Q1 2024 Casella Waste Systems Inc Earnings Call

Operator: Good day, and thank you for standing by. Welcome to the Casella Waste Systems First Quarter 2024 Earnings Conference Call.

Okay.

Good day, and thank you for standing by.

Welcome to the Casella waste systems first quarter 2024 earnings conference call.

Operator: At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 1 again. 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.

At this time all participants are in a listen only mode.

After the presentation, there will be a question and answer session.

To ask a question during the session you will need to press star one one on your telephone.

You will then hear an automated message advising your hand is raised.

To withdraw your question. Please press star one one again please.

Be advised that today's conference is being recorded.

Speaker Change: I'd now like to hand, the conference over to Charlie will Hunter director of Investor Relations. Please go ahead.

Charlie Wohlhuter: Thank you, Liz. Good morning, and thank you for joining us on the call today. Today we will be discussing our first quarter 2024 results, which were released yesterday afternoon. Here with me are John Casella, Chairman and Chief Executive Officer of Casella Waste Systems, and Ned Coletta, our president.

Speaker Change: Thank you Liz good morning, and thank you for joining us on the call today.

Speaker Change: Today, we will be discussing our first quarter 2024 results, which were released yesterday afternoon.

Charlie Hunter: Here with me are John Casella, Chairman, and Chief Executive Officer of Casella waste systems.

Charlie Hunter: Ned Coletta, our president Brian.

Charlie Wohlhuter: Brad Helgeson, our Chief Financial Officer, Jason Mead, our Senior Vice President of Finance and Treasurer, and Sean Steves, our Senior Vice President and Chief Operating Officer of Solid Waste Operations. After a review of these results and an update on the company's activities and business environment, we will be happy to take your questions. But first, please note that various remarks we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

Charlie Hunter: Brad Helgeson, our Chief Financial Officer, Jason Mead, our senior Vice President of Finance and Treasurer.

Charlie Hunter: John Stephens, our senior Vice President and Chief operating Officer Salt was the operations.

Charlie Hunter: After a review of these results and an update on the company's activities and business environment, we will be happy to take your questions.

Charlie Hunter: But first please note that various remarks, we may make about the companys future expectations plans and prospects constitute forward looking statements for the purposes of the Safe Harbor provisions under the private Securities Litigation Reform Act of 1995.

Charlie Wohlhuter: Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factor section of our most recent annual report on Form 10-K, which is on file with the SEC. In addition, any forward-looking statements represent our views only as of today, and should not be relied upon as representing our views at any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views change.

Charlie Hunter: Actual results may differ materially from those indicated by these forward looking statements as well as a result of various important factors, including those discussed in the risk factors section of our most recent annual report on Form 10-K, which is on file with the SEC.

Charlie Hunter: In addition, any forward looking statements represent our views only as of today.

Charlie Hunter: It should not be relied upon as representing our views of any subsequent date.

Charlie Hunter: While we may elect to update forward looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change.

Charlie Wohlhuter: These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, April 26, 2024. Also, during this call, we will be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort are included in our press release file on Form 8K with the SEC. And with that, I will now turn it over to the call, turn over the call to John Casella to begin our discussion.

Charlie Hunter: These forward looking statements should not be relied upon as representing our views as of any date subsequent to today.

Charlie Hunter: 26th 2024.

Charlie Hunter: Also during this call we will be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.

Charlie Hunter: Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort.

Charlie Hunter: Are included in our press release filed on form 8-K with that C. C.

Charlie Hunter: And with that I will now turn it over to Paul.

Turn over the call to John Casella to begin our discussion.

John W. Casella: Thanks, Charlie, and good morning, everyone, and welcome to our first quarter 2024 conference call. I'll begin today's remarks with highlights from our first quarter and then have Brad and Ned go into more details on our results and a strategic overview. But first, I'd like to take a minute to credit several of our team members who exemplify our core values and who have been recognized for their service. They put service to our communities first while operating in a safe and responsible manner.

Thanks, Charlie and good morning, everyone and welcome to our first quarter 2024 conference call I'll begin today's remarks with highlights of our first quarter and then have Brad and Ned went through more details on our results and our strategic overview.

John W. Casella: But first I'd like to take a minute to credit several of our team members, who exemplify our core values and who have been recognized for their service. They put service to our communities first while operating in a safe and responsible manner. We are fortunate to have four drivers.

John W. Casella: We were fortunate to have four drivers earn Driver of the Year recognition by the National Waste and Recycling Association through their focus on enhancing safety and being a strong representative of the solid waste industry. They are Curtis Rhodes, Sean Dutton, John Nishad, and Cesar Guerrero.

John W. Casella: Earn driver of the year recognition by the National waste recycling Association, who their focus to enhance safety and be a strong representative.

John W. Casella: I would waste industry, Eric Curtis roads Sharon.

John W. Casella: John the shot and physical world.

John W. Casella: Our long-time market area manager, Bill Myers, in northern New York, was named Citizen of the Year by the United Way of the Adirondack region for his community engagement. They lead by example and inspire the rest of us to make our own positive contributions to the customers and communities we serve. Shifting to the results, as you saw in our earnings release yesterday, we hit the ground running to begin 2024. Our business is performing at a high level.

John W. Casella: The one time market area manager Bill Myers in Northern New York was named citizen of the year by the United way of the Adirondack region for his community engagement.

John W. Casella: Lead by example.

John W. Casella: Prior to the rest of us can make our own positive contributions to the customers and communities we serve.

John W. Casella: Shifting to the results as you saw in our earnings release yesterday, we hit the ground running to begin in 2024, our business is performing at a high level revenues were up nearly 30% year over year, while we drove adjusted EBITDA growth of already over 40%. This resulted in a 150 basis point margin improvement.

John W. Casella: Revenues were up nearly 30% year over year, while we drove adjusted a bit of growth of over 40%. This resulted in a 150 basis point margin improvement, which demonstrates the strong execution of our operating strategies and the successful ongoing integration of some of the largest acquisitions in the company's history. It's truly impressive and speaks really well of our entire team.

John W. Casella: <unk>, which demonstrates the strong execution of our operating strategies and the successful ongoing integration of some of the largest acquisitions in the company's history is truly impressive.

John W. Casella: Really well of our entire team.

John W. Casella: On that note, acquisition integration has been among our key priorities, as you know. The hard work our team has done is very evident as we grow. Their commitment and dedication to be of service to each other, our customers, and the communities we serve is evident. The senior team and I are very proud of the culture.

John W. Casella: On that note acquisition integration has been among our key priorities as you know the hard work our team has done.

John W. Casella: It's very evident as we grow their commitment and dedication to be of service to each other our customers and the community communities we serve shows.

John W. Casella: And your team and I are very proud of the culture. This is the foundation that has positioned us well for another exciting year of growth and performance.

John W. Casella: This is the foundation that's positioned us well for another exciting year of growth and performance. Looking now at a few of our key strategies in the performance of operations. Beginning with the landfills, as we expected in the first quarter, volumes were down with lower C&D and special waste tonnage.

John W. Casella: Looking now to a few of our key strategies and the performance of operations.

John W. Casella: Beginning with the landfills as we expected in the first quarter volumes were down with lower C&D and special waste tonnages to be clear. This is not assigning we're experiencing weaker construction activity or a signal from the economy. In fact rollout collection volumes were up one 4% in the quarter followed by commercial collection volumes.

John W. Casella: To be clear, this is not a sign we're experiencing weaker construction activity or a signal from the economy. In fact, rollup collection volumes were up one point four percent in the quarter, followed by commercial collection volumes up nearly one percent. C&D disposal dynamics are being influenced by a large landfill in the Northeast that is projected to close at the end of this year.

John W. Casella: Up nearly 1%.

John W. Casella: [noise] CND disposal dynamics are being influenced by a large landfill in the northeast that is projected to close at the end of this year, we anticipate that CND disposal market will readjust following the closure.

John W. Casella: We anticipate that the C&D disposal market will readjust following the closure. Regardless, we continue to focus our operating programs at the landfills as well as our quality of revenue. Our average landfill price per ton stat is often a good metric to measure our improvement in the quality of the inbound waste stream. For the third consecutive quarter, the increase was double digits on a percentage basis.

John W. Casella: Regardless, we continue to focus our operating programs at the landfills as well as our quality of revenue.

John W. Casella: Our average landfill price per ton stat is often a good metric to measure our improvement in quality of the inbound waste streams for third consecutive quarter. The increase was double digits on a percentage basis.

John W. Casella: Turning to the collection side of the business, we've executed well and have a lot of positive momentum as we advance our strategies across this business line. Our investment in automated side loaders, routing technology, and real-time data intelligence is providing nice benefits. We are capturing labor, safety, and productivity enhancement as we steadily roll out these programs across our collection fleet. As part of this effort, we aim to keep our costs low for our customers.

John W. Casella: Turning to the collection side of the business, we've executed well and have a lot of positive momentum as we advance our strategies across this business line our investment in automated side loader is routing technology and real time data intelligence are providing nice benefits, we are capturing labor safety and pro.

John W. Casella: <unk> enhancement as we steadily roll out these programs across our collection fleet as part of the efforts, we aim to keep our costs low for our customers.

John W. Casella: Our ongoing fleet automation plan is attracting larger and more diverse labor pools and creating a safer work environment for our frontline workers. We experienced favorable trends in our turnover in TRIR safety metric in 2023, and we aim to repeat this in 2024 with incentives aligned up and down the organization. In terms of routing initiatives, we completed a number of routing projects in the first quarter.

Our ongoing fleet automation plan is attracting larger and more diverse labor pools, and creating a safer work environment for our frontline workers.

John W. Casella: We experienced favorable trends in our turnover and TRA, our safety metric in 2023, and we aim to repeat this in 2024 with incentives aligned up and down the organization.

John W. Casella: In terms of routing initiatives, we completed a number of routing projects in the first quarter. This is a reflection of our focus on driving synergies in the business John Steve and his team are applying these operating gains with analytics to help make more informed decisions for better service accuracy efficiency and quality.

John W. Casella: This is a reflection of our focus on driving synergies in the business. Sean Steves and his team are applying these operating gains with analytics to help make more informed decisions for better service accuracy, efficiency, and quality. These positive contributions are showing up in the numbers. Collection-adjusted EBITDA margins improved more than 200 basis points year-over-year in the first quarter, excluding acquisitions.

John W. Casella: <unk>.

John W. Casella: These positive contributions are showing up in the numbers collection adjusted EBITDA margins improved more than 200 basis points year over year in the first quarter. Excluding acquisitions, we have already begun deploying these programs into the mid Atlantic region with more opportunity ahead of us.

John W. Casella: We've already begun deploying these programs in the Mid-Atlantic region, with more opportunity ahead of us. We are highly focused on service excellence and new customer integration. As we grow the business and onboard new customers, these efforts will help enable our success in customer retention and satisfaction. In the resource solutions part of the business, performance in this segment was strong in the quarter with a bit of growth and margin improvement. The growth was widespread.

John W. Casella: We are highly focused on service excellence and new customer integration as we grow the business and onboard new customers. These efforts will help enable our success in customer retention and satisfaction.

John W. Casella: And the resource solutions part of the business performance in this segment was strong in the quarter with year over year, adjusted EBITDA growth and margin improvement the growth was widespread yes improvement in recycling commodity prices was a tailwind. However, we experienced a greater contribution in the quarter from our strategic.

John W. Casella: Yes, improvement in recycling commodity prices was a tailwind. However, we experienced a greater contribution in the quarter from our strategic investments. Namely, our upgraded Boston MRF is firing on all cylinders with results that delivered strong incremental adjusted EBITDA in the first quarter. Modernization of our Willimantic MRF will kick off later this year, which will be a similar investment in further enhancing the recycling capabilities we provide. On an overall basis, whether it be a full upgrade of the processing equipment or selectively replacing certain pieces of equipment, we are constantly looking for ways to improve our operating efficiencies, better end product quality, and enhance recovery across our sustainability infrastructure while generating solid returns.

John W. Casella: <unk>, namely our upgraded Boston Merck is firing on all cylinders with the results that delivered strong incremental adjusted EBITDA in the first quarter monetization of our Willimantic Merck will kick off later this year, which will be a similar investment in further enhancing the recycling capabilities we provide.

John W. Casella: On an overall basis, whether it be full upgrade of the processing equipment or selectively replacing certain pieces of equipment. We are constantly looking for ways to improve our operating efficiencies better and product quality and enhanced recovery across our sustainability infrastructure, while generating solid returns in terms.

John W. Casella: In terms of the national account business, customer demand for our professional services remains quite strong, and we grew a bit in this line of business for the quarter. The sales strategy is moving; this sales strategy is moving to our mid-Atlantic region, where we see opportunity over time to grow various customer segments. And finally, we really like the growth runway that we see ahead for our entire business; our core operating strategies are working well and providing us with opportunities to drive further value. We have a number of organic development projects to come. And, of course, our M&A pipeline remains robust with exciting opportunities. Now, I'll turn it over to Brad to go through the results. Thanks, John.

John W. Casella: The national account business customer demand for our professional services remains quite strong and we grew a bit in this line of business for the quarter.

John W. Casella: The sales strategy is moving.

John W. Casella: This sales strategy is moving to our mid Atlantic region, where we see opportunity over time to grow various customer segments.

John W. Casella: And finally, we really like the growth runway that we see ahead for our entire business. Our core operating strategies are working well and providing us with opportunity to drive further value.

John W. Casella: We have a number of organic development project to come and of course, our M&A pipeline remains robust with exciting opportunities now I will turn it over to Brad to go through the results. Thanks.

Bradford J. Helgeson: Thanks, John. Good morning, everyone.

Bradford J. Helgeson: Thanks, John and good morning, everyone.

Bradford J. Helgeson: Revenues in the first quarter were $341 million, up 78.4 million, or 29.9% year-over-year, with $69 million from acquisition rollover and $9.4 million from organic growth, or 3.6%. Solid waste revenues were up 36.4% year-over-year, with acquisition growth of 33.9%, price up 5.5%, and volumes down 2.8%. Revenues in the collection line of business were up 51% year over year, with prices up 6.2% and volumes down 1.2%. Volume declines were concentrated among residential customers as we worked to improve the quality of revenue and margins, while we experienced positive volume growth in both the front-load commercial and roll-off lines of business in the core.

Bradford J. Helgeson: Revenues in the first quarter were $341 million up $78 4 million or 29, 9% year over year with $69 million from acquisition rollover and $9 4 million from organic growth or three 6%.

Bradford J. Helgeson: Solid waste revenues were up 36, 4% year over year with acquisition growth of 33, 9% price up five 5% and volumes down two 8%.

Bradford J. Helgeson: Revenues in the collection line of business were up 51% year over year with price up six 2% and volumes down one 2%.

Bradford J. Helgeson: Volume declines were concentrated among residential customers as we work to improve the quality of revenue and margins, while we experienced positive volume growth in both the frontload commercial and roll off lines of business in the quarter.

Bradford J. Helgeson: Revenues in the disposal line of business were down 2.6% year-over-year, with landfill pricing up 4.7% and landfill tons down 12.4%. MSW volumes into the landfills were up 1.7% in the quarter, but C&D volumes remain soft, which we expect to continue over the next several quarters, and volumes of soils and sludges were also down.

Bradford J. Helgeson: Revenues in the disposal line of business were down two 6% year over year with landfill pricing up four 7% and rental times down 12, 4%.

Bradford J. Helgeson: MSW volumes into the landfills were up one 7% in the quarter, but C&D volumes remained soft, which we expect to continue over the next several quarters.

Bradford J. Helgeson: The volumes of soils and sluggish were also down.

Bradford J. Helgeson: The average price per ton at the landfill was up 13.3% year over year, reflecting a mixed shift away from lower priced streams as we held the line on price and prioritized preserving our valuable airspace. Resource Solutions revenues were up 11% year over year, with prices up 9.2% across the segment and acquisitions contributing 4.4%. Price growth was driven by an increase of 58% or $41 per time in our average commodity revenue over Q1 2023. Of course, our contract and fee structures work to mute the impact of commodity price swings, both in both up and down markets.

Bradford J. Helgeson: The average price per ton at the landfills was up 13, 3% year over year, reflecting a mix shift away from lower priced streams as we held the line on price and prioritize preserving our valuable aerospace.

Bradford J. Helgeson: Resource solutions revenues were up 11% year over year with price up nine 2% across the segment and acquisitions contributing four 4%.

Bradford J. Helgeson: Price growth was driven by an increase of 58% or $41 per ton.

Bradford J. Helgeson: Our average commodity revenue over Q1 2023.

Bradford J. Helgeson: Of course, our contract and fee structures work to mute the impact of commodity price swings both in both up and down markets.

Bradford J. Helgeson: So the nearly 60% increase in commodity prices only yielded $3 million of increased revenue in the quarter. National Accounts revenue within Resource Solutions was up 1% year-over-year, with price up 6%, while volume was down 4%, primarily driven by municipal biosolids, as we've been a bit more selective with that. Adjusted EBITDA was $71 million in the quarter, up 20.4 million, or 40.2% year-over-year, with $15.9 million of the change from acquisitions and $4.5 million from organic growth, Solid Waste Adjusted EBITDA was $64.8 million in the quarter, up $15.3 million year-over-year, with acquisitions, strong pricing, and our operating initiatives driving this growth.

Bradford J. Helgeson: Nearly 60% decrease in commodity prices only yielded $3 million of increased revenue in the quarter.

Bradford J. Helgeson: National accounts revenue within resource solutions was up 1% year over year with price up 6%, while volume was down 4%, primarily driven by municipal bio solids as we've been a bit more selective with that work.

Bradford J. Helgeson: Adjusted EBITDA was $71 million in the quarter up $20 4 million or 42% year over year with $15 $9 million of the change from acquisitions and $4 $5 million from organic growth or eight 8%.

Bradford J. Helgeson: Solid waste adjusted EBITDA was $64 $8 million in the quarter up $15 $3 million year over year with acquisition strong pricing and our operating initiatives driving this growth.

Bradford J. Helgeson: Resource Solutions' Adjusted EBITDA was $6.2 million in the quarter, up $5.1 million year over year, driven by the benefits of the Boston River retrofit, higher recycled commodity prices, and acquisition. Adjusted EBITDA margins were 20.8% for the quarter, up 150 basis points year over year. Once again, our pricing programs fully offset cost inflation in the quarter, which we estimated at approximately four and a half percent, excluding fuel. However, inflation has been moderating and was down a bit sequentially in the quarter but, of course, remains elevated in historical terms. At a high level, the Euroviere-Ibida Margin Bridge included a few key drivers.

Bradford J. Helgeson: <unk> solutions, adjusted EBITDA was $6 $2 million in the quarter up $5 $1 million year over year, driven by the benefits of the Boston retrofits higher recycled commodity prices and acquisitions.

Bradford J. Helgeson: Adjusted EBITDA margins were 28% for the quarter up 150 basis points year over year.

Bradford J. Helgeson: Once again, our pricing programs fully offset cost inflation in the quarter, which we estimate at approximately four 5% excluding fuel.

Bradford J. Helgeson: Inflation has been moderating and it was down a bit sequentially in the quarter, but of course remains elevated in historical terms.

Bradford J. Helgeson: At a high level the year over year EBITDA margin bridge included a few key drivers.

Bradford J. Helgeson: The positive spread of price over cost inflation, higher recycled commodity prices, and improved operating performance, particularly cost efficiencies in the collection business, in total represented approximately 150 basis points of margin. The Boston Murph retrofit contributed approximately $2.5 million, or 50 basis points of margin, and acquisitions and related synergies contributed another 50 basis points of margin. If you recall, our expectation was for acquisitions to weigh slightly on consolidated margins in 2024, as they did in the fourth quarter, but performance has exceeded expectations, including the pace of achieving synergies, particularly a twin-bridge. These were partially offset by approximately 100 basis points of margin headwind from the lower landfill volumes and higher leachate costs due to the wet weather that we experienced.

Bradford J. Helgeson: The positive spread of price over cost inflation higher recycled commodity prices and improved operating performance, particularly cost efficiencies in the collection business in total represented approximately 150 basis points of margin improvement.

The Boston Merck retrofit contributed approximately $2 5 million.

Bradford J. Helgeson: Or 50 basis points of margin.

And acquisitions and related synergies contributed another 50 basis points of margin.

Bradford J. Helgeson: As you recall, our expectation was for acquisitions to weighed slightly on consolidated margins in 2024 as it did in the fourth quarter, but performance has exceeded expectations, including the pace of achieving synergies, particularly at twin bridges.

Bradford J. Helgeson: These were partially offset by approximately 100 basis points of margin headwind from the lower landfill volumes and higher leachate costs with the wet weather that we experienced in the quarter.

Bradford J. Helgeson: Cost of operations in the quarter was up $50.6 million year over year, but down nearly 100 basis points as a percentage of revenues as the company continues to outpace inflation on the revenue line and operate more efficiently. $48.1 million of the increase was from acquisitions and $2.5 million from the base business. So on a same store basis, cost of operations was down over 140 basis points as a percentage of revenue year over year.

Bradford J. Helgeson: Cost of operations in the quarter was up $56 million year over year, but down nearly 100 basis points as a percentage of revenues as the company continues to outpace inflation on the revenue line and operate more efficiently.

Bradford J. Helgeson: $48 1 million of the increase was from acquisitions and $2 5 million from the base business. So on a same store basis cost of operations was down over 140 basis points as a percentage of revenue year over year.

Bradford J. Helgeson: General and administrative costs in the quarter were up $8.7 million year-over-year, but down 60 basis points as a percentage of revenue. $5 million of the increase was from acquisitions. The company is investing in the G&A line to support our growth, including adding a new region to manage our Mid-Atlantic operations, but we expect to gain further leverage here over time as we grow. Appreciation and amortization costs were up $20.6 million year-over-year, with $19 million of the increase resulting from the recent acquisition.

Bradford J. Helgeson: General and administrative costs in the quarter were up $8 $7 million year over year, but down 60 basis points as a percentage of revenue.

Bradford J. Helgeson: $5 million of the increase was from acquisitions.

Bradford J. Helgeson: The company is investing in the G&A line to support our growth, including adding a new region to manage our mid Atlantic operations, we expect to gain further leverage here over time as we grow.

Depreciation and amortization costs were up $26 million year over year with $19 million of the increase resulting from the recent acquisition activity.

Bradford J. Helgeson: As I explained last quarter, we expect higher DNA for the first few years after each acquisition, driven in particular by the accelerated amortization of identifiable and tangible DNA. To put this in perspective, DNA associated with the acquisitions was over 27% of acquired revenues in the quarter as compared to 13% for our base business. Our effective tax rate was 30% in the quarter. Certain non-deductible expenses and discrete items pushed the rate above our statutory rate of approximately 27%.

Bradford J. Helgeson: As I explained last quarter, we expect heightened DNA for the first few years after each acquisition driven in particular by the accelerated amortization of identifiable intangibles.

Bradford J. Helgeson: To put this in perspective DNA associated with the acquisitions was over 27% of acquired revenues in the quarter as compared to 13% for our base business.

Our effective tax rate was 30% in the quarter certain non deductible expenses and discrete items pushed the rate above our statutory rate of approximately 27%.

Bradford J. Helgeson: Adjusted net loss was $0.8 million in the quarter, down $6.1 million compared to the prior year with the accelerated DNA associated with acquisitions weighing on earnings. Gap net loss was $4.1 million in the quarter, impacted by DNA and $5 million of near-term expenses related to acquisition due diligence, closing, and integration.

Bradford J. Helgeson: Adjusted net loss was <unk> $8 million in the quarter down $6 1 million compared to prior year with the accelerated D&A associated with acquisitions weighing on earnings.

Bradford J. Helgeson: GAAP net loss was $4 $1 million in the quarter impacted by DNA and $5 million of near term expenses related to acquisition due diligence closing and integration.

Bradford J. Helgeson: Adjusted EPS with a loss of $0.01 in the quarter and GAAP EPS with a loss of $0.07 in the quarter. Net cash provided by operating activities was $7.7 million in the quarter, compared to $16.1 million in the first quarter of 2023. This was driven by higher outflows from net changes in assets and liabilities, including the payment of the accrued FLSA legal settlement of $6.2 million and AP timing, which should resolve itself over the balance of the year, partially offset by lower AR due to a modest improvement in DSR.

Bradford J. Helgeson: Adjusted EPS was a loss of one center in the quarter and GAAP EPS was a loss of <unk> <unk> in the quarter.

Bradford J. Helgeson: Net cash provided by operating activities was $7 $7 million in the quarter compared to $16 1 million in the first quarter of 2023.

Bradford J. Helgeson: This was driven by higher outflows from net changes in assets and liabilities, including the payment of the accrued FSA legal settlements of $6 $2 million, an AP timing, which should resolve itself over the balance of the year, partially offset by lower <unk> due to a modest improvement in DSO.

Bradford J. Helgeson: Adjusted free cash flow with a loss of $2.4 million in the quarter compared to positive $2.2 million in the first quarter of 2023. As I'm sure you all know, the first quarter is our seasonally weakest quarter, particularly from a cash flow perspective, and results were further impacted this quarter by $4 million in higher replacement capital. As of March 31, we had $1.05 billion of debt, $189.5 million of cash, and available liquidity of $462 million.

Bradford J. Helgeson: Adjusted free cash flow was a loss of $2 4 million in the quarter compared to positive $2 $2 million in the first quarter of 2023.

Bradford J. Helgeson: As I'm sure you all know the first quarter is our seasonally weakest quarter, particularly from a cash flow perspective in.

Bradford J. Helgeson: And our results were further impacted this quarter by $4 million and higher replacement Capex.

As of March 31, we had $105 billion of debt of $189 $5 million of cash and available liquidity of $462 million.

Bradford J. Helgeson: Our consolidated net leverage ratio, for purposes of our bank covenants, was 2.72 times. Our average cash interest rate was 5.6%, and we had fixed interest rates on over 77% of our debt. Our liquidity and leverage profile will enable us to be opportunistic in continuing to execute on our growth strategy and robust M&A pipeline. As stated in our press release yesterday, we reaffirmed guidance for 2024 across all of our key financial metrics. While the business is off to a great start this year, it's premature to consider revising guidance.

Bradford J. Helgeson: Our consolidated net leverage ratio for purposes of our bank covenants was 272 times, our average cash cash interest rate was five 6% and we had fixed interest rates on over 77% of our debt.

Bradford J. Helgeson: Our liquidity and leverage profile will enable us to be opportunistic and continuing to execute on our growth strategy and robust M&A pipeline.

Bradford J. Helgeson: As stated in our press release yesterday, we reaffirmed guidance for 2024 across all of our key financial metrics.

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

Bradford J. Helgeson: Your guidance ranges implies significant growth in the last three quarters of the year, particularly from a cash flow standpoint, but this is consistent with the normal seasonality of our business and our plan for this year.

Our full year guidance ranges implies significant growth in the last three quarters of the year, particularly from a cash flow standpoint, but this is consistent with the normal seasonality of our business and our plan for this year.

Edmond R. Coletta: Thanks, Brad, and good morning, everyone. As discussed last quarter, we completed seven acquisitions in 2023 and acquired approximately $315 million of annualized revenue. Our team has been hard at work through late 2023 and into early 2024 to successfully integrate the newly acquired businesses into our operations systems and back office. And given these successful efforts, we're tracking well against Proforma for each acquisition. Our Mid-Atlantic team, led by Kyle Larkin, is doing a great job executing against our operating efficiency plan.

Bradford J. Helgeson: With that I'll turn it over to Ned.

Edmond R. Coletta: Thanks, Brad and good morning, everyone as discussed last quarter, we completed seven acquisitions in 2023 and acquired approximately $315 million of annualized revenues.

Edmond R. Coletta: Our team has been hard at work through late 2023 and into early 2024 to successfully integrate the newly acquired businesses into our operations systems and back office.

Edmond R. Coletta: And given the successful efforts, we are tracking well against pro forma for each acquisition.

Edmond R. Coletta: Our mid Atlantic team led by Kyle Larkin is doing a great job executing against our operating efficiency plans.

Edmond R. Coletta: To date, we have installed on-board computers on roughly 55 trucks and achieved limited route synergies through our early automation and route optimization. We have 17 automated side load trucks ordered for 2024 for this region and expect to drive meaningful operating cost reductions in 2025 when these trucks are delivered and routes are optimized. We're tracking well against our plan to recognize $8 million of operating cost synergies over the next three years. Our IT, finance, and customer care teams have been working tirelessly since last summer on the Mid-Atlantic systems integrations.

Edmond R. Coletta: To date, we have installed onboard computers on roughly 55 trucks and achieve limited route synergies through our early automation and route optimization efforts. We have 17 automated side loader trucks order for 2024 for this region and expect to drive meaningful operating cost reductions in 2025.

Edmond R. Coletta: These trucks are delivered and routes are optimized we're tracking well against our plans are recognized $8 million of operating cost synergies over the next three years.

Edmond R. Coletta: Our.

Edmond R. Coletta: <unk> financing customer care teams have been working tirelessly since last summer on the mid Atlantic systems integrations and in early April we successfully completed the final migrations from Tfl.

Edmond R. Coletta: And in early April, we successfully completed the final migrations from GFL. A big thank you to the entire Casella team for all your hard work, and I'd like to extend a special thank you to the GFL team for their help providing transition services and assisting us with the successful migration off their. Our Western Region team, led by Michael Stamen, has partnered extremely well with Scott Earle and the Twin Bridges team to quickly advance integration efforts to drive operating synergies and ensure top-notch customer service. To date, we have eliminated 14 trucks for route synergies in closed to operating locations.

Speaker Change: Thank you to the entire to solid team for all your hard work and I'd like to extend a special thank you to the Tfl team for their help providing transitional services and assisting us with the successful migration off their systems.

Speaker Change: Our Western region team led by Michael statement is partnered extremely well, let Scott or out in this way Enbridge is keen to quickly advance integration efforts to drive operating synergies and ensure top notch customer service to date, we have eliminated 14 trucks around synergies and close to operating locations three of them.

Speaker Change: These efforts we are tracking well ahead of our three year synergy plan to eliminate $4 million of costs.

Edmond R. Coletta: Through these efforts, we are tracking well ahead of our three-year synergy plan to eliminate $4 million of cost. Our acquisition pipeline today is approximately $800 million of potential revenue across our entire footprint, including the Mid-Atlantic region. We are positioned very well to have another solid, acquisitive year in 2025.

Speaker Change: Our acquisition pipeline today is approximately $800 million of potential revenues across our entire footprint, including the mid Atlantic region, We're positioned very well to have another solid equates to hit here in 2024.

Speaker Change: On the development side, we continue to invest in returns driven sustainability infrastructure, including a full equipment upgrade aeropostale recycling facility as Sean discussed.

Edmond R. Coletta: On the development side, we continue to invest in return-driven sustainability infrastructure, including the full equipment upgrader at Boston Recycling Facility, as John discussed. The facility continues to operate well above pro forma in the first quarter to deliver strong incremental growth. Given the success of that facility upgrade, we're scheduled for the full upgrade of our Willimantic, Connecticut facility in Q4 of 2020. We expect our first R&G project at the Juniper Ridge landfill to be online in mid-year 2024, with final commissioning expected in the coming week. RKABP owns and will operate the facility while Casella generates a royalty stream from the sale of the gas and rinse with zero capital investment by Casella.

Speaker Change: The facility continues to operate well above pro forma in the first quarter to deliver strong incremental growth given the success of that facility upgrade we're scheduled for the full upgrade of our Willimantic, Connecticut facility in Q4 of 2024.

Speaker Change: We expect our first R&D projects at the Juniper Ridge landfill to be online in mid year 2024 with final commissioning expected in the coming weeks Arcadia VP owns and will operate the facility while T cell generates a royalty stream from the sale of the gas in range with zero capital investment.

Seller.

Speaker Change: In addition, we anticipate an additional two to three RMG projects with third party developers coming online in the second half of 2025.

Speaker Change: Our team also continues to make excellent progress in the Buildout of the rail offload infrastructure and at our Mckean, Pennsylvania landfill and we expect that facility. The online in mid 2024 with our first half floods received in this first phase, we're bringing online capacity offload up to 5000 tons per day of <unk>.

Edmond R. Coletta: In addition, we anticipate an additional two to three R&G projects with third-party developers coming online in the second half of 2020. Our team also continues to make excellent progress in the buildout of the rail offload infrastructure at our McKean, Pennsylvania landfill, and we expect the facility to be online in mid-2024 with our first test loads. In this first phase, we're bringing on-line capacity to offload up to 5,000 tons per day of containerized MSW soils and sludges.

Speaker Change: <unk> MSW soya allergens, such as we expect this operation to ramp very slowly over the next few years as this investment is less about near term volumes and more about long term risk management and flexibility as they want to ensure a viable waste disposal outlets long term in the <unk>.

Edmond R. Coletta: We expect this operation to ramp up very slowly over the next few years, as this investment is less about near-term volumes and more about long-term risk management and flexibility, as we want to ensure viable waste disposal outlets in the long term in the capacity-constrained North. As we continue to grow as an organization, we are focused on maintaining our positive culture and core value system by investing in developing our. This is especially important as our team grew by over 30% or 1000 employees in the last year through acquisition and organic growth.

Speaker Change: Pasty constrained northeast.

Speaker Change: As we continue to grow as an organization we are focused on maintaining our positive culture and core values system by investing and developing our people. This is especially important as our team grew by over 30% or 1000 employees in the last year through acquisition and organic growth in our <unk>.

Speaker Change: He did an amazing job effectively onboarding and welcoming our new team members.

Speaker Change: As demonstrated in the first quarter, we are set up very nicely in 2024 to continue executing against our core strategies to drive further shareholder value and profitable growth.

Edmond R. Coletta: And our team did an amazing job effectively onboarding and welcoming our new team. As demonstrated in the first quarter, we are set up very nicely in 2024 to continue executing against our core strategies to drive further shareholder value and profitable growth. And with that, I'd like to turn it back to the operator for questions.

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

Speaker Change: As a reminder, if you'd like to ask a question at this time. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Operator: As a reminder, if you'd like to ask a question at this time, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 one again. Our first question comes from a line from Michael Hoffman with Steve.

Speaker Change: Our first question comes from the line of Michael Hoffman with Stifel.

Michael Edward Hoffman: Good morning.

Michael Edward Hoffman: Hi, good evening.

Michael Edward Hoffman: Good morning, Good morning, Michael I think.

Michael Edward Hoffman: First and foremost a big congratulations from the entire team here at Casella for the new position and.

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

Michael Edward Hoffman: Leadership, it and WMA.

Michael Edward Hoffman: It's really from our perspective, it's really exciting to heavier leadership and energy to.

Michael Edward Hoffman: To lead the National Association.

Michael Edward Hoffman: Exciting so.

Michael Edward Hoffman: First and foremost.

Michael Edward Hoffman: Congratulations Mike, Although we will Miss you on these calls.

Speaker Change: Last one.

Michael Edward Hoffman: Congratulations Michael, although we'll miss you on these calls, the last one. Well, yeah, now you got me choked up. Well, I probably will go with true withdrawal, so I'll have to listen in a few times anyway.

Well, yes, no you got me choked up.

Speaker Change: Well I, probably won't go with pure withdrawals, so I'll have to listen a few times anyway.

Speaker Change: Yeah.

Speaker Change: Thank you. Thank you that was roughly kind words.

Speaker Change: So the.

Michael Edward Hoffman: So the dynamic in your, I'm going to say legacy portfolio because that's where there's a real landfill constraint. I mean, Pennsylvania's got tons of landfills. So the dynamic in that legacy book on the landfill side continues to favor your strategy. But are we finding...

Speaker Change: The dynamic in your I'm going to say.

Speaker Change: The legacy portfolio, because that's where there's a real landfill constraint I mean, Pennsylvania has got tons of landfill. So the dynamic in that legacy book on the landfill side continues to favor your strategy, but are we finding.

Michael Edward Hoffman: The market price is getting to a level where the third party hauler has more options about whether they stay in the market and use you or management or the, you know, the smaller place, or move and go by rail. And why I ask is we're hearing more tons thinking about moving out of the market, and there's a question in this in this. What's the strategic move? I think McKean's part of it. But what is your strategy on how you react to volume starting to move around because we've opened up access? Because prices have gotten, not because of you, just in general prices have gotten to a place where they can.

Speaker Change: The market price getting to a level, where the third party hauler has more options about whether they stay in market in your view or management or.

Speaker Change: Smaller places.

Speaker Change: Or move and go by rail and why I ask is we are hearing more tonnes thinking about moving out of the market and.

Speaker Change: There's a question in this quarter and this what's the strategic move I think Mccain as part of that but what is your strategy on how you react to volume starting to move around because we've opened up.

Speaker Change: The access because prices have gotten not because you just in general prices have gotten to a place where they can.

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

Speaker Change: Yes, Michael this is never going to be a perfect linear or tightens the relationship.

It takes many many years to permit new landfill capacity or even if you're going to open a new rail transfer station to get permitted and built an operating so you are seeing much like you've seen over the last decade, some ebbs and flows right like there's an anticipation at key sites are going to close this year into next year sort of new rail.

John W. Casella: Some new rail capacity, new transfer capacity has come online, which in the near term is kind of sucking some tons from the Northeast and causing a little bit of lower line in the market. But nothing's off with the midterm trend. We still expect sites like Brookhaven on Long Island to close at the end of this year and other sites over the next couple of years, and it will become capacity constrained again. This is not a perfect linear relationship, as you know.

Speaker Change: Capacity, new transfer of capacity has come online, which in the near term is kind of stocking some tons from the northeast and causing a little bit of lower volumes in the market, but nothing's off with the mid term trend, we still access sites like Brookhaven on long island to close at the end of this year and other sites over the <unk>.

Speaker Change: Next couple of years and it will become capacity constrained again, it's just not a perfect linear relationship as you know we.

John W. Casella: We'll never chase tons. We're very disciplined. We know how valuable our airspace is, and we're very focused on returns. So part of what you saw in the first quarter and in Q4 of last year is that we chose to just allow some tons to leave the system, especially for construction and demo short term, while some sites reach the end of life. We'll ultimately get tons back into our system and be able to create quite a bit of value from that waste over time.

Speaker Change: We will never chase tons, we're very disciplined we know how valuable our aerospace sales and we're very focused on returns. So part of what you saw in the first quarter and in Q4 of last year is what we chose to just allow sometimes to lead the system, especially on construction and demo short term, while some sites reached the end of <unk>.

Speaker Change: Well ultimately get that tons into our system and be able to create quite a bit of value from it from that waste overtime.

John W. Casella: I think that it also is a reflection, Michael, of the investment that we made in late 23 and now in 24 to bring McKean on, where it's been an option for 10 years. And clearly, from a transportation cost perspective, we'll be as competitive as anyone from a rail service perspective on a go-forward basis. We're excited about that opportunity, and it's a great move for us to make sure that we have the disposal capacity long-term to meet the needs of our customers in the Northeast.

Speaker Change: Also as a reflection Michael is the investment that we made in late 'twenty three and now in 24 to bring mckean on where its been an option for 10 years.

Speaker Change: And clearly.

Speaker Change: From a transportation cost perspective.

Speaker Change: We will be as competitive as anyone from a rail service perspective on a go forward basis.

Speaker Change: We're excited about that opportunity and it's a great move.

Speaker Change: Move for us to make sure that we have the disposal capacity long term to meet the needs of our customers in the northeast.

John W. Casella: Well, I don't think it's unrealistic to think of McKean as both offensive and defensive, and that's not a bad thing. It's going to give you that opportunity to flex. That's right.

Speaker Change: Well.

Speaker Change: And I don't think its unrealistic to think of Makena as both offensive and defensive and Thats not a negative.

Speaker Change: To give you that opportunity to flex.

John W. Casella: And so as volume moves, you know, fleet has been a challenge. We've been under ideal replacement rates, but it appears it might be improving at maybe a little bit of a better pace. Some of the other companies have reported in their fleet ads that they have been more in line with normal replacement. What is your vision on that? And clearly, it would have a positive impact on repair maintenance costs.

Speaker Change: That's correct.

Speaker Change: Volume rose.

Speaker Change: <unk> fleet has been a challenge we've been under.

Speaker Change: Yes.

Speaker Change: Ideal replacement rates, but appears that might be improving and it may be a little bit or better pace.

Speaker Change: Some of the other companies have reported in their fleet.

Speaker Change: Ads have been more in line with normal replacement what is your vision on that and clearly it would have a positive to repair and maintenance cost.

John W. Casella: I think there's still a bit of a struggle in terms of delivery of vehicles, but I think we're certainly getting through it. Our overall five-year fleet plan is in good shape. Sean's done a terrific job. We've managed to be very proactive with the board, getting our capital approved years in advance to be able to be in a position to get the slots to be successful in maintaining our fleet at a good age.

Speaker Change: I think there is still a bit of a struggle in terms of delivery of our vehicles.

Speaker Change: I think we're certainly getting through it.

Speaker Change: Our overall five year fleet plan is in good shape, Sean has done a terrific job, we've managed to be very proactive with the board getting our capital approved years in advance.

Speaker Change: To be able to be in a position to get the slots.

Speaker Change: <unk> be successful in maintaining our fleet at a good as the other <unk>.

John W. Casella: The other interesting aspect of that is when some of the acquisitions that we've done, particularly the Twin Bridges, the average age of that fleet actually brought our overall age down because they were all two or three years old. But we've been able to get through it. Sean's done a fabulous job of managing that process and managing our five-year plan so that we're not out of sync at all. But it's still a struggle in terms of delivery and getting all of the slots that we'd like from a replacement standpoint.

Speaker Change: Interesting aspect to that is when.

Some of the acquisitions that we've done, particularly the twin bridges. The average age of that fleet actually brought our overall age down because there are two or three years old so.

Speaker Change: We've been able to get through it Sean has done a fabulous job of managing that process and managing our five year plans. So that we're not out of sync at all.

Speaker Change: But it's still a struggle in terms of delivery and getting all of the slots that we would like from.

John W. Casella: And John, you take that comment one step further, and you look at some of the early synergy work the teams worked on in the Capital District of New York. We've taken 14 routes off the road by combining the companies. And, you know, a lot of times when you do acquisitions, you have older, lower-quality trucks, and usually we don't have a lot of great uses other than spares for them. In this case, there are some really high-quality vehicles that we're putting to work in the fleet as well. So another really nice benefit from all the hard work the team has done in that market and Sean's team.

Speaker Change: From a.

Speaker Change: From a replacement standpoint, and John you take that one step further and you look at some of the early synergy work to teams work done in the capital District of New York, We've taken 14 routes.

John: By combining the companies and a lot of times you do acquisitions, you have older less quality of trucks and usually we don't have a lot of great uses of it and spares for the in this case there is a really high quality vehicles that we're putting to work in the fleet as well so another really nice benefit from all the <unk>.

John: Work the team has done in that market and John's team.

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

Speaker Change: And then last one for me.

Labor it looks like the market is starting to help labor but.

Speaker Change: How do you feel about where you are in your open positions.

Speaker Change: Year over year sequentially on sort of.

Speaker Change: The thought about the labor path and wage inflation.

Speaker Change: <unk>, maybe it's coming in in line, a little bit better faster because the market is helping.

John W. Casella: I think that's a very fair assessment. The efforts that we've made from an HR standpoint and from the CDL school and the maintenance school are really paying dividends. We put 250 folks through the CDL school, and we've seen not only our turnover lower on an annual basis by about 20 percent, but we've also lowered the total number of openings that we've had significantly on a year-over-year basis. So we're excited about where we sit.

Speaker Change: Thats, a very fair perspective.

Speaker Change: The efforts that we've made from an HR standpoint, and from the CDL schools and the maintenance school are really paying dividends.

Speaker Change: We put 250.

Speaker Change: Folks through the CDL school and.

Speaker Change: We've seen.

Speaker Change: Not only our turnover.

Speaker Change: Lower on.

Speaker Change: On an annual basis by about 20%. We've also lowered the total number of openings that we've had significantly on a year over year basis. So.

John W. Casella: The maintenance school has come up this year. We started that about three or four months ago and are having good results with that. The new facility will be operational before the end of this year in conjunction with the CDL school. So our CDL school and maintenance school will be on the same piece of property, which is really exciting. So I think that your characterization is correct.

Speaker Change: We're excited about where we sit.

Maintenance school has come up this year.

Speaker Change: <unk>.

Speaker Change: We started that about three or four months ago.

Speaker Change: Having good results of that.

Speaker Change: New facility it will be operational before the end of this year in conjunction with the CDL schools. So our CDL school and maintenance school will be.

Speaker Change: On the same piece of property, which is really exciting so.

Speaker Change: I think your characterization is correct.

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

Speaker Change: Getting easier, but not without significant investment and attention on our part the other thing that we've done to Michael as we've started to talk about the power of hard work from a marketing perspective in terms of really.

Speaker Change: Really marketing our work as a differential for those people that don't necessarily want to work in an office and that has been getting a tremendous amount of play across our entire footprint. We've targeted from a marketing perspective, those areas, where we have more significant.

Speaker Change: Openings and it's really starting to pay huge dividends. So it's.

John W. Casella: So I think the team has done a really good job of addressing the issue, across the board, not only with the training facilities, but from a marketing perspective, as well as from an HR standpoint. And it's not just about money, right, John? Like, really, it's about culture. It's about how we treat people. We're doing a lot with Pulse surveys to make sure that we really have an understanding and we don't get behind any sort of leadership issues or just whatever might be a problem.

Speaker Change: I think the team has done a really good job of addressing the issue.

Speaker Change: Across the board not only with the training facilities, but from a marketing perspective as well as from an HR standpoint, and it's not just about money right. John like really it's about culture is about how do we treat people.

Speaker Change: We're doing a lot with pulse surveys to make sure that we really have an understanding and we don't get behind any sort of leadership issues or just whatever land area.

John W. Casella: Well, and the other piece, the facility, five-year facility plan that we put in place a few years ago, too, is paying real dividends because you've got to have facilities that people want to come to work at. So improving the facilities is also another big part of that.

Speaker Change: The other piece of the facility a five year facility plan that we've put in place a few years ago to is paying real dividends because you got to have facilities that people want to come to work.

Speaker Change: So improving the facilities is also another big plus.

Michael Edward Hoffman: Okay, well, thank you very much and thank you for the kind words at the beginning, and we'll see you in a week in Las Vegas. Sounds good.

Speaker Change: Right, Okay, well. Thank you very much and thank you for the kind words at the beginning and we will see you in a week in Las Vegas.

Operator: Thanks, Michael. See you there, Michael. Thank you.

Speaker Change: Sounds good.

Speaker Change: Thank you Frank.

Speaker Change: Yes.

Operator: Our next question comes from the line of Stephanie Moore with Jeffries.

Speaker Change: Sure.

Speaker Change: Our next question comes from the line of Stephanie Miller with Jefferies.

Harold Antor: Hey, this is Harold Lunter on behalf of Stephanie Moore. So I guess a quick question, you talked about, on the volume front, and that came in a little bit weaker than expected. How should we think about that as we look through the rest of the year? And how did volumes exit the quarter?

Speaker Change: Hey, this is harold onto on some stuff in one so I guess a quick question you talked about.

Speaker Change: Yes.

Stephanie Lynn Benjamin Moore: On the volume front I.

Came in a level, we took unexpected how.

Stephanie Lynn Benjamin Moore: How should we think about that.

As we look through the rest of the year.

Bradford J. Helgeson: Yeah, hi, it's Brad. You know, the volume probably came in a little bit softer, but we're feeling really good about the plan for the year and the guidance we put out at the beginning of the year for volume to be flat to down 1% overall in the solid waste line of business. You know, unpacking that a little bit, certainly we talked about it this quarter, you know, C&D volumes in the landfill. That's sort of a temporary issue.

Stephanie Lynn Benjamin Moore: Following this exit.

Stephanie Lynn Benjamin Moore: In the quarter.

Stephanie Lynn Benjamin Moore: Yes.

Stephanie Lynn Benjamin Moore: Yeah, Hi, this is Brad.

Bradford J. Helgeson: The volume probably came in a little bit softer, but we're feeling really good about.

Bradford J. Helgeson: <unk> for the year and the guidance, we put out at the beginning of the year for volume to be flat to down 1% overall in the solid waste.

Bradford J. Helgeson: Solid waste line of business.

Bradford J. Helgeson: Unpacking that a little bit.

Bradford J. Helgeson: Certainly we talked about this quarter C&D volumes.

Bradford J. Helgeson: And Phil that's sort of a temporary issue and that's really kind of more than anything else I think weighing on overall volumes.

Bradford J. Helgeson: And that's really kind of more than anything else, I think, weighing on overall volumes. You know, collection volumes are relatively strong. As I mentioned in my prepared remarks, residential business was down, but front load and roll off were actually up. So, you know, it's a pretty good picture looking forward. We feel good about the guidance that we gave at the beginning of the year.

Bradford J. Helgeson: Collection volumes R. R.

Bradford J. Helgeson: Relatively strong.

Bradford J. Helgeson: As I mentioned.

Bradford J. Helgeson: My prepared remarks.

Bradford J. Helgeson: Residential business was down but frontloaded roll off we're actually up.

Bradford J. Helgeson: So it's a pretty good picture looking forward.

Bradford J. Helgeson: We feel good about the guidance that we gave at the beginning of the year and we expect volumes to be down modestly in Q2, but then kind of flattish.

Bradford J. Helgeson: And we expect volumes to be down modestly in Q2, but then kind of flat-ish. ®MD-BO END

Bradford J. Helgeson: Second half of the year, Yes, that's fair.

Bradford J. Helgeson: All right. Great. Thanks for the update. Well, I guess just on pricing. Is pricing sticking? Getting any pushback from clients? How should we think about that going forward? Yeah, so as you

Speaker Change: Alright, great. Thanks for the update and then I guess just on pricing.

Speaker Change: As pricing sticking you getting any pushback from clients how should we think about the.

Speaker Change: And going forward.

Bradford J. Helgeson: Yeah, so as you may know, we come out with about 75% of our pricing for the year in late December into January, and we've had really great stickiness with that pricing. So much of it really has to do with the service you deliver to customers, and you differentiate service, and we do an amazing job, especially with some of our resource offerings and just the quality of our service delivery. We measure every single day service delivery in our markets and hold ourselves accountable to high standards.

Speaker Change: Yes. So as you may know, we come out with about 75% of our pricing for the year.

Speaker Change: In late December into January and we've had really great stickiness with that pricing.

Speaker Change: So much of it really has to do with the service you deliver to customers and.

Speaker Change: Differentiated service and we did an amazing job, especially with some of our <unk> offerings and just the quality of our service delivery we measure.

Speaker Change: Every single day service delivery in our markets and hold ourselves accountable to the highest standards. So as we come out with.

Bradford J. Helgeson: So as we come out with pricing programs, if we're getting the job done and we're giving high-quality service to our customers, you know it's accepted by the market, and that's where we are right now, and we're feeling really good about the trajectory for the rest of the year.

Speaker Change: With pricing programs and if we're getting the job done and we will give you a high quality service to our customers.

Speaker Change: <unk> by the market and Thats, where we are right now and we're feeling really good about the trajectory for the rest of the year.

Speaker Change: Thank you.

Operator: As a reminder, that is star 11 to ask a question. Our next question comes from Adam Bube, with Goldman Sachs.

Speaker Change: As a reminder, that is star one to ask a question.

Speaker Change: Our next question comes from the line of Adam <unk> with.

Adam: With Goldman Sachs.

Adam Samuel Bubes: Hi, good morning. Thanks for taking my question. The margin trajectory started off really strong, you know, 150 basis points year-over-year of margin expansion. Can you just help us think about how you expect the cadence of margin expansion to look on the path to the 30 to 50 basis points of margin expansion outlook and how do you feel you're tracking against that range given the strong start of the year?

Adam: Hi, good morning, Thanks for taking my question.

Adam: Good morning, the margin trajectory started off really strong 150 basis points year over year of margin expansion can you just help us think about how you expect the cadence of margin expansion to work upon.

Adam: On the path to the 30% to 50 basis points margin expansion outlook and how do you feel you're tracking against that range given the strong started the year.

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

Adam: Yes, it's Brad I'll start off and maybe Nick can jump in with some historical perspective, but.

Speaker Change: Certainly we're off to a good start as you mentioned.

Speaker Change: We feel really good about the full year.

Speaker Change: Implied EBITDA margin range that we talked about at the beginning of the year.

Speaker Change: I think.

Nick: Fair use history, the historical trend of margin sequentially is probably a good starting point.

Bradford J. Helgeson: You know, I think one comment with regard to Q2 is, you know, given how strong we started the year in Q1, probably look for a little bit less sequential margin increase from Q1 to Q2 than, for example, we saw last year. You know, I think landfill margins and landfill volumes are playing a role there. But, you know, as we look across the year, it may look a little bit different from quarter to quarter, but we feel good about where we have set our guidance.

Nick: I think one comment with regard to Q2.

Nick: Is given how strong we started the year in Q1.

Nick: Probably look for a little bit less sequential margin increase Q1 to Q2. Then for example, we saw last year.

Nick: I think landfill margins.

Nick: So volumes are playing a role there.

Nick: So as we look at the across the year.

Nick: Quarter to quarter look a little bit different, but we feel good about where.

Speaker Change: Where we set our guidance, yes, I think a bit if it fits a little bit of conservatism as well.

Edmond R. Coletta: Yeah, I think a bit of this is a little bit of conservatism as well. You know, we're just a few months into the year. The trends were really solid in the first quarter, but there are also some things that led to that 150 basis point margin increase, like the Boston MRF year-over-year column. Last year, we were spending a lot of money to move materials around. This year, we didn't have to move materials around, plus we had the benefit of the new system.

A few months into the year the trends are really solid in the first quarter, but there are also some things that led to that 150 basis point margin increase like the Boston Murph year over year comp last year, we're spending a lot of money to move materials around this year, we didnt happen.

Speaker Change: <unk> plus we had the benefit of the new system. So we will pick that up again in Q2, but that doesn't.

Edmond R. Coletta: So we'll pick that up again in Q2, but that doesn't, you know, recur in Q3 and Q4. So I think as we look at the year, yeah, we got off amazingly well with 150 basis points of margin enhancement. We kept guidance in that, you know, 40 to 50 basis points improvement range just as we get more visibility on the year.

Speaker Change: Recurring Q3, and Q4, so I think as we look at the year, Yes, we got off amazingly well with 150 basis points of margin enhancement, we kept guidance in that 40% to 50 basis point improvement range, just as we get more visibility on the year.

Edmond R. Coletta: Got it. And, you know, price-cost continues to be a nice tailwind for you. As we think about margin expansion runway going forward, beyond price-cost, how significant is the opportunity from productivity gains, routing software, back-office efficiency, and fleet automation?

Speaker Change: Got it and price cost continues to be a nice tailwind for you as we think about margin expansion runway going forward beyond price cost how significant if the opportunity from the productivity gains routing software back office efficiency fleet automate automation, what should we think about the annual.

Edmond R. Coletta: Yeah, within our core business, it's regenerative, and we still have quite a bit of work that we can do over the next few years on the fleet side, from automation, conversions to front loads, route optimization. Sean has a team that's continually working with our local teams to find opportunities, but where it gets really exciting is around acquisitions, either top ends or new areas, and as we had laid out when we first did the acquisition in the Mid Atlantic region, you know, almost half of that fleet are rear load trucks.

Speaker Change: Contribution from those initiatives.

Speaker Change: Yes within our core business. It's regenerate is and it's we still have quite a bit of work that we can do over the next few years on the fleet side from automation conversions to Frontload.

Speaker Change: Route optimization, Sean has a team that is continually working with our local teams to find opportunities, but where it gets really exciting is around acquisitions, either tuck ins or new areas and as we had laid out when we first did the acquisition in mid Atlantic region.

Speaker Change: Almost half of that fleet, our rear load trucks, yes, it's going to take us years to address speak to some of the around specific municipal contracts and some of them may never get converted but we've got a great track record.

Edmond R. Coletta: Now, it's going to take us years to address because some of them are in specific municipal contracts and some of them may never get converted, but we've got a great track record of moving in and moving to automated fleets, which drives higher productivity, a better safety profile, and excellent returns. And as I said earlier, we have 17 automated trucks on order this year that could possibly take off the road, you know, 25 to 30 or more rear load trucks as So, you know, this is an opportunity that's going to continue to add millions of dollars of operating cost savings each year. In the back office, 25 years of experience. I was most recently a CTO at Deloitte, and previous to that, I was in the waste industry.

Speaker Change: Moving and moving to automated fleets, which drives higher productivity better safety profile and excellent returns and as I said earlier, we have 17 automated trucks on order this year that could possibly take off the road 25 to 30 or more rare the trucks as we get into <unk>.

Speaker Change: <unk> so.

Speaker Change: It is an opportunity that's going to continue to add millions of dollars of operating cost savings each year on the back office side.

Speaker Change: We brought in a new CIO last August Keith Landau, who has.

Speaker Change: 25 years of experience. Most recently was the CTO at Deloitte and previous to that was in the waste industry and Keith has hit the ground running we're doing an amazing job really rethinking some of our systems approach and back office and more to come on this story over time.

Edmond R. Coletta: And Keith has hit the ground running. We're doing an amazing job really rethinking some of our systems approach and back office. And, you know, more to come on this story over time.

Edmond R. Coletta: We see there being a great opportunity to continue to shave G&A costs. You know, over the last couple years, Jason, as a percentage of revenues, we've come down maybe 80 basis points. Over 100 basis points.

Speaker Change: We see there being a great opportunity to continue to shave G&A costs.

Speaker Change: Over the last couple of years, Jason as a percentage of revenues, we've come down maybe 80 basis points over 100 basis Hunter 100 basis points over the last three years. So it is coming out of that business, but there is more room kick out and we've got great opportunity to do so.

Bradford J. Helgeson: I mean, I'll really quickly add a data point to kind of underscore what Ned was talking about with the acquisitions. So just a snapshot in the first quarter, you know, the acquisitions in the quarter kind of digging into the cost of operations line were 21% of revenue on direct labor. The base business was 14%. So, you know, that's not exactly apples to apples as far as, you know, we acquire primarily collection operations and, you know, we have more of a diverse business mixed in the base business, but really, that, I think, highlights the significance of the opportunity over time.

Speaker Change: Real quickly add a data point to kind of underscore what Ned was talking about with the acquisitions. So just a snapshot in the first quarter the acquisitions in the quarter.

Speaker Change: Looking into the cost of operations line were 21% of revenue on direct labor the base business was 14% so not exactly apples to apples.

Speaker Change: Borrowers.

Speaker Change: We acquired primarily collection operations and we have more of a diverse business mix and the base business, but really got I think highlights the significance of the opportunity over time.

Adam Samuel Bubes: Got it. I really appreciate the color there.

Speaker Change: Got it really appreciate the color there and then one more quick one for me it sounds like guidance still embeds volume to flat to down 1% due volumes have to improve ahead of normal seasonality for you to reach those numbers or is that just the comps getting easier and sticking with this current run rate from here.

Bradford J. Helgeson: And then one more quick one for me. You know, it sounds like guidance still embeds volumes of flat to down 1%. Do volumes have to improve ahead of normal seasonality for you to reach those numbers, or is that just the comps getting easier and, you know, sticking with this current, you know, run rate from here?

Bradford J. Helgeson: I think the comps will get a bit easier in terms of volume through the year, you know, and obviously, just the way the math works, you know, we were down 2.8% in solid waste and guiding to zero, zero to down 1%. So, you know, that implies we're expecting some recovery in that, you know, and we feel good about that.

I think the comps will get a bit easier in terms of volume through the year.

Speaker Change: And obviously just the way the math works.

Speaker Change: 128% solid waste and guiding to zero zero is down 1% so.

Speaker Change: That implies we are expecting some recovery in that.

Speaker Change: We feel good about that.

Got it thanks, so much.

Adam Samuel Bubes: Got it. Thanks so much.

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

Operator: Thank you. Good morning, Michael.

Operator: Am I up? Yep. Thank you so much.

Michael J. Feniger: Good morning, Mike.

Michael J. Feniger: I just was curious, Ned, on the M&A pipeline being active and robust, is this more collection assets? Are there some integrated assets also kind of available? Just curious if we kind of get a sense of that pipeline and is that something you guys are actively pursuing or is this year more of an integration given kind of the transformational year you guys had in 2020?

Michael J. Feniger: Yes. Thank you so much I just was curious on the M&A pipeline being active and robust as this more collection assets is there some integrated.

Michael J. Feniger: Assets also kind of available just curious have you kind of get a sense of that.

Michael J. Feniger: That pipeline is that something you guys are actively pursuing or is this year more of the integration digestion given kind of a transformational year you guys had in 'twenty three.

Edmond R. Coletta: Yeah, a great question, Michael. Thank you.

Speaker Change: Yes, Great question, Michael Thank you.

Edmond R. Coletta: Much of our focus right now is on driving density and adjacencies. You know, really not looking at large new platforms in any serious way at this moment in time. We're really looking at density both in legacy markets and now down into the Mid-Atlantic with strong talk-in, strong adjacent acquisitions. And clearly, as Michael said earlier, the Mid-Atlantic market has a tremendous amount of disposal capacity. So the opportunities that we have there would be with transfer stations and recycling facilities, you know, fully integrated in terms of collection, transfer, and recycling.

Speaker Change: Much of our focus right now is on driving density.

Speaker Change: Jason <unk>.

Speaker Change: Really not looking at large new platforms.

Speaker Change: In any serious way at this moment in time, we're really looking at density both legs.

Speaker Change: Our legacy markets and now down into the mid Atlantic with strong tuck in strong adjacent acquisitions Thats our focus.

Speaker Change: And clearly I think Michael said it earlier.

Speaker Change: Michael.

Speaker Change: <unk>.

Speaker Change: The mid Atlantic market has a tremendous amount of disposal capacity. So the opportunities that we have there would be with transfer station in recycling facilities full.

Speaker Change: Fully integrated in terms of collection transfer and recycling.

Edmond R. Coletta: So, nice opportunities for us to continue to build the collection, recycling, and transfer portion of the business, so right down the middle of the fairway. So, great opportunities from a growth standpoint there. And we're generating, you know, the highest returns in our business right now in our collection line of business, followed by recycling. So, you know, as we continue to invest in automation and route synergies, we just are getting great, great returns in those areas. Our playbook, our team, our muscle memory is very, very good. So as we, you know, get into small talk-ins, and we integrate them into our business, it creates a lot of value quickly.

Speaker Change: So nice opportunities for us to continue to build the collection recycling.

Speaker Change: And transfer a portion of the business so right down the middle of the fairway, so great great opportunities from a growth standpoint there.

Speaker Change: We're generating the highest returns in our business right now in our collection line of business followed by recycling. So.

Speaker Change: As we continue to invest in.

Speaker Change: Our nation and routes synergies, but we just are getting great great returns in those areas our playbook our team our muscle memory is very very good so as we.

Speaker Change: Get into small tuck ins and we integrate them into our business. It creates a lot of a lot of value quickly.

Edmond R. Coletta: And Ned, I know you guys talked a lot about onboarding and the route optimization. Just to kind of put a finer point on it, and I realize you're going to be deploying that with your acquisitions. I mean, do you feel like you're still in the early innings of this process? Is this more, you know, third, fourth, or what you're seeing now makes it feel like you're kind of in the later innings of this process?

Speaker Change: And.

Speaker Change: I know you guys talked a lot about the onboarding and the route optimization.

Speaker Change: Kind of put a finer point on it.

Speaker Change: Realize you are going to be deploying that with your acquisitions.

Speaker Change: Do you feel like you are still in early innings of this process is this more.

Speaker Change: Third fourth or or what Youre seeing now makes it feel like you're kind of in that.

Edmond R. Coletta: I think that, I would say, I would characterize it as being in the mid-innings, and probably a great deal of that is related to the M&A activity. So, you know, as we continue to grow from an M&A standpoint, we continue to provide the opportunity for Sean and his team to bring efficiency and productivity to the businesses that we're buying, Michael. So, you know, I think we are a little bit further ahead on the core business from an efficiency standpoint, but still a little bit left to be done there as well.

Speaker Change: The later innings of this process I think.

I would say I would characterize as being in the mid innings.

Speaker Change: Earnings and probably a great deal of that is related to the M&A activity. So as we continue to grow from an M&A standpoint, we continue to provide opportunity for Sean and his team.

Speaker Change: Two.

Speaker Change: Bring efficiency productivity.

Speaker Change: To the businesses that we're buying Michael So I think a little bit further ahead on the core business from.

Speaker Change: From an efficiency standpoint.

Speaker Change: But still a little bit left to be done there as well.

Michael J. Feniger: Perfect. And just the last one to squeeze in.

Speaker Change: Perfect and then just last one to squeeze in I'd love to get.

Michael J. Feniger: I'd love to get, you know, Casella's view on, you know, last Friday, what we're seeing out of the preliminary proposals around PFAS. Obviously, landfill and your disposal assets have been a great part of your story. Just what, I know it's still early, and some of this isn't finalized, but I'd love to get a sense from you all how you're kind of interpreting it and what that kind of means going forward, what you're kind of looking for going forward, and what we should be paying attention to. Thanks, everyone.

Speaker Change: <unk> view on last Friday.

Speaker Change: What we're seeing out of the the preliminary proposals around around PFS, obviously landfill and your disposal asset it's been a great part of your story.

Speaker Change: I know it's still early.

Speaker Change: Some of this isn't finalized I'd love to get a sense from from you all how youre kind of interpreting and what that means going forward, but you are kind of looking for going forward, what we should be paying attention to you. Thanks everyone.

Edmond R. Coletta: Yeah, it's really interesting. This has been years in the making, and we actually welcome federal regulation around this. It was getting kind of confusing, state by state, district by district.

Speaker Change: Yeah.

Speaker Change: It's really interesting this has been years in the making we actually welcome federal regulation around this it was getting kind of confusing state by state district by district, So to have some real clarity around with <unk> and some of the recent rulings on groundwater standpoint, as well as trailing water.

Edmond R. Coletta: So to have some real clarity on CERCLA and some of the recent rulings on a groundwater standpoint as well as drinking water are really, I think, positives for the industry. And finally, the EPA has taken a stance that the manufacturers of these chemicals are responsible for them. And the users in manufacturing products are responsible, not the passive receivers like landfills or wastewater treatment facilities or even the passive use in biosolids application as a fertilizer. So from our vantage point, a great first step. I'm sure there's going to be more to this story, but this is exactly what we've been saying for years.

Speaker Change: Really I think positive for the industry and finally.

Speaker Change: The EPA has taken a stance that the manufacturers of these chemicals are responsible for them and the users and in manufacturing products are responsible not the passive receivers like landfills wastewater treatment facilities or even to pass it to use in biosolids application for our fertilizer.

So from our vantage point, great first step I'm sure there's going to be more to the story, but I think what we've been saying for years and I think the other piece of that too Michael with regard to Casella is.

Edmond R. Coletta: I think the other piece of that, too, Michael, with regard to Casella is, you know, not only do we have an RO plant in McKean that can take out the PFAS, but we also are doing a foam fractionation pilot program with the state of Vermont in our WasteUSA facility in Vermont, where we've seen significant positive results from that pilot program in terms of, you know, 98% removal on four or five components from a PF So early stages of the pilot program, but again, we're out in front from an innovation standpoint, trying to understand what kind of technology will take the PFAS out of our leachate on a go-forward basis.

Speaker Change: Not only.

Speaker Change: Do we have in our old plant.

Speaker Change: In Mckean that can take out the <unk>. We also are doing the foam fractionation pilot program with the state of Vermont.

Speaker Change: Waste USA facility in Vermont, where we've seen significant positive results from that pilot program in terms of 98% remove on four or five components from a <unk> standpoint, and about 65% on the fifth one so early stages of the pilot program, but again.

Speaker Change: In front from an innovation standpoint, and trying to understand what kind of technology will take the <unk> out of our leach eight on a go forward basis.

Edmond R. Coletta: Two efforts in terms of technology and understanding of, you know, what it's going to take to take the PFAS out of our leachate. So again, out in front from an innovation standpoint. That's a great point. So the liability issue was really spoken to by the recent CERCLA, but on the innovation side, as John said, the reality on the ground is that we want to take that PFAS out of the leachate, and our teams do an excellent job on the technology side.

Speaker Change: Two two efforts in terms of technology and understanding of what it's going to take to take the <unk> out of our leachate. So again out in front from an innovation stands at this very point. So the liability issue was really spoken to you by the recent cercla, but on the innovation side as John said the.

Speaker Change: <unk> on the ground, we want to take that piece off how the leachate and our teams did an excellent job on the technology side looking for a cost efficient ways to do so.

unknown: http://TheBusinessProfessor.com

Operator: Okay, thanks, Mike. Now, our next question.

Speaker Change: Okay. Thanks, Mike.

Operator: Our next question comes from the line of Tony Bancroft with Gameco Investors.

Speaker Change: Our next question comes from the line of Tony Bancroft with Gamco investors.

George Anthony Bancroft: Good morning, Tony. Hey, Tony. Yeah, I'm sorry.

Tony Bancroft: Good morning, Tony Hey, Tony Yes, I'm, sorry, I think I got cut off.

George Anthony Bancroft: I think I got cut off. Good morning. Thank you for the call. Great job. You know, John, and the team, you guys have obviously done a fabulous job over the years. You guys did the recent acquisition, you know, for the mid Atlantic.

Morning, Thank you for the call a great job.

Tony Bancroft: John.

Tony Bancroft: Team you guys have obviously done a fabulous job over the years.

Tony Bancroft: You guys did the recent acquisition.

Tony Bancroft: For the mid Atlantic Thank.

Tony Bancroft: Thank you are you probably emphasize size wise theres, probably some capability to do something again, some more and more transformational, particularly in the region. You're in is there something out there that youre seeing or maybe looking to get into another kind of business thats somewhat aligned with the traditional business, maybe just any just general thought.

John W. Casella: Sure, I think that, you know, our view is that, you know, really right down the middle of the fairway, our biggest opportunity is to add value in the existing business that we're in. The 800 million that Ned talked about from an M&A standpoint is right down the middle of the fairway. We don't see stepping out of our, you know, comfort zone and our capabilities as something that's going to create significant shareholder value.

Speaker Change: And maybe longer term view on things. Thank you sure I think that.

Speaker Change: Our view is that.

Speaker Change: Really right down the middle of the fairway, our biggest opportunity is to add value in the existing business that were in.

Speaker Change: The 800 million that Ned talked about from an M&A standpoint is right down the middle of the fairway, we don't see.

John W. Casella: Our execution of our strategy in terms of the M&A, you know, directly is, you know, clearly the way that we're going to create the most shareholder value on a go-forward basis. So you're not going to see us, you know, deviate from that strategy. There's really no basis for it.

Speaker Change: Stepping out of our.

Speaker Change: Comfort zone, and our capabilities is something that's going to create significant shareholder value.

Speaker Change: Our execution of our strategy in terms of the <unk>.

Speaker Change: M&A.

Speaker Change: Directly is.

The clearly the way that we're going to create the most shareholder value on a go forward basis, so you're not going to see us deviate from that strategy. There is really no basis for it we can create the most value in the existing business model.

John W. Casella: We can create the most value in the existing business model.

George Anthony Bancroft: Great answer. Congratulations on all your successes. Thank you.

Speaker Change: Great answer congratulations on all your successes they've done wonderful thanks.

Operator: Thank you, Tony.

John W. Casella: As a reminder, if you'd like to ask a question at this time, that is star 1 1. I'm showing no further questions in queue at this time. I'd like to turn the call back to John Casella for closing remarks.

Speaker Change: Thanks, Tony Thank you.

Speaker Change: As a reminder, if you'd like to ask a question at this time that is star one one.

Speaker Change: I'm showing no further questions in queue at this time I would like to turn the call back to John Casella for closing remarks.

John W. Casella: Thank you, Operator, and thanks, everyone, for joining us this morning. We hope you have a great weekend. We look forward to discussing our second quarter 2024 earnings in July. Thanks, everybody. Have a great day.

John W. Casella: Thank you operator, and thanks, everyone for joining us. This morning, we hope you have a great weekend look forward to discussing our second quarter 2024 earnings in July Thanks, everybody have a great day.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Thanks.