Company Benefits from Reshaped Recycling Business Model and Higher Commodity Prices : Revenues Up, Loses Down at Casella Waste Systems
Revenues at Rutland, Vermont based Casella Waste Systems, Inc. (NASDAQ:CWST), were $133.8 million for the three month period ended March 31, 2017 - up $8.4 million, or 6.7%, from the same period in 2016.
The regional solid waste, recycling, and resource management services company said that the results were partly down to stronger recycled commodity pricing for fibres.
"Recycling commodity prices were up 22.6% sequentially from the fourth quarter of 2016 to the first quarter, mainly driven by higher paper and cardboard pricing," said John W. Casella, Chairman and CEO of Casella Waste Systems.
"Higher commodity prices, coupled with the changes that we made over the last two years to reshape our recycling business model, helped to drive strong recycling performance in the quarter,” he continued.
Other key figures for the quarter include:
Net loss improved by $7.4 million to $200,000 for the quarter, compared to$7.6 million for the same period in 2016
Adjusted Net Income (Loss) Attributable to Common Stockholders was $300,000 for the quarter, compared to $7.7 million for the same period in 2016
Adjusted EBITDA* was $23.1 million for the quarter, up $3.9 million, or 20.1%, from the same period in 2016
Operating income was $6.6 million for the quarter, up $4.6 million, or 232.5%, from the same period in 2016
Net cash provided by operating activities was $10.7 million for the quarter, up $9.0 million from the same period in 2016.
"We remain focused on creating shareholder value through increasing landfill returns, improving collection profitability, creating incremental value through resource solutions, improving returns in our recycling business, and reducing leverage through strict capital discipline and debt repayment,” said Casella.
“The progress we have made on our strategies clearly drove positive financial results in the first quarter, with operating income up $4.6 million, operating income margins up 330 bps, and consolidated net leverage down year-over-year," he concluded.
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