Casella Waste Systems (CWST) 31 Oct 242024 Q3 Earnings call transcript

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

All right. Marvin. you, Thank thank and joining today. us Good you morning, for quarter which were We'll be yesterday results, third our discussing released XXXX afternoon.

various our Waste Here Casella, with materially future plans Reform Sean which Operating Ned Steves, Casella those statements the and Litigation including Vice provisions company's SEC. Officer; Officer file the of Chairman John Helgeson, Coletta, Systems; Chief our about by and indicated Chief as our statements safe Chief factors, me Executive Officer the forward-looking under in and today Financial President; Brad Risk prospects are President Act our Senior XX-K for of happy of questions. But and of make Form of update of on an please are XX-Q, these harbor results business we filed that result from a the we and Factors Solid expectations, environment, important the and various forward-looking differ Form Waste and your XXXX. Operations. may Securities on most section After discussed those a constitute the these to will aware be Actual be company's first, Private of purposes activities take may with review remarks recently the results

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

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

and on our Good Charlie. as and financials discuss third I it strategic our Once strategies. will then our plan. everyone, a these morning, very quarter continue conference our welcome busy quarter and Brad growth to to Thanks, the highlights again, Ned results. XXXX but against execute we will provide on was exciting comments and review details call.

with and make customers their helped service team local new completed and company XX focus operate. we Their and and last our new team how the in we press release we've of customer the Xst. to This our customer for on I look aligned years. our October their admirable taking members nearly that Casella successful announced to excellent delivering As we care that communities serving of would all is of night, forward service, year, outstanding respected for our Royal known has like a Royal recently are same sixth supporting with welcome closing acquisition on to decades.

I'm waste larger our almost over all while levels Royal. our marginally million company. With strong happy focus what year-over-year. results the future initial now quarter. were is the X,XXX and and was were very first landfills, of we third $XXX for down Revenue completed decline. the and C&D holds. Shifting the foundation $XXX for I'm our work time in quarter. with power the remain well our the in tons Special generated These of million, quarter. on mostly about Whitetail MSW driver a integration, hard Beginning acquisitions LMR, to the at the volumes achievements which excited adjusted to EBITDA year, share is flat topped down going always, reflect this of the X nearly As underscore tonnages employees, the for at we entire

recent the preserving our has year-over-year. this this increased received we Ridge price as the point, a on not strategy And of X% [ landfill. outlet. support critical our ] This airspace disposal at has asset just To presented valuable Maine Maine recently, state will the is a dedicated and continue Juniper dedicated remain of our our to term. ton our for changed we per from headwind, communities expansion in a While over provide long average for to landfills the

especially the leveraging recorded to margins Solutions, Moving his recruiting broad-based were making program and to the the team across lower. In our it. provided margins These further opportunities benefit performance. quarter prices. across year-over-year of strong demand business very tailwind impacts. and up both automated basis, our the through strategic for results also a safety levels operations rates strength turnover employee and value have Sean XX side. We Resource same-store at basis. strong are is same-store developed in points XXX This MRF are EBITDA at both are quarter. sustainable This generating On more these we cases, were some margins. our results Beginning a investments for efforts, and that worked operating in tools. a computers Applications up strong continued strong higher frontline our posted in onboard in and points company's shows basis collection and Power turnover on investments a commodity positive rollout creation. from And results solutions and testament BI best while the history. hard answer In also I'm TRIR Adjusted flow with adjusted moving basis in We've are impressive well. the strategic returns. Steves the growth our plans EBITDA the the to as to happy report to the acquisitions with for and truck automation, see benefits base conversions, making trends

this recovery also have was increased The only levels, improved. of our part throughput success. at quality productivity, while safety certain and equipment and facilities upgrades However, have material

great Boston example to is namely technology is now, are can is facilities, a and up Willimantic is other year. expected operations and blueprint enhance but Our our facility. we early offline a how our This applying MRF to be for facility running next

Valley quarter won business strategy that's sustainability, like Our the of customers very Royal We a strong, much national accounts in now into remains industrial growth. opportunity businesses institutional commercial, and to commercial entry in and focus strong target Mid-Atlantic. Hudson municipal, provides on area our and with new a with the the

in XXXX vision our and value sharing serve. creating in our report, sustainability sustainability, late Speaking with published the communities we highlighting and achievements of we September, that and customers

MRF our focus. one building in Our sustainability part deeply rooted strategy Vermont back our our Resource in our company Solutions of state to of the segment our in is network, further investments XXXX is from first MRF across

The other the in areas and company key of our and are and allow us devoting our communities. people serve resources These better we are investments to to the support our recruitment backbone safety, retention. training, customers

delivered. completed in solid forward forward strength looking Finally, our I'm waste I'd like and well positions finish to add strong I of very business emphasize acquisitions promising the now base look results standpoint. XXXX The continued we our our to a team recent this as us of to XXXX business. I'll to the a the through foundation. us opportunities on and from for very potential up it is and grow details given to outlook the financial walk front and the pass in set to beyond. The Brad is has

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

with revenues in volume concentrated were the was residential X%. Within volumes X.X%. X.X%, XX%, of up declines and in collection those load growth and revenue up price business, of of price the were waste, improve revenue landfill growth transfer and disposal down In and offset work quarter of quality Landfill tons, flat down XX% saw price X.X% X.X% essentially up C&D we waste the up the up and acquisition of down revenue front to MSW terms. were into was the in up landfills volume year-to-date, weakness revenue volume X.X% continued margins line up was X.X% we in in the business lower with were as X.X% of year-over-year. but X.X%. in in line Solid and X.X% in solid year-over-year, roll-off X.X% quarter businesses. Revenues the commercial volume XX.X% and year-over-year, down price business by while tons

of under with pressure we've C&D closure Metro impending the landfill the market. market New As site a York in is the currently discussed,

recycling pressure lower-priced from revenue average volume face over our this with commodity reflecting line as up to the processing Solutions valuable XXXX. airspace. Resource and We the last prioritize and XX% the on ton a in of but at The year, average per up in year-over-year Within was preserving increase over price of and should the in was X%, year-over-year, end other up operations, held XX.X% revenue we X.X% it were driven X%. accounts processing up national shift an price dynamic by price mix of revenues through QX year. away XX.X% up landfills expect abate the continue streams

the which customers our of our is Of designed risk. under of commodity course, to benefit structures, higher with mitigate shared these most contract are price

to quarter. revenue benefit our was only million net the $X.X So in the

EBITDA well commodity with above volume at markets from headwinds rollover X.X% Bridging Acquisitions across year-end few in remain in was contributed EBITDA price year. Processing and last Within points margins volume year-over-year change from benefited comps XX.X% enhancements year-over-year Adjusted $XX.X higher was XX.X% XX revenue, million the quarter. was growth. accounts acquisitions, million X.X%. expect segment. Adjusted are the or organic Solutions MRF. in were quarter, a X.X% million EBITDA firm decline $X margin, price as specific down and with favorable We Boston up year-over-year, recycling basis through year-over-year. quarter, prices XX% and including production by the to the volumes the $XXX.X was the national drove million Resource the up current up up recycled in $X.X continue

we our adjusted we over to unusual X ongoing by expense so business, impacted and a don't X discrete quarter impact in of events the which on of the was certainly these part quarter. magnitude margins these press insurance as add-backs, EBITDA our noted treat release, the events material had As but basis million are of incurred points. XX $X related events, Insurance in

of volume we've by impacted well In at the another year-over-year rest points as with on results addition, quarter. The plan. and basis discussed, in landfills, particularly performed XX C&D line weigh the continued to lower business and in our margin materials,

and in Solutions and of lines continued pricing business margins the again benefited collection outpace ongoing in points basis adjusted Our On and up basis, inflation, were a business. from Resource basis we EBITDA to same-store cost collection programs efficiencies points, the XX respectively. XXX

production our in trend the business remains in strong. The upgrade of in at the Boston the operations net the MRF margin at benefit of of of the higher business. base that year-over-year XXXX. look facility. from forward having shutdown underlying operating the in year-over-year million were $XXX.X was up base $XX.X essentially facilities the offset new the Acquisitions and increase margins. Cost acquisitions the MRF quarter quarter, neutral So and We million production the $XX.X levels to for higher consolidated with of in of million by were on quarter early retrofit to both million Willimantic $XX

prior the million the operations activities in with balances with the higher intangibles XXXX in cost cash costs an excess acquisition-related as points following income monitoring net earnings. compared quarter, of the and site increased well of of including estimated QX for accelerated prior transition resulted on weighing and in the base of that business. Adjusted the to which of period. GAAP the income in down expenses. The net from in in related the well closure interest $X.X driven charge I to quarter was the Intangible $XX.X million reasonably identifiable $X.X requirements associated expense XX year-over-year, receipt These prior prior period. receipt official million large in in emerging the accrued million acquisitions higher could of quarter, income the permit, onerous to contained year interest of have the than was previously amortization the landfill represented permit, $X.X closure up expected $XX.X was impact to mentioned, the final final post-closure financing insurance requirements Southbridge were down $X.X net revision and million million and testing contaminants. company's compared closure the while the and Excluding year, Southbridge basis as down events the year to post-closure recent higher were more resulted D&A at not by amortization charge been

items The the book nondeductible at previous the approximately rate the reason forecasted state rate and expenses taxes. XX%, impact XXXX, for a rate and of this full years including our mentioned, as magnifies discrete by Our effective driven rate GAAP is in projected net the statutory is and in XX% on tax discrete effective was reduction income that year of items I XX.X% higher the the approximately certain quarter differences pushed rate. permanent is for than above items

As we $X.X $XX.X up for million assets approximately million a $X the million and increase with higher driven higher the XXXX, liabilities by half. partially growth the year. Net came $XX.X stronger This by offset of free taxes in X cash activities was was and year-over-year. $XXX.X reminder, cash operating year-over-year, months primarily first Adjusted EBITDA expenditures. pay to cash notwithstanding by cash cash million up expect changes months, capital provided in flow first in million flow, from this X operating first net outflows was in

facility in to $XXX $X.X and announced in our from transactions extending senior upsizing equity M&A we These we financings strategies. and $XXX million credit for billion, well our to and on to investment completed position As increasing million. over X continuing including QX, execute our September, $XXX growth million raising revolver us important in financing

bank closed pro had consolidated $X.X covenants of and forma potential net X.XXx. that cash of acquisition and $XXX of bank we approximately XX, million purposes our the between ratio transaction, still our financing covenant X.Xx, have Royal billion of for leverage excess was less September of was revolver. of than for our we debt X and and leverage As and on $X billion October capacity cash, undrawn on We

Royal, revised As and revenue, net release operations guidance to for adjusted GAAP our closed acquisitions to reflect guidance to from we expect announced including EBITDA, revenue. income charge. flow in cash end our With and Southbridge high range range guidance the date, at our be yesterday, the free for cash primarily landfill of closure press now for our flow we ranges we adjusted reaffirmed XXXX for

insurance mentioned, adjusted Royal unexpected However, results offset by of the be the quarter charges contribution roughly I existing will ranges. QX anticipated for X within of keeping guidance in EBITDA, the that

flow. revenue, we're EBITDA Looking XXXX, strong adjusted another growth ahead to and for excited across year of cash

the of primarily build improved of waste million Whitetail for expect the next benefits and operating year, of on XX% landfill we volumes range of adjusted all XX%. improvement in from Royal, anticipate you we continued we As base growth models $XXX all synergies, MRF completion your business. Taking the revenue, approximately in rollover free the our flow pricing our In business, cash margin retrofit into from lines programs tailwinds from LMR. account, acquisition to and EBITDA across acquisition driving XX% range X%, to adjusted expect solid this growth and XX% of and of Willimantic year-over-year, approximately long-term

outlook that, turn with no this further course, I'll to over Ned. it assumes Of activity. And acquisition

morning, Thanks, everyone. Brad. Good

another said, our busy against we quarter with further had As growth execution John strategy.

Carting $XXX we right completed fit. the revenues to of acquired Royal with the acquisitions, million strategic remain the basis. We cultural right on Xst, an purchase acquisition our to annualized on sixth year-to-date, bringing With selective on October our total focusing opportunities and have over

computing market organic stages adjacent with team opportunity integrate are this sales and presents Royal the internalization office that going continue believe These back extra route truck through boost From core of to financial an to safety, to and integration and optimizations the well according efforts performance. We excited to our Casella welcome continue revenues and to conversions, execute perspective, drive sales operating generated capacity. progressing plans. including are landfill and early efforts to our we unique programs, to a well operating growth. The operations onboard automated against our

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

both and Given from last landfill internalization the we over trucks established markets this lanes new waste vein, focused trailers the increasing and markets transportation C&D and years. and markets landfill have landfills. acquired New entered York the lingering in on few we softness months our across additional purchased special X long-haul over Along volumes, several to have last efforts newly

of to we these XXX,XXX With an year incremental internalization. moves, expect drive tons per

opportunities XXXX. on are We additional working for

Turning development to our projects.

phase X,XXX complete. is first have landfill The investment and equipment Pennsylvania date, rail-served at XX tons processes. and McKean, of received allowing now our McKean, we in of railcars To over waste test to us

the a a per boxes are of offload excited of and of and infrastructure gantry our promise crane includes offload very Currently, containerized special roughly site. X,XXX We about tons over solid at waste the spur. mile rail We day site. waste, can to sludges future the

As great in preserve management our previously discussed, Northeast. disposal to risk flexibility constrained provides the a this site long-term

this and focus that won't a we volume near-term be operated the same across all such, of the apply As opportunities. site will meaningful driver under return-driven growth be

the Taking As at upgrade recycling completed of the XXXX. third offline second Brad during negative and we the the first site the XXXX. of project mentioned, began the by equipment quarter to the full Willimantic, quarter, a is have facility, expect half for we Connecticut technology drag and

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

We partners albeit developed infrastructure. The to our facility continue in our came also at quarter. to online RNG other Juniper being finally Ridge evaluate slowly. circularity The by advance landfill the progressing, our RNG third are opportunities projects

advance ahead, Looking with late the Waga-led to in X commercial to operations begin projects continue expected XXXX.

and invested mitigating the which have and we in payment are these a risk reminder, appropriate we receiving gas us. most the of believe from a RINs, is projects for royalty $X As sale path

excellent of opportunities stages ahead M&A and roughly XXXX, well to a revenues over to our with it that, active very to robust into XXXX you. As in million and to $XXX questions. for late pipeline number of be strength we continued continues for across Thank The look of I'd of the sheet turn return-focused balance liquidity back our operator growth. With us our positions various diligence. like

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

for to you received update First wanted progress landfill some the landfill. of just the development one, hear a there. Good and Ridge Juniper I the support ask you I mentioned think on expansion state initiatives. some John, to from

had Just for there the then expansion and McKean, of end. wondering update look if what the there? time like size could on thoughts on towards thanks kind the line And of the you

could into how curious beyond.? tons that head XXXX ramp Just like as and look for we

Maine. received additional of facility from positive facility mind, its next not out capacity permit, And Keep provide able terms facility to the being in to the tons. in XX bring total a significant benefits it's years. a really permit Ridge Juniper very of The for public very expand the in terms that's necessarily for number to It's years. of

So received our all to to customers, provide to capacity us as to both those Maine that services as going give municipal. it's and is continue well of really the ability commercial well

It's now. So of technical a mode. in that it's direction to additional the we to need step through the permits walking great go reviews right operating the an

So team move. very, there. entire very the Great by positive job

in tons, begin begun our of it entire hundreds opportunity a facility, given people from as statement, experience really We've down the to rail test a -- give run and of X,XXX shake really go limited has said through, amount the to and containers everything, opening really his perspective. and facility real team really shake the tons had Ned down. McKean to facility, it into the Our that's we've under but XX,XXX

a place, in early to -- So again, the exciting it's ready significant anticipate process. but we go, don't ramp-up in facility really

direction. Ned it a said, pricing positive to basis move in as the more need will As continues and on be of

Today, McKean they're Mass stations who we waste other also helping New someone transition the talented needs market there have citing XX really Southern the ramp-up work to on those an positive we'll a look Yes. And that's professional rail appropriate. of as over years that time team, over points us have of has there. over kind We've to markets kind the X We'll rail where to to experience Hampshire, in of additional transfer through brought time. moving logistics station transfer Northern and rail-served onto sites. X other appropriate

but the progressing it's and long-term where really a team we we is excited to is want together, sit We're strategy. about where be. coming this right So it now, right

the thoughts of just And just little one, more a acquisition, on then from the detail then importance perspective, about middle And synergy the Can and the you ask extending into great. That's $XX a maybe any you'd Hudson potential? Valley? kind million expect wanted on strategic talk a and from of on of lower Royal any EBITDA to that financial perspective. revenue for just

in give County, family company Westchester, those for years, Royal of both Dutchess little really for universities, companies opportunity XX I'll Solutions customer ours exciting, It's of advance Yes. helping years. bit an a very small opportunity to medical Panichi years. driven in a been exciting them market strategic great a great terms in perspective our us regard XX of to of the a for area, relationship industrial, We've them Casella offerings and place the a has had to Royal. for with goals. by piece very, of you Resource centers spectacular colleges with for XX meet their sustainability all and commercial,

It's now opportunity waste it. it's to we'll of did, bit very We that no stations, presence little as internalize have transfer a So from an their take hauling but obviously, the from we standpoint. a said, a more of had lot I area exciting.

standpoint significant a well. So and continue we -- from which with the is will county, relationships there as strategic

Walk very entire Panichi strategically some similar did a Ned. fit. people. of through of culture it's of We're very the just a care The So family their that taking terrific in -- have financials, they great of board, care served as obviously, come taking to team on of the the people a and communities well. terms job excited their really

onboard route side, one is of few there's really company. computing, said, opportunities over some kind we point, John though, to operating mid drive course it great things just a teens And focusing vantage to great, stuff company. optimization, there. like can there's automation. core margin financial as the a we of do a margin programs, EBITDA our the percent it's years On X the mid-XXs Yes, From on do

Sean. A little work more for

Sean. year little probably other we've mentioned, internalize the period. be Longer landfill A to some into of X/X over work and And plan internalization, more, as to then more our sites a term, that term, John the way. in creation they got move game the about of for plus, tons thing generate opportunity next but the real time great will that that value about X/X the over near is,

We because So these are with can markets larger that adjacent we sales internalization lot get that customers institutional a great value. from extends create we benefit, weren't playbook excellent standpoint, there. a our footprint great also and got think industrial we've of a

just That's a a on really talented of transaction. that all group with and have come exciting great us board very employees really

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

job a the kind want to I of you think I did crystal but explaining be good guide, clear. Brad, just

the effectively, Royal QX, were maybe again, slightly these weaker So largely we offset deal. the insurance unexpected, had accruals that

change, that doesn't is to guide purposes, the just really all and intents be why for So clear.

Yes, that's right.

result just a the it significant netting either essentially, But guidance enough way. punchline. the together, Just that's the X adjust yes, didn't in range to move

That's to helpful. new. the know fair. that want back I and issues. not That's these C&D fair to I are Okay. come

a I mentioned quarter. headwind the million you $X was think it in

it's all year. headwind think I basically a been

be? in And or into million that does but million year won't a that all has get year get won't much So delta as site that should EBITDA $XX next back on I XX/XX? as one, $X it to positive And drag? that you close an be been probably

this I been tons weakened or has Yes. pretty to changed. significant throughout year, a construction permanently like close and And something This XXX,XXX we're down drag mean, isn't C&D. Tyler. year-to-date market has on demo the has the

landfill be permanently there's you a stages that's get closed on Island, volumes XX/XX/'XX. As to site shape, those you site permanently the on closed. They're the final grade to laid Brookhaven where it out, going Long in need in

will in into confident, focused coming sure been to it my XXXX. really We're be. on making We're talked needs is where internalization as market comments. the So hyper about resolve also just have I

slowly more the When I those little our transportation probably buying assets right lanes. trailers support that can't a third-party think been trucks the on been have we've and we And on have We it's faster vendors pushed harder. should the focused putting and lanes, ground. had. I We earlier help that to on January also we've like think but summer headwind throughout of in the some the X, a and and to pushing those light of customers fourth and construction to really have out the nice seen Long to Island demo now long-term some of to to quarter, talking the even good closed. tons reduction getting price from the last we've fourth into as go who York the We've was tons them. of with switch don't do opportunity New some site year great the been year over to and into quarter. had a the progress They're getting our starting ramp a back back markets us

and there coming year. we some next positives expect So into

are put moving guys 'XX, But finer call super much obviously there a are No, I it, to here. XX And know pieces a helpful. point going days. you of Okay. on lot

C&D. Willimantic The organic you've Maybe though that So somewhat insurance sounds of I negative McKean these, about like It got if from debatable. think positive. opportunities. just a to a internalization I got just up, growth, got mean, that's some accruals ramps talked through you've don't We recur. goes you've

a got rollover big You of impact M&A.

So mean, thinking pieces else anything to the there's lot that should a I I things of those there of are some is bridge? Or on. about? the going key be

it's -- You Tyler, hit on Brad.

that a that's up key basis. some just way and in were shaping there's market normalcy. us up over hit is a talking position well of form And one think on you You volumes on a about 'XX, what lot year-over-year lot the we Ned landfill is lining to 'XX mean, I of is drivers. returning biggest to the the

process gave. course, I of So the high-level of is We're, encompassed it everything talked in think right way would in now. budget is you guidance we EBITDA our the that about about kind

feeling going we're But and over more February. we're about again to So next the when much going through year. the month view talk a refined good that we have in work or X to

Yes.

you buying long-haul you Can truck. like that waste of mentioned all for elsewhere. stations Okay. the Perfect. something kind are you've XXX,XXX thought go you said then that transfer you And I got one But are that Ned. my also X numbers? tractors internalization So tons via some sending here, back over last XXX,XXX, rail-served

again, you picture and and it's shape a this I little it's that's more around talk just just you just it? put big -- But just multiyear -- big So that XX, a not probably kind of a bit maybe, story. more because know be about a can could not a can ' talk little

sure. Yes,

bought and X trailers, where we Rochester, additional new think population have some transportation Buffalo, tractors New enough centers we lanes to District. from York moving weren't our and So internalized, major Capital landfills waste hit established we've

into today. positive benefit So I we year. as also that's ramping quarter rail X up the be will into do as said, have And next stations we transfer speak fourth a

the yet. We McKean to haven't flipped switch moved and those tons

sludges locations some and that better construction feel time. But do outlets what's demo will we that. moving for A there McKean. of are and we more Casella's are over from debris via and today in focused like into We of other MSW rail on lot leaving

long think that's MSW and So term We we're waste more sludges special for creation to site. the focused higher value and the containerized over the on McKean. moving

They're seen us haven't sense effective date. T&D you why to makes their Ohio to those moving and go today. transfer move just and stations out today that's So rates landfills,

start that next containerized at new will looking a MSW at in some be and to of well those as site year potentially moving We sites plus. really the

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

to? is roll more you the color the I just wondering quarter? next related that if discrete does X could insurance a on related expense was accruals little events. And that to off What provide exactly

Yes.

he's of accident recovering. tragic a pretty got our like subrogated of we and hit third-party's a provider. with a this But comp with insurance transfer incident caused really to workers' alive, some significant our injuries one over third-party He's full this, even though a much stations employees truck accrual, that be our So will we time in one where of hit had to back employee.

mend. him, unfortunate is is ways, he we're and the employee our fight thankful really the has in So many ahead on of that a on but just mend

with a almost transfer truck a insurance, such into one just a an up it's That is turning municipality And a pick station, bump to a claim, that to injured. GL auto of where we third-party associated that, third-party. thought this other a part claim. was at out third-party accrual one truck quarter we had we kind always unloading be was part The and legal, large had

within So the normal there are accruals not in but claims something would don't look unexpectedly and unusual quarter, X they the fit just like at, we what see. hit really us normally of we'd that

Understood.

this a your just the accrual potential could as And in future, of down our off the that or this question Yes. there's up is finish onetime, to change about but to today. estimate best

the expansion then the in of from Got margin for potentially for outsized an pieces takes terms good How everyone thinking And outlook, about guys year, margin you And to think volumes when XXXX hoping moving there's and potential it. the you there. leachate C&D the involved Willimantic XXXX best on on lot for Understood. guys a puts shifting headwinds bridge, of are year? this bad returning. about early

thematically, think it thinking right way. about I the you're

to trend put the bridge. this mentioned, is above finer that XXXX like margin margin on expansion of the that looking given the premature a our you I us for year. things point But likely in because headwinds is terms we expectation think it's faced of

one this to as couple next expect through here the Is the flowing high in it. me. you level that contribution over see Great from of Got Really revenues million And portfolio. prudent over $XXX it year? pause M&A of M&A growth. quarters acquired of then to a level integrate last annualized spend

It's always opportunistic.

have that larger, smaller move to the pipeline, of that a will but fit to develop Mid-Atlantic. well into through been markets, into continue years. we've not we number transactions And them a very few working tuck-ins over existing of especially So the

So think months a X value. should and to just on real I see over you the focus some accretive continued tuck-ins next expect

more some work, great team important to resources do the effectively, hyper help is rapidly. though. more most to where select work capacity money made, the focused us is our we've added on Our integration part. expand and That's And integration that's

pipeline So along. full it's pause to are in area. kind say the move that we definitely wouldn't because I deals are focused there's on of that in that continue a acquisitions

to in doing year, quarter, a only that the that it's though, focus end standpoint a what in I real of bought through to them. from say, and think to the certainly necessary continue an the the pipeline effort integration the for are certainly, integration for that fourth significant move fair is from the those But of we XXXX. now transactions on businesses

line question from the Tanners of next comes Wolfe Timna of Research. Our

would you I to were that sounded powder. had so. deals tap tuck-ins you wouldn't to other or markets or billion up discussion. heard amount I to wanted on to preliminary that that like remarks case, If be that which you M&A the need of check to were in amount? do or up $X thought to those the It any dry implying an that. up equity on your I follow-up One debt

cash $X we The the sheet. Yes. have balance excess just billion that on was the

Royal, upsized have we as I the on revolver, following $XXX So our of we the left sitting announced. We million about balance as acquisition sheet. mentioned,

So that's million. $XXX

X. is million given those we necessarily exhaust be our the $XXX Obviously, that isn't wouldn't forma That liquidity into That million account So all total leverage. between approach. assumes liquidity. taking $XXX available of potential that pro that would plus

much room have. was So sense for a we overall it of just kind an really, how

safe deals your absorb there. to Okay. But that of much able say is some it didn't too would then smaller I to assume easily you want liquidity? the pretty to with be available

absolutely. Yes,

Yes, absolutely. question. No

those has But there you thought horse don't in M&A? all has know think FTC the of along a I dead much how lines, of to constraint? approach may head. there about at been And beat lot Okay. I also then regard there's some or terms there. want a been that Helpful. said M&A, you that election. to Has look a Is some I for that ease -- be in replacement that changed with

change in, standpoint tax are I an in I don't the have not is it But of real standpoint, issues a to I perspective, much. it in impact going our from think from could terms direction going people's think question change behavior. of much. mean, there if significant that goes whether M&A terms it's it's what to from an

working we're we for some that on. the doing mind, from M&A an doing been we're the standpoint Keep have, that I M&A year an of in things think standpoint. opportunities something a that work goes we've development or before on so from the

So constantly building with constantly people. talking relationships,

activity way of to is not So impacted in change, goes. going which our election but the behavior may terms be

down and a And depreciation stepping real impact to been. it bonus is has M&A

Royal, taxes. it shield Timna, you're -- a instance, reorg, able lot an think which we've companies. how been asset the of was on for the basis, We've been F bought to effective really as get we step-up bought able of like we're I stock aware, we company, treatment

to we've to So year we changes in next effective been thought M&A. how stepping from multiples value brings assets bonus and of tax the down for things. XX%, But XX% really NPV in

way levels. think one could one I the be or around that way might other the election the that out or So stay accelerate you see M&A if maybe plays same

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

early capture touch Bridges, this last seen you deals, year? then synergy to of on wanted a touch year, little announced bit the you've if for about and some a from specifically potential to from and kind prior I synergy capture or synergy Twin wanted from of on deals maybe deals realization GFL what the

the landfill collapsing by we we've also of advancing the plan. with internalization been to So facilities really X the a last routes Twin total Bridges, over are job synergies, year. of facilities ahead taking and We've reduce and able great both capturing and collapsing had number some road of well, as trucks off

another from our Everything being to well assets buy plan behind plans business. complexity now, It's visibility there Mid-Atlantic visibility, we're our biggest with we're ahead achieved And was better like. of the already. kind were company, the have have systems much transition of of business, every and that to between collections and just associated enough model didn't the X. the The services. revenue the and our out book So on on behind plans synergy our hard back our of there our neutral assets and we executing acquired of GFL and in netting data the growing and and we is we negative

in a the to the we're synergies lot going So Mid-Atlantic, of there's done and capture there. X, to work those be

synergy to have I'd We have were next significantly had we Mid-Atlantic, point work have or into rear buy Kenworth. XX% a have might The this And number where automating truck loads trucks a delayed and pretty side is old And and in moving we load do Mack other said trucks truck year. of been to the a about, in X-year say, run lot and from our X- we automated like along thing over all let's XXX are most are that's us that to sure the that of executing but push a transition former those deliveries trucks. are year, successful. the been in maintained and very, deliveries And this delayed. and be our primarily weighed goes from of for thankful. be we help Mid-Atlantic to the working gracious, well and LMR, the us hard early with teams We owners have getting market. It's extremely has teams those in And customers important which on been couldn't maintain very as very secure, part, some well. each The automation acquisitions. integration and Royal, making Whitetail course, us well, to complete and of of on work ground of more those are benefits little that employees, early

owners, So and got A-plus of you former with stable things effort sure by those each running are acquisitions, well. an the making

color. That's one guidance. I helpful Great. high-level XXXX then had follow-up And the just on

business. out I you expansion all lines margin of think called across

margin next looks commentary the So as the for clearly, year, about think pricing strong. drivers you

benefit the there. inflation in excess think of year? So year we should another the of and other we But pricing are as see major drivers what of next

business. Yes. of collection continued efforts the of reducing Sean operating It's costs line in team the his and on

we're beginning the below specifically John a been quarter the we're talked next in the Willimantic seeing if much again, -- firing level seeing As from both from from numbers, of real and all margin on. the the down the of That quarter horse both margin to Boston we're MRF commented pretty market. really Willimantic of has benefits collection but C&D will and XXXX. about consolidated year We really and those business. remarks, course, a cylinders after tailwind. And nice Resource kind coming a back Solutions, on in prepared dead the business and our line perspective of maybe the this you that beating and drag I landfill be real here, having dig

So tailwind. margin with that, normalization, that nothing, again, do should a we of returning if to be -- nice some should that level

been see landfill X across it's participate expansion. of lines as the of to margin we out So opportunity This expect really year, year, all well. next for business And we X.

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

to for can that mean, of landfill we coming any and happening back guess? of mean this there go? closure that I to from other tons the back, end that XXX,XXX place at year. the I would down. Is go kind one, I first what keep that volume really The you're

-- little the into Well, the private with on of has weeds, a battling to Island it the they've closure of sites bit get both not as And of municipal out over Long last competitive Island, well, on gone been year private it the but kind Long Brookhaven. much site. to a site there's too site a and Brookhaven X

So to site. of us the XXXX. that majority did in returns other of vast some it waste expectation, go to But that our private

XX% XX%, [ maybe... Not maybe but ] the it, of XXX%

we to Yes. aren't take landfill. lot a of return those to But you're expect our and I places right. to mean it, there flows

what's XX%, for in comes to I into back, is any? of how XX% 'XX? that that maybe guess, is if mean I XX% growth part XX% that And built the much there, EBITDA

guidance. growth specific to reflected overall. the that's but this that's point, each Yes, through not, with parsing in outlook high-level in Again, XX% encompassed the the driver, kind of we're XX% associated at

color What's 'XX? kind on on maybe how on huge then Is just Okay. in circle mean, carrying your 'XX. thoughts on this M&A. of just a size? $XXX the back the a And deal I to maybe again a that bit more million has been pipeline. the from And market makeup Maybe into little competitive been? year M&A then perspective has

Yes.

adjacent to that companies bit And existing look a the of there's really handful or great we've million the mix lot at some markets transactions tuck-ins there's adjacencies. revenue we a between markets over nice there. if focus last then sub-$XX So of that done are little pipeline, a our larger a are year. like of There's

direct where fair to owners acquisitions well. companies and of of with a come party-to-party as through a have and continue then we process a come some price balance we discussions to We banker-led have

-- are not XX% probably our deals it's an So less of than we're coming still. process through auction

a over Street So on built relationships the of that with lot the John really we're effective years. has

Another great pipeline accounts for group. our growth is our national

or wins had we've retail years over XX commercial customers. multisite for that So or large a industrial team

to we our helps parties. it as get And some do well them trust, we And some of time. and broker out pipeline really and to relationships time. over third-party that them our we trucks, development those form we third companies service with business with, with We know over

gives Both us mind which Dutchess entire stepped into grow last in continue opportunities Royal and to to again, in market Mid-Atlantic, to And County, the new opportunities tuck-ins then keep in the Mid-Atlantic. Casella stepping significant into around the opportunity year. that throughout for a Now, additional Westchester opportunities were we area. additional that

growth. growth Ned of $XX continued $XX terms the of some will as from fit a nicely and opportunities businesses very that just very very, million in $XX said, transactions future million, are exciting standpoint. in those exciting, And exciting So million, $XX million, the very

me. for And color. Great Okay. then last one

assets now development GFL that Just with through 'XX bridges? does that the kind come capital the in the down and Twin post-acquisition of we're spending,

reality it Well, would off, we but are function roll that's to to in it's -- naturally were be deploying that of sort activity new to be a stop active of going and how where capital. it's we acquisition going the a is thing if

acquisition So out answer plays that. next saying standpoint. on it's It it's another year impossible depends way an of how to from

[Operator Feniger Instructions] Our of Michael next line question the of of comes Bank America. from

if these as starting some the New announce market more well. seeing in your some there We've M&A. public on market just some of Northeast side, and more out M&A York on the curious seen Is terms -- of of just some peers? I'm flip curious out discipline competitive you're assets? we see in seeing of in we're acquisitions more Or competition there are Northeast I'm players public from is it to the some some to as the the getting it more announcements pipeline?

we from that anticipate our significant competitive additional think I activities. don't perspective, any

Ned that of for years the we've on transactions a Northeast As and lot in we're for in the based the had that we marketplace now. -- of that almost we've said, years lot doing are the built relationships a XX presence

year. with are significantly will so that the be to I part, what over as But most would larger there other deals don't the last going the So The certainly, than we think companies. competitive, no seen always seeing more market are characterize competitive. additional for we've be currently public They deals.

labor, Great to Obviously, and a inflation there's the fourth XXXX do thinking a how in how you're cost But that I'm what some kind know. as you just to and there's up parts. seeing lot I for into your you're And the noise bigger moving curious, third curious for just just that? underlying there's picture, offset pricing inflation what about of of of the quarter know moving pieces. lot But Okay. kind I'm cost sets like you move looks the think of quarter. of

been it, course call Yes. cost year. -- the The over of The stubborn, cost this I has inflation this inflation Brad. is would

And been areas across of but that we've remains of within X% is in kind there of I to year-to-date, big areas the an and kind a are that, to overall. in cost other where our to that X% of sort running sort So quarter, mid-Xs it's with third issue where inflation X% some think, as consistent, X% eased, average stack.

crystal certainly Looking next we're have we budgeting ball, no year, ahead assuming easing. but don't a to

costs And to price. to is and in have drive try do so what continue other going and ways we're to reduce

Thank Casella this for to turn now remarks. back no showing like John at you. to questions closing further I'm time. it I'd

have XXXX Have I everybody, Thanks, all day. joining forward everybody. in hope Halloween. Look earnings us you Thanks, a for you. great discussing Thank safe fourth February. fun a this morning. our and to quarter

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

now disconnect. may You