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Clean Harbors Announces Record Fourth Quarter and Year-End 2006 Financial Results

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    Strong Demand for Technical Services Drives 20% Top-Line Growth

NORWELL, Mass.--(BUSINESS WIRE)--March 14, 2007--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 fourth quarter and full year ended December 31, 2006.

Clean Harbors increased revenues by approximately 20 percent to $231.8 million in the fourth quarter of 2006 from $193.7 million in the fourth quarter of 2005. Income from operations grew to $19.8 million from $14.3 million for the fourth quarter of 2005. EBITDA grew by approximately 31 percent to $31.4 million from $23.9 million for the fourth quarter of 2005. See below for a description of EBITDA and a reconciliation to GAAP results.

Net income attributable to common shareholders rose to $11.4 million, or $0.56 per diluted share, from $7.9 million, or $0.43 per diluted share, in the same period of 2005.

Comments on the Fourth Quarter

"The fourth quarter of 2006 was a strong conclusion to the best year in Clean Harbors' history," said Alan S. McKim, Chairman and Chief Executive Officer. "With solid demand across our business lines and good weather, we delivered quarterly revenue in excess of $200 million for the second consecutive quarter, exclusive of any revenue attributed to Teris, which we acquired in August."

"Organic growth in the fourth quarter was primarily driven by our Technical Services business, which continued to perform large facilities projects," McKim said. "Incineration volumes were strong, and we achieved utilization of 91 percent, despite the addition of significant capacity earlier in the year. Reflecting increased activity in both the United States and Canada, total landfill volumes were nearly 30 percent higher than in the same period in 2005."

"In Site Services, we continued our steady geographic expansion with the opening of another branch in southern Florida," said McKim. "We did not have any major emergency response events in the quarter, unlike the fourth quarter of 2005 when we posted more than $17 million of higher margin revenue related to post-hurricane clean-up projects. Consequently, our Site Services margins were down, even though we generated a steady stream of small scale projects that produced approximately $7 million in revenue in the quarter."

Comments on Full-Year 2006

Revenues for the year ended December 31, 2006 increased nearly 17 percent to $829.8 million, compared with $711.2 million for full-year 2005. Income from operations for full-year 2006 increased 45 percent to $74.4 million versus $51.3 million in the prior year. EBITDA (see description below) for 2006 increased 33 percent to $119.9 million from $90.3 million for 2005.

The Company generated net income attributable to common shareholders of $46.4 million, or $2.26 per diluted share, for the full-year 2006. This compares with a 2005 net income attributable to common shareholders of $25.3 million, or $1.45 per diluted share.

"The year 2006 was outstanding for Clean Harbors both financially and operationally," McKim said. "We added substantial incineration capacity, constructed several secure landfill cells, upgraded numerous facilities, expanded our transportation fleet, and exceeded our Health, Safety & Compliance targets. In support of our successful strategy of introducing the Clean Harbors brand into new markets and expanding our footprint, we opened six new Site Services locations in 2006. These initiatives enabled us to post the largest organic increase in revenues in the Company's history."

"At the same time, we successfully completed the Teris acquisition, which will broaden our service offerings and improve our ability to service our customers," said McKim. "Although Teris is still ramping up, it turned in an exemplary month in December. We also met our goal of Teris being accretive in the fourth quarter and we expect to see continued improvement throughout 2007."

"We successfully drove annual top-line growth, while continuing to closely manage our operating costs and environmental liabilities, as well as improve our operating efficiencies," McKim said. "As a result, net income grew substantially from 2005 and EBITDA grew by approximately 33 percent."

Non-GAAP Fourth-Quarter and Full-Year 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 outstanding credit agreement, as described in the following reconciliation showing the differences between reported net income and EBITDA for 2006 and 2005 (in thousands):

                                   For the three      For the year
                                    months ended:         ended:
                                  December December December  December
                                     31,      31,      31,       31,
                                    2006     2005     2006      2005
                                  -------- -------- --------- --------

Net income                        $11,493  $ 7,952  $ 46,675  $25,621
Accretion of environmental
 liabilities                        2,587    2,501    10,220   10,384
Depreciation and amortization       9,043    7,116    35,339   28,633
Loss on early extinguishment of
 debt                                 239        -     8,529        -
Interest expense, net               3,144    4,963    12,447   22,754
Provision for income taxes          4,760    1,595     6,339    3,495
Other (income) expense                174     (184)      447     (611)
Equity interest in joint venture      (50)       -       (61)       -
                                  -------- -------- --------- --------
EBITDA                            $31,390  $23,943  $119,935  $90,276
                                  ======== ======== ========= ========

Business Outlook and Financial Guidance

"We expect 2007 to be another year of solid demand for Clean Harbors services," McKim said. "Volumes at our incinerators are strong, utilization rates are high, and we anticipate that we will continue to benefit from increased outsourcing trends from customers with captive incinerators. We have already taken several strategic steps to position the Company for further growth in 2007. In January, we acquired the remaining 50 percent interest of Teris' joint venture in Puerto Rico, Ensco Caribe. This represents an exciting opportunity to provide our full range of environmental services to businesses across Puerto Rico and the Caribbean under our new subsidiary, Clean Harbors Caribe Inc. We also announced a price increase across all service lines effective March 15, which should counter rising operating costs and support our growth in the second quarter and beyond."

The first quarter is traditionally the slowest quarter of the year for Clean Harbors due to the effect of weather on the Company's plants and customers' operations. For the first quarter of 2007, the Company expects revenue in the range of $200 million to $205 million. The Company expects to generate EBITDA for the first quarter of 2007 in the range of $22 million to $25 million. For 2007, the Company expects to increase revenues by 8 percent to 9 percent, and achieve EBITDA growth in the range of 12 percent to 13 percent.

Conference Call Information

Clean Harbors will conduct a conference call for investors to discuss the information contained in this press release today, Wednesday, March 14, 2007 at 9:00 a.m. (ET). Investors who want to hear a webcast of the call should log onto and select "Investor Relations." In addition, if you are unable to listen to the live webcast, the call will be archived on the investor section of the website.

Those who wish to listen to the fourth-quarter and year-end 2006 conference call webcast should visit the Investor Relations section of the Company's website at The live call also can be accessed by dialing 800.395.0708 or 913.981.5560 (confirmation code: 2469747) 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, Inc.

Clean Harbors, Inc. is North America's leading provider of environmental and hazardous waste management services. With an unmatched infrastructure of 49 waste management facilities, including nine landfills, six incineration locations and six wastewater treatment centers, the Company provides essential services to over 45,000 customers, including more than 325 Fortune 500 companies, thousands of smaller private entities and numerous federal, state and local governmental agencies. 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

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 successfully integrate Teris'
        operations and assets into its existing network of services
        and disposal facilities;

    --  The Company's ability to manage the significant environmental
        liabilities that it assumed in connection with the CSD and
        Teris 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

    --  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 the Investor portal of the Company's Web Page at

               (in thousands except per share amounts)

                                 For the three
                                  months ended:        Year ended:
                               December  December  December  December
                                  31,       31,       31,       31,
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Revenues                       $231,849  $193,714  $829,809  $711,170
Cost of revenues                165,907   138,592   584,835   512,582
Selling, general and
 administrative expenses         34,552    31,179   125,039   108,312
Accretion of environmental
 liabilities                      2,587     2,501    10,220    10,384
Depreciation and amortization     9,043     7,116    35,339    28,633
                               --------- --------- --------- ---------
Income from operations           19,760    14,326    74,376    51,259
Other income (expense)             (174)      184      (447)      611
Loss on early extinguishment
 of debt                           (239)        -    (8,529)        -
Interest (expense), net          (3,144)   (4,963)  (12,447)  (22,754)
                               --------- --------- --------- ---------
Income before provision for
 income taxes and equity
 interest in joint venture       16,203     9,547    52,953    29,116
Provision for income taxes        4,760     1,595     6,339     3,495
Equity interest in joint
 venture                            (50)        -       (61)        -
                               --------- --------- --------- ---------
Net income                       11,493     7,952    46,675    25,621
Redemption of Series C
 Preferred Stock, dividends on
 Series B and C Preferred
 Stocks and accretion on
 Series C Preferred Stock            69        69       276       279
                               --------- --------- --------- ---------
Net income attributable to
 common shareholders           $ 11,424  $  7,883  $ 46,399  $ 25,342
                               ========= ========= ========= =========

Earnings per share:
     Basic earnings
      attributable to common
      shareholders             $   0.58  $   0.46  $   2.38  $   1.62
                               ========= ========= ========= =========
     Diluted earnings
      attributable to common
      shareholders             $   0.56  $   0.43  $   2.26  $   1.45
                               ========= ========= ========= =========

Weighted average common shares
 outstanding                     19,634    17,262    19,526    15,629
                               ========= ========= ========= =========
Weighted average common shares
 outstanding plus potentially
 dilutive common shares          20,637    18,566    20,657    17,717
                               ========= ========= ========= =========
                            (in thousands)

                                             December 31, December 31,
                                                 2006         2005
                                             ------------ ------------
Current assets:
     Cash and cash equivalents               $    73,550  $   132,449
     Restricted cash and cash equivalents              -        3,469
     Marketable securities                        10,240            -
     Accounts receivable, net                    169,581      147,659
     Unbilled accounts receivable                 16,078        7,049
     Deferred costs                                7,140        4,937
     Prepaid expenses                              9,301        6,411
     Supplies inventories                         20,101       12,723
     Deferred tax assets                           9,238          219
     Income tax receivable                           150        1,462
     Properties held for sale                      7,440        7,670
                                             ------------ ------------
        Total current assets                     322,819      324,048
                                             ------------ ------------

Property, plant and equipment, net               244,126      178,524
                                             ------------ ------------

Other assets:
     Deferred financing costs                      7,206        9,508
     Goodwill                                     19,032       19,032
     Permits and other intangibles, net           65,743       77,803
     Investment in joint venture                   2,208            -
     Deferred tax assets                           6,388        1,715
     Other                                         3,286        3,734
                                             ------------ ------------
                                                 103,863      111,792
                                             ------------ ------------
        Total assets                         $   670,808  $   614,364
                                             ============ ============
                            (in thousands)

                                             December 31, December 31,
                                                 2006         2005
                                             ------------ ------------
Current liabilities:
     Uncashed checks                         $    11,083  $     7,982
     Current portion of long-term debt                 -       52,500
     Current portion of capital lease
      obligations                                  1,391        1,893
     Accounts payable                             81,432       71,372
     Accrued disposal costs                        3,058        3,109
     Deferred revenue                             29,409       21,784
     Other accrued expenses                       53,941       49,779
     Current portion of closure, post-
      closure and remedial liabilities            13,707       10,817
     Income taxes payable                          4,333        4,458
                                             ------------ ------------
        Total current liabilities                198,354      223,694
                                             ------------ ------------
Other liabilities:
     Closure and post-closure liabilities,
      less current portion                        23,520       20,728
     Remedial liabilities, less current
      portion                                    136,173      139,144
     Long-term obligations, less current
      maturities                                 120,522       95,790
     Capital lease obligations, less current
      portion                                      2,648        4,108
     Other long-term liabilities                  15,609       14,417
     Accrued pension cost                            796          825
                                             ------------ ------------
        Total other liabilities                  299,268      275,012
                                             ------------ ------------
        Total stockholders' equity, net          173,186      115,658
                                             ------------ ------------
        Total liabilities and stockholders'
         equity                              $   670,808  $   614,364
                                             ============ ============

    CONTACT: Clean Harbors, Inc.
             James M. Rutledge, 781-792-5100
             Executive Vice President and Chief Financial Officer
             Bill Geary, 781-792-5130
             Executive Vice President and General Counsel
             Sharon Merrill Associates, Inc.
             Jim Buckley, 617-542-5300
             Executive Vice President

    SOURCE: Clean Harbors, Inc.

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