Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q1 2022 Earnings Presentation
19 slides from Clean Harbors's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Investor Review
First Quarter 2022 Investor Review May 4, 2022 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 $1.17B – ahead of expectations; Up 45% YoY reflecting the addition of HPC and strong organic growth ▪ GAAP and Adjusted EPS* of $0.83 ▪ Adjusted EBITDA* increased 39% to $180.3M; Adjusted EBITDA margin of 15.4% ▪ Adjusted free cash flow* was ($107.6) million compar
Slide 4: Environmental Services
Environmental Services $947.4 Q1 Performance ▪ Revenue up sharply YoY due to HPC acquisition, demand for $654.6 services and higher pricing Revenue (in millions) + 45% ▪ Adjusted EBITDA increased primarily due to higher revenue. Margins down YoY due to higher levels of government assistance and ER w
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $221.6 Q1 Performance $153.5 ▪ Revenue up significantly due to higher base oil and blended Revenue products pricing vs a year ago, along with steady production + 44% (in millions) across our network of re-refineries ▪ Adjusted EBITDA and margin improvement refle
Slide 6: Multiple Companywide Organic Growth Initiatives
Multiple Companywide Organic Growth Initiatives ▪ Expanded inside sales team ▪ Launched key-account initiative to foster greater cross selling, including HPC ▪ Invested in marketing and branding programs ▪ Moving forward with construction of Kimball; additional capacity attractive to owners of capti
Slide 7: Capital Allocation Strategy – Driven by ROIC
Capital Allocation Strategy – Driven by ROIC 1 2 ▪ Invest capex to drive organic growth Organic Growth Acquisitions Investments & Divestitures ▪ Evaluate acquisition and divestiture opportunities ▪ Execute authorized buyback plan 3 4 ▪ Assess current debt structure and Share Debt leverage Repurchase
Slide 8: Financial Overview
THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 8
Slide 9: Q1 Income Statement
Q1 Income Statement (in millions, except per share data) Q1 2022 Q1 2021 Revenues $1,169.1 $808.1 Cost of revenues $843.4 $560.5 Gross profit $325.7 $247.6 Gross margin % 27.9% 30.6% Selling, general and administrative expenses $151.2 $121.6 SG&A % 12.9% 15.1% Depreciation and amortization $84.3 $72
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 3/31/22 12/31/21 3/31/21 Cash and short-term marketable securities $414.9 $534.3 $570.7 Accounts payable $394.2 $359.9 $213.4 Billed and unbilled receivables $1,024.2 $887.7 $675.4 Current and long-term debt $2,531.5 $2,534.6 $1,556.1 Environmental liabilities
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q1 2022 Q1 2021 (in millions) Cash (used in) from operations ($38.6) $103.0 Capital expenditures, net of disposals ($69.0) ($40.7) Adjusted free cash flow* ($107.6) $62.3 Share repurchases $3.7 $26.5 * Please refer to the appendix in this presentation for a reconciliation to the
Slide 12: Guidance (as of May 4, 2022)
Guidance (as of May 4, 2022) Full-Year 2022 (in millions) Range Net Income $225 to $258 Adjusted EBITDA* $800 to $830 Net Cash from Operating Activities $560 to $620 Adjusted Free Cash Flow* $250 to $290 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITDA and
Slide 13: Appendix
APPENDIX THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY 13
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except percentages) For the Three Months Ended March 31, 2022 March 31, 2021 Net income $ 45,314 $ 21,736 Accretion of environmental liabilities 3,156 2,953 Stock-based compensation 5,712 3,480 Depreciation and amortization 84,298 72,163 Other (income)
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended March 31, 2022 March 31, 2021 Adjusted net income Net income $ 45,314 $ 21,736 Tax-related valuation allowances and other 114 1,648 Adjusted net income $ 45,428 $ 23,384 Adjusted earnings per share Ea
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended March 31, 2022 March 31, 2021 Adjusted free cash flow Net cash (used in) from operating activities $ (38,629) $ 103,000 Additions to property, plant and equipment (70,308) (41,913) Proceeds from sale and disposal of fixed asse
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2022 Projected GAAP net income $225 to $258 Adjustments: Accretion of environmental liabilities 13 to 12 Stock-based compensation 26 to 29 Depreciation and amortization 340 to 330 Interest expense, net 110 to 106 Provisi
Slide 18: Questions
m= sf ~— THREE INDUSTRY LEADERS UNITED INTO ONE COMPANY | leanHarbors
Slide 19: Investor Relations Contact (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 19