CWST - Earnings call transcript Q4 2024 | Casella Waste Systems, Inc.

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Operator

Hello and welcome to Casella Waste Systems, Inc. Q4 2024 Conference Call. [Operator Instructions]

I would now like to turn the conference over to Jason Mead.

You may begin.

Jason Mead

morning. Good discussing released and yesterday be results, year fourth were which afternoon. our we'll full quarter XXXX Today, This morning, Helgeson, I'm Steves. Chief and Executive joined Financial by John Ned Chief our Casella, Coletta, President; and Brad Officer; Executive President Officer; Vice Sean Chairman and Vice Officer Solid Chief Waste Operating and President operations. Senior of

provisions make But results various an we harbor to recently of happy filed safe factors, will on section review the first, with including be company's from that Private the about materially questions. those most aware Act Reform please indicated a the file we the of SEC. expectations, those for After prospects by our discussed various of and important in activities future of remarks statements Litigation be forward-looking Risk result take these constitute the update XXXX. under these the Factors Form results a differ the plans and environment, Actual company's your on may business forward-looking XX-Q Securities of as purposes and statements

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

we XX, statements measures today, and included to views elect Form Reconciliations available our to These we'll X-K extent on measures, SEC. be as directly generally accordance without of we measures. update during While to relied most press as filed the any be forward-looking date upon are the non-GAAP statements measures in in some financial referring unreasonable comparable These with Also to of the subsequent non-GAAP release not accounting February do non-GAAP are are the effort, financial representing are change. with GAAP views disclaim forward-looking financial they our principles. prepared this to they the accepted to in point future, so may even our any specifically obligation at XXXX. if call, should not

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

John Casella

This Thanks, focus continue great well business the Jason. meaningful that manner. that for around this our company. to call. have the competencies the year, on all truly is accomplished we've another proud and maintaining XXXX conference the I key performed core our Very of everyone, to Good year and and strategies, in really morning, welcome against far. our fourth quarter efforts and thus execution supported a grow appreciate organization growth our We

XXXX looking the and have very We value, much to to and in forward tremendous ahead. again I'm opportunities drive year

amazing over to million with fast in few and It's working revenues. $XXX We off capital approximately are of And XXXX balance poised to to in date annualized to with $X years, with Consistent million and acquisitions deals, the billion several with we on sheet years, the are last closing acquisitions put revenues over X closed million acquired put XXXX to to consider we've in $XX work. our in last revenues. growth work. our we we're a X start annualized over in $XXX X over

now standpoint. are new and enable right have to to to years. and that than last through with entire the fit, over company it to that terrific welcomed Casella opportunities a many thousands employees new states However, tuck-in I of across operations of XX the particular, more customers have new we the with find on engagement brand hundreds equally support In us of a couple build to acquisitions remarkable our X,XXX in of and further footprint community from service, strategic with great our opportunity bolt opportunities. business markets

XX%. flow adjusted That all row years EBITDA of XX%. and adjusted over EBITDA adjusted by cash revenues, of over grew growth in we XXXX, highlighting X further marks In free a

focus strategy, Clearly, profile. leverage disciplined and growth the strength integration operating on programs. We also low our a maintain speaks and this pricing of our to

in-market to in dynamics, volume Our down us although and special an these will volumes XXXX in experience XXXX C&D external as were modest excellent we're various growth position, optimistic landfills with due provide that ease. parties disposal our us rail opportunity as long-term online Further, partner capacity. with is are with as our and provides of to meet needs landfill a potentially well McKean pressures seeking customers the that third we

ability our continue also As we grown This have to and XXXX. will in be business, has to been tonnages. we've so the XXXX collection our increased business. to focus a in internalize Shifting

reflection costs last down. our rollout programs This pricing. automation, the of Sean to in continued the year in-cab routing a technology margin our as business. opportunities is in our continue collection a years been our terms technology of collection well of several a our operations further strong flexible of business in those adjusted XXX as from year-over-year the across acquisition expansion synergy and over line in points. with another accomplishment has investment perspective look operating of EBITDA growth team has Most for It his and from over basis driving base of standpoint,

our In fact, of XX% now over revenues collection. are in consolidated

margins which focused national XXXX. driving to in and acquired had levels over in across time one facility operations improve and recycling to years the have very our as we in as presents the operating operation our of very, on standards. Sean compared the at the here As our recycling team and to typical in well We Resource our business. history ability initial the usually 'XX. expected, upgraded In in operations The processing we business integrate invested businesses lower performed are Boston value the accounts XXXX. take collection further Solutions, business, best in

fact, in to success the was In our contributor And a than year. better expected.

operation a now wrapped for is in was offline XXXX, similar of up but In we part Willman, and early Connecticut. upgrade running. XXXX, up The

excited business, In a volumes calibrate new have accounts in As planned, national will that project over we're X% grew take it complete. to few to the system, our we but by weeks XXXX.

also accounts growing and our service sales existing municipal, institutional won while commercial, new with accounts. Our organization industrial

our positioned company. well are I simple year we beginning sales we footprint to of reflect to our Given grow this. the started XXth expanding as continue marks This in offering. resource [ expertise And management that been ] team, pipeline, of our this of part and operating facility in I to the recycling where of truck from the on a with construction feel started have one that XXXX, absolutely our Doug first the the blessed

so what And been have to collectively. able incredibly proud of we achieve

and We of of are over work many so perseverance the hard years. the product people best

this ahead, best is that I've it's worked exceptional. As team we look with, the

We growth. have of and execution XXXX, and lot our into continued going a momentum to look forward I

the to go financial pass I'll now to Brad it And on details. some through of

Bradford Helgeson

good or in the were from XX.X% acquisitions, rollover or quarter everyone. with million Revenues fourth $XX.X up $XXX.X including year-over-year million, and for $XX.X Thanks, growth X.X%. morning, John, organic million million $XX.X and

transportation up revenues in line in X.X%. waste were year-over-year was XX.X%, commercial of up flat with business waste, revenue residential revenue in the Solid our up in and X.X% Price in and landfill up volumes growth year-over-year lines recently we churn acquired rate the frontload businesses. concentrated revenue solid volume volume to in acquisition disposal up region and in Revenues were all up was and with work of Within and X% down down line up positive of of transfer collection price across quality business with was down improve up price a footprint X.X% margins XX.X% X.X% those elsewhere our Mid-Atlantic X.X% and X.X% business declines business. to X.X%. were roll-off. the X.X% the as in X%. of Collection Volume higher of

were landfills price recycling national tons XX.X% lower ton streams we volume volume shift year-over-year. our offset reflecting by up with price Solutions year-over-year year-over-year, quarter, the and up special of as other and C&D revenue, revenues prioritize average W airspace. growth in of price and X.X% waste, preserving face XX.X%. streams other a line up the lower-priced processing weakness a those up but And terms. up help pressure of saw The the was were from landfills X.X% down was into we the and Landfill continued in the revenue with accounts X.X% on per at valuable Resource X.X% in X.X% in the tons X.X% away mix

increase produce to to constraints. contracts revenue the driven light Commodity costs overall back aluminum. softness far double in in sensitive commodity have in biosolids terms capacity the shifts prices processing was plastics Within the by that recent in processing with facility an offsetting going like scheduled X speed fiber municipal of allowing facility following market, initially been its in we and year operations, Processing a XX% roughly came Willimantic price so this more up revenue QX year. shakeout to average last processing And of and by business firm I'd strength we remain in period, X.X% over driven January. volume recycling down online as by XX.X%, note from largely was renewing us as in expect to municipal X. price operating the

basis margins quarter, down by accrual $X.X year-over-year. and the the generation higher organic to million in flow annual points in approximately $XX as concentrated was $X.X million $XX.X in Adjusted adjusted EBITDA from quarter XXXX compensation full in in adjustment was quarter, the Adjusted rollover in the and year headwind Bridging $XX.X the the margin change or long-term XX.X% adjusted quarter, by EBITDA impacted driven fourth from XX.X% strong quarter, year-over-year including year-over-year impact. points XXX EBITDA representing million margin expense, incentive up the cash magnifying the in free of were acquisitions, million with the growth. XX the million, EBITDA basis

reflecting XX as percentage basis quarter. business $XX.X operating in operations and up year-over-year, $XXX.X tailwind the the business. business and the the a from Margins in Cost the points were collection lower million base base increase of basis of down such base million $XX.X revenue up in approximately were operations shape. of in across XX leverage points, rest represented the basis of acquisitions in business XX points the in landfill million as costs the continued $XX.X with and of quarter, quarter, were acquisitions we the a of Cost million further

$XX.X administrative up and year-over-year. in million the million were $X.X quarter, costs General

percentage For time recent terms, leverage down growth revenue. over increase million our continue including reflects in points to and all from XXXX, as the we the effectively. spend here that fiscal basis a year-over-year Depreciation support G&A up invest intangibles. were to to amortization percentage dollars, to the of costs and of resulting $XX.X year we grow. acquired or were activity, that costs increased scale million technology gross of us expect in acquisition expense But enable this XX $XX.X with will line as In gain amortization

the in in quarter, D&A GAAP at landfill revenues of related engineering XX% landfill last assessment QX in year, quarter the reference, associated as event This base as a P&L charge cap an the our to a cap well County net $X estimated. acquired settlement Ontario the recovery more with the the in to failure in business. year-over-year, compared up compared $X.X of a income was As be payment [indiscernible] year. retained in recovery one as can QX the this approximately resulted of than to acquisitions from involved for XX% million partial million that was the with capping from for contractors the that originally

amortization income. net we I'd to going our moment adjusted XXXX adjust to to metrics and of acquired forward, presentation of the adjusted operating and metrics with the take will adjusted these change a EPS exclude income, further our intangibles. like to the discuss results non-GAAP of calculation Beginning

such As past, lists that early price of first acquisition and years. in significantly years the expense statement we've the purchase of X allocated the an noncompetes amortization the income approximately with in as in an schedule on expenses the intangibles XX% amortization weighed customer to discussed this

strategy and much of our We believe value business believe will on is growth $X.XX prior was a EPS with $XX.X trends in increase. we adjusted this XXXX. present change driving our for $X.XX $X.X the acquisitions Adjusted in clearer creating and growth performance as in that that On basis, the for underlying we shareholders. this million execute organic significant our the fiscal long-term picture million acquisition net year, year to was this income quarter, quarter compared up

the income Our our year for state including rate was of rate expenses tax book pushing with XX.X% the above items taxes. approximately discrete nondeductible statutory rate and XX%,

an and again majority to $X acquisition-related previous GAAP which of by expect $XX that of our intangibles this estimated is this on income effective the differences federal year. the million XXXX which included XXXX, and magnifies liability will we $X.X discrete XXXX, will in higher tax be net to of paid approximately We over entered rate in vast We is payments amortization the driven XXXX. shield applied with XXXX than million years reason in we NOLs, lower million expenses items that and expect impact cash in pay taxes of permanent The rate.

a have outlook more Assuming will as more in all and else expect to progresses. begin equal to pay future tax federal meaningfully we we from acquisitions, XXXX, clarity year tax the legislation on this but

mirroring AR above high came December with Net collections year. days guidance XX free This cash range, strong XX, in Adjusted DSO $XXX.X provided year million in for to growth or year-over-year down million year-over-year, our XX was $XX.X $XX EBITDA from was million prior. our operating year of finish days of the of the boosted end activities up by at the the million, by cash XXXX, $XXX.X up flow strong XX%.

Mid-Atlantic at the period for acquired that as business. result a of the from our of carve-out this mentioned the collections in I operations As year, GFL transition with struggled services region we earlier

we've been XX the turning rest good able the months DSO XX around XX. make By Casella days days from Mid-Atlantic to year-end. down over past to at at this of December at However, on at several June days in was progress XX XX comparison, bringing region the

we certainly have but lot a do work it's still of in direction. to right the So here, heading

December in ratio of of our was million billion bank had debt of $XXX $X.X As of and consolidated cash leverage our X.XXx. for net XX, covenants purposes we

cash As million of after undrawn financing revolver. maintained completed acquisitions excess approximately between we potential XXXX, in thus and far $XXX capacity today, of and

XX% yesterday, $XXX press $XXX midpoint guidance and at free adjusted range or revenue guidance $X.XXX our midpoint; of $XXX billion to announced the growth EBITDA of includes to of the million to for range in million XX% financial or $X.XXX release we in adjusted range the flow in million cash $XXX out billion million. the This the laid XXXX. As at in growth

year. for ranges completed balance in reflect and of acquisitions date environment guidance the assume a the Our to XXXX stable economic

acquisitive we in for material any policy. nor assume not While does expect to activity acquisition reflect guidance to be year, it tariff outlook our any further this continue inflation does changes the

of of growth includes revenue the we're On to midpoint. million inflation. and solid the the annualized guidance top pricing organic acquisitions our waste QX approximately million or in impact approximately X%, which includes rollover so and acquired cover and from which both $XXX line, business, ahead stay of planning In $XX growth approximately XX% X% aim far the in at approximately we

necessary a reminder, progresses. positioned retained approximately across pricing our revenue As to we flexibility X/X conditions respond to of collection the year well if so we changing as are

new volumes Solid estimate in waste collection in be region. book with with our to our flat expected churn continued in Mid-Atlantic business are that of to acquisitions particularly the reflected X%, down

organic from adjusted XXXX approximately to and guidance, is to midpoint. and or million $XX Bridging EBITDA million our base $XX X% $XX business is million at acquisitions the growth

XX acquisition, of back partially the from operations with expansion retrofit the the underlying benefit year-over-year, of approximately business, a implies of and of Western recycling completion to increased is XXXX of driven a basis the margin in of at EBITDA strong in in margin and Willimantic MSW ongoing approximately to following improved collection improvement by in basis business midpoint internalization Royal landfill online range basis This operating improvements our pricing, base existing points increased guidance. benefit guidance times of region related be including the and expected facility by adjusted XX that flat our approximately the Our headwind points to improvement coming technology. our XX of margin investment of volumes offset points

partially margin approximately our expected than representing of margin, lower a headwind This points. business to basis initial margin contributing a be EBITDA acquisitions offset by XX consolidated adjusted at is XX to expansion

strong team flow We work expect as to to our of adjusted XX% XX% at capital free the and but at annually, hard remains that. guidance, cash midpoint the goal we'll taking grow approximately X% performance achieve finish account a into XXXX to to working

significantly of connection of capital includes in recent million guidance approximately with expenditures upfront million business Our approximately which $XXX reflects investing spend with acquisitions. the $XX in

Nick. to over it turn I'll that, With

Ned Coletta

everyone. good Thanks, Brad, morning, and

of organic XXXX. with I'm development key John excellent extremely our of continued made We their initiatives, and progress including sales growth acquisitions As also our mentioned, throughout strategies on long-term projects. and team growth advancement proud our

executed persistent teams and operating investments. to with inflation our continuing well, Our programs offset core

to the to we people core values. important, as support and Just new our and continue take members to in to time understand grow our invest maintain help and our winning to culture ensure team

year. team last that deals over our growth busy really the transactions closing into in integrating completed and acquisition fourth the XXXX, the front, were On quarter was new and early

million X $XX of acquisitions, have vertical the acquired included X million the acquisitions million fit As fourth X that annualized remain of John or our with but can to solid revenues adjacent revenues, establish during We drive completed certain annualized of additional areas. XXXX, efforts a with we approximately acquisitions revenues. opportunities with is our start integration this right with $XXX markets, to XXXX year-to-date alone. quarter businesses that mentioned, off over annualized selective with $XXX densify new advance help strategic focusing market on in

continue Our office members, operations. values an sales to welcoming team integrate back win-win solutions, where job an with our management the long-term onboarding our segments successful teams for focus we early winning continues and another on It create premier to the and in where acquisitions across do beginning new relationships. successfully year core was team to establishing excellent circularity resource focus sales implement our can efforts organization, drive we customers important and on

with operating very perspective, the huge new and XX%. through team during municipal, of optimizations programs, to an examples revenues across the education, our revenues is year. including computing. across against multi-site generated our automated we well revenues continue of $XXX route even where a roughly representing segments, the This the XXXX happened this we contracted business execute of renewal truck XX% conversions, for core industrial From A and roughly retail few extra in higher annualized entire accomplishment onboard million

XXXX, XX which drove quite During team trucks rear trucks, Sean a of road, XX eliminate automated or labor his boat which from the converted bit and savings.

XXX We and little to sitting We're safety, to also performance. today. rolled a efforts bit These fleet. X,XXX wear route boost operating systems financial under continue shy our out

programs. all acquisitions great same to recent apply these successful Our present opportunities

second both our As few discussed markets softness waste and last increasing we the and quarter, acquired markets newly landfill focused volumes across on entered the given over internalization lingering special the of in in XXXX efforts C&D years. half last

this trucks long-haul purchased achieve lanes To transportation mainly strategy, our additional we from X markets new York New trailers and established landfills. and to

With we're driving internalization, incremental to moves, more of per opportunities we're year internalization. an additional XXX,XXX on for working XXXX tons these create

Turning to projects. development

equipment. in XXXX, the at facility. equipment full optimizing very January is upgrade the Brad for is Willimantic team recycling This busy As mentioned, system and and we technology our operating our completed

Taking off-line the was the second XXXX. negative a site to half drag of

generate project $X expect we However, the EBITDA roughly of million to in XXXX.

other evaluate the another conversion on infrastructure to to a focus term. management near in advance resource continue recycling opportunities with our and We recycling facility

during [indiscernible] completed of by of McKean. in roughly rail third waste landfill quarter To received phase first McKeen the date, investment tons The was we've X,XXX XXXX. of at

offload containerized tons the current flexibility in northeast not infrastructure disposal-constrained market. long-term almost us as we preserve solid our allows the are we per ramping site provides believe risk day the rapidly While volumes waste management to of to X,XXX

$XXX to of our million The with in ahead, for continued we of of robust and M&A active growth. diligence very very revenues our liquidity well be look stages opportunities sheet us our various and and continues development. return-focused As XXX pipeline strength positions balance roughly over

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

Operator

Trevor [Operator Romeo Our comes William first with the from question Blair. of Instructions] line

Unknown Analyst

of the thinking maybe on set And shape M&A how actually kind a point, and one First about follow-up opportunity the M&A. XXXX potentially for up just just Ned.

seeing you I sounds just bit the You last wondering in last It was is already quarter. you mentioned pipeline if had some like a really years X you're closed of for what strong from targets side, update activity X higher as give far then in deals maybe changes the than and assets. 'XX. could in buyer sell kind on of hearing any us discussions the to on competition willingness availability your an you are as

how you're year? of to kind Just up expecting this M&A shape

Ned Coletta

is for than active Thanks active, the not more as ever. if question. pipeline Yes. The spend

collaborate worked I are small the a just our build We and acquisitions our meeting know for more for culture we really the the that accounts integrity. team. us it us way us [indiscernible] always best There our mean is and with greatest companies continue John of businesses independent for of teams of have that's present I And to Eastern and of them constructively with with work. and acquisitions pipeline. one banking hundreds and that about that are opportunities XX directly Seaboard, we processes. love and minds to meeting hauling to quite continues stream to small a through do a down But bit national the that. sources great come the doing years we sellers some potential of and can have and ones are come what potential up us and really great that best the to do,

a there now. in those the right are lot pipeline And of

opportunities as to Mid-Atlantic various with deals. acquisitions we're a in York, and And start off big it's look There's in So high-quality for stages at excited into great adjacencies. well also to get Northeast footprint. X the in Maryland, nice few with throughout New Pennsylvania, some in And a and down Massachusetts. we're the couple of in with a such X X a focus other 'XX,

adding board, footprint. great So we're the across and addition to the density

John Casella

quarter If anything, as much we in it's this more fourth as don't done intense. we've do Normally, year. the

So really, it's interesting. really

bit. accelerating think it's I a

Ned Coletta

make right the with John, the amount all a people. our IT. pro this. our balance trying the successfully at And to actually growth, of I the acquisition we important sure meet have continue HR we sure integrate we and support always the mentioned and across add where should ops, resources look bottleneck lifting we're and continue even us, And growth. to forma is chasing reasonable integration do We're And and what integrate very teams, resources for to to And we making for can is. heavy have Yes. office, our really and back

Unknown Analyst

I Great. in a Charles theme, I like And Massachusetts, MRF Eastern acquisition the believe, it's in similar out least of acquired it guess. a kind you at then that was kind you the made I of that sounds reporting -- on there, have to if you just existing for of in Dow the merch plans what Boston. you was already about close there pretty see your opportunities kind with business? of facility wondering kind talk that and your synergy you could

Ned Coletta

kind Yes. called to ] this great it's Massachusetts of a acquire team We a job the stuff, and a in And to had servicing most companies, of really years. align his which high-end and brand focus market, fit able Eric were [ resource same customers. a nice his hauling his business over really company Eastern an Massachusetts across Save done ago. the We've lot the recycling with is great institutional, well started industrial ours. amazing management especially years that And company Massachusetts, Casella. values, Livi team has Eric XX a

it's complementary, on on the we a where big as side routes. on the you overlaps then side, have overlap. both But hauling So very processing is said

our forward. streams space some Some be to probably additional can handled going And unique recycling capabilities gives us facilities. industrial it of processing in more his handle

very We're acquisition. great So a complementary excited.

Unknown Analyst

And then you mind. if one X quick maybe don't more for Great. me, just

New situation in Brookhaven wondering give Just update kind the if York. could on you of an

impending we the XXXX. about I end of close the think at talked

us past the update that those and stand if of give you Can come market in portion we're back to just expecting an on kind Casella where in volumes to good still 'XX. of you're point. a that Now things

John Casella

Yes.

and for is [ it sure. of our taking Brookhaven up but are well. started as is material, slow, but ] at that that sands think tons I some off closed XXXs our facilities gravel

So the would in certainly them up like see up direction. right to but more, slightly, we moving

So improvement XXXX. we're likely in that we to in But -- see to continue did fact, Brookhaven think close. see

Ned Coletta

Yes, for [indiscernible] C&D it's closed

Operator

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

Patrick Brown

business. the could time, Long years. XX in been hotel John have

John Casella

think. I Yes, just

Patrick Brown

But hey, with quick, help is all impact? you wondering just can us an just Brad, QX? real weather possibly I'm this having if

Bradford Helgeson

Not significantly. I every deal year. with QX, weather obviously, mean we

different out So in anything trends. particular I wouldn't that's call from historical

Ned Coletta

this tourisms Never season year, in years base And Tyler. if anything, the Northeast. in great XX

Patrick Brown

of Okay. there? I we down remarks, enjoy the prepared guys to Ontario what directed where basically, it How are Can tons -- going out mention know about those get probably that you can will you operation play didn't in the but happened we kind that. talk of wind

John Casella

mean, I we've out. that that years Yes. I X think got play to

So look I to a able I and at facilities. tons in we'll move We'll from no other good it appropriately. in that a those we're to transportation-adjusted think be close that there think point out at basis, time. alternative because But position interesting is to our it's this

in be the impact first we out. be going the to in it those we we're be the don't that negative to transpire. vote it will but time close financially, close a county could I with a think So see prepared direction. what XXXX, there's wouldn't at happen. that they're that's to Anything interesting that to going that time all. change But And mean, at obviously believe this from in point

Ned Coletta

know, complexity you which XX within as know, York State, but miles of Senecametos the Tyler, is as landfill other in as may well. well, which New it's permitting in So their maybe have largest future some

to We've of along actively landfill course, move for to to we're positively. the opportunities, a got been take annual from permit we've And X year continues McKean tons a at our that to some where tons sites. working process permit a year. million really other So expansion and looking years, on X Highland XXX,XXX

our John as said, tons So for we customers. have homes for our and

complexity shows just maintaining of expanding and it really While not capacity the the ideal, Northeast. across

Patrick Brown

Yes.

Okay.

it of kind opportunity a more bit sounds like is talk a same little sizable we internalize can So in that vein, times. to there

think that mentioned like is headway you play. numbers? Is It benefit? EBITDA sounds in but incremental kind more you the defensive unclear, X there is I'm a markets. it of that Is a made in little just already Or I an 'XX, benefit?

Ned Coletta

Yes.

Sorry.

our internalization do that have we XXXX in So benefit. numbers,

And time. markets landfills. in ordering tons was kept know, as you many Northeast, cases, trailers, takes all the didn't decision in it internalize make trucks, it that our the of over with we through the if In new of we instantly couple last always those long-haul Some you sites. third-party look to back years, of flowing to

and own look this 'XX waste cash to headwinds we amount We with we of the create construction, the of moving. got we at get to maximum said waste our demo into got value. streams, As some special get landfills, in

those opportunities So the XXXX, through the are we guidance. we're moves There of into we're we're based making return right summer, and the coming sure for we that, other fall and when one us moves more, that. started making to do do those every is decisions on late in our working happening

Patrick Brown

Okay.

So the break, then bring it to kind of I'll Brad. back

it M&A. let's I $XX you of of $XX million to hear right, So bridge EBITDA of I million Did that $XX Is right? think, is million call year-to-year. the that

Bradford Helgeson

Yes.

Patrick Brown

part roughly And other idiosyncratic cetera. I internalization organic But things, it seems positive growth. et represent some the like and would X% closure, think you Willamantic, got you've said will Brocade

make Because in idiosyncratic sense? like talk about money technology, Now with like second. feels that we'll benefits. Does that's you're conservative But what that it are and it a pieces? spending those also sounds on those pretty

Bradford Helgeson

levers is conservative. I think of we fact does. results wouldn't disposal drive highlight have We guidance year-over-year. that I you think It it our number the characterize our a appropriate. as But at to

year-over-year. would and after operating what obviously volumes So just the about, Willimantic year as story talked a things we're be falls The it's our XXXX. that's [indiscernible] $X least our is will obviously, efforts, then you and business in improve said, prepared market, internalization the for to -- a remarks, under year, Ned which in necessarily that pricing expect Ed landfill that And is I sometimes that the of cost hard always always pursuing. come notwithstanding about you we at the say would improvements, C&D year-over-year kind internalization, category, are million there out mentioned them. benefit But plan collection his idiosyncratic the as don't and way

is like appropriate. So our we feel guidance

Patrick Brown

you on is -- what the And going Are technology Perfect. Okay. what's spend, there? net?

Ned Coletta

Yes.

were -- of business are year types as in a of the the processes part invest So what capital And lead we the systems. previous in that's -- expense. continued see to our continue the of and be acquisitions, scalable new just always to to systems. and we've our grow, we G&A with some need we're What both successful right probably especially year. And looking now, we next to do as

as just Our points the side points, next on years and fast we just to couple And possible. the think We another running G&A IT be will around we're of acquisitions spend that's spend. basis have is we're And onto a over and last redundant XX our alone old up don't systems, as up -- with expense our those XX getting some systems year. basis it where permanent systems.

and version. And to of then in the latest upgrading [ used ] called years we're doing XX and the softpack we've for an long-term we're our that of system upgrade order-to-cash process modernizing

dollars more So we're right a more through And office dollars. a not tens of of now. This to just something whole we're need We're systems. this connections automating there the automation we've is millions with back of doing crazy technology scalable not new get through systems years. is of used of scalable millions a system. our processes, for -- focus And of lot our and to investment, other we

we we're customer a market out the now, it That's think a investing right side continue new bit and on through we're portal. CapEx, bit scale. will So experience, which a now to as pilot G&A right but help a excited digitization that customer we get will as part little the also more more to bit of over of well be

Patrick Brown

my then time last bit. talked position to tax Brad, around position. paying X cash little your get you and NOL do it question time and your And Perfect. this about I Okay. -- a

taxpayer But you cash number could... a fiscal 'XX. that million that would say you in $X be did So

Bradford Helgeson

correct. That's Yes.

Patrick Brown

Okay, that's right.

on So will side in the that substantially though, early just too it number, federal guys Or could up you a go is floater? update and 'XX?

Bradford Helgeson

is happens of Yes. mean to because it to new depends to too is early legislation. upon I certainly tax obviously, the implement us. administration policy discussion lot beneficial tax be some the changes this would lot of that a with what And with the a

-- being all equal. comment the do best is I on can So I else

it So law the tax is today. remains as

in of we begin the through pay more we then tax NOLs shield meaningfully. to would Given federal to us the year. this XXXX, that assumption, And expect would rest

Ned Coletta

we really on with stock value. we've been convert with asset to is shielded statement the where have dollar we every get income successful But even Brad, doing purchases the NOL on things purchases of us. or if topic, either one that, that And will step-up acquisitions structuring not asset an cash taxes we became didn't

in tax of of So higher shield XX give of us that depreciation future. a cash acquisitions the taxes will lot the runway years

So focus to structure there as trying we'll and helps a that acquisitions us tax way value get well. to in to continue

Bradford Helgeson

point. prepared activity. remarks, other Yes. deal this And is equal, being That's to things. else refers One mentioned really is all and tax I the huge legislation X in a my

we isn't talk And assuming way, going do so are that advantage other about that is structured a our deals tax no from forward. the that I showing outlook plan

Patrick Brown

structure Yes. Deal matters. Okay.

Okay. Cool. Appreciate it.

Operator

question with Goldman from line Our of Bubes comes next the Sachs. Adam

Adam Bubes

there update much to And XXX just collection margin opportunity in were acquisitions of XXXX to is these sort regenerated of runway of and the think labor lower back Is sort on we've way the the sales. second direct half us fleet year-to-date, of expanded looking Given from as sort now contextualize opportunity opportunity? of how that that automation today points you can that costs a initiatives? potential percent I XXXX, a basis the good

Sean Steves

Adam. that take I'll part, first Sean. This is

we're opportunity next we So have over years. going X area, the have to of we couple our Mid-Atlantic hundred in well. automate as Valley our that Hudson area, in a opportunities

acquired support the So X for X team years. not it's going counting this year. else op anything busy to That's we keep to

few pipeline reduction cost of the ops for next big of years. So a

Ned Coletta

routes, and as they direct took And are head the exactly automate well. an we row load the XX example, that's the on this we out. XX held nail how load last trucks from because many we eliminate as talked we year, I labor the count versus we hit are about rear and point, head drivers And helpers road have on rear trucks you taking the times where off when

story we'd especially as So really in the our running we -- basis we historical had. opportunities, as that in we is the of Mid-Atlantic, direct XX look to higher routes be helpers, like aren't have to We to which standpoint. efficient the inside also want load like to We'd not safety automation routes And see from at labor as many and that markets rear than points speaks that automation everyone occur. to truck. a many really

Sean team, And We want direct it big to number his labor so the to you down. and exactly right. get hit that focus

Bradford Helgeson

taking the helpers the back the trucks, labor only off And road. is we But not off we're of taking factor. are Yes. trucks biggest

really in the and fuel, you down back of associated the costs benefit So all see up truck. with maintenance, cost the terms rounded cetera, et a

Sean Steves

business a is load from of perspective fleet oldest Yes, as line well. the the age rear

So there's to multitude automate. of a benefits

Adam Bubes

then about just revisiting magnitude travel And costs us can the incremental in terms of the fee And versus you're you what's that Terrific. economics internalization internalization? of think for help opportunity, at savings? incremental the looking opportunities tip

Ned Coletta

Yes.

did XXXX, we're you're capacity. could the if may landfill of time at talking and difference not full you sites third-party really the out So full, looking that app have really -- ton internalize excess is be versus about the then what you that taking we in run

quite another can internalized a can ton putting into be So additional tons if of landfill land cost the small. we variable

your of cost Of the the capacity. point, building to capital course, got get there. you've out trucking And additional that it investment to

of these into are one incremental on ton incremental situations at decisions, an a XX% look will that's But landfill. coming individually. these each XX% nice margin So to

Adam Bubes

talk continues business your for I one It accounts to me. want really last for then a national And grow to nicely. about just moment.

the think cross-selling just about you of in in think acquired you XXXX. that high assets. efforts digits on magnitude and forward recently business up talk algorithm how about I Can the single growth going

John Casella

great point, Certainly, Adam.

account very It's tremendous opportunities industrial Mid-Atlantic of component There's One distribution very, the is of amount the major right. the in biggest centers. for us standpoint. from a

the Northeast that and many distribution center the for I area, facilities. many, it's Allentown-Bethlehem think

So there a from there's a account standpoint, national with industrial runway the component. big

contracts bidding that municipal X, municipal fourth successful that X we've team to think standpoint as think been were very a a -- quarter where perspective. we've -- out I we X we from with successful knock well, the or from the I in

that team in big some doing really is got footprint. So terms We've well. expanded the of opportunities

work. component. services to know We we how them industrial to looking So been large their has XX forward waste to that The where do to it. the people and successful inside team providing recycling with put X to facilities customers we're help those can very

Ned Coletta

team in we truck own has our And talk customer one the to relationship interesting John, thing the is owns instances volume, about price is about and then where when customers. And we accounts those revenue talk national many recognized. service our

business, or the volumes industrial So of are growth when be lot group, down line you our look they national we're institutional a at accounts good. there, whether accounts in growth while the feeding slightly intercompany or actually windows collection of

-- little customers down for it's forward, the better So really tell see or that a focusing with to residential. story that's amount but a us volume having it's we're been huge enough probably premier needs of to you some those real some engine that a great a because declines landfill going wins point when in subscription that We're national volumes not of small of churn on in accounts.

Operator

the line Brian Stifel. question Butler comes from of next Our with

Brian Butler

in just what's was you of and first one, the where inflation XXXX going about the kind price/cost positive when we the like could built looks into look the XXXX. quarter Maybe talk at it Just internal spread, outlook. into fourth

Bradford Helgeson

Yes, Brian, it's Brad.

'XX As our to in we inflation. the we into and expectations, finish of expect be X% broadly 'XX and heading area

spread, waste So now. measure precisely, it we're right about of least to XXX really, in what like basis is It's X% points that's what tend XXX we we're feel positive be sometimes to of to ahead hard XX solid we business. but at least points And inflation. target the targeting basis at to

Brian Butler

that M&A customers any Okay. or And are to there's think about you down weakness some kind levels X% of versus is had. that the of the considering from shedding When you other flat for the Great. much just guys assets there? how volume acquired then have 'XX, underperforming outlook of

Bradford Helgeson

I In I to mentioned volume all the legacy fourth it. collection would call prepared footprint, the I'll of in across business, business. line my it, the was remarks, of quarter, lines of in actually our flat up all say in as

growth, the of depending business. of modest a real level seeing stability there the we're market on line and So and

quite volume that customers that what with we're we need shed they pricing So Mid-Atlantic sure margins means, is that as where decline the I'm and to in term of where price particularly the aren't in intentionally but on think -- driving those appropriate really, we be. some never focused isn't concentrated the

Ned Coletta

managers put sales I'll And those a organized the actually account we minute to to volumes multi-site grow look talked stretch we've We've industrial, of a resources from do it in When ago have the an segments. ground those well. that segments, internal about success institutional, retail, we Yes. on at that across you help come resources got back goal those point we've shown additional and that, municipal as in lot area. and our specific strategic force a as and well. the sales goal

well. and we're I out that because really do create think more a to the to information there more that's well try types of can margin-wise little customers those very So them as We going value get for are are sticky. very,

Brian Butler

regulatory Can about that, All you're right. New Great. about in England that's of you handling maybe in landfill one. talk focused? the And how last then especially X PFAS at very kind and thinking

John Casella

and we're front ones up is operational. other the of reverse it. mean up about that are We've X results. that Waste our I think got facilities USA osmosis processing PFOS, in foam the facilities I We're and X in fractionation Sure. excited facility

now We and back back technology the it. in to and concrete doing technology. it they're the excited the the the right landfill. put PFOS efficacy it know the it put agency about it and do I there. in with solidify believe how landfill, in we It think Vermont. we're But the operations program then is a of I solidify pilot in the separates and

just cost many our kind point, And technology flexibility it to And at lowest just Brian. what's it's job. facilities. gives us our to treatment it more other to really we're it it our municipal facilities. be be take likely this to applying able the the that to different to leachate tweaking going see sewage we're of do we'll that at see Now really facilities can

Operator

question line Tony Investors. with Bancroft next of the Our comes Gamco from

Unknown Analyst

done. Well

you asked done you've and your just grown I You last And years, this large sort M&A of updated guess, maybe any Would want guys before, thoughts do? a recently. rapidly potential of few give potential have just integrating these acquisitions. thoughts could -- us on a maybe really all funnel I further of that in do? but there? success any transformational that to based your I there you just great Just job Is out of could you on

John Casella

said likely there doesn't we that that historically, I to that wouldn't in knitting think we're seaboard. available us came have But strategically be terms much a likely of are mean opportunity at. stay which down -- you're that take what to the look that we a see up is would and Eastern larger

never Tony, the Northeast So I say, we'll again, and going seaboard ourselves down drive we've what's of continue then as the with think and done be the tuck-ins are that it's fair come do you top acquisition. in And the Mid-Atlantic you. opportunities front to of to GFL over the on available to to what and eastern going know -- to continue the execute

to all then is our their pick we that's look at go we'll So come you -- never say and it. a us, never, choose wants and differently. but opportunities strategy those If look business. can't to not sudden certainly monetize and somebody to of when

Ned Coletta

night great as so by acquire really the at them much there. to can and every us organization do helping of is gain successfully for get and gain well. diligence. structure, dig their business have the businesses integrate better scale goes better But a ability and integrating better We -- built ways jobs, best the as of what have many we team leads resources our and in doing we across practices, we like acquisition

core So it's think. kind I of confidence,

John Casella

go-forward We've I X the in bought last culture years got revamped thing made X ago. XXX up Tony, in training the center. important. well, basis facilities. important. people is that the the is done a can of We've X separate number facility. made train years to think the Maintaining the training We we've We've in areas HR. And training investment the training other college part a as of really X extremely investment over we've on is

on people X,XXX critical doing as the core how the number grown. to employees adding way particularly you're leadership We've months. especially training, grow important, in we've that's understand basis, of training, last XX a go-forward So critically values, run added component the when business, helping people we a want total the we

So in. a made critical the component, something that already investment we've

Operator

to call Thank closing now to the turn I'm in like John and for further remarks. I questions back showing you. queue. would Ladies gentlemen, the no

John Casella

and April. joining discussing first forward day. Thank you this us everybody. in very great Thanks, results to for Have our Great. much, a XXXX look quarter morning, everyone, we

Operator

Thank your that and gentlemen, participation. you concludes today's call. for Ladies conference

disconnect. You now may

Casella Waste Systems (CWST) 13 Feb 252024 Q4 Earnings call transcript