Attached files

file filename
8-K - 8-K - CLEAN HARBORS INCa12-11077_18k.htm

Exhibit 99.1

 

Press Release

 

Clean Harbors Reports First-Quarter 2012 Financial Results

 

·            Organic Growth and Acquisitions Continue to Drive Solid Performance

 

·            Revenue Increases 32% to $572 Million

 

·            Net Income Up 41%; EBITDA Climbs 49% to $100.9 Million

 

·            Margins Improve on Increased Efficiencies; Confirms Full-Year Guidance

 

Norwell, MA — May 2, 2012 Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental, energy and industrial services throughout North America, today announced financial results for the first quarter ended March 31, 2012.

 

Revenues for the first quarter grew 32% to $572.0 million from $435.0 million in the same period in 2011, reflecting a combination of organic growth and contributions from 2011 acquisitions.  Income from operations in the first quarter of 2012 increased 55% to $61.7 million from $39.7 million in the same period of 2011.

 

All share and per share amounts included in this earnings release reflect the two-for-one stock split completed in July 2011 and have been adjusted retroactively for all periods presented.  First quarter 2012 net income rose 41% to $32.0 million, or $0.60 per diluted share, compared with $22.7 million, or $0.43 per diluted share, in the first quarter of 2011.  The effective tax rate in the first quarter of 2012 was 36.1% compared with 37.1% in the same period of last year. EBITDA (see description below) increased 49% to $100.9 million in the first quarter of 2012 compared with $67.6 million in the same period of 2011.

 

Comments on the First Quarter

 

“We opened 2012 with a solid first-quarter performance,” said Alan S. McKim, Chairman and Chief Executive Officer. “We delivered revenue growth of more than 30%, which drove a corresponding increase in profitability of more than 40%.  At the same time EBITDA grew by nearly 50% as we achieved healthy EBITDA margins of 17.6% in what was historically a lower margin quarter for the Company.  Our Energy and Industrial business led the way, generating high levels of activity throughout the quarter despite the early onset of the Spring break-up.  In addition, our Environmental business benefited from increased volumes and an early start for some client projects scheduled for the second quarter.”

 

“Each of our operating segments was a key contributor in the quarter,” McKim said. “Within Technical Services, utilization at our incinerators climbed to 90% from 85% a year ago, and volumes at our landfills rose by 19%, largely due to energy-related work.  Within Field Services, we generated a steady stream of ongoing maintenance and project work in the quarter.  Our Industrial Services segment grew nearly 40% as a result of heightened activity in the Oil Sands region, continued demand for our broad array of specialty services and a strong performance from our lodging business.  Our Oil & Gas Field Services segment essentially doubled in size from the same period of 2011.  The increase was driven by demand across Western Canada, a variety of

 

GRAPHIC

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com

 



 

shale play-related work in the U.S. and Canada, and cross-selling opportunities afforded by Peak and other acquisitions we completed in 2011.”

 

Non-GAAP 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 first quarter of 2012 and 2011 (in thousands):

 

 

 

For the three months ended:

 

 

 

March 31, 2012

 

March 31, 2011

 

 

 

 

 

 

 

Net income

 

$

32,015

 

$

22,730

 

Accretion of environmental liabilities

 

2,416

 

2,389

 

Depreciation and amortization

 

36,831

 

25,460

 

Other expense (income)

 

299

 

(2,899

)

Interest expense, net

 

11,272

 

6,478

 

Provision for income taxes

 

18,115

 

13,433

 

EBITDA

 

$

100,948

 

$

67,591

 

 

Business Outlook and Financial Guidance

 

“Based on our ongoing company initiatives and positive industry trends, particularly in the Energy and Industrial areas of our business, we remain encouraged about our prospects for 2012.  On the top-line, we expect to continue to make growth-oriented capital investments, pursue additional cross-selling opportunities, and extend the sales momentum we have established in many of our key verticals.  In addition, we intend to remain active on the acquisition front and leverage our strong financial position and steady cash flow.  From a margin perspective, we intend to drive increased efficiencies and capitalize on economies of scale across the organization as we grow. Looking ahead, we are continuing to see indications of the ongoing economic recovery throughout North America, which further reinforces our positive outlook,” McKim concluded.

 

Based on its first-quarter performance and current market conditions, Clean Harbors is reiterating its 2012 annual revenue and EBITDA guidance.  The Company continues to expect 2012 revenues in the range of $2.20 billion to $2.25 billion.  For 2012, the Company continues to expect EBITDA in the range of $400 million to $410 million. The Company’s 2012 guidance implies an EBITDA margin of greater than 18% for the full year.  This guidance is exclusive of any potential future acquisitions.

 



 

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.  On the call, management will discuss Clean Harbors’ financial results, business outlook and growth strategy.

 

Investors who wish to listen to the webcast should visit the Investor Relations section of the Company’s website at www.cleanharbors.com.  The live call also can be accessed by dialing 201.689.8881 or 877.709.8155 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 the leading provider of environmental, energy and industrial services throughout North America.  The Company serves more than 60,000 customers, including a majority of the Fortune 500 companies, thousands of smaller private entities and numerous federal, state, provincial and local governmental agencies.

 

Headquartered in Norwell, Massachusetts, Clean Harbors has more than 200 locations, including over 50 waste management facilities, throughout North America in 37 U.S. states, seven 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.  These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions.  Such statements may include, but are not limited to, statements about the Company’s business outlook and financial guidance and other statements that are not historical facts.  Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of this date 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 the Company’s most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements.  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, which may be viewed in the “Investors” section of the Company’s website at www.cleanharbors.com.

 



 

Contacts:

 

James M. Rutledge

 

Jim Buckley

Vice Chairman and Chief Financial Officer

 

Executive Vice President

Clean Harbors, Inc.

 

Sharon Merrill Associates

781.792.5100

 

617.542.5300

InvestorRelations@cleanharbors.com

 

clh@investorrelations.com

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

(in thousands except per share amounts)

 

 

 

For the three months ended:

 

 

 

March 31,

 

March 31,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Revenues

 

$

572,022

 

$

434,962

 

Cost of revenues (exclusive of items shown separately below)

 

400,315

 

312,577

 

Selling, general and administrative expenses

 

70,759

 

54,794

 

Accretion of environmental liabilities

 

2,416

 

2,389

 

Depreciation and amortization

 

36,831

 

25,460

 

Income from operations

 

61,701

 

39,742

 

Other (expense) income

 

(299

)

2,899

 

Interest (expense), net

 

(11,272

)

(6,478

)

Income before provision for income taxes

 

50,130

 

36,163

 

Provision for income taxes

 

18,115

 

13,433

 

Net income

 

$

32,015

 

$

22,730

 

Earnings per share:

 

 

 

 

 

Basic

 

$

0.60

 

$

0.43

 

Diluted

 

$

0.60

 

$

0.43

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

53,227

 

52,798

 

Weighted average common shares outstanding plus potentially dilutive common shares

 

53,488

 

53,158

 

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

(in thousands)

 

 

 

March 31,

 

December 31,

 

 

 

2012

 

2011

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

241,527

 

$

260,723

 

Marketable securities

 

4,997

 

111

 

Accounts receivable, net

 

463,431

 

449,553

 

Unbilled accounts receivable

 

29,904

 

29,385

 

Deferred costs

 

5,787

 

5,903

 

Prepaid expenses and other current assets

 

62,118

 

73,349

 

Supplies inventories

 

57,695

 

56,242

 

Deferred tax assets

 

16,426

 

16,602

 

Total current assets

 

881,885

 

891,868

 

 

 

 

 

 

 

Property, plant and equipment, net

 

918,684

 

903,947

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Long-term investments

 

4,245

 

4,245

 

Deferred financing costs

 

12,872

 

13,607

 

Goodwill

 

125,723

 

122,392

 

Permits and other intangibles, net

 

138,967

 

139,644

 

Other

 

10,519

 

10,100

 

Total other assets

 

292,326

 

289,988

 

Total assets

 

$

2,092,895

 

$

2,085,803

 

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

(in thousands)

 

 

 

March 31,

 

December 31,

 

 

 

2012

 

2011

 

Current liabilities:

 

 

 

 

 

Current portion of capital lease obligations

 

$

7,365

 

$

8,310

 

Accounts payable

 

172,551

 

178,084

 

Deferred revenue

 

29,157

 

32,297

 

Accrued expenses

 

114,501

 

147,992

 

Current portion of closure, post-closure and remedial liabilities

 

18,653

 

15,059

 

Total current liabilities

 

342,227

 

381,742

 

Other liabilities:

 

 

 

 

 

Closure and post-closure liabilities, less current portion

 

28,560

 

30,996

 

Remedial liabilities, less current portion

 

121,885

 

124,146

 

Long-term obligations

 

523,833

 

524,203

 

Capital lease obligations, less current portion

 

5,406

 

6,375

 

Unrecognized tax benefits and other long-term liabilities

 

119,706

 

117,354

 

Total other liabilities

 

799,390

 

803,074

 

Total stockholders’ equity, net

 

951,278

 

900,987

 

Total liabilities and stockholders’ equity

 

$

2,092,895

 

$

2,085,803