Slide 1: First-Quarter 2024 Investor Review
First-Quarter 2024 Investor Review May 1, 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 Q1 Results
Summary of Q1 Results ▪ Revenue of $1.38B, up 5% YoY reflecting strong organic growth in ES segment ▪ Net income of $69.8 million or EPS of $1.29 ▪ Adjusted EBITDA* increased 7% to $230.1M; Adjusted EBITDA* margin of 16.7% ▪ Adjusted free cash flow* was ($118.4) million; in line with our expectation
Slide 4: Environmental Services
Environmental Services $1,172.5 Q1 Performance $1,070.7 ▪ Revenue increase driven by steady demand, growth in service businesses and pricing initiatives, as well as the additions of Revenue Thompson Industrial and HEPACO +10% (in millions) ▪ Adjusted EBITDA rose due to revenue growth and improved ma
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $236.5 Q1 Performance $204.1 ▪ Revenue declined due to YoY base oil and lubricant pricing; Revenue Market demand was weak to start the year before picking up - 14% (in millions) toward quarter end ▪ Adjusted EBITDA and margin decreases are a direct result of low
Slide 6: 'Castrol MoreCircular' Program Set to Launch
‘Castrol MoreCircular’ Program Set to Launch ▪ Safety-Kleen partnering with Castrol under multi-year collaboration agreement ▪ Offering will have SK collecting used oil from Castrol customers in program ▪ SK will sell re-refined base oil (RRBO) to Castrol as part of the agreement ▪ RRBO will account
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: Q1 Income Statement
Q1 Income Statement (in millions, except per share data) Q1 2024 Q1 2023 Revenues $1,376.7 $1,307.4 Cost of revenues $971.1 $931.5 Gross profit $405.6 $375.9 Gross margin % 29.5% 28.7% Selling, general and administrative expenses $181.9 $166.8 SG&A % 13.2% 12.8% Depreciation and amortization $95.1 $
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 3/31/24 12/31/23 3/31/23 Cash and short-term marketable securities $442.6 $550.8 $376.1 Billed and unbilled receivables $1,205.4 $1,091.0 $1,101.2 Accounts payable $452.8 $451.8 $427.5 Current and long-term debt $2,793.7 $2,301.7 $2,419.7 Environmental liabilit
Slide 11: Cash Flow Highlights
Cash Flow Highlights Q1 2024 Q1 2023 (in millions) Cash from operations $18.5 $28.0 Capital expenditures, net of disposals ($136.9) ($79.8) Adjusted free cash flow* ($118.4) ($51.8) Share repurchases $5.0 $3.0 * Please refer to the appendix in this presentation for a reconciliation to the nearest GA
Slide 12: Guidance (as of May 1, 2024)
Guidance (as of May 1, 2024) Full-Year 2024 (in millions) Range Net Income $376 to $419 Adjusted EBITDA* $1,100 to $1,150 Net Cash from Operating Activities $740 to $830 Adjusted Free Cash Flow* $340 to $400 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITDA
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) Three Months Ended March 31, 2024 March 31, 2023 Net income $ 69,832 $ 72,401 Accretion of environmental liabilities 3,217 3,407 Stock-based compensation 6,338 6,018 Depreciation and amortization 95,065 84,758 Other expense (income),
Slide 15: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except per share amounts) Three Months Ended March 31, 2024 March 31, 2023 Adjusted net income Net income $ 69,832 $ 72,401 Loss on early extinguishment of debt — 2,362 Tax-related valuation allowances and other* — (653) Adjusted net income $ 69,832 $ 7
Slide 16: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) Three Months Ended March 31, 2024 March 31, 2023 Adjusted free cash flow Net cash from operating activities $ 18,549 $ 28,008 Additions to property, plant and equipment (137,913) (81,686) Proceeds from sale and disposal of fixed assets 1,008 1,855 Adjus
Slide 17: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2024 Projected GAAP net income $376 to $419 Adjustments: Accretion of environmental liabilities 15 to 14 Stock-based compensation 27 to 30 Depreciation and amortization 400 to 390 Interest expense, net 145 to 140 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