Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q3 2021 Earnings Presentation
18 slides from Clean Harbors's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Investor Review
Third Quarter 2021 Investor Review November 3, 2021 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 $951.5M, a 22% increase YoY ▪ Net income of $65.4 million or EPS of $1.20 and Adjusted EPS of $1.14 ▪ Adjusted EBITDA* increased 10% to $185.1M; Adjusted EBITDA margin was 19.5% ▪ Adjusted free cash flow was $61.1 million, on track to hit annual target ▪ Environmen
Slide 4: Environmental Services
Environmental Services $745.6 Q3 Performance $650.6 ▪ Revenue up YoY due to growth in higher value waste streams and strong demand for Industrial Services and Field Services Revenue (in millions) + 15% ▪ Adjusted EBITDA declined, as expected, based on much higher levels of government assistance and
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $205.8 Q3 Performance $128.7 ▪ Revenue increased YoY due to higher volumes, price increases Revenue and limited shutdowns vs prior year when the pandemic slowed + 60% (in millions) production. Product demand was robust throughout the quarter due to industry supp
Slide 6: HydroChemPSC Acquisition – Overview
– Overview ▪ $1.25 billion all-cash transaction completed in early October ▪ Raised $1 billion term loan at favorable rate (L + 200) ▪ Expect to achieve $40M+ of synergies after first full year of operation ▪ Confident this transaction will drive considerable shareholder value ▪ Affords us network,
Slide 7: Capital Allocation Strategy – Driven by ROIC
Capital Allocation Strategy – Driven by ROIC 1 2 ▪ Invest capex to drive growth Organic Growth Acquisitions Investments & Divestitures ▪ Evaluate acquisition and divestiture opportunities ▪ Execute authorized buyback plan 3 4 ▪ Assess current debt structure Share Debt Repurchases Repayment 7
Slide 8: Financial Overview
eT” Ee a ab FINANCIAL OVERVIEW 40 YEARS OF SUSTAINABILITY IN ACTION
Slide 9: Q3 Income Statement
Q3 Income Statement (in millions, except percentages and per share data) Q3 2021 Q3 2020 Revenues $951.5 $779.3 Cost of revenues $639.2 $511.6 Gross profit $312.2 $267.7 Gross margin % 32.8% 34.4% Selling, general and administrative expenses $133.2 $106.5 SG&A % 14.0% 13.7% Depreciation and amortiza
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 9/30/21 6/30/21 12/31/20 Cash and short-term marketable securities $711.5 $666.3 $571.0 Accounts payable $286.6 $249.2 $195.9 Billed and unbilled receivables $773.1 $718.8 $667.2 Current and long-term debt $1,554 $1,555 $1,557 Environmental liabilities $203.8 $
Slide 11: Cash Flow Highlights
Cash Flow Highlights (in millions) Q3 2020 Q3 2021 Cash from operations $102.8 $143.9 Capital expenditures, net of disposals ($41.7) ($20.4) Adjusted free cash flow* $61.1 $123.5 Share repurchases $3.0 $22.2 * Please refer to the appendix in this presentation for a reconciliation to the nearest GAAP
Slide 12: Guidance (as of November 3, 2021)
Guidance (as of November 3, 2021) Full-Year 2021 (in millions) Range Net Income $171 to $196 Adjusted EBITDA* $655 to $675 Net Cash from Operating Activities $500 to $540 Adjusted Free Cash Flow* $310 to $330 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITDA
Slide 13: Appendix
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Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended For the Nine Months Ended (in thousands, except percentages) September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Net income $ 65,443 $ 54,910 $ 154,254 $ 95,505 Accretion of environmental liabilities 2,799 2,822 8,625
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, 2021 2020 2021 2020 Adjusted net income Net income $ 65,443 $ 54,910 $ 154,254 $ 95,505 Loss on sale of businesses — 1
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended For the Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Adjusted free cash flow Net cash from operating activities $ 102,794 $ 143,946 $ 368,226 $ 317,432 (54,666) (24,636) (146,65
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2021 Projected GAAP net income $171 to $196 Adjustments: Accretion of environmental liabilities 12 to 11 Stock-based compensation 18 to 19 Depreciation and amortization 305 to 295 Other expense, net 3 to 3 Interest expen
Slide 18: Questions?
QUESTIONS? 40 YEARS OF SUSTAINABILITY IN ACTION