Fri, May 2, 8:05 PM (9 days ago)
**Casella Waste Systems, Inc. (CWST) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $417.1 million, up 22.3% from $341.0 million in Q1 2024. - **Operating Income:** $3.1 million, down from $6.8 million in Q1 2024. - **Net Loss:** $4.8 million, compared to a net loss of $4.1 million in Q1 2024. - **Cash Flow from Operations:** $50.1 million, a significant increase from $7.7 million in Q1 2024. **Profit Margins:** - **Operating Margin:** Approximately 0.7% (down from 2.0% in Q1 2024). - **Net Margin:** Approximately -1.2% (compared to -1.2% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** $50.1 million, up from $7.7 million in Q1 2024. - **Investing Cash Flow:** -$158.8 million, down from -$30.1 million in Q1 2024. - **Financing Cash Flow:** -$4.7 million, up from -$9.1 million in Q1 2024. **Earnings Changes:** - **Earnings per Share (EPS):** -$0.08, compared to -$0.07 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by acquisitions and higher pricing. - **Operating Income Decline:** Due to increased costs, including higher labor, fuel, and acquisition-related expenses. - **Cash Flow Improvement:** Significant increase in operating cash flow, partly due to better working capital management. **Trends and Uncertainties:** - **Acquisitions:** Continued focus on strategic acquisitions to expand service areas. - **Inflation:** Inflationary pressures affecting operating margins and cash flows. - **Seasonality:** Lower revenues in late fall, winter, and early spring months due to reduced waste volumes. **Future Operations Impact:** - **Liquidity:** $675.4 million available under the revolving credit facility and $267.7 million in cash. - **Debt:** Compliance with financial covenants, but potential tightening during seasonal low periods. - **Inflation Mitigation:** Flexible pricing structures and cost recovery fees to offset inflationary costs. **Segment Performance:** - **Eastern Region:** Revenue up 4.5%, operating income up $1.6 million. - **Western Region:** Revenue up 23.2%, operating income up $4.8 million. - **Mid-Atlantic Region:** Revenue up 84.9%, operating loss increased by $0.5 million. - **Resource Solutions:** Revenue up 9.5%, operating income up $0.6 million. **Conclusion:** Casella Waste Systems, Inc. (CWST) reported mixed results for Q1 2025, with significant revenue growth driven by acquisitions and higher pricing. However, operating income declined due to increased costs. The company's cash flow from operations improved substantially, indicating better working capital management. The outlook includes continued focus on strategic acquisitions, managing inflationary pressures, and maintaining liquidity.