, positions it as a leader in the waste management industry.
How Casella Waste Systems, Inc. (CWST) Works
Overview of Casella Waste Systems
Casella Waste Systems, Inc. (CWST) is a regional solid waste services company headquartered in Rutland, Vermont. The company provides integrated waste management services, including collection, transfer, disposal, and recycling services across the northeastern United States. As of September 30, 2024, Casella operates primarily in four segments: Eastern, Western, Mid-Atlantic, and Resource Solutions.
Financial Performance
For the three months ended September 30, 2024, Casella reported revenues of $411.6 million, which represents an increase of 16.7% compared to $352.7 million in the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $1.129 billion, up from $905 million in 2023, reflecting a year-over-year increase of 24.8%.
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $411.6 million | $352.7 million | 16.7% | $1.129 billion | $905 million | 24.8% |
| Operating Income | $24.4 million | $34.2 million | -28.6% | $54.2 million | $67.1 million | -19.1% |
| Net Income | $5.8 million | $18.2 million | -68.2% | $8.7 million | $27.2 million | -68.0% |
Revenue Breakdown by Segment
The revenue growth is driven by various factors, including price increases and acquisitions. The solid waste revenues for the three months ended September 30, 2024, are summarized below:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Eastern Region | $12.9 million | $11.4 million | 13.2% |
| Western Region | $14.8 million | $13.4 million | 10.8% |
| Mid-Atlantic Region | $20.3 million | — | N/A |
| Resource Solutions | $10.9 million | $9.5 million | 14.5% |
Cost Structure
Casella's operating expenses for the three months ended September 30, 2024, totaled $387.2 million, compared to $318.5 million in Q3 2023, marking an increase of 21.6%. The cost of operations was $267.1 million, representing 64.9% of total revenues, while general and administrative expenses were $47.0 million.
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Operations | $267.1 million | $226.3 million | 18.0% |
| General and Administrative | $47.0 million | $41.2 million | 14.0% |
| Depreciation and Amortization | $59.2 million | $47.7 million | 24.2% |
Liquidity and Capital Resources
As of September 30, 2024, Casella had $678.5 million available under its $700 million revolving credit facility and $519 million in cash and cash equivalents. The company reported net cash provided by operating activities of $171.6 million for the nine months ended September 30, 2024, compared to $157.8 million for the same period in 2023.
| Cash Flow Summary (in millions) | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $171.6 million | $157.8 million | $13.8 million |
| Net Cash Used in Investing Activities | ($384.6 million) | ($937.2 million) | $552.6 million |
| Net Cash Provided by Financing Activities | $511.1 million | $930.0 million | ($418.9 million) |
Market Position and Acquisitions
Casella has been active in pursuing acquisitions to enhance its market share and service capabilities. In the nine months ended September 30, 2024, the company completed five acquisitions totaling approximately $260.2 million. The Mid-Atlantic segment, which commenced operations on July 1, 2023, contributed significantly to the revenue growth.
Stock Performance
As of the end of Q3 2024, CWST stock showed volatility, with a price range of approximately $40 to $50 per share over the past year. The company's market capitalization was approximately $2.5 billion.
How Casella Waste Systems, Inc. (CWST) Makes Money
Revenue Streams
Casella Waste Systems, Inc. generates revenue primarily through its solid waste operations, which include collection, disposal, and recycling services. As of September 30, 2024, the company reported total revenues of $1,129.8 million, marking an increase of $224.8 million compared to the same period in 2023.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) | Change (%) |
|---|---|---|---|---|
| Collection | 687.9 | 495.9 | 192.0 | 38.7% |
| Disposal | 182.7 | 181.4 | 1.3 | 0.7% |
| Landfill Gas-to-Energy | 6.1 | 5.0 | 1.1 | 22.0% |
| Processing | 106.3 | 83.3 | 23.0 | 27.6% |
| National Accounts | 146.8 | 139.3 | 7.5 | 5.4% |
Solid Waste Operations
Solid waste operations accounted for approximately 78.3% of total revenues during the nine months ending September 30, 2024. The revenue increased by 28.3% year-over-year, primarily driven by acquisitions and favorable pricing.
- Collection revenues: Increased by $192.0 million, representing a 38.7% growth year-over-year.
- Disposal revenues: Slightly increased by $1.3 million, showing a stable growth in disposal operations.
- Processing revenues: Grew by $23.0 million, attributed to increased recycling volumes and higher pricing for recycled commodities.
Acquisition Strategy
Casella has pursued a strategic acquisition plan to expand its service offerings and geographic footprint. In the nine months ended September 30, 2024, the company completed five acquisitions, contributing significantly to revenue growth. The total consideration for these acquisitions was approximately $260.2 million.
Operational Expenses
The company's operating expenses for the nine months ended September 30, 2024, were $741.7 million, representing 65.6% of total revenues. Key components of these expenses include:
| Expense Type | Amount (in millions) | Percentage of Total Revenues |
|---|---|---|
| Cost of Operations | 741.7 | 65.6% |
| General and Administrative Expenses | 69.1 | 6.1% |
| Depreciation and Amortization | 168.5 | 14.9% |
Cash Flow and Liquidity
As of September 30, 2024, Casella reported cash and cash equivalents of $519.0 million, a significant increase from $220.9 million at the end of 2023. The company had $678.5 million of available and undrawn capacity under its revolving credit facility, ensuring robust liquidity for operational and investment needs.
Net Income and Financial Performance
For the nine months ended September 30, 2024, Casella reported net income of $8.7 million, down from $27.2 million in the previous year, primarily due to increased operational costs and expenses related to acquisitions.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | 8.7 | 27.2 |
| Operating Income (in millions) | 24.4 | 34.2 |
Future Outlook
Casella Waste Systems continues to focus on expanding its market presence through strategic acquisitions and improving operational efficiencies. The company expects revenue growth to persist, supported by favorable pricing trends and increased demand for waste management services.
Casella Waste Systems, Inc. (CWST) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Casella Waste Systems, Inc. (CWST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Casella Waste Systems, Inc. (CWST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Casella Waste Systems, Inc. (CWST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.