Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q1 2021 Earnings Presentation
19 slides from Clean Harbors's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Investor Review
First Quarter 2021 Investor Review May 5, 2021
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: ESG Spotlight: Safety - Two Decades of Improvement in TRIR
ESG Spotlight: Safety Two Decades of Improvement in TRIR 4.50 Total Recordable Incident Rate (TRIR) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3
Slide 4: Summary of Q1 Results
Summary of Q1 Results ▪ Revenue of $808.1M – ahead of expectations; Down 6% YoY reflecting pandemic-related impact; up sequentially from Q4 ▪ GAAP EPS of $0.39 and Adjusted EPS of $0.42 ▪ Adjusted EBITDA* increased to $129.5M, including $5.4M from government pandemic relief programs; Adjusted EBITDA
Slide 5: Environmental Services
Environmental Services $705.2 Q1 Performance $654.6 ▪ Revenue down YoY due to lingering COVID-related impacts on some businesses and project work. February deep freeze in Gulf Revenue - 7% disrupted incinerators and delayed some branch work (in millions) ▪ Adjusted EBITDA down slightly based on lowe
Slide 6: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $153.3 $153.5 Q1 Performance ▪ Revenue flat YoY as lower collection volumes offset by higher Revenue pricing and a return to normal demand for base and blended + 0% (in millions) products; revenue up 19% from Q4 as recovery in demand and higher pricing more than
Slide 7: Capital Allocation Strategy
Capital Allocation Strategy Four key elements: Organic Acquisitions Share Debt Growth & Repurchases Repayment Investments Divestitures ▪ Invest capex to drive growth ▪ Evaluate acquisition and divestiture opportunities ▪ Execute buyback plan ▪ Assess current debt structure 7
Slide 8: Financial Overview
TITLE FINANCIAL OVERVIEW July 7, 2020 8
Slide 9: Q1 Income Statement
Q1 Income Statement (in millions, except per share data) Q1 2021 Q1 2020 Revenues $808.1 $858.6 Cost of revenues $560.5 $606.7 Gross profit $247.6 $251.9 Gross margin % 30.6% 29.3% Selling, general and administrative expenses $121.6 $129.3 SG&A % 15.1% 15.1% Depreciation and amortization $72.2 $74.5
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 3/31/21 12/31/20 3/31/20 Cash and short-term marketable securities $570.7 $571.0 $494.3 Accounts payable $213.4 $195.9 $267.9 Billed and unbilled receivables $675.4 $667.2 $709.7 Current and long-term debt $1,556 $1,557 $1,711 Environmental liabilities $205.4 $
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q1 2021 Q1 2020 (in millions) Cash from operations $103.0 $33.7 Capital expenditures, net of disposals ($40.7) ($80.6) Purchase and capital improvements of corporate HQ — $20.7 Adjusted free cash flow* $62.3 ($26.2) Share repurchases $26.5 $17.3 * Please refer to the appendix in
Slide 12: Guidance (as of May 5, 2021)
Guidance (as of May 5, 2021) Full-Year 2021 (in millions) Range Net Income $116 to $157 Adjusted EBITDA* $560 to $600 Net Cash from Operating Activities $415 to $475 Adjusted Free Cash Flow* $230 to $270 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITDA and
Slide 13: Five-Year Financial Targets
Five-Year Financial Targets 1. Organic Growth ▪ 1-2 percentage points greater than US GDP 2. Adjusted EBITDA Margin ▪ 30 to 50 basis point improvement annually 3. Adjusted Free Cash Flow ▪ Exceed $300 million in 2025 13
Slide 14: Appendix
=| 40 YEARS OF SUSTAINABILITY IN ACTION 14 (leanHarbors | 4O0res
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended: (in thousands) March 31, 2021 March 31, 2020 Net income $21,736 $11,572 Accretion of environmental liabilities 2,953 2,561 Stock-based compensation 3,480 3,291 Depreciation and amortization 72,163 74,533 Other expense, net 1,228 2,365 Loss
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended: (in thousands, except per share amounts) March 31, 2021 March 31, 2020 Adjusted net income Net income $21,736 $11,572 Loss on sale of businesses — 3,074 Tax-related valuation allowances 1,648 931 Adjusted net income $23,384 $15,577 Adjusted
Slide 17: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended: (in thousands) March 31, 2021 March 31, 2020 Adjusted free cash flow Net cash from operating activities $103,000 $33,681 Additions to property, plant and equipment (41,913) (82,767) Purchase and capital improvements of corporate HQ — 20,735
Slide 18: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation (in millions) For the Year Ending December 31, 2021 Projected GAAP net income $116 to $157 Adjustments: Accretion of environmental liabilities 12 to 11 Stock-based compensation 16 to 18 Depreciation and amortization 290 to 280 Interest expense, net 73 to 72 Provision
Slide 19: Questions?
QUESTIONS? 19