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8-K - 8-K - CLEAN HARBORS INCa11-1954_68k.htm

Exhibit 99.1

 

Press Release

 

Clean Harbors Reports Fourth-Quarter
and Year-End 2010 Financial Results

 

·                  Contributions Across Business Lines Drive Strong Results

·                  Q4 Revenue Increases 20% to $417 Million

·                  Q4 Net Income Up 68%; EBITDA Grows to $70.3 Million

·                  Company Increases 2011 Guidance

 

Norwell, MA — February 23, 2011 Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental and energy and industrial services throughout North America, today announced financial results for the fourth quarter and year ended December 31, 2010.

 

Revenues increased 20% to $417.1 million from $347.0 million in the fourth quarter of 2009, reflecting a strong contribution from both its environmental and energy and industrial businesses. Income from operations increased 54% to $43.0 million from $27.9 million in the fourth quarter of 2009.

 

Fourth quarter 2010 net income grew to $23.3 million, or $0.88 per diluted share, from $13.9 million, or $0.53 per diluted share, in the fourth quarter of 2009.  EBITDA (see description below) increased to $70.3 million from $52.6 million in the fourth quarter of 2009.

 

Comments on the Fourth Quarter

 

“Clean Harbors concluded a successful 2010 with a strong fourth-quarter performance, as we delivered 34 percent growth in EBITDA on a 20 percent increase in revenue,” said Alan S. McKim, Chairman and Chief Executive Officer.  “We experienced a continuation of the favorable industry trends we saw in the third quarter, achieving double-digit growth across a number of key markets including Chemicals, Manufacturing, Oil & Gas, Refineries and Utilities.”

 

“Both our Environmental business and our Energy and Industrial business generated momentum during the quarter,” McKim said. “Within Environmental, utilization at our incinerators exceeded 93% for the quarter — our highest level of 2010.  In addition, a sharp uptick in projects drove total landfill volumes up by more than 60 percent from the same period of 2009.  Within our Energy and Industrial business, increased investments in Western Canada by major energy companies continued to spark production activity, creating new opportunities for us throughout the region and generating another excellent quarter for our lodging business.”

 

Full-Year 2010 Results

 

Revenues for 2010 increased 61% to $1.73 billion from $1.07 billion in 2009.  The Company’s participation in the oil spill response efforts in the Gulf of Mexico and Michigan generated revenues of approximately $253 million in 2010.  Income from operations more than doubled to $211.9 million from $82.1 million in 2009.  2010 net income grew to $130.5 million, or $4.93 per diluted share, from $36.7

 

GRAPHIC

 

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

 



 

million, or $1.47 per diluted share, in 2009.  EBITDA (see description below) doubled to $314.7 million from $157.6 million for 2009.

 

The Company concluded 2010 with cash and marketable securities of $305.4 million, compared with $235.6 million at December 31, 2009.

 

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 fourth quarter and full year of 2010 and 2009 (in thousands):

 

 

 

For the three months ended:

 

For the year ended:

 

 

 

December 31,
2010

 

December 31,
2009

 

December 31,
2010

 

December 31,
2009

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

23,329

 

$

13,922

 

$

130,515

 

$

36,686

 

Accretion of environmental liabilities

 

2,508

 

2,689

 

10,307

 

10,617

 

Depreciation and amortization

 

24,802

 

21,947

 

92,473

 

64,898

 

Other income

 

(310

)

(104

)

(2,795

)

(259

)

Loss on early extinguishment of debt

 

 

 

2,294

 

4,853

 

Interest expense, net

 

6,164

 

6,454

 

27,936

 

15,999

 

Provision for income taxes

 

13,815

 

8,678

 

56,756

 

26,225

 

Income from discontinued operations, net of tax

 

 

(1,027

)

(2,794

)

(1,439

)

EBITDA

 

$

70,308

 

$

52,559

 

$

314,692

 

$

157,580

 

 

Business Outlook and Financial Guidance

 

“Our outlook remains decidedly positive as we head into 2011.  We are continuing to see indications of the general economic recovery as we maintain an active pipeline of potential new projects within both our Environmental and Energy and Industrial businesses.  We are excited about the prospects for our pending acquisition of Badger Daylighting, and are continuing to evaluate additional strategic acquisition opportunities,” McKim concluded.

 

Based on fourth-quarter performance, and current market conditions, Clean Harbors is increasing its 2011 annual revenue and EBITDA guidance.  The Company currently expects 2011 revenues in the range of

 



 

$1.54 billion to $1.59 billion, up from its previous revenue guidance of $1.52 billion to $1.57 billion.  For 2011, the Company expects EBITDA in the range of $262 million to $270 million, an increase from its previous guidance of $258 million to $267 million.  This guidance is exclusive of any potential future acquisitions, including the Company’s planned purchase of Badger Daylighting.

 

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, 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 webcast should log onto www.cleanharbors.com/investor_relations.  The live call also can be accessed by dialing 877.709.8155 or 201.689.8881 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 50,000 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 175 locations, including over 50 waste management facilities, throughout North America in 36 U.S. states, seven Canadian provinces, Mexico and Puerto Rico.  The Company also operates international locations in Bulgaria, China, Singapore, Sweden, Thailand and the United Kingdom.  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 at www.cleanharbors.com/investor_relations.

 

Contacts:

 

 

 

 

 

 

 

 

 

James M. Rutledge

 

Bill Geary

 

Jim Buckley

EVP and Chief Financial Officer

 

Corporate Counsel for Public Affairs

 

Executive Vice President

Clean Harbors, Inc.

 

Clean Harbors, Inc.

 

Sharon Merrill Associates

781.792.5100

 

781.792.5130

 

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:

 

For the year ended:

 

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

Revenues

 

$

417,058

 

$

346,969

 

$

1,731,244

 

$

1,074,220

 

Cost of revenues (exclusive of items shown separately below)

 

290,770

 

252,816

 

1,210,740

 

753,483

 

Selling, general and administrative expenses

 

55,980

 

41,594

 

205,812

 

163,157

 

Accretion of environmental liabilities

 

2,508

 

2,689

 

10,307

 

10,617

 

Depreciation and amortization

 

24,802

 

21,947

 

92,473

 

64,898

 

Income from operations

 

42,998

 

27,923

 

211,912

 

82,065

 

Other income

 

310

 

104

 

2,795

 

259

 

Loss on early extinguishment of debt

 

 

 

(2,294

)

(4,853

)

Interest (expense), net

 

(6,164

)

(6,454

)

(27,936

)

(15,999

)

Income from continuing operations before provision for income taxes

 

37,144

 

21,573

 

184,477

 

61,472

 

Provision for income taxes

 

13,815

 

8,678

 

56,756

 

26,225

 

Income from continuing operations

 

23,329

 

12,895

 

127,721

 

35,247

 

Income from discontinued operations, net of tax

 

 

1,027

 

2,794

 

1,439

 

Net income

 

$

23,329

 

$

13,922

 

$

130,515

 

$

36,686

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.88

 

$

0.53

 

$

4.96

 

$

1.48

 

Diluted

 

$

0.88

 

$

0.53

 

$

4.93

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

26,371

 

26,244

 

26,311

 

24,817

 

Weighted average common shares outstanding plus potentially dilutive common shares

 

26,585

 

26,363

 

26,467

 

24,933

 

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

(in thousands)

 

 

 

December 31,

 

December 31,

 

 

 

2010

 

2009

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

302,210

 

$

233,546

 

Marketable securities

 

3,174

 

2,072

 

Accounts receivable, net

 

332,678

 

274,918

 

Unbilled accounts receivable

 

19,117

 

12,331

 

Deferred costs

 

6,891

 

5,192

 

Prepaid expenses and other current assets

 

28,939

 

18,348

 

Supplies inventories

 

44,546

 

41,417

 

Deferred tax assets

 

14,982

 

18,865

 

Assets held for sale

 

 

13,561

 

Total current assets

 

752,537

 

620,250

 

 

 

 

 

 

 

Property, plant and equipment, net

 

655,394

 

589,944

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Long-term investments

 

5,437

 

6,503

 

Deferred financing costs

 

7,768

 

10,156

 

Goodwill

 

60,252

 

56,085

 

Permits and other intangibles, net

 

114,400

 

114,188

 

Other

 

6,687

 

3,942

 

Total other assets

 

194,544

 

190,874

 

Total assets

 

$

1,602,475

 

$

1,401,068

 

 



 

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS’ EQUITY

(in thousands)

 

 

 

December 31,

 

December 31,

 

 

 

2010

 

2009

 

Current liabilities:

 

 

 

 

 

Current portion of capital lease obligations

 

$

7,954

 

$

1,923

 

Accounts payable

 

136,978

 

97,923

 

Deferred revenue

 

30,745

 

21,156

 

Accrued expenses

 

116,089

 

90,707

 

Current portion of closure, post-closure and remedial liabilities

 

14,518

 

18,412

 

Liabilities held for sale

 

 

3,199

 

Total current liabilities

 

306,284

 

233,320

 

Other liabilities:

 

 

 

 

 

Closure and post-closure liabilities, less current portion

 

32,830

 

28,505

 

Remedial liabilities, less current portion

 

128,944

 

134,379

 

Long-term obligations

 

264,007

 

292,433

 

Capital lease obligations, less current portion

 

6,839

 

6,915

 

Unrecognized tax benefits and other long-term liabilities

 

82,744

 

91,691

 

Total other liabilities

 

515,364

 

553,923

 

Total stockholders’ equity, net

 

780,827

 

613,825

 

Total liabilities and stockholders’ equity

 

$

1,602,475

 

$

1,401,068