Good day, thank you for standing by. Welcome to the Casella Waste Systems, Inc. Q4 2021 conference call. At this time, our participants are on a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. Please be advised the call is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your host today, Joe Fusco. Sir, please begin. Thank you for joining us this morning and welcome. With us today are John Casella, Chairman and Chief Executive Officer of Casella Waste Systems. Ed Johnson, our President and Chief Operating Officer. Ned Coletta, our Senior Vice President and Chief Financial Officer, and Jason Mead, our Vice President of Finance. Today we will be discussing our 2021 fourth quarter and year-end results. These results were released yesterday afternoon. Along with a brief review of those results and an update on the company's activities and business environment, we will be answering your questions as well. First, as you know, I must remind everyone that various remarks that we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factors section of our most recent annual report on 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 as of 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. Also, during the call, we will 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 available in the appendix to our investor slide presentation, which is available in the Investor Section of our website at ir.casella.com. With that, I'll turn it over to John Casella, who will begin today's discussion. Thanks, Joe, and good morning, everyone, and welcome to our fourth quarter 2021 conference call. We are very pleased with our results in the quarter as we finish the year strong and continued to execute well against our key strategies. Ed and Ned will provide color on the quarter, but I would like to focus my comments on performance for 2021, our forward outlook, and our strategy. In August of 2017, we laid out our multi-year 2021 strategic plan. The plan included key strategies most relevant to driving shareholder value, along with a financial framework that provided measurable targets to track performance. As we exit 2021, I truly could not be prouder of what we have achieved. As a result of the hard work, focus, and discipline across the organization, we exceeded all key metrics of the 2021 plan. As an outcome, we grew the business meaningfully in 2021 through our pricing programs, operating initiatives, and growth strategy. For the year, revenues were up nearly 15%, adjusted EBITDA improved over 18%, and adjusted free cash flow increased roughly 38%. Our performance reflects continued strong operational execution within our base business, combined with growth through acquisitions. During 2021, we closed on 10 acquisitions with $88 million of annualized revenues. In the first 45 days of 2022, we've closed on five additional tuck-in acquisitions with approximately $4 million of annualized revenues that have a great strategic fit. As our momentum carries into 2022, we have a plan that aligns with our recently created 2024 strategic plan. The key strategies of the 2024 plan are very much consistent with those of the 2021 plan. They're as follows. Number one, increasing landfill returns. Driving. Number two, driving additional profitability in the collection operations. Third, creating incremental value through Resource Solutions, and fourth, allocating capital through return-driven growth. To bolster our ability to execute against these core strategies, we're introducing the 5th, which is strengthening the key foundational pillars. The four foundational pillars are as follows. Number one, our people. Number two, our technology. Three, sustainable growth strategy, and four, our facilities. In quickly touching on the foundational pillars from a people perspective, we understand the importance of reinforcing our core values while investing in our culture and team with technical training programs for key frontline roles. Leadership development, incentive compensation programs aligned with long-term goals. Great examples of our recent success here are our CDL school and career paths initiatives, which has helped to stabilize our workforce during a challenging labor market. As it relates to technology, we're making select investments that drive and support profitable growth. This is evident within our collection operations as we are making continued investment in reroute optimization, onboard computers, and automation programs that are driving margins. Execution against our key strategies is also supported by our sustainable growth initiative. We have further integrated our sales, marketing, engagement, and customer care teams to drive better alignment across our sustainable service offerings as we seek to enhance profitability, retain key customers, and grow the business further in a manner that also enables our customers and society to meet the sustainability goals and needs. Finally, from a facilities perspective, we're prioritizing and allocating capital spend in a manner that meets our long-term safety, operational, and strategic needs while creating a more welcoming and accommodating experience for all of our people. I'll provide an update on the core strategy supported by the foundational pillars. Our landfill assets are positioned well to continue to help meet the disposal needs of a capacity-constrained Northeast. Our pricing programs are working well to offset cost inflation, and our operating programs, coupled with investment in innovative technology, are focused on further driving margin expansion. As we look out over the next few years, we believe there to be a positive backdrop to drive further value. We continue to focus on improving the blend of our customers to increase the quality of revenue at our sites. In fact, we are experiencing some nice sequential trends here through January 2022 as it relates to continued improvement of our average price per ton. Landfill volumes remain lower than pre-pandemic levels by over 300,000 tons. This is primarily isolated to volumes in our New York facilities from and in around New York City. Our expectation in 2022 is that we will only experience a modest recovery of these tonnages. We also continue to advance key permitting and expansion efforts, including focusing on developing future disposal capacity, such as our rail landfill. Our McKean Landfill rail project, which we are targeting to bring online in late 2023 or early 2024. We are also continuing to invest in sustainable infrastructure at our site. As an example, in 2022, we have budgeted to spend over $8 million in aggregate projects related to further reductions in greenhouse gas emissions, water management, and other environmental upgrades. Further, from an RNG perspective, we have projects in landfills and in development at two of our landfills, where a third party is making the capital investment. As these projects come online over the next year, we will benefit from gas royalties. Moving to the collection business. Our collection business continues to perform well. We are focused on several key areas, including pricing programs that offset inflation, improving operating efficiencies to drive margin expansion, service excellence, and continued investment into our people to drive employee attraction, retention, advancement, and engagement. From a pricing perspective, we advanced positive price in 2021 as cost inflation has increased. We have calibrated our 2022 pricing programs accordingly, and in January, most of our 2022 budgeted pricing was executed. The early indicators are favorable in that there has been limited pushback from our customers. Pricing levels exceed our core cost inflation and is meaningful sequential improvement through January in our pricing. We will continue to monitor our costs and the inflationary environment throughout the year and take further action if needed. Next, Resource Solutions. Our recycling processing operations and our non-processing business units are performing extremely well. From a recycling perspective, our business model is economically and environmentally balanced. We have removed much of the risk related to recycling commodity market through our fee programs and contract structure. This has allowed us to generate acceptable returns that are more stable over time, which better position us to make continued return-driven capital investments into our recycling infrastructure. In 2022, we will complete an $18 million equipment upgrade at our Charlestown, Massachusetts, recycling facility, which is one of the largest in the country. This significant investment ultimately strengthens our ability to continue to meet the sustainability needs of the greater Boston market. This upgrade will improve throughput, operating efficiencies, the quality of our end product while driving higher margins. It will also introduce proven technology, including several robotic machines on the line. In addition to this project, we're investing over $1 million in other select robotics at other recycling facilities, which reflects our continued dedication to our sustainability services. We will continue to experience a great deal of positive momentum and growth related to our non-processing operations as well. Here, we provide resource management services to larger, more complex customers with a wide array of sustainability needs. Now I'd like to highlight our capital allocation and growth strategy. As I mentioned, 2021 was another solid year of execution against our growth strategy. We completed 10 acquisitions in the year, as well as completing a refinancing of our credit facility, which positions us well for continued growth. 2022 is off to a nice start, and five tuck-in acquisitions that we have closed thus far in the year will integrate nicely with our existing operations. As always, we're focused on the seamless transition of our new customers and employees. We welcome all of them to the Casella team. Our pipeline remains strong. We're actively working on several opportunities in various stages. Wrapping up, as part of our 2024 plan, we have established a target of adding greater than $30 million of annualized revenues through acquisition or development opportunities while maintaining leverage below 3.25x. We've also maintained our goal of growing adjusted free cash flow by 10%-15% per year. Our 2022 guidance aligns well with our 2024 plan, and we anticipate continued execution against our key strategies. We're excited about the future as we see a pathway of continued growth that will drive further value. With that, I'll turn it over to Ned. Thanks, John. Revenues in the fourth quarter were $241.8 million, up $41.6 million or up 20.8% year-over-year, with 11.7% of the year-over-year change driven by acquisition activity and the remainder from organic growth. Solid waste revenues were up 18.9% year-over-year, with price up 4.3%, volumes up 2%, and acquisition growth of 12%. As expected, our price growth improved again sequentially from the third to the fourth quarter. Revenues in the collection line of business were up 18.3% year-over-year, with price up 4.8% and volumes slightly up. Revenues in the disposal line of business were up 19.3% year- over- year, with price up 3.3%, volumes up 5.9%, and the remainder acquisitions. Landfill pricing was up 4% year- over- year, with landfill tons up 4.2%. We still have a negative basis to pre-COVID tonnage levels of roughly 300,000 tons. Resource solutions revenues were up 26.4% year- over- year, with 8.3% from higher recycling commodity prices, 10.7% from growth from acquisitions, and the remainder from higher processing and non-processing volume growth. Commodity prices were up year- over- year on higher cardboard, mixed paper pricing, higher metals pricing, and higher plastics pricing. However, from September 2021 through January 2022, commodity prices have dropped by roughly 30%, with the declines driven by plastics and fiber pricing. Adjusted EBITDA was $51.4 million in the quarter, up $8.8 million year-over-year. Adjusted EBITDA margins were 21.3% for the quarter, flat year-over-year, as acquisitions negatively impacted margins by 35 basis points and fuel costs net of our E&E fee negatively impacted margins by 11 basis points. Excluding our acquisition impacts, adjusted EBITDA margins were up roughly 35 basis points year-over-year, with our pricing programs and cost efficiency efforts offsetting the rising inflationary pressures. Solid waste adjusted EBITDA was $43.7 million in the quarter, up $5 million year-over-year, with collection and disposal adjusted EBITDA both up year-over-year. Resource Solutions adjusted EBITDA was $7.6 million in the quarter, up $3.7 million year-over-year, with improvements from recycling, organics processing, and non-processing operations. Cost of operations in the quarter was up $29.6 million year-over-year and up 80 basis points as a percentage of revenue, with most of the increase driven by acquisitions, and we'll get into some additional details. General and administrative costs in the quarter were up $3.3 million year-over-year or down 104 basis points as a percentage of revenues, with the majority of that coming from changes in the timing of incentive compensation. Depreciation and amortization costs were up $5.6 million year-over-year, mainly due to higher depreciation on trucks related to our fleet plan, higher amortization on higher landfill volumes, and higher amortization of intangibles associated with acquisition activity. Our income tax provision was $2.5 million in the quarter. This is actually up $56 million from the same period in 2020. As you may remember, we had a $55 million non-recurring benefit to income taxes last year due to the reversal of a valuation allowance. On December 22nd, we completed an amendment and restatement of our senior secured credit facility. With this refinancing, we added five years of tenor to our credit facility, reduced the pricing by 12.5 basis points, added $100 million of capacity to our revolver, and created a LIBOR transition pathway. As of December 31st, we had $562.6 million of debt, $33.8 million of cash, and liquidity of $305.8 million. Our consolidated net leverage ratio was 2.35x. Our balance sheet is in great shape and positions us very well to continue to grow into the future, while also providing stability in this rising interest rate environment with our fixed interest rates on approximately 72.5% of our debt today. Net cash provided by operating activities was $182.7 million for the fiscal year, up $42.8 million year-over-year, mainly driven by higher operating results and positive changes in our assets and liabilities year-over-year. Adjusted free cash flow was $95.3 million for fiscal year 2021, up $26.2 million or up 38% year-over-year. As stated in our press release yesterday afternoon, we announced guidance for fiscal year 2022 by estimating results in the following ranges. Revenues $980 million-$995 million, adjusted EBITDA of $228 million-$232 million, and adjusted free cash flow of $104 million-$108 million. As we stated yesterday, our 2022 guidance ranges assume a stable economic environment continuing from the fourth quarter of 2021 through the remainder of 2022. In addition, our 2022 guidance includes $55 million of revenue growth from the rollover impact of acquisitions completed in 2021 and those already completed in early 2022. However, our guidance does not include the impact of any acquisitions that have yet to be completed. Our pricing programs continued to increase sequentially from late 2021 into early 2022, and we expect solid waste pricing of 4.5%-5% in fiscal year 2022. We have already rolled out the vast majority of our planned pricing for 2022, and we have not experienced any meaningful pricing rollbacks. We believe that we have established an appropriate pricing plan for 2022 that positions us well to offset inflationary headwinds while still improving margins through our investments in technology and core operating programs. Our internal rate of inflation is currently running at roughly 4.1%. However, if our cost inflation increases further, we have great flexibility to advance additional price increases on roughly 70% of our collection book of business. In addition, our floating energy and environmental fee effectively offsets most of our fuel exposure. Overall, we expect adjusted EBITDA to be up 12%-14% year-over-year, with roughly 40 basis points of margin expansion. Given the timing of acquisition activity in 2021 and the expected year one margin headwinds from these acquisitions as we complete the integration and drive synergies, we expect margins to be flat in Q1 and build throughout the rest of the year. As John stated, we have several exciting Resource Solutions projects planned for 2022, including the full equipment upgrade to our Boston, Ma recycling facility and two renewable gas projects at our landfills, where a third party is making the capital investment and we will receive the gas royalties. In addition, we expect an income statement tax provision of roughly 27% in 2022. However, our cash taxes are expected to remain at roughly $4 million in 2022. In addition, we have roughly $99 million of net operating losses remaining as of December 31st. With that, I'll hand it over to Ed. Thank you. Yeah. Thanks, Ned, and good morning, everyone. We finished the year strong. We're excited about our growth and our positioning going into 2022. All our operational improvement programs are building momentum. With 20% more revenue now than Q4 a year ago, there is more opportunity to apply these proven programs to new divisions. Having said that, I know everyone is focused on inflation, pricing, and our ability to maintain margins, so I'm gonna concentrate my comments accordingly. For the quarter, on a consolidated basis, cost of ops as a percentage of revenue increased 78 basis points and adjusted EBITDA margins were roughly flat. Acquisitions accounted for an 80 basis point increase in cost of ops as a percentage of revenue and a -35 basis points in EBITDA margins. The margin dilution on the pass-through of higher fuel cost accounted for another 11 basis points headwind, so cost of ops and EBITDA margins net of these items improved about 13% and 46 basis points, respectively. As I've discussed on prior calls, acquisitions will generally hurt our margins for the first couple of years until we put in our operating programs, introduce technology, improve equipment solutions for the services provided, and execute on synergies. The best example of this is our Rochester operation. I looked at the financials for 2021, and margins for Rochester are now almost exactly the company average. We accomplished this by implementing our best practices, converting to the most efficient equipment to service that market, and using our technology to streamline routes. I'm very confident in our ability to execute, but it takes a little time. About half of our revenue comes from our collection operations, and we had a great quarter from a bottom-line perspective. Cost of ops in this line of business increased 130 basis points as a percentage of revenue compared to Q4 last year, but acquisitions gave us a 146 basis point headwind. The 4.8% in price that we achieved in the quarter was enough to keep cost of ops on a same-store basis on a positive trajectory. Costs continue to rise, and it is very important that we keep up with these increases with our pricing programs. We've done some work to identify an inflation factor specific to Casella. Keep in mind that things like fuel and environmental cost inflation is passed to the customer in fees that do not factor into our price stat. Looking at CPI isn't really the best indicator. By tracking our internal Casella cost index, we can react quickly to protect our margin. As Ned has mentioned, a substantial portion of our collection pricing is open to further price adjustments should our costs continue to climb. As John said, we have just completed our January APIs. Customer pushback has been relatively muted, and we remain confident in our ability to maintain core margins. We expect our various operating initiatives, which include increased automation, expansion of our use of onboard computers, and ongoing computer-aided routing improvement projects, will allow us to continue our margin improvement trends that we have attained over the past few years. The disposal line of business, which includes our landfills and transfer station network, saw our cost of ops increase by 300 basis points this Q4 versus the same period a year ago. Acquisitions accounted for about 182 basis points of this increase. On a same-store basis, we see some margin compression on rising costs and have passed through price increases to recover margin at the start of 2022. The higher effect of acquisitions on our disposal margins relates to an intentional mix change I'd like to talk about. We have strategically acquired transfer stations in new markets that will eventually allow internalization into our existing landfills, benefiting economies of scale and making the landfills more efficient. These transfer stations, coupled with expanded permits at some of our landfills and increased utilization of the McKean site, are expected to accelerate contribution from this line of business over the next few years. Our Resource Solutions is a totally different story as cost of ops improved by over 300 basis points on strong commodity prices and great execution on the business plan. In our business model, we share revenue with our customers on the upside over certain thresholds, so higher commodities give us more revenue to spread over our operating costs. Commodity prices fluctuate over time, and our fee structure has protected downside swings. Our real success in this line of business comes from efficiency improvements in the processing of material and whether it be recyclables or biosolids. Every year, the Solutions team recommends various improvements in processing technology to improve our efficiency. This year, we are very excited about the coming upgrade in our flagship Charlestown facility that John mentioned. The team has done a great job helping to design the new layout in a tight footprint to take advantage of the latest technology to improve throughput and increase the level of automation, reducing cost while increasing much-needed capacity. I'm happy with the finish to a great year and look forward to continued progress in 2022. I wanna take this opportunity to thank and congratulate all of the Casella team on a job well done. With that, I'd like to turn it back to the operator to start the Q&A. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by. We compile the Q&A roster. Our first question comes from Sean Eastman from KeyBanc Capital Markets. Your line is now open. Hi, gentlemen. I just wanted to start on the 2024 plan just at a high level. It kinda sounds to me like don't fix what ain't broke kind of message around the, you know, 2024 strategy. Sounds like maybe human capital is a, you know, bigger focus. You juiced the M&A target a little bit. But is that kind of a fair characterization here? I think it's a very fair perspective, Sean. I think that, you know, clearly over the last few years, I think everyone has got a focus on people and HR. It's a much higher priority, and certainly attracting drivers and mechanics retention. We've got to do everything that we can as an industry to attract as many people coming out of high school as we can that are not going on to college. You know, the people, the technology, facilities, those pillars really help us to drive the overall performance of the business. When we sat down to look at the strategic plan, the core strategies are working amazingly well. Underneath those, there are sub-strategies that we're focusing capital resources on people resources. We also took a good hard look at our growth over the last few years. We've grown from 1,600 people to 3,000 people in less than three years. As we look around to be successful for the next three years, next 10 years, we really do believe we need some additional investment in key foundational elements, and that's where that part of the plan has emerged. There's not like some radical shift there or huge dollars. It's just kind of taking what we're doing, codifying it, and improving it and really just making sure everyone's rowing in the same direction. Okay. Got it. Very helpful. The comments around the intentional mix shift just associated with the transfer stations and the upcoming disposal capacity coming online, can you just sort of explain that in a little bit more of a simpler way and you know how much of a margin tailwind that dynamic is over the coming years? I just wanna make sure I understand what you mean there. Yeah. Happy to do that. If you look in our market, everybody knows that disposal capacity is very limited and things are shifting. States like Massachusetts are looking to export all their waste. We're now down in Connecticut, they're struggling with their disposal plan. What are you gonna see in the market over the next few years, you're already seeing it, you're gonna see it more over the next few years, is a move towards transfer stations, including rail transfer stations, to get waste to the existing sites because they're not permitting any new ones. The plan is we need to expand the existing sites. We do have a lot of permitted capacity at McKean as well, and it's time to take advantage of that. To get it there, we have to strategically place ourselves in the market where the disposal crisis is, so that we have transfer stations to move that volume to these landfills. Another example of this, Ed, is our investment in Buffalo, New York. We've purchased two transfer stations there, and it's about 40 mi-50 mi away from our Hyland landfill. There's a landfill in the Buffalo market that will be closing in the next several years that takes 400,000 tons-500,000 tons a year. At the same time, we're working on an expansion on our Hyland landfill to take it from 400,000 tons a year to 1 million tons a year. You know, intentional moves like this of looking at markets that will be capacity constrained, adding assets like transfer stations that can allow us to vertically integrate and build our business, and as Ed said, the McKean rail strategy are parts of what we're looking at intentionally over the next couple of years to drive great organic growth. You know, the idea there that, you know, you can drive a lot of that growth from disposal, which is higher margin. Exactly. It gives us a platform for growth and integrated growth, from recycling, resource management to, you know, collecting waste, to disposing of it. If you don't have a full set of solutions, it's hard to gain new customers, and it's hard to grow that base. You know, finding ways to make sure we are secure in our ability to handle waste and recyclables over the long term is important to us. Your question about the margin effect, which is what I was trying to address, was the timing issue here. We've expanded in the transfer stations, which as everyone knows, is not where the margin is. The margin is at the landfills. Once we start internalizing that volume from these transfer stations into our landfills, you see the margin effect for the company. Gotcha. Okay, great. Super helpful, guys. I'll turn it over there. Thanks, Sean. Thanks. Thank you. If you are asking a question, we please ask that you limit yourself to one question and one follow-up. Again, that's one question, one follow-up. Our next question comes from Tyler Brown from Raymond James. Your line is now open. Hey, good morning, guys. Good morning. Good morning, Tyler. Hey. Hey, thanks for some of the color in the prepared remarks about pricing broadly, but can you just talk a little bit more about landfill pricing, outlook in 2022 and even beyond that? I know things have slowed a bit in 2021 on the New York City dynamics. It doesn't really sound like those volumes are tightening up that quick. Can you just talk a little bit more specifically about the outlook longer term there? Yeah, it's interesting. We've talked about this for a few quarters where sometimes statistics tell the story perfectly, sometimes they don't. In a reported landfill pricing stat has maybe not fully told the story. It was 4% in Q4, which is up from 3.5% in Q1 2021, so it has been increasing. It's over 4% into January. Probably more importantly, our average pricing stat was over 6% in Q4 and increased into January. You gotta really the way we calculate stats, we talked about this last quarter, same customer, same site, same type of waste, how much we've changed it year-over-year. We're changing customers, we're changing mixes, we're blending up our book of business, which is creating more profitability. That doesn't really show up in the price volume the way we have it calculated. The average stat shows it better. We're excited with the pricing plan for the year. We've gone out to the street with most of it in collection and at the landfills, and it's sticking. If we see additional opportunity to push price, either to cover more inflation or to just advance pricing in the market, we'll look to do that again in 2022. Okay. That's extremely helpful. I do wanna come back to the margins and the outlook. I think you're looking, and correct me if I'm wrong, but maybe 40 basis points of improvement next year, but that is despite some dilution from layering in that M&A. You talked about price exceeding inflation, but can you just talk about some of the broader puts and takes to margins? Is there anything that's kinda one-timey that we should think about? Yeah. If we look at 2021, just as a starting point. Our margins were up 75 basis points year-over-year. Up strong in the first half of the year, second half of the year a little bit more muted with more of the acquisition overhang. For the full year, we had an acquisition overhang of about 30 basis points. When you net those two together, our margins were up over 100 basis points for the full year. You start to get under the hood of what drove that in big pieces. As Ed said, our core investments in technology operating programs drove about 30+ basis points. Recycling, our SRA fee, those programs drove about 35 basis points, and then pricing drove 50 basis points-60 basis points. Then there's a couple, like, one-timey things and other moving pieces. Those are the big buckets. As we enter this next year, Jason, how much acquisitions overhang into 2022? Yeah. Thanks, Ned. In 2022, there's, on the full year, about a 25 basis point headwind as it relates to acquisitions. Okay. In the first half of the year, it'll be more dramatic at about 35 basis points in the first half of 2022 and about 15 basis points in the second half of the year. Yeah. Based on a rollover. As we look to the year, we expect recycling from the slowing from September through today to actually be positive year-over-year in the first half of the year, but then negative in the second half of the year, unless something really changes. You know, no other really big moving pieces. We expect that same kind of 30+ basis points from the core operating programs, and we expect pricing to do the same thing, 40 basis points-50 basis points of improvement. Okay, now if I can squeeze one last one here real quick. You talked about the Boston MRF upgrade. Is that capital spend in the $15 million add back to free cash flow, or is it not? No. Secondly, I missed it, but okay, it is not. Okay. That's helpful. Can you talk about what the $15 million is on the add back, which I think is WasteUSA, but I'm not sure. Secondly, I may have missed it, but when does the Boston MRF come online or when the retrofit is done? How much of an EBITDA contribution is that once it's done? Okay. Sorry. Yeah. The first Boston MRF investment of $18 million is actually spread between 2021 and 2022. About $6 million-$7 million happened this last year. We didn't add it back. It's just in maintenance, what we call maintenance capital or, recurring CapEx. The additional investment next year of $11 million-$12 million in 2022, I'm sorry, is just in our maintenance recurring capital. It's not something we're adding back. Okay. There really is only one category of capital that we're adding back this year, and that's associated with the integration of acquisitions. As we've explained in the past, when we look at a pro forma for an acquisition and we buy a business, in the first 18 months, we'll over-invest in that business to drive synergies, to get into our systems, to consolidate facilities, and that's what that $15 million is associated with. In WasteUSA, it's done. Okay. Very successful project, three years in the making. The cell is open. Waste is being placed, and that will not be, you know, added back into the future. Okay. EBITDA contribution. Oh, sorry. Once upgraded. Yeah. You know, it's several million dollars once it's all done, but we have to ramp additional customers to the facility. We're adding about 35% new capacity to the facility by increasing throughput and being more efficient with less people. We're not just gonna snap our fingers in 2022 and have more tons, but it will allow us to grow into that over a couple of years. You know, you'll see less downtime, less maintenance, and there's, you know, $1 million of benefits there. In the year, us being shut down for six to eight weeks and having to move recyclables all over the Northeast, it's gonna suck up all those savings. You look out over the next couple years, we've got some really nice built-in organic growth there to build that business and meet needs. Okay, great. I'll hop back in the queue. Thanks. Sure. Thank you. Our next question comes from Michael Hoffman from Stifel. Your line is now open. Hi. Thank you very much. Probably back on the landfill side, I'd like to understand the juxtaposition between scarcity value of the space, so you brought that up, Ed, versus there, you know, there probably is some ceiling that gets triggered by with more competitive transfer stations at rail, so that optionality into rail. Why can't you get more price in the landfill now, given the scarcity value? Well, I think we are getting quite a bit of price, as we said earlier, Michael. I mean, we ended Q4 with over 6% average price. If you look back over the last couple years too, you'll see from a reported pricing standpoint, we had periods of 6%-7%, and those were related to some rollovers of long-term contracts. About 1/3 of the tons going into our landfills come from our trucks, 1/3 from long-term municipal contracts, and 1/3 from commercial contracts. Those municipal contracts are typically longer in nature, three to five years. What we've seen is when we roll over those contracts, we can get larger increases, and then within the term of the contracts, they're a little bit lower. The increases, sometimes they're CPI indexes, sometimes they're set indexes. You might see some periods of higher pricing, some periods of pricing more at that 5% level, as we look out over the next couple of years in that mix of our book of business. That's particularly true when you have a really large contract, and we have a couple of contracts, Michael, that are in that vein with, you know, 300,000 tons a year. There's a really nice increase in price when that contract is renewed, but then it's somewhat tied to inflation for the period of time of the contract until the renewal, and then it would be appropriately adjusted. Right. Okay. I have a second question, but I'd like to follow on this. You know, Boston renewed at, like, $94 for the burners, but the spot market's at $120 right now, and that rate of change there seems greater than when I figure out how much it costs to drive to each of your facilities, the rate of change you've been taking advantage of. That sort. It's just I wonder if you couldn't do more. I mean, it's given the scarcity value. That's where it's sort of coming from. I think it's a good question, and it's something we're continually looking at and addressing where we can address additional pricing. As you know, transport is very complex right now. There are multiple shifts of where waste is going across the Northeast as additional rail opens up and people struggle to move waste out of markets where you have closing facilities. I think from our vantage point, we just understand this is a long-term opportunity, and it's not just a one-year opportunity. You know, this pricing is gonna come for years into the future. You know, I think from our vantage point, we're adding value, we're adding margin each year, we're adding returns at the sites. If we can course correct a little higher, we'll do so. Okay. The second question is- We're also offsetting. Oh, go. I'm sorry. Go ahead. I was just gonna say, Michael, we're also offsetting substantial inflation at this point in time as well. Yeah. Fair enough. I do appreciate that, and I think that shouldn't be lost on anybody that the industry has validated. You can react to this as well as you've reacted to other things and maintain a quality underlying cash conversion. Yes. To that, the cash conversion. You have enjoyed an NOL for a long time. We're starting to whittle into it and, you know, this is, you know, the benefit of really good success. You're gonna run out of this NOL, probably three years. What, how do we think about if we're modeling a free cash flow analysis? What's that step- up? Yeah. We are taking less bonus depreciation right now, with the thought that we'll maintain more tax depreciation as the NOLs roll off, Michael. You know, as you know, bonus depreciation goes away in 2026. We were taking a lot of advantage. We're taking a little bit less advantage today, so we can keep those tax assets in place. We've also, as you well know, we do almost all of our acquisitions as asset deals, so we can take the step-up in valuation, depreciate from a tax standpoint, the assets. Willimantic was a 338(h)(10) election deal, which was a stock deal, but we treat it as an asset deal from a book standpoint, which is really exciting because it also helps to improve our tax standpoint. You're right. Probably by 2024, our NOL position's mainly consumed, and we're stepping into a more normalized cash tax pay. You'll see that step up this next year. We'll be stepping up from about $1.5 million of cash taxes in 2021 to $4 million in 2022. You'll see us step up a few million dollars each year, over the next several years, and we'll be working additional strategies to try to, you know, manage that over time. What I'm hearing you talk about is this is $5 million-$10 million, not a $20 million or $30 million thing I have to be dealing with? Yeah. You know, it really depends on the year. You know, by 2024, if we're at, like, $10 million in cash taxes, that's generally what's in our models today, but not $20 million or $30 million. Okay. That's very helpful. Thank you very much. Thank you, Michael. Thank you, Michael. Thank you. Our next question comes from Hamzah Mazari from Jefferies. Your line is now open. Good morning. Thank you. I may have missed this, but could you just remind us, you know, how much of the business is inflation-indexed, you know, how the resets work? I think you had mentioned a specific Casella inflation index, and maybe talk about how that plays into it and if that's already in the contracts. Yeah, good question, Hamzah. Nice to hear from you. Our book of business on the collection side is pretty unique, as you know, where only about 10% of our collection book of business are municipal contracts. About 25% are subscription residential agreements, where we have pricing flexibility. About 35% is small commercial customers, where we have pricing flexibility. About 15% is temporary construction roll-off. The remainder are long-term industrial roll-off contracts that typically have set escalators. A large degree of our book of business, over 70%, we have a lot of pricing flexibility. Where we do have linked contracts, about half of them are CPI-linked, and about half of them have set escalators. Those CPI-linked contracts, they vary from CPI-Us to regional CPI to some are on the trash and garbage index. Given where CPI is, those should be nice tailwinds this year. As far as the cost index that we talked about earlier, it's interesting because you see these headline CPI-U numbers of 7.5%, and then you dig into our business or anyone in the trash business, and it's not perfectly reflective of what we do. You start to look at the components of that 7.5%, and there are things like cars and, you know, other kind of categories that aren't exactly related to our business. We created our own internal CPI index looking at key categories to just make sure we take out any sort of price volume indicators and where our aggregate basket is sitting at 4.1% today, which is quite interesting because the Bureau of Labor Statistics trash and garbage index is right at 4% in January. Our internal index is sitting right on top of what the BLS is predicting for the industry as well. Very, very helpful. Then just my last question, and I'll turn it over, is just on the. I think you guys highlighted free cash flow growth 10%-15%. Correct me if I'm wrong, but it feels like you've been growing over 10% free cash flow growth recently. And then it also feels like you have more self-help on your solid waste margins. So maybe talk about you know. Maybe just flesh that out. Is that conservatism or maybe we're missing something else? Yeah, good point. We have been growing higher than 10%-15%. We've been growing closer to 20% for several years now. I guess if you look at just core organic growth, we're growing more like 10%-12-ish%, and then you add in acquisitions, that accelerates us greater than the 15%. As we kind of guide that 10%-15%, we're not really including acquisitions. As Michael mentioned a few minutes ago, we are gonna have a little headwind from cash taxes over the next number of years. That will be, you know, not moderating significantly our growth rate, but will moderate it a little bit. I think we're really comfortable with that 10%-15%, and we'll look to hopefully beat it with some acquisitions as well. Got it. Thank you. Thank you, Hamzah. Thank you. Our next question comes from Michael Feniger from Bank of America. Your line is now open. Hey, everyone. Thanks for taking my questions. You may have covered this, Ned. Your CapEx guide for 2022, I think, is around $120 million. That's actually down from 2021. With all the investments and growth opportunity, any reason why we're not seeing that capital spend and the level of investment higher with where you guys are in the cycle? Yes. We have pretty unique investments happening in 2021, the largest of which was getting open this 25-year cell at WasteUSA, which is a real unique one-time investment for us. You don't usually, you know, open up an entire 25-year period like that. That was a bit of the reason. I don't know, Jason, is there anything else we're seeing there? There's no kind of, like, major decline in any of these categories. No, it's primarily WasteUSA year-over-year. I think if you look purely at our absolute capital, less the CapEx that we add back related to acquisitions and WasteUSA last year in 2021, you'll actually see what we'll call our maintenance capital step up slightly year-over-year from about 9.5%- 10.5%. We are, you know, maintaining a consistent level of spend year-over-year, if not slightly increasing. Yeah, I think one other kind of comment there, and it goes to something Ed's really passionate about and put a lot of work into, our fleet plan, our yellow iron plan, and our facilities plan, you've got that planned out years into the future, Ed. Yeah. We have a lot of automation opportunities still in the company. I look forward to the efficiencies we gain through that fleet plan in the next few years. Great. I apologize that you guys touched on this earlier. You talked about with Hamzah that 4% of what you guys are seeing within your internal cost. Is that, Ned, what you're embedding for your guidance for cost inflation in 2022? Do you have that easing at all in the second half? Because based on the margins, you're obviously likely to see more operating leverage, it looks like, in the back half of the year. Just curious how those dynamics kind of play out. Yeah, you're right. That is in our model right now, 4% cost inflation for 2022. We don't have it easing in the back half of the year. However, the negative overhang from acquisitions moderates through the year, and that allows our pricing programs and our cost efficiency programs to add more margin through the last half of the year. Makes sense. Just to squeeze one last in. I know you guys were very early in restructuring the whole recycling model. Forgive me for asking this. How do we think about the sensitivity to commodity price? I believe you said earlier, Ned, that, you know, the fees were a 35 basis point tailwind to margin in 2021. I'm just trying to get a sense, like, what are we kinda thinking about for 2022, and how does that relate to, you know, movements we see with, you know, fiber prices, for example? Thanks, everyone. I'm gonna give you, like, the two-minute answer on this, and if you want, give me a call and I'll explain it even further. Sure. At our recycling processing facilities, we put thresholds in place, and they're equal to our fully loaded processing fees plus a margin. Those thresholds are around, let's say, $100 a ton or maybe a little bit higher, a little bit less. If commodity prices click over those thresholds, we start to share some of that additional commodity value with our customers, maybe 50/50 or a different formula. If they click below that and we can sell, say, the average basket of commodities for $70 a ton, a customer would pay us a processing fee of $30. What happened in 2021 is we clicked through those thresholds for the first time in four years. We started to accrete more money to our bottom line, and we gave more back to our customers. That 90% risk offtake that we have when we're below the threshold shifted, where we actually added more value from recycling, but we also took on a little bit more risk. If you saw recycling commodity prices drop through the floor, we would have some downside until we hit those thresholds. Once we get below the thresholds, our customers then start taking on the risk dollar for dollar. Above those, we have created some additional value in 2021. Okay. Appreciate it, guys. Thanks for running through that with me. Thank you. Yeah, thank you. Thank you. Our next question comes from Alexander Leach from Berenberg Capital Markets. Your line is now open. Hi, guys. Thanks for taking my question. Just a quick one from me. You mentioned wanting to improve customer mix to improve quality of revenue. Could you dive into that a little bit more? You know, what sort of end markets or customers does that include, and what are the characteristics that makes revenue from them high quality? I think that, you know, there's a real opportunity, you know, from a Resource Solution standpoint in terms of meeting the needs of, you know, our customers, particularly as it relates to colleges and universities, industrial customers, and municipal customers for that matter, in terms of helping them to meet their sustainability goals. That's somewhat down the middle of the fairway in terms of, you know, improving. We know where people are really trying to move the needle from a sustainability standpoint, and they understand that there's costs associated with that, and it gives us an opportunity to help solve that problem and improve our book of business as well. I don't know if you have anything to add, Ed, or Yeah, just gonna mention that there's an interesting trend over the past few years where we used to propose to colleges and universities a sustainable solution. You know, a few years ago, they'd react just based on the cost. Yeah ... at the end of the day, and not accept our proposal. In the past year or so, we're starting to see quite a bit of success because the attitudes have changed, and the colleges and universities are much more focused on the overall intrinsic value of being sustainable. We've started having a lot of success going into programs- It's the same thing from a manufacturing standpoint. Major manufacturers, major industrial customers, we're seeing the same thing. They're all trying to rethink their processes, rethink their packaging if they're, you know, packaging a product, et cetera. There's just an awful lot of activity that is lending itself to higher margin customers and people that are obviously willing to pay for those type of services. Okay, great. Thanks, guys. You're welcome. Thank you. Our next question comes from Tyler Brown from Raymond James. Your line is now open. Hey, thank you for the follow-up. Hey, Tyler. No problem. This may be a hard question, but I'm asking anyway. You're supposed to ask hard questions. Yeah. Well, you know, given that the Northeastern market is, and it's gonna continue to be a long-haul waste market, and it sounds like it's probably gonna become even more transfer-centric with the build-out of rail. I mean, how should we think about the long-term solid waste margin profile versus your peers? If they're, say, let's just call it low 30% margins, are you structurally a couple hundred basis points behind that or just any help on handicapping that? Yes, I don't know exactly the mix of our peers and their exact margins. We do know today it's a negative hit to our margins, where almost every ton we handle goes through a transfer station and gets transferred far distances to landfills or disposal sites. We have very few direct drive routes. That's not the case around the country. There are many more garbage trucks that pick up at businesses or households that go directly to disposal sites. In the Northeast, it is flowing mainly through transfer stations, which you know doesn't have a negative cash impact, but it has a negative margin impact. Right. as Ed pointed out, I mean, we saw it in our numbers this year as we mixed slightly more transfer stations for long-term strategy. It weighed on margins. Good long-term strategy, but it was a margin detractor. Yeah. Okay. All right. That's helpful. My last one, it sounds like you finished up WasteUSA. Will we see that in your airspace table in the 10-K? Yeah, it's in there already. Okay You know, we have permitted and permittable. That's been permitted airspace for the last couple years. It just wasn't built. Now it's built, waste is being placed, and it's a really big deal for us because that was complex and tough permitting, complex and tough construction cycle. We're excited to be done. Okay. All right. I'll leave it at that. Thanks, guys. Thank you. Thanks, Tyler. Thank you. We have a follow-up from Michael Hoffman from Stifel. Your line is now open. I promise you, Tyler and I aren't sitting in the same room and ganging up on you, but I'm almost repeating my question because of what he asked. By the way, I think on a national basis, it's about 40% of the volume goes direct haul, and the rest is long-haul. But why can't you price that scarcity issue through, given that if you control the gate, even if it's a long-haul gate, you control it. Yeah, it's a good question, but some of it's just math too. You made the reference earlier where transfer stations used to price at $50-$60 a ton and getting 5% or 10%. Let's say 5% on $60 was $3 a ton. If I get $4 a ton on a $100 gate rate, you know, it's now down to a 4% increase. I've improved my cash position, and I've improved profitability, but I have a lower percentage stat. A bit of that's what's happening here, Michael. As these rates have climbed really quickly, the percentage stats maybe look a little bit worse, but the dollars we're getting on the street are good. They're improving, and you see that in our numbers for the year, I mean, both from the EBITDA operating income and free cash flow standpoint. Okay. The last one for me would be, how many of your landfills are below five years of life and you're in a development mode? Clearly Bethlehem is. What else is? I think Bethlehem is the only one, I believe. Okay. Ontario's got plenty of life. Then you've got Hyland. You got the community agreement, so that's just going through the bureaucratic process in New York State. Unless something changes politically there, but it's just New Hampshire then we're worried about. It is New Hampshire. I think probably the next one is Ontario. Ontario is probably five to seven years. 2028. 2028 right now. We'll have an expansion there as well, Michael. Okay. It's Bethlehem and then Ontario. Okay. Keep in mind we did, you know, get approval and we're in the permitting process at Hyland now to move that facility. Obviously, we've, you know, just brought in McKean's capacity to the model as well. Those two factors, McKean is gonna be a great long-term facility for us as well as Hyland moving that permit from 470,000 tons- 1 million tons a year. Right. It should be less than anybody. New York is a Community Host Agreement trigger, so that's like Mount Everest to get the permit. Everything else just is bureaucratic. That's right. Okay. That's exactly right. All right. Yeah. Thanks. You're welcome. Good to see you. Thank you. I'm showing no further questions. I would now like to turn the call back over to Mr. John Casella for closing remarks. Thank you. Thanks everybody for joining us today. We look forward to discussing our first quarter 2022 earnings with you in April. Thanks, everybody. Have a great day. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.