Slide 1: Second-Quarter 2023 Investor Review
Second-Quarter 2023 Investor Review August 2, 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 Q2 Results
Summary of Q2 Results ▪ Revenue of $1.4B, up 3% YoY reflecting continued growth in Environmental Services (ES) ▪ GAAP and Adjusted EPS* of $2.13 ▪ Adjusted EBITDA* was $287.5M; Adjusted EBITDA margin of 20.6% ▪ Adjusted free cash flow* was $86.0 million based on strong cash from operations ▪ ES segm
Slide 4: Environmental Services
Environmental Services $1,172.0 Q2 Performance $1,090.7 ▪ Revenue increased due to pricing, growth in service businesses, and strong demand for disposal and recycling Revenue (in millions) + 7% ▪ Adjusted EBITDA grew due to higher revenue and margin improvement. Margins benefited from pricing, cost
Slide 5: PFAS Update: DoD Authorizes Commercial Incineration
PFAS Update: DoD Authorizes Commercial Incineration ▪ Department of Defense (DoD) issued new guidelines relating to PFAS – “forever chemicals” ▪ DoD authorized commercial incineration as a viable option for PFAS remediation ▪ CLH’s third-party incineration study proved that we can achieve 99.9999% d
Slide 6: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $265.5 $225.7 Q2 Performance ▪ Revenue declined YoY due to the pricing environment for base oil Revenue and blended products brought on by global market conditions that - 15% (in millions) reflect an oversupply this year versus scarcity of supply a year ago ▪ Ad
Slide 7: 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 8: Financial Overview
PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT 8
Slide 9: Q2 Income Statement
Q2 Income Statement (in millions, except per share data) Q2 2023 Q2 2022 Revenues $1,397.9 $1,356.3 Cost of revenues $947.5 $898.5 Gross profit $450.4 $457.8 Gross margin % 32.2% 33.8% Selling, general and administrative expenses $167.4 $155.6 SG&A % 12.0% 11.5% Depreciation and amortization $89.7 $
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 6/30/23 12/31/22 6/30/22 Cash and short-term marketable securities $326.1 $554.6 $415.4 Billed and unbilled receivables $1,103.9 $1,071.6 $1,139.7 Accounts payable $374.4 $446.6 $409.2 Current and long-term debt $2,304.3 $2,424.8 $2,528.5 Environmental liabilit
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q2 2023 Q2 2022 (in millions) Cash from (used in) operations $207.6 $170.6 Capital expenditures, net of disposals ($121.5) ($76.0) Adjusted free cash flow* $86.0 $94.6 Share repurchases $5.0 $30.0 * Please refer to the appendix in this presentation for a reconciliation to the ne
Slide 12: Guidance (as of August 2, 2023)
Guidance (as of August 2, 2023) Full-Year 2023 (in millions) Range Net Income $372 to $408 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 EBIT
Slide 13: Appendix
APPENDIX PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT 13
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except percentages) For the Three Months Ended For the Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net income $ 115,766 $ 148,157 $ 188,167 $ 193,471 Accretion of environmental liabilities 3,486 3,197 6,893 6,353 Stock-based
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended For the Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Adjusted net income Net income $ 115,766 $ 148,157 $ 188,167 $ 193,471 Loss on early extinguishment of debt — — 2,362 —
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended For the Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Adjusted free cash flow Net cash from operating activities $ 207,565 $ 170,599 $ 235,573 $ 131,970 Additions to property, plant and equipment (12
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2023 Projected GAAP net income $372 to $408 Adjustments: Accretion of environmental liabilities 14 to 13 Stock-based compensation 20 to 23 Depreciation and amortization 360 to 350 Loss on early extinguishment of debt 2 t
Slide 18: Questions
PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT
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