Earnings call transcript Q1 2023

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Operator

Good day. And thank you for standing by. Welcome to the Casella Waste Systems, Incorporated's First Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator

go the now Director to Please like would conference of sir. to Relations. Wohlhuter, I Charlie hand over today, your Investor ahead, speaker

Charlie Wohlhuter

With and of our and Chief thank Treasurer; Financial President Finance Steves, Chairman for this John Thank you, Senior Systems; Senior of Vice us Executive Ned and you, are Officer Norma, today Chief and Mead, Vice Waste our joining President Officer; everyone, and of Sean us Jason morning. Casella Operating Chief and Solid our Casella, Coletta, operations. Waste President Officer

various an we These on I and activities provisions Reform statements environment, our we results Today with future XXXX. the plans XXXX we results. and yesterday that questions, prospects the business Act of answering but your Safe make will released everyone purposes company's fourth forward-looking and remarks afternoon. Along Securities first, Litigation about quarter the the of Private the expectations, discussing update be were that review a company's constitute full-year of will brief remind may be and under results for those Harbor

result indicated including Factors may is file from results materially on XX-K, as important report our Form most these of with SEC. those which section on various those differ statements forward-looking a discussed Actual in Risk the of factors, by the recent annual

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

future, our of we relied should to These any update upon forward-looking our forward-looking be statements statements While any to some do as views we in if obligation at to disclaim today. subsequent as representing may the change. point date views specifically not so even elect

in the directly non-GAAP will Reconciliation measures, to comparable measures referring to Accepted extent slide with are the non-GAAP These at measures they we the & financial unreasonable most Presentations. are Events our not the financial this effort, our Principles. in of ir.casella.com, without which Investor during non-GAAP are the measures. available presentation, accordance call, of available prepared in available to Generally site Also be Accounting heading section to is Web under the appendix Investors GAAP

I that, over begin today's who with will now And John Casella, it to turn discussion. will

John Casella

Thanks, week Charlie, and acquisition first everyone, our again year of call. operations announcement this quarter We're results pending for select the begin thanks markets. exciting good very strong XXXX on conference morning, share the to adjacent joining for and and happy you the earlier solid this morning waste our to from with us in

our our the We platform to are forward opportunity and business we further to value. grow look executing well from against our continued strategies shareholder growth expanding key drive to

on into the some point our while go this will financials. views discussing I'd to the Ned company provide The to opportunity strategic the great quarter like into continue the future. to Northeast focal for to expand with continues Before results, announcement be

from, solutions have to waste introduce we solid Maryland grew to meaningful in new our GFL's mid-XXXX, geographic through Pennsylvania, pending and in done integrating. disciplined a We to in to scale resource management growth Delaware acquisition our job continued recognize our nice operations Connecticut The execution where grow provides the of requires our including customers. ability our also expand manner. well of acquisition existing and we're plan region an footprint a performing us In the

tied furthers residential mix collection facility, subscription business the GFL nine operations to an very This business that construction and and ability X% C&D acquire customers. our are fit approximately Further, X% to mitigation our helps down activity. of intend concentration these remain from consolidated pricing carries we perspective, a recycling operations, demolition exposure Across estimate exposure. to operations operating, and collection the and to commercial to This the the transfer high cycle actually low a markets nimble station to economic profile risk given our blend well. of and we

have knowledge with the these members and In that talented business, their several markets. careers deep through have we experience team operations addition to and

to This provides and to to successful welcoming these the of which only confidence that delivering related forward a will members combination We our integration. us look support believe shareholder term our transaction. continue added service customers this to risk of and communities mitigation, with will as providing the after and to new we our value. We team in degree ability factors result new transaction help long close excellent high

performance on into quarter. the in our moving Now,

over release, basis. waste The reported into strong solid year-over-year quarter press by results As the a to EBITDA adjusted XX% operations yesterday's XX% start we our us by a put year. on have grew over from position and the in revenues

our XXX waste for the solid true team inflationary period. through fact, manage EBITDA This In the a year-over-year points basis adjusted of testament to expanded margins to over is an perseverance quarter.

route investment continued drive coupled terms the and fleet reducing into improving are cost his continue strides team helped safety to focused initiatives, automation, make pricing computers in onboard increased Sean of of improvements. delivering great Our implementation to optimization, conversions, our overall and with programs, in operations. performance Ongoing quarter. operating efficiencies

our program levels start solid recovery is floating budgeted our strong waste Likewise, perspective, pricing expenses. cost to price fuel a year volatility is in up ahead X.X%. persistent offsetting off related given fee fuel with of From fully inflation a the

floating our our risk have to said, quarter of will through balance still improved that the first within strategies, commodity down benefit as last our expected. from presented late mitigation execution financial for optimistic significantly year. fee, from the efforts are negative prices a we year, the modestly performance XXXX they're and headwind consolidated first such impact. the Overall, quarter limit of That recycling our the While have we helped as SRA

assets facilities strategies and. focus performance landfill of a on the our permitting as for And of year-over-year provide costs. price we our items our waste the and key regulatory and to inflation, operations operating important landfills Reported including related initiatives. cost operations. XX.X% element recent to the have I'll capital remain increased is our disposal brief higher and we on offsetting focused increasing at returns solid our An through programs

As discussed fourth in There moderation during call, landfills, experienced quarter at timing January decline year. XXXX January. slight volumes being levels yearend to from our we our shift volume than XXXX a by with in tonnages in in start earnings a the activity February has been more offset

solid permits the respect team and However, I'm recently first and permits and is to have Sam positive our his in our volume project. We share XXXX. at final to all all can of we rail reported of to McKean required online With received that received permitting, the for spring underway towards that project with site of anticipated the attention quarter. infrastructure development turn now the growth in come operations pleased fact offload rail waste our our in building

imbalance and needs exciting all to disposal of certainty given by supply It's with Northeast. rail organic at to the of have well operation to activity providing ability demand disposal outlet opportunities, safe, their by future the increases our a and growth approximately development waste accept of meet compliant is in McKean larger helping our serve of capacity pipeline. drive permitting increased to in customers ability from The be positioned our will secure projects our one the served internalization to further term near the It and standpoint. our rail

I is his a as infrastructure on behind that have we of online I time to bring facility forward done the of As and through as the the getting and said Sam construction spring that to said XXXX. job team terrific expected, process look of in

and a a level to operation result and we're agility our the costs that Sean On investments, optimization the and of about out are focus and is much solid are driving onboard our results pricing high operations operational and automated is ahead return our collection computers. XX% driven trucks year-over-year. at technology. increase of capabilities addressable onboard the and strength improved collection across side our further his of business trucks, our discipline. of waste This automated the reducing of cost by like inflation making with fleet executing route of route XX% of investments through safety use business, to collection Today, enhancing cost equipped of team stay in direct disposal initiatives team

Next at in fee financial the been Resource in to commitment promotes stewardship, the we model business has our we which have impact of great and our Solutions, quarters. features and the Recycling greatly for in this pride take our through core risk expect decades. subside environmental SRA mitigating contracts coming limited our provide. we fortunately, company will the services And other

resource invest to to in our continue from We demand customers. help fulfill offerings management

and is Our approach economic environmental balance. ensure to

in safer operating by operational product, excited throughput, we on enhance of at our that are of again which midyear. environment. a new We great recycling recycling it quality and time, I installing a result is have slated up improve is expect Really is our increase that equipment in operational technology budget on an currently the MRF, volume to be efficiencies, process the and This project investment as will mid-year, Boston example of to said. end operating and

to I'd highlight growth finally, And strategy. capital like our allocation and

addressable over Our annualized acquisition revenues market footprint. the $XXX with million of pipeline and current of opportunities just Northeast about robust top remains our

MRF, the for of market term platform time. As operations meet pipeline long-term the in our Mid-Atlantic recycling pending which waste Boston of our and and runway identified services value. from which diligent drive of the will by this organic waste to we criteria we the the shareholder throughput over inorganic development that rail our we nature of part pipeline. doubled have these This from of our can solid from with nice current GFL, process projects size build highlights return see related growth increased acquisition that opportunities Together operations McKean our project near at at nearly

I'll financials. walk turn to over through that, with it the Ned to And

Ned Coletta

and were Thanks, year-over-year in XX.X% with $XX.X growth. or driven by activity change good up John, X.X% year-over-year the the $XXX.X of up Revenues everyone. year-over-year, from first million, quarter X.X% and change of organic acquisition the million morning,

with acquisition up slightly X.X%. were price X.X% were up our fees growth recovery up. of fuel X.X%, just and revenues year-over-year, cost other waste and up Volumes Solid XX.X%

XX.X% up a were X.X%. X.X% up slightly line collection and and with were volumes up was volume X.X% price in up up in Revenues XX.X% price down. business with year-over-year, pricing year-over-year, disposal of year-over-year. of XX.X% Revenues Landfill the business line up

with Commodity from X.X% growth, XX% X% X.X% roughly were lower prices revenues from price other metals growth Solutions cardboard and lower year-over-year pricing, commodity acquisitions, were Resource plastics paper and by growth much volume X.X% processing year-over-year pricing. offset lower mixed on up fees down lower and Our prices.

million you the XXXX. of December year, Commodity in April roughly XX% prices hit commodity remainder declined remember, the have low hitting prices may through high in and multiyear XXXX As a of point a rebounded $X.X million or Adjusted from by year-over-year, March. XX% growth, over million with our the in EBITDA the $X.X XX.X% up in driven December improvements base sequentially $XX.X through business. was quarter, of

of million major with Solid waste was in million Adjusted quarter, EBITDA strength the driven $X.X and with the both lower Resource $X.X down solutions lines was three adjusted year-over-year, by adjusted $X.X performance in million year-over-year, in EBITDA million commodity prices. down million disposal the business. was due quarter, collection $XX.X negative EBITDA $XX.X up factors. to

and EBITDA adjusted to high allow our John risk quarter lower were the mitigating back was down are well other at as not recycle was implemented year-over-year Adjusted accounted in Unfortunately, not retrofit $X.X EBITDA are shut that for technology drop of transload offset commodities. most begin to as mentioned, had significant upgrade. programs the customers. Boston the volumes Revenues planned our XX% legacy do acquired newly to during the costs These we a we full decline for as to completed As of the facility commodity several down as commodity from markets volumes markets facilities. these were risk MRF had prices. we that pass programs displaced million actually in fully to us contracts working

margins Solutions year-over-year severe lower And the better our EBITDA the was points business industrial EBITDA work and was In XX.X%. adjusted for costs the capacity project adjusted for to and the of given basis XX finally, $X.X quarter, million disposal down That due remainder were across constraints plan. down biosolids Resource customers. higher than

waste Solid XXX quarter, were points up margins year-over-year. the basis XX.X% in

quarter headwind a by the the margin a a inflation efficiencies, of Our price an headwind operating bridging basis a point pricing XX again a as performance, X.X%, X.X% XX the solid items improvement Further revenues waste solid from and up and MRF recycling landfill from percentage point commodity volumes programs basis gas the headwind covered headwind offset from basis shutdown, waste basis headwind basis point point XX to in cost acquisition of excluding XX from lower point roughly a inflation fuel. included from Boston from energy total XX higher prices. with

in of $X.X fee G&A costs the down the extremely conservative percentage recovery well increases over basis or fully a up recovering a fuel as worked percentage the fuel with in to operations million up Cost a recapturing were or Our in points was a as quarter, as million $XX.X margin. of quarter of XX and year-over-year revenues. methodology the percentage the increase the up driving in basis debt bad of XX more change of revenue, points revenues. half quarter

mainly amortization amortization were a on driven and costs and mix landfill year-over-year, by higher Depreciation higher $X up million shift. volumes

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

was rates X.X%, debt. rate hit leverage net interest low all-time on ratio our of had interest consolidated approximately at Our our cash we and fixed X.XXx, XX% an approximately average

and started cash at a differences expected, with call, timing light working our discussed up million, and of fourth adjusted on million only flow quarter capital $X earnings variance. As capital year $X.X the driving expenditures year-over-year free much our

stepped cash in our to cash higher year full is slipped capital $XXX state We off third the related level and payables guidance the adjusted expect million as negative flow XXXX free first main the quarters, roughly to and taxes difference into budget. resolve range fourth bonuses where $X timing rolled accrued in of $X.X of the variances $X $XXX million million as timing operating XXXX. million a of compared higher we flows as to roughly state from confident as higher quarter of cash in the quarter, and the are started expenditures our second March to million of period ahead $X million year we results NOLs hitting has to taxes cash The to out paid

guidance continued on been the for Environmental. not the XXXX. programs, pending and start for updated select fiscal pricing have strong ranges Given our and operations to operating GFL we The reaffirmed ranges visibility guidance XXXX our of acquisition have from

update we'll guidance any our completing always, As after acquisitions.

As recycling in about transfer and acquisition John from Pennsylvania, Delaware excited and of GFL. mentioned, we very operations pending Maryland the collection, are

Monday great we believe in a release this announced our morning, press As fit. on that strategic acquisition is

We months million the within of incremental expect landfill the to first and $X expect of operations. operations $XX $XXX under internalization this And facility cash and and to Term million we efficiencies. release, A EBITDA transaction borrowing press $XXX we approximately over multiyear a million of benefits generate revenues through three structure the pay to automation acquired of synergies acquisition XX savings fleet expect of of generate revolving from great through to credit combination million Further, roughly and years tax as this new on plan in We yield in for Loan we a annual mentioned a of period. planned cash our is and over hand,

senior secured facility. existing credit our

third to transaction by the quarter. the expect We close

to a employees continued take of as to months thank and the on welcoming coming forward during to we help integration to John for diligence their forward help service their also provide in work team process moment to look to planning. the all customers great the look we and collaboratively new team and our I'd said like GFL we in the the Mid-Atlantic. opportunity the GFL

for operator questions. love I'd to to Thank that, turn back the with it And you.

Operator

Instructions] [Operator

with first from question our Jefferies. Stephanie comes the of line Moore And

Stephanie Moore

I your an market. And Thank your prioritize touch region. noted morning. so that these M&A the assets addressable for and market think factors the in acquisitions more assuming wanted this standpoint. Good Mid-Atlantic how and new to I assets almost wanted so, in be Hi. markets you. doubles some question. the GFL total these from you think of more legacy you those to will in expanding post Northeast pending further then markets. deals what close, I on more you'll about the for of Thank determining this And

Ned Coletta

Sure.

planning Luckily for adjacent strategic we've our and identified acquisition business small we for takes we in look look we ago, markets us, pipeline to build opportunity. for And years building want a doing for these owners through business opportunity. relationships years our been several had with So, to Accounts markets that we over into the and quite these relationships. years got we've deep businesses. Group, a of couple operating have and buying our team a bit Furthermore, National spent couple businesses hires of a many of years great lot last of in time we markets, as

acquisition looking then efforts tuck-in over this sales developed for great well the So But acquisitions. our opportunity platform through and region year a plus. us platform also great to has have pipeline last to and a densify is across the

specific So on focus as energy, continue question both. will your we we we to to energy focus of where look

John pipeline integration and As to or pipeline good really shifting platform both. there other. drive also be in Mid-Atlantic, value. opportunities balance We're always and will said, in a vertical effort we've the and to great the not one synergy just across and excellent acquisition got We're a Northeast that the working

John Casella

I think a identifying that in year business for GFL a prior a important we Mid-Atlantic, about in development building look the to to the also opportunities, that to platform terms at of working the Yes. opportunities opportunity it's assets. from know having were standpoint, there

So at looking in opportunities. that that we market team place a in was had

in So well, adjacent we XXXX, Connecticut, and to out it's a markets. extremely for the in us. we said as that the gone well complement real that's had we yes, into to with just And work started stepped do XXXX step earlier, Connecticut as

to to across represents the Northeast. that another great it just entire So us for grow platform continue

Stephanie Moore

of discuss maybe you what quarter And maybe volumes up, gears thoughts performance you C&D slowdown and in or maybe your in you're just a volume seeing business. to switching maybe to standpoint macro get your was you. Would follow Thank Thank as love more could throughout the from Great. there. a move any hoping as and then you.

John Casella

little think a the on we see nothing in saw that the little of the bit lowest for we in in we're months but activity that year bit of softness balance, gives the the end any the of in Keep year, first I pause. quarter. activity mind, but us a at us of Northeast

we any from time the standpoint, that little we up a in standpoint. point us really anything a volume see balance, gives this volume on a don't bit first So, pause from at quarter, so were

Ned Coletta

decade, had have over demo, revenues business business. back in XX%. of XXXX, John, the we construction about of it last mentioned even range. we our in line about of XX% you the we collection lower book or derived X% of from or And, we're to And with Yes. our Today, very re-blended the they're And flash consciously, select as be whether transfer the GFL if They're landfills. earlier, us. than operations, about acquisition and

John Casella

Understand, overall.

Ned Coletta

down overall. Yes. slightly But it

So the course, that's sensitive company, most is of construction, demo, really any economically part activity. of waste

the and what quarter, you know of month in the and February true through had month really little the have weakness a before And metrics ups you strong March. we spring we the of unfold today. but Northeast, with in said, As month let always decent ended We in nothing January. some significant to John in first the trend is, December, downs, a December had the

Operator

Tyler the next question our with And of Raymond comes line James. from Brown

Tyler Brown

morning, guys. good Hey,

I've to margin got Okay, I over go bridge, if back Ned, the could.

But negative add from XX were from that and XX said if from XX all margins XX. XXX, for that's down you from gas, basis think points XXX, landfill XX I up, volume, only negative negative and M&A, So Boston, negative XX commodities. you negative

circa you're margins here, lot were say? of Is what basis a to math say, that sorry, core So trying XXX up, points? but

Ned Coletta

because points. here. actually Yes, that's adding sorry. just up, mistake should right? I'm up down I'm a myself not add basis that I'm XX sure Yes, if there's

the it you due to So XX take was basis price, price solid if in of waste volume. X.X% plus points consolidation, higher expansion margin

So XX, basis X.X% X.X, down less less XX XX plus XX, That's points, basis points. XX. less less

like of that. Boston MRF shutdown, these that look the hit items us, if definitely done we're So you almost some at with

so. of lasts lot correct something that inflation continue business, we again. getting into future. higher you not of of course and the flexibility it's to ahead a to know, definitely move do we in And as book inflation, as if have our price well We're starts So to

Tyler Brown

the soon. of Boston kind all Okay, But away goes drag right.

Ned Coletta

Yes.

come of quarter we're that So operating a expect once to better due expect and back one about $X.X and We're performance to dollars two more technology people. operating some XX% lot investing at MRF we about lower Boston capital million million work higher better robotics online, the and with complete less half efficiencies. here throughput for of to a results $X retrofit. using XX% both we as to about and do at a And we we

a area. has in for So the greater in sustainability desires and investment growth it's great market that long lot a really opportunity of term Boston a a

Tyler Brown

then detailed And the and perfect. is, has year-over-year. surcharge Okay, this flattened I mean, or fuel is was about but a kind been again, model quarter kind the out third that in the question other big. this IRG a fourth of pretty to row contribution of

a lag do going something surcharge Or implementation, what's So kind fuel that I'm Is there I maybe how there? there is should. on is on or about there missing? is something, we there or think that of

Ned Coletta

bit a line of our contains SRA you know. there's as a but lag, also fee, that Yes,

for fee been but historically Tyler, to the probably has been Jason have down, you mix up a SRA there, And the rate surcharges can get our low due countervailing fuel the going coming as behind that's trend see So prices. scenes. you, commodity

Tyler Brown

with That explain that Jason offline it. Okay, that. on very helpful. is I'll get will

as Okay. maybe that could On on price really call good weren't one you circa last I was it a pricing, guys here. as others that quite I know guess there acceleration year. argue aggressive

do when you see in do this the high that well? some So about think think as QX or acceleration pricing, we actually you we think is QX watermark,

Ned Coletta

the gates - out probably in Where little and should if have, hit in the course QX, in we a a work our today, identified market got higher look lot at last And a lower time did we bit with a January business of of a February year, So than early really with bit timeline. to XXXX, little frame. analytical late QX. late increases sit the in higher high you we price and we of we corrected bit we trend, we point a in inflation and June came round second price the

inflation click expect and to come shouldn't that one again to that increases. we we'll You then where pretty getting especially all unless to landfills up the continues and back additional make market pricing caveat trends be items, see is we're inflation continue with at to climb the high, capital sure that that and marketplace. across stat look we'll see price The that inflation back to to

Tyler Brown

of then question the this in helpful. just cost that's is what embedded And but curious, mostly across Okay, because I've asking kind today? inflation current unit the been the board, guide just I'm

Ned Coletta

Yes.

see. Jason, your that, got up head? know of I to top right the Let's Do model. pull you

Jason Mead

I do. Tyler. Hey,

expectations, core X%. and closer ex of year-over-year half fuel to our year, year, across So back and of our first at inflation half business, the the X.X% the about

on X.XX% year. about blending So

Ned Coletta

in it Okay. X.X% close, We're be would pretty QX.

Tyler Brown

Yes.

on GFL Perfect Okay. the assets.

a why am maybe now, So camouflage on in looking you map, But some view. to gave great meets much new this as there's very my the call it. I I than color deal, more your lot eye, to forward

tax cash from you you us then it. and of talk just you longer can can about are term? this perspective, benefits understand cash tax a hit this deal? shielding exclusive how where from deal, this adds But You the And payment value on help

Ned Coletta

Yes.

the used federal taxes. to a now state for had offset at roughly we've down are federal operating we've and state of the NOLs, $XX level. of we know, And to effectively and shareholders having of that most years don't lot as our think, benefit many we have million net cash I losses So

always cash a in there manner three great LLCs acquisition a here treated been bought we And asset buy will into was structure. we optimizes acquisitions deal of like to disregarded the position. slightly get opportunity units an operating higher that that tax from much we've entity were stepping standpoint. an tax So And try because a

to great basis So a step we're able tax up. get

also intangible. amortization law, of by get tax and you depreciation course, Of

So helps acquiring gives cash value code. a offset tax businesses years. actually a to part create opportunity one it great the some growing. it's year are really taxes us and companies XX It of to in through And great as and

Tyler Brown

Yes.

Okay. That's super helpful.

So of lot opportunities. right it's that to you doubles if a kind you just that. this. the platform this on proverbial of to I tail new new mentioned will, new you back M&A tam, on up a M&A. double John, opens this that I long want platform hear

John Casella

I said, think the there team along been Pennsylvania, I business the standpoint as opportunities with Tyler, a that's looking at from working development fair, opportunity had in GFL. before

So I the exactly It's we're standpoint. about an to from very acquisition opportunities close double think just right.

Tyler Brown

Okay, perfect.

quick. one last Okay, my here real

John Casella

to for clearly significant a need future. got It work We've months. significant effectively. the very term, quickly, done, be will in lot gives a us from do time. XX But that Mid-Atlantic to next we've And a growth be from the another going out us Obviously, standpoint an platform integration into from of growth opportunity X of got that perspective over right, standpoint. We front to the now. get will done get that that in long

exciting. very So

Tyler Brown

as Okay, cross Resource maybe all--? that in part here, Is Solutions of that the one million great. that $X just last benefit. synergies the selling you would mentioned be of And or

John Casella

all No, not. looking That you sustainability to at customers solutions it's No, when opportunity We not a providing and know colleges industrial customers. that solutions providing all. is those their municipalities, universities, meet can providing partners think them that goals. for great to solutions about help to are

terrific will be entire to those customer provide standpoint organic an opportunities So services have to growth team our base. Resource able entire from across that Solutions

Operator

from comes question the Next line of Michael Stifel. with Hoffman

Michael Hoffman

as look thinking business got whiteboard somewhere be out up years, be there thought, $XXX I'd John, EBITDA, to in all I know Hey, See a like? I by million where everybody. in you out. ,XX that laid Good you look million, there's if morning. this what's Rutland five through

John Casella

going very It's be, how difficult to good predict Michael. it's to

believe bit we've I there's think think a Tyler market. there. And entire his very got to that book it tremendous question that significantly is. grow terrific a little in obviously on I really opportunity very created business on of value that comfortable Resource We with we that hit There of feel Solutions. amount to be

to So think portfolio We don't the And the But and really have feed it's of have of out assets as likely future just significant I development business be also it's obviously it a McKean like to and opportunity. very in how could standpoint, significantly of that a haven't obviously stations, standpoint. a exciting. ability great that entire exciting. an transfer disposal available think that There's we that both certainly performed opportunity a very grow. to terms also understanding we us, from there's looks sense from it's what opportunities, to

Michael Hoffman

so could well, only on XX% unrealistic let five push CAGR. think little if I can it that a in million That's to $XX years? Is a bit. double Okay, that me

Ned Coletta

Yes, we're doing to that's growing, lot as business. cash low look to provide do this. for right, quite the we've digits, like But And of across where yet what this on, flow, this EBITDA the you us been mid region. not stepped a we're of with at right guidance new to going that. book course, years. we that's double platform on this free going digits. reason high of a why we know, We're, absolutely multiyear Michael, continue assumptions trying to help into double And you're

Michael Hoffman

trying was Right. That it. on to I the perspective was put

flow does there to any due Pennsylvania things you It able that So limits are have Are control? to of the issues. control on is the some little unique. do a flow

John Casella

I there flow always of communities relative think limits right. controlled, terms flow those are that would Well, in control to be

context, there but it be platform. mean, sense that it's not makes wherever entire I would is in flow control So across implemented, the that

Ned Coletta

collecting have business of and continue you recyclables. Yes. And a we in we you of drive really come those value lines there. returns; waste advantage and control, our drive well Delaware, We drive do flow value but high point, from to in we lot

not that's it's something view. So negative our in

We and have from ground said, operated across as having service, the very them returns Northeast an in yield control services flow high the communities that and cross and drive the on have those can as standpoint providing equipment excellent those really right for markets years absolutely well. in John selling we've efficiency

Michael Hoffman

point? at been HHR this has then and Okay, filed

Ned Coletta

April. of XXst Yes, it was filed on the

Michael Hoffman

XX started. the clock has day with So

sort on overlap. XX I looking we're of mean the here the So at of May, something

this anymore, theoretically don't early call termination up? they what So but theoretically it holds

John Casella

don’t issue overlap, there so HHR. it you any, I Michael, said, shouldn’t no be an shouldn't as is from think, there

Ned Coletta

Michael. would working close late we're planning with a the the Yes, and objective on QX GFL here, be team

Michael Hoffman

in Okay, and had England, price given cool. you exceeding collection, pandemic going to we back now But window have price where, disposal on that exceeding total on is started returned that's in back path And Are a collection sustainable? was collection. disposal. your a where then of disposal better you than New is dynamic and post the then then

Ned Coletta

the right in IWS Yes, the certain damper right sludge of it's the we're about on online enough generally of greater the a a day kind think those New Apex necessary, And not bringing to running the very bit where volumes And side. week. of of inflation York side. across now, on disposal of way a talked as capacity they're week earlier, guys day, on We're to we seeing pandemic to especially the materials. constraints little challenging of It's of put are some marketplace. the I There places really middle a to kind in seeing highest all rail put lot at today.

So you'll Absolutely, and disposal out have reason online, new long I McKean ebbs to as we a visibility need standpoint. flows, outlets see we're come Michael, bringing capacity some from outlet comes think, or waste the term in. stability and why

Michael Hoffman

forward New Look Sunday Okay, to you Orleans. all terrific. in on seeing

John Casella

Sounds good.

Ned Coletta

Sounds good. See you down there.

John Casella

there. you See

Operator

KeyBanc line from Eastman the of Markets. comes Sean with Capital question next The

Sean Eastman

Hi, questions. everybody's team. my Thanks well. Hope for taking

lot obviously you just working just obviously a this mean, approaching different deal a positive been but I little doing what we've different an the So you've on and than of really doing compelling, profile a question bit this deal, has has what been guys very well. aspects of perspective been touched way. M&A a from have

a considered platform like of cons lane just acquisition think staying mean, decision swim the and you on would and that kind I this, same perspective versus that helpful. any trying the through be tree So, pros to from jumping just angle guys around in

John Casella

grow to existing to have over the I clear that continuing continued ongoing it's We the platform that started at Sean, of in a deal there's significant actually the Pennsylvania the want ‘XX. could markets for infrastructure. business having to Northeast of no needed also the happened and of adjacent top point us and could GFL said, development out to over stepped Sure, for that. midst the that our have we opportunity effort expand foreseeable in a if growth. Connecticut up And platform. take to But we we year. a platform think with as I'll where had continue into in future, And time in grow, looking success opportunities platform I in that we as question us great to we that in just it in staying have the we came then

fit really So opportunity of term just continue an value well creation in longer growth gives us very period and of that time. terms long a over it to

Sean Eastman

from Does continue XX traditional guys understood. suggest that? this of about of months perfect into go digestion All right, can sort that is? That just next the makes program think as the John. you mode sort we sense. How a or should perspective,

John Casella

team program I of their with excited in operations. We've familiar the a about the Mid-Atlantic traditional that We're the think continue top market. very place, management capabilities. and team over separate that existing the that's will got

the over look assets, the top So to of are now. in those that continue operations existing at existing the we'll opportunities

execute to in continue we'll of in So the front that on are us opportunities Northeast.

Ned Coletta

companies organized integration smaller a over frankly, capacity. few the comments. up We've have challenges. last building makes team GFL resources. with job but that's those great sometimes have in buying so little a easy, this not professional an two and diligence like And And acquisition done organization teams that bit organized add and really more I'll working an years

point, seller our do, who we're a lot with work dealing of a prepared from organized work. get to highly us So but integration for and plan advantage helping is

John Casella

We're we there's as that in to the continue come to us the think New England, existing though, York New have and they areas. opportunities on important it's going that opportunities execute to Those Sean. I significant activity there.

to bread into to that. we And our do we’ll the future. able Ned So as go as well capabilities and we've to do butter be out said, developed as continue the

Sean Eastman

then me, perspective moving to a I understand. or lastly an make I And around that quo Is kind we anything of perhaps status just for should this helpful. note? is inflation really update want there maybe, Okay, sure from

Ned Coletta

inflationary the few labor the No, landfill in, our are see really on think categories categories. new. maintenance, party last bit, the a come construction, And third capital equipment of right and continue identical mean, side, seeing I there's we've highest we're as With but of seeing we inflation nothing heavy in that costs are construction little I we're to where periods. over the seen some the seen the most the one think categories caveat, hauling we've most come trucks parts to some now. probably in I inflation almost the but

numbers quarters. thing bit X.X% at internal the the quarters. number our right. today. probably off overall a We couple the at We're So out of that's X.X% of over that is back lower, a inflation couple Labor peaked most taken one last

Operator

[Operator Instructions]

Feniger with comes from Bank of America. Michael question next Our

Michael Feniger

everybody. thanks Yes,

about the the GFL contract how asset, regarding Just to I'm there. curious think structures

mix have of some for guys very unique your with peers You CPI. more subscription a

we footprint? new about? should there's contract be kind this structures that If any what of thinking different curious, Just

Ned Coletta

often residential, mirror positive subscription of of you in No, acquisitions small blend and like residential, can benefits. find in Small commercial XX% our that's a that's there's and XX%. the majority real municipal. Maybe view. between that is industrial great one and commercial, it's being around X% a about with work, to X%, But pretty X%, And can that small based. that the don't can here you business. attributes of up in We're actually seeing vast subscription,

in and around only permit about or demo. and X%, industrial the business get You roll X% off construction X% of

the we're fee the being you can comfortable we're marketplace into. mix can that And with ground a mitigation it's we XX versus we flexibility. And manage year the that like right little structures. appropriately really with from mix where risk sure we here stepping in have the on programs make really So based contracts

Michael Feniger

asset the Great. very to new bring this up conversion sell I'm on And Do you cash curious if the free comment maybe relatively of on needs kind just this of investments comment with to new It flow the standards? are Curiously footprint. healthy CapEx healthy. you have footprint. seems to this some margins make side.

Ned Coletta

Yes.

side, some review continue do we about flow like And value appears we'll very fail capital for business. on at drive but we bit, to and to term the the few some but we to with horizon the make really shape. assessing. work We'll year in this be again side, on flow more some So on a impact get greatly first fleet once in talked that the facility the help buy we the not good the will the there investments cash huge first forma, benefits ground, plan years. on near on a free We fleet, which side pro free in there's cash cash the the

Michael Feniger

the apologies about Can if constraints there with disposal to on this, over the your disposal the how footprint, network, and kind new us capacity an is the think with everyone. of current give pricing. part It's on already you and new your capacity just you've update the just footprint, understood. well Thanks, side time And but touched challenges of Great. lastly, over there footprint?

John Casella

Sure.

in disposal there. significant issue So We don't capacity there's there's that Pennsylvania any anticipate available.

In fact, that our at have currently. and of in have transfer I capacity, there's capacity But it's a point facility, to likely disposal think we'll rail McKean safety there's opportunity from have significant and in as lot some a that some market valve, the we market time. the

Operator

over closing Mr. John I showing back Thank for I'm call to Casella, further turn the at remarks. this no like to time. Executive would Chief you. currently questions Officer,

John Casella

Thank joining forward and of have day great And us XXXX you. operator. you earnings thanks, late weekend. quarter morning. Rest everyone, Thanks, Have look for in the to We day. you, great July. a discussing second our this Thank a everybody. with

Operator

call. you. This conference concludes your Thank for today's you Thank participation.

You a day. wonderful may disconnect. Everyone, now have

Casella Waste Systems (CWST) 28 Apr 232023 Q1 Earnings call transcript