Clean Harbors, Inc. (�Clean Harbors�) (NASDAQ: CLHB), the leading
provider of environmental and hazardous waste management services
throughout North America, today announced financial results for the
second quarter ended June 30, 2008. For the second quarter of 2008,
Clean Harbors reported an 11.1 percent increase in revenue to
$265.3 million from $238.7 million in the second quarter of 2007.
Income from operations rose 26.3 percent to $29.8 million from
$23.6 million in the second quarter of 2007. Second quarter 2008
net income attributable to common shareholders increased 43.8
percent to $16.0 million, or $0.70 per diluted share, from $11.1
million, or $0.54 per diluted share, in the second quarter of 2007.
EBITDA (see description below) increased 23.1 percent to a record
$43.4 million in the second quarter of 2008, from $35.2 million in
the comparable period of 2007. Comments on the Second Quarter
�Clean Harbors delivered another record quarter in Q2, with double
digit increases in both revenue and profitability,� said Alan S.
McKim, Chairman and Chief Executive Officer. �Solid growth across
nearly all of our operations enabled us to generate revenues of
$265.3 million. Utilization at our domestic incinerators, which
includes the additional capacity rolled out in the first quarter of
the year, was especially strong, and helped overall utilization
reach 88 percent for the quarter, despite scheduled maintenance
that was performed at several of our facilities. We did experience
some softness in our landfill disposal facilities, primarily due to
the timing of projects, as well as our strategic decision to
selectively increase pricing, which resulted in lower volumes.
Within our Site Services segment, we saw solid growth from our
petrochemical, specialty chemical and refinery clients and also
benefited from some limited emergency response work from
flood-related clean up projects in the Midwest.� �Demonstrating
once again the leverage of our network of assets, EBITDA growth
exceeded our revenue growth for the quarter, increasing 23 percent
year-over-year to a record $43.4 million,� McKim said. �We achieved
this record EBITDA through a combination of price increases and
tighter cost controls, even while experiencing lower landfill
volumes and significantly higher fuel costs.� �During the quarter,
we continued to successfully execute on the expansion of our
incineration capacity,� McKim said. �Earlier this year, we
established an 18-month goal of adding 10 percent, or 50,000 tons,
to our overall capacity. We made substantial progress on that
program in the second quarter. After having brought on an initial
7,000 tons in the first quarter, we added approximately 14,000
additional tons in the second quarter. We expect to bring another
7,000 tons online in the third quarter, and the remaining new
capacity will commence before mid-2009, depending upon the
permitting process and construction schedules.� �In the second
quarter, we significantly enhanced our balance sheet through our
successful follow-on common stock offering,� said McKim. �We raised
$173.6 million in net proceeds, which provides ample financial
flexibility for potential acquisitions, repayment of debt and
working capital needs. Using the proceeds from the offering, we
redeemed $50 million principal amount of our outstanding Senior
Secured Notes on July 28, which is expected to lower the Company�s
interest expense by an estimated $5.6 million annually.� In
connection with the redemption, Clean Harbors expects to record a
$4.3 million charge below the EBITDA line in the third quarter,
consisting of a prepayment penalty and non-cash expense for the
unamortized discount and financing costs related to the notes.
Non-GAAP Second-Quarter Results Clean Harbors reports EBITDA
results, which are non-GAAP financial measures, as a complement to
results provided in accordance with accounting principles generally
accepted in the United States (GAAP) and believes that such
information provides additional useful information to investors
since the Company�s loan covenants are based upon levels of EBITDA
achieved. The Company defines EBITDA in accordance with its
existing credit agreement, as described in the following
reconciliation showing the differences between reported net income
and EBITDA for the second quarter and first six months of 2008 and
2007 (in thousands): � For the three months ended: � For the six
months ended: June 30, 2008 � June 30, 2007 � June 30, 2008 � June
30, 2007 � � Net income $15,987 $11,188 $24,909 $14,689 Accretion
of environmental liabilities 2,726 2,554 5,396 5,028 Depreciation
and amortization 10,806 9,049 21,281 17,987 Interest expense, net
2,515 3,695 5,900 6,879 Provision for income taxes 11,404 8,739
18,993 12,713 Other (income) expense (59 ) � 5 � 45 � (1 ) EBITDA
$43,379 � � $35,230 � $76,524 � $57,295 � Business Outlook and
Financial Guidance �As we enter the second half of 2008, we are
optimistic about our future prospects,� concluded McKim. �We
anticipate continued growth across our operations, both from our
Technical and Site Services business segments. Moreover, the
acquisition pipeline remains healthy and we are continuing to
evaluate strategic opportunities that have the potential to
accelerate our growth and further strengthen our company. Our
quarter end cash position of more than $280 million affords us many
options in this area. Improved cost containment measures will
continue to be a major goal, as we work to offset higher fuel and
natural gas expenses. We look forward to steady revenue and EBITDA
growth for the remainder of the year.� For the third quarter of
2008, the Company expects revenue in the range of $270 million to
$275 million. The Company expects to generate EBITDA for the third
quarter of 2008 in the range of $45 million to $47 million. For
full-year 2008, the Company now expects to increase annual revenues
at the high-end of its previously announced range of 8 percent to
10 percent, and achieve EBITDA growth at the high-end of its
previously announced range of 20 percent to 22 percent. Conference
Call Information Clean Harbors will conduct a conference call for
investors to discuss the information contained in this press
release today, Wednesday, August 6, 2008 at 9:00 a.m. (ET). On the
call, Chairman, President and Chief Executive Officer Alan S. McKim
and Executive Vice President and Chief Financial Officer James M.
Rutledge will discuss Clean Harbors� financial results, business
outlook and growth strategy. Investors who wish to listen to the
second-quarter webcast should log onto
www.cleanharbors.com/investor_relations. The live call also can be
accessed by dialing 877.407.5790 or 201.689.8328 prior to the start
of the call. If you are unable to listen to the live call, the
webcast will be archived on the Company�s website. About Clean
Harbors Clean Harbors is North America's leading provider of
environmental and hazardous waste management services. With an
unmatched infrastructure of waste management facilities, Clean
Harbors serves over 45,000 customers, including more than 325
Fortune 500 companies, thousands of smaller private entities and
numerous federal, state and local governmental agencies. Clean
Harbors� Technical Services provides a broad range of hazardous
material management and disposal services including hazardous and
non-hazardous waste recycling, treatment and disposal, CleanPack�
laboratory chemical packing, and household hazardous waste
management services. Clean Harbors� Site Services provides field
services, industrial services, vacuum services, emergency response
and disaster recovery, transformer services, tank cleaning and
decontamination. Headquartered in Norwell, Massachusetts, Clean
Harbors has more than 100 locations strategically positioned
throughout North America in 36 U.S. states, six Canadian provinces,
Mexico and Puerto Rico. For more information, visit
www.cleanharbors.com. 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, and involve risks and uncertainties. These
forward-looking statements are generally identifiable by use of the
words �believes,� �expects,� �intends,� �anticipates,� �plans to,�
�estimates,� �projects,� or similar expressions. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those reflected in these forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which reflect management�s opinions only as of the date
hereof. The Company undertakes no obligation to revise or publicly
release the results of any revision to these forward-looking
statements other than through its various filings with the
Securities and Exchange Commission. Furthermore, all financial
information in this press release is based on preliminary data and
is subject to the final closing of the Company�s books and records.
A variety of factors beyond the control of the Company may affect
the Company�s performance, including, but not limited to: The
Company�s ability to manage the significant environmental
liabilities that it assumed in connection with the CSD and other
acquisitions; The availability and costs of liability insurance and
financial assurance required by governmental entities relating to
our facilities; The effects of general economic conditions in the
United States, Canada and other territories and countries where the
Company does business; The effect of economic forces and
competition in specific marketplaces where the Company competes;
The possible impact of new regulations or laws pertaining to all
activities of the Company�s operations; The outcome of litigation
or threatened litigation or regulatory actions; The effect of
commodity pricing on overall revenues and profitability; Possible
fluctuations in quarterly or annual results or adverse impacts on
the Company�s results caused by the adoption of new accounting
standards or interpretations or regulatory rules and regulations;
The effect of weather conditions or other aspects of the forces of
nature on field or facility operations; The effects of industry
trends in the environmental services and waste handling
marketplace; and The effects of conditions in the financial
services industry on the availability of capital and financing. Any
of the above factors and numerous others not listed nor foreseen
may adversely impact the Company�s financial performance.
Additional information on the potential factors that could affect
the Company�s actual results of operations is included in its
filings with the Securities and Exchange Commission, which may be
viewed on www.cleanharbors.com/investor_relations. CLEAN HARBORS,
INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands except per share amounts) � For the three
months ended: For the six months ended: June 30, � June 30, June
30, � June 30, 2008 2007 2008 2007 � Revenues $265,259 $238,708
$507,768 $443,732 Cost of revenues 178,384 165,282 348,578 316,886
Selling, general and administrative expenses 43,496 38,196 82,666
69,551 Accretion of environmental liabilities 2,726 2,554 5,396
5,028 Depreciation and amortization 10,806 � 9,049 � 21,281 �
17,987 � Income from operations 29,847 23,627 49,847 34,280 Other
(expense) income 59 (5 ) (45 ) 1 Interest (expense), net (2,515 )
(3,695 ) (5,900 ) (6,879 ) Income before provision for income taxes
27,391 19,927 43,902 27,402 Provision for income taxes 11,404 �
8,739 � 18,993 � 12,713 � Net income 15,987 11,188 24,909 14,689
Dividends on Series B Preferred Stock � � 69 � � � 138 � Net income
attributable to common stockholders $15,987 � $11,119 � $24,909 �
$14,551 � Earnings per share: Basic income attributable to common
stockholders $0.71 � $0.56 � $1.16 � $0.74 � Diluted income
attributable to common stockholders $0.70 � $0.54 � $1.14 � $0.71 �
� Weighted average common shares outstanding 22,437 � 19,817 �
21,392 � 19,773 � Weighted average common shares outstanding plus
potentially dilutive common shares 22,936 � 20,661 � 21,907 �
20,683 � CLEAN HARBORS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS ASSETS (in thousands) � June 30,
December 31, 2008 2007 Current assets: Cash and cash equivalents $
281,893 $ 119,538 Marketable securities 438 850 Accounts
receivable, net 185,228 193,126 Unbilled accounts receivable 10,235
14,703 Deferred costs 5,795 7,359 Prepaid expenses and other
current assets 11,369 10,098 Supplies inventories 24,660 22,363
Deferred tax assets 11,497 11,491 Properties held for sale 374 910
Total current assets 531,489 380,438 � Property, plant and
equipment, net 293,118 262,601 � Other assets: Long-term
investments 6,625 8,500 Deferred financing costs 5,228 5,881
Goodwill 25,109 21,572 Permits and other intangibles, net 77,619
74,809 Deferred tax assets 12,158 12,176 Other 3,842 3,911 130,581
126,849 Total assets $955,188 $769,888 CLEAN HARBORS, INC. AND
SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS�EQUITY (in thousands) � June 30,
December 31, 2008 2007 Current liabilities: Uncashed checks $ 7,531
$ 5,489 Current portion of long-term debt 69,224 � Current portion
of capital lease obligations 482 1,251 Accounts payable 72,273
81,309 Deferred revenue 23,492 29,730 Other accrued expenses 65,878
65,789 Current portion of closure, post-closure and remedial
liabilities 22,795 18,858 Income taxes payable � 8,427 Total
current liabilities 261,675 210,853 Other liabilities: Closure and
post-closure liabilities, less current portion 25,877 24,202
Remedial liabilities, less current portion 138,634 141,428
Long-term obligations 51,557 120,712 Capital lease obligations,
less current portion 556 1,520 Unrecognized tax benefits and other
long-term liabilities 71,979 68,276 Total other liabilities 288,603
356,138 Total stockholders� equity, net 404,910 202,897 Total
liabilities and stockholders� equity $ 955,188 $ 769,888
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