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Exhibit 99.1

 

 

Press Release

 

Clean Harbors Announces Fourth-Quarter
and Year-End 2017 Financial Results

 

·            Increased Q4 Revenues 8% to $747.4 Million With Growth Across All Segments; Full-Year Revenues Up 7% to $2.94 Billion

 

·            Delivered Q4 Net Income of $84.2 Million and GAAP EPS of $1.48, Reflecting Significant Net Benefit from U.S. Tax Law Changes; Full-Year Net Income of $100.7 Million and GAAP EPS of $1.76

 

·            Reported Q4 Adjusted EBITDA of $101.8 Million; Full-Year Adjusted EBITDA of $425.7 Million

 

·            Achieved Full-Year Net Cash from Operating Activities of $285.7 Million and 2017 Adjusted Free Cash Flow of $140.2 Million

 

·            Provides 2018 Adjusted EBITDA Guidance of $440 Million to $480 Million

 

·            Completed Acquisition of Veolia North America’s U.S. Industrial Cleaning Services Division

 

NORWELL, Mass. — February 28, 2018 — 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 fourth quarter and year ended December 31, 2017.

 

“We delivered solid fourth-quarter results that were in line with our expectations as we benefited from an improving macroeconomic environment and favorable industry trends,” said Alan S. McKim, Chairman, President and Chief Executive Officer. “Our top-line performance reflected a successful execution of our corporate strategy, as all four reporting segments delivered growth in the quarter.  Our Adjusted EBITDA improvement was driven by a 23% increase in Safety-Kleen as well as profitable growth in Technical Services.”

 

Fourth-quarter revenues increased 8% to $747.4 million, compared with $692.1 million in the same period a year ago. Income from operations was $27.9 million, compared with $21.9 million in the fourth quarter of 2016.

 

Net income for the fourth quarter of 2017 was $84.2 million, or $1.48 per diluted share. This result included a $93.0 million net benefit due to recent tax law changes, partly offset by charges of $4.9 million related to non-cash valuation allowances on tax loss carryforwards generated by certain Canadian subsidiaries and other tax-related charges. Net loss for the fourth quarter of 2016 was $12.7 million, or $0.22 per share, which included the recognition of non-cash valuation allowances on tax loss carryforwards generated by certain Canadian subsidiaries of $9.6 million. Adjusted net loss for each of the fourth quarters of 2017 and 2016 was $3.4 million, or $0.06 per share. Net income (loss) and adjusted net loss results for the fourth quarters of 2017 and 2016 included pre-tax integration and severance costs of $5.7 million and $5.9 million, respectively.

 

Clean Harbors · 42 Longwater Drive · PO Box 9149 · Norwell, Massachusetts 02061-9149 · 800.282.0058 · www.cleanharbors.com

 



 

Adjusted EBITDA (see description below) in the fourth quarter of 2017 increased 6% to $101.8 million, compared with $95.9 million in the same period of 2016.

 

“In our Technical Services segment, incinerator utilization was an impressive 92% in the quarter, and landfill volumes rose 18% on a combination of higher base business and project work,” McKim said.  “Our Safety-Kleen segment delivered increased revenue and Adjusted EBITDA margins of 24.5%, reflecting effective spread management and the continued rebound in energy prices.”

 

Completion of Veolia Transaction

 

The Company recently completed its previously announced acquisition of Veolia North America’s U.S. Industrial Cleaning Services Division. Clean Harbors acquired the business for $120 million in an all-cash transaction, subject to customary post-closing adjustments. The business, which generated revenues of approximately $210 million in 2017, employs approximately 1,300 employees and maintains an extensive fleet of vehicles and equipment at over 60 operating locations across the United States.

 

“We are excited about the numerous benefits this transaction will deliver for our customers, shareholders and Industrial Services employees,” said McKim. “It provides significant scale and industrial services capabilities while more than doubling the size of our existing U.S. Industrial Services business. The acquired business’ operational footprint, particularly its strong presence in the Midwest, complements our existing network of locations. The addition of this business will create new cross-selling opportunities and drive incremental volumes into our waste disposal network. We believe this transaction enhances long-term shareholder value and will support our profitable growth momentum in 2018 and beyond. We welcome the Veolia employees to the Clean Harbors team and look forward to working together.”

 

2017 Financial Results

 

Clean Harbors revenues for 2017 increased 7% to $2.94 billion, compared with $2.76 billion in 2016.

 

GAAP net income for 2017 was $100.7 million, or $1.76 per diluted share, which includes the net benefit from U.S. tax law changes, a gain on sale of business, a loss on the early extinguishment of debt, non-cash valuation allowances related to Canadian operations and other tax charges. GAAP net loss for 2016 was $39.9 million, or $0.69 per share, which included non-cash valuation allowances primarily related to Canadian operations, a non-cash goodwill impairment charge and a gain on sale of business.

 

Excluding these items, the Company reported adjusted net income for 2017 of $11.6 million, or $0.20 per diluted share, compared with adjusted net income of $1.3 million, or $0.02 per diluted share, in 2016. Net income and adjusted net income for 2017 included $11.4 million of pre-tax integration and severance costs; net loss and adjusted net income for 2016 included $24.4 million of pre-tax integration and severance costs.

 

Adjusted EBITDA (see description below) was $425.7 million in 2017, compared with $400.4 million in 2016.

 



 

“Clean Harbors returned to profitable growth in 2017, as we began to harvest the investments we’ve made in several growth initiatives,” said McKim. “During the year, we commercially launched our 70,000-ton hazardous waste incinerator in El Dorado, Arkansas — the first new commercial U.S. incinerator to be permitted and opened in 20 years. Though the incinerator incurred several unplanned outages related to the start-up of the plant, we remain enthusiastic about its long-term potential. We also began the rollout of Safety-Kleen’s closed loop offering, selling and delivering lubricants directly to more than 15,000 unique customers. The growth of Safety-Kleen was supported by the opening of our Customer Care Center, which improves efficiencies by centralizing many functions including call operations, routing, collections and customer service.”

 

Business Outlook and Financial Guidance

 

“We begin 2018 with positive momentum in our key businesses and are excited about our prospects for the year,” McKim said. “We are focused on enhancing our margins through better pricing, improving our revenue mix, increasing efficiencies and capitalizing on our growth initiatives. We expect Tech Services to deliver higher profitability due to our new incinerator’s second full year of operation and the strength of the industrial economy, particularly the expansion in the chemical space. Safety-Kleen is on track for another solid year of profitable growth. Adding Veolia’s U.S. industrial cleaning business should enable our industrial team to gain meaningful traction. The improving energy markets bode well for us in multiple areas.  Overall, we anticipate a strong Adjusted EBITDA and adjusted free cash flow performance in 2018.”

 

Based on its 2017 financial performance, current market conditions and the Veolia transaction, Clean Harbors expects full-year 2018 Adjusted EBITDA in the range of $440 million to $480 million. On a GAAP basis, the Company’s guidance is based on anticipated 2018 net income in the range of $17 million to $56 million. A reconciliation of the Company’s Adjusted EBITDA guidance to net income guidance is included below. For 2018, Clean Harbors expects to generate adjusted free cash flow in the range of $125 million to $155 million, which is based on anticipated 2018 net cash from operating activities in the range of $295 million to $345 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 measurements 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 since the Company’s loan covenants are based upon levels of Adjusted EBITDA achieved and management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA in accordance with its existing credit agreement, as described in the following reconciliation showing the differences between reported net income (loss) and Adjusted EBITDA for the three and twelve months ended December 31, 2017 and 2016 (in thousands):

 



 

 

 

For the Three Months Ended:

 

For the Year Ended:

 

 

 

December 31,
2017

 

December 31,
2016

 

December 31,
2017

 

December 31,
2016

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

84,194

 

$

(12,713

)

$

100,739

 

$

(39,873

)

Accretion of environmental liabilities

 

2,407

 

2,648

 

9,460

 

10,177

 

Depreciation and amortization

 

71,490

 

71,347

 

288,422

 

287,002

 

Goodwill impairment charge

 

 

 

 

34,013

 

Other expense (income), net

 

3,305

 

(6,932

)

6,119

 

(6,195

)

Loss on early extinguishment of debt

 

 

 

7,891

 

 

Loss (gain) on sale of businesses

 

913

 

(453

)

(30,732

)

(16,884

)

Interest expense, net

 

20,065

 

21,333

 

85,808

 

83,525

 

(Benefit) provision for income taxes

 

(80,542

)

20,708

 

(42,050

)

48,589

 

Adjusted EBITDA

 

$

101,832

 

$

95,938

 

$

425,657

 

$

400,354

 

 

This press release includes a discussion of income from operations, net income (loss) and earnings (loss) per share adjusted for the loss on goodwill impairment charge, loss on early extinguishment of debt, (loss) gain on sale of businesses, the impact of recent U.S. tax law changes, non-cash tax-related valuation allowances and other tax-related changes as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between income from operations and adjusted income from operations, net income (loss) to adjusted net (loss) income, and earnings (loss) per share to adjusted (loss) earnings per share for the three and twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts):

 

 

 

For the Three Months Ended:

 

For the Year Ended:

 

 

 

December 31,
2017

 

December 31,
2016

 

December 31,
2017

 

December 31,
2016

 

Adjusted income from operations

 

 

 

 

 

 

 

 

 

Income from operations

 

$

27,935

 

$

21,943

 

$

127,775

 

$

69,162

 

Goodwill impairment charge

 

 

 

 

34,013

 

Adjusted income from operations

 

$

27,935

 

$

21,943

 

$

127,775

 

$

103,175

 

 

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

84,194

 

$

(12,713

)

$

100,739

 

$

(39,873

)

Goodwill impairment charge, net of $0 taxes

 

 

 

 

34,013

 

Loss on early extinguishment of debt, net of tax

 

 

 

4,735

 

 

Loss (gain) on sale of businesses, net of tax

 

548

 

(289

)

(17,919

)

(15,380

)

Adjustments related to tax law changes

 

(93,009

)

 

(93,009

)

 

Tax-related valuation allowances and other*

 

4,905

 

9,609

 

17,050

 

22,564

 

Adjusted net (loss) income

 

$

(3,362

)

$

(3,393

)

$

11,596

 

$

1,324

 

 

 

 

 

 

 

 

 

 

 

Adjusted (loss) earnings per share

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

$

1.48

 

$

(0.22

)

$

1.76

 

$

(0.69

)

Goodwill impairment charge, net of $0 taxes

 

 

 

 

0.59

 

Loss on early extinguishment of debt, net of tax

 

 

 

0.08

 

 

Loss (gain) on sale of businesses, net of tax

 

0.01

 

(0.01

)

(0.31

)

(0.27

)

Adjustments related to tax law changes

 

(1.63

)

 

(1.63

)

 

Tax-related valuation allowances and other*

 

0.08

 

0.17

 

0.30

 

0.39

 

Adjusted (loss) earnings per share

 

$

(0.06

)

$

(0.06

)

$

0.20

 

$

0.02

 

 


* For the three and twelve months ended December 31, 2017, other amounts include a $2.6 million charge, or $0.04 per share, related to unrecognized tax benefits associated with prior year tax positions taken by the Company.

 



 

Adjusted Free Cash Flow Reconciliation

 

Clean Harbors reports adjusted free cash flow, which it considers to be a measurement of liquidity which provides useful information to investors about our ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities excluding cash impacts of items derived from non-operating activities, such as taxes paid in connection with divestitures, less additions to property, plant and equipment plus proceeds from sales of fixed assets. 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 our measurements 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 (in thousands):

 

 

 

For the Three Months Ended:

 

For the Year Ended:

 

 

 

December 31,
2017

 

December 31,
2016

 

December 31,
2017

 

December 31,
2016

 

Adjusted free cash flow

 

 

 

 

 

 

 

 

 

Net cash from operating activities

 

$

64,229

 

$

80,797

 

$

285,698

 

$

259,624

 

Additions to property, plant and equipment

 

(39,271

)

(44,036

)

(167,007

)

(219,384

)

Proceeds from sale and disposal of fixed assets

 

1,749

 

16,835

 

7,124

 

20,817

 

Tax liability on sale of business

 

14,423

 

 

14,423

 

 

Adjusted free cash flow

 

$

41,130

 

$

53,596

 

$

140,238

 

$

61,057

 

 

Adjusted EBITDA Guidance Reconciliation

 

An itemized reconciliation between projected net income and projected Adjusted EBITDA is as follows (in millions):

 



 

 

 

For the Year Ending
December 31, 2018

 

Projected GAAP net income

 

$17

 

to

 

$56

 

Adjustments:

 

 

 

 

 

 

 

Accretion of environmental liabilities

 

11

 

to

 

10

 

Depreciation and amortization

 

300

 

to

 

290

 

Interest expense, net

 

86

 

to

 

82

 

Provision for income taxes

 

26

 

to

 

42

 

Projected Adjusted EBITDA

 

$440

 

to

 

$480

 

 

Adjusted Free Cash Flow Guidance Reconciliation

 

An itemized reconciliation between projected cash from operating activities and projected adjusted free cash flow is as follows (in millions):

 

 

 

For the Year Ending
December 31, 2018

 

Projected cash from operating activities

 

$295

 

to

 

$345

 

Additions to property, plant and equipment

 

(180)

 

to

 

(200)

 

Proceeds from sale and disposal of fixed assets

 

10 

 

to

 

10 

 

Projected adjusted free cash flow

 

$125 

 

to

 

$155 

 

 

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 www.cleanharbors.com. The live call also can be accessed by dialing 201.689.8881 or 877.709.8155 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, energy and industrial services. The Company serves a diverse customer base, including a majority of the Fortune 500, across the chemical, energy, manufacturing and additional markets, 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 North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates throughout the United States, Canada, 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 future financial and operating results, 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 Clean Harbors’ most recently filed Form 10-K and Form 10-Q. 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 www.cleanharbors.com.

 

Contacts

 

 

 

Investors:

Media:

Jim Buckley

Eric Kraus

SVP Investor Relations

EVP Corporate Communications & Public Affairs

Clean Harbors, Inc.

Clean Harbors, Inc.

781.792.5100

781.792.5100

Buckley.James@cleanharbors.com

Kraus.Eric@cleanharbors.com

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

 

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands except per share amounts)

 

 

 

For the Three Months Ended:

 

For the Year Ended:

 

 

 

December 31,
2017

 

December 31,
2016

 

December 31,
2017

 

December 31,
2016

 

Revenues

 

$

747,403

 

$

692,113

 

$

2,944,978

 

$

2,755,226

 

Cost of revenues (exclusive of items shown separately below)

 

526,690

 

496,661

 

2,062,673

 

1,932,857

 

Selling, general and administrative expenses

 

118,881

 

99,514

 

456,648

 

422,015

 

Accretion of environmental liabilities

 

2,407

 

2,648

 

9,460

 

10,177

 

Depreciation and amortization

 

71,490

 

71,347

 

288,422

 

287,002

 

Goodwill impairment charge

 

 

 

 

34,013

 

Income from operations

 

27,935

 

21,943

 

127,775

 

69,162

 

Other (expense) income, net

 

(3,305

)

6,932

 

(6,119

)

6,195

 

Loss on early extinguishment of debt

 

 

 

(7,891

)

 

(Loss) gain on sale of businesses

 

(913

)

453

 

30,732

 

16,884

 

Interest expense, net

 

(20,065

)

(21,333

)

(85,808

)

(83,525

)

Income before (benefit) provision for income taxes

 

3,652

 

7,995

 

58,689

 

8,716

 

(Benefit) provision for income taxes

 

(80,542

)

20,708

 

(42,050

)

48,589

 

Net income (loss)

 

$

84,194

 

$

(12,713

)

$

100,739

 

$

(39,873

)

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.48

 

$

(0.22

)

$

1.77

 

$

(0.69

)

Diluted

 

$

1.48

 

$

(0.22

)

$

1.76

 

$

(0.69

)

 

 

 

 

 

 

 

 

 

 

Shares used to compute earnings (loss) per share — Basic

 

56,810

 

57,350

 

57,072

 

57,532

 

Shares used to compute earnings (loss) per share — Diluted

 

56,955

 

57,350

 

57,200

 

57,532

 

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 

 

 

December 31, 2017

 

December 31, 2016

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

319,399

 

$

306,997

 

Short-term marketable securities

 

38,179

 

 

Accounts receivable, net

 

528,924

 

496,226

 

Unbilled accounts receivable

 

35,922

 

36,190

 

Deferred costs

 

20,445

 

18,914

 

Inventories and supplies

 

176,012

 

178,428

 

Prepaid expenses and other current assets

 

35,175

 

56,116

 

Total current assets

 

1,154,056

 

1,092,871

 

Property, plant and equipment, net

 

1,587,365

 

1,611,827

 

Other assets:

 

 

 

 

 

Goodwill

 

478,523

 

465,154

 

Permits and other intangibles, net

 

469,128

 

498,721

 

Other

 

17,498

 

13,347

 

Total other assets

 

965,149

 

977,222

 

Total assets

 

$

3,706,570

 

$

3,681,920

 

Current liabilities:

 

 

 

 

 

Current portion of long-term obligations

 

$

4,000

 

$

 

Accounts payable

 

224,231

 

229,534

 

Deferred revenue

 

67,822

 

64,397

 

Accrued expenses

 

187,982

 

190,721

 

Current portion of closure, post-closure and remedial liabilities

 

19,782

 

20,016

 

Total current liabilities

 

503,817

 

504,668

 

Other liabilities:

 

 

 

 

 

Closure and post-closure liabilities, less current portion

 

54,593

 

52,111

 

Remedial liabilities, less current portion

 

111,130

 

114,211

 

Long-term obligations, less current portion

 

1,625,537

 

1,633,272

 

Deferred taxes, unrecognized tax benefits and other long-term liabilities

 

223,291

 

293,417

 

Total other liabilities

 

2,014,551

 

2,093,011

 

Total stockholders’ equity, net

 

1,188,202

 

1,084,241

 

Total liabilities and stockholders’ equity

 

$

3,706,570

 

$

3,681,920

 

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

 

 

For the Year Ended:

 

 

 

December 31, 2017

 

December 31, 2016

 

Cash flows from operating activities:

 

 

 

 

 

Net income (loss)

 

$

100,739

 

$

(39,873

)

Adjustments to reconcile net income (loss) to net cash from operating activities:

 

 

 

 

 

Depreciation and amortization

 

288,422

 

287,002

 

Goodwill impairment charge

 

 

34,013

 

Allowance for doubtful accounts

 

7,901

 

6,907

 

Amortization of deferred financing costs and debt discount

 

3,482

 

3,537

 

Accretion of environmental liabilities

 

9,460

 

10,177

 

Changes in environmental liability estimates

 

(195

)

(4,254

)

Deferred income taxes

 

(83,335

)

15,184

 

Other expense (income), net

 

6,119

 

(5,685

)

Stock-based compensation

 

13,146

 

10,481

 

Excess tax benefit of stock-based compensation

 

 

(1,198

)

Net tax benefit on stock-based awards

 

 

1,165

 

Gain on sale of businesses

 

(30,732

)

(16,884

)

Loss on early extinguishment of debt

 

7,891

 

 

Environmental expenditures

 

(12,965

)

(12,170

)

Changes in assets and liabilities, net of acquisitions

 

 

 

 

 

Accounts receivable and unbilled accounts receivable

 

(33,764

)

(15,009

)

Inventories and supplies

 

(5,002

)

(16,080

)

Other current assets

 

16,720

 

(8,036

)

Accounts payable

 

(10,684

)

(3,503

)

Other current and long-term liabilities

 

8,495

 

13,850

 

Net cash from operating activities

 

285,698

 

259,624

 

Cash flows used in investing activities:

 

 

 

 

 

Additions to property, plant and equipment

 

(167,007

)

(219,384

)

Proceeds from sale and disposal of fixed assets

 

7,124

 

20,817

 

Acquisitions, net of cash acquired

 

(49,227

)

(206,915

)

Additions to intangible assets, including costs to obtain or renew permits

 

(1,617

)

(2,831

)

Purchases of available-for-sale securities

 

(38,342

)

(598

)

Proceeds on sale of businesses, net of transactional costs

 

45,426

 

47,134

 

Proceeds from sale of investments

 

376

 

 

Net cash used in investing activities

 

(203,267

)

(361,777

)

Cash flows (used in) from financing activities:

 

 

 

 

 

Change in uncashed checks

 

(5,940

)

(3,177

)

Proceeds from exercise of stock options

 

46

 

627

 

Tax payments related to withholdings on vested restricted stock

 

(3,149

)

(2,819

)

Repurchases of common stock

 

(48,971

)

(22,188

)

Excess tax benefit of stock-based compensation

 

 

1,198

 

Deferred financing costs paid

 

(5,718

)

(4,031

)

Premiums paid on early extinguishment of debt

 

(6,028

)

 

Principal payments on debt

 

(402,000

)

 

Issuance of senior secured notes, net of discount

 

399,000

 

 

Issuance of senior unsecured notes, including premium

 

 

250,625

 

Net cash (used in) from financing activities

 

(72,760

)

220,235

 

Effect of exchange rate change on cash

 

2,731

 

4,207

 

Increase in cash and cash equivalents

 

12,402

 

122,289

 

Cash and cash equivalents, beginning of year

 

306,997

 

184,708

 

Cash and cash equivalents, end of year

 

$

319,399

 

$

306,997

 

Supplemental information:

 

 

 

 

 

Cash payments for interest and income taxes:

 

 

 

 

 

Interest paid

 

$

93,174

 

$

88,669

 

Income taxes paid

 

18,682

 

29,255

 

Non-cash investing activities:

 

 

 

 

 

Property, plant and equipment accrued

 

16,109

 

9,214

 

Transfer of inventory to property, plant and equipment

 

12,641

 

 

Receivable for estimated purchase price adjustment

 

 

1,910

 

 



 

Supplemental Segment Data (in thousands)

 

 

 

For the Three Months Ended:

 

 

 

December 31, 2017

 

December 31, 2016

 

 

 

Third Party
Revenues

 

Intersegment
Revenues
(Expense), net

 

Direct
Revenues

 

Third Party
Revenues

 

Intersegment
Revenues
(Expense), net

 

Direct
Revenues

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical Services

 

$

249,198

 

$

40,739

 

$

289,937

 

$

225,778

 

$

39,476

 

$

265,254

 

Industrial and Field Services

 

165,952

 

(9,822

)

156,130

 

151,226

 

(10,218

)

141,008

 

Safety-Kleen

 

302,818

 

(30,356

)

272,462

 

288,969

 

(28,683

)

260,286

 

Oil, Gas and Lodging Services

 

27,849

 

391

 

28,240

 

25,137

 

327

 

25,464

 

Corporate Items

 

1,586

 

(952

)

634

 

1,003

 

(902

)

101

 

Total

 

$

747,403

 

$

 

$

747,403

 

$

692,113

 

$

 

$

692,113

 

 

 

 

For the Year Ended:

 

 

 

December 31, 2017

 

December 31, 2016

 

 

 

Third Party
Revenues

 

Intersegment
Revenues
(Expense), net

 

Direct
Revenues

 

Third Party
Revenues

 

Intersegment
Revenues
(Expense), net

 

Direct
Revenues

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical Services

 

$

980,232

 

$

163,917

 

$

1,144,149

 

$

906,495

 

$

150,240

 

$

1,056,735

 

Industrial and Field Services

 

631,216

 

(37,494

)

593,722

 

618,245

 

(36,030

)

582,215

 

Safety-Kleen

 

1,213,703

 

(125,817

)

1,087,886

 

1,110,727

 

(114,644

)

996,083

 

Oil, Gas and Lodging Services

 

117,252

 

2,351

 

119,603

 

116,692

 

3,191

 

119,883

 

Corporate Items

 

2,575

 

(2,957

)

(382

)

3,067

 

(2,757

)

310

 

Total

 

$

2,944,978

 

$

 

$

2,944,978

 

$

2,755,226

 

$

 

$

2,755,226

 

 

 

 

For the Three Months Ended:

 

For the Year Ended:

 

 

 

December 31,
2017

 

December 31,
2016

 

December 31,
2017

 

December 31,
2016

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Technical Services

 

$

72,686

 

$

69,554

 

$

276,592

 

$

271,176

 

Industrial and Field Services

 

6,358

 

12,564

 

43,010

 

51,191

 

Safety-Kleen

 

66,857

 

54,204

 

249,811

 

219,546

 

Oil, Gas and Lodging Services

 

739

 

(3,427

)

1,708

 

(3,292

)

Corporate Items

 

(44,808

)

(36,957

)

(145,464

)

(138,267

)

Total

 

$

101,832

 

$

95,938

 

$

425,657

 

$

400,354