Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q4 2020 Earnings Presentation
18 slides from Clean Harbors's earnings presentation, Feb 24, 2021
Slide 1: Fourth-Quarter and Full-Year 2020 Investor Review
Fourth-Quarter and Full-Year 2020 Investor Review February 24, 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: Summary of Q4 and 2020 Results
Summary of Q4 and 2020 Results Q4 ▪ Revenue was $796.2M – in line with expectations ▪ GAAP EPS of $0.71; Adjusted EPS of $0.63 ▪ Adjusted EBITDA* of $136.1M, including $5.6M from government programs ▪ Adjusted EBITDA margin climbed 190 bps to 17.1% Full-Year 2020 ▪ Revenue was $3,144M – down YoY ref
Slide 4: Environmental Services
Environmental Services $578.1 $546.1 Q4 Performance ▪ Revenue down YoY due to continuing COVID related slowdown in certain lines of business but revenue up sequentially from Q3 Revenue due to strong disposal volumes and some businesses returning (in millions) - 6% to more normalized levels ▪ Adjuste
Slide 5: Safety-Kleen
Safety-Kleen $293.5 Q4 Performance $250.8 ▪ Revenue down YoY resulting from customer activity levels remaining below normalized levels due to the pandemic; Revenue - 15% revenue flat sequentially from Q3 as recovery offset normal (in millions) seasonality ▪ Lower Adjusted EBITDA and margins reflect
Slide 6: 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 6
Slide 7: Financial Overview
TITLE FINANCIAL OVERVIEW July 7, 2020 7
Slide 8: Sustainability – ESG Report
Sustainability – ESG Report 8
Slide 9: Q4 and Full-Year 2020 Income Statement
Q4 and Full-Year 2020 Income Statement (in millions, except per share data) Q4 2020 Q4 2019 2020 2019 Revenues $796.2 $871.0 $3,144.1 $3,412.2 Cost of revenues $548.8 $615.8 $2,137.8 $2,387.8 Gross profit $247.4 $255.2 $1,006.3 $1,024.4 Gross margin % 31.1% 29.3% 32.0% 30.0% Selling, general and adm
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 12/31/20 9/30/20 12/31/19 Cash and short-term marketable securities $571.0 $532.3 $414.4 Accounts payable $195.9 $213.8 $298.4 Billed and unbilled receivables $667.2 $661.5 $701.1 Current and long-term debt $1,557 $1,558 $1,562 Environmental liabilities $202.7
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q4 2020 Q4 2019 2020 2019 (in millions) Cash from operations $113.2 $128.5 $430.6 $413.2 Capital expenditures, net of disposals ($43.6) ($39.1) ($186.6) ($204.7) Purchase and capital improvements of corporate HQ — — $21.1 — Adjusted free cash flow* $69.6 $89.4 $265.0 $208.5 Shar
Slide 12: Guidance (as of February 24, 2021)
Guidance (as of February 24, 2021) Full-Year 2021 (in millions) Range Net Income $105 to $146 Adjusted EBITDA* $545 to $585 Net Cash from Operating Activities $400 to $460 Adjusted Free Cash Flow* $215 to $255 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITD
Slide 13: Appendix
=| 40 YEARS OF SUSTAINABILITY IN ACTION 13 (leanHarbors | 4O0res
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended: For the Twelve Months Ended: (in thousands) December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Net income $39,332 $24,151 $134,837 $97,740 Accretion of environmental liabilities 2,902 2,512 11,051 10,136 Depreciation an
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended: For the Twelve Months Ended: (in thousands, except per share amounts) December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Adjusted net income Net income $39,332 $24,151 $134,837 $97,740 Loss on early extinguishment of de
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation For the Three Months Ended: For the Twelve Months Ended: (in thousands) December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Adjusted free cash flow Net cash from operating activities $113,165 $128,517 $430,597 $413,192 Additions to property, plant
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation (in millions) For the Year Ending December 31, 2021 Projected GAAP net income $105 to $146 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 18: Questions?
QUESTIONS? 18