Latest news with #MikeBattles
Yahoo
31-07-2025
- Business
- Yahoo
Clean Harbors eyes growth plans as oil turnaround continues
This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. By the numbers: Q2 2025 Revenue: $1.55B Down 0.2% year over year Net income: $126.9M Down 4.8% year over year Adjusted EBITDA: $336.2M Up 2.6% year over year Financial picture: Clean Harbors announced Wednesday that its environmental services segment logged a 13th consecutive month of expansion in adjusted earnings before income, taxes, depreciation and amortization margin, even as some topline results declined year over year. Executives continued to tout the charge-for-oil strategy in the Safety-Kleen Sustainable Solutions business segment launched in November, saying results were ahead of expectations. 'Our favorable outlook is underpinned by a powerful combination of macro and company specific catalysts,' co-CEO Mike Battles said on the company's earnings call. Environmental services: The segment saw adjusted EBITDA increase by 4.5% year over year to $376 million. Pricing improved across the board, with Safety-Kleen Environmental Services growing revenue 9%. Incinerator utilization was 89% in Q2, excluding the Kimball, Nebraska, plant that is still ramping up. The company's adjusted average incineration price rose 7% as well during the quarter. Safety-Kleen Sustainability Solutions: The segment saw adjusted EBITDA decrease 25.6% year over year to approximately $38 million. The segment is at slightly less than half its production target for the year, but CFO Eric Dugas said the SKSS has swiftly worked through a pricing backlog in its book of business, and expects sequential improvement in Q3. 'That gives us comfort into Q3 and Q4 here that we're going to expand the profitability of the business,' Dugas said. Growth plans: The company's Kimball incinerator continues to ramp up its pace, with Clean Harbors projecting the facility will process 28,000 tons of material and contribute $10 million in EBITDA in 2025. With the buildout of that project largely complete, Clean Harbors' capital expenditures are down year over year, and it now anticipates spending $345 million to $375 million in 2025. That excludes roughly $15 million allocated for the company's Phoenix hub project, which is under construction. Looking ahead, Clean Harbors plans to continue investing in the hub and spoke model, which provides cross-selling opportunities and other synergies, executives said. PFAS update: Clean Harbors is still waiting on the U.S. EPA to release its analysis of the PFAS destruction study the two entities conducted in Utah last year. But that hasn't hindered business, even as the federal agency hints at weakening regulations around per- and polyfluoroalkyl substances. 'The market is acting as if regulations are in place, and that's evidenced in how our pipeline is growing and some of the projects that we're doing,' co-CEO Eric Gerstenberg said. The company did not share financial details of the business line, though executives said Clean Harbors is well positioned to take advantage of customer growth in the space. Policy impacts: 'The demand environment has held up well for us, even in the face of tariff uncertainty that has impacted some of our customers,' Dugas said. Executives said volume from late Q1 carried into Q2. The company also expects an extra $10 million to $15 million of tax savings in 2025 from bonus depreciation, and likely more in 2026. While executives see the new tax policy as beneficial for customers and therefore a tailwind for Clean Harbors, it's unlikely to change the company's own capital deployment plans, Battles said. Field services: Margin improved in Clean Harbors' field services segment, in part thanks to a boost from the acquisition of Hepaco last year. Battles called returns from that deal 'terrific.' Clean Harbors has opened 13 more field service branches this year as it continues to expand its emergency response business. Outlook: The company reaffirmed its guidance for both adjusted EBITDA and adjusted free cash flow for 2025. While Safety-Kleen has underperformed relative to 2024, executives expect less impact from seasonal fluctuations and a better cost structure to improve full-year results. Recommended Reading Clean Harbors exec says Safety-Kleen business 'has turned a corner' Sign in to access your portfolio
Business Wire
30-07-2025
- Business
- Business Wire
Clean Harbors Announces Second-Quarter 2025 Financial Results
NORWELL, Mass.--(BUSINESS WIRE)-- Clean Harbors, Inc. ('Clean Harbors' or the 'Company') (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced financial results for the second quarter ended June 30, 2025. 'Our second-quarter results reflect the consistent profitable growth of our Environmental Services (ES) segment, where we experienced strong demand for our disposal assets, and a stabilization of our Safety-Kleen Sustainability Solutions (SKSS) segment, where our collection strategies yielded favorable results,' said Mike Battles, Co-Chief Executive Officer. 'We improved our consolidated Adjusted EBITDA margin by 60 basis points from a year ago through lowering our overall cost structure with a sharp focus on our SG&A spend. In addition, we posted the best quarterly safety results in our history by generating a Total Recordable Incident Rate (TRIR) of just 0.40. We stand at 0.45 for the first half of the year – well on track to achieve our annual target as our programs and emphasis on working safely are helping to keep our employees protected.' Second-Quarter 2025 Results Revenues were $1.55 billion, flat with the same period of 2024. Income from operations was $210.3 million, compared with $215.5 million in the second quarter of 2024. Net income was $126.9 million, or $2.36 per diluted share, compared with $133.3 million, or $2.46 per diluted share, for the same period in 2024. Adjusted EBITDA (see description and reconciliation below) increased to $336.2 million, compared with $327.8 million in the same period of 2024. Q2 2025 Segment Review 'Despite substantial growth in the year ago quarter, our ES segment still achieved 3% growth in revenue and 5% growth in Adjusted EBITDA. This revenue growth, combined with pricing and SG&A cost controls, enabled our ES segment to achieve its 13th consecutive quarter of year-over-year improvement in segment Adjusted EBITDA margin,' said Eric Gerstenberg, Co-Chief Executive Officer. 'Top-line growth in the segment was led by Safety-Kleen Environmental Services, which rose 9% through pricing and growth in its core offerings. Technical Services revenue grew 4% on strength in disposal volumes. Incineration utilization, excluding the new Kimball incinerator, was outstanding at 89% as our facilities maximized throughput. Average incineration price rose 7% on a mix-adjusted basis. Field Services and Industrial Services performed well in the quarter, improving margins year-over-year.' 'Results in our SKSS segment were ahead of our expectations, supported by our waste oil collection strategies and success in aggressively managing our re-refining spread,' said Battles. 'We gathered 64 million gallons of waste oil in the quarter, which enabled us to hit our production goals. We believe that our shift to higher charge-for-oil (CFO) pricing, which has continued since our strategic program rollout last November, positions us well for the back half of the year. We currently expect to achieve our annual targets for this business in 2025, while reducing the volatility we've seen in recent years.' Business Outlook and Financial Guidance 'We enter the back half of 2025 with considerable momentum across our core markets, backed by a promising North American economic outlook as reshoring continues,' Gerstenberg said. 'While tariff uncertainty has impacted some customers in the short-term, we expect the tangible benefits of the recent tax bill and incentives to invest in American manufacturing to drive customer activity over the longer-term. We continue to see healthy overall demand from customers within our ES segment, resulting in a substantial project pipeline. Multiple customers are expected to proceed with remediation projects in the coming quarters, which will further support our disposal and recycling network. We are excited about the continued progress at our new Kimball incinerator, which achieved its Q2 volume target. We look forward to further ramping up the facility with a broader mix of waste streams in the second half of this year. For SKSS, our focus will remain on actively managing our collection rates and cost structure, while advancing value-added initiatives like our Castrol partnership and Group III production.' Battles concluded, 'We anticipate a strong second half of the year for the Company based on numerous tailwinds that should drive both top- and bottom-line improvement from a year ago. With an encouraging market outlook, we are also continuing to execute on our pricing strategies, cost mitigation and operational efficiencies to drive further margin improvement.' In the third quarter of 2025, Clean Harbors expects Adjusted EBITDA to grow 9-12% from the comparable quarter of the prior year. For full-year 2025, Clean Harbors is reiterating the midpoints of its prior guidance and expects: Adjusted EBITDA in the range of $1.16 billion to $1.20 billion, or a midpoint of $1.18 billion, which represents 6% growth year over year. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $383 million to $419 million. Adjusted free cash flow in the range of $430 million to $490 million, or a midpoint of $460 million, which represents a nearly 30% increase from prior year. This range is based on anticipated net cash from operating activities in the range of $775 million to $865 million. Non-GAAP Results Clean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP) but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company's measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors because the Company's management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA as described in the following reconciliation showing the differences between reported GAAP net income and Adjusted EBITDA (in thousands, except percentages): Adjusted Free Cash Flow Reconciliation Clean Harbors reports adjusted free cash flow, a non-GAAP measure, which it considers to be a measurement of liquidity that provides useful information to investors about its ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets. When necessary, the Company adjusts for the cash impact of items derived from non-operating activities. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore the Company's measurement of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies. An itemized reconciliation between reported GAAP net cash from operating activities and adjusted free cash flow is as follows (in thousands): Adjusted EBITDA Guidance Reconciliation An itemized reconciliation between projected GAAP net income and projected Adjusted EBITDA is as follows (in millions): Adjusted Free Cash Flow Guidance Reconciliation An itemized reconciliation between projected GAAP net cash from operating activities and projected adjusted free cash flow is as follows (in millions). The Company excludes significant one-time growth investments, which the Company expects to realize future long-term benefits from, as they are not indicative of free cash flow generation for the current period. Conference Call Information Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. During the call, management will discuss Clean Harbors' financial results, business outlook and growth strategy. Investors who wish to listen to the webcast and view the accompanying slides should visit the Investor Relations section of the Company's website at The live call also can be accessed by dialing 877.709.8155 or 201.689.8881 prior to the start time. If you are unable to listen to the live conference call, the webcast will be archived on the Company's website. About Clean Harbors Clean Harbors (NYSE: CLH) is North America's leading provider of environmental and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, manufacturing and refining, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is a leading provider of parts washers and environmental services to commercial, industrial and automotive customers, as well as North America's largest re-refiner and recycler of used oil. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit Safe Harbor Statement Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans to,' 'seeks,' 'will,' 'should,' 'estimates,' 'projects,' 'may,' 'likely,' 'potential,' 'outlook' or similar expressions. Such statements may include, but are not limited to, statements about the Company's future financial and operating results, plans, strategy, objectives and goals, cost management initiatives, pricing and productivity initiatives, contingent liabilities, liquidity, business, economic and market conditions, trends, customer demand, impacts of tariffs and new legislation, acquisitions, growth opportunities, expectations, challenges and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of the date of this press release only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation: operational and safety risks; risks relating to the failure of new or existing technologies; cybersecurity risks; the occurrence of natural disasters or other catastrophic events, as well as their residual macroeconomic effects; risks associated with retaining and hiring key personnel; environmental liability and product liability risks relating to hazardous waste management and other components of the Company's business; negative economic, industry or other developments, including market volatility or economic downturns; risks associated with management's assumptions relating to expansion of the Company's landfills; reductions in the demand for emergency response services at industrial facilities or on roadways, railways or waterways, and other remedial projects and regulatory developments; reductions in the demand for oil products and automotive services and volatility in oil prices in the markets the Company serves; changes in statutory and regulatory requirements and risks relating to extensive environmental laws and regulations; risks associated with existing and potential litigation; risks associated with the Company's identification and execution of strategic acquisitions and divestitures and their related liabilities; risks relating to the availability and sufficiency of the Company's insurance coverage, self-insurance, surety bonds, letters of credit and other forms of financial assurance; the impact of new tax legislation or changes in tax regulations and interpretations; the imposition of trade sanctions or tariffs; fluctuations in interest rates and foreign currency exchange rates; risks relating to the Company's indebtedness and covenants in its debt agreements; risks associated with certain anti-takeover provisions under the Massachusetts Business Corporation Act and the Company's By-Laws, and those items identified as 'Risk Factors' in Clean Harbors' most recently filed reports on Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the 'Investors' section of Clean Harbors' website at CLEAN HARBORS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, 2024 Current assets: (unaudited) Cash and cash equivalents $ 600,186 $ 687,192 Short-term marketable securities 98,888 102,634 Accounts receivable, net 1,117,714 1,015,357 Unbilled accounts receivable 177,910 162,215 Inventories and supplies 383,351 384,657 Prepaid expenses and other current assets 97,332 81,741 Total current assets 2,475,381 2,433,796 Property, plant and equipment, net 2,507,101 2,447,941 Other assets: Operating lease right-of-use assets 247,033 250,853 Goodwill 1,479,805 1,477,199 Permits and other intangibles, net 677,180 701,987 Other long-term assets 53,429 65,502 Total other assets 2,457,447 2,495,541 Total assets $ 7,439,929 $ 7,377,278 Current liabilities: Current portion of long-term debt $ 15,102 $ 15,102 Accounts payable 432,771 487,286 Deferred revenue 87,792 88,545 Accrued expenses and other current liabilities 376,585 419,445 Current portion of closure, post-closure and remedial liabilities 26,524 20,625 Current portion of operating lease liabilities 72,976 71,663 Total current liabilities 1,011,750 1,102,666 Other liabilities: Closure and post-closure liabilities, less current portion 122,795 119,484 Remedial liabilities, less current portion 86,880 101,424 Long-term debt, less current portion 2,766,530 2,771,117 Operating lease liabilities, less current portion 178,343 182,883 Deferred tax liabilities 359,661 363,623 Other long-term liabilities 199,903 162,552 Total other liabilities 3,714,112 3,701,083 Total stockholders' equity, net 2,714,067 2,573,529 Total liabilities and stockholders' equity $ 7,439,929 $ 7,377,278 Expand CLEAN HARBORS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income $ 185,585 $ 203,112 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 228,265 195,569 Allowance for doubtful accounts 3,249 4,349 Amortization of deferred financing costs and debt discount 3,352 2,937 Accretion of environmental liabilities 7,211 6,521 Changes in environmental liability estimates (8,954 ) 3,963 Deferred income taxes — (88 ) Other expense, net 1,535 1,308 Stock-based compensation 13,698 14,853 Environmental expenditures (7,051 ) (9,934 ) Changes in assets and liabilities, net of acquisitions: Accounts receivable and unbilled accounts receivable (116,399 ) (116,307 ) Inventories and supplies 2,952 (28,673 ) Other current and long-term assets (13,395 ) (28,870 ) Accounts payable (36,035 ) (12,418 ) Other current and long-term liabilities (54,368 ) (1,728 ) Net cash from operating activities 209,645 234,594 Cash flows used in investing activities: Additions to property, plant and equipment (208,724 ) (273,023 ) Proceeds from sale and disposal of fixed assets 4,063 4,295 Acquisitions, net of cash acquired — (477,201 ) Proceeds from sale of business — 750 Additions to intangible assets including costs to obtain or renew permits (777 ) (1,868 ) Purchases of available-for-sale securities (45,622 ) (55,318 ) Proceeds from sale of available-for-sale securities 50,318 71,695 Net cash used in investing activities (200,742 ) (730,670 ) Cash flows (used in) from financing activities: Change in uncashed checks (2,767 ) (1,868 ) Tax payments related to withholdings on vested restricted stock (10,456 ) (4,599 ) Repurchases of common stock (67,001 ) (10,215 ) Proceeds from employee stock purchase plan 3,360 — Deferred financing costs paid — (8,148 ) Payments on finance leases (16,754 ) (11,491 ) Principal payments on debt (7,551 ) (7,551 ) Proceeds from issuance of debt, net of discount — 499,375 Net cash (used in) from financing activities (101,169 ) 455,503 Effect of exchange rate change on cash 5,260 (2,133 ) Decrease in cash and cash equivalents (87,006 ) (42,706 ) Cash and cash equivalents, beginning of period 687,192 444,698 Cash and cash equivalents, end of period $ 600,186 $ 401,992 Expand Supplemental Segment Data (in thousands) Three Months Ended Revenue June 30, 2025 June 30, 2024 Third-Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Third-Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Environmental Services $ 1,330,059 $ 21,976 $ 1,352,035 $ 1,297,298 $ 12,085 $ 1,309,383 Safety-Kleen Sustainability Solutions 219,706 (21,976 ) 197,730 255,322 (12,085 ) 243,237 Corporate 89 — 89 99 — 99 Total $ 1,549,854 $ — $ 1,549,854 $ 1,552,719 $ — $ 1,552,719 Expand Six Months Ended Revenue June 30, 2025 June 30, 2024 Third-Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Third-Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Environmental Services $ 2,537,097 $ 24,051 $ 2,561,148 $ 2,458,577 $ 23,316 $ 2,481,893 Safety-Kleen Sustainability Solutions 444,521 (24,051 ) 420,470 470,636 (23,316 ) 447,320 Corporate 186 — 186 201 — 201 Total $ 2,981,804 $ — $ 2,981,804 $ 2,929,414 $ — $ 2,929,414 Expand Three Months Ended Six Months Ended Adjusted EBITDA June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Environmental Services $ 376,194 $ 359,915 $ 650,785 $ 624,390 Safety-Kleen Sustainability Solutions 38,313 51,476 66,565 81,176 Total $ 336,237 $ 327,816 $ 571,091 $ 557,911 Expand
Business Wire
30-04-2025
- Business
- Business Wire
Clean Harbors Announces First-Quarter 2025 Financial Results
NORWELL, Mass.--(BUSINESS WIRE)-- Clean Harbors, Inc. ('Clean Harbors' or the 'Company') (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced financial results for the first quarter ended March 31, 2025. 'We began 2025 with a solid, first-quarter performance as our Environmental Services (ES) segment closed Q1 with a strong March helping to overcome unfavorable weather impacts early in the quarter and results in our Safety-Kleen Sustainability Solutions (SKSS) segment exceeded our expectations,' said Mike Battles, Co-Chief Executive Officer. 'Demand trends for our disposal and recycling assets were very strong in the quarter. In addition, we posted the best quarterly safety results in our history, registering a Total Recordable Incident Rate (TRIR) of 0.46. Our employees have done a great job continuing to embrace our safety culture and our 'Safety Starts with Me' philosophy.' First-Quarter 2025 Results Revenues grew 4% to $1.43 billion, compared with $1.38 billion in the same period of 2024. Income from operations was $111.6 million, compared with $125.5 million in the first quarter of 2024 due to higher depreciation and amortization resulting from acquisitions and the new Kimball incinerator. Net income was $58.7 million, or $1.09 per diluted share, compared with $69.8 million, or $1.29 per diluted share, for the same period in 2024. Adjusted EBITDA (see description and reconciliation below) was $234.9 million, compared with $230.1 million in the same period of 2024. Q1 2025 Segment Review 'Despite unfavorable weather early in the quarter that disrupted multiple businesses, our ES segment achieved 4% growth in Adjusted EBITDA and 3% growth in revenue,' said Eric Gerstenberg, Co-Chief Executive Officer. 'Top-line growth in the segment was led by our Field Services operations, which increased 32% from the prior-year period, reflecting the HEPACO acquisition. Technical Services revenue grew 5% on strength of volumes and pricing in our network. Incineration utilization, excluding the new Kimball incinerator, was an impressive 88% vs. 79% in the year-ago period. Average incineration price rose more than 5% on a mix-adjusted basis. Safety-Kleen Environmental Services continued its growth trajectory with a 5% revenue increase in the ES segment. The growth in those businesses more than offset a downturn in our Industrial Services business, which declined 10% as some refinery customers continued to delay spending and maintenance compared to the prior-year period.' 'Results in our SKSS segment reflected our efforts to combat the ongoing weak demand and pricing environment in the U.S. base oil and lubricants market by reducing our used oil collection costs. We increased customer charges for collection services, while continuing to gather the volumes needed for our production goals,' said Battles. 'Segment revenues increased 9% on greater volumes sold, reflecting our 2024 acquisition of Noble Oil and the shift to higher charge-for-oil (CFO) pricing. These factors, combined with cost-cutting efforts, helped offset a softer commodity price environment year over year, resulting in higher-than-anticipated profitability in SKSS.' Business Outlook and Financial Guidance 'As we look ahead, we remain optimistic about our overall prospects for 2025,' Gerstenberg said. 'While we achieved Q1 results ahead of our initial guidance, we recognize that we are operating in a period of uncertainty regarding U.S. policies on trade and tariffs, and the larger implications for the overall economy. We have taken steps around pricing to offset the additional costs we anticipate from tariffs and have not seen a reduction in demand for our core services. As a result, we are maintaining our Adjusted EBITDA and adjusted free cash flow guidance.' Battles concluded, 'Our confidence in hitting our targets stems from the array of tailwinds we see that should drive our business this year and beyond, including demand for disposal and other services, the ramp-up of our new Kimball incinerator, the expansion of our Field Services business through HEPACO, the emerging PFAS market opportunity and our current pipeline of remediation and waste projects. For SKSS, our focus will remain on actively managing our collection costs and overall expenses, while advancing initiatives like our Castrol partnership and Group III production.' In the second quarter of 2025, Clean Harbors expects Adjusted EBITDA to grow 1-3% compared with the prior year, with 3-5% growth in the ES segment and lower expense in the Corporate segment more than offsetting an expected year-over-year decline in SKSS. For full-year 2025, Clean Harbors is reiterating its prior guidance and continues to expect: Adjusted EBITDA in the range of $1.15 billion to $1.21 billion, or a midpoint of $1.18 billion, which represents 6% growth year over year. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $377 million to $428 million. Adjusted free cash flow in the range of $430 million to $490 million, or a midpoint of $460 million, which represents a nearly 30% increase from prior year. This range is based on anticipated net cash from operating activities in the range of $775 million to $865 million. Non-GAAP Results Clean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP) but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company's measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors because the Company's management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA as described in the following reconciliation showing the differences between reported GAAP net income and Adjusted EBITDA (in thousands, except percentages): Adjusted Free Cash Flow Reconciliation Clean Harbors reports adjusted free cash flow, a non-GAAP measure, which it considers to be a measurement of liquidity that provides useful information to investors about its ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets. When necessary, the Company adjusts for the cash impact of items derived from non-operating activities. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore the Company's measurement of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies. An itemized reconciliation between reported GAAP net cash from operating activities and adjusted free cash flow is as follows (in thousands): Adjusted EBITDA Guidance Reconciliation An itemized reconciliation between projected GAAP net income and projected Adjusted EBITDA is as follows (in millions): Adjusted Free Cash Flow Guidance Reconciliation An itemized reconciliation between projected GAAP net cash from operating activities and projected adjusted free cash flow is as follows (in millions). The Company excludes significant one-time growth investments, which the Company expects to realize future long-term benefits from, as they are not indicative of free cash flow generation for the current period. Conference Call Information Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. During the call, management will discuss Clean Harbors' financial results, business outlook and growth strategy. Investors who wish to listen to the webcast and view the accompanying slides should visit the Investor Relations section of the Company's website at The live call also can be accessed by dialing 877.709.8155 or 201.689.8881 prior to the start time. If you are unable to listen to the live conference call, the webcast will be archived on the Company's website. About Clean Harbors Clean Harbors (NYSE: CLH) is North America's leading provider of environmental and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, manufacturing and refining, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is a leading provider of parts washers and environmental services to commercial, industrial and automotive customers, as well as North America's largest re-refiner and recycler of used oil. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit Safe Harbor Statement Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans to,' 'seeks,' 'will,' 'should,' 'estimates,' 'projects,' 'may,' 'likely,' 'potential,' 'outlook' or similar expressions. Such statements may include, but are not limited to, statements about the Company's future financial and operating results, plans, strategy, objectives and goals, cost management initiatives, pricing and productivity initiatives, contingent liabilities, liquidity, business and market conditions, trends, customer demand, acquisitions, growth opportunities, expectations, challenges and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of the date of this press release only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, those items identified as 'Risk Factors' in Clean Harbors' most recently filed reports on Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the 'Investors' section of Clean Harbors' website at CLEAN HARBORS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, 2025 December 31, 2024 Current assets: (unaudited) Cash and cash equivalents $ 489,417 $ 687,192 Short-term marketable securities 105,895 102,634 Accounts receivable, net 1,077,510 1,015,357 Unbilled accounts receivable 171,089 162,215 Inventories and supplies 376,024 384,657 Prepaid expenses and other current assets 90,747 81,741 Total current assets 2,310,682 2,433,796 Property, plant and equipment, net 2,463,620 2,447,941 Other assets: Operating lease right-of-use assets 247,414 250,853 Goodwill 1,477,307 1,477,199 Permits and other intangibles, net 688,957 701,987 Other long-term assets 58,407 65,502 Total other assets 2,472,085 2,495,541 Total assets $ 7,246,387 $ 7,377,278 Current liabilities: Current portion of long-term debt $ 15,102 $ 15,102 Accounts payable 443,654 487,286 Deferred revenue 96,171 88,545 Accrued expenses and other current liabilities 325,759 419,445 Current portion of closure, post-closure and remedial liabilities 23,792 20,625 Current portion of operating lease liabilities 71,865 71,663 Total current liabilities 976,343 1,102,666 Other liabilities: Closure and post-closure liabilities, less current portion 121,221 119,484 Remedial liabilities, less current portion 89,031 101,424 Long-term debt, less current portion 2,768,815 2,771,117 Operating lease liabilities, less current portion 179,454 182,883 Deferred tax liabilities 360,404 363,623 Other long-term liabilities 179,895 162,552 Total other liabilities 3,698,820 3,701,083 Total stockholders' equity, net 2,571,224 2,573,529 Total liabilities and stockholders' equity $ 7,246,387 $ 7,377,278 Expand CLEAN HARBORS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income $ 58,680 $ 69,832 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 111,980 95,065 Allowance for doubtful accounts 2,825 1,728 Amortization of deferred financing costs and debt discount 1,666 1,329 Accretion of environmental liabilities 3,620 3,217 Changes in environmental liability estimates (9,863 ) 917 Deferred income taxes — (88 ) Other expense, net 932 1,141 Stock-based compensation 7,635 6,338 Environmental expenditures (2,591 ) (4,729 ) Changes in assets and liabilities, net of acquisitions: Accounts receivable and unbilled accounts receivable (74,576 ) (44,383 ) Inventories and supplies 8,670 (13,572 ) Other current and long-term assets (6,983 ) (25,918 ) Accounts payable (10,989 ) (17,358 ) Other current and long-term liabilities (89,401 ) (54,970 ) Net cash from operating activities 1,605 18,549 Cash flows used in investing activities: Additions to property, plant and equipment (118,695 ) (137,913 ) Proceeds from sale and disposal of fixed assets 1,343 1,008 Acquisitions, net of cash acquired — (475,306 ) Proceeds from sale of business — 750 Additions to intangible assets including costs to obtain or renew permits (248 ) (534 ) Purchases of available-for-sale securities (24,186 ) (31,228 ) Proceeds from sale of available-for-sale securities 21,456 33,350 Net cash used in investing activities (120,330 ) (609,873 ) Cash flows (used in) from financing activities: Change in uncashed checks (1,714 ) 7,778 Tax payments related to withholdings on vested restricted stock (8,688 ) (3,052 ) Repurchases of common stock (55,000 ) (5,000 ) Deferred financing costs paid — (4,641 ) Payments on finance leases (10,081 ) (4,665 ) Principal payments on debt (3,776 ) (3,776 ) Proceeds from issuance of debt, net of discount — 499,375 Net cash (used in) from financing activities (79,259 ) 486,019 Effect of exchange rate change on cash 209 (1,568 ) Decrease in cash and cash equivalents (197,775 ) (106,873 ) Cash and cash equivalents, beginning of period 687,192 444,698 Cash and cash equivalents, end of period $ 489,417 $ 337,825 Expand Supplemental information: Cash payments for interest and income taxes: Interest paid $ 56,671 $ 51,243 Income taxes paid, net of refunds 9,280 8,020 Non-cash investing activities: Property, plant and equipment accrued 12,462 28,266 ROU assets obtained in exchange for operating lease liabilities 15,638 23,101 ROU assets obtained in exchange for finance lease liabilities 27,181 14,519 Expand Supplemental Segment Data (in thousands) Three Months Ended Adjusted EBITDA March 31, 2025 March 31, 2024 Environmental Services $ 274,591 $ 264,475 Safety-Kleen Sustainability Solutions 28,252 29,700 Corporate (67,989 ) (64,080 ) Total $ 234,854 $ 230,095 Expand
Yahoo
11-04-2025
- Business
- Yahoo
Spotting Winners: Clean Harbors (NYSE:CLH) And Waste Management Stocks In Q4
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let's have a look at Clean Harbors (NYSE:CLH) and its peers. Waste management companies can possess licenses permitting them to handle hazardous materials. Furthermore, many services are performed through contracts and statutorily mandated, non-discretionary, or recurring, leading to more predictable revenue streams. However, regulation can be a headwind, rendering existing services obsolete or forcing companies to invest precious capital to comply with new, more environmentally-friendly rules. Lastly, waste management companies are at the whim of economic cycles. Interest rates, for example, can greatly impact industrial production or commercial projects that create waste and byproducts. The 9 waste management stocks we track reported a slower Q4. As a group, revenues missed analysts' consensus estimates by 1.2%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results. Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups. Clean Harbors reported revenues of $1.43 billion, up 6.9% year on year. This print was in line with analysts' expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts' EPS estimates but full-year EBITDA guidance missing analysts' expectations. 'Our fourth-quarter results were in line with our expectations as our Environmental Services (ES) segment capped a record 2024 with a robust performance, including the 11th consecutive quarter of year-over-year margin growth,' said Mike Battles, Co-Chief Executive Officer. Unsurprisingly, the stock is down 14.4% since reporting and currently trades at $193.67. Is now the time to buy Clean Harbors? Access our full analysis of the earnings results here, it's free. Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government. Casella Waste Systems reported revenues of $427.5 million, up 18.9% year on year, outperforming analysts' expectations by 2.3%. The business had a satisfactory quarter with an impressive beat of analysts' EPS estimates but a significant miss of analysts' adjusted operating income estimates. Casella Waste Systems achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $113.65. Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it's free. Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ:QRHC) is a provider of waste and recycling services. Quest Resource reported revenues of $69.97 million, flat year on year, falling short of analysts' expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. As expected, the stock is down 35.1% since the results and currently trades at $2.51. Read our full analysis of Quest Resource's results here. Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services. Waste Connections reported revenues of $2.26 billion, up 11% year on year. This print topped analysts' expectations by 0.8%. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts' adjusted operating income estimates but a miss of analysts' EPS estimates. The stock is up 1.1% since reporting and currently trades at $191.80. Read our full, actionable report on Waste Connections here, it's free. Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services. Perma-Fix reported revenues of $14.7 million, down 35.3% year on year. This result lagged analysts' expectations by 6.9%. It was a disappointing quarter as it also logged a significant miss of analysts' EBITDA and EPS estimates. Perma-Fix had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $7.23. Read our full, actionable report on Perma-Fix here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Associated Press
19-02-2025
- Business
- Associated Press
Clean Harbors Announces Fourth-Quarter and Full-Year 2024 Financial Results
Clean Harbors, Inc. ('Clean Harbors' or the 'Company') (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced financial results for the fourth quarter and year ended December 31, 2024. 'Our fourth-quarter results were in line with our expectations as our Environmental Services (ES) segment capped a record 2024 with a robust performance, including the 11 th consecutive quarter of year-over-year margin growth,' said Mike Battles, Co-Chief Executive Officer. 'The segment benefited from steady demand, strong waste collection volumes, a healthy flow of project work and favorable pricing. For the full year the segment saw 11% top-line growth and annual Adjusted EBITDA margin exceeded 25%. We maintained a strong focus on safety and continuous improvement in the quarter, which contributed to a Total Recordable Incident Rate (TRIR) that enabled us to surpass our 2024 goal.' Fourth-Quarter 2024 Results Revenues grew 7% to $1.43 billion, compared with $1.34 billion in the same period of 2023. Income from operations was $137.0 million, compared with $147.3 million in the fourth quarter of 2023. Net income was $84.0 million, or $1.55 per diluted share, compared with $98.3 million, or $1.81 per diluted share, for the same period in 2023. Adjusted EBITDA (see description and reconciliation below) was $257.2 million, compared with $254.9 million in the same period of 2023. Q4 2024 Segment Review 'Our ES segment achieved a 9% growth in revenue and 11% growth in Adjusted EBITDA,' said Eric Gerstenberg, Co-Chief Executive Officer. 'Our Adjusted EBITDA margin in the segment increased by 50 basis points. Top-line growth in the segment was again led by our Field Services operations. Field Services revenue increased 47% from the prior-year period, reflecting the HEPACO acquisition and healthy organic growth in our legacy business. Technical Services revenue grew 8% on strength in our network. Incineration utilization was an outstanding 94% for the quarter, up from 85% in the same period a year ago. Safety-Kleen Environmental Services delivered 6% revenue growth in the ES segment.' 'Results in our Safety-Kleen Sustainability Solutions (SKSS) segment reflected ongoing challenges in the U.S. base oil and lubricants market, as revenues declined 5% and profitability was down from the same period in 2023,' said Battles. 'In response to the weakening market conditions and pricing pressure, we took aggressive action in mid-November by shifting customers to a charge-for-oil (CFO) position. These actions, along with cost-cutting initiatives, were designed to help offset the weaker pricing conditions that have persisted.' 2024 Financial Results Revenues for 2024 increased 9% to $5.89 billion, compared with $5.41 billion in 2023. Income from operations increased 9% to $670.2 million, compared with $612.4 million in 2023. Net income was $402.3 million, or $7.42 per diluted share, compared with net income of $377.9 million, or $6.95 per diluted share for 2023. (See reconciliation table below). Adjusted EBITDA (see description below) grew 10% to $1.12 billion from $1.01 billion in 2023. The Company generated adjusted free cash flow (see description and reconciliation below) of $357.9 million in 2024, compared with $321.9 million in 2023. The increase is attributable to greater earnings and some improvements in working capital management which offset higher net capital expenditures. '2024 was another exceptional year for the Company, particularly in our ES segment where we saw the continuation of a multi-year profitable growth trend and record financial performance,' Gerstenberg said. 'Adjusted EBITDA margin in the ES segment expanded by 90 basis points to 25.3% on the strength of 11% revenue growth combined with a 15% increase in Adjusted EBITDA. Beyond our financial performance, we achieved significant operational milestones in 2024, including: Achievement of a TRIR of 0.65, Completion and commercial launch of our Kimball, Nebraska incinerator, Acquisitions of HEPACO and Noble Oil, Workforce growth and improved retention by lowering turnover by 250 basis points, Introduction of our Total PFAS Solution, Expansion of our Baltimore Hub, Partnership with Castrol for its MoreCircular offering, and More than 20,000 emergency response events. These developments illustrate our strategic execution and underscore our commitment to safety, growth, operational efficiency and market responsiveness.' Business Outlook and Financial Guidance 'We expect a year of profitable growth in 2025, led by our ES segment,' Gerstenberg said. 'A healthy backlog of waste streams across our disposal and recycling network is supported by favorable underlying trends expected in U.S. manufacturing, infrastructure spending and regulations, particularly as it relates to PFAS. We also continue to see a robust pipeline of remediation and waste projects as we move into the year. The commercial ramp up of our Nebraska incinerator is underway and our network is currently operating at a high level, efficiently and safely moving waste and utilizing all disposal assets. Our outlook for Field Services is decidedly positive given the early returns on the HEPACO transaction and the anticipated need for our comprehensive ER capabilities. We anticipate a return to growth in our Industrial Services business this year after a slower 2024, while SK Environmental Services should continue to drive record waste volumes into our network. 'Within SKSS, our focus will remain on actively managing our cost structure, particularly waste oil collection costs. In terms of growth strategies, we are directing our energies into areas such as our Castrol partnership, Group III production, blended sales and opportunities to capitalize on the sustainable products we offer.' Battles concluded, 'Overall, we believe we have the ideal strategies in place to deliver a great financial performance in 2025. In addition to increasing Adjusted EBITDA and adjusted free cash flow, we anticipate continued Adjusted EBITDA margin improvement based on our pricing, cost reduction and productivity initiatives.' In the first quarter of 2025, Clean Harbors expects Adjusted EBITDA to grow 4%-6% year-over-year in its ES segment and be flat on a consolidated basis. For full-year 2025, Clean Harbors expects: Adjusted EBITDA in the range of $1.15 billion to $1.21 billion, or a midpoint of $1.18 billion, which represents 6% growth year-over-year. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $376 million to $427 million. Adjusted free cash flow in the range of $430 million to $490 million, or a midpoint of $460 million. This range is based on anticipated net cash from operating activities in the range of $775 million to $865 million. Non-GAAP Results Clean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP) but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company's measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors because the Company's management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA as described in the following reconciliation showing the differences between reported net income and Adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023 (in thousands, except percentages): For the Three Months Ended For the Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income $ 83,974 $ 98,349 $ 402,299 $ 377,856 Accretion of environmental liabilities 3,317 3,386 13,456 13,667 Stock-based compensation 7,291 5,894 27,981 20,703 Depreciation and amortization 105,290 98,336 400,922 365,761 Kimball startup costs 4,343 — 4,343 — Other (income) expense, net (977 ) (3,148 ) 1,454 (2,315 ) Loss on early extinguishment of debt 371 518 371 2,880 Interest expense, net of interest income 34,197 28,195 134,964 108,595 Provision for income taxes 19,403 23,379 131,144 125,423 Adjusted EBITDA $ 257,209 $ 254,909 $ 1,116,934 $ 1,012,570 Adjusted EBITDA Margin 18.0 % 19.0 % 19.0 % 18.7 % Adjusted Free Cash Flow Reconciliation Clean Harbors reports adjusted free cash flow, a non-GAAP measure, which it considers to be a measurement of liquidity that provides useful information to investors about its ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets. When necessary, the Company adjusts for the cash impact of items derived from non-operating activities. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore the Company's measurement of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies. An itemized reconciliation between net cash from operating activities and adjusted free cash flow is as follows for the three and twelve months ended December 31, 2024 and 2023 (in thousands): For the Three Months Ended For the Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Adjusted free cash flow Net cash from operating activities $ 303,938 $ 278,860 $ 777,771 $ 734,552 Additions to property, plant and equipment (62,415 ) (110,394 ) (432,241 ) (422,300 ) Proceeds from sale and disposal of fixed assets 2,746 4,521 9,099 9,650 Kimball startup costs 3,253 — 3,253 — Adjusted EBITDA Guidance Reconciliation An itemized reconciliation between projected GAAP net income and projected Adjusted EBITDA is as follows (in millions): For the Year Ending December 31, 2025 Projected GAAP net income $376 to $427 Adjustments: Accretion of environmental liabilities 15 to 14 Stock-based compensation 28 to 31 Depreciation and amortization 450 to 440 Interest expense, net 146 to 141 Provision for income taxes 135 to 157 Projected Adjusted EBITDA $1,150 to $1,210 Adjusted Free Cash Flow Guidance Reconciliation An itemized reconciliation between projected GAAP net cash from operating activities and projected adjusted free cash flow is as follows (in millions). Starting in 2025, the Company is excluding significant one-time growth investments, which the Company expects to realize future long-term benefits from, as they are not indicative of free cash flow generation for the current period. Conference Call Information Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. During the call, management will discuss Clean Harbors' financial results, business outlook and growth strategy. Investors who wish to listen to the webcast and view the accompanying slides should visit the Investor Relations section of the Company's website at The live call also can be accessed by dialing 877.709.8155 or 201.689.8881 prior to the start time. If you are unable to listen to the live conference call, the webcast will be archived on the Company's website. About Clean Harbors Clean Harbors (NYSE: CLH) is North America's leading provider of environmental and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, manufacturing and refining, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is a leading provider of parts washers and environmental services to commercial, industrial and automotive customers, as well as North America's largest re-refiner and recycler of used oil. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit Safe Harbor Statement Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans to,' 'seeks,' 'will,' 'should,' 'estimates,' 'projects,' 'may,' 'likely,' 'potential,' 'outlook' or similar expressions. Such statements may include, but are not limited to, statements about the Company's future financial and operating results, plans, strategy, objectives and goals, cost management initiatives, pricing and productivity initiatives, contingent liabilities, liquidity, business and market conditions, trends, customer demand, acquisitions, growth opportunities, expectations, challenges and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of the date of this press release only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, those items identified as 'Risk Factors' in Clean Harbors' most recently filed reports on Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the 'Investors' section of Clean Harbors' website at CLEAN HARBORS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Revenues $ 1,431,116 $ 1,338,169 $ 5,889,952 $ 5,409,152 Cost of revenues: 1,003,502 923,147 4,065,713 3,746,124 Selling, general and administrative expenses 182,039 166,007 739,629 671,161 Accretion of environmental liabilities 3,317 3,386 13,456 13,667 Depreciation and amortization 105,290 98,336 400,922 365,761 Income from operations 136,968 147,293 670,232 612,439 Other income (expense), net 977 3,148 (1,454 ) 2,315 Loss on early extinguishment of debt (371 ) (518 ) (371 ) (2,880 ) Interest expense, net (34,197 ) (28,195 ) (134,964 ) (108,595 ) Income before provision for income taxes 103,377 121,728 533,443 503,279 Provision for income taxes 19,403 23,379 131,144 125,423 Net income $ 83,974 $ 98,349 $ 402,299 $ 377,856 Earnings per share: Basic $ 1.56 $ 1.82 $ 7.46 $ 6.99 Diluted $ 1.55 $ 1.81 $ 7.42 $ 6.95 Shares used to compute earnings per share - Basic 53,857 53,995 53,902 54,071 Shares used to compute earnings per share - Diluted 54,168 54,259 54,199 54,382 CLEAN HARBORS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 687,192 $ 444,698 Short-term marketable securities 102,634 106,101 Accounts receivable, net 1,015,357 983,111 Unbilled accounts receivable 162,215 107,859 Inventories and supplies 384,657 327,511 Prepaid expenses and other current assets 81,741 82,939 Total current assets 2,433,796 2,052,219 Property, plant and equipment, net 2,447,941 2,193,318 Other assets: Operating lease right-of-use assets 250,853 187,060 Goodwill 1,477,199 1,287,736 Permits and other intangibles, net 701,987 602,797 Other long-term assets 65,502 59,739 Total other assets 2,495,541 2,137,332 Total assets $ 7,377,278 $ 6,382,869 Current liabilities: Current portion of long-term debt $ 15,102 $ 10,000 Accounts payable 487,286 451,806 Deferred revenue 88,545 95,230 Accrued expenses and other current liabilities 419,445 397,157 Current portion of closure, post-closure and remedial liabilities 20,625 26,914 Current portion of operating lease liabilities 71,663 56,430 Total current liabilities 1,102,666 1,037,537 Other liabilities: Closure and post-closure liabilities, less current portion 119,484 105,044 Remedial liabilities, less current portion 101,424 97,885 Long-term debt, less current portion 2,771,117 2,291,717 Operating lease liabilities, less current portion 182,883 131,743 Deferred tax liabilities 363,623 353,107 Other long-term liabilities 162,552 118,330 Total other liabilities 3,701,083 3,097,826 Total stockholders' equity, net 2,573,529 2,247,506 Total liabilities and stockholders' equity $ 7,377,278 $ 6,382,869 CLEAN HARBORS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Year Ended December 31, 2024 December 31, 2023 Cash flows from operating activities: Net income $ 402,299 $ 377,856 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 400,922 365,761 Allowance for doubtful accounts 8,129 5,956 Amortization of deferred financing costs and debt discount 6,321 5,309 Accretion of environmental liabilities 13,456 13,667 Changes in environmental liability estimates 4,139 4,828 Deferred income taxes 18,437 12,685 Other expense (income), net 1,454 (2,315 ) Stock-based compensation 27,981 20,703 Loss on early extinguishment of debt 371 2,880 Environmental expenditures (27,522 ) (28,960 ) Changes in assets and liabilities, net of acquisitions: Accounts receivable and unbilled accounts receivable (28,822 ) 2,453 Inventories and supplies (49,588 ) (4,312 ) Other current and non-current assets (57,220 ) (22,645 ) Accounts payable 12,327 (27,425 ) Other current and long-term liabilities 45,087 8,111 Net cash from operating activities 777,771 734,552 Cash flows used in investing activities: Additions to property, plant and equipment (432,241 ) (422,300 ) Proceeds from sale and disposal of fixed assets 9,099 9,650 Acquisitions, net of cash acquired (478,011 ) (119,596 ) Proceeds from sale of business, net of transaction costs 750 750 Additions to intangible assets including costs to obtain or renew permits (9,607 ) (2,649 ) Purchases of available-for-sale securities (117,861 ) (158,264 ) Proceeds from sale of available-for-sale securities 124,197 117,359 Net cash used in investing activities (903,674 ) (575,050 ) Cash flows from (used in) financing activities: Change in uncashed checks (1,473 ) 2,759 Tax payments related to withholdings on vested restricted stock (13,759 ) (13,838 ) Repurchases of common stock (55,178 ) (51,164 ) Deferred financing costs paid (8,954 ) (6,736 ) Payments on finance leases (30,886 ) (15,937 ) Proceeds from employee stock purchase plan 3,009 — Principal payments on debt (15,102 ) (623,975 ) Proceeds from issuance of debt, net of discount 499,375 500,000 Borrowing from revolving credit facility — 114,000 Payment on revolving credit facility — (114,000 ) Net cash from (used in) financing activities 377,032 (208,891 ) Effect of exchange rate change on cash (8,635 ) 1,484 Increase (decrease) in cash and cash equivalents 242,494 (47,905 ) Cash and cash equivalents, beginning of year 444,698 492,603 Cash and cash equivalents, end of year $ 687,192 $ 444,698 Supplemental information: Cash payments for interest and income taxes: Interest paid $ 153,059 $ 114,560 Income taxes paid, net of refunds 130,606 132,314 Non-cash investing activities: Property, plant and equipment accrued 43,750 52,376 Supplemental Segment Data (in thousands) For the Three Months Ended Revenue December 31, 2024 December 31, 2023 Third Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Third Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Environmental Services $ 1,214,098 $ 11,569 $ 1,225,667 $ 1,112,166 $ 10,136 $ 1,122,302 Safety-Kleen Sustainability Solutions 216,908 (11,569 ) 205,339 225,891 (10,136 ) 215,755 Corporate Items 110 — 110 112 — 112 Total $ 1,431,116 $ — $ 1,431,116 $ 1,338,169 $ — $ 1,338,169 For the Twelve Months Ended Revenue December 31, 2024 December 31, 2023 Third Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Third Party Revenues Intersegment Revenues (Expenses), net Direct Revenues Environmental Services $ 4,960,325 $ 44,422 $ 5,004,747 $ 4,469,909 $ 41,533 $ 4,511,442 Safety-Kleen Sustainability Solutions 929,220 (44,422 ) 884,798 938,796 (41,533 ) 897,263 Corporate Items 407 — 407 447 — 447 Total $ 5,889,952 $ — $ 5,889,952 $ 5,409,152 $ — $ 5,409,152 For the Three Months Ended For the Twelve Months Ended Adjusted EBITDA December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Environmental Services $ 310,570 $ 278,659 $ 1,267,462 $ 1,101,608 Safety-Kleen Sustainability Solutions 24,604 46,849 147,006 172,873 Corporate Items (77,965 ) (70,599 ) (297,534 ) (261,911 ) Total $ 257,209 $ 254,909 $ 1,116,934 $ 1,012,570 View source version on CONTACT: Eric J. Dugas EVP and Chief Financial Officer Clean Harbors, Inc. 781.792.5100 [email protected] Buckley SVP Investor Relations Clean Harbors, Inc. 781.792.5100 [email protected] KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS SOURCE: Clean Harbors, Inc. Copyright Business Wire 2025. PUB: 02/19/2025 07:30 AM/DISC: 02/19/2025 07:30 AM
