Clean Harbors, Inc. · NYSE:CLH
Clean Harbors — Q2 2024 Earnings Presentation
17 slides from Clean Harbors's earnings presentation, Jul 31, 2024
Slide 1: Second-Quarter 2024 Investor Review
Second-Quarter 2024 Investor Review July 31, 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 Q2 Results
Summary of Q2 Results ▪ Revenue of $1.55B, up 11% YoY reflecting both organic growth and acquisitions ▪ Net income increased 15% to $133.3 million or EPS of $2.46 ▪ Adjusted EBITDA* increased 14% to $327.8M; Adjusted EBITDA* margin of 21.1% ▪ Adjusted free cash flow* was $84.2 million ▪ Environmenta
Slide 4: Environmental Services
Environmental Services $1,309.4 Q2 Performance $1,172.0 ▪ Revenue increased sharply due to HEPACO acquisition combined with strong organic growth driven by both volumes and pricing Revenue (in millions) +12% ▪ Adjusted EBITDA increased primarily due to revenue growth and higher margin; Margin up YoY
Slide 5: Safety-Kleen Sustainability Solutions
Safety-Kleen Sustainability Solutions $243.2 $225.7 Q2 Performance ▪ Revenue up YoY due to addition of Noble Oil and higher volumes Revenue processed in the network. Pricing similar to prior year but up +8% (in millions) significantly from Q1 levels ▪ Adjusted EBITDA and margin reflect lower profita
Slide 6: 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 7: Financial Overview
PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT 7
Slide 8: Q2 Income Statement
Q2 Income Statement (in millions, except per share data) Q2 2024 Q2 2023 Revenues $1,552.7 $1,397.9 Cost of revenues $1,035.5 $947.5 Gross profit $517.2 $450.4 Gross margin % 33.3% 32.2% Selling, general and administrative expenses $197.9 $167.4 SG&A % 12.7% 12.0% Depreciation and amortization $100.
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (in millions) 6/30/24 12/31/23 6/30/23 Cash and short-term marketable securities $493.3 $550.8 $326.1 Billed and unbilled receivables $1,277.0 $1,091.0 $1,103.9 Accounts payable $447.9 $451.8 $374.4 Current and long-term debt $2,790.9 $2,301.7 $2,304.3 Environmental liabilit
Slide 10: Cash Flow Highlights
Cash Flow Highlights Q2 2024 Q2 2023 (in millions) Cash from operations $216.0 $207.6 Capital expenditures, net of disposals ($131.8) ($121.5) Adjusted free cash flow* $84.2 $86.0 Share repurchases $5.2 $5.0 * Please refer to the appendix in this presentation for a reconciliation to the nearest GAAP
Slide 11: Guidance (as of July 31, 2024)
Guidance (as of July 31, 2024) Full-Year 2024 (in millions) Range Net Income $391 to $426 Adjusted EBITDA* $1,125 to $1,165 Net Cash from Operating Activities $750 to $820 Adjusted Free Cash Flow* $350 to $390 * Please refer to the appendix in this presentation for a reconciliation of Adjusted EBITD
Slide 12: Appendix
APPENDIX PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT 12
Slide 13: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands, except percentages) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income $ 133,280 $ 115,766 $ 203,112 $ 188,167 Accretion of environmental liabilities 3,304 3,486 6,521 6,893 Stock-based compensation 8,
Slide 14: Non-GAAP Results Reconciliation
Non-GAAP Results Reconciliation (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Adjusted free cash flow Net cash from operating activities $ 216,045 $ 207,565 $ 234,594 $ 235,573 Additions to property, plant and equipment (131,110) (122,612)
Slide 15: Non-GAAP Guidance Reconciliation
Non-GAAP Guidance Reconciliation For the Year Ending (in millions) December 31, 2024 Projected net income $391 to $426 Adjustments: Accretion of environmental liabilities 15 to 14 Stock-based compensation 27 to 30 Depreciation and amortization 405 to 395 Interest expense, net 145 to 140 Provision fo
Slide 16: Questions
PEOPLE AND TECHNOLOGY CREATING A SAFER, CLEANER ENVIRONMENT
Slide 17: (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 17