Q1 2025 Casella Waste Systems Inc Earnings Call
John Casella: I'm joined by John Casella, Chairman and Chief Executive Officer, Ned Coletta, our President, and Sean Steves, Senior Vice President and Chief Operating Officer of Solid Waste Operations.
I'm joined by John Casella, Chairman and Chief Exec.
Speaker Change: I can give officer, Ned coletta, our president and Shawn Senior Vice.
President and Chief operating officer of solid waste operations.
Operator: After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. But first, please be aware that various remarks we make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purposes of the Safe Harbor Provision under the Private Securities Litigation Reform Act of 1995. 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, which is on file with the SEC.
Speaker Change: After review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. But first please be aware that various remarks, we make about the company's future expectations plans and prospects constitute forward looking statements for the purposes of the safe Harbor provision under the private securities.
Speaker Change: <unk> 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 <unk>.
Speaker Change: Factors, including those discussed in the risk factors section of our most recently filed Form 10-K, which is on file with the SEC. In addition, any forward looking statements represent our views only as of today and should not be relied upon as representing our views and any subsequent date.
Operator: In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views in 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. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, May 2, 2025.
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 even if our views change. These forward looking statements should not be relied upon as representing our views as of any date subsequent Tuesday may 21.
Operator: Also, during this call, we'll be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort are included in our press release filed on Form 8-K with the SEC.
Speaker Change: Also during this call, we'll be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles reconciliations of the non-GAAP financial measures to the most.
Speaker Change: Correctly to comparable GAAP measures to the extent they are available without unreasonable effort are included in our press release filed on form 8-K.
John Casella: And with that, I will now turn the call over to John Casella to begin today's discussion. Thanks, Brian. First, a quick update.
Jonathan: And with that I will now turn the call over to Jonathan.
Jonathan: In today's discussion.
Thanks, Brian first a quick update Brad came down with a fever. This morning is out sick.
John Casella: Brad came down with a fever this morning and is out sick. So, I asked Ned to come out of CFO retirement for a few hours today. I just wanted to bring that to your attention.
Jonathan: So I asked a net amount of CFO retirement for a few hours today.
Jonathan: Just wanted to bring that to your attention.
John Casella: Welcome to our first quarter 2025 conference call. Before I review the highlights of the quarter, I'd like to take a minute to recognize several of our team members who exemplify our core values and put service to our communities first while operating in a safe and responsible manner. We're proud to have three drivers recognized under the National Waste and Recycling Association's Driver of the Year Program through their focus on safety, operational excellence, and being strong representatives of the solid waste industry. They are Frank Correll, Juan Carvalho, and Daniel Hale. In addition, Julia Parder, our Director of Business Transformation, was named to Waste 360's 40 Under 40, an annual award recognizing professionals under 40 whose work has made significant contributions to the industry.
Speaker Change: Welcome to our first quarter 2025 conference call before I review the highlights of the quarter I'd like to take a minute to recognize several of our team members, who exemplify our core values and good service to our communities first while operating in a safe and responsible manner. We're proud to have three drivers recognized.
Speaker Change: Under the National waste recycling Association as driver of the year program through their focus on safety.
Speaker Change: Operational excellence and being strong and representatives of the solid waste industry, there Frank Cornell one for Belo and Daniel Hail. In addition, Julia part of our director of business transformation was named two ways III Sixties 40 under 40, and Andrew Award recognizing professor.
Speaker Change: Under 40, whose work has made significant contributions to the industry. These employees will all be recognized at waste Expo next week.
John Casella: These employees will all be recognized at Waste Expo next week. At a company level, Casella was recognized on the Forbes 2025 America's Best Midsize Employers list. As I often discuss, our core values and culture are very important to us and are essential to everything we do, so it's gratifying to be acknowledged externally. Shifting to the results, as you saw in our earnings press release yesterday, we started the year strong with revenues, adjusted EBITDA, and adjusted free cash flow all up over 20% year-over-year in all records for the first quarter. The winter was particularly challenging in the Northeast this year, but we exceeded plan and delivered results, which was a function of great effort and execution across the organization.
Speaker Change: At a company level Casella was recognized on the Forbes 2025 of America's Best Midsized employers list as I, often discuss our core values and culture are very important to us and are central to everything we do so it is gratifying to be acknowledged externally.
Speaker Change: Shifting to the results as you saw.
Speaker Change: Our earnings press release yesterday, we started the year strong with revenues adjusted EBITDA and adjusted free cash flow all up over 20% year over year and all records for the first quarter. The winter was particularly challenging in the northeast this year, but we exceeded plan and delivered results, which was a function of <unk>.
Speaker Change: Great effort and execution across the organization operationally, we continue to make excellent progress on initiatives to expand the fleet automation onboard computing internalize incremental volume into our landfills.
John Casella: Operationally, we continue to make excellent progress on initiatives to expand fleet automation, onboard computing, internalize incremental volume into our landfills, and improve employee retention. Each are yielding results. These advancements are occurring at the same time as our ongoing integration efforts, which are successfully working through two years of record M&A. It's impressive and speaks very well of our entire team, who are truly going above and beyond. In the landfill business, we've reported organic growth exceeding 7% with positive contributions from both price and volume. We are focused on internalizing more of our own tons, which Ned will discuss in more detail in a few minutes.
Speaker Change: Improved employee retention.
Speaker Change: Each are yielding results.
Speaker Change: These advancements are occurring at the same time as our ongoing integration efforts, which are successfully working through two years of record M&A, it's impressive and speaks very well of our entire team who are truly going above and beyond in.
Speaker Change: In the landfill business, we reported organic growth exceeding 7% with positive contributions from both price and volume. We are focused on internalizing more of our own tonnes, which Ned will discuss in more detail in a few minutes.
John Casella: On the collection side of the solid waste business, pricing momentum was positive at 5.8 percent, more than offsetting a volume decrease of 1.7 percent, which included slower roll-off volumes during a challenging winter. Pricing continued to exceed internal inflation, which, combined with operating initiatives, expanded margins by 140 basis points in our legacy collection operation. Resource Solutions continues to perform well, with the first quarter results benefiting from the ramp-up at the recently upgraded Willimantic Recycling Facility and strong organic growth of over 10% in our national accounts business, as that group continues to gain traction with larger accounts in our new geography.
Speaker Change: On the collection side of the solid waste business pricing momentum was positive at five 8% more than offsetting a volume decrease of one 7%, which included slower roll off volumes during a challenging wet winter.
Speaker Change: Pricing continued to exceed internal inflation, which combined with operating initiatives expanded margins by 140 basis points in our legacy collection operations.
Speaker Change: Resource solutions continues to perform well with the first quarter results benefiting from the ramp up at the recently upgraded willimantic recycling facility and strong organic growth of over 10% and international accounts business as that group continues to gain traction with larger accounts in our new geographies.
John Casella: We also continue to execute our acquisition strategy, having closed four deals year-to-date with approximately $50 million in annualized revenues.
Speaker Change: We also continued to execute our acquisition strategy Hasnt closed four deals year to date with approximately $50 million in annualized revenues looking ahead to the remainder of 2025, our active M&A pipeline is full.
John Casella: Looking ahead to the remainder of 2025, our active M&A pipeline is full. Our strong balance sheet positions us to continue to complete deals opportunistically. The first quarter was a nice start to 2025 and a product of hard work with our core operating strategies working well. While tariff and macro uncertainties have been recent topics of investor concerns, the nature of our solid waste business reduces the impact of economic swings and our domestic focus limits exposure to tariffs. We remain confident in our 2025 outlook and continue to see opportunities for future value creation.
Speaker Change: Our strong balance sheet positions us to continue to complete deals opportunistically.
Speaker Change: The first quarter was a nice start to 2025 and our product is hard at work with our core operating strategy is working well.
Speaker Change: Tariffs and macro uncertainties have been recent topics of investor concerns the nature of our solid waste business reduces the impact of economic swings in our domestic focus limits exposure to tariffs.
Speaker Change: We remain confident in our 2025 outlook and continue to see opportunities for future value creation and with that I'll turn it over to net to go through the financial details.
Ned Coletta: With that, I'll turn it over to Ned to go through the financial details. Thanks, John. Good morning, everyone.
Ned Coletta: Before I get into the numbers, I'd like to take a moment to welcome Brian Butler to our team as Vice President of Investor Relations. Brian joins us from Cecil, where he was most recently the lead equity research analyst for the waste sector, and as Michael Hoffman's longtime partner, he was one of the most tenured waste analysts on Wall Street. He brings deep corporate finance skills, industry knowledge, and investment perspective to our team. We're very excited to have Brian join the Casella team.
Speaker Change: Thanks, John Good morning, everyone before I get into the numbers I'd like to take a moment to welcome Brian thought there to our team as vice President of Investor Relations.
Speaker Change: Brian joins us from Stifel, where he was most recently the lead equity research analyst for the waste sector and as Michael Hoffman is a longtime partner. He was one of the most tenured waste analysts on Wall Street.
Speaker Change: Steve corporate finance skills industry knowledge, and Investor perspective to our team. We're very excited to have Brian join us a solid team.
Ned Coletta: Now on to the financial results for the quarter. Revenues in the first quarter were $417.1 million, up $76.1 million year-over-year, or 22.3%, with $57.3 million from acquisitions, including the rollover, and $18.4 million of growth from organic growth, or 5.4% year-over-year. Solid waste revenues were up 25.9% year-over-year, with price up 5.6% and volume slightly down, down 1.7%. Within Solid Waste, price in a collection line of business was up 5.8% with volumes down 1.7%. Price was strong across the board, led by positive 6.5% price in the front-load commercial From a volume standpoint, we saw softness in the roll-off line of business across our footprint this quarter.
Speaker Change: Now onto the financial results for the quarter revenues in the first quarter were $417 1 million.
Speaker Change: Up $76 $9 million year over year, or 22, 3% with $57 3 million from acquisitions, including the rollover and $18 4 million aircraft from organic growth of five 4% year over year.
Speaker Change: All our waste revenues were up 25, 9% year over year with price up five 6% and volumes slightly down down one 7%.
Speaker Change: Within solid waste pricing and collection line of business was up five 8% with volumes down one seven.
Speaker Change: 7% pricing was strong across the board led by positive six 5% price in the Frontload commercial business from a volume standpoint, we saw softness in the roll off line of business across our footprint. This quarter. Some of this can certainly be attributed to the challenging winter weather in the northeast, but we also.
Ned Coletta: Some of this can certainly be attributed to the challenging winter weather in the Northeast, but we also observed some slower economic activity in several of our markets. However, it's hard to draw firm conclusions from the first quarter roll-off volumes as we're seeing nice strength and seasonal uptick into April and early May. Price in the disposal line of business was up 5.5% year over year, and volumes were down 2.2%, with softness in third-party transfer station volumes, which is really related to soft roll-off volumes in the quarter. Results in the landfill business were strong, with price up 3.3% and tons up 3.9%, including volumes across all major waste streams. The average price per ton was up 4.8% in a quarter.
Speaker Change: Saracens slower economic activity in several of our markets. However, it's hard to draw firm conclusions from the first quarter roll off volumes as we're seeing nice strength in seasonal uptick into April and early may.
Speaker Change: Price in the disposal line of business was up five 5% year over year and volumes were down two 2% with softness in third party transportation volumes, which is really related to soft roll off volumes in the quarter.
Speaker Change: Results in our landfill business were strong with price up three 3% and tons up three 9%, including volumes across all major waste streams. The average price per ton was up four 8% in the quarter.
Ned Coletta: Resource solutions revenues were up 9.5% year-over-year with recycling and other processing revenue up 7.4% and national accounts up 10.9%. Within the processing operations, price was up 3%, with average commodity revenue per ton relatively flat year-over-year. Commodity prices overall remained stable this year, with recent softness in the fiber market largely offset by strength in plastics and aluminum. Processing volume in revenue terms is up 2.6% with growth in both recycling and municipal biosolids products. Within national accounts revenue, prices up 3.9% and volume was up 7.4%. Adjusted EBITDA was $86.4 million in the quarter, up $15.4 million, or 21.7% year-over-year, with positive contribution from acquisitions and organic growth.
Speaker Change: Resource solutions revenues were up nine 5% year over year with recycling and other processing revenue up seven 4% and national accounts up 10, 9%.
Speaker Change: Within the processing operations price was up 3% with average commodity revenue per ton relatively flat year over year.
Speaker Change: Modest pricing overall remained stable this year with recent softness in the fiber market largely offset by strength in plastics and alumina.
Speaker Change: <unk> volume and revenue terms was up two 6% with growth in both recycling and municipal biosolids processing.
Speaker Change: Within National accounts revenue prices up three 9% and volume was up seven 4%.
Speaker Change: Adjusted EBITDA was $86 4 million in the quarter up $15 4 million or 21, 7% year over year with positive contribution from acquisitions and organic growth <unk>.
Ned Coletta: Adjusted EBITDA margins were 20.7% in the quarter, down 10 basis points year-over-year, but in line with our budget. Bridging the year-over-year change in adjusted EBITDA margins in the quarter, an adjustment to long-term stock-based compensation expense, driven by our improving outlook against long-term targets, impacted EBITDA in the quarter by approximately $2.6 million, which represents about 60 basis points of margin headway. Excluding this adjustment, margins were up approximately 50 basis points year-over-year with margin expansion in the base business and a net tailwind from acquired operations. Cost of operations were $280.5 million in the quarter, up $49.7 million year-over-year, with 44.4 million of the increase from acquisitions and 5.3 million in the basis.
Speaker Change: Adjusted EBITDA margins were 27% in the quarter down 10 basis points year over year, but in line with our budget.
Speaker Change: Bridging the year over year change in adjusted EBITDA margins in the quarter and adjustment to long term stock based compensation expense driven by our improving outlook against long term targets impact to EBITDA in the quarter by approximately $2 6 million, which represents about 60 basis points of margin.
Speaker Change: Excluding this adjustment margins were up approximately 50 basis points year over year with margin expansion the base business and the net tailwind from acquired operations.
Speaker Change: Cost of operations were $285 million in the quarter up $49 $7 million year over year with $44 8 million $44 4 million of the increase from acquisitions and $5 3 million in the base business.
Ned Coletta: Cost of operations in the Bay's business were down approximately 200 basis points as a percentage of revenue in the quarter, primarily reflecting the continued operating leverage and benefits from our key strategies in the collection line of business. General and administrative costs were $56.5 million and a quarter, up $12.2 million year-over-year. Excluding the stock comp adjustments I just mentioned, G&A costs were down 10 basis points as a percentage of revenue. Depreciation and amortization costs were up $17.5 million year-over-year, with $15.5 million resulting from the recent acquisition activity, including the amortization of acquired intangible As a reference, DNA associated with acquisitions was approximately 27% of acquired revenues in the quarter as compared to about 16% in our base.
Speaker Change: Cost of operations in the base business were down approximately 200 basis points as a percentage of revenue in the quarter, primarily reflecting the continued operating leverage and benefits from our key strategies in the collection line of business.
Speaker Change: General and administrative costs were $56 5 million in the quarter up $12 $2 million year over year, excluding the stock stock comp adjustment I, just mentioned G&A costs were down 10 basis points as a percentage of revenues.
Speaker Change: Depreciation and amortization costs were up $17 $5 million year over year with $15 5 million, resulting from the recent acquisition activity, including the amortization of acquired intangibles.
Speaker Change: As a reference DNA associated with acquisitions was approximately 27% of acquired revenues in the quarter as compared to about 16% in our base business.
Ned Coletta: Adjusted net income was $12.2 million in the quarter, or $0.19 per diluted share, up $3.5 million, or about $0.04 a share. Gap net loss was $4.8 million in the quarter, impacted by about $6.9 million of increase in amortization of acquired intangibles year over year. Net cash provided by operating activities was $50.1 million in the first quarter, up $42.4 million year-over-year, driven by strong EBITDA growth and a more normalized seasonal working capital outflow as compared to last year. Our DSO was steady at 36 days from December 31. As you may have noted last night in the press release, Adjusted Free Cash Flow was $29.1 million, a record for the first quarter.
Adjusted net income was $12 2 million in the quarter or <unk> 19 per diluted share up $3 5 million or about four cents a share.
Speaker Change: GAAP net loss was $4 8 million in the quarter impacted by about $6 $9 million of increase in amortization of acquired intangibles year over year.
Speaker Change: Net cash provided by operating activities was $50 1 million in the first quarter up $42 $4 million year over year, driven by strong EBITDA growth and a more normalized seasonal working capital outflow as compared to last year. Our DSO was steady at 36 days.
Speaker Change: <unk> from December 31.
Speaker Change: As you May have noted last night in our press release adjusted free cash flow was $29 1 million a record for the first quarter capital expenditures were $55 5 million up $25 2 million year over year, but included $25 million of upfront investments in recent acquisitions.
Ned Coletta: Capital expenditures were $55.5 million, up $25.2 million year over year, but included $25 million of upfront investments in recent acquisitions, in line with our full year plan and the pro formas for each transaction. As of March 31, we had $1.15 billion of debt and $268 million of cash, and our consolidated net leverage ratio for purposes of our bank covenants was 2.45 times. As of today, after the recent acquisitions completed thus far in 2025, we maintain approximately $900 million of availability between excess cash and our untrawn revolvers. Our liquidity and leverage profile will enable us to be opportunistic in continuing to execute our growth strategy and robust M&A pipeline.
Speaker Change: In line with our full year plan and a pro formats for each transaction.
Speaker Change: As of March 31, we had $115 billion of debt and $268 million of cash and our consolidated net leverage ratio for purposes of our bank covenants was two four or five times <unk>.
Speaker Change: As of today after the recent acquisitions completed thus far in 2025, we maintain approximately $900 million of availability between excess cash and our undrawn revolver.
Speaker Change: Our liquidity and leverage profile will enable us to be opportunistic and continuing to execute our growth strategy and robust M&A pipeline.
Ned Coletta: As announced in our press release yesterday, we reaffirmed our financial guidance for 2025. We started a year strong, but it would be premature to reconsider our initial guidance ranges, particularly in light of the heightened macro economic uncertainty. Regarding the economic outlook, we believe that our exposure to tariffs is low, as John mentioned, given the nature of our cost structure, we've seen virtually no efforts by vendors to date to pass on tariff-related increases . But we're closely monitoring the situation and we're in dialogue with key vendors to understand potential impacts as the situation evolves. In the event that we do face tariff-related cost increases, we have multiple options to offset such tariffs on the revenue.
Speaker Change: As announced in our press release yesterday, we reaffirmed our financial guidance for 2025, we started the year strong, but it would be premature and we consider our initial guidance ranges, particularly in light of the heightened macroeconomic uncertainty.
Speaker Change: Regarding the economic outlook, we believe that our exposure to tariffs as low as John mentioned, given the nature of our cost structure, we've seen virtually no efforts by vendors to date to pass on tariff related increases.
Speaker Change: But we're closely monitoring the situation and we're in dialogue with key vendors to understand potential impact as the situation evolves.
Speaker Change: In the event that we do face tariff related cost increases we have multiple options to offset such tariffs on the revenue side.
Ned Coletta: Now moving on to the operations highlights for the quarter. As discussed by John earlier and in the financial dialogue, organic operating trends were very positive in the first quarter as mid-single digit pricing combined with new business wins in our resource solutions group and cost efficiency gains from operational initiatives offset headwinds from lower collection and transfer station volumes in the quarter. From an operating standpoint, we continue to execute well on our core programs, including automated truck conversions, route optimizations, and extra revenue generated through our onboard computing.
Speaker Change: Now moving on to the operations highlights for the quarter as discussed by John earlier and in our financial dialogue organic operating trends were very positive in the first quarter as mid single digit pricing combined with new business wins, and our resource solutions group.
Speaker Change: And cost efficiency gains from operational initiatives offset headwinds from lower collection and transfer station volumes in the quarter.
Speaker Change: From an operating standpoint, we continue to execute well on our core programs, including automated truck conversions route optimization and extra revenues generated through our onboard computing.
Ned Coletta: Our 2025 plan includes adding approximately 40 more automated trucks, eliminating over 50 rear load trucks. As a comparison, in 2024, we added 17 automated trucks, which eliminated 22 rear load.
Speaker Change: Our 2025 plan includes adding approximately 40 more automated trucks, eliminating over 50 rare lift trucks.
Speaker Change: As a comparison in 2024, we added 17 automated trucks, which eliminated 22 rear loaders.
Ned Coletta: After completing a full technology retrofit during the second half of 2024, we brought our Willimantic recycling facility back online in January. The facility is performing well and is on track to deliver $4 million of targeted incremental adjusted EBITDA in 2025.
Speaker Change: After completing a full technology retrofits during the second half of 2024, we brought our Willamette take recycling facility back online in January.
Speaker Change: The facility is performing well and is on track to deliver $4 million of targeted incremental adjusted EBITDA in 2025.
Ned Coletta: We continue to evaluate other opportunities to advance our recycling and resource management infrastructure with several additional facilities that could potentially benefit from conversions in the coming years.
We continue to evaluate other opportunities to advance our recycling and resource management infrastructure with several additional facilities that could potentially benefit from conversions in the coming years.
Ned Coletta: Our sales team remained diligent in the first quarter, successfully winning $22 million in new annualized revenues with premier customers in key market segments, including municipal, industrial, multi-site retail, and high institutional and higher education. Overall, new business growth remained strong in the first quarter, slightly ahead of our 2025 goal. Our Resource Solutions business also delivers strong revenue growth, with first quarter national accounts volumes increasing 7.4% year-over-year, given the strong sales effort. Landfill volumes showed improvement in the first quarter, up 3.9% year-over-year as the C&D market headwinds that we experienced in 2024 have subsided and we've begun to see the benefits of a revamped landfill sales process and our efforts to increase internalization of volumes.
Speaker Change: Our sales team remained diligent in our first quarter successfully winning $22 million in new annualized revenues with premier customers in key market segments, including municipal industrial and multi site retail.
Speaker Change: And hi, institutional on higher education overall, new business growth remained strong in the first quarter slightly ahead of our 2025 balls.
Speaker Change: Our resource solutions business also delivered strong revenue growth with first quarter national accounts volumes, increasing seven 4% year over year, given the strong sales efforts.
Speaker Change: Land sales volumes showed improvement in the first quarter up three 9% year over year as the CND market headwinds that we experienced in 2024 have subsided and we've begun to see the benefit of a refinance landfill sales process and our efforts to increase internalization of volumes, we expect that these.
Ned Coletta: We expect that these positive tailwinds will remain throughout the remainder of 2025.
Speaker Change: Positive tailwind will remain throughout the remainder of 2025.
Ned Coletta: Acquisitions remain a strategic priority for our team, with a focus on opportunities that have great operational fit, allowing us to advance densification of our routes, drive margin improvement through application of our keys operating strategies, and establishing new adjacent markets that support future growth. Our active M&A pipeline is over $500 million of revenues in various stages of engagement. As we look ahead, we remain very well positioned to deliver attractive, organic growth combined with strategic acquisition. We have limited exposure to tariffs and a resilient business model in the event that the economy does slow.
Speaker Change: Acquisitions remain a strategic priority for our team with a focus on opportunities to have great operational fit, allowing us to advance densification for routes drive margin improvement through application of our key operating strategies and establishing new adjacent markets that support.
Speaker Change: Future growth, our active M&A pipeline with over $500 million of revenues in various stages of engagement as.
Speaker Change: As we look ahead, we remain very well positioned to deliver attract.
Speaker Change: Attractive organic growth combined with strategic acquisitions, we have limited exposure to tariffs and a resilient business model and the dead if the economy does slow.
Operator: With that, I'd like to turn it back to the operator for questions. Thank you. If you would like to ask a question, please press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. If you would like to withdraw your question, press star 11 again. Also wait for your name and company to be announced before proceeding with your question.
Speaker Change: With that I'd like to turn it back to the operator for questions.
Speaker Change: Thank you if you would like to ask a question. Please press star one on your telephone.
Speaker Change: In here, an automated message advising your hand is right. If you would like to withdraw your question Press Star one again.
Speaker Change: So wait for your name and company to be announced before proceeding with your questions. One moment for the first questions.
Operator: One moment for the first question.
Adam Bubes: And our first question will come from the line of Adam Bubes from Goldman Sachs. Your line is open. Hi, good morning. Good morning. Nice to see the positive landfill volume trajectory in the quarter.
Speaker Change: And our first question will come from the line.
Speaker Change: Adam.
Speaker Change: From.
Speaker Change: Goldman Sachs. Your line is open.
Speaker Change: Hi, good morning.
Good morning.
Speaker Change: Nice to see the positive landfill volume trajectory in the quarter just wondering how much of that is the loss construction and demolition volumes flowing back to you <unk> and is there still room for continued recovery there as well.
John Casella: Just wondering how much of that is the lost construction and demolition volumes flowing back to you, 1Q versus 4Q, and is there still room for continued recovery there as we move through the balance of the year? Yeah, thanks, great question. So, as you mentioned, we had a really nice first quarter. You know, last year, we had those negative headwinds coming from Long Island as that site closed, and there was a little bit of competitive tension. But, you know, our rebound this year in the first quarter, about a third of it is us recapturing construction demo tons in that New York market.
Speaker Change: Move through the balance of the year.
Speaker Change: Thanks have a great question.
Speaker Change: As you mentioned, we had a really nice first quarter.
Speaker Change: Last year, we had this negative headwinds coming from long Island asset site closed and there is a little bit of competitive tension.
Speaker Change: But our rebound this year in the first quarter about a third of it is us recapturing construction and demo tons in that New York market and about two thirds is related to our efforts in 2024 to get new transportation lanes in place to internalize additional time.
John Casella: And about two-thirds is related to our efforts in 2024 to get new transportation lanes in place to internalize additional tons. And we've been working hard to set up a new strategic sales organization around landfill sales, special waste, and just taking a look in the mirror at what we can improve to become more effective on the sales side there. So, you know, it's the three. It wasn't just the market bounce back and we sat back.
Speaker Change: And we've been working hard to.
Speaker Change: Set up a new strategic sales organization around landfill sales special waste and it's just taking a look at amira, what we can improve to become more effective on the sales side. There. So yes fit three it wasn't just the market bounce back and we sat back we also.
John Casella: We also, you know, I think, as you know, we're working really hard in 2024 to make our own future as well.
Speaker Change: I think as you know, we're working really hard in 2024 to make our own future as well.
John Casella: Great, and then as we think about your landfill positioning today and opportunities for incremental internalization, can you just help us think about sort of how much unfilled annual landfill capacity you have today? I think McKean is close to 1.5 million incremental capacity, but just trying to figure out where else there is slack for more internalization of third party tons. Yeah, so not including that extra capacity at McKean, we're running at Sorry, we're running about 30% capacity, 30% excess capacity today through our business model, with the vast majority of that being in, you know, New York State.
Speaker Change: Great and then as we think about your landfill positioning today and the opportunities for incremental internal inflation can you just help us think about sort of how much unfilled annual landfill capacity you have today I think Mccain is close to one 5 million of incremental capacity, but just trying to figure out where else there.
Speaker Change: Slack for more internalization of third party tonnes.
Speaker Change: Yes, so not including that extra capacity at Mckean, we're running at.
Speaker Change: Sorry, we're running about 330%.
Speaker Change: Capacity, 30% excess capacity today through our business model with the vast majority of that being in New York State.
John Casella: You know, we have opportunities, of course, to drive more volume to our Hakes CMD landfill in New York, more volume to our Highland landfill in Ontario and New York as well. If we see further market constraints, those sites are ready to ramp further. As you mentioned, McKean, if you bring that into equation, you know, there's even more capacity. It's 1.5 million tons a year that's virtually untapped. We continue to work really hard, looking at a few select third-party opportunities to go into McKean, and as we talked about, you know, over the last number of quarters, McKean mainly is a defensive strategy for us as we look to the northeast and if there are additional landfill closures, we really need that long-term security for our customers, our communities to have good, safe, environmentally sound disposal capacity.
Speaker Change: We have opportunities of course to drive more volume to our hakes C&D landfill in New York more Brian to our Highland landfill in Ontario, and New York as well.
Speaker Change: If we see further market constraints. So sites are ready to ramp further as you mentioned mid teen.
Speaker Change: If you bring that into the equation.
Speaker Change: Even more capacity at the one 5 million tons, a year that virtually untapped.
Speaker Change: We continue to work really hard looking at a few select third party.
Speaker Change: Opportunities to go into <unk> and as we talked about for the last number of quarters.
Speaker Change: Making mainly as a defensive strategy for us as we look to the northeast and if there are additional landfill closures, we really need that long term security for our customers our communities to have good safe environmentally sound disposal capacity. So it's not like we're putting our foot to the floor and trying to ramp.
John Casella: So it's not like we're putting, you know, our foot to the floor and trying to ramp up McKean. It's a 10-year, 20-year strategy for us from a risk mitigation standpoint.
Speaker Change: Mckean.
Speaker Change: It's a 10 year 20 year strategy for us from a risk mitigation standpoint.
John Casella: And then the last one for me, can you just provide an update on the Juniper Ridge Landfill Gas Plant ramp and any update on timing on the three plants in partnership with WAGA? Thank you. Yeah, so I'd like to just start by saying that our strategic decision to not invest as Casella in these R&G opportunities was a good decision. We're not an energy company, we're a resource management company, and we knew we should find great partners to do that with. And I think as history has shown over the last couple of years, these are complex projects to get online.
Speaker Change: And then last one from me can you just provide an update on the Juniper ridge landfill gas plant ramp and any update on timing on the <unk>.
Speaker Change: <unk> three plants in partnership with walk us. Thank you.
Speaker Change: Yes so.
Speaker Change: I'd like to just start by saying that our strategic decision to not invest.
Speaker Change: As seller in these RMT opportunities was a good decision on we're not an energy company, where our resource management company.
Speaker Change: We use we should find great partners to do that with and I think as history has shown over the last couple of years. These are complex projects to get online and you can have.
John Casella: You need to have a lot of expertise in how to clean gas, how to get it to pipeline quality, and the Juniper Ridge project is online now. It's been online for a number of months, but it's operating at, like, 10% or less production levels. The team at BP Archaea is working hard to get it ramped up to normalized levels. We hope to see that throughout this year.
Speaker Change: A lot of expertise in how to clean gas how do you get it to pipeline quality and at Juniper Ridge project is online now it's been online for a number of months, but it's operating at like 10% or less production levels.
Speaker Change: Team at BP RTI is working hard to get it ramped up to normalized levels, we hope to see that throughout this year.
Adam Bubes: Moving over to WAGA, our partner from France is developing facilities at our Chemung, our Highland, and our McKean landfills. All of those projects are moving along well. We expect the first ones to come online in the third to fourth quarter this year, and we're really hopeful that the technology they bring to the table and the approach will help us solve some of these gas issues we've seen at Juniper Ridge and North Country landfills. Great. Thanks so much. Thank you.
Speaker Change: Moving over to wag at our partner for Francis developing facilities at our CMO are highlighted in our mckean landfill all of those projects are moving along well we expect the first ones to come online in the third to fourth quarter. This year and we're really hopeful that the <unk>.
Speaker Change: Knowledge, they bring to the table and that approach will help us solve some of the gas issues, we've seen at Juniper Ridge and north country landfills.
Speaker Change: Okay.
Speaker Change: Great. Thanks, so much thank you.
Operator: One moment for the next question.
Speaker Change: Thank you one woman and the next question.
Trevor Romeo: Our next question is coming from the line of Trevor Romeo of William Blair. Your line is open. Hey, good morning, guys. Thanks so much for taking the questions. I had one on price. I think, you know, 5.6% for solid waste in the quarter. I think that was a little above your full year expectation. I guess, are there any areas where you saw pricing stick a little bit better than you expected and then thinking as we move throughout the rest of the year, you know, is there any reason to think whether it's either mix or underlying environment or anything like that?
Speaker Change: Our next question will come from the line of Trevor Romeo of William Blair. Your line is open.
Trevor Romeo: Hey, good morning, guys. Thanks, so much for taking the questions.
Speaker Change: One on.
On price I think 556% for solid waste in the quarter I think that was a little above your full year expectation.
Speaker Change: Are there any areas, where you saw pricing stick a little bit better than you expected and then thinking as we move throughout the rest of the year is there any reason to think whether it's either mix or underlying environment or anything like that any reason you might see a deceleration from these levels for the next few quarters.
Trevor Romeo: Any reason you might see a deceleration from these levels in the next few quarters?
Jason Mead: Hey, Trevor. It's Jason. I'll answer the question here. So our pricing in the first quarter was slightly ahead of budget, so off to a good start in the year. And as you know, I believe much of our pricing goes out early in the year, in January, upwards of 70% of our budgeted price increases. So we're out the door with most of our pricing for the year and off to a great start. Our pricing guidance for the year is approximately 5%. That still holds true. Typically, we do see a little bit of moderation through the year with select pricing rollbacks across customers.
Speaker Change: Hey, Trevor its Jason I'll answer the question here, so our pricing in the first quarter.
Speaker Change: Slightly ahead of budget, so off to a good start in the year and as you know I believe much of our pricing goes out earlier in the year and January upwards of 70% of our budgeted price increases so were out the door with most of our pricing for the year and off to a great start.
Speaker Change: Our pricing guidance for the year is approximately 5% that still holds true typically we do see a little bit of moderation through the year with select pricing rollbacks across customers, but.
Jason Mead: But as you know, we have had a history of pricing in excess of that, in excess of our budgeted levels. However, as it stands today, our guidance is still 5% for the year, which is in excess of our cost inflation that we're experiencing. So we're getting modest to moderate spread on that, which is nice. In terms of customer groupings, I would say that in the collection line of business, a strong start there from a commercial perspective with pricing on the higher end of our expectations from a pricing perspective. Roll off may be a little bit weaker, given some softness across the volumes, and that's something we'll continue to monitor through the year.
Speaker Change: As you know we have had a history of pricing in excess of that inexpensive our budgeted levels. However, as it stands today our guidance is still 5% for the year, which is in excess of our cost inflation that we're experiencing so we're getting.
Speaker Change: Modest to moderate spread on that which is nice.
Speaker Change: In terms of customer groupings.
Speaker Change: Hi.
Speaker Change: I would say that in the collection line of business.
Speaker Change: Strong start there from a commercial perspective.
Speaker Change: With pricing on the higher end.
Speaker Change: <unk>.
Speaker Change: Our expectations from a from a pricing perspective.
Speaker Change: Roll off maybe a little bit weaker given some softness across the volumes and that's something we will consider continue to monitor through the year.
Jason Mead: Landfills, we've gone to market with budgeted pricing and we've hit the mark.
Speaker Change: We've gone to market with positive pricing and we have hit the mark there.
Trevor Romeo: All right, thanks, Jason. That's helpful.
Jason: Alright, Thanks, Jason Thats helpful.
Ned Coletta: And then I did want to ask on your, your integration efforts, I think you mentioned a little in the prepared remarks, just, you know, a lot of activity the past two years, a few kind of larger ones toward the end of 24. How have all those integrations progressed thus far relative to your expectations? And then in terms of, I think, Ned, you mentioned there was a net margin tailwind from acquired businesses, if I heard you right. So just thinking of, you know, efficiency and synergy capture and such, how has all that kind of, you know, performed so far for those acquired businesses?
Speaker Change: And then I did want to ask on your integration efforts I think you mentioned a little bit more in the prepared remarks, just a lot of activity in the past two years.
Speaker Change: Larger ones towards the end of 'twenty four how are all those integrations progressing thus far relative to your expectations and then in terms of I think you mentioned there was a net margin tailwind from acquired businesses. If I heard you right.
Speaker Change: So just thinking of efficiency and synergy capture and such how is all that kind of.
Speaker Change: Performed so far for those acquired businesses.
Ned Coletta: Thank you. Yeah, so we've, as we've acquired more and more businesses, we've looked to institutionalize and create best practices, and we've stood up a full-time integrations team, as well as many of our department heads and business Helping as well. And you're always chasing kind of the bottleneck of that process of where you can improve. And I'd like to say, like, on the operating side, the teams are doing an amazing job. On the HR side, we're really getting things done well early on, getting things onto our core systems, our core financial processes. I think we're doing well getting over to our financial processes.
Speaker Change: Yes, so we.
Speaker Change: We've as we've acquired more and more businesses, we've looked to institutionalizing create best practices.
Speaker Change: We stood up a full time integration team.
Speaker Change: As well as many of our department heads and business leads helping as well and you're always chasing kind of bottleneck of that process of where you can improve and I'd like to say like on the operating side on the teams are doing an amazing job on the HR side.
Speaker Change: We're really getting things done well early on.
Speaker Change: Getting things onto our core systems, our core financial processes, I think we're doing well getting over to our financial processes.
Ned Coletta: You know, the system side is probably the most complex. And where we have the most lessons learned and the most friction today, and where we'll continue to get synergies and value creation. You know, when you look at the original pro formas for each transaction, we're ahead of the game. We're doing an excellent job. Our team did a great job recognizing the ongoing earnings potential of these businesses and then where we can improve them, given, you know, certain operational or back office synergies. As I said a minute ago, we're probably a beat behind on systems IT, and there'll be more value creation.
Speaker Change: Assistant side is probably the most complex and where we have the most lessons learned and the most friction today and we will continue to get synergies and value creation.
Speaker Change: When you look at the original pro forma is for each transaction. We're ahead of the game, we're doing an excellent job our team did a great job recognizing that the ongoing earnings potential of these businesses and then where we can improve them given.
Speaker Change: Certain operational or back office synergies as I said, a minute ago, we're probably a bit behind on systems and there'll be more value creation, and then getting the trucks.
Ned Coletta: And then getting the trucks. You know, a lot of acquisitions, we do have old rear load trucks, and Sean and his team have great strategies to automate in each of those markets. And that's really the pain point sometimes, is getting those trucks fast enough and allowing us to reroute, do automation, and get trucks off the road. I think it's clear, too, that the IT situation represents a real opportunity for the future. You know, moving to a new lead-to-cash system is going to really create a significant amount of value over the long term. The other, you know, really interesting aspect of that is it's really without a great deal of risk because we're currently on SoftPak.
Speaker Change: Lot of acquisitions, we do have a rear load trucks and Sean and his team have grade strategies to automate.
Speaker Change: In each of those markets and that's really the pain points, sometimes escape those trucks, SaaS enough and allowing us to reroute to automation and get trucks off the road.
Speaker Change: I think it's clear to that.
Speaker Change: Situation represents a real opportunity for the future.
Speaker Change: Moving to.
Speaker Change: A new lead to cash system is going to really create a significant amount of value over the long term. The other really is.
Speaker Change: Interesting aspect to that is it's really.
Speaker Change: Without a great deal of risk because we're currently on soft back we're going to move to a newer version of suspects are the majority of the company is on soft back now it's just an old version of it and we're moving to a newer version of it. So that's going to add a lot of value as we incorporate some of the other systems that we've inherited.
Ned Coletta: We're going to move to a newer version of SoftPak, so our majority of the company is on SoftPak now. It's just an old version of it. We're moving to a newer version of it, so it's going to add a lot of value as we incorporate some of the other systems that we've inherited from a M&A standpoint. So, another nice opportunity over time to create additional value, as Ned said.
Speaker Change: A M&A standpoint, so another nice opportunity or overtime to create additional value as Ned said.
Trevor Romeo: All right. Thanks so much, guys. Appreciate it. Thank you.
Speaker Change: Alright, thanks, so much guys I appreciate it thank.
Speaker Change: Thank you.
Operator: One moment for the next question. And the next question will come from the line of James Sherman from TD Cowen. Your line is open. Thanks. Good morning, guys. So I wanted to, you made four acquisitions with $50 million of annualized revenue.
Speaker Change: Thank you one moment for the next question.
Speaker Change: And the next question will come from the line of James Armstrong from TD Cowen Your line is open.
James Armstrong: Thanks, Good morning, guys.
Speaker Change: Right.
Speaker Change: So I wanted to you made four acquisitions with $50 million of.
James Sherman: I wanted to understand how much of that is incremental to the annual rollover guidance that you gave. to Revenues. Yeah, so you've got three buckets. You've got the rollover from last year, you have what we did early this year before we announced Q4, and then you have what's done in between Q4 now, and to John's point, the incremental from that initial guidance in February to now, Understood.
Speaker Change: Annualized revenue I wanted to understand how much of that.
Speaker Change: Is incremental to the annual rollover guidance that you gave.
Speaker Change: Revenues about $10 million of it $40 million of it was already in the guidance.
Speaker Change: Yes, you got it.
Speaker Change: You've got the rollover from last year.
Speaker Change: What we did early this year before we announce Q4 and then you have what's done in between Q4 now and to John's point, the incremental from that initial guidance in February it's now $10 million.
James Sherman: Thanks.
Ned Coletta: And, and then I wanted to understand the disposal volume. So your disposal volumes are down, but your landfill volumes are up nicely. So that's implying is it that the transfer stations are very weak from roll off? Is it is that's what's going on where maybe you had roll-off work that would go to a third-party landfill, that really got weak, or just help me understand the sort of dynamic there. Yeah, excellent question. It is a bit nuanced and it really also illustrates how strong our landfills really were. So we recognize revenues for disposal through different points.
Speaker Change: Understood. Thanks, and then I wanted to understand the disposal volumes. So youre disposal volumes are down but your landfill volumes are up nicely. So that's implying is it that the transfer stations are very weak from roll off is it is that.
Speaker Change: Whats going on where maybe you had.
Speaker Change: Roll off work that would go to a third party landfill.
Speaker Change: That really got weak or just help me understand the sort of dynamic there.
Speaker Change: Yes excellent question.
Speaker Change: A bit nuanced and it really also illustrates how strong our landfills really were so.
Speaker Change: We recognized revenues for disposal through different points, some can be through a transfer station that could go to our own landfill or third party site. We also have a transportation.
Ned Coletta: Some can be through a transfer station that could go to our own landfill or third-party site. We also have a transportation area in our business where we might transport materials from a site to our landfills and then recognize revenues directly at the landfills. And when we're talking about statistics, it's always the third-party revenue at one of those points. So disposal overall covers transfer, transportation, and landfills. And to your point a minute ago, you know, across the eastern part of our business, so Massachusetts, New Hampshire to Maine, roll-off activity was pretty weak through the first quarter.
Speaker Change: Area in our business, where we might transport materials from our site to our landfills and then we recognize revenues directly at the landfills and when we're talking about statistics, it's always the third party routing you at one of those points. So disposal overall koppers' transfer transportation and land sales.
Speaker Change: Our quiet many heiko.
Speaker Change: Across the eastern part of our business, So, Massachusetts, New Hampshire and Maine.
Speaker Change: Roll off activity was pretty weak through the first quarter and it wasn't just our own trucks with third parties coming into our transfer stations.
Ned Coletta: And it wasn't just our own trucks, it was third parties coming into our transfer station. But when you look at landfills, we're up pretty strong year-over-year, and that just speaks to us overcoming that negative headwind in the first quarter on some of the transfer weakness, roll-off weakness, and then just, you know, our efforts to get internalization from new streams that we've discussed the last few quarters as we've done acquisitions, our ability to, you know, recover some of the C&D times in the New York market and just broader sales activity, it really shows how strong that was in the quarter.
Speaker Change: But when you look at land sales were up pretty strong year over year and that just speaks to us overcoming that negative headwind in the first quarter on some of the transfer of weakness roll off weakness and then just our efforts.
Speaker Change: Again internalization from new streams that we've discussed the last few quarters as we've done acquisitions.
Speaker Change: Our ability to recover some of the CND tons in the New York market and just broader sales activity. It really shows how how strong that was in the quarter as I think I mentioned in the finance script.
Ned Coletta: As I think I mentioned in the finance script, you know, each year the spring breaks a little differently in the Northeast in the United States. This was a tough winter, and we don't ever make weather excuses, but like it was a tough winter. We got, you know, tens and tens of feet of snow in the mountains, and economic activity was a little bit lower around that, especially on the construction side. As you see the beautiful weather break into late March, now into April, into May, we've seen a really nice seasonal uptick. And as I said, it comes a little different each year.
Each year, the spring breaks a little differently in the northeastern United States. So this was a tough winter, we don't ever make weather excuses, but like it was a tough winter we got <unk>.
Speaker Change: <unk> intends to feet of snow in the mountains in economic activity was a little bit lower around that especially on the construction side as you see the beautiful weather break into late March now into April and May we've seen a really nice seasonal uptick and as I said it comes a little different each year.
Ned Coletta: This year, you know, April's stronger than March and stronger than we expected. So we don't want to make an economic call, but, you know, that's always something we're watching in the winter through the spring.
Speaker Change: This year april's stronger than March and stronger than we expected so.
Speaker Change: We don't want to make it economic call but.
Speaker Change: That's always something we're watching in the winter through the spring.
James Sherman: Okay, that's encouraging.
James Sherman: All right, thanks guys, appreciate it. Thank you.
Speaker Change: Okay, that's encouraging alright, thanks, guys I appreciate it.
Speaker Change: Thank you.
Operator: As a reminder, if you'd like to ask a question, please press star 1-1 on your telephone.
Speaker Change: Thank you as a reminder, if you'd like to ask a question. Please press star one on your telephone one moment for the next question.
Stephanie Moore: One moment for the next question. And the next question will come from the line of Stephanie Moore of Jefferies. Your line is open. Hi, good morning. Thank you. I wanted to, first question, just a clarification question.
Speaker Change: And the next question will come from the line of Stephanie.
Speaker Change: <unk> of Jefferies. Your line is open.
Stephanie: Hi, good morning, Thank you alright.
Speaker Change: Alright.
Speaker Change: I wanted to ask first question just a clarification question did you highlight or call out what the weather impact to the first quarter was either from a revenue or margin standpoint.
Stephanie Moore: Did you highlight or call out what the weather impact to the first quarter was either from a revenue or margin standpoint? No, we didn't. I think we always kind of take the perspective of we work outside every day, and we work in New England in the Northeast. So, you know, it comes and it goes, and we try to, you know, make do with what happens. I think our perspective was it was just a challenging winter. It's probably one of the factors of why roll-off times and transfer times were a little bit weaker, but we didn't start to try to figure out on weather days how much things were down.
Speaker Change: No. We did I think we always kind of take the perspective that we work outside everyday and we work in new England and the northeast.
Speaker Change: It comes and it goes and we tried it.
Speaker Change: Make do with what happens I think our perspective was it was just a challenging winter. It's probably one of the factors of why roll off tons and transfer tons were a little bit weaker, but we didn't we didn't start to try and figure out whether days how much things have are down.
John Casella: You know, I think as an organization, if we have like a big hurricane or something like that, we'll dig in and do that. But just a tough winter, we won't. Yeah, I think that we saw, looking at February in particular, year over year, you know, volumes were a little bit weaker, probably because of the weather. And then in March, they got a little bit better year over year as spring started to open up a little bit. Got it. Okay, no, that's clear.
I think as as an organization if we don't think of it.
Speaker Change: A hurricane or something like that will be we'll dig in and do that but just a tough winter. We will yes, I think that we saw you are looking at February in particular year over year.
Speaker Change: Volumes were a little bit weaker probably because of the weather and then in March they got a little bit better every year as spring has started to open up a little bit in the northeast.
Speaker Change: Sure.
Speaker Change: Got it okay. No that's clear and then maybe taking a bigger picture question I think youre very clear about the opportunity from internalizing volumes, particularly after doing M&A and just some of the dynamics in the northeast, but just for US as we continue to monitor and watch.
Stephanie Moore: And then maybe taking a bigger picture question, I think, you know, you're very clear about the opportunity from internalizing volumes, particularly after doing M&A and just some of the dynamics in the Northeast. But just for us, as we continue to monitor and watch your M&A activity, is there a way for us to think about the expected EBITDA contribution from internalization? So, like, you know, every 100 basis points of improvement or increase in internalization, what that could actually translate into from an EBITDA or margin standpoint, just kind of rough numbers there. Thanks.
Speaker Change: M&A activity is there a way for us to think about the expected EBITDA contribution from internalization.
Speaker Change: For every 100 basis points of improvement or increase in internalization, what that could actually translate into from an EBITDA margin standpoint.
Speaker Change: Rough numbers there thanks.
Ned Coletta: Oh, wow. That's a complex question.
Speaker Change: Oh Wow.
John Casella: So, you know, I think we have to discuss probably with specific acquisitions where there's an opportunity. As we, you know, last couple of years, we've had a couple of great ones that have led to some nice internalization benefit. We had Twin Bridges in the greater capital district of New York, Royal down into the Dutchess County and north of Westchester. Both of these were areas where we were not internalizing tons from either of these competitors in the market. And as we often talk about, on day one, we don't just move the tons. There are many long term disposal contracts in place.
Speaker Change: That's a complex question.
Speaker Change: I think we have to discuss probably with specific acquisitions, where theres an opportunity honestly.
Speaker Change: Last couple of years, so you've had a couple of great lines SaaS led to some nice internalization benefit 'twenty.
Speaker Change: Twin bridges didn't greater capital District of New York Royal down into that Dutchess County in North West Chester. Both of these were areas, where we were non internalizing tons from either of these competitors in the market and.
Speaker Change: As we often talk about on day, one we don't just move the tons. There are many long term disposal contracts in place you also need transfer capacity long haul capacity.
John Casella: You also need transfer capacity, long haul capacity. So it steps in over years. And some of what we're seeing in the benefits we had in late 24 into now are those steps taking place. So it's a little hard to say an acquisition happens one day and then we get a certain benefit. It's very acquisition dependent.
Speaker Change: <unk> seen over the years and some of what we're seeing and the benefits. We had in late 'twenty four and to know are those steps taking place. So it's a little hard to say an acquisition happens one day and then we get a certain benefit.
Speaker Change: Is it very acquisition dependent and I think as we.
Stephanie Moore: And I think as we, you know, guide or can give more specifics on a transaction, we'll try to lay that out. Absolutely. Well, appreciate the time. Thanks, guys. Thank you.
Speaker Change: Guide or can give more specifics.
Speaker Change: On a transaction, we'll try to lay that out Stephanie.
Stephanie: Absolutely well I appreciate the time thanks guys.
Speaker Change: Thank you. Thank you.
Tony Bancroft: And our next question will be coming from the line of Tony Bancroft of Gabelli Funds. Your line is open. Thanks so much. Keep doing it. You're doing great. Thank you.
Speaker Change: Thank you and our next question will be coming from the line of Tony Bancroft of Gabelli funds. Your line is open.
Tony Bancroft: Hey, good morning.
Speaker Change: Hey.
Speaker Change: You guys, great job well done.
Speaker Change: As usual.
Speaker Change: Again, probably more bigger picture question.
Speaker Change: Following in that line, but.
Speaker Change: Maybe you could talk a little bit just you've been you've been doing so much M&A. It seems like you've had some pretty successful acquisitions.
Speaker Change: In recent years.
Speaker Change: Something more transformation I know some of the industry has done some more transformational things or something outside your core business, maybe new markets maybe outside of your Adjacencies have you thought and then would you use obviously you performed so well your stock prices performed so well potential for using.
Speaker Change: Stock.
Speaker Change: Any of these.
Speaker Change: Potential transactions and you just mentioned how many how many great ones.
Speaker Change: Some great acquisitions you've had.
Speaker Change: How many would you say is there a handful left of great ones left in the northeast some of these some of these great larger midsized larger.
Speaker Change: Operator, what's out there.
John: Tony This is John I think that Ned laid out that we're working on about $1 billion of opportunities now those opportunities are all in various stages, but thats really right down the middle of the fairway in terms of our core competency.
John: Youre not going to see us outside of our core competency getting into other verticals at least in our view anyway.
John: Makes sense to stick to our core knitting.
John: Continue to tuck in in the northeast and the mid Atlantic.
John: Our strategic direction, which we had indicated that the.
John: The eastern Seaboard is where we'd like to continue to grow strategically.
John: So we've got tremendous opportunity in our core competency and we're going to stay with that meeting it's created a lot of value for all of our shareholders and it's clearly the way that we believe we can create the most shareholder value on a go forward basis.
John: Mentioned into financials script that we have about $900 million.
John: Availability between our current cash and.
John: And the revolver so.
John: As we sit here today, our near term pipeline, we've got plenty of liquidity and meet our needs would tell you I think as you know we've been opportunistic over the years and where the right opportunities. There we try to fund that with about half equity half apps that are yes.
John: That's the point in your question before we don't have anything transformational in the mix at this point in time, it's really kind of steady as you go.
John: Certainly.
John: That can change as you know, but currently there is nothing.
John: Transformational that we're looking at currently.
Speaker Change: Alright, thanks, so much to keep doing it you're doing great. Thank you.
Tony Bancroft: Thanks, Tony.
Operator: One moment for the next question.
Speaker Change: Thank you one moment for the next question and the next question is coming from the line of Tim.
Timna Tanners: And the next question is coming from the line of Timna Tanners of Wolf Research. Your line is open. Hey, good morning. Good morning. So I wanted to just ask a high-level question. So given that you had a strong first quarter, you just told us there's an additional $10 million of revenue from recent acquisitions, but you didn't change your full-year guidance, and you also said that C&D market seems to be improving, which would be a big cyclical part of your business typically. So I guess the question is, what does it take to get more positive on the full year with all those components?
Speaker Change: Tanners of Wolfe Research your line is open.
Tim Tanners: Hey, good morning.
Speaker Change: Good morning.
Speaker Change: What gets us to ask a high level question. So given that you had a strong first quarter you just told US there is an additional $10 million of revenue from recent acquisitions.
Speaker Change: You didn't change your full year guidance.
Speaker Change: And you also said that sandy market seems to be improving which would be a big cyclical part of your business. Typically so I guess the question is what does it take to get more positive on the full year with all of those components is it just more time or is there anything specific you are looking at well, we'd really like you to be able to predict what's going to happen next with the Trump administration.
Timna Tanners: Is it just more time, or is there anything specific you're looking at?
John Casella: Well, we'd really like you to be able to predict what's going to happen next with the Trump administration, right? If you could do that, we could probably get a little more, you know, a little more aggressive. Yeah. But it's a good point. Like, over the years, we just really haven't changed guidance all that often in the first quarter. It's just not something – unless there is something really out of the norm, we typically keep away from it. We're trending mid to high range across all categories, and it's a nice start to the year for us.
Speaker Change: Ministration or it could do that we could probably get a little more.
Speaker Change: A little more aggressive.
Speaker Change: It's a good point over the years, we just really haven't changed guidance all that often in the first quarter is just not something unless there is something really out of the new RMB. We typically keep away from EMEA were trending mid to high range.
Speaker Change: Across all categories, and it's a nice start to the year for us.
Ned Coletta: And we're hopeful that, you know, given where we sit, we'll be in a position to hopefully raise guidance in future quarters. But it's a little early in the year from our vantage point to do that. Yeah, and our guidance that we initially laid out back in February, our organic growth was three to five percent top line revenue. So it's a bit of a wait and see at this point in terms of us getting through the year, more visibility to roll off in the landfills as we enter the next several months. So more to come.
Speaker Change: And we're hopeful of that.
Speaker Change: Given where we said we will be in a position.
Speaker Change: Hopefully raise guidance in future quarters, but its a little early in the year from our vantage point to do that in our guidance that we initially laid out back in February our organic growth was 3% to 5% top line revenue.
Speaker Change: So it's a bit of a wait and see at this point in terms of us getting through the year.
Speaker Change: More visibility to roll off in the landfills as we as we enter the next several months so more to come.
John Casella: That makes sense. Thank you. And I'm similarly wondering if some of this uncertainty that you reference is impacting your acquisition candidates or how they're, you know, looking at their business I don't think that there's, you know, we really haven't seen much of an impact at this point in time. I think we spend a lot of time building relationships with, you know, people in the industry. I don't know that there's anything specific that we're seeing that's, you know, that's causing anything one way or the other in terms of movement one way or the other, more positive or negative at this point in time.
Speaker Change: That makes sense. Thank you and then similarly I.
Speaker Change: I'm wondering if some of this uncertainty that you reference is impacting your acquisition candidates, Sir how theyre looking at their business feature.
I don't think that there is.
Speaker Change: We really haven't seen much of an impact at this point in time I think we spend a lot of time building relationships with.
Speaker Change: People in the industry.
Speaker Change: I don't know that Theres anything specific.
Speaker Change: That we're seeing.
Speaker Change: Causing anything one way or the other in terms of movement, one way or the other more positive or negative at this point in time.
Timna Tanners: It's really more steady as you go in terms of what's happening from an M&A standpoint. You know, there could be some implications, obviously, from a tax perspective, but there's nothing really of any significance from an impact standpoint on M&A. I appreciate it. Thank you very much. Thank you.
Speaker Change: It's really more steady as you go in terms of what's happening from a M&A standpoint.
Speaker Change: There could be some implications obviously from a tax perspective, but.
Speaker Change: There's nothing really of any significance from an impact standpoint on M&A.
Speaker Change: Okay I appreciate it thank you very much.
Speaker Change: Thank you.
Operator: This does conclude our Q&A session for today.
Speaker Change: Thank you. This does conclude our Q&A session for today I would like to turn the call back over to John Casella for closing remarks. Please go ahead.
John Casella: I would like to turn the call back over to John Casella for a closing remarks. Please go ahead. Thanks everybody. I look forward to you all joining us for our second quarter conference call in July. Thanks everybody. Have a great day.
Speaker Change: Thanks, everybody and look forward to your joining us for our second quarter conference call in July.
Speaker Change: Everybody have a great day.
Operator: Thank you for joining the conference today. You may all disconnect.
Speaker Change: Thank you for joining the conference today, you may all disconnect.
Okay.
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