CLEAN HARBORS INC - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

for the Quarterly Period Ended
March 31, 2005

Commission File Number 0-16379

Clean Harbors, Inc.

(Exact name of registrant as specified in its charter)

Massachusetts		04-2997780
(State of Incorporation)		(IRS Employer Identification No.)

1501 Washington Street, Braintree, MA		02184-7535
(Address of Principal Executive Offices)		(Zip Code)

(781) 849-1800 ext. 4454

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes ý No o

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $.01 par value		15,117,757
(Class)		(Outstanding at May 3, 2005)

CLEAN HARBORS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ASSETS

Unaudited

(in thousands)

	March 31, 2005		December 31, 2004
Current assets:
Cash and cash equivalents	$	46,034	$	31,081
Marketable securities	—		16,800
Accounts receivable, net of allowance for doubtful accounts of $3,318 and $3,723, respectively	119,574		120,886
Unbilled accounts receivable	7,824		5,377
Deferred costs	4,361		4,923
Prepaid expenses	14,126		13,407
Supplies inventories	10,752		10,318
Deferred tax asset	187		188
Properties held for sale	8,554		8,849
Total current assets	211,412		211,829
Property, plant, and equipment:
Land	13,985		13,992
Landfill assets	7,705		7,435
Buildings and improvements	91,516		90,045
Vehicles and equipment	207,970		204,227
Furniture and fixtures	2,283		2,283
Construction in progress	12,694		13,635
	336,153		331,617
Less—accumulated depreciation and amortization	156,862		151,091
	179,291		180,526
Other assets:
Deferred financing costs	8,668		8,950
Goodwill	19,032		19,032
Permits and other intangibles, net of accumulated depreciation of $23,985 and $22,557, respectively	79,678		80,463
Deferred tax asset	486		488
Other	3,629		3,414
	111,493		112,347
Total assets	$	502,196	$	504,702

The accompanying notes are an integral part of these consolidated financial statements.

CLEAN HARBORS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS’ EQUITY

Unaudited

(dollars in thousands)

	March 31, 2005			December 31, 2004
Current liabilities:
Uncashed checks	$	5,592		$	6,542
Current portion of capital lease obligations	1,622			1,522
Accounts payable	70,714			70,363
Accrued disposal costs	3,091			3,032
Deferred revenue	19,535			22,060
Other accrued expenses	39,987			41,054
Current portion of closure, post-closure and remedial liabilities	15,340			14,258
Income taxes payable	511			2,302
Total current liabilities	156,392			161,133
Other liabilities:
Closure and post-closure liabilities, less current portion of $3,216 and $2,930, respectively	23,275			22,721
Remedial liabilities, less current portion of $12,124 and $11,328, respectively	139,654			144,289
Long-term obligations, less current maturities	148,163			148,122
Capital lease obligations, less current portion	3,973			3,485
Other long-term liabilities	13,232			13,298
Accrued pension cost	597			616
Total other liabilities	328,894			332,531

Commitments and contingent liabilities

Redeemable Series C Convertible Preferred Stock, $.01 par value: authorized 25,000 shares; issued and outstanding – none	—			—

Stockholders’ equity:
Preferred stock, $.01 par value:
Series A convertible preferred stock; Authorized 894,585 shares; issued and outstanding—none	—			—
Series B convertible preferred stock; Authorized 154,416 shares; issued and outstanding 70,000 shares (liquidation preference of $3.5 million)	1			1
Common stock, $.01 par value:
Authorized 20,000,000 shares; issued and outstanding 14,993,345 and 14,327,224 shares, respectively	150			143
Additional paid-in capital	63,606			62,165
Accumulated other comprehensive income	8,250			8,667
Accumulated deficit	(55,097		)	(59,938		)
Total stockholders’ equity	16,910

	Page No.

ITEM 1: Financial Statements
Consolidated Balance Sheets	1
Consolidated Statements of Operations	3
Consolidated Statements of Cash Flows	4
Consolidated Statements of Stockholders’ Equity	5
Notes to Consolidated Financial Statements	6

ITEM 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
ITEM 3: Quantitative and Qualitative Disclosures About Market Risk	35
ITEM 4: Controls and Procedures	36

PART II: OTHER INFORMATION

Items No. 1 through 6	37
Signatures	38