Casella Waste Systems reports revenue growth
Casella Waste Systems Inc., a regional solid waste, recycling and resource management services company based in Rutland, Vermont, has reported its financial results for the three-month period ended June 30.
The company reports revenue growth of 7.6 percent, or $11.6 million, compared with the second quarter of 2017, for total revenue of $165.6 million for the quarter. Overall solid waste pricing for the quarter increased 4.3 percent, driven by strong collection pricing (up 4.9 percent) and robust landfill pricing (up 4.1 percent) from the same period in 2017.
While the waste side of Casella Waste Systems performed well in the second quarter, the company’s recycling business was challenged by declining commodity pricing for paper and cardboard. “Our average commodity revenue per ton was down roughly 55 percent year over year in the quarter and down roughly 12 percent sequentially from the first quarter to the second quarter,” John W. Casella, chairman and CEO of Casella Waste Systems, says.
He continues, “Commodity prices have stabilized in June and into July, and we are pleased that our trailing SRA (Sustainability/Recycling Adjustment) fee is now fully recovering higher recycling costs in our hauling operations, albeit the program is designed to recover costs and as a result has pressured margins.”
Casella says the company still is absorbing commodity pricing risk on several legacy third-party processing contracts at its material recovery facilities (MRFs). he adds that Casella Waste’s variable costs have increased because it has had to slow processing lines to improve quality and was paying higher costs to transport commodities to new markets. “Looking forward to 2019,” he says, “we expect recycling to provide a positive tailwind even if commodity prices stay at historically low levels as several third-party recycling processing contracts will reset over the next 12 months.”
Casella Waste Systems reports net income of $1.7 million for the quarter, $55.4 million more than in Q2 of 2017.
More details on Casella Waste’s financial report are at www.RecyclingToday.com/article/casella-waste-systems-q2-2018-financials.
Bin makers agree to offer standardized recycling labels
Seven makers of residential recycling bins have agreed to offer recycling education labels designed by Minneapolis-based nonprofit organization Recycle Across America (RAA) for customers who order them.
The North America-based bin manufacturers are Bearsaver, Bigbelly Smart Waste and Recycling Systems, CleanRiver Recycling Solutions, EZ Dump Commercial, Landmark Studio & Design, Max-R and Securr. The companies have agreed to offer the stickers at the original equipment manufacturer (OEM) level on recycling, compost and trash bins ordered by customers.
RAA says its labels are designed to make it easy for the public to recycle properly and to help eliminate the public’s confusion at the bin, which has been pointed to as a cause of high contamination rates in recyclables collected in curbside programs.
“This a historic moment to have these leading bin manufacturers come together to promote and offer the standardized label solution to help recycling thrive,” says Mitch Hedlund, RAA founder. “[Having] these great bin manufacturers step up to fix the public’s confusion at the bin with the standardized label solution [is] critical at this time.”
TFC Recycling terminates contract with Virginia city
Chesapeake, Virginia-based TFC Recycling has decided to terminate its contract to process recyclables collected through the curbside recycling program of the city of Norfolk, Virginia.
According to an online article from Norfolk-based WTKR-TV, TFC Recycling pointed to challenges in exporting collected material with high contamination rates, even after processing it.
In 2017 and 2018, China has increasingly tightened its restrictions on plastic scrap imports, and this year several nearby Asian countries also have erected barriers to these imports.
The contract between TFC Recycling and the city of Norfolk allows the recycler to opt out with three months’ notice, according to the TV station.
Norfolk is reportedly seeking a new material recovery facility (MRF) operator to accept its recyclables by November.
The TV station quotes a TFC Recycling vice president who says items that don’t belong in a recycling bin have become commonplace in recycling bins in Norfolk and some other cities served by the company. The station’s reporters say they saw “a basketball, luggage and lots of plastic bags” among the unwanted items at a TFC Recycling MRF.
TFC Recycling Vice President Paul Stacharcyzk also asked viewers and readers to avoid placing pizza boxes and other items contaminated with food into the bin, since “there’s no market for that.”
The report indicates TFC Recycling and the city of Norfolk could re-enter a contract, but TFC Recycling’s Stacharcyzk tells the station that Norfolk residents will have to concentrate on placing exclusively “paper, bottles and cans” into bins for the agreement to work.