CWST - Earnings call transcript Q4 2020 | Casella Waste Systems, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Casella Waste Systems, Inc. Q4 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please Instructions]. [Operator hand over Vice to I Communications. would speaker conference to like Fusco, now your the today, President, Joe Please go ahead, sir.

Joseph Fusco

SEC. am of and XXXX. you that expectations, about discussed important annual may Actual Securities from as result materially indicated factors, plans first, those Form XX-K, today morning, our Thank XXXX President the on various Officer of review Today, fourth results report update file Finance. Director Executive results forward-looking and But the and Senior we we be and purposes Private forward-looking Operating Factors Safe activities, Harbor that Waste results. afternoon. discussing our Officer; Litigation our a the of business know, the we welcome. remarks everyone and provisions company's and us Officer; will These will as well. for Johnson, quarter Casella compelled Casella, including on make differ under by those of answering were Along Jason be this year-end Chief section Risk with Ed of prospects an for with statements in and you With statements yesterday recent and the Financial joining questions released your those of us of may results I the Mead, environment, Act Vice various President a are to Systems; on the Chief brief those Ned John most Chairman Reform as remind our future is constitute and company's deeply our which Chief Coletta,

of not of views subsequent any statements any our be as date. forward-looking views and should In our only upon as representing relied addition, as represent today

will accepted views to John should measures to unreasonable our specifically measures, not the not of of accounting today. change. future, our so financial any to will generally to These to While is measures. the I statements directly we statements it elect referring most over older some as the be is the to at date call, to in is The begin upon they a little than today's Investors are representing These our this the statement. even be comparable as non-GAAP if appendix views available older turn presentation, financial of extent slide available get we measures through accordance obligation are we Casella, point in ir.casella.com. GAAP subsequent update principles. investor do to Reconciliations that, prepared discussion. any in forward-looking our disclaim at non-GAAP may the are that the forward-looking available with with effort, without relied breathe in to Also who'll which during who section I harder But me, website non-GAAP

John Casella

Good morning, everyone. call. fourth quarter Joe. XXXX Thanks, our Welcome to conference

courage, a are highlights with our obviously and year of fourth and with execution XXXX and This very unprecedented, was resiliency on of service reliable business, Many safe who our tenacity and men employees. at and to performed again, X,XXX customers. exceptionally providing and level women our dedication our quarter results. strong the We our the in to our pleased performance high thanks, along an frontlines

customer personnel. office limited the maintenance, to, sales, is our care success back other and across safety, teams operating, XXXX certainly company, to Our but including, in credited also not

while service safeguarded also understand helped EBITDA that lower in by commercial a by adjusted a lower free headwind by XXX volumes our drive year-over-year only expenses of year, XXXX resulted cash our compared disposal service consolidated flex customers basis from waste by over levels a revenues tonnages, we services but net was by the guidance costs. deliver workforce year our points, and COVID adjusted and of ratio. and needs continued by year-over-year, and adjusted primarily other solid our organized million As announced adhering proactive We in central waste million to last roughly XXXX, the this we orders. not company, of down $XX.X so ranges our to guidelines of X.X%, lines despite worked and specific are onset year, leverage rightsize adjusted and our industrial as with of levels and flow drove exceeded XXXX decline our pandemic. collection state EBITDA changing coupled Despite basis, their of operating These cash on COVID-related we and grew solid met CDC volume expanding the to volumes activity same with X.X%, safety margins increased flow Lower to $X.X the in as XX.X% further variable to million driven free consolidated time, during customers. At we business. results ensured could the improved XXXX. This the respectfully Notably, being economic our of down actions in ability strong initial environmental volumes our for costs. February $XX.X the

Operating against pricing year, very acquisitions. displayed XX capital closed key discipline initiatives, the During executed strategies we initiatives programs -- and well our strategic significant sorry.

our will impacts year. down the Disposal volumes were Volumes continue Starting compared the on quarter the strategies. economic improvement performance I'll third volumes to key well as in fourth similar same terms period year-over-year. of sequential the to volumes, meter we quarter, what seasonal disposal there against levels. towards slowly of due disposal operations within were In of down approximately X.X% collection back volume year-over-year down third the as with to COVID. the That Next, our execution to last recovery XX% said, quarter. we're from to normal further continued highlight was recent the provide operations, quarter our the details in fourth again

XXXX. offset lower impact partially in helped well and to of programs continue the tonnages pricing Our to work

our for lower adjust to During the disposal volumes. out year, operations variable we costs also flexed of select

maintaining our host our While, high management related to of communities on efforts and provide compliance, environmental as and meet standards we we resource with to focused safety remain needs. relationships infrastructure our and a services help central key permitting course, society's furthering

the to business. collection Moving

were expected, the As again down volumes year-over-year. in quarter

as recovery down were continued again narrow the the volume year-over-year X% Increased increased In down adjusted were However, sequential a fourth to we and businesses where third quarter the Despite quarter, X% online. roll-off third experienced quarter in modest intervals from seasonal a since collection second XX% the year-over-year. and volume collection to This headwind, EBITDA year-over-year service the in back normalized the the we as volumes to marks activity year-over-year quarter some to volumes down quarter. recovery continued trends. the fairly substantial fourth margins over gap compared quarter. over came

remain Our real-time performance route We been business efficiency, intelligence. On collection excellence, pricing optimization Resource aided on has integration. operating continued better to to investment by and acquisition programs initiatives, drive service technology, in automated focused Solutions. trucks and

value to worked from solutions teams. resource recycling, and continue office to customer and have drive further synergies We we as sales solutions back more our organics integrate and

grow, team required to to resource needs services expertise sustainability these customers' solutions positioned our achieve goals. well and is As our provide

and sustainable. our of economically in and business, all other quarter performed well are solutions with year. Resource models aspects we on the focused environmentally As that on are the

improving X.X% margins. X operations with adjusted EBITDA all were growth up For the year-over-year expanding and revenues while year, within

year. on performed particularly Our well recycling operation the

Our have to XX% risk. tip recycling fee over offtake fee of and SRA commodity programs us the allowed

improvements We continue lines. the on make at while time, operational to initiatives, same the through processing various safety prioritizing

addition driving opportunities. focus to solutions Our new wallet through the intensity and customers on capital growing gaining organics across businesses value integration while customers, existing continue customer business share services profitable of with vertical new increasing model through the business and of low

due our modest XXXX, XX we allocation $XX approximately of growth In strategy. and was Finally, acquisition growth the closed revenue, acquisitions in annualized to COVID-XX somewhat capital restrictions. I'll with travel while our million year highlight

pipeline over revenues ended million cash. liquidity, million $XXX $XXX million with the in year Our in strong including $XXX with opportunities. of We of over remains annualized

to free opportunistically growth. approximately cash collection we in New aboard strategic capital new will through you X We to in put far, in flow with that manner Thus the return-driven have to the drive Casella Western are in folks are team. acquisition I'll turn annualized walk work operation fit York further The on poised tuck-in deals posed a welcome XXXX, Ned our with that nicely financials. the complement $X hard-working and operations, that, And it to will to we revenue. million with over

Ned Coletta

with Thanks, John. $XXX.X change fourth the up million acquisition of up were year-over-year, X.X% X.X% year-over-year the driven $X.X activity. in Revenues by or million, quarter

the XX% we collection were waste have third down growth down up April X.X%, up price roughly up of in a X.X%. Northeast, and our were of X.X% of low quarter business rural late through a COVID X.X% were business and sequential X%. and X% year-over-year secondary price acquisitions revenues waste solid is point Solid the Revenues economy with volumes year-over-year, from year-over-year. X.X% mid-October. markets improving in volumes in with across With since volumes to the down stable improvement from the up This when line X.X% experienced

COVID November their select service commercial reduce with However, the levels. customers December, cases ramp-up in of and had we

some activity new the industrial another were was by XX.X% end we on Or COVID-XX. back organics was in year. up services the due were revenue impact XX% on X.X% line impacted we've that limited, down X.X% business businesses early were levels Resource year-over-year, the timing with permit rate suspended a down or as way, solutions the were And COVID. were negatively further at and were differences economic of winter we revenues projects contracted a Customer commodity by coming By tons driven year-over-year in up also construction both and our it services, Landfill X.X%. collection revenues same XX.X% offset volumes back had as online. of with year-over-year basis at in mainly run pricing higher and we're our customers by driven short-lived the up X%, and industrial of and additional customers was this existing new quarter roughly volumes. to landfill recovered it mainly well. of growth were by up XX.X%, October. solutions However, Revenues recycling some higher to And pricing reduced the February, disposal up roughly seasonal as commercial year-over-year processing. said basis in

on or pricing, our $XX.X substantially margins and is mixed adjusted year-over-year, in and pricing. cardboard $X.X a was year-over-year from headwinds. EBITDA up We volumes to given $X.X COVID huge were headwind the quarter, the million XX waste roughly the EBITDA saw COVID. quarter translating adjusted a EBITDA achievement Our million basis million million down average up Adjusted quarter, points. Improving metals solid XX.X% in higher plastics and was the in revenue by offset $X.X up adjusted paper lower commodity ton higher year-over-year, pricing, EBITDA quarter, the per X.X% partially XX% was this in

In had $XXX,XXX specific addition, during COVID roughly quarter. the costs of we

Solid collection down. was waste our quarter, disposals the adjusted EBITDA segments. with Resource $XX.X recycling million improvements $X.X adjusted adjusted EBITDA was in solutions slightly quarter, in the in organic $XXX,XXX EBITDA with year-over-year and up and million up

driven severance $X.X increase higher year-over-year the timing million during year-over-year as the period. up $XXX,XXX quarter And fourth Our and with basis associated percentage $X.X quarter year-over-year cost in due general were but differences costs up to accruals and million of with in down and our XXX the fourth revenues. bonus operations roughly were equity million of points administrative of $X.X by the a

our income a you $XX had a operating be the of majority consolidated allowance X would large unique assets We cumulative income press assets. quarter fourth due million tax carryforwards fiscal on our noted over significant from have realized last of reversal to in had the determine included. release, item As our deferred deferred very our to loss X benefit the the of other valuation our majority given We taxes and future, tax years. net the that may

$XXX.X had and we As debt, $XXX.X of cash XX, of liquidity of of million million. December $XXX.X million

Our XX. at consolidated was defined as netted times ratio, our leverage X.XX credit facility December by

However, net ratio our if debt, X.XX XXX% we was leverage times. of our true against our cash

and through coming and collections our customer created We entered our by flexibility needed. during cash December XX. structure additional capital pandemic, million accounts credit liabilities in the year, our pandemic outstanding XX.X down in position our $XXX.X a on and with results provided X.X execute operating strategy days communications the year-over-year. activities stable great receivable with outstanding operating an changes and at Net during is we We as year. COVID-XX at and grow and us $XX.X a mature we've positive is job by million last against year-over-year, As in from year. and sales assets year-to-date. program. the This days and and was acquisitions investments And allow did was to our this This up John outreach driven improved the our days believe will to higher is efficiently mentioned,

stance as quarter, of that especially last taken recoverability we the have starting are However, now programs mid-term, wind accounts down. stimulus on federal noted a conservative to the

up was accrual debt bad year-over-year. $XXX,XXX Our

Given and we $XX.X payable entire the to vendors, XXXX, bringing we throughout chose by strong payments XX.X% December, positive to down outstanding working of year-over-year. our payroll XXXX, up our capital tax up million flow or CARES days Adjusted year-over-year. management Act in $X cash accelerated days million deferral $XX.X also XX was for free million repair

the of integration at phase during USA And to capital newly we acquired We continue Waste efforts. invest operating the the the to development at planned to operations invest landfill continue expenditures VI synergies in also expansion quarter and landfill. drive in

yesterday As revenues, and guidance adjusted press flow. stated release we estimating cash year for results our adjusted for EBITDA fiscal announced by afternoon, in free XXXX

our release. You can read those in earnings

we in or stable As assume large our economic shutdowns. release, out guidance earnings pointed ranges and our from impacts COVID new a severe no environment

guidance in completed acquisitions XXXX. already XXXX of in X.X% those does early completed from include XXXX revenue Our the rollover growth a and

include does completed. that impact not any acquisitions However, be have to our of the guidance yet

fiscal statement roughly will expect We our tax release fiscal of have some can thing refer you in One our press provision XX% specific as the our note now release is allowance reversal we that you XXXX. guidance given of percentages that valuation press to. in in XXXX, income in tax well

cash are taxes remain in expected our at $X.X million XXXX. approximately to However,

to $X up revenues I'll million G&A year-over-year, be million be to million headwinds, on solutions million resource to million and roughly to mainly it to next of year-over-year, of up of $X million question In we net at we're XX, year-over-year? to years. quite X million bridge, losses the addition, $XXX X us had our which operating we EBITDA And get million simple December we from $X to million year-over-year, $X our disposal $X just looking will adjusted million can to collection is, minimize to new and benefit $X our be help roughly to $X.X scale as taxes remaining Ed. simply G&A our EBITDA at that, And $X acquisitions often $X One expect cash a adjusted we side about pass we acquisitions. expecting the bridge up to for with

Ed Johnson

had Ned, good and year, of a impressed strong and discipline morning, to and management. Thanks, to and finish I the frontline we Operationally, everyone. be continue focus by workers the our

lower costs a I'm team of while solutions business workforce of our testament year, as at resource improved the better during operating at for Our businesses. XXX basis ability to turn work. the revenue landfills last cost and before flex quality the and on the for about hard improved driven points points grateful by of continuing people, and to over extremely was cost XXX the by our basis revenue and than QX ops of to customers pandemic our the and Consolidated year which QX percentage culture price is their in protecting our collection

year, early full extra cost cost reduced improved basis the points. COVID, the and ops revenue For from consolidated XXX of despite

our our have expectations. our I'm where key moving the it margins pricing original metric divisions to culture get year. to succeeded pleased to We that productivity to pro forma Our the increase basis the to and up current in level automation Though acquisitions, companies past overall mentioned tend where have standards. of maturation and our the of operating improved operations, the should time I acquisitions generate XXX contribution improved appropriate the XXX basis prove per all averages points to our our cost takes and are variable to driver collection our XXXX hour, a of couple with full of results dilute which be which is for The transition acquired ops it of in ahead margins in margin the of operation. quarter XX% points the years for out our company for as revenue performed X.X% particularly by year. and by our ability well, over we

with our is frame, but this we time growth continue to to with it pleased our shorten find strategy, we goal As our ways are execution.

Group Our as outstanding QX. had also well year Resource an with and Solutions strong a finished

As you structured of and organization, a the more points basis may this recall, an lower industrial in better results The continue our year major margins segments And cost of fourth and margin through Through Landfill EBITDA ops adjusted COVID XXX by additional account operations volume down. processing to Solutions when between cost. year recycling, despite Tonnage are landfills Group and activities. cost non-processing this past that and consolidated group was even and improved from past, into with challenged out challenge due top the million as reorganizing more of reduced was effective the for year's impressive. expected experience results. contributed on high $X pandemic, are ops, to down is fixed XX.X%. the pointed squeeze I've produce organics, tonnage to to the last quarter,

for significant pretty it's of the basis by ops improved cost XX So the points quarter. percentage that

a trucks compliance. the turn times New compliance All-in-all, and year regulatory showed with high performance standards, the and operational team. landfill the For filter hit facilities ago great by landfills metric a York into the to year, reduced notably for marked our issues, continue their coming landfills improvement full the from improved improved

to now excited and of the and We the opportunities I'd start front turn your forward brief. to new like year it it finished back keep I'll the operator in the into Q&A. So look going to strong year us about the questions. are to

Operator

Sean first from comes KeyBanc Our with [Operator Capital Eastman question Instructions] Markets.

Sean Eastman

on the start to wanted it guidance. just I

end? be of you're made quo reflected backdrop. is X% sort sort we status guys lack thereof? of or wide reopening thinking clear about in it within some how kind of assuming to But that the you building it you're volume range is just range given should of X.X%, of there macro fairly sort terms How the high in the reopening at the So

John Casella

other Yes. think ago, this of I it's environment, a from say trend, right, as through saw So It's bit nice -- an we October, this right? everyone I said really while would late we direction unknown, things back now services late owners as bit a in then we're May early -- in where into And customers into December. November and we in into business saw February, saw actually where we and a reduce were go we to industrial right October.

that we a vaccine than slow bit is areas. the know. So We're just a rollout the we're appears positive. I our news, little typically making we be to of many across of very But think do excited because but range wider about a don't all market

markets been And year of customers have declines to probably have have, in do secondary, New quite the we is We metropolitan something bring larger really have yes, who been don't we some York from landfills out the the City, rural volumes the impacts pointed in areas. weathered have haul fiscal the last to slowest but in recover more city, economic storm well. probably some we to-date. and But impacts. a we our And that's waste and our major us waste

Sean Eastman

you. right. always EBITDA And Got Ned. is That's Okay. the All bridge helpful, helpful. dollar

margin from XX points as implies that. guidance perspective, But it appreciate look expansion. I a basis at So we the of

messaged in pieces? expectations, the interesting parse of the perspective out preliminary think margin consistent from element any there last expansion with quarter. of is that's there I moving terms But you a sort to other

John Casella

not to There's it. lot really a more

help. it, we improvements operating here, our some ways. we roll some and tell about we of points are this lose expect we sliced as as margins points core that, XXX year, T&E, like And margin about are asked like from on headwinds get outpacing of patterns basis optimization, back COVID-specific the our were with into in to key COVID XXXX? we help trucks we from best of like things you of we margins, advance inflation pieces you of to bunch often, And things year. in there at pricing initiatives something carry into when And can we of other a we expect feel programs look we that different had Or XXXX, basis coming the the them? you what margins there's XXX that our route had things going margins, And to a from and into quite issues of we've were COVID expanding to overtime, moving are automation is had dynamic like in lot look think on will and core I COVID next healthcare, of XXXX. programs and and

Sean Eastman

Got it.

you programs those we much drilling the just on systems expansion sort in of think of basis How importantly, how tank And maybe maybe those of XXXX? much enhancements. as left is points XXX on sort more So think juice go-forward? drove? of the in those the in Do about

Ned Coletta

‘XX. did we we of first of automation a of automation in And quite second during XXXX. quarter place half So have taking the bit the more

a much to it's chunk a as was But that, least was margin improvement of So from at margin X/X of to improvement related the of guess that that. good how that.

John Casella

residential today. And fleet, our about XX% XX%, XX% is of automated

go. So long to way it's a

We have opportunity. a lot of

Operator

from Stifel. comes question Michael with next Our Hoffman

Michael Hoffman

be disposal you landfill, how coming out assets, would closing -- or you How do able drive of on pricing? transfer layer to stations sort the The New would if would another your XXX,XXX be prognosticate, impact of you assets and Haven. tons MIRA of the to

John Casella

that's XXXX. happen to that, going are indications the that think I in

I to the to of probably permitting will be other we that could are from process well additional going another necessary think couple obviously, through need you questionable -- of -- of permitting standpoint future think tons in in terms issue there's instead Michael. that we're a it's the addition positioned. year going time And It point doing the to our Northeast. being that an demand are as terms to really it's capacity future. to McKean There with McKean. other terms is a in do We the in believe into know, imbalance, really really process in But more and I in bring at that We're -- work in think supply MIRA. need option it's activity go And be that operate we XXX,XXX of on. the that is the that at to view questionable facilities I construction. be in this whether they're of permitting

think the going that see kind said see well going I next the terms for for we're to of our X So we're to should in X of dynamics we bode before, the same this to years assets. which in the Northeast imbalance,

Michael Hoffman

So a and to is disposal to try for price X% a it reasonable model X% increase on while?

Joseph Fusco

anything as higher getting issues these pattern. But know, returns are invested assets, where capital and need we're capital extremely regulatory drive intensive, sites. each don't environmental the greater, still in We at compliance that the on these are place we see and disrupts you to that of

disrupts So don't see game that that's and plan, anything our it. we

Michael Hoffman

these interchange X it's I can't I'm or Hakes. to that remember Hyland then going names, And Okay.

on meaningful a You've through got community the vote increase. pretty came

John Casella

It was Hyland.

Michael Hoffman

Hyland.

John Casella

Yes.

Michael Hoffman

how is that on Well, [DEP] the the part? progress of

John Casella

I that well, is progress think that, Michael. going

well. view, getting the won with as basis select unanimous the we project we community I And in the the positive then to in and in very think community, biggest our through move the board. forward had hurdle, vote a the from referendum a obviously, was

additional significant will from facility the and development acreage. tons in X to go capability XXX,XXX terms tons of we million a that to very a So have have year,

what acres, So just I is we'll think another? it’s -- XXX -- it have another

Ed Johnson

acres. XXX

John Casella

capacity. of acres approvable potentially Yes, XXX

years. So to will it we're today. at And there lot higher much a going be be a that is performing than of level facility for

Michael Hoffman

Okay.

guidance, You interval your service about mentioned assumption were underlying service that what's intervals the sequentially. pattern? your Ned, positive In

Ned Coletta

Yes.

a overall XXXX. we so impacts expect -- company COVID a meaningful we down bit in a didn't volumes as be QX QX say, have because do to in So 'XX of

the a to getting into from of getting kind slightly the However, quarter. And to XX% then COVID and we through positive recovery. recovery second modeled we've first quarter expect moderate

we've on once collection in the a volumes in the long that as roughly to in well. to on the and to that a wide will come $XX remainder million range it little landfill And I don't will $X take. that XX% guess when pathway as back revenues. coming we as think So $X that side. because see good some spoke the back again, we put is million business that's bit lost or is COVID, ours The And of of John million that roll-off a just like of your collection of how early

Michael Hoffman

Okay.

that's disposal -- on that So economy, goes if out all the finally guidance. York upside to and base showing it's volume -- up. starts their New ought depending up the upside wakes all probably That's third-party the at restart opportunity they that New realize coming to of like lower York to to

Ned Coletta

part upside. It's -- of this a

up there what's So a range we do ranging? have our Jason,

Jason Mead

The waste midpoint of our is solid volume guidance year-over-year X.XX%.

Ned Coletta

X.XX%.

Our range was X% to X.X%.

Michael, and it's of additional So some upper then of that's upside. end, some the towards

Michael Hoffman

the somewhere And line you longer then for remediation, have million, then like the is the the when -- I want closing cash of that going finalize the chunky million, to sight big and capital helps. having that to $XXX about talk where instance, through conversations adjustments right. All what's flow else? statement for no That sure $XX spending, Waste USA., Okay. $XX make to Southbridge is in just that million about

Ned Coletta

Southbridge So liabilities. of the statement is of It flows. a reduction going through be will cash short-term

now, have capital that we down we done Southbridge been complete the things plan but won't liability. XX-year it's some tough expect is road of are we will in to working be the to forward. regulators. work outside a our going XXXX, development in about $XX capital development million out site will substantially XX% this and there of XX% complete year. to Right It's that say, that And it that year, to a complete call our Way control. the project, and to about closure this hit with of So as to we negative

Michael Hoffman

about and long-term thinking place? take can pull into next being starting as things million So out modeling, a just $XXX modeling million I year, $XX it, equal all of

Ned Coletta

Yes.

Michael Hoffman

being else $XX as flow then from equal? ops And is cash a million all better place, the starting

Ned Coletta

always project. don't see or activities. Southbridge nothing that's I routine, We there's closure like Yes. major the but any mean capping some

Michael Hoffman

spent for Okay. is And that to million to deals in $XX the million you're the having CapEx per recapitalize you old, related What's basis container statement. about that then the the M&A? that that's of on were the flow fleet. old trucks basically the whole mean, $XX cash I

And here price $XX purchase the was spot? so million for the revenue real

Ned Coletta

of related completed bit XXXX. to we acquisitions in a Quite that late was

acquisition putting we to so about basket. the XX into all to our that And them the we enhancements of year for look of after fleet, matters, months we're those a completed integration,

to get XXXX. it you XX really And furthermore, So know, right in dropped it to wasn't Michael, you if order. assets an XX now it takes all to months place as related

those and some of earlier assets upwards plans of year So motion arrived in a the XXXX. into were put

Michael Hoffman

Okay. $XXX you about standpoint, talked out you've million And active of $XXX there's about the had M&A dialogue million that. of four of then of recently lastly, sort pipeline

So sense have I million feel what timings? of we $XX guidance, got of active the probability and just a I looking it's at. of pipeline. your we're in not for What's less but get close And so

John Casella

the Michael, think a of a good portion be the still of will in I the that, think obviously, works. in of half good year. second portion And that I

Operator

Tyler James. from Our with next comes question Brown Raymond

Tyler Brown

honest, lot a be to answered. have my been of questions got I

bigger markets? seeing of in Do question. a XX% of this believe maybe that But said in You trend stuff transitory? have tough deurbanization that bit I subscription be pickup there do is Or to in just one Ned, I it real the guys a do quite thought that in talked something conceptual think there's Northeast you revenue a secondary point. resi your a But you Or answer market your maybe are afoot? is rural is you those that at guys about here. you rural or markets. may have And

Ned Coletta

hard a the ski a can time. characterize the in at but time, really entire characterize It's is is hasn't property in around real at Northeast, the in over estate that of areas, movement this areas, point the moved vacation point that decade think sold there's to all around afoot. particularly be able that early. this to say something in what To is little Tyler, I But correctly, bit no we there question it's

there real a a impacting to activity think from the see that, still lot is volumes. So standpoint, it's significant estate able early. estate a and is movement from it, a it's of little feel a standpoint there's characterize perspective But positively be there we is to that real that which little supports But that -- can certainly, I movement.

Tyler Brown

that Yes. interesting. day, some seems well disposal quite picture, might doing But question in I recall, Marcellus. Was definitely back if bit maybe bigger No, silly then as of guess. E&P And be in the you a a this right? activities I were the or

John Casella

yes. correct, That's

Tyler Brown

prices have gas on been move. So the

seen thoughts peaking happen just any if curious, I opportunity, broad any you you now. have know seen But Do anything an activity. think don't are they're there? I if I $X there. I'm just there? over you've rigs think repositioning don't know that's

John Casella

in, that in headwind in Yes. last to come It's we definitely a to and not back or was it XXXX, forecasted is been year, activity the than us XXXX. of dramatically XXXX, and any for lower budgeted have

be of revenues. some it's positive. to activity McKean. of our could dollars we're huge not millions additional dollars, point, So and there a positive your It like there, talking is primarily it it's tens business of if of never been has like millions of But part a

Operator

Instructions]. [Operator

from Mazari comes question next Our with Jefferies. Hamzah

Hamzah Mazari

for difference I on, price of guess, relief range? low anything pricing. on of disposal end the pricing end customers on going or a high question side commercial sort the Is the between and just to that that equates just the

Ned Coletta

the February, a pricing Yes. In don't -- know. year. and of just we our December, It's time of always this January, lot get rolling you

pricing certainty and have see some could market rollback. how I we you we a pricing. programs, of think in certainty our our run our in lot analysis of a But lot

The ranges to I we So every positive. been a sure with cost, lot there's incremental then the disruption There’s the mean, encompass in that. make with of COVID labor has waste we've and the you just seen market year-to-date elements and We've create market. volumes activity we the just collar. stability as marketplace. inflationary that's to lower Northeastern good know, And why seen in

the Our changes pricing they environment. where those need programs to to are in overcome be

why ranges confident, for have we do So but feel pretty we the that's the year.

Hamzah Mazari

And margin in bps, about saw I Got costs plus, and you guess, then you. expansion, variable XXXX. talked you flexing down XXX just

to margins, that for incremental on today? the think about thoughts business any Just how

John Casella

Do you that want Ed? on to in hop

Ed Johnson

Yes.

out it's pounds or pretty even significant little and think trying but lower a last yard side. offset either year the positive by Ned been well see this a had for improvement. per tons how as I a ahead the side, as there's looking of we that, years we we're resi COVID disposal cost pickup we've on it And as was much per effect, dig or on mean though So negative year, into after, almost evaluate wash. we to margin pointed the a commercial higher I

has So of the lot margin and has continue initiatives. improvement a been, with those operational we our initiatives, what been

we that the to margin. improve confident pretty can we're So continue

I think in. basis had think we XX I we said we -- have points

Ned Coletta

business, Yes. side technology on on HR hit, of believe our some year-over-year. thought to but the investing and when in or very a we important very mid-term over G&A revenue areas our clearly, not it an notice shareholders on down side, several well we and was next in percentage sat that, us programs. those that be whether the up very interesting we're And cut position the and point, And the you COVID did years, we tacking that strategic it's did this as through

scale we're margin. area, some we're optimization We operating back is our definitely continue little areas of another in hours. and we in we out to some see as taking it's grow on revenues route software on But those getting to actually a we the going as side, invest, those some a other Hamzah, invested more the lost ground, on and like dynamic G&A, new from impact back operating bit to roll investments so some we that gain areas, COVID real improvements to accelerate of having translating we

Operator

Thank And over any John I call like further you. further the I'm for to would time. to turn remarks. not showing at any this Casella back questions now

John Casella

your morning. for attention everyone, Thanks, this

executing our XXXX, announced August key this XXXX we our guidance, strategies. In our achieved plan in we've to early. we're year X well say XXXX against really reflected results As and XXXX plan. proud I'm

Thanks, such, this everybody. forward with in update discussing first us year. our As the our look of everybody, quarter day. developing for we process in you later plan, provide great joining to to forward We morning. look a Thanks, the and XXXX Have late XXXX we're earnings April. in an

Operator

you Ladies gentlemen, and conference you. Thank this today's participating. for Thank concludes call.

may disconnect. You now

Casella Waste Systems (CWST) 19 Feb 212020 Q4 Earnings call transcript