Q2 2024 Casella Waste Systems Inc Earnings Call

Charlie Wohlhuter: All right, good morning, and thank you for joining us on the call today. Today we will be discussing our second quarter 2024 results, which were released yesterday afternoon. Here with me today are John Casella, Chairman and Chief Executive. Hello, Operator. Were you going to say something?

Unknown Executive: All right, good morning, and thank you for joining us on the call today. Today we will be discussing our second quarter, 2024 results, which were released yesterday afternoon.

Operator: No, we're good. Sorry, Charlie, go ahead.

Right Good morning, and thank you for joining us on the call today.

We'll be discussing our second quarter 2024 results, which were released yesterday afternoon.

John Casella: Here with me today are John Casella, Chairman and Chief Executive Officer, Casella Waste Systems. Hello.

Here with me today are John Casella, Chairman and Chief Executive.

Officer Casella waste systems, Hello, operator, we're going to say something.

Unknown Executive: Operator, we're going to say something. No, we're good.

Charlie Wohlhuter: Sorry, Charlie. We have John here, Ned Coletta, our President, Brad Helgeson, our Chief Financial Officer, 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.

No.

Charlie Wohlhuter: We have John here, Ned Coletta, our President, Brad Helgeson, our Chief Financial Officer, and Sean Steeves, 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 be aware 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.

Speaker Change: Sorry go ahead.

John: It's John here.

Speaker Change: Clutter, our president Brad Helgeson, our Chief Financial Officer, and Sean Steves, Our senior Vice President and Chief operating officer of solid waste operations.

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

Unknown Executive: But first, please be aware 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. Actual results may differ materially from those indicated by these forward-looking statements as results of various important factors, including those discussed in the Risk Factor section, our most recently filed Form 10-K and Form 10-Q, which are on file with SEC. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date.

Charlie Wohlhuter: Actual results may differ materially from those indicated by these four forward-looking statements as a result of various important factors, including those discussed in the risk factor section of our most recently filed Form 10-K and Form 10-Q, which are 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.

Speaker Change: But first please be aware that various remarks, we may make about the company's future expectations plans and prospects constitute forward looking statements.

Speaker Change: <unk> of the Safe Harbor provisions under the private Securities Litigation Reform Act of 1995.

Speaker Change: 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 factors section of our most recently filed Form 10-K and Form 10-Q, which are on file with the SEC.

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

Speaker Change: Should not be relied upon as representing our views at any subsequent date.

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

Speaker Change: While we may elect to update forward looking statements at some point in the future, we specifically disclaim any obligation to do so.

Speaker Change: Even if our views change.

Unknown Executive: These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, August 2, 2024.

Charlie Wohlhuter: These four forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, August 2nd, 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 county principles. Reconciliations of the Non-Gap Financial Measures to the Most Directly Comparable Gap Measures To the extent they are available without unreasonable effort, they are included in our press release filed on Form 8K with the SEC. And with that, I will now turn the call over to John Casella to begin today's discussion.

Speaker Change: These forward looking statements should not be relied upon as representing our views as of any date subsequent to today August 2nd 2024.

Unknown Executive: 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 county principles. For 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 filed on Form 8-K with SEC.

Speaker Change: 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.

Speaker Change: Conciliation 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 filed on form 8-K with the SEC.

John Casella: And with that, I will now turn it all over to John Casella to begin today's discussion. Thanks, Charlie. Good morning, everyone, and welcome to our second quarter 2024 conference call. I will begin today's remarks highlighting our strategic execution and continued growth with brief comments on our results. Brad and Ned will then go into more details on our financials and strategies.

Speaker Change: And with that I'll now turn it over the call over to John Casella to begin today's discussion.

John Casella: Thanks, Charlie. Good morning, everyone, and welcome to our second quarter 2024 conference call. I will begin today's remarks highlighting our strategic execution and continued growth with brief comments on our results. Brad and Ned will then go into more details on our financials and strategies.

John Casella: Thanks, Charlie Good morning, everyone and welcome to our second quarter 2024 conference call.

John Casella: We'll begin today's remarks, highlighting our strategic execution and continued growth with brief comments on our results Brad and Ned will then go into more details on your financials and strategies, Firstly I'd like to welcome our new team members to Casella, who joined US from several recent acquisitions.

John Casella: First, I'd like to welcome our new team members to Casella who joined us from several recent acquisitions. Yesterday afternoon, we announced another major step in our company's growth strategy with the acquisition of LMR Disposal and Whitetail Disposal, two collection companies in the Mid-Atlantic that strongly align with our core operating strategy. These valuable operations immediately offer us additional growth in new markets and more density in existing ones. We're very excited to begin serving our new customers and continue executing against our growth strategy in these attractive markets. We have also closed on three other token acquisitions this year, two in July and one in May. I'd like to provide another welcome to all of our team members who have come on board.

John Casella: First, I'd like to welcome our new team members to Casella, who joined us from several recent acquisitions. Yesterday afternoon, we announced another major step in our company's growth strategy with the acquisition of LMR Disposal and White-Tailed Disposal, two collection companies in the mid-Atlantic that strongly align with our core operating strategies. These valuable operations immediately offer us additional growth in new markets and more density and existing. We're very excited to begin serving our new customers and continue executing against our growth strategy in these attractive markets. We have also closed on three other token acquisitions this year, two in July, and one in May.

Speaker Change: Yesterday afternoon, we announced another major step in our company's growth strategy with the acquisition of LMR disposal in Wakefield disposal to collection companies in the mid Atlantic that is strongly aligned with our core operating strategies. These.

Speaker Change: These valuable operations immediately offer us additional growth in new markets and more density in existing we're very excited to begin serving our new customers and continue executing against our growth strategy in these attractive markets.

John Casella: These five acquisitions reflect our ability to continue to grow the business through a disciplined approach. Our team remains focused and balanced across integration efforts, our core business, and future opportunities. Moving to our results, both revenue and adjusted EBITDA reached all-time highs on a quarterly basis.

Speaker Change: We have also closed on three other tuck in acquisitions this year or two in July and one in May and I'd like to provide another welcome to all of our team members who have come on board. These five acquisitions reflect our ability to continue to grow that business through a disciplined approach our team remains focused.

John Casella: I'd like to provide another welcome to all of our team members who have come on board. These five acquisitions reflect our ability to continue to grow the business through a disciplined approach.

John Casella: George. Our team remains focused and balanced across integration efforts, our core business, and on future opportunities. Moving to our result, both revenue and adjusted a bit are reached all time highs on a quarterly basis.

Speaker Change: It's a cross integration efforts, our core business and on future opportunities.

Speaker Change: Moving to our result, both revenue and adjusted EBITDA reached all time highs on a quarterly basis.

John Casella: This milestone reflects the hard work and dedication of our team has, that our team has put into building the business. While there are a couple of unexpected items that weighed on the second quarter, our core results noted in our press release; our year-to-date performance is consistent with our plans for the first half of the year. Looking ahead, we are well positioned to carry the growth momentum forward over the second half of the year. Shifting to a few of our key strategies and performance of our operations, starting with our landfills, volumes were down year over year.

John Casella: This milestone reflects the hard work and dedication of our team that our team has put into building the business. While there are a couple of unexpected items that weighed on the second quarter results noted in our press release, our year-to-date performance is consistent with our plans for the first half of the year. Looking ahead, we're well positioned to carry the growth momentum forward over the second half of the year. Shifting to a few of our key strategies and performance of our operations, starting with our landfills, volumes were down year over year.

Speaker Change: This milestone reflects the hard work and dedication of our team.

Speaker Change: Has that our team has put into building the business well there are a couple of unexpected items that weighed on our second quarter results noted in our press release, our year to date performance is consistent with our plans for the first half of the year.

Speaker Change: Looking ahead, we are well positioned to carry that growth momentum forward over the second half of the year.

Speaker Change: Shifting to a few of our key strategies and performance of our operations, starting with our landfill volumes were down year over year MSA.

John Casella: MSW volumes were, again, stable in the quarter, but lower C&D and special waste tons continued to present a bit of a headwind. However, this is largely a result of the upcoming closure of a large third-party C&D landfill in New York at the end of the year.

John Casella: MSW volumes were, again, stable in the quarter, but lower C&D and special waste tons continued to present a bit of a headwind. However, this is largely a result of the upcoming closure of a large third-party C&D landfill in New York at the end of the year. More importantly, we expected this a bit of margin pressure to begin the year. It has been factored into our guidance, and we believe the market will return to a more steady state next year. And I want to stress that this has not shifted our strategy in any way. We are steadfast in prioritizing long-term returns and not allowing any short-term impacts to sway the focus.

Speaker Change: MSW volumes were again stable in the quarter, but lower C&D and special waste tons continued to present a bit of a headwind.

Speaker Change: However, this is largely a result of the upcoming closure of a large third party C&D landfill in New York at the end of the year.

John Casella: More importantly, we had expected this EBITDA and margin pressure to begin the year. It has been factored into our guidance, and we believe the market will return to a more steady state next year. And I want to stress that this has not shifted our strategy in any way.

Speaker Change: More importantly, we would expect that this EBITDA and margin pressure to begin the year. It has been factored into our guidance and we believe the market will return to a more steady state next year.

Speaker Change: And I want to stress that this is not shifted our strategy in any way. We are steadfast in prioritizing long term returns and not allowing any short term impacts to sway that focus our average price per ton at the landfills demonstrates this approach as we continue to improve the quality of.

John Casella: We are steadfast in prioritizing long-term returns and not allowing any short-term impacts to sway the focus. Our average price per ton at the landfills demonstrates this approach as we continue to improve the quality of our inbound waste stream. On the collection side, results continue to show positive returns from our strategic investments in this line of business. Our frontline development route enhancements and fleet investment programs are highly successful. In our base business, we expanded by a bit of 130 basis points year over year.

John Casella: Our average price per ton of the landfills demonstrates this approach as we continue to improve the quality of our inbound waste stream. On the collection side, results continue to show positive returns from our strategic investments in this line of business. Our frontline development route enhancements and fleet investment programs are highly successful. In our base business, we expanded adjusted a bit of 130 basis points year over year. Sean sees in his team a proven model that is delivering strong operating performance. But it's a collaborative approach starting with our human resource team, and their efforts around recruitment are CDL and diesel mechanic programs to help set our frontline team up with the necessary job skills and safety training for success.

Speaker Change: Our inbound waste stream.

Speaker Change: On the collection side results continue to show positive returns from our strategic investments in this line of business, our frontline development route enhancements and fleet investment programs are highly successful and our base business, we expanded adjusted EBITDA 130 <unk>.

John Casella: Sean Steeves and his team have developed a proven model that is delivering strong operating performance. But it's a collaborative approach, starting with our human resource team and their efforts around recruitment, and our CDL and diesel mechanic programs to help set our frontline team up with the necessary job skills and safety training for success.

Speaker Change: <unk> points year over year, Sean <unk> and his team is duo a proven model that is delivering strong operating performance.

Speaker Change: But it's a collaborative approach starting with our <unk>.

Speaker Change: Resource team and their efforts around recruitment, our CDO and diesel mechanic programs to help our frontline team up with the necessary job skills and safety training for success as a result employee turnover and safety levels are trending positively.

John Casella: As a result, employee turnover and safety levels are trending positively. From an operational standpoint, our fleet automation route conversion and onboard computer plans are driving higher productivity levels and improving cost, improving operating cost metrics. We are deploying this model across our footprint and believe there's a long runway of opportunity ahead, especially with the acquisitions we've completed over the last year or more. While a lot of coordination and planning is involved, repeatable execution is part of our success.

John Casella: As a result, employee turnover and safety levels are trending positively. From an operational standpoint, our fleet automation, route conversion, and onboard computer plans are driving higher productivity levels and improving operating cost metrics. We are deploying this model across our footprint and believe there's a long runway of opportunity ahead, especially with the acquisitions we've completed over the last year or more. While a lot of coordination and planning is involved, repeatable execution is part of our success.

Speaker Change: From an operational standpoint, our fleet automation route conversion and onboard computer plans are driving higher productivity levels and improving cost.

Speaker Change: Improving operating cost metrics.

Speaker Change: We're deploying this model across our footprint and believe there is a long runway of opportunity ahead, especially with the acquisitions, we've completed over the last year or more well a lot of coordination and planning is involved repeatable execution as part of our success.

John Casella: In resource solutions, we once again posted very strong results in this segment led by the performance of our recycling operations. While our average commodity revenue per ton was up 50% year over year, much of this value is shared with our customers given our balanced model that focuses on steady returns while reducing commodity price volatility. Contribution from the Boston Murph drove most of the success in the quarter.

John Casella: Resource Solutions, we once again posted very strong results in this segment, led by the performance of our recycling operation. While our average commodity revenue per ton was up 50% year-over-year, much of this value is shared with our customers, given our balanced model that focuses on steady returns while reducing commodity price volatility. Contributions from the Boston MRF drove most of the success in the quarter.

Speaker Change: The resource solutions, we once again posted very strong results in this segment led by the performance of our recycling operations well.

Speaker Change: Our average commodity revenue per ton was up 50% year over year much of this value is shared with our customers given our balanced model that focuses on steady returns, while reducing commodity price volatility contribution from the Boston Murph drove most of the success in the quarter.

John Casella: On the National Accounts side, this business also posted a binaural growth in the quarter and remains a key part of our overall strategy of providing superior differentiated services, which is something I'd like to highlight for a minute. As you know, we've talked about the sales strategy, targeting larger commercial and industrial customers. This strategy is not fully apparent when looking at our solid waste business alone, as a positive volume growth in national accounts. I'll set some of our solid waste volume decline. This dynamic is more reflective of a strategy where we are focused on growing our larger, profitable national account customers and revenue, as compared to some of the less profitable solid waste revenues we are shedding.

John Casella: On the national accounts side, this business also posted a bit of growth in the quarter and remains a key part of our overall strategy of providing superior differentiated services, which is something I'd like to highlight for a minute. As you know, we've talked about a sales strategy targeting larger commercial and industrial customers. This strategy is not fully apparent when looking at our solid waste business alone, as positive volume growth in national accounts offset some of our solid waste volume decline.

Speaker Change: On the National accounts side. This business also posted a bit of growth in the quarter and remains a key part of our overall strategy of providing superior differentiated services, which is something I'd like to highlight for a minute as you know we've talked about our sales strategy targeting larger commercial and industrial customers.

Speaker Change: This strategy is not fully apparent when looking at our solid waste business alone.

Speaker Change: Positive volume growth in national accounts, offset some of our solid waste volume decline. This dynamic is more reflective of our strategy, where we are focused on growing our larger profitable Nash national account customers in revenue as compared to some of the less profitable solid waste revenues were shedding.

John Casella: This dynamic is more reflective of our strategy where we are focused on growing our larger profitable national account customers and revenue, as compared to some of the less profitable solid waste revenues we are shedding. Wrapping up, we are executing against our growth strategy and are well positioned for the remainder of this year. Our core operating programs are intact. Our project development pipeline offers a long runway for profitable growth. Combined with our acquisition strategy that has expanded our operating footprint to 10 states, we are poised to continue delivering value. And with that, I'll turn it over to Brad to go through some details on the financing. Thanks, John.

John Casella: Wrapping up, we are executing against our growth strategy in a well positioned for the remainder of this year. Our core operating programs are intact.

Speaker Change: Yeah.

Speaker Change: Wrapping up.

Speaker Change: We are.

Speaker Change: Executing against our growth strategy and are well positioned for the remainder of this year our core operating programs are intact.

John Casella: Our project development pipeline offers a long runway for profitable growth, combined with our acquisition strategy that has expanded our operating footprint to 10 states where poised to continue delivering value.

Speaker Change: Our project development pipeline offers a long runway for profitable growth combined with our acquisition strategy that has expanded our operating footprint to 10 states, we're poised to continue delivering value.

Bradford Helgeson: And with that, I'll turn it over to Brad to go through some details on the financials. Thanks, John. Good morning, everyone. Revenues in the second quarter were $377.2 million, up $87.5 million or 30.2% year-over-year, with $70 million from acquisition role order and $17.5 million from organic growth or 6%. Solid waste revenues were up 35.1% year-over-year, with acquisition growth of 30.7%, price up 5.7%, and volumes down 1.8%. Within solid waste, pricing the collection line of business was up 6.2%, and volume down 1.2%. In the front load commercial business, price was up 7.3% and volume up 1.1%, while volume declines in the core were concentrated in residential and roll-off as it worked to improve the quality of revenue and margins in those businesses.

Speaker Change: And with that I'll turn it over to Brad to go some where do you go through some details on the financials.

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

Brad Helgeson: Thanks, John Good morning, everyone revenues in the second quarter were $377 $2 million up $87 5 million or 32% year over year with $70 million from acquisition rollover at $17 5 million from organic growth or 6%.

Bradford Helgeson: Revenues in the second quarter were $377.2 million, up $87.5 million, or 30.2% year-over-year, with $70 million from acquisition rollover and $17.5 million from organic growth, or 6%. Solid waste revenues were up 35.1% year over year, with acquisition growth of 30.7%, price up 5.7%, and volumes down 1.8%. Within solid waste, price in the collection line of business was up 6.2% and volume down 1.2%. In the front-load commercial business, price was up 7.3% and volume up 1.1%, while volume declines in the core were concentrated in residential and roll-off, as we worked to improve the quality of revenue and margins in those businesses.

Brad Helgeson: Solid waste revenues were up 35, 1% year over year with acquisition growth of 37% price up five 7% and volumes down one 8%.

Speaker Change: Within solid waste pricing the collection line of business was up six 2% and volume down one 2%.

Speaker Change: In the front of our commercial business price was up seven 3% and volume up one 1% while volume declined in the quarter were concentrated in residential at roll off as you work to improve the quality of revenue and margins in those businesses.

Bradford Helgeson: Revenues in the disposal line of business were up 2.3% year-over-year, with transfer revenue up 9% and landfill revenue down 5.2%. Landfill price growth of 5.2% was offset by lower volume of 10.4%. MSW volumes into the landfills were down slightly in the quarter and essentially flat over the first half of the year, when we saw continued weakness in C&D and in special waste volumes. As we've discussed, the C&D market is currently under pressure as certain competitors in the Metro New York market have aggressively pursued volumes. We expect this dynamic to continue through the end of the year, but it should have baked in 2025.

Bradford Helgeson: Revenues in the disposal line of business were up 2.3% year-over-year, with transfer revenue up 9% and landfill revenue down 5.2%. However, landfill price growth of 5.2% was offset by lower volume of 10.4%. MSW volumes into the landfills were down slightly in the quarter and essentially flat over the first half of the year, but we saw continued weakness in C&D and in special waste volumes. As we've discussed, the C&D market is currently under pressure as certain competitors in the Metro New York market have aggressively pursued volumes. We expect this dynamic to continue through the end of the year, but it should abate in 2025.

Speaker Change: Revenues in the disposal line of business were up two 3% year over year with transfer revenue up 9% and landfill revenue down five 2%.

Speaker Change: Landfill price growth of five 2% was offset by lower volume of 10, 4%.

Speaker Change: MSW volumes into the landfills were down slightly in the quarter and essentially flat over the first half of the year.

Speaker Change: We saw continued weakness in C&D and special waste volumes.

Speaker Change: As we've discussed the <unk> market is currently under pressure as certain competitors in the Metro New York market have aggressively pursued volumes.

Speaker Change: We expect this dynamic to continue through the end of the year, but it should abate in 2025.

Bradford Helgeson: In the case of special waste volumes, we have a deep sales pipeline, but these waste streams are often project-based, and thus timing is inherently difficult to predict. The average price per ton of the landfills was up 10.8% year over year, reflecting a mixed shift away from lower priced streams. We help align our price in the face of volume pressure and prioritize preserving our valuable air supply. Resource Solutions revenues were up 15.4% year-over-year, with recycling and other processing revenue up 31.1% and national accounts up 6.9%.

Bradford Helgeson: In the case of special waste volumes, we have a deep sales pipeline, but these waste streams are often project-based and thus timing is inherently difficult to predict. The average price per ton of the landfills was up 10.8% year-over-year, reflecting a mixed shift away from lower priced streams. As we held the line on price in the face of volume pressure and prioritized preserving our valuables. Resource Solutions revenues were up 15.4% year over year, with recycling and other processing revenue up 31.1%, and national accounts up 6.9%. Within processing operations, price was up 5.5%, driven by an increase of over 50% in average commodity revenue over Q2 last year.

Speaker Change: In the case of special waste volumes, we have a deep sales pipeline, but these waste streams are often are project based and thus timing is inherently difficult to predict.

Speaker Change: The average price per ton at the landfills was up 10, 8% year over year, reflecting a mix shift away from lower prices lower.

Speaker Change: Price streams as we held the line on price in the face of volume pressure and prioritize preserving our valuable airspace.

Speaker Change: Resource solutions revenues were up 15, 4% year over year with recycling and other processing revenue up 31, 1% and national accounts up six 9%.

Bradford Helgeson: Within processing operations, prices were up 5.5%, driven by an increase of over 50% in average commodity revenue over Q2 last year. Of course, most of the benefit of these higher commodity prices is shared with our customers under our contract structures designed to mitigate risk.

Speaker Change: Within processing operations price was up five 5% driven by an increase of over 50% in average commodity revenue over Q2 last year.

Bradford Helgeson: Of course, most of the benefit of these higher commodity prices is shared with our customers under our contract structures designed to mitigate risk. So the net benefit to our revenue in the quarter was only $1.1 million. We expect favorable year-over-year accounts to continue through 2024 as recycled commodity markets remained firm, and current prices are well above the second half of last year. Processing volume was up 12.7% with higher recycling volumes benefited by production enhancements at the Boston Merth. Within national accounts revenue, price was up 3.7%, and volume was up 3.4%. Acquisitions contributed 4.5% across the resource segment.

Speaker Change: Of course, most of this benefit most of the benefit of these higher commodity prices is shared with our customers under our contract structures designed to mitigate risk. So the net benefit to our revenue in the quarter with only $1 1 million.

Bradford Helgeson: So the net benefit to our revenue in the quarter was only $1.1 million. We expect favorable year-over-year comps to continue through 2024 as recycled commodity markets remain firm and current prices are well above the second half of last year. Processing volume was up 12.7%, with higher recycling volumes benefited by production enhancements at the Boston MRF.

Speaker Change: We expect favorable year over year comps to continue through 2024 as recycled commodity markets remained firm and current prices are well above second half of last year.

Speaker Change: Processing volume was up 12, 7% with higher recycling volumes benefited by production enhancements at the Boston Murph.

Bradford Helgeson: Within national accounts revenue, price was up 3.7% and volume was up 3.4%; acquisitions contributed four and a half percent across the resource segment. Adjusted EBITDA was $91.6 million in the quarter, up $19.4 million, or 26.9% year-over-year, with $18 million from acquisition rollover. Adjusted EBITDA margins were 24.3% in the quarter, down 60 basis points year over year. Bridging the year-over-year change in the utility margin, a few specific headwinds drove the decline in the quarter.

Speaker Change: Within National accounts revenue price was up three 7% and volume was up three 4%.

Speaker Change: Acquisitions contributed four 5% across the resource segment.

Bradford Helgeson: Adjustment of the $91.6 million in the quarter, up 19.4 million or 26.9% year over year, with 18 million dollars from acquisition of all over. Adjustment of the $1.4 million or 24.3% in the quarter, down 60 basis points of year-over-year. Bridging the year-over-year change in the $1.2 million, a few specific headwinds drove the decline in the quarter. Lower volume of the landfills, particularly C&D, higher landfills operating costs including leachate with the wet weather in New England, and employee separation costs together represented over 200 basis points of margin headwind. The rest of our business performed well and in line with plant.

Speaker Change: Adjusted EBITDA was $91 $6 million in the quarter up $19 4 million or 26, 9% year over year with $18 million from acquisition rollover.

Speaker Change: Adjusted EBITDA margins were 24, 3% in the quarter down 60 basis points year over year.

Speaker Change: Bridging the year over year change in EBITDA margin, a few specific headwinds drove the decline in the quarter.

Bradford Helgeson: Lower volume at the landfills, particularly C&D, higher landfill operating costs, including leachate with the wet weather in New England, and employee separation costs, together represented over 200 basis points of margin headwind. The rest of our business performed well and in line with plan. Our pricing programs continue to outpace inflation.

Speaker Change: Lower volume at the landfills, particularly CMV higher landfill operating costs, including reshaping of the wet weather in new England and employee separation costs together represented over 200 basis points of margin headwind.

Speaker Change: The rest of our business performed well and in line with plan.

Bradford Helgeson: Our pricing programs continue to outpace inflation. The Boston Merth contributed to approximately $2.5 million of adjusted EBITDA growth in the quarter. And we've benefited again from higher recycled commodity prices and ongoing cost efficiencies in the collection business. Acquisitions were also modest tailwinds to consolidate margins in the quarter. Stepping back from the quarter, adjusted EBITDA margins are up 40 basis points of year to date, and a route look from margin expansion for the full year as reflected in our guidance is unchanged. Cost of operations in the quarter was up $57.5 million euro per year, with $48 million of the increase from acquisition, and $9.5 million from the base business.

Speaker Change: Our pricing programs continued to outpace inflation, Boston Mercury contributed approximately $2 $5 million of adjusted EBITDA growth in the quarter.

Bradford Helgeson: The Boston MRF contributed approximately two and a half million dollars of adjusted EBITDA growth in the quarter, and we benefited again from higher recycled commodity prices and ongoing cost efficiencies in the collection. Acquisitions were also a modest tailwind to consolidated margins in the quarter. Stepping back from the quarter, just-to-deputy margins are up 40 basis points year-to-date, and our outlook for margin expansion for the full year, as reflected in our guidance, is unchanged.

Speaker Change: And we benefited again from higher recycled commodity prices and ongoing cost efficiencies in the collection business.

Speaker Change: Acquisitions were also a modest tailwind to consolidated margins in the quarter.

Speaker Change: Stepping back from the quarter adjusted EBITDA margins are up 40 basis points year to date and our outlook for margin expansion for the full year as reflected in our guidance is unchanged.

Bradford Helgeson: Cost of operations in the quarter was up $57.5 million year-over-year, with $48 million of the increase from acquisitions and $9.5 million from the base business. So, on a same store basis, cost of operations was down 60 basis points as a percentage of revenue year over year. Our effective tax rate was 35.1% in the quarter, and certain non-deductible expenses and discreet items pushed the rate above our statutory rate of approximately 27%. The effective rate is projected at approximately 35% for the year, but we expect to pay less than $5 million in cash taxes.

Speaker Change: Cost of operations in the quarter was up $57 $5 million year over year with $48 million of the increase from acquisitions and $9 5 million from the base business. So on a same store basis cost of operations was down 60 basis points as a percentage of revenue year over year.

Bradford Helgeson: So, on a same-store basis, cost of operations was down 60 basis points as a percentage of revenue year over year. Our effective tax rate was 35.1% in the quarter, and certain non-deductible expenses and discrete items pushed the rate above our statutory rate of approximately 27%. The effective rate is projected at approximately 35% of the year, but we expect to pay less than $5 million in cash taxes. Adjusting that income was $12.5 million in the quarter, down 6.3 million compared to prior year, with the accelerated amortization of identifiable and tangibles associated with acquisitions weighing on earnings.

Speaker Change: Our effective tax rate was 35, 1% in the quarter and certain non deductible expenses and discrete items pushed the rate above our statutory rate of approximately 27%.

Speaker Change: The effective rate is projected at approximately 35% for the year, but we expect to pay less than $5 million in cash taxes.

Bradford Helgeson: Adjusted net income was $12.5 million in the quarter, down $6.3 million compared to the prior year, with the accelerated amortization of identifiable intangibles associated with acquisitions weighing on earnings. Tangible amortization was up 8 million dollars year over year, while DNA associated with acquisitions was over 26% of acquired revenue as compared to approximately 12% for our base business. Gap in net income was $7 million in the quarter, up $1.5 million compared to the prior year, impacted by higher DNA and acquisition-related expenditures, but comparing favorably to the charges for the termination of bridge financing and a legal settlement in Q2 last year.

Speaker Change: Adjusted net income was $12 $5 million in the quarter down $6 3 million compared to prior year with the accelerated amortization of identifiable intangibles associated with acquisitions weighing on earnings.

Bradford Helgeson: Intangible amortization was up $8 million over year, while DNA associated with acquisitions was over 26% of acquired revenue, as compared to approximately 12% for our basic business. Gaffinate income was $70 million in the quarter, up $1.5 million for a period of prior year, impacted by higher DNA and acquisition-related expenditures, but compared favorably to the charges for determination of bridge financing and illegal settlement in Q2 last year. Net cash provided by operating activities was $79.8 million for the first six months of 2024, down $3.4 million over year. This was driven by higher cash outflows from net changes in assets and liabilities, including AP timing in the first quarter and slower AR collections that are businesses acquired from GFL in the Middle Antique.

Speaker Change: Intangible amortization was up $8 million year over year, while DNA associated with acquisitions was over 26% of acquired revenue as compared to approximately 12% for our base business.

Speaker Change: GAAP net income was $70 million in the quarter up $1 $5 million compared to prior year impacted by higher G&A and acquisition related expenditures, but convict comparing favorably to the charges and termination of bridge financing and a legal settlement in Q2 last year.

Bradford Helgeson: Net cash provided by operating activities was $79.8 million for the first six months of 2024, down $3.4 million year over year. This was driven by higher cash outflows from net changes in assets and liabilities, including AP timing in the first quarter and slower AR collections that our business acquired from GFL in the mid-Atlantic. Overall, DSO at June 30 was 38 days, which comprised 55 days at the former GFL operations and 32 days for the rest of Casella's age.

Speaker Change: Net cash provided by operating activities was $79 8 million for the first six months of 2024 down $3 $4 million year over year.

Speaker Change: This was driven by higher cash outflows from net changes in assets and liabilities, including AP timing in the first quarter and slower collections at our businesses acquired from GSL and the mid Atlantic.

Bradford Helgeson: Overall, the ISO at June 30 was 38 days, which comprises 55 days at the former GFL operations and 32 days at the rest of Cacela's age. As a reminder, the acquired businesses were a carve-out from GFL, so the collections were largely not in our control until we transitioned AR and customer data onto our systems, which was completed in Q2. We will focus on working this AR balance down in the coming months, which represents a cash flow opportunity going forward, but this has certainly been a drag on reported cash flow year-to-date. Adjusted free cash flow was $39.5 million in the first six months compared to $47.9 million in the first half of 2023, driven by the working capital dynamics that I just discussed and higher capital expenditures year-over-year.

Speaker Change: Overall DSO at June 30 was 38 days, which comprises 55 days at the former <unk> operations and 32 days and the rest of the consolidated.

Bradford Helgeson: As a reminder, the acquired businesses were a carve-out from GFL, so the collections were largely not in our control until we transitioned receivables and customer data onto our system, which was completed in Q2. We will focus on working this AR balance down in the coming months, which represents a cash flow opportunity going forward, but this has certainly been a drag on recorded cash flow year-to-date. Adjusted free cash flow was $39.5 million in the first six months, compared to $47.9 million in the first half of 2023, driven by the working capital dynamics that I just discussed and higher capital expenditures year over year.

Speaker Change: As a reminder of the acquired businesses, where a carve out from GFS. So the collections were largely not in our control until we transitioned to <unk> and <unk>.

Speaker Change: Customer data onto our systems, which was completed in Q2.

Speaker Change: We will focus on work working with our balance down in the coming months, which represents cash flow opportunity going forward, but this has certainly been a drag on our reported cash flow year to date.

Speaker Change: Adjusted free cash flow was $39 $5 million in the first six months compared to $47 9 million in the first half of 2023, driven by the working capital dynamics that I, just discussed and higher capital expenditures year over year.

Bradford Helgeson: A note that adjusted free cash flow year-to-date represents less than 30% of our full-year guidance, as compared to nearly 40% generated in the first half last year. However, considering the working capital movements reflected in the first half of the number this year, we believe that we are very well positioned heading into the second half from our cash flow standpoint. As of June 30, we had $1.05 billion of debt, $208.5 million of cash, and available liquidity of $481 million. Our consolidated and leverage ratio for purposes of our bank covenants was 2.63 times. Our liquidity and leverage profile have enabled us to be optimistic in executing on our M&A pipeline, as we funded our recent acquisitions, including LMR and Whitetail disposal, primarily with cash on hand.

Bradford Helgeson: I'll note that adjusted free cash flow year to date represents less than 30% of our full year guidance, compared to nearly 40% generated in the first half of last year. However, considering the working capital movements reflected in the first half number this year, we believe that we are very well positioned heading into the second half from a cash flow standpoint. As of June 30, we had $1.05 billion of debt, $208.5 million of cash, and available liquidity of $481 million.

Speaker Change: I will note that adjusted free cash flow year to date represents less than 30% of our full year guidance as compared to nearly 40% generated in the first half last year. However.

Speaker Change: However, considering the working capital movements reflect it in the first half number. This year. We believe that we are very well positioned heading into the second half from a cash flow standpoint.

Speaker Change: As of June 30, we had $1.05 billion of debt $208 $5 million of cash and available liquidity of $481 million.

Bradford Helgeson: Our consolidated net leverage ratio for purposes of our bank covenants was 2.63 times. Our liquidity and leverage profile have enabled us to be opportunistic in executing on our M&A pipeline as we funded our recent acquisitions, including LMR and Whitetail Disposal, primarily with cash on hand. We currently have $75 million now drawn on our revolver, with approximately $225 million of remaining liquidity, and pro forma leverage is less than three times.

Speaker Change: Our consolidated net leverage ratio for purposes of our bank covenants was 263 times.

Speaker Change: Our liquidity and leverage profile have enabled us to be optimistic and executing on our M&A pipeline as we funded our recent acquisitions, including LMR and white tailed disposal, primarily with cash on hand.

Bradford Helgeson: We currently have $75 million now drawn on our revolver with approximately $225 million of remaining liquidity, and pro-former leverage is less than three times.

Speaker Change: We currently have $75 million drawn on our revolver with approximately $225 million of remaining liquidity and pro forma leverage is less than three times.

Bradford Helgeson: As we announced in our press release yesterday, we've updated our guidance to reflect developments in the business to date, including acquisitions close. We're raising our ranges for revenue and adjusted EBITDA by $40 million and $10 million, respectively, at the midpoints, primarily reflecting the anticipated contribution from acquisitions. We reaffirmed guidance for adjusted pre-tash flow with the expected contribution from acquisitions offset by the cost of financing and a conservative outlook on AR collections with newly acquired. We lowered our ranges for the gap metrics, net income, and net cash provided by operating activities, due largely to higher acquisition-related expenditures.

Bradford Helgeson: As we announced in our press release yesterday, we've updated our guidance to reflect developments in the business to date, including acquisitions closed. We're raising our ranges for revenue and adjusted EBITDA by $40 million and $10 million, respectively, at the midpoints, primarily reflecting the anticipated contribution from acquisitions. We reaffirmed guidance for adjusted free cash flow with the expected contribution from acquisitions offset by the cost of financing and a conservative outlook on AR collections with newly acquired.

Speaker Change: Sure.

Speaker Change: As we announced in our press release yesterday, we've updated our guidance to reflect developments in the business to date, including acquisitions clubs.

Speaker Change: We're raising our ranges for revenue and adjusted EBITDA by $40 million and $10 million, respectively at the midpoint, primarily reflecting the anticipated contribution from acquisitions.

Speaker Change: We reaffirmed guidance for adjusted free cash flow with the expected contribution from acquisitions offset by the cost of financing and a conservative outlook on our collections with newly acquired businesses.

Bradford Helgeson: We lowered our ranges for the gap metrics, net income, and net cash provided by operating activities, due largely to higher acquisition-related expenditures. Reconciliations of our guidance on these gap metrics to their related non-gap metrics are included in the press release regarding key assumptions underlying guidance. We now expect solid waste volume to be down 1% to 2%, reflecting continued softness in landfill volumes, as well as lower residential collection and roll-off volume as we prioritize customer profitability over volume growth. However, our overall organic revenue growth assumptions remain unchanged, reflecting an expectation that solid waste price growth will be in the upper end of our anticipated range of 5% to 6% for the year.

Speaker Change: We lowered our ranges for the GAAP metrics net income net cash provided by operating activities due largely to higher acquisition related expenditures.

Speaker Change: Reconciliations of our guidance on these GAAP metrics to their related non-GAAP metrics are included in the press release.

Speaker Change: Regarding key assumptions underlying guidance, we now expect solid waste volume to be down 1% to 2%, reflecting continued softness in landfill volumes as well as lower residential collection that rollout volume as we prioritize customer profitability over volume growth.

Bradford Helgeson: As we prioritize customer profitability over volume growth, however, our overall organic revenue growth assumptions remain unchanged, reflecting an expectation that solid waste price growth will be the upper end of our anticipated range of 5 to 6% for the year.

Speaker Change: However, our overall organic revenue growth assumptions remain unchanged, reflecting an expectation of solid waste price growth will be in the upper end of our anticipated range of 5% to 6% for the year.

Ned Coletta: And with that, I'll turn it over to Net. Thanks, Brad, and good morning, everyone. As mentioned in their earnings release, yesterday afternoon, we've completed five acquisitions here today, very expected to contribute over $100 million of annualized revenues. Nearly all of this acquired revenue is in our mid-Atlantic region, where we see tremendous opportunity to build scale, further grow our business through our differentiated service offerings. We are excited about further building our business in the mid-Atlantic, and the full ton acquisitions fit our long-term strategy well. Whitetail and LMR are in adjacent secondary markets, with high quality operations, and a balanced mix of commercial, subscription, residential, municipal, and industrial customers.

Edmond Coletta: And with that, I'll turn it over to Ned. Thanks, Brad, and good morning, everyone. As mentioned in our earnings release yesterday afternoon, we've completed five acquisitions here to date that are expected to contribute over $100 million in annualized revenues. Nearly all of this acquired revenue is in our mid-Atlantic region, where we see tremendous opportunity to build, scale, and further grow our business through our differentiated service offering. We are excited about further building our business in the Mid-Atlantic, and these bolt-on acquisitions fit our long-term strategy well. Whitetail and LMR are in adjacent secondary markets with high-quality operations and a balanced mix of commercial, subscription, residential, municipal, and industrial customers.

Speaker Change: And with that I'll turn it over to Ned Thanks, Brad and good morning, everyone as mentioned in their earnings release yesterday afternoon. We have completed five acquisitions year to date are expected to contribute over $100 million.

Ned: Realized revenue nearly all of its acquired revenue is in our <unk>.

Ned: Atlantic region, where we see tremendous opportunity to build scale and further grow our business through our differentiated service offerings. We are excited about further building our business in the mid Atlantic and these bolt on acquisitions fit our long term strategy, well white tail and LMR in adjacent secondary market with high quality.

Speaker Change: Operations in a balanced mix of commercial subscription residential municipal and industrial customers. Further we're building operational density, which will help to drive additional efficiencies in our collection operations.

Ned Coletta: Further, we're building operational density, which will help to drive additional efficiencies in our collection operations. These acquired businesses have well-established customer and community relationships that present great opportunities for organic growth, including through our resource solutions offerings. There is potential for us to internalize more recycling volumes into our mid-Atlantic recycling facility, while at the same time using our targeted sales approach at larger industrial, institutional, and multi-site commercial customers to demand heightened sustainability services.

Edmond Coletta: In addition, we're building operational density, which will help to drive additional efficiencies in our collection operations. These acquired businesses have well-established customer and community relationships that present great opportunities for organic growth, including through our resource solutions offering. There is potential for us to internalize more recycling volumes into our Mid-Atlantic Recycling Facility while at the same time using our targeted sales approach to larger industrial, institutional, and multi-site commercial customers who demand heightened sustainability services.

Speaker Change: These acquired businesses have well established customer and community relationships that present, great opportunities for organic growth, including through our resource solutions offerings. There is potential for us to internalize more recycling volumes into our mid Atlantic recycling facility, while at the same time using our targeted sales approach at larger.

Speaker Change: Industrial institutional and multi site commercial customers have demand heightened sustainability services.

Ned Coletta: As always, our near-term focus is welcoming our new employees and customers to Casela, while integrating the operations and systems to ensure a smooth transition. Looking broadly at our M&A strategy, our acquisition pipeline remains very active, with lots of opportunity and strategic areas across our 10-state footprint. Ongoing dialogues and diligence efforts sets us up well for potential additional acquisitions in late 2024 into early 2025. Turning to our development projects, investment in our rail serve, McKean, Pennsylvania, and Lancelot is nearly complete. We received our first test loads at the site in the second quarter that allowed us to test equipment, processes, and conduct training.

Edmond Coletta: As always, our near-term focus is welcoming our new employees and customers to Casella while integrating the operations and systems to ensure a smooth transition. Looking broadly at our M&A strategy, our acquisition pipeline remains very active, with lots of opportunity in strategic areas across our 10 states. Ongoing dialogues and diligence efforts set us up well for potential additional acquisitions in late 2024 into early 2026. Turning to our development projects, investment in our Railsurf McKean, Pennsylvania landfill is nearly complete. We received our first test loads at the site in the second quarter, which allowed us to test equipment, processes, and conduct training. We have not included any incremental contribution from the site in our forecaster guidance.

Speaker Change: As always our near term focus is welcoming our new employees and customers that can sell that while integrating the operations and systems to ensure a smooth transition.

Speaker Change: Looking broadly at our M&A strategy, our acquisition pipeline remains very active with lots of opportunity in strategic areas across our 10 state footprint.

Speaker Change: Dialogues and diligence efforts.

Speaker Change: Well for potential additional acquisitions in late 2024 into early 2025.

Speaker Change: Turning to our development projects investment in our rail served Mccain, Pennsylvania landfill is nearly complete we received our first test loads at the site in the second quarter that allowed us to test equipment processes and conduct training we.

Ned Coletta: We have not included any incremental contribution from the site in our Forecaster guidance, and, as previously discussed, the site provides a solid long-term risk management strategy to preserve our flexibility in the Northeast. As such, this won't be a meaningful driver of near-term buying growth, and the site will be operated under the same return-driven focus that we apply across all opportunities. An example of this return-driven focus is the continued strong performance of our Boston recycling facility. Results from the upgraded equipment at this facility are creative to consolidate adjusted EBITDA and margins, and clearly demonstrate our approach to sustainability and investments being both environmentally and economically balanced.

Speaker Change: We have not included any incremental contribution from the site in our forecast or guidance and as previously discussed the site provides a solid long term risk management strategy to preserve our flexibility in the northeast.

Edmond Coletta: And, as previously discussed, this site provides a solid long-term risk management strategy to preserve our flexibility in the North. As such, this won't be a meaningful driver of near-term volume growth, and the site will be operated under the same return-driven focus that we apply across all operations. An example of this return-driven focus is the continued strong performance of our Boston Recycling Facility. Results from the upgraded equipment at this facility are accretive to consolidated adjusted EBITDA and margins and clearly demonstrate our approach to sustainability investments being both environmentally and economically bound.

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

Speaker Change: An example of this return driven focus is the continued strong performance of our Boston recycling facility results from the upgrading equipment. At this facility are accretive to consolidated adjusted EBITDA and margins and clearly demonstrate our approach to sustainability investments being <unk>.

Speaker Change: Environmentally and economically balanced.

Ned Coletta: We're excited about the technology and equipment upgrade, our will-of-massive Connecticut recycling facility planned for the second half of 2024. We kicked off that project a few weeks ago, and we are evaluating other opportunities to advance our circularity infrastructure. Our RNG projects are also progressing. The facility at Juner for Rage Landfill faced some initial start-up delays from our third-party partner that has moved the opening gate back to this fall. As a reminder, we have invested $0 into these projects, and we're receiving a royalty payment from the sale of gas and rent, which we believe is the most appropriate risk mitigating path for us.

Edmond Coletta: We're excited about the technology and equipment upgrade at our Willimantic, Connecticut recycling facility planned for the second half of 2024. We kicked off that project a few weeks ago, and we're evaluating other opportunities to advance our circularity infrastructure. Our RNG projects are also progressing. The facility at Juniper Ridge Landfill faced some initial startup delays from our third-party partner, which has moved the opening date back to this fall. As a reminder, we have invested $0 into these projects, and we're receiving a royalty payment from the sale of gas and RINs, which we believe is the most appropriate risk mitigating path for us.

Speaker Change: We're excited about the technology and equipment upgrade our Willimantic, Connecticut recycling facility planned for the second half of 2024, we kicked off that project a few weeks ago, and we are evaluating other opportunities to advance our secularity infrastructure.

Speaker Change: R&D projects are also progressing the facility Gena for Reis landfill faced some initial startup delays from our third party partner that has moved the opening date back to this fall as a reminder, we have invested $0 into these projects and we're receiving a royalty payment from the sale of gas and Rins.

Speaker Change: Which we believe is the most appropriate risk mitigating path for us.

Edmond Coletta: Looking ahead, the three WAGO-led projects continue to advance, with commercial operations expected in late 2020. Like John and the rest of our team, I would like to again welcome our new employees to Casella. We pride ourselves on our strong culture and our values. We're very excited about the opportunities ahead to drive continued profitable growth in shareholder value. And with that, I'd like to turn it back to the operator. Thank you.

Ned Coletta: Looking ahead, the three Wagon-led projects continue to advance, with commercial operations expected in late 2025.

Speaker Change: Looking ahead. The three wag has led projects continue to advance with commercial operations expense expected in late 2025.

Ned Coletta: Like John and the rest of our team, I would like to again welcome our new employees to Casella. We pride ourselves on our strong culture in our value system. We're very excited about the opportunities ahead to drive continued possible growth and shareholder value, and with that, I'd like to turn it back to the operator for questions.

Speaker Change: Like John and the rest of our team I would like to again welcome our new in place at Casella.

John Casella: We pride ourselves on our strong culture and our value system. We're very excited about the opportunities ahead to drive continued profitable growth and shareholder value.

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

Unknown Executive: Thank you.

Operator: Thank you. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. And one moment, please, for our first question. Cough, Cough, Cough. The first question comes from Tyler Brown with Raymond James. Your line is now open.

Speaker Change: Yes.

Unknown Executive: To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker Change: Thank you to ask a question. Please press star one one on your telephone and wait for your name to be announced.

Speaker Change: To withdraw your question. Please press star one again.

Unknown Executive: One moment, please, for our first question.

Speaker Change: One moment please for our first question.

Tyler Brown: The first question comes from Tyler Brown with Raymond James. Your line is now open.

Speaker Change: The first question comes from Tyler Brown with Raymond James Your line is now open.

Tyler Brown: Hey, good morning, guys.

Tyler Brown: Hey, good morning, guys. Hey, can we just start maybe talk a little bit about the three million in Lich A?

Unknown Executive: Good morning, Tyler.

Tyler Brown: Hey, good morning, guys.

Lauren: Lauren and good morning.

Tyler Brown: Hey, can we just start, maybe talk a little bit about the $3 million in leachate? So I've been reading some articles about all the flooding in Vermont, so I'm assuming that that is the issue. But I just want to be clear, this wasn't systemically higher leachate costs because of PFAS.

Tyler Brown: Hey, can we just start maybe talk a little bit about the $3 million in leachate. So I've been reading some articles about all the flooding in Vermont. So I'm, assuming that that is the issue, but I just wanted to be clear this wasn't systemically higher leachate costs because of <unk>.

Tyler Brown: So I've been reading some articles about all the flooding and Vermont. So I'm assuming that that is the issue.

John Casella: I just want to be clear, this wasn't systemically higher of Lich A costs because of PFAS. No, not at all. I'm clearly additional volume because of all of the weather affected on four of our facilities, Tyler. So very significant flooding, Vermont, a bit into the Hampturer and a bit in Maine. Less so in the Hampturer, Maine, very significant in Vermont and probably Vermont and New Hampshire more. Yeah, and a little upstate New York, we're a Quentin County facility as well. So additional volumes because of the wet weather and also a little bit further transportation in some cases because of the amount that we had; we had to go to new facilities, different facilities.

Unknown Executive: No, not at all. Clearly, additional volume because of all of the wet weather affected four of our facilities, Tyler. So very significant flooding in Vermont, a bit into New Hampshire, and a bit in Maine. Less so in New Hampshire and Maine, very significant in Vermont and probably Vermont and New Hampshire, more significant. Yeah, and a little upstate New York where there was a Clinton County facility as well. Additional volumes because of the wet weather and also a little bit further transportation in some cases because of the amount that we had, we had to go to new facilities, different facilities.

Speaker Change: No not at all clearly.

Speaker Change: Additional volume because of all of the wet weather affected.

Tyler Brown: Okay. Yeah, that's very helpful.

Speaker Change: Four of our facilities.

Tyler Brown: Tyler so very significant flooding Vermont.

Speaker Change: A bit into new Hampshire, and a bit in Maine, less so in new Hampshire remain very significant and Vermont.

Morris: Probably Vermont and New Hampshire Morris.

Speaker Change: Yeah, and a little upstate New York, where Clinton County facility as well so additional volumes because of the.

Speaker Change: Weather.

Speaker Change: And also a little bit further transportation and in some cases because of the amount that we had we had to go to new facilities different facilities.

Tyler Brown: And then, Brad, just if I look at the EBITDA, the guide moved up, I think, by $10 million or so, but you are obviously active on the M&A front, which I'm assuming will contribute in the back half. You did have the higher leachate cost. Seems like commodity prices are improving, though I know that's not a huge impact. But can you talk about or maybe bridge the $10 million increase? Was that effectively all from acquisitions, or was there some core increase in there?

Tyler Brown: Okay.

Bradford Helgeson: Yeah, that's very helpful.

Bradford Helgeson: And then Brad, so just if I look at the EBITDA, the guide moved up, I think by 10 million or so. But you are obviously active on the M&A front, which I'm assuming will contribute in the back half. You did have the higher Lich A cost; seems like the money prices are improving though. I know that's not a huge impact. But just can you talk about or maybe bridge the 10 million increase? Was that effectively all from acquisitions, or was there some core increase in that?

Speaker Change: Yes, that's very helpful and then Brad so just.

Brad Helgeson: If I look at the EBITDA. The guide moved up I think by $10 million or so but you are obviously active on the M&A front, which I'm assuming will contribute in the back half you did have the higher leachate costs. It seems like commodity prices are improving though I know thats not a huge impact, but just can you talk about or maybe bridge the $10 million increase.

Speaker Change: With that effect effectively all from acquisitions or was there some core increase in there.

Bradford Helgeson: Hunter. Yeah, it's effectively all from acquisitions. We're more or less on track with our guidance prior to the acquisition. So, I think for all intents and purposes, you can assume the 10 million is attributable entirely to the acquisitions. And that's, you know, a little less than six months' contribution, you know, with one of the closings on July 1 and one closing on August 1. Okay.

Bradford Helgeson: Yeah, it's effectively all from acquisitions. We were more or less on track with our guidance prior to the acquisition, so I think for all intents and purposes, you can assume the $10 million is attributable entirely to the acquisitions, and that's, you know, a little less than six months of contribution, you know, with one of the deals closing on July 1 and one closing on August 1. Okay,

Speaker Change: Yes, it's effectively all from acquisitions.

Speaker Change: We're more or less on track with our guidance prior to the acquisition. So I think for all intents and purposes, you can assume the $10 million is <unk>.

Speaker Change: Treatable entirely entirely to the acquisitions in that.

Speaker Change: Less than six months contribution with one of the closing on July one and one closing on August one.

Tyler Brown: Okay, and then just from a modeling perspective, just how much revenue should we expect from M&A in 24 and then basically how much is already slated for 25?

Bradford Helgeson: And then just from a modeling person, how much revenue should we expect from MNA in 24? And then basically how much is already slated for 25. So, for these acquisitions that we've just announced, it's about 115 million dollars of annual revenue. You know, the 40 million of the increase in the guidance for this year is essentially the impact of those acquisitions. And so the rule over would be, again, plus or minus would be the difference. Yeah. Okay. Right.

Speaker Change: Okay, and then just from a modeling perspective.

Speaker Change: How much revenue should we expect from M&A in 'twenty four and then basically how much is already slated for 25.

Speaker Change: So.

Bradford Helgeson: For these acquisitions that we've just announced, it's about $115 million of annual revenue. The $40 million of the increase in the guidance for this year is essentially the impact of those acquisitions. And so the rollover would be, again, plus or minus would be the difference.

Speaker Change: For these acquisitions that we've just announced it's about $115 million of annual revenue with a $40 million.

Speaker Change: Of the increase in the guidance for this year.

Speaker Change: Essentially.

Speaker Change: The impact of those acquisitions and some of the rollover would be again, plus or minus would be the difference.

Tyler Brown: Yeah, okay, right, so I already have some rolling into 25. Okay, just maybe a little more, yeah, maybe a little more color on Whitetail LMR.

Bradford Helgeson: So already have some rolling into 25. Okay.

Speaker Change: Okay, Alright, so already have some rolling into 'twenty five okay.

Tyler Brown: Just maybe a little more, yeah, maybe a little more color on white tail LMR. Can you talk a little bit about that? I think you touched on it, but can you talk about the revenue mix? What are the exposed to in collection? Do they have strong transfer assets?

Speaker Change: Maybe a little more yes, maybe a little more color on why Cal LMR.

Speaker Change: Can you talk a little bit I think you touched on it but can you talk about the revenue mix what are they exposed to and collection and do they have strong transfer assets do you plan to internalize, both the recycling and landfill waste.

Tyler Brown: Can you talk a little bit, Ned, I think you touched on it, but can you talk about the revenue mix? What are they exposed to in collection? Do they have strong transfer assets? Do you plan to internalize both the recycling and the landfill waste?

Tyler Brown: Do you plan to internalize both the recycling and the landfill waste?

Edmond Coletta: Thanks, Tyler. Neither of them have transferred assets today.

John Casella: Thanks, Tyler. Neither of them have transfer assets.

Speaker Change: Thanks, Tyler neither of them have transfer assets today LMR is a business that's in <unk>.

John Casella: Today, LMR is a business that's in Northwestern, New Jersey, just across the border from our Pennsylvania operation; some overlap, some adjacent seas, well mixed business. The real internalization opportunity will be getting recyclables into the recycling facility required from GFL last year that were in the process of upgrading as well. White tail is a little bit more of a significant business. It's headed down towards Allentown, down towards Philadelphia area and the secondary market to operate across three operations. Very well run business across subscription, residential, municipal, commercial, industrial segments. It's been a fast growing business that has a very good replication in those markets, high quality service.

Edmond Coletta: LMR is a business that's in northwestern New Jersey, just across the border from our Pennsylvania operation. Some overlap, some adjacencies, and a well-mixed business. The real internalization opportunity will be getting recyclables into the recycling facility we acquired from GFL last year that we're in the process of upgrading as well. Whitetail is a little bit more of a significant business. It's headed down towards Allentown, down towards the Philadelphia area in the secondary markets. It operates across three operations and is a very well-run business across subscription residential, municipal, commercial, and industrial segments.

Speaker Change: It's western New Jersey aegis.

Speaker Change: Across the quarter from our Pennsylvania operation some overlap some adjacencies well mix business.

Speaker Change: The real internalization opportunity will be getting recyclables into the recycling facility, we acquired from <unk> last year that we're in the process of upgrading as well.

Speaker Change: With white tail is a little bit more of a significant business is headed down towards Allentown down towards Philadelphia area in the secondary markets operates across three operations.

Speaker Change: And very well run business across subscription residential and municipal commercial or industrial segments.

Edmond Coletta: It's been a fast-growing business that has a very good reputation in those markets for high-quality service. As we look to that business, once again, a great opportunity to vertically integrate into a recycling operation in Pennsylvania. Short-term, we're not looking to internalize either of them from a waste standpoint, although in the midterm, we could look to do so with McKean if we chose to. Both of them are more of extensions of the platform, some level of overlap, and a continuation of the strategy we started last year.

Speaker Change: It's been a fast growing business. It has a very good reputation in those markets high quality service as we looked at that business once again create opportunity to vertically integrate to our recycling operation in Pennsylvania short term.

John Casella: As we looked at that business once again, great opportunity to vertically integrate or recycling operation.

John Casella: In Pennsylvania, short term, we're not looking to internalize either of them from a waste standpoint; although midterm, we could look to do so to McCain, if we chose to. Both of them are more of extensions of the platform, some level of overlap, and the continuation of the strategy we started last year. Okay, perfect.

Speaker Change: Looking to internalize either at that from a weight standpoint, although mid term we could look to do so to mckean. If we chose to you.

Speaker Change: Both of them are more extensions at the platform some level of overlap and a continuation of the strategy we started last year.

Tyler Brown: Okay, perfect. My last one: there was a large transaction that was announced on Long Island by one of your peers. I'm just curious if there's any competitive dynamic that we should think about there. Does that hurt or help the C&D situation, or just any thoughts?

Tyler Brown: My last one, there was a large transaction that was announced on Long Island by one of your peers. I'm just curious if that, if there's any competitive dynamic that we should think about there, does that hurt or help the C&D situation or does any thoughts there? Thanks, guys. From a practical standpoint, we really weren't receiving any of the, any of the MSW from, you know, from the principles and that transaction. So it's not, it's not any, any significance from a disposal standpoint. Yeah, almost all the MSW and Long Island goes to the burn plants, co-fans of facilities.

Speaker Change: Okay, perfect and my last one.

Speaker Change: There was a large transaction that was announced on long island by one of your peers.

Speaker Change: Just curious if that.

Speaker Change: If there's any competitive dynamic that we should think about there does that hurt or help the sandy situation or just any thoughts there. Thanks.

Unknown Executive: From a practical standpoint, we really weren't receiving any of the MSW from the principals in that transaction, so it's not of any significance from a disposal standpoint. Yeah, almost all the MSW in Long Island goes to the burn plants, COVANTA facilities, and in that transaction, they were bringing their C&D under a very long-term agreement out to Ohio, so that doesn't really change the complexion of construction demo flows in

Speaker Change: Thanks, Scott from a practical.

Speaker Change: Standpoint, we really werent receiving any of the.

Speaker Change: Any of the MSW from.

Speaker Change: From the principals in that transaction. So it is not.

Speaker Change: That is not a any significance from a disposal standpoint.

Speaker Change: Almost all of the MSW in long Island goes to the burn plants copay access facilities.

John Casella: And that transaction, they were bringing their C&D under a very long-term agreement out to Ohio. So that was, that doesn't really change the complexion of construction, demo flows.

Speaker Change: And that transaction they were bringing their C&D under very long term agreement out to Ohio. So that was that doesn't really change the complexion of.

Speaker Change: Construction timber flows in the northeast.

Tyler Brown: or East? Okay, perfect. Thanks, guys. Thank you.

Tyler Brown: Okay, perfect. Thanks, guys.

Scott: Okay perfect. Thanks, Scott.

Unknown Executive: Thank you. You're welcome, Tyler.

Brian Butler: Welcome, Tyler. And our next question comes from Brian Butler with Faithful. Your line is open. Good morning. Thank you for taking the questions. Morning.

Speaker Change: Thank you I welcome to you either.

Brian Butler: And our next question comes from Brian Butler with FIFO. Your line is open.

Speaker Change: And our next question comes from Brian Butler with Stifel. Your line is open.

Brian Butler: Good morning. Thank you for taking the question. Good morning. Good morning. On the deals, could you give a year-to-date spend on that, or do I need to wait until you report the third quarter?

Brian Butler: Hello. Good morning, Thank you for taking the question.

Speaker Change: Good morning, good morning.

Brian Butler: I'm on the deals.

Unknown Executive: Can you give a year-to-date spend on that, or do I need to wait until the you report three-quarter? It's not something we're laying at this time, so you'll see in our third quarter to the amalgamation of all acquisitions. Okay.

Brian Butler: On the deal could you give a year to date spend on that or do I need to wait until you report three quarter third quarter.

Unknown Executive: It's not something we're laying out this time, so you'll see in our third quarter the culmination of all acquisitions.

Speaker Change: It's not something we're laying at this time, so you'll see at our third quarter Q.

Speaker Change: I'll now foundation as all acquisitions.

Brian Butler: Okay, um, I guess maybe another way to ask is when you look at the guidance, kind of going up to 40 million and 10 million. So it's kind of an implied EBITDA margin of 25%. When you think of that rolling into 2025, how should we think about those margins improving as you integrate those those assets?

Brian Butler: Yeah.

Brian Butler: I guess then maybe another way to ask is when you look at the guidance kind of going up to 40 million and 10 million, so it's kind of an implied EBITDA margin of 25%. When you think of that, rolling into 2025, how should we think about those margins improving as you integrate those assets?

Brian Butler: Okay.

Speaker Change: I guess, maybe another way to ask is when you look at the guidance kind of going up the $40 million and $10 million. So on a kind of an implied EBITDA margin of 25% when you think of that rolling into 2025.

Speaker Change: Should we think about those margins improving as you integrate.

Speaker Change: Those assets.

Bradford Helgeson: Yeah, it's Brad. So the increase in guidance of $10 million and $40 million is primarily due to the acquisitions, but not entirely. You know, I would say the margins for the businesses pre-synergy are probably closer to 20%. And we'll, of course, look to work those up over time as we put in place our operating strategies and, you know, where possible, get some synergies out of the overlap.

Bradford Helgeson: Yeah, Brian, Brad. So the increase in guidance of 10 million and 40 million, that's predominantly the acquisitions but not entirely. You know, I would say the margins for the businesses pre-citergy are probably close to 20%, and we'll, of course, look to work those up over time as we put in place our operating strategies and, where possible. You get some synergies out of the overlap.

Brad Helgeson: Yes, Brian it's Brad.

Brad Helgeson: So the increase in guidance of $10 million or $40 million.

Speaker Change: Predominantly the acquisitions, but not entirely I would say the margins for the businesses pre synergy probably closer to 20%.

Speaker Change: And we will of course look to work those up over time as we.

Speaker Change: Put in place our operating strategies and.

Brad Helgeson: Where possible.

Speaker Change: You can get some synergies out of the overlap.

Bradford Helgeson: Okay, and then maybe on the commercial side of the business on collection, have you been seeing service intervals still out facing service decreases? Yeah, we are absolutely continuing to see strength in the commercial side of the business. We have volume increases and in our price remains quite strong, entire business. It's probably the brightest spot in our entire collection business today. We really do differentiate ourselves with our offerings and continue to gain new business, especially with higher and higher profile customers.

Brian Butler: Okay, and then maybe on the commercial side of the business for collection, have you been seeing service intervals still outpacing service decreases?

Speaker Change: Okay, and then maybe on the commercial side of the business on collection have you been seeing service interval is still outpacing service decreases.

Unknown Executive: Yeah, we are absolutely continuing to see strength in the commercial side of the business. We have volume increases, and our price remains quite strong across the entire business. It's probably the brightest spot in our entire collection business today. We really do differentiate ourselves with our offerings and continue to gain new business, especially with higher-profile customers.

Speaker Change: Yes, we are absolutely continue to see strength in the commercial side of business.

Speaker Change: We have.

Speaker Change: Volume increases and and in our price remains quite strong.

Brad Helgeson: Entire business its probably the brightest spot in our entire collection business today, we really do differentiate ourselves with our offerings and continue to gain new business, especially with higher and.

Brad Helgeson: Higher profile customers.

Brian Butler: Okay, and then maybe one last one on modeling. When you think about that, you talked about the tax rate being 35% for 24, but only 5 million in cash tax. What's the right way to think about 25 when it comes to NOLs that might be kind of rolling over and impacting the tax rate next year?

Bradford Helgeson: Okay, and then maybe one last one on modeling. When you think about the tax rate being 35% for 24 but only 5 million in cash tax, what's the right way to think about 25 when it comes to NOLs that might be kind of rolling over and impacting the tax rate next year? Yeah, we're going to use up our pre-2017 NOLs this year, and then we're going to roll into our post-2017 tax law change NOLs starting next year. So, from a cash perspective, those are worked a little bit differently than the pre-2017 in that they only shield 80% of federal cash tax.

Speaker Change: Okay, and then maybe one last one on modeling when you think about you talked about the tax rate being 35% for 'twenty, four but only $5 million of cash tax what's the right way to think about 25, when it comes to Nols that might be kind of rolling over and impacting the tax rate.

Brad Helgeson: Next year.

Bradford Helgeson: Yeah, we're going to use up our pre-2017 NOLs this year, and then we're going to roll into our post-2017 tax law change NOLs starting next year. So from a cash perspective, those work a little bit differently than the pre-2017 NOLs in that they only shield 80% of federal cash tax. So, all else being equal, we'll begin to pay federal cash tax probably next year, but at a relatively low level, again, primarily shielded by the NOLs for several years.

Speaker Change: Yes, we're going to use up our pre 2017 Nols this year.

Brad Helgeson: And then we're going to roll into our post 2017 tax law change Nols starting next year.

Speaker Change: So from a cash perspective those.

Brad Helgeson: Those are worth a little bit differently than the pre 2017 and that they only shield, 80% of federal cash tax so.

Bradford Helgeson: So all of us being equal, we'll begin to pay federal cash tax probably next year, but at a relatively low level, again, primarily shielded by the NOLs for several years after that. But at the income statement, we'll revert more to the NOLs. Yeah, so on the income statement, 35% this year. I think as our pre-tax income continues to grow, that number will naturally kind of come down towards our statutory rate of 27%. Exactly where, it's too early to say for 2025, but 35% should be the high water mark from a book perspective.

Brad Helgeson: All else being equal we will begin to pay.

Brian Butler: Federal cash tax probably next year.

Brian Butler: But at a <unk>.

Brian Butler: Relatively low level again, primarily shielded by the Nols for several years after that but on the income statement will revert more to the normalized yes, yes. So on the income statement, 35%. This year I think as our pre tax income continues to grow that number will naturally.

Bradford Helgeson: Will revert more to the normalized? Yeah, yeah. So on the income statement, 35% this year. I think as our pre-tax income continues to grow, that number will naturally kind of come down towards our statutory rate of 27%. Exactly where, it's too early to say for 2025, but 35% should be the high watermark from a book perspective.

Brian Butler: <unk> kind of come down towards our statutory rate of 27% exactly where.

Brian Butler: It's too early to say for 2025, but it took 35% should be the high water high watermark from a book perspective.

Brian Butler: Okay, great.

Brian Butler: Okay, great. I'll get back into the queue. Thank you.

Brian Butler: I'll get back into the queue. Thank you.

Speaker Change: Okay, great I'll get back into the queue. Thank you.

Adam Bubes: And the next question comes from Jerry Rivich with Goldman Sachs. Your line is open.

Jerry Rivitch: And the next question comes from Jerry Rivitch with Goldman Sachs. Your line is open.

Brian Butler: Thanks, Brian.

Speaker Change: And the next question comes from Jerry Revich with Goldman Sachs. Your line is open.

Adam Bubes: Hi, this is Adam Bubes with Goldman Sachs. Good morning, everyone. Really strong growth in the quarter, and looks like the M&A pipeline continues to be robust. Is it possible to sort of isolate the margin trajectory on the core legacy operations versus acquired businesses? I'm wondering if the price-cost spread looks different this quarter for your core operations versus acquired assets.

Adam Bubes: Hi, this is Adam Bubes with Coleman Sachs. Good morning, everyone. Good morning.

Adam: Hi, This is Adam.

Adam: Goldman Sachs Good morning, everyone.

Adam Bubes: Really strong growth in the quarter and looks like the M&A pipeline continues to be robust. Is it possible to sort of isolate the margin trajectory on the core legacy operations versus acquired businesses? I'm wondering if the price-cost spread looks different this quarter for your core operations versus acquired assets.

Speaker Change: Good morning.

Speaker Change: Yes.

Speaker Change: Really strong growth in the quarter it looks like the.

Speaker Change: M&A pipeline continues to be robust.

Speaker Change: Is it possible to sort of isolate the margin trajectory on the core legacy operations versus acquired businesses I'm wondering if the price cost spread looks different this quarter for your core operations versus acquired assets.

Bradford Helgeson: Hey, Brad, the price cost spread, you know, for the existing business has been pretty consistent, you know, over 100 basis points in the base business, you know, in the acquired businesses. We intentionally take a more sort of cautious and gradual approach to price increases. So the effect of our pricing programs is really felt in the base business. You know, one number that John mentioned in his prepared remarks that I think gives a good idea of the underlying margin trend that's happening in the business, kind of setting aside the one-time issues, I'll call them, we had in the second quarter, is the collection business was up, excluding acquisitions, 130 basis points on EBITDA margin year over year in the quarter. So that's very much the underlying trend as kind of the puts and takes come in over the top of it.

Bradford Helgeson: Hey, hey, hey, Brad. The price cost spread for the existing business has been pre-consistent. Over 100 basis points in the base business. In the acquired businesses, we intentionally take a more cautious and gradual approach with price increases. So the effect of our pricing programs is really felt in the base business.

JF: Hey, JF.

Speaker Change: Yes.

JF: The price cost spread.

JF: For the existing business has been pretty consistent.

Speaker Change: Over 100 basis points.

Speaker Change: The base business.

Speaker Change: And the acquired businesses, we intentionally take.

Speaker Change: More so our cautious and gradual approach with price increases.

Speaker Change: So the effect of our pricing programs is really felt in the base business.

Bradford Helgeson: You know, one number that John mentioned in his prepared remarks that I think gives a good idea of the underlying margin trend that's happening in the business, kind of setting aside that the one-time issues I'll call it. We've had the second quarter is the collection business was excluding acquisitions 130 basis points on EBITOM margin year over year in the quarter. So that's very much the underlying trend as kind of the puts and takes come in over the top of it. Got it.

Speaker Change: One number that John mentioned in his prepared remarks that I think.

John Casella: Gives a good idea of the underlying margin trend that's happening in the business setting aside that.

John Casella: The onetime issues I'll call. It we've had in the second quarter.

John Casella: Is the collection business was up excluding acquisitions of 130 basis points on EBITDA margin year over year in the quarter.

Speaker Change: So that's very much the underlying trend is kind of the puts and takes.

JF: Come in over the top of it.

Adam Bubes: Got it. And then, you know, how much of the lost C&D volumes this year do you expect to get back in 2025? Just conceptually, should we expect outsized volumes in 2025 as the competitor landfill comes offline?

Unknown Executive: And then, you know, how much of the lost CND volumes this year do you expect to get back in 2025?

Speaker Change: Got it and then.

Speaker Change: How much of the lost C&D volumes. This year do you expect to get back in 2025, just conceptually should we expect outsized volumes in 2025 as the competitor landfill comes offline.

Unknown Executive: Just conceptually, should we expect outsized volumes in 2025 as the competitor landfill comes offline? I think from our vantage point, nothing ever shifts on a dime, but that capacity will be out of the market at Brookhaven in Long Island, and there'll be less outlets to go to. So some of our long term customers who shifted to that site as they were looking to fill it up, we hope to get back into our system. As with everything, transportation is always the complexity to manage transportation lanes and get that waste back. So, you know, right now it's a little early to say if it ramps Q1 or through the spring, but we're hopeful that those lines do return to us in the headwind of base.

Speaker Change: I think from our vantage point nothing ever shifts on a dime, but that capacity will be added to the market at Brookhaven and long island, and there'll be less outlets, particularly too. So some of our long term customers who shifted to that site as they are looking to fill it up.

Unknown Executive: I think from our vantage point, nothing ever shifts on a dime, but that capacity will be out of the market at Brookhaven in Long Island, and there'll be fewer outlets to go to. So some of our long-term customers who shifted to that site as they were looking to fill it up, we hope to get back into our system. As with everything, transportation is always the complexity to be able to establish transportation lanes and get that waste back. Right now, it's a little early to say if it ramps up Q1 or through the spring, but we're hopeful that those lines do return to us and that headwind abates.

Speaker Change: Hope to get back into our system as with everything transportation, it's always the complexity Dallas.

Speaker Change: Dallas transportation lanes, they get that waste back so right now it's a little early to say if it ramps Q1 or through this spring, but we're hopeful that those volumes do return to us than a headwind abates.

Unknown Executive: And then one last one on margins, it looks like, you know, normal seasonality is for margins to be up 160 basis points, 3Q versus 2Q.

Adam Bubes: And then one last one on margins. It looks like, you know, normal seasonality is for margins to be up 160 basis points in 3Q versus 2Q. Given the unexpected expense items in 2Q, should we be expecting margins to be, you know, 80 basis points ahead of normal seasonality in 3Q as those roll off? I know there could be some other moving pieces with McKean, Willimantic. So any puts on the sequential margin trajectory? Yeah, I would say.

Speaker Change: And then one last one on margins it looks like normal seasonality is for margins to be up 160 basis points to <unk> versus <unk>, given the unexpected expense items in <unk> should we be expecting margins to be 80 basis points ahead of normal seasonality in <unk>.

Unknown Executive: Given the unexpected expense items in 2Q, should we be expecting margins to be, you know, 80 basis points ahead of normal seasonality in 3Q as those rolls off? I know there could be some other moving pieces with McKean, Willa Mantek, so any puts on the sequential margin trajectory?

Speaker Change: Those rolls off I know there could be some other moving pieces with.

Mccain willimantic: Mccain willimantic, so any puts on the sequential margin trajectory.

Unknown Executive: Yeah, I would say there's two things going on that I would highlight.

Bradford Helgeson: Yeah, I would say there are two things going on that I would highlight. One is the point you made, you know, we had a couple of your quote unquote one-time items in the second quarter that, you know, Q2 to Q3, that should help the sequential margin trend. You know, but overall, kind of taking a step back, the mix of the business is shifting geographically, you know, where as we move down the eastern seaboard, the business is going to have less seasonality to it, and it's going to have relatively more collection relative to landfill.

Speaker Change: Yes, I would say, there's two things going on that I would I would highlight one is the point you made we have a couple of quote unquote, one time items in the second quarter that Q2 to Q3.

Bradford Helgeson: What is the point you made? You know, we had a couple of, you know, quarter one time items in the second quarter that, you know, Q2 to Q3, that should help the sequential margin trend. You know, but then overall kind of taking a step back, the mix of the business is shifting geographically. You know, where as we move down the East and Seaboard, the business is going to have less seasonality to it, it's going to have relatively more collection relative to Lancel. And then those factors will lead to a smoother quarter-to-quarter margin trend than we've seen historically.

Mccain willimantic: It helped the sequential margin trend.

Speaker Change: But then overall kind of taking a step back the mix of the business is shifting geographically.

Mccain willimantic: Where as we move down the eastern Seaboard.

Mccain willimantic: The business is going to have less seasonality to it it's going to have relatively more collection realm.

Bradford Helgeson: And those factors will lead to a smoother quarter-to-quarter margin trend than we've seen historically. So exactly how that plays out, it's probably hard to predict for this third quarter. It's really hard for you to predict for this third quarter. But those are really the two kinds of factors. Yeah, as you think about it.

Speaker Change: Relative to landfill.

Mccain willimantic: And then those factors.

Speaker Change: Lead to a smoother quarter to quarter margin trends than we've seen historically so.

Bradford Helgeson: So exactly how that plays out, it's probably hard to predict for this third quarter; sort of hard for you to predict for this third quarter. But those are really the two kind of factors, you know, as you think about it.

Speaker Change: <unk>, how that plays out it's probably hard to.

Speaker Change: To predict for this third quarter.

Speaker Change: Hartford.

Speaker Change: To predict for the third quarter.

Speaker Change: Those are really the two kind of factors.

Speaker Change: As you think about it.

Unknown Executive: Thanks so much.

Speaker Change: Okay. Thanks, so much.

Stephanie Moore: And the next question comes from Stephanie Moore with Jefferies. Your line is open. Hi, good morning. Thank you. I was hoping to touch a bit on maybe some of the inflationary pressures that you're seeing and how that's trended as the years progressed, you know, labor trends or parent maintenance and the likes of that, as well as maybe some of the other self-health initiatives that you have kind of in place that are helping to offset some of the cost pressures. Thanks. Great. So I think inflation has been a little stickier than we had predicted at the beginning of the year.

Stephanie Moore: And the next question comes from Stephanie Moore with Jeffreys. Your line is open.

Speaker Change: And the next question comes from Stephanie Moore with Jefferies. Your line is open.

Stephanie Moore: Hi, good morning. Thank you. I was hoping to touch a bit on maybe some of the inflationary pressures that you're seeing and how that's trended as the year has progressed, you know, labor trends, repair and maintenance, and the likes of that, as well as maybe some of the other self-help initiatives that you have kind of in place that are helping to offset some of the cost pressures. Thanks.

Speaker Change: Okay.

Stephanie Moore: Hi, good morning, Thank you.

Stephanie Moore: I was hoping you could touch up.

Stephanie Moore: I was hoping you could touch a bit on maybe some of the inflationary pressures that youre seeing and how that's trended as the year has progressed labor trends repair and maintenance and the likes of that.

Stephanie Moore: As well as maybe some of the.

Stephanie Moore: Other self help initiatives that you have kind of in place that are helping to offset some of the some of the cost pressures.

Unknown Executive: Great. So, I think inflation has been a little stickier than we had predicted at the beginning of the year. And we're seeing trends, you know, generally flattish through the spring, not decreasing what we're seeing inflation hang, you know, north of 5%, roughly in our business. We have seen labor tail off a bit over the last year plus, and we've seen a lot of stability in our labor force, and our training programs, our recruiting programs, everything we're doing to try to attract great people to our organization is helping there. And the fight for talent does seem to be a little bit lower today.

Speaker Change: Great. So I think inflation has been a little stickier than we had predicted at the beginning of the year and we're seeing trends generally flattish through the spring.

John Casella: And we're seeing trends, you know, generally, the flatish through the spring, not decreasing. What we're seeing inflation hang, you know, north of 5% roughly in our business. We have seen labor tail off a bit over the last year plus, and what we've seen a lot of stability in our labor force and our training programs, our recruiting programs, everything we're doing to try to attract great people to our organization are helping there. And the fight for talent does seem to be a little bit lower today, but there are some areas that are really quite sticky on the maintenance side: parts, tires, outside repairs on the landfill side, almost everything to do with landfills and fish in the capital side.

Stephanie Moore: Not decreasing what we're seeing inflation heng north of 5% roughly in our business.

Speaker Change: We have seen labor tail off a bit over the last year, plus we've seen a lot of stability in our labor force in our training programs, our recruiting programs everything we're doing to try to attract great people to our organization are helping there.

Stephanie Moore: And the fight for talent does seem to be a little bit lower today, but there is some areas that are really quite sticky.

Unknown Executive: But there are some areas that are really quite sticky. On the maintenance side, parts, tires, outside repairs, on the landfill side, almost everything to do with landfills, especially on the capital side, we've seen, you know, heightened inflation remain in the business. As we've talked about a lot of times in the past, we can be nimble from a pricing standpoint as an organization. And as we look at these inflation trends through the spring, they are a little bit higher than we expected.

Stephanie Moore: On the maintenance side.

Speaker Change: Arts tires outside repairs.

Stephanie Moore: The landfill side, almost everything to do with landfills, especially on the capital side we've seen.

John Casella: And we've seen, you know, high inflation would remain into the business as we talked about a lot of times in the past. So we can be nimble for a pricing standpoint as an organization. And as we look at these inflation trends through the spring, there are a little bit higher than we expected. And we're starting to course-correct uncertain segments of the business with our pricing programs and advancing a bit more price for the second half of the year, which we hope gets that spread a little bit stronger through the last six months of the year.

Stephanie Moore: Inflation remained into the business as we've talked about a lot of times in the past so.

Stephanie Moore: We can be nimble from a pricing standpoint, as an organization and as we looked at these inflation trends through that spring they are a little bit higher than we expected and we are starting to course correct.

Unknown Executive: And we're starting to course correct on certain segments of the business with our pricing programs and advancing a bit more price to the second half of the year, which we hope gets that spread a little bit stronger through the last six months of the year.

Stephanie Moore: Segments of the business with our pricing programs and advancing a bit more price to the second half of the year, which we hope gets that spread.

Stephanie Moore: It'll be stronger through the last six months of the year.

Ned Coletta: Great, appreciate the color. And then, you know, maybe switching to your recycling business, you have a pretty robust recycling operations. I was curious if you're contemplating any investments or potential expansions, just given the potential of maybe EPR being implemented in certain states within the Northeast. Or if you've kind of walked a few kind of contemplated any changes to your recycling business, if EPR does go into fact, does in fact go into effect, thanks. So a couple of things there. I think that, you know, from a practical standpoint, we continue to invest in the infrastructure similar to what we did in Boston.

Stephanie Moore: Great, I appreciate the color. And then, you know, maybe switching to your recycling business. You have a pretty robust recycling operation. I was curious if you're contemplating any investments or potential expansions, just given the potential of maybe EPR being implemented in certain states within the Northeast, or if you've kind of walked away, if you've kind of contemplated any changes to your recycling business if EPR does go into effect.

Speaker Change: Great I appreciate the color and then maybe switching to your.

Speaker Change: Recycling.

Speaker Change: Do you have a pretty robust recycling operations.

Speaker Change: Curious, if youre contemplating any investments or potential expansion just given the potential of maybe EPR being implemented in certain states in the northeast.

Speaker Change: Or can you kind of walk if you've kind of contemplated any.

Speaker Change: Changes to your recycling business of EPR dovetail into that does in fact go into effect.

Speaker Change: So a couple of things there I think that from a practical standpoint, we continue to invest in the infrastructure.

Stephanie Moore: Or to what we did in Boston.

Ned Coletta: You know, higher quality, more significant throughput. We're doing the same thing with our Willemannic facility, and then we'll be doing the same retrofit of our facility in Pennsylvania as well. So we'll continue to invest in the infrastructure as, you know, the government relations side of the business really understands, you know, what the drivers are going to be from an EPR standpoint. Each state is somewhat different. There's a little bit of activity in a couple of states now. And government relations will continue to stay abreast of what's going on there and certainly will be involved in trying to help shape that.

Speaker Change: Air quality more significant throughput.

Speaker Change: Doing the same thing with their Willimantic facility and then we will be doing the same.

Speaker Change: Retrofit of our facility in Pennsylvania, as well so we will continue to invest in the infrastructure.

Speaker Change: Yes.

Speaker Change: The government relation side of the business really understands.

Stephanie Moore: What what the drivers are going to be from an EPR standpoint. Each state is somewhat different there is a little bit of activity in a couple of states now.

Stephanie Moore: Our government relations will continue to.

Stephanie Moore: Stay abreast of what's going on there and certainly will be involved in trying to help shape that yeah, I think from a pump.

Ned Coletta: Yeah, and I think from a public policy standpoint, we would like to see more recycled content legislation versus EPR. That there has been, you know, 30 plus years of substantial investment in recycling infrastructure across the country and, you know, the sellers invested significantly. So setting up, you know, parallel recycling systems really don't yield a lot of benefit. We've seen that over the years in model build states, you're really just creating a new tax on society versus driving additional sustainability or circularity. So from our vantage point, I think the recycled content movement is much more exciting and could have a very positive impact on the industry, additional investment, and really the environment, which is what we're all trying to do.

Unknown Executive: I think from a public policy standpoint, we would like to see more recycled content legislation versus EPR. There have been, you know, 30 plus years of substantial investment in recycling infrastructure across the country, and, you know, Casella has invested significantly. So setting up parallel recycling systems really doesn't yield a lot of benefit. We've seen that over the years in bottle bill states, you're really just creating a new tax on society versus driving additional sustainability or circularity.

Stephanie Moore: The policy standpoint, we would like to see more recycled content.

Speaker Change: Legislation versus ETR that there has been 30 plus years of substantial investment and recycling infrastructure across the country and to sell it invested significantly so setting up parallel recycling systems really don't yield the benefit we've seen that over the years in Bajo del.

Stephanie Moore: States, you're really just creating a new caps on society versus driving additional sustainability, our circularity, so from our vantage point I.

Unknown Executive: So from our vantage point, I think the recycled content movement is much more exciting. It could have a very positive impact on the industry, additional investment, and really the environment, which is what we're all trying to do.

Speaker Change: Inc. In recycled content.

Speaker Change: Movement, it's much more exciting and could have a very positive impact on the industry additional and thats been really the environment, which is what we're all trying to do.

Stephanie Moore: Really helpful, makes sense. Thanks, guys. Thank you.

Stephanie Moore: Really helpful. It makes sense. Thanks, guys.

Speaker Change: Really helpful makes sense thanks, guys.

Faiza Alwy: We're welcome. And the next question comes from Faiza. Always with George Bancroft. Your line is open. Yes, hi. Good morning. Thank you so much. Good morning.

Speaker Change: Thank you welcome.

Fiza Aoui: And the next question comes from Fiza Aoui with Dorche Bank. Your line is open.

Speaker Change: And the next question comes from Faiza <unk> with.

Speaker Change: Deutsche Bank your line is open.

Fiza Aoui: Yes. Hi. Good morning. Thank you so much.

Faiza: Yes, hi, good morning. Thank you so much good morning.

Fiza Aoui: Good morning. So I wanted to ask you something.

Faiza Alwy: So I wanted to ask about C&D volume. I do have mentioned the impact from the landfill closures. I'm curious if there's also a macro overlay. There's a bunch of the other companies I've been talking about, you know, sewer volumes generally. So just curious if you're seeing a macro impact there as well. And if volumes were essentially in line with your expectations. So, you know, the Northeast is predominant a lot. We rely a lot less upon construction activity as a business. We don't see the big ebbs and flows from boom bus from construction. We're usually a bit more slow and steady.

Faiza: I wanted to talk about.

Fiza Aoui: C&D volumes, right, you've mentioned the impact of the landfill closures. I'm curious if there's also a macro overlay. There are a bunch of other companies that have been talking about, you know, store volumes generally. So just curious if you're seeing a macro impact there as well, and if volumes were essentially in line with your expectations.

Faiza: C&D volume JV, you mentioned the impact from the landfill closures I'm curious if there is also a macro overlay.

Speaker Change: A bunch of the other companies have been talking about solar.

Speaker Change: Volumes generally.

Speaker Change: So just curious if you're seeing a macro impact there as well I'll, let Nick volumes were essentially in line with your expectations.

Unknown Executive: So, you know, the Northeast is predominantly a lot; we rely a lot less upon construction activity as a business. We don't see the big ebbs and flows from boom buffs from construction. We're usually a bit more slow and steady.

Speaker Change: So the northeast is predominantly a lot we rely a lot less upon construction activity as a business, we don't see the big ebbs and flows with boom bus from construction, where usually a bit our slow and steady with all that being said.

Unknown Executive: With all that being said, we have seen less spending on large construction projects, and infrastructure projects in the Northeast, and it's probably showing up a little bit more in the special waste streams, where we see large contaminated soil projects, and cleanup projects just down for the last 12 to 18 months. They can be a little bit, timing is sometimes hard to predict, and our pipeline remains really robust, where there are a number of projects out there that are funded and just waiting to start that we haven't seen initiate over the last six plus months.

John Casella: With all that being said, we have seen less spending on large construction projects, infrastructure projects in the Northeast. And it's probably showing up a little bit more in the special waste streams where we see large contaminated soil projects, cleanup projects just down for the last 12 to 18 months. They can be a little bit timing, sometimes hard to predict. And our pipeline remains really robust, where there's a number of projects out there that are funded and just waiting to start. And we haven't seen initiate over the last six plus months. So there is some built-up demand there.

Faiza: We have seen less spending on large construction projects infrastructure projects in the northeast and it's probably showing up a little bit more in the special waste streams, where we see large contaminated soil projects cleanup projects just down for the last 12 to 18 months.

Speaker Change: They can be a little bit timing.

Speaker Change: Timing is sometimes hard to predict and our pipeline remains really robust where theres a number of projects out there that are funded and just waiting to start and we havent seen initiate.

Unknown Executive: So there is some built-up demand there. But it feels like, with some of the slowing of the economy and just uncertainty in the economy, some of those projects have not started. But as I said earlier, you know, we've consciously tried over the last decade to remix our business to have less construction and demolition exposure. So we have less in our hauling business today. We have less in our landfills and in our transfers. So yes, it's been a bit of a headwind, but it's definitely not something that we're trying to do, that we see as much volatility as you can in other parts of the economy.

Speaker Change: Over the last six plus months. So there is some built up demand there it feels like with some of the slowing of the economy and just uncertain key in the economy. Some of those projects have not started but as I said earlier.

John Casella: It feels like, with some of the slowing of the economy and just uncertainty in the economy, some of those projects have not started. But, as I said earlier, you know, we've consciously, over the last decade, tried to remix our business to have less construction demolition exposure. So we have less in our hauling business today. We have less in our landfills, our transfers. So yes, it's been a bit of a headwind, but it's definitely not something that we're trying, that we see as much volatility as you can in other parts of the country.

Speaker Change: Consciously over the last decade try to remix our business to have less construction.

Faiza: Demolition exposure, so we have less in our hauling business today, we have less at our landfills are transfers. So yes, it's benefited a headwind, but it's definitely not something that were trying.

Speaker Change: Yes, we see as much volatility as you can in other parts of the country.

John Casella: Great, thank you. And then just on the, you know, you mentioned sort of efficiency initiatives and, you know, you mentioned how you're sort of more excited about that given the MNA. So give us a sense of, you know, how quickly can you roll through those initiatives with an MNA. Maybe we can imagine what the margins might be on the, just given your guide on the sales and, and, and EBITDA on the new acquisitions, but how quickly can you, you know, implement some of those initiatives and, you know, get, get, get. Normally, those synergies really come over a couple of year period of time.

Fiza Aoui: Great, thank you. And then just on the efficiency initiatives and, you know, you mentioned how you're sort of more excited about that given the M&A. So give us a sense of, you know, how quickly you can roll through those initiatives with an M&A? Maybe we can imagine what the margins might be on the, just given your guide on the sales and EBITDA on the new acquisitions. But how quickly can you, you know, implement some of those initiatives and, you know, get things done?

Speaker Change: Great. Thank you.

Speaker Change: And then just on the.

Speaker Change: You mentioned sort of efficiency initiatives.

Speaker Change: And <unk>.

Speaker Change: You mentioned, how youre sort of more excited about that given the M&A it'll give us a sense of.

Speaker Change: How quickly can you roll through those initiatives.

Speaker Change: And then M&A and maybe we can imagine what the margins might be on the.

Speaker Change: Just given your guide on the sales and EBITDA on the new acquisitions, but how quickly can you.

Speaker Change: Some of those initiatives and.

Speaker Change: Okay.

Speaker Change: Okay.

Unknown Executive: Normally those synergies really come over a couple of years of time. In a lot of cases, there are contracts in place from a disposal standpoint that have to run their course. There are other organizational agreements in place, you know, from a vendor perspective, etc, etc. So it takes You know, you begin to see a bit, or obviously in the first 12 months, but it'll be a two-year period of time for the majority of the synergies to come in.

Faiza: Normally those synergies really come over.

John Casella: In a lot of cases, there are contracts in place from the disposal standpoint that have to run their course. There are other, you know, organizational agreements in place, you know, from a vendor perspective, etc., etc. So it takes, you know, you begin to see a bit, or obviously in the first 12 months, but it'll be a two, two-year period of time for the majority of the synergies to come in. In delays and truck deliveries are definitely weighing on our ability to get synergies at the points we want. We're trying to do as much as we tend through some of our vendor relationships, but say in the mid-Atlantic, you know, we're on track with our model, with the assets we purchased businesses from GFL last year. But we could be even a little further along if we've gotten some of our automated side load trucks, and we can start to deploy more efficiency into that market.

Speaker Change: A couple of year period of time and a lot of cases, there are contracts in place from a disposal standpoint that have to run their course.

Speaker Change: There are other organs.

Speaker Change: Organizational.

Speaker Change: <unk> in place.

Speaker Change: From a vendor perspective et cetera et cetera. So it takes.

Speaker Change: You begin to see a bit obviously in the first 12 months, but it will be a two two year period of time.

Speaker Change: For the majority of the synergies to come in and delays and truck deliveries are gathering weighing on ability to get synergies points, we want viewpoint.

Unknown Executive: Delays in truck deliveries are definitely weighing on our ability to get synergies at the pace we want. We're trying to do as much as we can through some of our vendor relationships, but say in the mid-Atlantic, we're on track with our model with the assets we purchased businesses from GFL last year, but we could be even a little further along if we'd gotten some of our automated side load trucks so we can start to deploy more efficiency into that market. It will come over time, and we've got great opportunities, but it would be nice to be able to get truck deliveries a little faster.

Speaker Change: We're trying to do as much as we can through our some of our vendor relationships.

Speaker Change: <unk> Atlantic.

Speaker Change: We're on track with our model with the assets, we purchase businesses from GSL last year, but we could be even a little further along if we've gotten some of our automated sideload tracks and we can start to deploy more efficiency into that market. It will come over time, and we've got great opportunities, but it'd be nice to be able to get truck delivery.

John Casella: It will come over time, and we've got great opportunities, but it'd be nice to be able to get truck deliveries a little fast.

Speaker Change: A little faster.

Unknown Executive: Thank you; appreciate it. You're welcome.

Fiza Aoui: Great. Thank you. I appreciate it.

Speaker Change: Great. Thank you I appreciate that.

Speaker Change: Youre welcome.

Michael Feniger: And our next question comes from Michael Feniger with Bank of America. Your line is open. Hey guys, yeah, thank you. Hey everybody. I know you touched on it.

Michael Feniger: And our next question comes from Michael Feniger with Bank of America. Your line is open.

Speaker Change: And our next question comes from Michael Feniger with Bank of America. Your line is open.

Michael Feniger: Hey guys, yeah, thank you for taking my question. Hey everybody, I know you touched on it. Do you mind just giving us a sense of where you think the leverage ends this year? And just with such an active pipeline, Ned, can you kind of talk to us about, you know, is it more on the smaller tuck-in side, larger?

Michael Feniger: Hey, guys, yes. Thank you for taking my question Hey, everybody.

Speaker Change: I know you've touched on it.

Michael Feniger: Do you mind just giving us a sense of where you think the leverage ends this year? And just with such an active pipeline, can you kind of talk to us about, you know, is it more on the smaller tuck inside larger, just any contact there would be helpful? Yeah, so the pipeline kind of stands many different opportunities from excellent tuck-in several million dollars to tens of million dollars of revenue in existing markets to additional adjacent fees that will either drive the expansion of the platform or maybe even some level of vertical integration. So there's a wide mix of opportunities that we're working on.

Michael Feniger: Do you mind, just giving us a sense of where you think the leverage and this year and just with such an active pipeline.

Michael Feniger: Just any context there would be helpful.

Speaker Change: Can you kind of talked us about is it.

Speaker Change: More on the smaller tuck inside larger just any context, there would be helpful.

Edmond Coletta: Yeah, so the pipeline kind of spans many different opportunities from excellent tuck-in opportunities of several million dollars to tens of millions of dollars of revenue in existing markets to additional adjacencies that will either drive the expansion of the platform or maybe even some level of vertical integration. So there's a wide mix of opportunities that we're working on. You know, as always, we never guide to acquisitions we haven't completed yet. As we said earlier, there are a few things we're working on right now that could potentially cross over later this year into next year. But it's a little early to claim success on any of them yet. There are always a lot.

Speaker Change: Yes, so the pipeline.

Speaker Change: <unk> many different opportunities from excellent tuck in several million dollars to tens of million dollars of revenue in existing markets to additional adjacencies that will either drive the expansion of the platform or maybe even some level of vertical integration. So theres a wide mix of opportunities that we're working on.

Bradford Helgeson: You know, as always, we never guide to acquisitions. We haven't completed yet. As we said earlier, there's a few things we're working on right now that could potentially cross later this year into next year, but it's a little early to, to, you know, claim success on any of them. It's always a lot of work to get more. We just, we just did. Yeah, we just did. Yeah, you can point that I mean that that was a lot of months of work on and it really excellent.

Speaker Change: As always we never guide to acquisitions, we haven't completed yet as we said earlier, there's a few things we're working on right now that that could could potentially cross later this year into next year, but it's a little early to tell.

Speaker Change: Six <unk>.

Speaker Change: Same success on any of them that is always a lot of work to get what we just said we just we just did it did happen.

John Casella: We just did. Yeah, we just did have to. Yeah, good point, John. I mean, that was a lot of months of work and really excellent.

John Casella: Good point John.

John Casella: That is a lot of months of work.

Bradford Helgeson: I think, Brad, you said Proforma. Where are we on leverage-wise? Yeah, we're about 2.9 times proforma. So, you know, it's difficult to predict, obviously, where we'll be by year end because it's going to be a function of the M&A activity. But, you know, the company has been very clear for a long period of time on how we intend to manage the balance sheet. You know, we intend to keep leverage. It may go over, you know, over a short period of time.

Bradford Helgeson: I think Brad, you said Pro forma. Where are we at leverage wise? Yeah, we're about 2.9 times pro forma. So, you know, difficult to predict. Obviously, where will be by year end because it's going to be a function of the MNA activity, but you know, the company has been very clear over a long period of time on how we intend to manage the balance sheet. You know, we intend to keep leverage, and they go over, you know, over a short period of time, but over time, you know, we're going to look to keep leverage in the area three times or below.

Brad Helgeson: And it really accelerated I think Brad you said pro forma where are we at leverage yes, we're about two nine times pro forma.

Brad Helgeson: So.

Speaker Change: Difficult to predict obviously, where it will be by year end, because it's going to be a function of the M&A activity, but the company has been very clear over a long period of time on how we intend to manage the balance sheet.

Speaker Change: We intend to keep leverage it may go over.

Bradford Helgeson: But over time, you know, we're going to look to keep leverage in the area of three times or below. You know, that remains the plan. We use some of the dry powders, certainly, to close LMR and Whitetail. But as I mentioned, you know, we still have some dry powder available for the next deal that comes up in the pipeline. So, you know, we're in a good position to keep executing on what's in front of us.

Speaker Change: For over a short period of time, but over time, we're going to look to keep leverage in the area of three times or below.

Bradford Helgeson: You know, that remains the plan. We use some of the drive powders certainly to close LMR and white tail, but as I mentioned, you know, we still have some drive power available for the next deal that come up in the pipeline. So, you know, we're in a good position to keep, to keep executing on what's in front of us. So, that's helpful.

Speaker Change: That remains the plan we used some of the dry powder is certainly to close LMR and white tail, but as I as I mentioned, we still have some dry powder available for the next deal that come up in the pipeline. So.

Speaker Change: We're in a good position to keep to.

Brad Helgeson: To keep executing on what's in front of us.

Michael Feniger: That's helpful. And just with you guys doing these acquisitions, you know, in growth mode, I'm curious, I'm not asking for a guide to 2025, but do you feel like your CapEx intensity is going up as you guys kind of build out this footprint and have projects? I'm just directly kind of wondering about that CapEx.

Bradford Helgeson: And just with you guys doing these acquisitions, you know, in growth mode, I'm curious. I'm not asking for a guide on 2025. But do you feel like your capex intensity? Is it going up as you guys kind of are building out this footprint and have projects just directly kind of wondering on that capex? I think it's actually, so setting aside this wrap, setting aside the upfront capex that we isolate in the non-GAAP metric, setting that aside over time, the capex intensity of the business actually should come down. And I alluded to this earlier, you know, some of the changes with the shifting mix in the business.

Speaker Change: That's helpful and just with you guys doing these acquisitions.

Speaker Change: In growth mode, I'm curious I'm not asking for a guide on 2025, but do you feel like Youre Capex intensity is it going as you guys kind of are building out this footprint and have projects just directionally kind of wondering.

Speaker Change: On that Capex.

Bradford Helgeson: I think it's actually, so setting aside, this is Brad, setting aside the upfront CapEx that we isolate in the non-gap metric, setting that aside over time, the CapEx intensity of the business actually should come down. And I alluded to this earlier, some of the changes with the shifting mix of the business. As we're growing geographically, we're predominantly acquiring collections. And so those have much less capital intensity than landfills. So over time, as a, you know, whatever your chosen metric percentage of revenue, you know, you'll see the CapEx trend lower.

Speaker Change: I think it's actually so setting that aside of the sprouts setting aside the.

Speaker Change: Kind of upfront capex.

Speaker Change: We isolate in the non-GAAP metric setting that aside over time, the capex intensity of the business that you should come down and I alluded to this earlier some of the changes with the shifting mix of the business.

Bradford Helgeson: As we're growing geographically, we're predominantly acquiring collection businesses. And so those have much less capital intensity than the antials. So, over time, whatever you're chosen metric percentage revenue, you'll see the capex trend lower. And one of the things we try to do when we buy businesses within our business plans is to execute pretty quickly as we can to get fleet upgrades, facility upgrades, and other areas like that. So it is always a little heightened. All those upgrades are always considered in our performance, and we try to give visibility on them as well.

Speaker Change: As we're growing geographically, we're predominantly acquiring collection businesses.

Speaker Change: So those have much less capital intensity than the landfills.

Speaker Change: So over time as whatever.

Speaker Change: Your chosen metric percentage of revenue.

Unknown Executive: And one of the things we try to do when we buy businesses within our business plan is execute pretty quickly as we can to get fleet upgrades, facility upgrades, other areas like that. So it is always a little heightened. All those upgrades are always considered in our pro formas, and we try to give visibility on them as well in our financial plan.

Speaker Change: You'll see the Capex trend lower and one of the things we tried to do when we buy businesses within our business plans to execute pretty quickly as we can to get fleet upgrades facility upgrades.

Speaker Change: Other areas like that so it is always a little heightened at.

Brad Helgeson: All of those upgrades are always considered in our pro forma is and we tried to give visibility on them as well in our financials.

Michael Feniger: Perfect. And just lastly, like the price versus cost spread, I think you've talked about that 100 bps. I mean, just a kind of bigger picture as we're going to maybe next year, is it, do you think to maintain that, is it going to have to push a little bit more on price because we're not seeing that cost deflation yet? Or do you see some buckets where you maintain that spread because you're looking at your cost profile and you see, actually, you know, either comp wise, or the trend is that you are starting to see maybe some deflation, you know, as we start going into 2025?

Bradford Helgeson: The Price First Cost Spread I think you talked about the 100 bips. I mean just a kind of bigger picture as we're going into maybe next year. Do you think to maintain that? Is it have to push a little bit more on price because we're not seeing that cost deflation yet? Or do you see some buckets where you maintain that spread because you're looking at your cost profile. You see, actually, either comp wise or the trend is that you are starting to see maybe some deflation as we start going into 2025? Yeah, so the cost has been stable.

Speaker Change: Perfect and then just lastly, like the price versus cost spread I think you've talked about that one.

Speaker Change: 100 bps I mean, just.

Speaker Change: Kind of bigger picture as we're going into maybe next year is it do you think to maintain that is it have to push a little bit more on price because we're not seeing that cost deflation, yet or do you see some buckets, where you maintain that spread because youre looking at your cost profile and you see actually either comp wise or the trend is that you are starting to.

Speaker Change: Maybe some deflation.

Speaker Change: As we start going into 2025.

Unknown Executive: Yeah, so the cost has been stable. It came down, you know, materially over the last 18 months, and in the last six months, it's been stable, but a little bit higher than we had budgeted. And I said this earlier, but I'll repeat it, you know, we have a lot of flexibility from pricing fees in our book of business, and we really took a good, hard look this spring. Did our pricing programs match where inflation was in the business, and did we need any course corrections? We're really lucky in that regard.

Speaker Change: Yes.

Bradford Helgeson: They came down, you know, materially over the last 18 months, and in the last six months it's been stable but a little bit higher than we had budget. And I said this earlier about repeated. You know, we have a lot of flexibility from pricing fees and our book of business, and we really took a good heart and looked at spring. Did our pricing programs match where inflation was in the business, and did we need a course corrections? And we're really lucky in that regard. We're not just dependent upon CPI, length metrics, and contracts. We can be very flexible and nimble.

Speaker Change: Cost has been stable they came down materially over the last 18 months and in the last six months has been stable, but a little bit higher than we had budgeted and I said this earlier, but I'll repeat it.

Speaker Change: Yes, we have a lot of flexibility from pricing fees in our book of business and we really took a good hard look this spring.

Speaker Change: Our pricing programs snacks, where inflation was in the business and if we need any course corrections and we're really lucky in that regard, we're not just dependent upon CPI linked metrics and contracts, we can be very flexible and nimble.

Unknown Executive: We're not just dependent upon, you know, CPI link metrics and contracts. We can be very flexible and nimble, and you know, late in the second quarter, early into the third quarter, we did course correct a little bit with some of our pricing programs for later in the year because we thought we were, you know, our inflation metric was slightly higher than we had expected. So, you know, we expect that spread to actually increase a little bit into the second half of the year right now.

Bradford Helgeson: And you know, in the late in the second quarter early into the third quarter, we did course-correct a little bit with some of our pricing programs for later in the year because we thought we're, you know, our inflation metric was slightly higher than we had expected. So, you know, we expect that spread to actually increase a little bit into the second half of the year right now. Perfect. Thank you.

Speaker Change: Late in the second quarter early into the third quarter. We did of course, correct, a little bit with some of our pricing programs for later in the year, because we thought we were.

Speaker Change: Inflation metric was slightly higher than we had expected. So we expect that spread to actually increase a little bit into the second half of the year right now.

Speaker Change: Perfect. Thank you.

Tyler Brown: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. And the next question comes from Tyler Brown with Raymond James; your line is open. Yeah, hey, thanks for the follow-up here.

Speaker Change: Thank you <unk>.

Speaker Change: Minder to ask a question. Please press star one on your telephone and wait for your name to be announced.

Michael Feniger: Thank you. And the next question comes from Tyler Brown with Raymond James. Your line is open.

Speaker Change: And the next question comes from Tyler Brown with Raymond James Your line is open.

Tyler Brown: Yeah, hey, thanks for the follow up here. Hey, this actually kind of goes back to Michael's question a little bit around CapEx. And it's a little bit on the cash flow ad backs. So I totally get why you add them back, but they are cash out the door. And I mean, next year, shouldn't most of those ad backs kind of fall off, like the FLSA payment, Southbridge, McKean, the veneer failure? Maybe some of the acquisition spend stays in there, but shouldn't the quantum of those ad backs start to go down?

Tyler Brown: Yeah, Hey, thanks for the follow up here Hey, this is actually kind of goes back to Michael's question, a little bit around capex and it's a little bit on the cash flow add backs. So I totally get why you add them back, but they are cash out the door and I mean next year shouldn't most of those add backs kind of fall off like the.

Tyler Brown: Hey, this actually kind of goes back to Michael's question a little bit around cat facts. And it's a little bit on the cash flow addbacks. So I totally get why you add them back, but they are cash out the door. And I mean, next year shouldn't most of those addbacks kind of fall off like the FLSA payment, Southbridge, McKinney, the veneer failure. Maybe some of the acquisition spend stays in there, but shouldn't the quantum of those addbacks start to go down. Yeah, yeah, I mean, you listed some of the addbacks; those will not recur, certainly.

Speaker Change: The LSA payments outbreak mckean, the veneer and failure.

Speaker Change: Some of the acquisition expense saves in there, but shouldnt the quantum of those add back start to go down.

Bradford Helgeson: Yes, yeah, I mean, you listed some of the ad backs, those will not recur, certainly. I think as the company is inquisitive and continues to grow, we'll be making upfront capital expenditures that will continue to categorize the way we have, you know, as post-acquisition CapEx. So, you know, where that comes out for 2025 will be a function of the acquisition activity. You know, where we sit today, certainly, though, on that line in particular, I would expect that number to be materially lower in 2025 than it was this year. You know, just with GFL and, you know, the Willimantic MRF retrofit are in that number. So it is a chunkier number, certainly this year, than we might expect going forward.

Speaker Change: Yes, Yes, I mean, you listed some of the add backs those.

Speaker Change: Those will not recur certainly I think as the company.

Tyler Brown: You know, I think as the company is positive and continues to grow, you know, we'll be making upfront capital expenditures that will continue to categorize the way we have, you know, as post-acquisition catbacks. So, you know, where that comes out for 2025 will be a function of the acquisition activity. You know, where we sit today, certainly, though on that line in particular, I would expect that number to be materially lower in 2025 than it was this year. You know, just with GFL and you know, the will, romantic, murk retrofitted in that number. So it is a chunk of your number certainly this year than we might expect on for.

Speaker Change: As acquisitive and continues to grow we will be making upfront capital expenditures that will continue to.

Speaker Change: Youre categorize the way we have post.

Speaker Change: Physician Capex.

Speaker Change: <unk>.

Speaker Change: Where that comes out for 2025 will be a function of the acquisition activity, where we sit today certain way.

Speaker Change: Though on that line in particular, I would expect that number to be materially lower in 2025 than it was this year just with Tfl.

Speaker Change: The willimantic.

Speaker Change: Murph retrofitted in that number.

Speaker Change: So it is a chunkier numbers certainly this year than we might expect going forward.

Tyler Brown: Yeah, I'm not the brightest guy. So what is the difference between the $46.5 million of acquisition CapEx and the $17 million of cash outlays from acquisition activities?

Bradford Helgeson: Yeah, I'm not the brightest guy. So what is the difference between the 46 and a half million of acquisition catbacks and the 17 million of cash outlates from acquisition activity. Oh, so yeah, so a little, a little definitional topic here. So, the, the, the CapEx for for acquisitions is, you know, just like it's acts, you know, it's new trucks, it's, it's the will of antic merph, as I said, it's facilities and things like that. The cash outweighs for acquisitions are the acquisition expenses. So legal due diligence, rebranding, things like that. That's just the cash outweigh associated with that, you know, okay.

Speaker Change: Yeah, I'm not the brightest Scott so what is the difference between the $46 5 million of acquisition capex into $17 million of cash outlays from acquisition activities.

Bradford Helgeson: Oh, yeah, so a little definitional topic here. So the capex for acquisitions is, you know, just like it sounds. You know, it's new trucks, it's the Willimantic MRF, as I said, it's facilities, it's things like that. The cash outlays for acquisitions are acquisition expenses, so legal, due diligence, rebranding, things like that. That's just the cash outlay associated with that P&L.

Speaker Change: Oh, yes, sorry.

Speaker Change: Definitional.

Speaker Change: Topic here so.

Speaker Change: The capex.

Speaker Change: For for acquisitions is.

Speaker Change: Just like in fact, its new trucks, it's the Willimantic murph as I said.

Speaker Change: Its facilities things like that the cash outlays for accuracy for acquisitions.

Speaker Change: The acquisition expenses.

Speaker Change: Legal due diligence rebranding things like that that's just the cash outlay associated with that P&L expense.

Tyler Brown: Okay. And then John, on Southbridge, is there any update there? Is there any chance of a reopening of that site?

John Casella: And then John, on Southbridge, is there any update there? Is there any chance of a reopening of that side? You know, I would say no, Tyler. I think that, you know, we're in a process and have closed that site out, and I would not anticipate anything coming back at Southbridge. Okay. I thought that was maybe a, maybe an outside chance of one point.

Speaker Change: Okay, and then John on South Bridge is there any update there is there any chance of a reopening of that side.

John Casella: You know, I would say no, Tyler. I think that, you know, we're in the process and have closed that site out, and I would not anticipate anything coming back at Southbridge.

Speaker Change: I would say no Tyler I think that.

Speaker Change: We're in the process.

Speaker Change: Have closed that slide out and I would not anticipate.

Speaker Change: Anything coming back.

Tyler Brown: Okay, okay. Thought that was maybe an outside chance at one point. And then last thing, Ned, so I just get...

Speaker Change: South bridge.

Speaker Change: Okay I thought that was maybe maybe outside chance at one point and then last thing.

Tyler Brown: And then last thing, so I just get asked this question quite a bit. But are you guys seeing any impacts from increased lift, call it takeaway capacity in the market via rail? I mean, it sounds like rail volumes really are ramping up at some of your competitors, but then again, it sounds like a lot of those are internal times. But I'm just curious if you're seeing any impact on the fight for tons, you know, if you're, and it sounds like you're holding the line up price, but just any broader thoughts about that dynamic. Yeah, so this, as capacity comes out in market, the, it will never be linear, right?

Ned Coletta: I asked this question quite a bit, but are you guys seeing any impact from increased, let's call it, takeaway capacity in the market via rail? I mean, it sounds like rail volumes really are ramping up at some of your competitors, but then again, it sounds like a lot of those are internal tons. But I'm just curious if you're seeing any impact on the fight for tons, you know, if you're, it sounds like you're holding the line on price, but any broader thoughts about that dynamic.

Speaker Change: So I just get.

Speaker Change: Asked this question quite a bit but are you guys seeing any impacts from increased let's call. It takeaway capacity in the market via rail I mean, it sounds like rail volumes really are ramping up at some of your competitors, but then again it sounded like a lot of those are internal tons, but I'm just curious if youre seeing any impact on the fight for tons.

Speaker Change: It sounds like Youre holding the line on price, but just any broader thoughts about that dynamic.

Tyler Brown: Yeah, so as capacity comes out of the market, it will never be linear, right? So I mean, everyone's looking forward in their crystal ball trying to predict what will happen in the future.

Speaker Change: Yes.

Speaker Change: As capacity comes out of the market.

Speaker Change: It will never be linear right. So everyone is looking forward in their crystal ball and trying to predict what will happen in the future and as Youre well aware there are several sites that we will absolutely close in the next several years across northeast and there are several sites that theres some great risk they may close.

John Casella: So everyone's looking forward in their crystal ball, trying to predict what will happen in the future. And as you're well aware, there's several sites that will absolutely close in the next several years across Northeast. And there are several sites that there's some great risk they may close. So there are a couple of competitors in the marketplace who have been ramping up rail capacity coming out of the Northeast, whether it be to Ohio or to the Southern US. And I would say, in the recent past, that has weighed on volumes in the northeast. Now, when you look to the next couple of years, it probably doesn't because there's a lot of risk of additional capacity coming out of the market.

Ned Coletta: And as you're well aware, there are several sites that will absolutely close in the next several years across the Northeast, and there are several sites that there's some great risk that they may close. So there are a couple of competitors in the marketplace who have been ramping up rail capacity coming out of the Northeast, whether it be to Ohio or to the Southern U.S., and I would say in the recent past, that has weighed on volumes in the North.

Speaker Change: So there are a couple of competitors in the marketplace, who has been ramping up rail capacity coming out of the northeast whether it be to Ohio or to the southern U S and I would say in the recent past as weighed on volumes in the northeast now when you look to the next couple of years.

Ned Coletta: Now, when you look to the next couple of years, it probably won't because there's a lot of risk of additional capacity coming out of the market, much of the reason why we built up McKean, but, you know, it's not affecting our pricing, it's really not greatly affecting us losing tons. You know, MSW has been very stable at our site, but we haven't been growing as much either. It's probably more of a C&D impact than MSW.

Speaker Change: It probably does because theres a lot of risk of additional capacity coming out of the market.

John Casella: Much of the reason why we built a machine, but you know, it's not affecting our pricing. It's really not greatly affecting us losing tons. You know, MSW has been very stable at our sites, but we haven't been growing on more than C and D. C and D impact more than MSW. But it's definitely, you know, additional capacity has come online looking to the future. Some of that weight has been moving out of the Northeast has taken a tiny bit of pressure off the system in the near term, but you look out over the next couple of years.

Speaker Change: The reason why we built out Mccain, but.

Speaker Change: It's not affecting our pricing, it's really not greatly affecting us losing tons MSW has been very stable in our sites. So we haven't been growing.

Speaker Change: C&D CND <unk> impact.

Speaker Change: W.

Speaker Change: Definitely.

Speaker Change: The additional capacity has come online and looking to the future. Some of that waste has been moving out of the northeast has taken a tiny bit of pressure off the system in the near term, but you look out over the next couple of years.

John Casella: And there could be a lot of pressure still that depending upon which sites stay open and close.

Speaker Change: And.

Speaker Change: There could be a lot of pressure still that depending upon which sites stay open and close.

Tyler Brown: Yeah, perfect. Okay. Thank you so much, guys. Thank you.

Tyler Brown: Yeah, perfect. Okay. Thank you so much, guys.

Speaker Change: Yes, perfect. Okay. Thank you so much guys.

Timna Tanners: Our next question comes from Tim Nutaners with Wolf Research. Your line is now open. Yeah, hey, good morning, and happy Friday. Hey, good morning. So I want to just a little bit more detail. You expanded on a little bit in the script, some commercial strategies regarding, you know, maybe a system normal on, you know, mixed improvements from shedding, but I didn't know if there was anything a little bit new there about, you know, continuing to look for better mix and holding on. I'm pricing if that was new and incrementally. Or just the same.

Speaker Change: Thank you welcome.

Timna Tanners: Our next question comes from Timna Tanners with Wolf Research. Your line is now open. Yeah, hey, good.

Speaker Change: Our next question comes from Timna Tanners with Wolfe Research. Your line is now open.

Timna Tanners: Yeah, hey, good morning, and happy Friday. Hey, good morning.

Timna Tanners: Yeah, Hey, good morning, and happy Friday.

Timna Tanners: Hey, good morning.

Timna Tanners: So I wanted just a little bit more detail. You expanded on a little bit in the script from commercial strategies regarding, you know, maybe it's just a normal mix improvement from shedding, but I didn't know if there was anything a little bit new there about, you know, continuing to look for better mix and holding on on pricing if that was new and incremental or just the same. And similarly, questions on going after them, larger industrial customers, if that's new, and a little bit more detail on that.

Speaker Change: What's that.

Speaker Change: A little bit more detail you expanded on a little bit in the script from commercial strategies regarding.

Speaker Change: Maybe it's just the normal on mix improvement setting, but I didn't know if there is anything a little bit new thereabout.

Speaker Change: Turning to look for better.

Speaker Change: Next in holding the line on pricing, if that was new and incremental or just the Sam and similar questions on going after the larger industrial customers, if that's Neil and a little bit more detail.

John Casella: And similarly, questions on going after them larger industrial customers, if that's new and a little bit more detail on that. I think that, you know, clearly our perspective about the Mid Atlantic is there's a significant opportunity there, Timna, to take our resource solutions group into the industrial accounts. There's a nice opportunity there from a growth standpoint in terms of providing services. Waste and recycling services for some of those larger organizations that are trying to drive sustainability within their organizations. Our team is really well positioned for that, and there's significant opportunity in the mid Atlantic. I think, you know, as Ned said before, you know, some of the mixed change in Brad is natural because of the Mid Atlantic being more driven from a collection recycling standpoint as opposed to disposal.

John Casella: I think that, you know, clearly our perspective about the Mid-Atlantic is that there's a significant opportunity there to take our resource solutions group into the industrial accounts. There's a nice opportunity there from a growth standpoint in terms of providing services, waste and recycling services, for some of those larger organizations that are trying to drive sustainability within their organizations. Our team is really well positioned for that, and there's a significant opportunity in the Mid

Speaker Change: I think that.

Timna: Clearly our perspective about the mid Atlantic because there is a significant opportunity there timna too.

Speaker Change: Take our resource solutions.

Speaker Change: Group.

Speaker Change: Into the industrial accounts, there is a nice opportunity there from a growth standpoint in terms of providing services waste and recycling services for some of those larger organizations that.

Speaker Change: Are trying to drive sustainability within their oriented organizations. Our team is really well positioned for that and there is significant opportunity in the mid Atlantic.

John Casella: I think, you know, as Ned said before, some of the mixed change in Brad is natural because of the Mid-Atlantic being more driven from a collection recycling standpoint as opposed to disposal. So, on an overall basis, you know, we're very comfortable in the Mid-Atlantic. There's a substantial amount of disposal capacity in that market. I think there are 12 facilities that are in that market currently. So, the natural mix is going to change a little bit.

Speaker Change: As Ned said before some of the mix change and Brad is natural because of the mid Atlantic being more driven from a collection recycling standpoint as opposed to disposals. So on an overall basis.

John Casella: So, on an overall basis, you know, we're very comfortable in the Mid Atlantic. There's substantial amount of disposal capacity in their market. I think there's 12 facilities that are in that market currently. So the natural mix is going to change a little bit, you know, because of that. And you see it again; this quarter we traded price for volume in the subscription residential segment. We continue to see quality density in our market. So, you know, the profitability margins continue to improve there. So it's the right decision making in that segment.

Speaker Change: We're very comfortable in the mid Atlantic is substantial amount of disposal capacity in their market I think theres 12 facilities that are in that market currently so.

Brad Helgeson: The natural mix is going to change a little bit.

Ned Coletta: And you see it again this quarter. We traded price for volume in the subscription residential segment. We continue to see quality and density in our market. So you know the profitability margins continue to improve there. So it's the right decision to invest in that segment. But we are winning, to John's point, in segments like institutional, colleges, and universities, large industrial, and medical centers. Medical centers, these really complex accounts that require differentiated services and really are seeking to even have kind of a consulting approach where they have sustainability plans, circularity goals, and they're really partnering with our team to try to change some of their processes and make the right investments. That's one area we win really well. We're not winning on low cost.

Speaker Change: Because of that and you see it.

Speaker Change: Again this quarter, we traded price for volume in the subscription residential segment, we continue to see quality.

Speaker Change: <unk> in our market so.

Speaker Change: Profitability and margins continue to improve there exists a rate.

Speaker Change: The decision, making in that segment, but we are winning to John's point like in segments like institutional colleges and universities large industrial medical medical centers. These really complex accounts that require differentiated services and really are seeking to even have the paddock and <unk>.

John Casella: But we are winning to John's point, like in segments like institutional colleges and universities, large industrial, medical services, really complex accounts that require differentiated services and really are seeking to even have a kind of like a consulting approach where they have sustainability plans, circularity goals, and they're really partnering with our team to try to change some of their process and make the right investments. But that's one area we win really well. We're not winning on low cost. We're winning on service.

John Casella: Salting approach, where they have sustainability plan circularity calls and it really partnering with our team to try to change some of their process and make the right investments that that's one area, where we win.

Speaker Change: Well, we're not winning on LOE costs were winning on service.

Timna Tanners: Okay, that's helpful. Color things.

Timna Tanners: Okay, that's helpful, Culler. Thanks. And just a quick one to follow up on the M&A questions. Are you seeing any changes in what potential targets want, you know, with the price that they want, the multiple that they're looking for? Thanks again.

John Casella: And just a quick one to follow up on the M&A questions. Are you seeing any changes in what potential targets want to, you know, the price that they wanted, the multiple that they're looking for? Thanks again. I don't think that there's any changes. I think that multiples have been full multiples for, you know, I would say the last two years, but I wouldn't characterize it as a change from where things have been. And multiples have been full for at least two years now. You're an advocate two years. No real change there.

Speaker Change: Okay. That's helpful color. Thanks, Brian just a quick one to follow up on the M&A question are you seeing any changes in what potential targets we want to.

Speaker Change: But the price that they wanted the multiple that Theyre lucky part thanks again.

John Casella: I don't think that there are any changes. I think that multiples have been full multiples for, you know, I would say the last two years. But I wouldn't characterize it as a change from where things have been. Multiples have been full for at least two years, year and a half, two years.

Speaker Change: Yeah.

Speaker Change: I don't think that there is any changes I think that multiples have been full multiples for.

Speaker Change: I would say the last two years.

Speaker Change: But I wouldn't characterize it as a change from where things have been.

Speaker Change: Multiples have been full for for at least two years now.

Speaker Change: Year, and a half two years.

John Casella: No, no real change there. I think that the one thing that is very interesting for us is the number of opportunities that we have. Very significant. There's an awful lot of activity still, even with the growth that we've had over the last year and a half, there's still a significant amount of opportunity out there. And each time we go and look at our pipeline, it seems like the numbers don't change much in terms of the total opportunity that we're looking at.

John Casella: I think that the one thing that is very interesting for us is the number of opportunities that we have is very significant. There's an awful lot of activity still, even with the growth that we've had over the last year, year and a half. There's still a significant amount of opportunity out there. And each time we go and look at our pipeline, it seems like the numbers don't change much in terms of the total opportunity that we're looking at.

Speaker Change: No real change there I think that the one thing that is very interesting for US is the number of opportunities that we have is.

Speaker Change: Very significant there is an awful lot of activity still even with.

Speaker Change: The growth that we've had.

Speaker Change: Over the last year.

Speaker Change: Year and a half there is still a significant amount of opportunity out there.

Speaker Change: Each each time, we go and look at.

Speaker Change: At our pipeline it seems like the numbers don't change much in terms of the total opportunity that we're looking at.

Timna Tanners: Interesting. Okay. Thanks again.

Timna Tanners: Interesting. Okay. Thanks again.

Speaker Change: Interesting okay. Thanks again.

Unknown Executive: I show no further questions in the queue at this time.

John Casella: I have no further questions in the queue at this time. I would now like to turn the call back over to John Casella for closing remarks.

Speaker Change: Thank you.

Speaker Change: I show no further questions in the queue at this time.

John Casella: I would now like to turn the call back over to John Casella for closing remarks. Thank you for joining us this morning. Hope you have a great weekend and look forward to discussing our third quarter of 2024 earnings this fall. Thanks, everybody, and have a great weekend. Thank you.

Speaker Change: <unk> now like to turn the call back over to John Casella for closing remarks.

John Casella: Thank you for joining us this morning. I hope you have a great weekend and look forward to discussing our third quarter 2024 earnings this fall. Thanks, everybody, and have a great weekend.

John Casella: Thank you for joining us this morning.

John Casella: Have a great weekend and look forward to discussing our third quarter 2024.

John Casella: Earnings this fall, thanks, everybody and have a great weekend. Thank you.

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

Unknown Executive: This does conclude today's conference call. Thank you for participating.

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

Unknown Executive: You may now disconnect. Thank you. Thank you very much.

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