Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q3 2024 Earnings Presentation
18 slides from Clean Harbors's earnings presentation, Oct 30, 2024
Slide 1: Third-Quarter 2024 Investor Review
Third-Quarter 2024 Investor Review October 30, 2024 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 $1.53B, up 12% YoY reflecting growth in both segments and acquisitions ▪ Net income increased 26% to $115.2 million or EPS of $2.12 ▪ Adjusted EBITDA* increased 18% to $301.8M; Adjusted EBITDA* margin of 19.7% ▪ Adjusted free cash flow* was $144.5 million ▪ Environ
Slide 4: Environmental Services
Environmental Services Q3 Performance $1,297.2 $1,146.4 ▪ Revenue increased due to HEPACO acquisition combined with steady organic growth driven by higher pricing and incineration Revenue volumes +13% (in millions) ▪ Adjusted EBITDA increased due to revenue growth and higher margin; Margin up YoY as
Slide 5: Kimball Incinerator – Commercial Launch in November
Kimball Incinerator – Commercial Launch in November ▪ 70,000-ton facility expected to begin accepting hazardous waste shortly ▪ Project completed on time, including feature enhancements ▪ Will help address logjam in the network as it ramps up over next 12-18 months ▪ Market dynamics support new capa
Slide 6: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $232.1 Q3 Performance $219.2 ▪ Revenue up YoY, entirely due to addition of Noble Oil. Pricing for Revenue base oil slightly higher than prior year but below expectations and +6% (in millions) YoY volumes were slightly lower ▪ Adjusted EBITDA reflects increased r
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 2024 Q3 2023 Revenues $1,529.4 $1,365.7 Cost of revenues $1,055.6 $944.0 Gross profit $473.8 $421.7 Gross margin % 31.0% 30.9% Selling, general and administrative expenses $177.8 $171.0 SG&A % 11.6% 12.5% Depreciation and amortization $100.
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 9/30/24 6/30/24 12/31/23 Cash and short-term marketable securities $594.7 $493.3 $550.8 Billed and unbilled receivables $1,305.0 $1,277.0 $1,091.0 Accounts payable $504.2 $447.9 $451.8 Current and long-term debt $2,788.8 $2,790.9 $2,301.7 Environmental liabilit
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q3 2024 Q3 2023 (in millions) Cash from operations $239.2 $220.1 Capital expenditures, net of disposals ($94.7) ($105.4) Adjusted free cash flow* $144.5 $114.7 Share repurchases $20.0 $10.0 * Please refer to the appendix in this presentation for a reconciliation to the nearest G
Slide 12: Guidance (as of October 30, 2024)
Guidance (as of October 30, 2024) Full-Year 2024 (in millions) Range Net Income $375 to $395 Adjusted EBITDA* $1,100 to $1,120 Net Cash from Operating Activities $680 to $750 Adjusted Free Cash Flow* $280 to $320 * 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) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Net income $ 115,213 $ 91,340 $ 318,325 $ 279,507 Accretion of environmental liabilities 3,618 3,388 10,139 10,281 Stock
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Adjusted free cash flow Net cash from operating activities $ 239,239 $ 220,119 $ 473,833 $ 455,692 Additions to property, plant and equipmen
Slide 16: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2024 Projected net income $375 to $395 Adjustments: Accretion of environmental liabilities 15 to 14 Stock-based compensation 27 to 30 Depreciation and amortization 405 to 395 Interest expense, net 145 to 140 Provision fo
Slide 17: Questions
PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT
Slide 18: 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 18