Slide 1: Fourth-Quarter and Full-Year 2023 Investor Review
Fourth-Quarter and Full-Year 2023 Investor Review February 21, 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 Q4 and 2023 Results
Summary of Q4 and 2023 Results Q4 ▪ Revenue grew 5% to $1.34B ▪ GAAP EPS of $1.81; Adjusted EPS* of $1.82 ▪ Adjusted EBITDA* up 14% to $254.9M; Adjusted EBITDA margin was 19.0%, up from 17.5% Full-Year 2023 ▪ Revenue grew 5% to $5.41B ▪ GAAP EPS of $6.95; Adjusted EPS* of $6.99 ▪ Adjusted EBITDA* wa
Slide 4: Environmental Services
Environmental Services Q4 Performance $1,047.0 $1,122.3 ▪ Revenue increase driven by continued growth in services, greater disposal volumes, higher pricing and the addition of Thompson Revenue Industrial + 7% (in millions) ▪ Adjusted EBITDA grew due to higher revenue and improved margins; Margins be
Slide 5: Acquisition Overview
Acquisition Overview ▪ $400 million all-cash transaction ▪ ~$270 million of annual revenue with $36 million of adjusted EBITDA ▪ Expect to achieve ~$20M+ of synergies after first full year of operation ▪ Post synergy acquisition multiple of 7.1X ▪ Gain network, resource and market density in Field S
Slide 6: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $231.0 Q4 Performance $215.8 ▪ Revenue declined due to YoY base oil pricing, partly offset by Revenue increased volumes sold; Market demand and pricing softened - 7% (in millions) more than expected in late 2023 ▪ Adjusted EBITDA and margin decreases are a direc
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: Q4 and Full-Year 2023 Income Statement
Q4 and Full-Year 2023 Income Statement (in millions, except per share data) Q4 2023 Q4 2022 2023 2022 Revenues $1,338.2 $1,278.1 $5,409.2 $5,166.6 Cost of revenues $923.1 $891.4 $3,746.1 $3,543.9 Gross profit $415.0 $386.7 $1,663.0 $1,622.7 Gross margin % 31.0% 30.3% 30.7% 31.4% Selling, general and
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 12/31/23 9/30/23 12/31/22 Cash and short-term marketable securities $550.8 $420.0 $554.6 Billed and unbilled receivables $1,091.0 $1,141.2 $1,071.6 Accounts payable $451.8 $415.0 $446.6 Current and long-term debt $2,301.7 $2,303.0 $2,424.8 Environmental liabili
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q4 2023 Q4 2022 2023 2022 (in millions) Cash from operations $278.9 $268.7 $734.6 $626.2 Capital expenditures, net of disposals ($105.9) ($96.8) ($412.7) ($336.3) Adjusted free cash flow* $173.0 $171.8 $321.9 $289.9 Share repurchases $33.2 $6.0 $51.2 $50.2 * Please refer to the
Slide 12: Guidance (as of February 21, 2024)
Guidance (as of February 21, 2024) Full-Year 2024 (in millions) Range Net Income $365 to $415 Adjusted EBITDA* $1,050 to $1,110 Net Cash from Operating Activities $730 to $820 Adjusted Free Cash Flow* $340 to $400 * Please refer to the appendix in this presentation for a reconciliation of Adjusted E
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) For the Three Months Ended For the Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income $ 98,349 $ 82,474 $ 377,856 $ 411,744 Accretion of environmental liabilities 3,386 3,344 13,667
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, 2023 2022 2023 2022 Adjusted net income Net income $ 98,349 $ 82,474 $ 377,856 $ 411,744 Loss on early extinguishment of
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, 2023 2022 2023 2022 Adjusted free cash flow Net cash from operating activities $ 278,860 $ 268,672 $ 734,552 $ 626,214 Additions to property, plan
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2024 Projected GAAP net income $365 to $415 Adjustments: Accretion of environmental liabilities 15 to 14 Stock-based compensation 27 to 30 Depreciation and amortization 390 to 380 Interest expense, net 120 to 115 Provisi
Slide 18: Questions
PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT
Slide 19: (NYSE: CLH)
(NYSE: CLH) 42 Longwater Drive Norwell, MA 02061 Jim Buckley SVP, Investor Relations 781-792-5100 Email: Buckley.James@CleanHarbors.com www.cleanharbors.com 19