CWST - Earnings call 3 2023 | Casella Waste Systems, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Casella Waste Systems Q3 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Wohlhuter, conference Casella Director like first to Waste now Charlie speaker, of would hand over the your Systems. I Investor Relations, ahead. go Please

Charlie Wohlhuter

Senior in any as only be views as file the views our SEC.In with and of including subsequent our discussing Sean All may statements XXXX and of Systems; company's John under afternoon. forward-looking Jason the Vice take Form Casella, that your will our for you and were Act the on of is represent will by Vice the materially and provisions harbor remarks of from Operating Waste Financial Solid Steves, upon date. Chief the please on activities most right. constitute today Officer; of Good the may our But Mead, relied Treasurer; future our safe results Officer Chairman important the today. questions. Securities joining section result yesterday discussed President Risk Casella update Factors forward-looking review President company's representing President Officer should on and Waste Chief we our be Chief purposes call are addition, and those us those those which about happy Operations.Today, Litigation statements we Actual Senior prospects an and on we Coletta, recent of these of of Private environment, Reform Thank thank note results us annual forward-looking After various released as results, XX-K, report of With and Executive Amanda. Edmond as differ plans Finance a to you, our for be of expectations, make XXXX. a brief various quarter and morning, third statements which business not and indicated the factors, any

ir.casella.com representing point should forward-looking statements if specifically any in the These elect this measures relied the with as disclaim generally Reconciliations be extent accordance be the call, to let so at date be accepted presentation, any not future, update begin of the in GAAP financial And unreasonable non-GAAP These measures the under slide with prepared may some to obligation XXXX.Also the will statements to during to the Presentations. X, referring in not Investors we our our While upon as to available today, are without to accounting measures. change. that, our and in comparable forward-looking available are even principles. which heading views most I'll Events financial November of website do our we directly non-GAAP views we our subsequent investor to will non-GAAP are section they now available discussion. appendix at of Casella John effort, measures,

John Casella

week. prayers Thanks, by can. any for events call. to us. thoughts Welcome we're to serve, a by way sincere our proud Lewiston, be Charlie, and third our begin everyone, to offering last affected conference community morning, part and good in in XXXX It's of would joining like and I we to and tragic thank Maine the support quarter everyone a you that

our also or this and going we new culture establish this members, pleased values. and nearly business state-of-the-art Integration execute pipeline young to in on New recycling excellent, see XXX are sales for grow members pro continue including we in the are I'm Twin around Bridges, a in us opportunities and night, our all building respected industry years, our acquisitions all acquisition which has greater values as track company's a a and to that X a exciting to assets, Northeast new well we operating believe grow We hit York where leadership Brad marks with footprint, the lots history our team Monday, growth tuck-ins service to opportunity for and Mid-Atlantic finance provides our efforts these Operations quickly Included team. forma. are new waste Resource of assets are our our we to continue and market that our and Chief possible.Speaking his quarter style X. completed fit platform on exceed Officer the very into across plans executive also hiring work of This adjacent our is in our many We're which that very to entire core Solutions pivotal strategy. our early Helgeson great results in on announced a report in we Brad our markets Alvin time working we acquisitions as facility last is services. been capacity making solid this to our experience in to the our closed X.This on quarter, market. with and are region. November well and September fold of the against were in well company Financial the effective over

will I'm doing Net shareholder you in continue for him his shows platform to the this both larger that the executing the devote EBITDA complete about and level building. in all, proud recent the our on adjusted President's integrating we years and last been momentum company's drive to team the carrying grow operating the on strong to flow our high serve XX deliver know, ways adjusted by with job that over are excellent results to and basis, core he as company where As release, has our a both value.Moving this grew yesterday's helping results customers success very instrumental and This revenues to and further keenly I'm cash is onboarding role third while remain in quarter along generation. to company the over XXXX.Above many communities acquisitions. and and this of XX% over a attention this CFO. reported the We of press profitably into focused remainder year-over-year year and we strong the business free in our excited performance excited

We are about 'XX guidance once excited ahead. and remain very opportunities the for updating again looking

our strategies a related performance our and brief recent review operations. key to of Now

Our across disposal at landfill programs.Our revenue regulatory was and stay quarter operating we the of compliance items up improving we costs. assets are our on are doing sites an important we so, and work the part ahead overall assets. of of strategy our our in returns as waste In quality focused on ever-increasing the Northeast, cost in X.X% our increasing solid focused these capital higher to price

continue For for we while at costs can efficiencies operating refine control, programs keeping safety we our and to better forefront. the productivity

efforts weak, and our budgeted still C&D, points posted collecting economic was quarter, team up exceeding were making concentrated direct levels.Timing underlying growth. X.X% operating collection fleet volumes quarter, plans.The but the special of the we executing deliberate our which Despite started increased of our As focused Ongoing uncertainty. efficiency waste expansion last operating to said, together profitable into in pricing year-over-year solid margin expansion have Sean We few and residential line at XX a a his pipeline our quarter basis and to line choppy operations. growth improve volumes periods in majority that these accept route of of third line be levels. team's there delivering of computers returns. decline, shows margins around That volume a is as landfills our do implementation softer October. perspective, collection commitment landfills another and in a project-based of safety changes adjusted we drove projects in success future and communicated waste the on This improvements budgeted we in business. waste a is Steves plan the third quarter, can special have can and are price From when of historic in of business.This core we for is flexible margin result result the just the and track programs EBITDA initiatives, and are remained with conversions in for the continue optimization solid we Volumes pricing onboard our automation most of are since efficiencies members. MSW the special are deferred be to our focus on volumes

our help goals. As with always, nimble focus continue maintaining Resource solutions, operating to their and and resource in strategy returns. solutions sustainability we great take providing our pride be economic them meet on a will we customers that

fully our in contributions. positive yesterday, online, press facility back is noted our upgraded Boston and release making again, As recycling

the over a on forward accounts of and results of productivity, are levels We recovery business are positive to back increasing and while area safety also exciting, the and quality been material look seeing year.Our the we positive end. growth. has These this contribution early increased very national throughput remainder

to a for growth, continue We account customers. where of a to plan lot potentially sales strategy opportunity overlay see region, have across large our new targeting we Mid-Atlantic and further industrial our win contracts commercial and national

our over continuing acquisitions months. to like completed our I'd remain capital growth and to highlight integrate allocation Finally, We on strategy. focused several the larger last

our meet process.Our will operations, guidelines over approximately eye and the annualized $XXX million Northeast around acquisition the keep opportunities that We return top more and with $XXX is our of review of roughly on also operations. our pipeline an revenue robust million Mid-Atlantic

to a turn a Ned it number project development side, growth Boston that projects are details positions on of commencing. pipeline quarters, financials. and us blocks next the well more over is that, RNG shareholder organic the long-term over provides strong Overall, with we several organic inorganic as MRF the And runway value. and to building I'll from On nice for further and near-term have that drive including well our our upgraded contribution the

Ned Coletta

morning, good and John, Thanks, everyone.

I've our but so team. this quarter, to of and the torch into great fits to years, system the better suit partner our I'm is doing welcome value role to XX to Brad talented Financial of Before I the a get for This pass will for the who's been Officer. also company and me. a be Chief really I bit for want someone excited

$XXX.X price third Revenues up were Moving business on X.X%. million year-over-year. driven year-over-year up up with down XX.X% in to acquisition in slightly and negative quarter volumes by XX.X% solid the change XX.X% up revenues acquisition X.X%, up XX% XX.X% quarter. $XX.X year-over-year volumes With the or of price were the up growth waste of million, at X.X% with down of collection and activity, year-over-year the line were X.X%.Revenues

quality volume line regional and our the efforts C&D in year-over-year, declines driven business. Two, lower lines had landfill the landfill a tons levels.It's on tough contaminated year-over-year were disposal for Revenues special about MSW pricing waste special landfill this volumes. margins particularly and by important waste to to things mentioned, activity a business special X.X% year the decline note was competitor while we're of were a and last year-over-year We market. John As volumes were were comparison. quarter waste. up in improve flat year-over-year, losing X.X% were landfill of volumes revenue with in soils and up tons not XX.X%. these to the primarily down residential XX% down few the roughly strong One, in third

waste very pipeline remains soils strong. special and Our

the However, we up anticipated have and conservatism, last special economy three, weeks guiding waste down to the in are we the initiate off.However, click in projects have of special spirit sequentially volumes over gauge project waste to lines both experienced and to we as year-over-year quarter. be delays projects. for And continue finally kicked seen as fourth when the several customers

commodity and with late special programs X.X%, was were Adjusted $XX.X facility our the landfills, partially of $XX.X our under down volumes the pricing, X.X% roughly from was as on were lower special the quarter, in pricing. June, and acquisitions.Our in volumes growth $XX of quarter recovered waste by was price adjusted XX $X.X lower offset XX point line costs, $XX year-over-year Vermont quarter basis from with net the processing parts a rising and New the offsetting costs a operations weighed XX% prices in X years margins the gains of year-over-year, as Once from after or very acquisitions. lower fuel year-over-year price increased offset a million XX.X% do nearly recovery per in with and increase and with and fuel of expected, our $XX.X or again, some Cost X. a was items waste many headwind acquired EBITDA basis resulting offset rapidly in Industrial adjusted $XX.X by headwind quarter from EBITDA up quarter, in year-over-year of York both year-over-year. adjusted million depreciate is as approximately headwind approximately activity.We strong basis assets pricing in a the the is multisite from of pricing administrative $X.X fees, and the dollar upgrade Resource fees XX.X% plastics the environment. acquisitions commodity throughout million year from year-over-year. recovery pricing year-over-year. year-over-year expect of bridging in with from at forma with acquisition XX This recycling was points at lags slight with the the July year-over-year roughly remainder up third $XX.X revenues the $X.X by for partially performance Depreciation soil of between mentioned, and up X Boston fuel down disposal X.X% volume of of metals year-over-year Solutions XXX the or carport give quarter To compared as fully acquired. as revenue prices waste quarter, or flat the million General business. pro increase now by calculation amortization growth inflation strong D&A up ton for Solutions basis and further at sequentially year-over-year during operating and collection completed $XXX,XXX roughly D&A facility on paper from million average equipment levels. performance Further retail by landfill a flat lower adjusted our million million XX revenues business. in as surcharge to offset the derived and associated pricing in and flooding basis up down offset with Lower a percentage costs expect each partially points fuel X EBITDA our and up mixed year-over-year Hampshire a million the spread the were margin at EBITDA we As cost quarter, XX.X% percentage with XX% $X.X in of soils the quarter and to fees. basis, XX.X% G&A at was percentage rising acquisition and the of million This decline $XX Resource full million EBITDA basis in by revenues the our New total fuel revenues few year-over-year this Lower year collection at $XX.X On amortize quarter million million of D&A perspective, up acquisitions.Solid in adjusted the acquired EBITDA point up the point point $X.X EBITDA the costs heightened Adjusted inflation John by facility.As commodity a were headwind program the declines. basis recent in was million drop point revenues roughly include revenues. a rising the actually first of revenues XX% of headwind a the inflation. a positive moderating we consolidated million. down we

M&A strong team.On acquisition quarter transfer X, announced revenues. hauling, the resolve with Bridges, of $XX another completed Twin So assets September the previously we and million for this several was It recycling approximately in next including years. will our annual of

newly through been the has team busy of including with our work Mid-Atlantic the acquired the businesses, mentioned, operations. integration the Sean working GFL As

and progress financial each operating with plans, this we $XXX.X [ million. XX, and through we $XXX.X importantly, period had September million against debt, have of good very of and initial our most make cash our targets of achieved to continue billion $ X.XX transaction.As integration We ] liquidity of

Our consolidated X.XXx. net ratio leverage was

of was average our interest debt. interest rate or XX% Our approximately we cash and rates X.X%, fixed X/X had on

liquidity continue significant maintaining sheet to our We and organic flexibility pipeline. are development M&A and support to balance

through as and range. and and through second fiscal While started or million due the light timing million cash year these $XX.X year-over-year now $XX to quarters free 'XX cash flow is on guidance increased our track to September third year-to-date were working flow headwinds capital resolved adjusted at year hit differences, the free expected.Adjusted expenditure capital up

Given revised quarter again above quarter. forecasted guidance to for adjusted the closed expected range and XXXX, the flow pricing fiscal The assumes cash conservative down our continued free our a volumes, acquisitions year-to-date and by this contribution volumes fourth from ranges view for special in inflation, partially EBITDA again. landfill offset with be revenue, of cost special guidance waste recent adjusted increased weakness waste the we

our EBITDA in associated the the $X million by guidance at at ranges, newly As guidance business XXXX million operations, $X a with landfills.Our acquired internal our million for With at range lower midpoint. $X an of is adjusted running of updated rate inflation of volumes special our waste we part offset X.X%. the increased currently decrease increase core the by

increased EBITDA basis fiscal We inflation to for points expect outpace adjusted by roughly total this and XX in XXXX. margins

forecasting We in solid be slightly fourth waste to be volumes to price to and down up are X% the the quarter. X.X%

amortization.We income newly this recognized, in associated acquisition you with with ranges the notably of activity, lower the the our with cash the increase most fiscal for million, flow year guidance acquired we guidance by $X recent free have reduction As have our may associated adjusted net conservatively our XXXX operations. did depreciation range increased with and changes all

have and continued interest expect While inflationary rates offset growth. operating on expenditures capital higher this pressures we cash flow partially growth,

into flows next to grow XXXX, and year. in and great 'XX exiting we're shape forward cash Looking margins to continue

as total from expect a in revenues of already acquisitions completed revenue XXXX. our We growth roughly percentage rollover XX%

of XX%. XX pricing to for year-over-year, I'll XX free range growth operator continued EBITDA X% XX% margin organic cash to and expansion X.X%, questions. growth the adjusted basis a of of roughly back turn expect it of points in with adjusted flow that, target to And year-over-year roughly XX% We to

Operator

Thank I questions. you. [Operator while stand Instructions] compile our Please by

from Bubes Goldman question Our from first Adam comes Sachs.

Adam Bubes

XQ XXX XX.X%, down guidance from QX like basis margins have points which of sequentially down Your to Historically, you imply looks to seems for XQ. around to XQ. stepped folks it XXX translates basis points

might XQ seasonal looks moving like normal that you Can implies us the the margins cadence? guidance better XQ to pushing margins that it seasonality. than ahead about of pieces, normal this are just help So think trending different be

Ned Coletta

Yes.

we We last look headwinds notably were So most business down October, Right our some if little business had quarter, seasonality. improving into different a seen we step year, some than the December. bit to larger to is we've actually in than the trends September which from they typical. had into normal fourth that now, a

earlier, we some our largest tonnage days entire landfill tonnages, mentioned of a we As landfill had October in standpoint. the from of year

to changes So still seasonality.We recycling factor are of tailwind. Solutions some year-over-year rolling And we slight had into one is business in negative we Last business gives in fourth business. other the have comps that positive on some also couple seeing our year, new quarter a fourth Resource quarter. contracts our the

expect and quarter. expect into that positive facility contribution fourth Boston project firing is tailwind right year. we now, this a really We cylinders all the And positive recycling then the a on from

step are into Probably seasonality much but the quarter. fourth showing you're step some So quite the we trends of that not down lesser have a is right. a as down,

Adam Bubes

seasonality operational line points then cost accelerating. normal the seasonality. range I normal margins based seems certain basis in with of through up price the XXXX, and be Meanwhile, margins you somewhere margins XX initiatives off in QX just to hit of in off And XXXX, assume There's trend to I'm business. getting if XQ

XX to there? XX if points me basis mentioned walk through, I'm moving just you you think missing year-over-year. any Can pieces I

Ned Coletta

Yes.

the And quarter to So was this we give the we it next But snapshot, a a budgeting on haven't for with share the the Adam. give and of faced important year. thought usually don't quick moving just lot year. acquisitions pieces, in visibility we

is still to there our So done on work side. be

have lot we well of most aware, pricing a you're flexibility collection of programs. our As with

next months unit.So trying of where more business to program excellent operating opportunity, to next year. in visibility on into year, don't budgeting we're an ourselves, inflation margins next deep pricing the for Sean will his think, want into ahead So and efficiency set our on temperature have the I right we're for where and expand team be. is, give up programs get scheduled of the slate taking new year, into to that we'll again we great coming and

Adam Bubes

start then think of to obviously MMBtu. end Terrific. or X.X the last I X million facilities delays industry by some coming you the since. had with of And one The XXXX for issues have At expected RNG the had year, online has me. project

timing? update on just if in terms of X those any So facilities wondering there's

Ned Coletta

Good Yes. question.

So investing facilities with bringing are and in both parties online. cases, the them capital, third we've partnered who the building

details our one working Country in online, and Still Our quarter. close Hampshire the fourth a quarter will facility New or in with commercial get that either to is on associated operations. they're to of online North hope Landfill be couple we first

and start in of So and come is project that half that quarter, expected is to give online had quarters.Our little first our 'XX. positive Juniper expected in in probably fourth with second Maine We contribution that's the We to headwind third had the in at a bit Ridge this negative to a also fourth delayed. year. facility a partnered that

and So months these issues not and little again, not think driving a online the third but projects. bringing bit delays, your on I boat time, X our about guidance behind exactly parties, running of sourcing well. We're perspective our is as certain It's Once these though, had components right. headwind on we're there. some probably huge in they've a

million $X.X about year. contribution expect of in of second the the half We

So been headwind us as for that's that's something well. a

Operator

you. Thank

Stifel. from Hoffman Michael from comes question next Our

Michael Hoffman

to this it there through have you I just did storm all is of guidance that disruption other benefit in saw the you like. any like back have the ago? of coming because The and years as Is hurricanes with the question regards debris the

John Casella

that somewhat didn't it's mind much because that net-net-, say, to there's significant benefit. Michael, really fair it's talk about neutral. Keep probably think we in that I it not

is a how up to recovered question back not lot it real long We from commercial the operation. back businesses will have take businesses operational those of into standpoint. come still have think a that I not and

So lack a the from bit of activity. But tons obviously, we of the commercial a damage been by more offset landfill that's to net-net, little headwind. received the

net-netâ€¦ So

Ned Coletta

[indiscernible] days. period Vermont several for in especially as well, down, being with John

John Casella

mean Yes. of terms issues. expenses response the handle in areas the high from bringing in I Sure. other priority team to

Our Weston, to were Waterbury, of Berlin, Montpelier for smaller well. But [ week York completely, large Londonderry smaller and few shut in landfills in and obviously, of a by Pennsylvania brought net-net, activity to Montpelier, and customers the Ludlow tons from but as that in ], offset commercial people lack a operations, other portions company and of service underwater New Vermont those down only but areas activity the up operational, activity. not and more in upstate we obviously, and was get ourselves

Michael Hoffman

Okay. That just anything. helps. And then it's not want a confusion. more I than clarity

X.X. XX, you call press price at the disposal transfer talked on you shared about the in and So release,

So there's pieces this. to

then the number? that drag transfer it X.X% to incremental capacity the imbalance of the side blend Given disposal up down what's so see well have Bostons imbalance, thing pulled likelihood 'XX. in disposal whole we of would a collection in rates your in sort below and the of the the supply lot Shouldn't or and price? availability landfill go And the of the improvement the disposal and the

Ned Coletta

Yes.

a of business done dollar lot case, So percentages on our in they're are And is this sometimes and basis. our friends a sometimes not.

passing to a X%. were in $XX chip, say the cover ton $XX you rates, a if an increases transfers and you're $X have a certain $X about at markets on through at you increase think and $XX gate increase to cost we're dollar-based So

$XX you're XX%. landfill say you $X, a a get have on you Now to rate, $X and chip

City lot high of rates, side, landfills, transfers increases.And this because the and period. in between recover disposal a the transportation important in a And get stations in your this getting across our been transfer what to and the that's occurring New still an happens tons are so COVID. across landfills as Michael, to bit footprint the Northeast we're much And haven't we transfer you from that's dollars, part really percentages are a lower, market, there's ever it. more on that's reduction York but really of little the point, seen especially So dollar-based and entire then fully

sit expect additional couple may pressure of in still we But environment. right be slowing now, activity pricing with which the some this little will years, in We economic facility closures seeing hyper not the continue complex next the the competitive marketplace, good any on put we're bit then market. reduce where in even getting coming off, market everyone a to and waste focused seeing adequate returns actions the seeing We're on special pricing. in we're regulatory to

Michael Hoffman

located? banker, then the spent on he And to where Brad, over get going good lot as his Okay. time them of regarded. I be years role with a and in well a at Covanta is prior to that

Ned Coletta

Vermont. to coming He's

Michael Hoffman

Very good.

John Casella

There's Vermont, [indiscernible]. come that really like Michael of people a lot Yes. on,

Michael Hoffman

that and and he's long It's New a and that, a Trenton, been kids got time. you. He's Vermontâ€¦ It's in family like good not all for Jersey

John Casella

back period and a of transition be forth be There'll period where time. for they'll a

Ned Coletta

our down team from organic of on front here for entire lot we have and Yes. for It's exciting And me us. we're exciting well. standpoint. standpoint. here. business But extends of as opportunities way the there's balance acquisition a lot in It's is a our working team great his development from a And

strong team is join another exciting. have to member us So

Operator

Please question. can our stand file by while next we

comes question James, ahead. next Brown go from from Our please Raymond Tyler

Tyler Brown

but really looking to with or am if in out land I bit know in him again. working But forward little not, a TV Brad don't is that. I confused just

So was weather an EBITDA headwind in the quarter? EBITDA dollars?

Ned Coletta

it was. Yes,

a headwind from the basis flooding. the XX bridge So point margin we gave on in

hundred several dollars, So it's in looked one that's the Jason, aspect at we dollars thousand [indiscernible]?

John Casella

headwind. Yes, the

there, right [indiscernible] Tyler. You're

Tyler Brown

I'm If in we and volumes. come specifically interested to back collection volumes,

So said down they were I maybe think X%. you

large resi. are are and how talk there? about out trending can container weakness called seeing any But You in container, you small volumes you

Ned Coletta

to the But X.X%, container lot in down margins. improve it bit, but been stable there were year. there trend once X%. of down again, So that a Roll-off the was a small all little work throughout nothing and has the material

business Our basis in margins that of were up points line XXX actually year-over-year.

in revenue of we're focused line really on pricing and quality of business. pushing adequate So that

showing So one the is really that's that direction. right

Tyler Brown

Okay. Did correctly? did quarter? Bridges hear that say And million add I the $X would in then Twin you you

Ned Coletta

Yes.

So we've had other a quarter, in our from but contribution, We're end Bridges last to just couple the of small in guidance $X other acquisitions. the small Twin not year. total of acquisitions and million an the between

Bridge brought X. Twin on September online So is we

tracking the about $XX at So we have of year, of And the first X/X through we year. about and million we're expected EBITDA that.

the in of through as have are have contributing that from We a then acquisitions about we year. September $X guide of $X.X the million, And end well. our couple million smaller

million in forma to the total right [indiscernible]. in And pro So $X our and [indiscernible]. Mid-Atlantic it's tracking

Tyler Brown

little go into That's helpful. Perfect. does of -- Highland the effect? Okay. a couple when expansion

John Casella

We're York community I in biggest of behind a now. mean in through Tyler. the the is think with right host of matter DEC, issue just us getting terms now agreement. the permitting threshold I New regulatory environment And it's

said, aspect I think difficult that through get agreements and another But host I quarter is it's Like we get most anticipate the surprises probably any there. community to months most the away the done. process. which are don't important X probably or to through

Tyler Brown

one last my so here. and Okay

your There the next obviously have over. you're Bridges the So in the some synergies when that and for we there. in Twin so year, if big GFL building be number. including I'm roll rollover, about think others curious picture blocks we may acquisition

when think XX road? something additive McKean, potentially organic when restart more be the down is Boston about those probably further then from the have But Highland would growth. You or we

Ned Coletta

material perspective. the as Allied a really, That's great market. Buffalo Highland, Niagara becomes the up landfill Yes. closes more in that

into to we really is as long-term in the need can in that this are And slowly we planned going The from said McKean, point, or But our to to things Our XXXX. But will where up market. it's math, going look asset and that be miles always containers, we've construction and a from built, down. slow online infrastructure is a we more when impact us is Buffalo about early serve extremely start definitely slowed we've position nearly in be long, little ramping railcars to is see XXXX, to before, and like the expect a vantage XX the help impact you'll play, in marketplace spring. well. be like material and a

Operator

and from from Jonathan you, comes question by stand please Windham Thank our next UBS.

Jonathan Windham

on Ned, more you you ask the that, integration or a how after line about have your that's of you transitioning on your on you think any about maybe thoughts little hire. in year? the next really Brad, congratulations bit can think expansion? Just Thanks. sentiment a Is [Indiscernible] with how hiring I'd about Maybe it expand good CFO further role? the priorities

Ned Coletta

Jon. Thanks

board when on my hats give So retired in Ed July And been and continue across to to reshuffled our advantage lot responsibilities Johnston focus we last to in we'll the I've And XXXX, with a and year. balancing of the the of Brad team. what from needs now him him ground, successfully. he be successful point, development hits I projects. when want transition And senior

integration side of as on There's of of the organic deeply time and there, a that on couple with spending landfill development the units aware house going the their well team, and to teams from and a to I've the on the team a key systems lot in acquisitions Resource with to well. projects, his business been forward-looking of help Sean as you're drive have also working both operating We lot completion.I'm as front. partnering Solutions bring then value looking and we're our

I to a ground So and I cover, lot won't of onboard. there's be suspect

Jonathan Windham

rate lot what and I have maybe I hearing and interest to the regional environment smaller players? fixed wondering thoughts vulnerability within from I'm get obviously higher from can't of general less these you And interest rates But you're idled, debt. the some the of a just to just rate Ned. yourself, seeing then wanted your imagine market one you question. being other on on

Ned Coletta

Yes.

question, Jon, I'll start sheet. that So think balance a bit I with hope talk our about

So new We of of it's a companies. of debt. growth lot really next point the talk they we financing and next with a a smaller are lot buy always to good the piece where small and equipment of piece companies,

profile really a marketplace. composition they've result the grow. a going their expect this up And in change seen in we so to ability And to return to

our whereas mean we've stable, you agreements.And I lot an very a done be now entering bidding, bid into to is balance sheet year bid on to look it higher capital price than fixed was work, to enter of have is their of what their hedging excellent that flexibility. cost a job going we is we ago, and and So municipal private when if

of gone we because cost equipment they So from sell as or to capital might when hearing has to actually their may that a be We're point also view private companies up. advantage. this of replace some smaller want of their accelerating cost view

we're our us. place, from vantage great, a probably opportunity more and So for creates stable it in point,

John Casella

It really does.

out growth up from that it being make I a practical that as have in to not what are think particularly operating an of us. relates to of net place have the standpoint, forward opportunities really from from because laid really we consistent a exciting moving freeing only of it's it's front involved And with we perspective. terms in we resources we the more in standpoint, have sure

of disposal and to obviously and the out the seats those are our only over not in Northeast, HR there, we're costs, in have As and to but seeing all Mid-Atlantic Those exciting affecting now up issues. not Eastern are invested really Seaboard of franchise aware down the Mid-Atlantic. are still we've substantially and still well.So the opportunities try we in in time. only we as independents most pressures labor in issues fill Northeast of the inflation, opportunities that we particularly existing all have the indicated, of do have people the And the those the top

Jason Mead

just to John, is on, And tack this Jason.

rate interest across in interest fixed close swaps out have our as rate Ned million about volatility mitigation we're help a that risk. And to $XXX perspective, today hedge sheet. So balance debt our XX% from rate we risk mentioned,

something on, a job and done heavily nice we we've and focus So there, to really that that's something. do continue we'll

Ned Coletta

Tyler rate interest was the is quarter, I notable. to in mentioned which X.X% our earlier, pretty but average

Operator

please Thank question. our for you, standby next

Jefferies. from from comes Stephanie question next Our Moore

Stephanie Benjamin Moore

you Northeast best-in-class the a recycling in I your operations, little clearly a wanted bit to on about talk could touch maybe in your footprint.

the I to producer following as of on background with potential path we've think what recycling seen there's extended it in changing legislation responsibility. maybe some Canada relates on the

on be the some tackling changing what your might I just in could love are involved legislation in or you get potentially thoughts how So states in some to would your of footprint? be

John Casella

governments what relations is of government So I various I think standpoint changes we potentially cetera. And that standpoint the make seeing path, that to would down. effort. municipalities a think and/or of track potential improve from whatever move one and of want middle every recycling obviously for those from part efforts, the to recommendations be of trying we're And degrees a in to producer et state we responsibilities,

certainly we in that the So think it's across of certainly them, of of. the Northeast, several but them, I on that and that track is it's not keep significant certainly legislatures it's the all something agenda, something follow and

Stephanie Benjamin Moore

thank then of Great, M&A M&A, a in XXXX. And been tremendous you. year just on it's

you I to As did in year? love think just Would you M&A what's of the be what to give thoughts view up? of pace it would XXXX, to of still look of this some maybe your in looking drugs you about are terms optimizing and opportunistic deals M&A? your XXXX? pipeline the Or

John Casella

Yes.

have the year, terms do that significant to beginning there, of be we integrate that the think of XXXX. of M&A into to We've to done in opportunities. But do I I there. have work you're this continuing we got of think work amount we'll plenty right,

on cultural we to perspective. get obviously, get So in board from want a completely them those businesses tucked

of think But probably lot continuing work towards be ongoing be work quarter. more our right to to year, again, So an there's but integration nonetheless, standpoint.But I to will we an will quarter work end for into acquisition opportunities that lot M&A program second the the do of from that the of significant have from a be now. done continue grow us a There needs to the standpoint. first

said, significant an from Ned amount as IT also doing a we're perspective of well. work As

Ned Coletta

I in but mentioned expect completed the majority. quarters, in we we came and third earlier, John, XX% revenue And about on from they growth the this because so vast acquisitions year-over-year number XXXX second

a besides deals well already as bit So there's quite as happening. there new of Stephanie, tailwind but

Operator

turn remarks. further Chairman I to and at no am Executive would this time. back showing like now Casella, over it Chief to closing I for questions Officer John

John Casella

look our next the of great for Thanks. you part being to call. talking Thank everybody. call forward a today. We in to February Have Thanks, for day. you

Operator

conference. Thank in your you for today's This the program. conclude does participation

now may You disconnect.

Casella Waste Systems (CWST) 2 Nov 232023 Q3 Earnings call transcript