“These are tough jobs. These are higher turnover jobs, ”he said, according to a call transcript provided by The Motley Fool. “And so this allows us to gradually reduce the workforce in these facilities, but also to produce a better product with more state-of-the-art equipment.”
Recycling now represents 4% of the Republic’s total operating income. Overall, the company posted third-quarter revenue of $ 2.93 billion, up 14% year-on-year.
The Canadian company’s recycling business grossed C $ 98.7 million (approximately US $ 79 million; all figures below are in US dollars and were converted on November 10). This was up 34% from the same period in 2020, according to GFL quarterly report.
The report noted that GFL’s Canadian and US solid waste segments both benefited from increased revenues due to the higher value of raw materials. Specifically, higher recyclable materials prices increased the revenues of the Canadian segment by $ 6 million year-over-year and the US segment by $ 3.7 million year-over-year, according to a management discussion and analysis file.
“Materials Recovery” is part of GFL’s solid waste division, which also includes garbage collection and landfill. Overall, solid waste division revenue grew 8.2% organically (excluding the impact of acquisitions) year-on-year, according to a GFL presentation. Of this 8.2%, rising commodity prices contributed 1.5 percentage points.
On a Nov. 4 conference call with investors, Patrick Dovigi, CEO of GFL, said the company likely plans to build four or five new recycling facilities over the next year and a half. He highlighted the possibilities of building MRFs to complement GFL’s existing operations in the Southeastern United States, the Midwest (Michigan was mentioned, in particular) and Ontario, according to a call transcript provided by The Motley Fool.
Material recovery now represents nearly 7% of GFL’s total operating revenues. Overall, GFL reported total third-quarter revenue of $ 1.19 billion, up 43% year-over-year. Most of the revenue growth is due to the fact that GFL has acquired other companies since the third quarter of 2020. GFL October 30, 2020 acquired Waste and recycling operations in the United States in connection with the acquisition by Waste Management of Advanced Disposal Services. Earlier this month, GFL acquired WCA Waste Corporation.
Casella waste disposal systems
The company’s Resource Solutions division, which includes recycling operations, reported sales of $ 63.3 million, up 28% year-over-year.
The Resource Solutions division includes larger scale commodity recycling and brokerage operations, organic services, and large scale commercial and industrial services. From this year, Casella no longer details its recycling results separately from others.
However, the last quarterly report notes that a large part of the division’s revenue growth is due to higher prices for recyclable materials. Of the division’s $ 13.7 million year-over-year increase in revenue, $ 6.0 million was due to higher commodity prices and $ 3.5 million to higher volumes of materials (including recyclable materials passing through the company’s FRMs and negotiated materials). The remaining increase in revenue of $ 4.2 million is due to the fact that Casella recently acquired companies with recycling activities.
The Resource Solutions division achieved operating income of $ 6.7 million, up from $ 2.2 million in the third quarter of 2020, an increase of 203%.
In an Oct. 29 conference call with investors, Ned Coletta, the company’s chief financial officer, said the average commodity price rose $ 113 per tonne year-over-year, due to rising prices for OCC, mixed paper, metals and plastics.
In recent years, Casella and other carriers have negotiated contracts that charge local governments a fee when average commodity prices drop and share the revenue from the sale of commodities when prices exceed certain thresholds. The contract structure reduces the commodity market risk for the carrier. In the appeal, Coletta said the thresholds were breached in the third trimester for the first time in many years, according to a transcription of The Motley Fool.
“We have created a balanced business model that is economically and environmentally sustainable,” company CEO John Casella said during the call. “As the prices of raw materials for recycling have increased, we have been able to benefit from the rise with our customers thanks to lower tipping costs, to a lower [sustainability recycling adjustment] costs and in the case of certain materials, a higher discount.
The Resource Solutions division now generates 26% of Casella’s operating revenues. Overall, the company reported total third-quarter revenue of $ 242 million, up 19% year-over-year.
The company’s recycling business posted revenue of $ 55.8 million, up 161% year-over-year.
According to Waste Connections’ quarterly report, revenue from sales of recovered raw materials increased by $ 28.3 million year-over-year, mainly due to higher prices for OCC products, aluminum and other fibers, higher volumes collected from residential customers and a partial recovery of commercial recycling volumes.
According to a October 29 conference call with investors, Worthing Jackman, CEO of Waste Connections, said OCC prices were on average $ 186 per tonne, up 150% year-over-year.
Prior to the announcement of its results, Waste Connections published its Sustainable development report 2021. The document notes that the company processed 1.78 million tonnes of recyclable material in 2020, up 5% from 2019. The material consisted of 611,000 tonnes of mixed / other material, 525,000 tonnes of OCC, 316 000 tonnes of blended / other paper, 109,000 tonnes of glass, 90,000 tonnes of plastic, 84,000 tonnes of metal (excluding aluminum), 39,000 tonnes of ONP and 6,000 tonnes of aluminum.
The report states that Waste Connections installed 25 sorting robots in seven MRFs in 2020.
“At the plant level, we are investing in additional optical and robotic sorters to manage the workforce in FRMs, increase productivity and improve the quality and value of recycled products through reduced contamination rates,” according to the report. sustainable development.
Recycling now represents 3.5% of Waste Connections’ operating revenues. Overall, the company posted third-quarter revenue of $ 1.6 billion, up 15% year-over-year.