Slide 1: Fourth Quarter and Full-Year 2021 Investor Review
Fourth Quarter and Full-Year 2021 Investor Review February 23, 2022 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 Q4 and 2021 Results
Summary of Q4 and 2021 Results Q4 ▪ Revenue grew 41% to $1.12B, including $166 million from HPC ▪ GAAP EPS of $0.90; Adjusted EPS* of $0.89 ▪ Adjusted EBITDA* up 23% to $174.3M ▪ Adjusted EBITDA margin was 15.6% – in line with our expectations Full-Year 2021 ▪ Revenue grew 21% to $3.81B ▪ GAAP EPS o
Slide 4: Environmental Services
Environmental Services $908.1 Q4 Performance $667.6 ▪ Revenue up sharply YoY due to the addition of HPC in early October, strong demand for our services and pricing Revenue (in millions) + 36% ▪ Adjusted EBITDA increased due to revenue that helped more than offset the higher levels of government ass
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $211.3 Q4 Performance ▪ Revenue increased primarily due to significantly higher base oil $128.6 Revenue and blended products pricing vs a year ago, supported by steady + 64% (in millions) production across our re-refinery network ▪ Adjusted EBITDA and margin imp
Slide 6: 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 6
Slide 7: Five-Year Adjusted EBITDA and Free Cash Flow Performance
Five-Year Adjusted EBITDA and Free Cash Flow Performance Adjusted CAGR $676.6 EBITDA $558.1 $573.8 11% $507.8 $438.8 2017 2018 2019 2020 2021 Adjusted CAGR Free Cash $326.3 24% $265.0 Flow $195.3 $208.5 $140.2 2017 2018 2019 2020 2021 7
Slide 8: Financial Overview
eT” Ee a ab FINANCIAL OVERVIEW 40 YEARS OF SUSTAINABILITY IN ACTION
Slide 9: Q4 and Full-Year 2021 Income Statement
Q4 and Full-Year 2021 Income Statement (in millions, except per share data) Q4 2021 Q4 2020 2021 2020 Revenues $1,119.5 $796.2 $3,805.6 $3,144.1 Cost of revenues $792.2 $548.8 $2,609.8 $2,137.8 Gross profit $327.3 $247.4 $1,195.7 $1,006.3 Gross margin % 29.2% 31.1% 31.4% 32.0% Selling, general and a
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 12/31/21 9/30/21 12/31/20 Cash and short-term marketable securities $534.3 $711.5 $571.0 Accounts payable $359.9 $286.6 $195.9 Billed and unbilled receivables $887.7 $773.1 $667.2 Current and long-term debt $2,535 $1,554 $1,557 Environmental liabilities $211.0
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q4 2021 Q4 2020 2021 2020 (in millions) Cash from operations $177.8 $113.2 $546.0 $430.6 Capital expenditures, net of disposals ($89.5) ($43.6) ($219.7) ($186.6) Purchase and capital improvements of corporate HQ — — — $21.1 Adjusted free cash flow* $88.3 $69.6 $326.3 $265.0 Shar
Slide 12: Guidance (as of February 23, 2022)
Guidance (as of February 23, 2022) Full-Year 2022 (in millions) Range Net Income $204 to $237 Adjusted EBITDA* $765 to $795 Net Cash from Operating Activities $560 to $620 Adjusted Free Cash Flow* $250 to $290 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITD
Slide 13: Appendix
APPENDIX >. 40 YEARS OF SUSTAINABILITY IN ACTION 13 (leanHarbors | 4Ovears
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended For the Twelve Months Ended (in thousands, except percentages) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net income $ 48,993 $ 39,332 $ 203,247 $ 134,837 Accretion of environmental liabilities 3,120 2,902 11,745
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Adjusted net income Net income $ 48,993 $ 39,332 $ 203,247 $ 134,837 Loss on sale of businesses — —
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) For the Three Months Ended For the Twelve Months Ended December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Adjusted free cash flow Net cash from operating activities $ 177,771 $ 113,165 $ 545,997 $ 430,597 Additions to property, plan
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2022 Projected GAAP net income $204 to $237 Adjustments: Accretion of environmental liabilities 13 to 12 Stock-based compensation 26 to 29 Depreciation and amortization 340 to 330 Interest expense, net 104 to 100 Provisi
Slide 18: Questions?
QUESTIONS? 40 YEARS OF SUSTAINABILITY IN ACTION