Casella Waste Systems (CWST) 26 Apr 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Casella Waste Systems First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to Charlie Wohlhuter, Director of Investor Relations. Please go ahead.

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

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

of in the responsible by service. their safe fortunate to driver X drivers, manner.We while our for have are to Year a operating first, enhance Dutton, Sean their Curtis They are Giguere. John & Machad Waste waste Cesar details our solid minute several first on been Thanks, everyone, like our good exemplify members conference results and credit welcome Charlie, I highlights and Brad our morning, core and who our Ned begin go strategic first, team to quarter have into to and safety focus Recycling Association the a industry.They of take to with through of representative overview.But Rhodes, remarks our I'd be call. first and will then more recognized quarter a service today's and and to earn communities a put values recognition National and of who have XXXX strong and the

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in running you to in begin ground the As hit XXXX. saw yesterday, we release our earnings

integration drove we to level. execution operating integration of entire Revenues high impressive year-over-year, strong improvement, that strategies resulted our while well is ongoing and of the speaks XX%. serve you in growth other, very demonstrates a our a successful very senior has and commitment team in is performance we of our Beginning proud shows. over business that's strategies dedication few performing has margin This I our positioned done well communities the of the basis growth exciting of history Our which XXX performance.Looking and up XX% the acquisition point company's adjusted with of of team.On each now a our at EBITDA know. customers the work were This of foundation as The the hard key really to and operations. is landfills. been note, service are priorities, and Their some the our of and the us acquisitions and among key team evident be is another year as to truly largest culture. nearly the grow. for of we The

quarter, economy. waste the in with special construction is first signal lower weaker the be this expected experiencing and C&D tonnages.To we're clear, a or a sign from not were down we volumes activity As

up fact, volumes market disposal being landfills, influenced are X%.C&D followed landfill in We at of the In east revenue. quality well the this dynamics North a our in focus by were quarter, the is disposal projected nearly following of volumes we X.X% end as that the to the up our readjust as collection roll-off closure.Regardless, that at year. large will to anticipate continue collection by programs operating close commercial C&D

metric price landfill quality good Our stat the stream. to a of our ton is measure inbound waste in improvement often per average

collection line. basis.Turning and digits of positive We've a executed lot third strategies across on well this the percentage to increase advance momentum, business. our as we was For business have consecutive quarter, the double the side of the a

nice in automated intelligence investment data Our real-time and loaders, routing side technology are benefits. providing

as across capturing programs fleet. steadily are collection productivity safety We we out roll labor, enhancement, our and these

diverse region TRIR labor terms efforts, we favorable experienced work organization.In our a our customers.Our trends pools of more workers. and reflection the of and quality. our of turnover better this aim ongoing and numbers.Collection the with are ahead focus our for incentives of XXXX, team these highly into quarter, make Sean in customer a positive safer in EBITDA on keep more service showing repeat integration. accuracy, initiatives, number for focused margins improved in gains costs excellence frontline fleet us.We his driving more to metric in safety informed year-over-year points with aligned for quarter. creating excluding attracting up part of efficiency to is the in Steves in and is business. a down low routing operating help plan and We've We aim deploying larger the As automation we environment contributions first in already with This routing XXXX adjusted the basis on and to opportunity synergies we are are Mid-Atlantic decisions than first in applying more begun the acquisitions. projects these and the up These XXX service completed our new programs analytics

our across experienced recycling the of investment we equipment a equipment, with for demand remains for adjusted selectively see provide.On delivered see on MRF and These MRF runway these growth the the full was for with where prices Resource we upgrade first will grew was ways our growth similar line generating and all commodity onboard customer a success new business segment off and to in we enhancing in our business, strong, be a solid returns.In strategy Mid-Atlantic business, certain The was quarter improve adjusted enable of of in in in upgraded Modernization entire will customers, region, operating business finally, incremental As will is various our over of our Boston Willimantic customer opportunity contribution EBITDA strong customer sustainability help business. EBITDA ahead in a this while terms to cylinders quality improvement. in services enhanced efforts grow is infrastructure, pieces for and this better we from growth quarter. the investments, an recycling performance the the moving the like the it'd year, the capabilities professional whether further that strong the sales this Solutions the tailwind.However, end Yes, grow and are we retention overall improvement year-over-year constantly national widespread. segments.And we that results the replacing namely part of which margin greater to our of processing firing product bit account strategic efficiencies, really or quarter. quarter kick in the basis, our our later looking be time our we quite recovery we satisfaction.In

Our to drive core working opportunities providing and us are strategies value. further well operating with

turn of it to organic We development results. have through projects robust remains our course, pipeline I'll of And, with to M&A the Brad exciting a come. opportunities.Now, number to over go

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

with with down volumes line align were were across collection were an of as remained per a down.The improve segment year-over-year, were of away year-over-year, and XX% growth tons X.X% were Solid business the and XX.X% volume the waste and among revenues quarters as of commodity and ton commercial pricing aerospace.Resource up the the Price MSW price X.X% several concentrated preserving soils was XX.X%. by down we growth down the X.X% per landfills the up in quarter, disposal customers XX.X%, prioritize and up volumes revenue contributing we work quarter.Revenues the at over X.X% both driven QX lines the down in were and mix which next reflecting Solutions price ton volumes to residential in sludges up of on XX% declines revenue help but $XX quality price the year-over-year, XX.X% we and landfill with or revenues volumes to growth our acquisition volumes of up average and price in X.X%.Revenues shift continue up up average experienced in over X.X% business positive X.X%. were up X.X%. expect landfill increase year-over-year, year-over-year valuable lower price acquisitions was business of margins, XXXX. up our while front-load we XX% roll-off streams, from in landfills the X.X% C&D into of priced soft, with Volume line also and

manage from this work prices remains commodity Solutions down while we estimated achieving few with and down year-over-year synergies in fuel. of a of experienced of and prices course, total and higher Mid-Atlantic the percentage was in for and of in basis a and efficiencies Twin price retrofit growth, fourth in million costs X% the approximately revenue of but MRF including The offset in million was quarter, key elevated has programs our from margin only bit change the same-store is was EBITDA a Resource with up of has terms.At that nearly of the landfill XX cost but, revenue as from weather our points contract year-over-year Resource improvement.The did driving XX% XXX points basis XXX quarter. basis million quarter at a the acquisitions million for to our contributed synergies, weigh margins G&A strong in Solutions adjusted expectation up to year-over-year, Waste pace swings XX.X% X%, by operations inflation expectations, spread margin basis partially year-over-year, collection up performance points volumes we've were margin million fee or $XX.X of and in up basis, million of The year-over-year was included points million leachate approximately $XX as X%, our of improved the prices of a was work.Adjusted but basis fully another the been year-over-year, on the drivers. over acquisitions of the price nearly the in been wet adjusted was increase adding impact pricing which exceeded to MRF up year-over-year, growth. $XX.X in we structures cost up million the down commodity consolidated or yielded you investing by particularly organic our more $X.X Accounts on and slightly markets.So, margins and operate the they million basis $X.X administrative XXX percentage Of quarter, quarter, biosolids pricing driven offset and outpace in down business, again, price XX.X% in level, revenue. line the continues higher The points the million And business.So, municipal million acquisitions company quarter, growth driven efficiently. inflation recycled $XX.X of Bridges. represented revenue up cost the the company EBITDA up quarter, year-over-year.General $XX.X bridge Boston in acquisitions, was was the of points the moderating EBITDA primarily new in margin. $X over year-over-year.Once the the Boston operating positive to points at X.X%.Solid from as down high basis XXX were XX with with particularly of operations. to up cost approximately million EBITDA down the the X.X%, a higher increased inflation, the million support as in the $X.X EBITDA the $X.X National historical percentage or in in operating revenue course, including volume both increase from commodity as our in basis These quarter, acquisitions excluding bit acquisitions. a that sequentially and operations benefits related $X as performance, XXX and points Adjusted selective were on increase quarter. initiatives line quarter was $XX.X of mute with XXXX, lower of recall, $XX.X more headwind base acquisitions. quarter.Cost of within Deflation the $X.X approximately costs and retrofit, recycled a a revenues, XX was by was the $X.X commodity million region from margin.As contributed million

as activity. costs with here we of to year-over-year time up and $XX.X increase $XX acquisition the amortization were We gain million resulting from expect the over further leverage million grow.Depreciation recent

put D&A last few the XX% in compared for revenues was driven we quarter, intangibles.To each accelerated particular as heightened in D&A of years perspective, for this expect explained amortization in to our acquisitions with I acquired acquisition, the As of quarter, the by base associated XX% the after over identifiable first business.

on net which by XX%.Adjusted million million compared million million was FLSA loss $X.X year, rate with integration. outflows liabilities, accrued of the including down from quarter, of legal in weighing quarter discrete GAAP of and the in nondeductible changes in quarter.Net was in million the loss net first $X.XX AP itself year, above XX% of to balance million in accelerated a timing, of the quarter, was acquisitions a $X.X in loss earnings. the expenses DSO.Adjusted $X.X GAAP was XXXX. quarter, and Our a quarter over of cash and by effective modest the resolve to $X.X tax flow of the million of in closing was diligence, operating the to in higher our This $XX.X million was compared cash associated and was rate pushed items driven payment provided lower settlement the offset Adjusted due $X.X AR was net certain $X.XX the by near-term the of activities partially to free the $X.X in quarter the should quarter expenses with impacted in statutory in million prior of XXXX. first by the rate $X.X quarter a assets D&A in improvement D&A and EPS the approximately compared positive due loss and EPS acquisition $X loss related to

perspective, in cash all is quarter, weakest the this particularly know, impacted further I'm seasonally a CapEx. our $X results were replacement flow first by from quarter higher sure you million and quarter As,

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

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

reaffirmed profile Our press and and in XXXX M&A to for across opportunistic on execute guidance our continuing our pipeline.As leverage strategy yesterday, to our us stated key we metrics. all will be liquidity financial release growth in enable of robust

is While consider to year, start the this it's to great business a off guidance. premature revising

year ranges in of seasonality a cash our particularly flow from imply year.With guidance turn normal the X the plan Ned. that, I'll to this growth but the year, quarters significant Our last with full is our of over business and standpoint, this for consistent it

Thanks, and morning, good everyone. Brad,

million we executing roughly for XXXX And early on and a operations, our Larkin, we're approximately our through route trucks limited and forma completed have for has revenues.Our drive quarter, automation the efforts, XXXX against XXXX efficiency routes last in doing systems great team $XXX optimized. delivered office. into and operating when synergies job pro and XX we are annualized is date, computers and each are have XXXX led operating As trucks onboard our plans. been through this team and to region route XX these acquired back automated To at against these and in early expect discussed meaningful for integrate efforts.We X acquired into acquisition.Our by achieve hard work successfully businesses successful trucks side load reductions XXXX installed and of optimization late ordered Mid-Atlantic well given to tracking newly Kyle acquisitions cost

the we efforts, in of working extend synergies to a their the you on A well Bridge's the and region we integration in Through these the migration for plan their and with IT, successfully early I'd service.To are work have to summer quickly for eliminated big migrations team We tracking help ensure years.Our drive successful $X our locations. from since to And, plan by ahead with advance the thank customer to well to have and Stehman route XX eliminate entire systems finance special your team GFL date, costs. all Casella to Michael Earl providing you assisting of X-year efforts recognize X operating like to close last final GFL. completed us and synergies teams April, hard systems.Our against of team thank operating cost and transition Twin tracking trucks million well been services $X Mid-Atlantic over Scott partnered are led care of the synergies has team top-notch next million we synergy Western customer tirelessly the operating to or extremely our integration.

approximately today across pipeline region. potential the is million footprint, $XXX acquisition revenues Our entire including of our Mid-Atlantic

positioned well in well are infrastructure, very side, equipment we operate the continue We in including deliver the return-driven continues upgrade in forma incremental another The to facilities XXXX.On quarter as pro acquisitive strong year full have the of recycling Boston solid discussed. facility to to sustainability John first to development invest above growth.

Willimantic, success to expected of is coming that project full XXXX.We QX RNG for scheduled with facility the Connecticut first in upgrade, the Given our Ridge upgrade final Juniper be XXXX we're commissioning midyear in in facility that online of of weeks. expect the our Landfill

Our with second Casella while facility, online Casella.In generates to the we the projects of from a sale additional half with investment gas by third-party X the an developers addition, stream royalty coming RNG KOBP XXXX. and in will capital owns X anticipate operate and X RINs the of

first and to received.In day this Our expect our test capacity to sludges. soils tonnes loads McKean, be to phase, per the rail with build-out progress containerized online at and landfill, also infrastructure the make team facility we we're up first in our of on continues online mid-XXXX MSW, bringing X,XXX of offload Pennsylvania offload excellent the

team welcoming long-term over and the we it set demonstrated maintaining long very important we on slowly term about executing as by and grew growth. I'd against continue our next especially organic the expect culture less XX% core this viable an constrained X,XXX our to in growth.And in outlets amazing investing years, team the positive in ensure people. our through and or we quarter, flexibility, capacity and system more risk to to further ramp the XXXX in questions. with the turn up as our and grow operation want And This are very for by to year We that, members.As near-term as we organization, first to job Northeast.As developing shareholder back in our volumes is management new focused are drive waste effectively and is over nicely did few continue investment disposal and acquisition core this about to to our an profitable value Thank operator team onboarding last employees strategies you. as like value

from [Operator Michael line with Hoffman Instructions] of the Our question first comes Stifel.

morning. Good

really first really lead Michael, NWRA. I leadership position in a the the Good team entire it's congratulations new and foremost Association. and think, for at at energy leadership perspective, from exciting. Casella to morning, our have From big here to National the exciting your It's

-- So first foremost, so and

Congratulations, Michael.

Although we'll call you one. on last miss this

up. true you kind a now choked awfully with landfills. Pennsylvania of you. landfill got where Well, got so constraint. say tons Well, portfolio in there's Thank I'll have that's withdrawal, I I Those because real probably has are words. me will I'm few legacy a mean, to anyway. times going go to listen

So, gotten there's not what the about you, in part move this. where And or that or volume market in whether strategic of market. how management they we just is go starting a is to legacy we've around have McKean are more on I to question side of on has continues is to a because rail? your hearing access place can? general, prices opened finding and And they about why hauler use strategy the to dynamic third-party price the your react more gotten and options out move?I because stay ask up places the of to a in because prices What's thinking but the think the by you the moving strategy.But move tons smaller where getting have that, market favor or level landfill you the book in we're

even Like It much and be takes rail time you're into ebbs an permitted new and year. capacity many next new to going the like relationship. or Michael, and to are landfill many, permit a transfer this flows, if open seeing seen never last over built right? a to close is there's a to of years that you've you're few perfect linear sites year operating.So, station this get anticipation or decade, some going to going Yes,

chase So, still chose We year and especially what quite the system expect capacity, sites never new and it of system, with sometimes airspace to come over of first at the focused time. has market, in capacity perfect the on what term, of able the transfer on a while life. like disciplined. We're bit is just sucking not end new is and back become over and ultimately end sites the couple causing how Island you years. We'll from the that nothing know, create our to our last demo we're very QX tons. returns.So, waste is into to is near bit capacity-constrained and in valuable very sometimes Brookhaven rail of we you tons is on short the be which lead relationship, the online, know we'll get to term quarter as volumes other a value reach construction of off It sites in the saw some of allow next Long part and of year will in lower but close a this linear Northeast from kind little midterm of trend.We And again.

We're option the opportunity, of now also investment that as serve that customers 'XX 'XX rail make excited the it's to a be go-forward the reflection, great perspective, a term we made long in of And, meet that an competitive us from perspective on think Michael, and a transportation capacity in a on cost our in McKean move for been and XX have to to bring where the it's that anyone is years. I basis. sure needs clearly, will as Northeast. about from a for we disposal late

to McKean. better it challenge. so offensive it been that's negative. but to rates, maybe has under It's a that unrealistic both We've most been appears a I replacement it's volume give going it's of of and improving to Well, don't little and and moves.Fleet a bit opportunity think defensive, and think a It's you be might ideal pace. not flex

companies it repair is been that? would of have more reported their have a and adds your clearly, other on and line to normal maintenance What in cost. with Some the positive fleet vision And have replacement.

still there's struggle in a vehicles. delivery terms think bit I of of a of

I think we're certainly getting through it.

that we've a X-year good plan Sean proactive years terrific approved be overall getting done our Our the fleet a able to in because be all shape. still sync advance has in to in to with position to to age.The is get down get terms very we'd that when to years fleet aspect the the replacement out and of we're that be that in capital X managed Board particularly like of been X done, a is interesting slots of good of of slots fleet of at other that job actually the were it's be Twin a brought managing successful maintaining so Sean's done getting of acquisitions it. a overall some our our and delivery at or a not that plan, X-year through standpoint. Bridges, the all. job.We've managing our from they old.So, average the age struggle we've able process age But all in fabulous

We've take really case, a the we times putting trucks. this And XX further worked of lot John, York. companies. comment synergy for don't of at them.In you you work have there do other of of in the some and And acquisitions, we're capital district New road look you taken the a team's on that great to by older, less routes in work as fleet usually, And, that you the lot well. vehicles spares high-quality one the combining than early step of quality uses are have some

So, team really benefit hard the has team. Sean's the nice that from work another in all done and in market

or are in And labor, it is like how looks coming inflation. whether market maybe about your then The little sequentially the the in sense faster is bit helping. and of do path you open thought feel On is and wage but labor to starting year-over-year where line me. because market the it's positions, one a you the for sort last help better, labor, about

we're through the had of number I CDL standpoint the end on excited We've basis.So, made not we've about up total school and started will piece basis be think of new School annual where X, School. openings significantly CDL fair CDL results year-over-year facility of maintenance having And from dividends. about a The year XXX put this an and has lower XX%. lowered and the exciting. we've from only The We school We our be School sit. our that turnover, efforts an The the paying the on also CDL on conjunction that that maintenance and really HR school by will are good are very the School.So, seen, ago which of folks the maintenance same come in year. before about a operational really perspective. that's with months X this property, is that. we've we

an of and play targeted to those for perspective, huge work a to really too, on tremendous getting differential has our without I Michael, hard investment marketing characterization easier, work more that not that of attention office. perspective a in about been of that significant amount pay where getting is that but started have in part.The from our from people across dividends. talk is it's and a footprint.We've the other thing our your we a power areas we've to entire we really starting work don't think done, So, correct. terms It's necessarily marketing as openings And marketing those significant want

think I the as training the of from an as perspective not really board, only across facilities, has job So, addressing well the a HR the team with issue standpoint. but marketing a good done from

a it's And make about about We're or and really we how leadership really, it's it's we any John? doing treat understanding issues not an that sure get of money, with about just sort don't Like right whatever lot behind culture, -- surveys to pulse just have people. we

come few years ago, a that because facilities paying facility put work too, want to X-year The of that real place have is other to people we dividends facility, piece you to the at. got plan in

facilities the also improving big So, another plus. is

and kind see the in a words Las Well, week we'll and the for much, very thank Vegas. in you thank you you beginning, in

of with the line Jefferies. question Stephanie comes next Moore Our from

on Antor This is for Harold Stephanie.

guess I quick question. So, a

You about exited about a that it, that front, I quarter? of volume we did bit And look how the on the should guess, as little think know I talked weaker than came the How volumes in rest expected. through year? in the we

volumes feeling out X% is this in the on about flat really line talked This we Waste year to anything probably Solid certainly, when The are that's the really came about the down that a volume bit, of kind at business.Unpacking we're bit volumes.Collection that's strong. to for overall little quarter, a Brad. plan it volume a issue, than of more relatively the Hi. C&D and good the in we overall But I softer. guidance weighing sort of little put volumes think, the of landfill, temporary the else, and be in for Yes. beginning year

were remarks, roll-off was my down residential frontloading so mentioned I business up. actually As in prepared

it's about beginning we So, pretty We feel year. forward. of a the good that at the good guidance looking gave picture the

second be modestly kind to of volumes expect we flattish And in then half of but the QX, year. down

fair. that's Yes,

How Is forward? going I about you guess from getting think just pushback that on should clients? sticking we pricing. pricing any

Yes.

with may come we've late stickiness So, into out as we with the great December that year pricing had about you XX% our January. in of And know, pricing. for really

has hold of for accountable to keeping service every our market, a with good day service. the pricing customers our high single you We resource customers, we do the especially standards.So, with measure and some of accepted the delivery. of we really it's we're as high-quality getting we quality and and to to just of an right rest come to service out much And about if by our and our and really we're that's job in service job, do feeling done, year. delivery the trajectory and markets offerings it now, we're ourselves the differentiated deliver amazing are where service So, with the the programs,

Instructions] Goldman from Adam Our with comes next line Sachs. [Operator Bubes of the question

look off to about just help The margin how points start path feel you're that do outlook? against expansion. points expansion of on basis strong strong, And you us Can of XXX margin to margin year-over-year basis margin the the to you given how trajectory expansion really tracking XX think XX cadence expect you started the the range, year? the

year Yes, full we perspective. range a But good trend of mentioned, it's really feel and about sequentially at off to talked you is margin start historical good implied starting margin in we beginning maybe the Brad. probably you as off a year.I if of think, good sort we're I'll point. history, use that of the some Ned can jump about the certainly, start, the EBITDA with historical

given increase with started there. I comment landfill QX landfill to one playing probably QX, for example, regard we is look margin a in saw bit QX year.I little QX less are for than, volumes a we think year strong role margins, last sequential the how think to

at we look So, little where bit about the feel year, we different, set across quarter-to-quarter but good as look a we our it may guidance.

Yes.

new the a think little a that materials But of Boston XXX of also first things the increase. well. few move a didn't that move led basis system. bit year, the We're solid the lot in spending around, point to materials we year. into plus just really margin is MRF quarter. year, The months the I were money year-over-year This Like as to around. benefit of we comp.Last to had are we're there have just some bit conservatism trends a

amazingly we pick in the look XX got think year. XXX as kept off get basis enhancement. I at So, that QX.So, just guidance QX of range we'll We doesn't yes, year, we QX, up as the basis we margin visibility in to that XX recur well point again in on improvement points that but and with more

nice And price for be cost tailwind you. continues to a

opportunity think we productivity routing the think back-office annual about should about runway automation? we how What is software, expansion significant initiatives? cost, forward, beyond fleet the margin gains, efficiency, the from price the going As those contribution from

conversions it or we can that's our continually of local the core automation, a new a out teams And our optimization. to route loads, fleet laid have of almost few Within Yes. has areas. from we really did when Sean first bit that exciting we working it's on trucks. to over there's years team find had rear with quite the regenerative. tuck-ins half that business, fleet front load do acquisition next side, gets around the we region, And work where still either are of as opportunities.But is acquisitions, the Mid-Atlantic

automated take in earlier, address, to years returns. are and a higher could or may XX them XX in them moving converted.But possibly some contracts productivity, to XX because excellent to that drives order said going it's we've record get Now, moving more this the we take as and as got which fleets, us of of and to trucks some have of municipal specific never safety track on automated specifics. year And, into better profile get I road, rear trucks we load off great

recently running.We're new operating great most in this has side, each story that's of shave the systems job an our experience, see savings year.On to the of the has costs. CTO time, G&A opportunity doing CIO XX more to waste in comment August, that and at we Keith was to industry. cost there Deloitte office to last approach we And of being really back Landau, to some continue amazing over office ad years ground previous an hit the dollars of a opportunity and is who back rethinking was going So, add continue millions Keith brought of to this on a

come Over maybe a of as years, of Jason, XX couple basis revenues, the we've last points. percentage down

points. basis XXX Over

points last years. basis X the XXX over

a so. So, to great go. more And do the room to it is there's of opportunity but coming out business, we've got

was a I the underscore at to quickly of acquisitions. kind Ned with talking what point we'll about mean data

just acquire snapshot were that's have opportunity primarily far quarter as direct business digging of base quarter, highlights over first apples-to-apples the So, as business, in on line XX%.So, operations cost in into of a diverse of was revenue the but base the of in kind the acquisitions the mix labor, not and think, we XX% the time. exactly more the of significance a I really business we that, the operations, collection

guidance with to just and then one down It the sticking volumes here? Or to rate still embeds normal quick of for current reach improve that run seasonality Do And one is have to numbers? comps this more ahead getting volumes of flat sounds those for me. like X%. from you easier

to way easier terms bit of I down think X%. through the to year. the down the and Solid X% works, And the volume X.X%, comps just we a math guiding were will in Waste get obviously,

recovery some So, about expecting in we're feel that we good And implies that. that.

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

some curious, year of that on given get if year a digestion And, pursuing? the guys in are active 'XX? this assets pipeline of also kind curious, was just kind more this of collection robust. Is sense I Is the M&A pipeline. being Ned, of of and is you asset? an Or is you available? had integration you transformational kind something more guys that there a integrated Just actively

is in the large density at time. way Yes. moment at That's We're strong in of this now not driving adjacencies, looking right with looking any both on down now focus into Much Great platforms density, acquisitions. and new tuck-ins, at really focus. Michael. our you. Thank question, and our markets Mid-Atlantic really strong in legacy serious adjacent

think earlier, And, tremendous Michael disposal the it clearly, market Michael, a has amount of I said Mid-Atlantic capacity.

would that recycling. we and the be recycling terms opportunities So, have integrated fully collection, with station transfer facilities in transfer of there and

So, the continue build transfer business. of us nice for portion the opportunities recycling to and to collection

from fairway, great of the right opportunities there. standpoint a So, and growth down middle the

collection by line now our in right the generating business we're our and recycling. of And followed returns business, highest

So, are very getting as very, is good. automation synergies, memory and returns our team, we areas.Our route muscle we our to great in playbook, continue just those invest in

them we it business, So, integrate into value as quickly. lot tuck-ins into a we our get and creates small of

a route know the guys talked about Ned, and lot the optimization. onboarding you I And,

what process. you're in realize Or this you're Just kind more innings to makes early of feel be fourth? it, to now put later I you're seeing you and going on it do finer of Is innings process? of your this point a like in feel acquisitions. like like deploying this third, kind mean, that the with of you're I still

that, activity. probably the is that mid-innings it the I in and deal being of great I think as M&A would characterize related to a

to productivity an the continue to team efficiency, grow to standpoint, to businesses M&A we Sean we bring we're for continue buying, from opportunity and as Michael. his that So, provide

further I as there ahead a little bit on an bit a be well. still from done little efficiency but So, think to core standpoint, left the business

Friday, all, what story. Obviously, last squeeze on of I'd love and and asset love you're to out forward, your this still your just part landfill seeing Casella's we're view a should how get finalized. kind it I going that in. you're been forward, what sense of going PFAS. to you has what last early proposals and And one from disposal know it's to be kind preliminary we isn't some to? interpreting great of a get looking paying attention I'd of means of the around what of kind for

regulation welcome district. in years Yes. We It's this. the district state by federal kind actually This really been confusing around It by state, of interesting. has getting making. was

rulings with as clarity the and manufacturing in treatment the users facilities on shrinking some biosolids for really, I positive have around the circla in a a wastewater landfills well passive recent products fertilizer. and EPA So, finally, standpoint groundwater use the has application that the industry.And are for think, receivers or manufacturers chemicals of some are responsible of taken the to these real water stance like or even responsible, them. not passive And are the for

it's a So, to this exactly there's we've years. I'm be point, story, vantage step. saying from going our great for more but sure what been to first

not of that do PFAS. other RO the have the McKean plant regard in that, piece think I Casella only an Michael, out is with can we too, to take And

and significant take foam of components understand doing to terms removal results early pilot to in fifth the program. and on from it's a positive program in of of out the from that one.So, of trying PFAS are an on again, take understanding out Vermont, will of in also of Vermont to But with fractionation front innovation in PFAS leachate. of technology basis the go-forward state seen efforts program standpoint, the X a about pilot the of pilot what facility USA our in where Waste X from what XX% on going we've out standpoint leachate we're take or We terms stages XX% kind PFAS to technology our our

in front out standpoint. an again, innovation So, from

That's a great point.

the the out looking circla, So, want of spoken by on the an the the to but on Sean liability recent the And innovation PFAS we side, ground, did on job you to of so. side, as that issue technology for cost-efficient was take excellent our really said, ways reality teams do leachate. to

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

A guys over the great obviously job have years. job, John team, a and you done fatuous

You guys acquisition did the recent Mid-Atlantic. for the

the I particularly think get maybe on just again, longer-term that or you more probably to traditional Maybe you're seeing with thoughts another capability something, looking to something there into some somewhat you're out do and business? any maybe have general in.Is things? the size-wise, region aligned some transformational, view just business that's kind in probably of there's

Sure.

the middle down that, I think right that our view is the really of fairway.

talked M&A basis. that the Our most a comfort an the that's the something about in Ned million opportunity to directly existing zone M&A that the as to business middle see standpoint our that create is the of the shareholder biggest and out going don't down value strategy we're value add clearly significant going to is in.The on capabilities our we're shareholder go-forward of $XXX create execution right from value.Our way in our terms is of We stepping of fairway.

for deviate see model. value We most really the So, in create to going basis from strategy. There's you're that existing can us not business it. no the

your all on successes. Congratulations

in closing at for I'd showing to Instructions] I'm John time. back to call turn questions the no [Operator further Casella queue this like remarks.

forward everyone, everybody. our to thanks, hope XXXX earnings a and day. this Thank July. great great you, you for second Operator, Look quarter Thanks, in We a morning. joining discussing us Have have weekend.

call. conference today's concludes This participating. for you Thank

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