Slide 1: Third-Quarter 2023 Investor Review
Third-Quarter 2023 Investor Review November 1, 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 Q3 Results
Summary of Q3 Results ▪ Revenue of $1.37B reflecting continued growth in Environmental Services (ES) ▪ GAAP EPS of $1.68 ▪ Adjusted EBITDA* was $255.0M; Adjusted EBITDA margin of 18.7% ▪ Adjusted free cash flow* was $114.7 million based on strong cash from operations ▪ ES segment delivered profitabl
Slide 4: Environmental Services
Environmental Services Q3 Performance $1,146.4 $1,086.5 ▪ Revenue increased due to growth in service and disposal businesses, pricing and addition of Thompson Industrial Revenue (in millions) + 6% ▪ Adjusted EBITDA grew due to higher revenue and margin improvement. Margins benefited from pricing, co
Slide 5: Kimball Incinerator Update
Kimball Incinerator Update ▪ Construction slightly ahead of schedule ▪ Now targeting commercial opening toward year-end 2024 vs. early 2025 ▪ Remains on track and on budget for ~$180M of total spend ▪ Strong customer interest and market demand for additional capacity 5
Slide 6: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $276.3 Q3 Performance $219.2 ▪ Revenue declined due to YoY base oil pricing. Sold less volumes Revenue of base oil than expected due to production issues - 21% (in millions) ▪ Adjusted EBITDA and margin decrease reflects lower YoY prices, fewer gallons sold and
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: Q3 Income Statement
Q3 Income Statement (in millions, except per share data) Q3 2023 Q3 2022 Revenues $1,365.7 $1,363.1 Cost of revenues $944.0 $910.6 Gross profit $421.7 $452.4 Gross margin % 30.9% 33.2% Selling, general and administrative expenses $171.0 $151.7 SG&A % 12.5% 11.1% Depreciation and amortization $93.0 $
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 9/30/23 6/30/23 12/31/22 Cash and short-term marketable securities $420.0 $326.1 $554.6 Billed and unbilled receivables $1,141.2 $1,103.9 $1,071.6 Accounts payable $415.0 $374.4 $446.6 Current and long-term debt $2,303.0 $2,304.3 $2,424.8 Environmental liabilit
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q3 2023 Q3 2022 (in millions) Cash from operations $220.1 $225.6 Capital expenditures, net of disposals ($105.4) ($94.4) Adjusted free cash flow* $114.7 $131.2 Share repurchases $10.0 $10.5 * Please refer to the appendix in this presentation for a reconciliation to the nearest G
Slide 12: Guidance (as of November 1, 2023)
Guidance (as of November 1, 2023) Full-Year 2023 (in millions) Range Net Income $364 to $384 Adjusted EBITDA* $1,005 to $1,025 Net Cash from Operating Activities $700 to $750 Adjusted Free Cash Flow* $300 to $330 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EB
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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net income $ 91,340 $ 135,799 $ 279,507 $ 329,270 Accretion of environmental liabilities 3,388 3,246 10,
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Adjusted net income Net income $ 91,340 $ 135,799 $ 279,507 $ 329,270 Loss on early extinguishment
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Adjusted free cash flow Net cash from operating activities $ 220,119 $ 225,572 $ 455,692 $ 357,542 Additions to property, pl
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2023 Projected GAAP net income $364 to $384 Adjustments: Accretion of environmental liabilities 14 to 13 Stock-based compensation 19 to 22 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: Clean Harbors investor relations contact
(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