Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q1 2023 Earnings Presentation
18 slides from Clean Harbors's earnings presentation, May 3, 2023
Slide 1: First-Quarter 2023 Investor Review
First-Quarter 2023 Investor Review May 3, 2023 1
Slide 2: Forward Looking Statements and GAAP Disclaimer
Forward Looking Statements and GAAP Disclaimer These slides contain (and the accompanying oral discussion will contain) forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "seeks," "should," "estimates," "proje
Slide 3: Summary of Q1 Results
Summary of Q1 Results ▪ Revenue of $1.31B, up 12% YoY reflecting strong organic growth in ES segment ▪ GAAP EPS of $1.33 and Adjusted EPS* of $1.36 ▪ Adjusted EBITDA* increased 19% to $215.1M; Adjusted EBITDA margin of 16.5% ▪ Adjusted free cash flow* was ($51.8) million compared with ($107.6) milli
Slide 4: Environmental Services
Environmental Services $1,070.7 Q1 Performance $947.4 ▪ Strong YoY increase in revenue driven by pricing, growth across service businesses, and continued high demand for disposal and Revenue recycling + 13% (in millions) ▪ Adjusted EBITDA rose due to higher revenue and significant margin enhancement
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $236.5 $221.6 Q1 Performance ▪ Revenue increased due to base oil volumes, contribution from Revenue Synergy acquisition and higher sales of ancillary services + 7% (in millions) ▪ Adjusted EBITDA and margin decrease driven by market weakness, current pricing env
Slide 6: Disciplined Capital Allocation Strategy – Driven by ROIC
Disciplined Capital Allocation Strategy – Driven by ROIC Organic Growth Share ▪ Invest in capex to drive Investments Repurchases organic growth ▪ Evaluate acquisition and divestiture opportunities ▪ Execute authorized buyback plan Acquisitions Debt ▪ Assess current debt structure and leverage & Dive
Slide 7: Financial Overview
THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 7
Slide 8: Q1 Income Statement
Q1 Income Statement (in millions, except per share data) Q1 2023 Q1 2022 Revenues $1,307.4 $1,169.1 Cost of revenues $931.5 $843.4 Gross profit $375.9 $325.7 Gross margin % 28.7% 27.9% Selling, general and administrative expenses $166.8 $151.2 SG&A % 12.8% 12.9% Depreciation and amortization $84.8 $
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 3/31/23 12/31/22 3/31/22 Cash and short-term marketable securities $376.1 $554.6 $414.9 Billed and unbilled receivables $1,101.2 $1,071.6 $1,024.2 Accounts payable $427.5 $446.6 $394.2 Current and long-term debt $2,419.7 $2,424.8 $2,531.5 Environmental liabilit
Slide 10: Cash Flow Highlights
Cash Flow Highlights Q1 2023 Q1 2022 (in millions) Cash from (used in) operations $28.0 ($38.6) Capital expenditures, net of disposals ($79.8) ($69.0) Adjusted free cash flow* ($51.8) ($107.6) Share repurchases $3.0 $3.7 * Please refer to the appendix in this presentation for a reconciliation to the
Slide 11: Guidance (as of May 3, 2023)
Guidance (as of May 3, 2023) Full-Year 2023 (in millions) Range Net Income $364 to $400 Adjusted EBITDA* $1,020 to $1,060 Net Cash from Operating Activities $705 to $765 Adjusted Free Cash Flow* $305 to $345 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITDA
Slide 12: Appendix
APPENDIX THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 12
Slide 13: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except percentages) For the Three Months Ended March 31, 2023 March 31, 2022 Net income $ 72,401 $ 45,314 Accretion of environmental liabilities 3,407 3,156 Stock-based compensation 6,018 5,712 Depreciation and amortization 84,758 84,298 Other income, n
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended March 31, 2023 March 31, 2022 Adjusted net income Net income $ 72,401 $ 45,314 Loss on early extinguishment of debt 2,362 — Tax-related valuation allowances and other* (653) 114 Adjusted net income $
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended March 31, 2023 March 31, 2022 Adjusted free cash flow Net cash from (used in) operating activities $ 28,008 $ (38,629) Additions to property, plant and equipment (81,686) (70,308) Proceeds from sale and disposal of fixed asset
Slide 16: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2023 Projected GAAP net income $364 to $400 Adjustments: Accretion of environmental liabilities 14 to 13 Stock-based compensation 26 to 29 Depreciation and amortization 360 to 350 Loss on early extinguishment of debt 2 t
Slide 17: Questions
m= sf ~— THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY | leanHarbors
Slide 18: (NYSE: CLH)
(NYSE: CLH) 42 Longwater Drive Norwell, MA 02061 Jim Buckley SVP, Investor Relations 781-792-5100 Email: Buckley.James@CleanHarbors.com www.cleanharbors.com 18