Recycling now makes up 3% of the company’s revenue pie. Overall, Republic Services brought in nearly $2.5 billion in revenue during the quarter, down 6% year over year.
The Woodlands, Texas-headquartered company’s recycling business brought in $20 million in revenues during the second quarter, up 20% year over year, according to a press release.
The recycling business brings in money from charging fees and selling commodities. While the overall business was up, sales of recovered commodities, specifically, were down by about $500,000 during the second quarter, according to the company’s quarterly report. That was for a couple of reasons: The coronavirus and its associated economic disruptions meant reduced commercial recyclables volumes, and prices for plastics and aluminum were lower year over year. Those decreases were partially offset by increased OCC prices and residential collection volumes.
Recycling now makes up near 2% of the company’s revenue pie. Overall, Waste Connections brought in $1.3 billion in total revenue during the second quarter, down 5% year over year.
Vaughan, Ontario-headquartered GFL Environmental reported its recycling business provided a slight bump to its overall solid waste business performance in the second quarter, but the company didn’t release recycling business details.
According to an investor presentation, solid waste material volumes were down substantially during the second quarter, particularly from commercial, industrial and institutional customers.
That was slightly offset by higher recyclables prices. In an Aug. 6 conference call, Patrick Dovigi, president and CEO of GFL, noted that average commodity values were up in the quarter, driven by a spike in OCC prices early in the quarter.
The company reported total revenues of $993 million during the second quarter, up 19% year over year. According to a press release, the company said revenue growth was because of both organic growth across the company’s different businesses and added revenue from GFL acquiring other companies since the second quarter of 2019.
Advanced Disposal Services
Ponte Vedra, Fla.-headquartered Advanced Disposal Services reported that its recycling business brought in $3.0 million during the second quarter, up 30% from $2.3 million the year before. In its quarterly filing, the company said revenues increased because of “a moderate increase in recycling commodity prices.”
Recycling makes up less than 1% of Advanced Disposal’s revenue pie. Overall, the company brought in $380 million in revenue during the second quarter, down 9% year over year.
Waste Management is working to acquire Advanced for $4.6 billion. As part of the deal, which is expected to close by the end of September, GFL will acquire a number of the companies’ operations for $835 million.
Casella Waste Systems
Rutland, Vt.-based Casella’s recycling business brought in $12 million during the second quarter, up 19% year over year, according to a press release.
The company reported better commodity prices gave it a revenue boost of $2 million during the quarter, overcoming lower collection volumes. The added revenue came from the following: $1.2 million from better favorable commodity pricing, $600,000 from higher recycling processing fees, and $200,000 from the acquisition of recycling operations, according to its quarterly report.
Regarding that last point, Casella acquired a number of other companies between the second quarter of 2019 and the second quarter of 2020, so quarter-to-quarter revenue comparisons aren’t exactly apples to apples. Last year, Casella acquired nine businesses, including one with recycling operations. During the first half of this year, it acquired another four businesses, including another recycling operation.
In an Aug. 4 conference call, Ned Coletta, the company’s chief financial officer, said Casella’s second-quarter average commodity prices were up 45% year over year. That was mainly because of higher OCC prices, partially offset by lower plastics and metals prices, according to a transcript from Seeking Alpha. Coletta noted that OCC has come down from its peak in May.
Recycling now makes up 7% of Casella’s revenue pie. Overall, the company brought in nearly $189 million in revenue during the second quarter, up less than 1% year over year.
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