UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2021
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||||||||||||||
Registrant’s telephone number, including area code (781 ) 792-5000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Item 2.02 Results of Operations and Financial Condition
On November 3, 2021, Clean Harbors, Inc. (the “Company”) issued a press release announcing the Company’s results of operations for the third quarter ended September 30, 2021. A copy of that press release is furnished with this report as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished herewith:
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in iXBRL (Inline eXtensible Business Reporting Language) | |||||||
1
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Clean Harbors, Inc. | |||||
| (Registrant) | |||||
| November 3, 2021 | /s/ Michael L. Battles | ||||
| Executive Vice President and Chief Financial Officer | |||||
2
EXHIBIT 99.1
Press Release
Clean Harbors Announces Third-Quarter 2021 Financial Results
•Reports 22% Increase in Q3 Revenues to $951.5 Million
•Delivers Q3 Net Income of $65.4 Million, or EPS of $1.20, with Adjusted EPS of $1.14
•Achieves 10% Growth in Q3 Adjusted EBITDA to $185.1 Million With Margin of 19.5%
•Raises Full-Year 2021 Adjusted EBITDA and Adjusted Free Cash Flow Guidance
NORWELL, Mass. – November 3, 2021 – Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced financial results for the third quarter ended September 30, 2021.
“In the quarter, we experienced a continuation of many of the favorable trends that have supported our business all year – substantial volumes of high-value waste streams for disposal, a wider than normal spread in the re-refining market and steadily growing demand for many of our service businesses,” said Alan S. McKim, Chairman, President and Chief Executive Officer. “These factors enabled us to exceed our guidance and deliver the highest quarterly revenue in Company history. In a market environment disrupted by supply chain bottlenecks, labor shortages and inflationary cost pressures, our financial results reflect the strong execution by our leadership team in managing through challenging conditions.”
Third-Quarter 2021 Results
Revenues increased 22% to $951.5 million from $779.3 million in the same period of 2020. Income from operations grew 25% to $104.8 million from $83.9 million in the third quarter of 2020.
Net income was $65.4 million, or $1.20 per diluted share. This compares with net income of $54.9 million, or $0.99 per diluted share, for the same period in 2020. Adjusted for certain items in both periods, adjusted net income was $62.2 million, or $1.14 per diluted share, for the third quarter of 2021, compared with adjusted net income of $49.9 million, or $0.90 per diluted share, in the same period of 2020. (See reconciliation tables below) Net income and adjusted net income results for the third quarter of 2021 included pre-tax integration and severance costs of $6.2 million, primarily related to the acquisition of HydroChemPSC. Comparable costs in the third quarter of 2020 were $1.8 million.
Adjusted EBITDA (see description below) increased 10% to $185.1 million from $167.8 million in the same period of 2020. Benefits from Canadian pandemic programs accounted for $1.1 million of contributions in the third quarter of 2021, compared with $13.3 million in benefits from both Canadian and U.S. government programs in the same period of 2020.
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
Q3 2021 Review
“Revenues in our Environmental Services segment increased 15%, reflecting strong demand for our disposal and recycling services, as well as growth in many of our service businesses,” McKim said. “Our incineration network produced utilization of 82%, compared with 80% in the prior year, driven by record drum volumes and direct burn streams. We raised prices to help offset cost increases and focused our available capacity on high-value waste streams, resulting in an 18% increase in the average price per pound from a year ago. Landfill volumes were down 5% due to lower project activity, but our average price per ton increased 17% due to the mix of waste. Our Safety-Kleen Environmental branches registered another solid quarter, with most core service offerings trending up. For the second consecutive quarter we saw a sizeable increase in our Industrial Services business, as customers continue to address the substantial backlog of deferred maintenance related to the pandemic.”
“With industry dynamics on the supply side remaining favorable, our Safety-Kleen Sustainability Solutions (SKSS) segment again delivered exceptional results. Revenues grew 60% from a year ago while Adjusted EBITDA more than doubled,” McKim said. “Demand for our base and blended oil was high throughout the quarter, leading to a healthy pricing environment. Market conditions, including the underlying impact of IMO 2020, enabled us to deliver the widest re-refinery spread in our history. Waste oil collections were strong at 60 million gallons, up from 50 million a year ago.”
Business Outlook and Financial Guidance
“The positive demand environment in North America that we have witnessed all year is showing no signs of slowing as we enter the final quarter of 2021,” McKim said. “Customers continue to rely on Clean Harbors for their environmental and industrial needs, and to be their sustainability partner. We expect to conclude the year with a strong finish in all our core lines of business. In early October, we completed the acquisition of HydroChemPSC (“HPC”), which we believe will accelerate our growth momentum as we take a leadership position in the U.S. Industrial Services market. Within our Environmental Services segment, we have a considerable backlog of waste volumes within our network and at our customers’ sites. Our Field Services business has transitioned well from COVID-19 decontamination work back to its core operations, and the addition of HPC’s utility group will expand our scale. The main challenge for this segment in the coming months will be navigating through the ongoing headwinds of cost inflation, supply chain disruption, labor availability and transportation-related limitations. We intend to accelerate the pricing initiatives we have underway to combat these cost and labor challenges.
“Within our SKSS segment, the wide spread between used oil to base oil pricing has continued into the back half of the year based on market conditions. The changes we have made in creating the SKSS business will also continue to benefit us going forward,” McKim concluded. “Overall, we continue to maintain a favorable outlook in both of our segments for the remainder of the year and into 2022.”
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
Based on its third-quarter financial performance, completion of the HPC acquisition and current market conditions, Clean Harbors is raising its 2021 guidance. For the year, the Company now expects:
•Adjusted EBITDA in the range of $655 million to $675 million, including an approximately $15 million contribution from HPC. This range is based on anticipated GAAP net income in the range of $171 million to $196 million; and
•Adjusted free cash flow in the range of $310 million to $330 million, based on anticipated net cash from operating activities in the range of $500 million to $540 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 measurement 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 revolving credit agreement, as described in the following reconciliation showing the differences between reported net income and Adjusted EBITDA for the three and nine months ended September 30, 2021 and 2020 (in thousands, except percentages):
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
| Net income | $ | 65,443 | $ | 54,910 | $ | 154,254 | $ | 95,505 | |||||||||||||||
| Accretion of environmental liabilities | 2,799 | 2,822 | 8,625 | 8,149 | |||||||||||||||||||
| Stock-based compensation | 6,001 | 6,662 | 12,786 | 12,739 | |||||||||||||||||||
| Depreciation and amortization | 71,451 | 74,470 | 215,206 | 221,497 | |||||||||||||||||||
| Other (income) expense, net | (199) | (2,268) | 2,509 | 597 | |||||||||||||||||||
| Loss on sale of businesses | — | 118 | — | 3,376 | |||||||||||||||||||
| Interest expense, net of interest income | 17,984 | 17,407 | 53,953 | 54,848 | |||||||||||||||||||
| Provision for income taxes | 21,605 | 13,712 | 54,973 | 35,269 | |||||||||||||||||||
| Adjusted EBITDA | $ | 185,084 | $ | 167,833 | $ | 502,306 | $ | 431,980 | |||||||||||||||
| Adjusted EBITDA Margin | 19.5 | % | 21.5 | % | 18.7 | % | 18.4 | % | |||||||||||||||
This press release includes a discussion of net income and earnings per share adjusted for the loss on sale of businesses and the impacts of tax-related valuation allowances and other items 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 net income and adjusted net income, and the difference between earnings per share and
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
adjusted earnings per share, for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share amounts):
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
| Adjusted net income | |||||||||||||||||||||||
| Net income | $ | 65,443 | $ | 54,910 | $ | 154,254 | $ | 95,505 | |||||||||||||||
| Loss on sale of businesses | — | 118 | — | 3,376 | |||||||||||||||||||
| Tax-related valuation allowances and other* | (3,228) | (5,128) | (3,221) | (4,502) | |||||||||||||||||||
| Adjusted net income | $ | 62,215 | $ | 49,900 | $ | 151,033 | $ | 94,379 | |||||||||||||||
| Adjusted earnings per share | |||||||||||||||||||||||
| Earnings per share | $ | 1.20 | $ | 0.99 | $ | 2.81 | $ | 1.71 | |||||||||||||||
| Loss on sale of businesses | — | — | — | 0.06 | |||||||||||||||||||
| Tax-related valuation allowances and other* | (0.06) | (0.09) | (0.06) | (0.08) | |||||||||||||||||||
Adjusted earnings per share | $ | 1.14 | $ | 0.90 | $ | 2.75 | $ | 1.69 | |||||||||||||||
* For the three and nine months ended September 30, 2020, other amounts include a $1.6 million benefit, or $0.03 per share, related to tax benefits from impacts of amendments to prior period tax filings.
Adjusted Free Cash Flow Reconciliation
Clean Harbors reports adjusted free cash flow, which it considers to be a measurement of liquidity that provides useful information to investors about its 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, less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets. The Company excludes cash impacts of items derived from non-operating activities such as taxes paid in connection with divestitures and in 2020 also excluded cash paid in connection with the purchase of its corporate headquarters and certain capital improvements to the site as these expenditures are considered one-time in nature. 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 the Company’s measurement 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 for the three and nine months ended September 30, 2021 and 2020 (in thousands):
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
| Adjusted free cash flow | |||||||||||||||||||||||
| Net cash from operating activities | $ | 102,794 | $ | 143,946 | $ | 368,226 | $ | 317,432 | |||||||||||||||
| Additions to property, plant and equipment | (54,666) | (24,636) | (146,654) | (150,357) | |||||||||||||||||||
| Purchase and capital improvements of corporate HQ | — | — | — | 21,080 | |||||||||||||||||||
| Proceeds from sale and disposal of fixed assets | 12,945 | 4,206 | 16,424 | 7,307 | |||||||||||||||||||
| Adjusted free cash flow | $ | 61,073 | $ | 123,516 | $ | 237,996 | $ | 195,462 | |||||||||||||||
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
Adjusted EBITDA Guidance Reconciliation
An itemized reconciliation between projected GAAP net income and projected Adjusted EBITDA is as follows (in millions):
| For the Year Ending December 31, 2021 | |||||||||||
| Projected GAAP net income | $171 | to | $196 | ||||||||
| Adjustments: | |||||||||||
| Accretion of environmental liabilities | 12 | to | 11 | ||||||||
| Stock-based compensation | 18 | to | 19 | ||||||||
| Depreciation and amortization | 305 | to | 295 | ||||||||
| Other expense, net | 3 | to | 3 | ||||||||
| Interest expense, net | 78 | to | 77 | ||||||||
| Provision for income taxes | 68 | to | 74 | ||||||||
| Projected Adjusted EBITDA | $655 | to | $675 | ||||||||
Adjusted Free Cash Flow Guidance Reconciliation
An itemized reconciliation between projected net cash from operating activities and projected adjusted free cash flow is as follows (in millions):
| For the Year Ending December 31, 2021 | |||||||||||
| Projected net cash from operating activities | $500 | to | $540 | ||||||||
| Additions to property, plant and equipment | (206) | to | (226) | ||||||||
| Proceeds from sale and disposal of fixed assets | 16 | to | 16 | ||||||||
| Projected adjusted free cash flow | $310 | to | $330 | ||||||||
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 and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, energy and manufacturing, 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 in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit www.cleanharbors.com.
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • 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,” “seeks,” “should,” “estimates,” “projects,” “may,” “likely,” 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, the impact of the HPC acquisition and those items identified as “Risk Factors” in Clean Harbors’ most recently filed Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. 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:
Michael L. Battles | Jim Buckley | |||||||
EVP and Chief Financial Officer | SVP Investor Relations | |||||||
Clean Harbors, Inc. | Clean Harbors, Inc. | |||||||
781.792.5100 | 781.792.5100 | |||||||
InvestorRelations@cleanharbors.com | Buckley.James@cleanharbors.com | |||||||
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.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 Nine Months Ended | ||||||||||||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||
| Revenues | $ | 951,479 | $ | 779,344 | $ | 2,686,085 | $ | 2,347,907 | |||||||||||||||
| Cost of revenues: (exclusive of items shown separately below) | 639,232 | 511,629 | 1,817,654 | 1,588,976 | |||||||||||||||||||
| Selling, general and administrative expenses | 133,164 | 106,544 | 378,911 | 339,690 | |||||||||||||||||||
| Accretion of environmental liabilities | 2,799 | 2,822 | 8,625 | 8,149 | |||||||||||||||||||
| Depreciation and amortization | 71,451 | 74,470 | 215,206 | 221,497 | |||||||||||||||||||
| Income from operations | 104,833 | 83,879 | 265,689 | 189,595 | |||||||||||||||||||
| Other income (expense), net | 199 | 2,268 | (2,509) | (597) | |||||||||||||||||||
| Loss on sale of businesses | — | (118) | — | (3,376) | |||||||||||||||||||
| Interest expense, net | (17,984) | (17,407) | (53,953) | (54,848) | |||||||||||||||||||
| Income before provision for income taxes | 87,048 | 68,622 | 209,227 | 130,774 | |||||||||||||||||||
| Provision for income taxes | 21,605 | 13,712 | 54,973 | 35,269 | |||||||||||||||||||
| Net income | $ | 65,443 | $ | 54,910 | $ | 154,254 | $ | 95,505 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 1.20 | $ | 0.99 | $ | 2.83 | $ | 1.72 | |||||||||||||||
| Diluted | $ | 1.20 | $ | 0.99 | $ | 2.81 | $ | 1.71 | |||||||||||||||
| Shares used to compute earnings per share - Basic | 54,411 | 55,592 | 54,553 | 55,646 | |||||||||||||||||||
| Shares used to compute earnings per share - Diluted | 54,707 | 55,738 | 54,862 | 55,832 | |||||||||||||||||||
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
CLEAN HARBORS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| September 30, 2021 | December 31, 2020 | ||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 646,663 | $ | 519,101 | |||||||
| Short-term marketable securities | 64,844 | 51,857 | |||||||||
| Accounts receivable, net | 703,199 | 611,534 | |||||||||
| Unbilled accounts receivable | 69,912 | 55,681 | |||||||||
| Inventories and supplies | 228,682 | 220,498 | |||||||||
| Prepaid expenses and other current assets | 70,864 | 67,051 | |||||||||
| Total current assets | 1,784,164 | 1,525,722 | |||||||||
| Property, plant and equipment, net | 1,508,356 | 1,525,298 | |||||||||
| Other assets: | |||||||||||
| Operating lease right-of-use assets | 137,429 | 150,341 | |||||||||
| Goodwill | 543,028 | 527,023 | |||||||||
| Permits and other intangibles, net | 366,497 | 386,620 | |||||||||
| Other | 14,825 | 16,516 | |||||||||
| Total other assets | 1,061,779 | 1,080,500 | |||||||||
| Total assets | $ | 4,354,299 | $ | 4,131,520 | |||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | 7,535 | $ | 7,535 | |||||||
| Accounts payable | 286,565 | 195,878 | |||||||||
| Deferred revenue | 86,589 | 74,066 | |||||||||
| Accrued expenses and other current liabilities | 299,427 | 295,823 | |||||||||
| Current portion of closure, post-closure and remedial liabilities | 23,288 | 26,093 | |||||||||
| Current portion of operating lease liabilities | 36,497 | 36,750 | |||||||||
| Total current liabilities | 739,901 | 636,145 | |||||||||
| Other liabilities: | |||||||||||
| Closure and post-closure liabilities, less current portion | 82,809 | 74,023 | |||||||||
| Remedial liabilities, less current portion | 97,747 | 102,623 | |||||||||
| Long-term debt, less current portion | 1,546,284 | 1,549,641 | |||||||||
| Operating lease liabilities, less current portion | 102,093 | 114,258 | |||||||||
| Deferred tax liabilities | 231,663 | 230,097 | |||||||||
| Other long-term liabilities | 90,242 | 83,182 | |||||||||
| Total other liabilities | 2,150,838 | 2,153,824 | |||||||||
Total stockholders’ equity, net | 1,463,560 | 1,341,551 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,354,299 | $ | 4,131,520 | |||||||
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
CLEAN HARBORS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| For the Nine Months Ended | |||||||||||
| September 30, 2021 | September 30, 2020 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 154,254 | $ | 95,505 | |||||||
| Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
| Depreciation and amortization | 215,206 | 221,497 | |||||||||
| Allowance for doubtful accounts | 7,186 | 10,441 | |||||||||
| Amortization of deferred financing costs and debt discount | 2,718 | 2,688 | |||||||||
| Accretion of environmental liabilities | 8,625 | 8,149 | |||||||||
| Changes in environmental liability estimates | 341 | 9,050 | |||||||||
| Deferred income taxes | 5,202 | — | |||||||||
| Other expense, net | 2,509 | 597 | |||||||||
| Stock-based compensation | 12,786 | 12,739 | |||||||||
| Loss on sale of businesses | — | 3,376 | |||||||||
| Environmental expenditures | (12,223) | (8,816) | |||||||||
| Changes in assets and liabilities, net of acquisitions: | |||||||||||
| Accounts receivable and unbilled accounts receivable | (113,601) | 23,969 | |||||||||
| Inventories and supplies | (12,882) | (9,554) | |||||||||
| Other current and non-current assets | (10,785) | (19,320) | |||||||||
| Accounts payable | 86,974 | (63,898) | |||||||||
| Other current and long-term liabilities | 21,916 | 31,009 | |||||||||
| Net cash from operating activities | 368,226 | 317,432 | |||||||||
| Cash flows used in investing activities: | |||||||||||
| Additions to property, plant and equipment | (146,654) | (150,357) | |||||||||
| Proceeds from sale and disposal of fixed assets | 16,424 | 7,307 | |||||||||
| Acquisitions, net of cash acquired | (22,819) | (8,839) | |||||||||
| Proceeds from sale of businesses, net of transactional costs | — | 7,712 | |||||||||
| Additions to intangible assets including costs to obtain or renew permits | (2,659) | (1,863) | |||||||||
| Proceeds from sale of available-for-sale securities | 83,226 | 39,141 | |||||||||
| Purchases of available-for-sale securities | (96,785) | (53,397) | |||||||||
| Net cash used in investing activities | (169,267) | (160,296) | |||||||||
| Cash flows used in financing activities: | |||||||||||
| Change in uncashed checks | (4,323) | 381 | |||||||||
| Tax payments related to withholdings on vested restricted stock | (7,383) | (4,407) | |||||||||
| Repurchases of common stock | (48,409) | (39,542) | |||||||||
| Deferred financing costs paid | (150) | — | |||||||||
| Payments on finance leases | (5,845) | (2,755) | |||||||||
| Principal payments on debt | (5,652) | (5,652) | |||||||||
| Borrowing from revolving credit facility | — | 150,000 | |||||||||
| Payment on revolving credit facility | — | (150,000) | |||||||||
| Net cash used in financing activities | (71,762) | (51,975) | |||||||||
| Effect of exchange rate change on cash | 365 | (1,446) | |||||||||
| Increase in cash and cash equivalents | 127,562 | 103,715 | |||||||||
| Cash and cash equivalents, beginning of period | 519,101 | 371,991 | |||||||||
| Cash and cash equivalents, end of period | $ | 646,663 | $ | 475,706 | |||||||
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com
| Supplemental information: | |||||||||||
| Cash payments for interest and income taxes: | |||||||||||
| Interest paid | $ | 61,807 | $ | 66,000 | |||||||
| Income taxes paid, net of refunds | 48,202 | 14,195 | |||||||||
| Non-cash investing activities: | |||||||||||
| Property, plant and equipment accrued | 11,561 | 11,732 | |||||||||
| ROU assets obtained in exchange for operating lease liabilities | 18,528 | 19,993 | |||||||||
| ROU assets obtained in exchange for finance lease liabilities | 18,704 | 28,333 | |||||||||
Supplemental Segment Data (in thousands)
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||
| Revenue | September 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||
| Third Party Revenues | Intersegment Revenues (Expense), net | Direct Revenues | Third Party Revenues | Intersegment Revenues (Expense), net | Direct Revenues | ||||||||||||||||||||||||||||||
| Environmental Services | $ | 743,831 | $ | 1,802 | $ | 745,633 | $ | 651,689 | $ | (1,129) | $ | 650,560 | |||||||||||||||||||||||
| Safety-Kleen Sustainability Solutions | 207,589 | (1,802) | 205,787 | 127,583 | 1,129 | 128,712 | |||||||||||||||||||||||||||||
| Corporate Items | 59 | — | 59 | 72 | — | 72 | |||||||||||||||||||||||||||||
| Total | $ | 951,479 | $ | — | $ | 951,479 | $ | 779,344 | $ | — | $ | 779,344 | |||||||||||||||||||||||
| For the Nine Months Ended | |||||||||||||||||||||||||||||||||||
| Revenue | September 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||
| Third Party Revenues | Intersegment Revenues (Expense), net | Direct Revenues | Third Party Revenues | Intersegment Revenues (Expense), net | Direct Revenues | ||||||||||||||||||||||||||||||
| Environmental Services | $ | 2,119,856 | $ | 4,476 | $ | 2,124,332 | $ | 1,969,445 | $ | (1,099) | $ | 1,968,346 | |||||||||||||||||||||||
| Safety-Kleen Sustainability Solutions | 566,012 | (4,476) | 561,536 | 378,244 | 1,099 | 379,343 | |||||||||||||||||||||||||||||
| Corporate Items | 217 | — | 217 | 218 | — | 218 | |||||||||||||||||||||||||||||
| Total | $ | 2,686,085 | $ | — | $ | 2,686,085 | $ | 2,347,907 | $ | — | $ | 2,347,907 | |||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| Adjusted EBITDA | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||||||||
| Environmental Services | $ | 166,471 | $ | 180,002 | $ | 482,766 | $ | 502,101 | |||||||||||||||
| Safety-Kleen Sustainability Solutions | 70,810 | 29,613 | 165,756 | 62,248 | |||||||||||||||||||
| Corporate Items | (52,197) | (41,782) | (146,216) | (132,369) | |||||||||||||||||||
| Total | $ | 185,084 | $ | 167,833 | $ | 502,306 | $ | 431,980 | |||||||||||||||
Clean Harbors • 42 Longwater Drive • PO Box 9149 • Norwell, Massachusetts 02061-9149 • 800.282.0058 • www.cleanharbors.com