The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

Clean Harbors Upwardly Revises its 2010 Guidance in Conjunction with its Investor Day

Thursday, September 16, 2010

Clean Harbors Upwardly Revises its 2010 Guidance in Conjunction with its Investor Day07:30 EDT Thursday, September 16, 2010 NORWELL, Mass. (Business Wire) -- Clean Harbors, Inc. (NYSE: CLH), the leading provider of environmental, energy and industrial services and hazardous waste management services throughout North America, today updated its 2010 revenue and EBITDA guidance in conjunction with its 2010 Investor Day being hosted in New York City. The Company also announced that it will reduce its debt balance by $30 million on September 28, 2010 through a partial redemption of outstanding senior secured notes. The Company is upwardly revising its 2010 revenue and EBITDA guidance to reflect the effect of additional emergency response activities in the third quarter. For 2010, Clean Harbors now expects full-year revenue in the range of $1.63 billion to $1.68 billion, compared with prior revenue guidance of $1.60 billion to $1.65 billion. The Company also is now forecasting 2010 EBITDA in the range of $278 million to $288 million for the full year, compared with prior EBITDA guidance of $270 million to $280 million. The Company reports and projects EBITDA, which is a non-GAAP financial measure calculated in accordance with the Company's existing credit agreement, as a complement to the Company's GAAP financial results because the Company believes EBITDA provides useful additional information to investors. The Company's August 4, 2010 press release, which is available on its website at www.cleanharbors.com, provides a description of the calculation of EBITDA and a reconciliation to the Company's reported net income for the first six months of 2010. The Company's revised guidance for 2010 is exclusive of the impact of any emergency response related work beyond the third quarter. “Our overall business continues to perform well and we are on track to meet our expectations for 2010,” said Alan S. McKim, Chairman and Chief Executive Officer. “In addition to the Gulf region clean-up, this quarter we participated in other emergency response related events including the oil spill in the Kalamazoo River area of Michigan. At the peak level this quarter, we had approximately 500 response-related personnel in Michigan along with a broad array of specialized equipment.” Debt Reduction and Capital Spending Clean Harbors announced today that it has called for redemption $30 million of its $300 million of outstanding senior secured notes on September 28, 2010 at a price of 103% of the principal amount, plus accrued interest. These notes, which were issued in mid-2009, carry an interest rate of 7.625% and fully mature in 2016. As a result of the redemption, the Company expects to reduce its long-term debt balance to approximately $270 million. The Company also anticipates that it will incur a pre-tax charge of $2.4 million for the early extinguishment of debt, which will be reflected in net income for the third quarter of 2010. Approximately $1.4 million of the charge will be non-cash. The redemption will lower the Company's interest expense by approximately $2.3 million on an annualized basis. The Company also announced that it is increasing its capital spending expectations for 2010 from the mid-$80 million range to $100 million. “We are capitalizing on the strength of our balance sheet to reduce our long-term debt and lower our interest expense, while increasing our capital spending to accelerate the organic growth of our business,” said James M. Rutledge, EVP and Chief Financial Officer. “Even with the $30 million debt reduction, we currently anticipate that we will conclude the third quarter with approximately $300 million in cash and equivalents. This strong cash position will enable us to pursue our growth strategy, including select acquisitions, business line expansions and facility investments.” Investor Day Webcast As previously announced, those who wish to listen to a live webcast of the Investor Day today from approximately 8:30 a.m. to 12:30 p.m. (ET) should visit the Investor Relations section of the Company's website at www.cleanharbors.com. For those unable to listen to the live presentations, the event will be archived and available on the Company's website. About Clean Harbors Clean Harbors is the leading provider of environmental, energy and industrial services and hazardous waste management services throughout North America. The Company serves more than 50,000 customers, including a majority of the Fortune 500 companies, thousands of smaller private entities and numerous federal, state, provincial and local governmental agencies. Headquartered in Norwell, Massachusetts, Clean Harbors has more than 175 locations, including over 50 waste management facilities, throughout North America in 36 U.S. states, seven Canadian provinces, Mexico and Puerto Rico. The Company also operates international locations in Bulgaria, China, Sweden, Singapore, Thailand and the United Kingdom. For more information, visit www.cleanharbors.com. Safe Harbor Statement Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements may include, but are not limited to, statements about the benefits of the acquisition of Eveready, including future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Clean Harbors' management and are subject to significant risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its various filings with the Securities and Exchange Commission. A variety of factors may affect the Company's performance, including, but not limited to: The Company's ability to manage the significant environmental liabilities that it assumed in connection with prior acquisitions; The availability and costs of liability insurance and financial assurance required by governmental entities related to the Company's facilities; General conditions in the oil and gas industries, particularly in the Alberta oil sands and other parts of Western Canada; The possibility that the expected synergies from the acquisition of Eveready will not be timely or fully realized; The extent to which the Company's major customers commit to and schedule major projects; The occurrence of events such as the recent Gulf spill, which require cleanup and other services; The Company's future cash flow and earnings; The Company's ability to meet its debt obligations; The Company's ability to increase its market share; The effects of general economic conditions in the United States, Canada and other territories and countries where the Company does business; The effect of economic forces and competition in specific marketplaces where the Company competes; The possible impact of new regulations or laws pertaining to all activities of the Company's operations; The outcome of litigation or threatened litigation or regulatory actions; The effect of commodity pricing on overall revenues and profitability; Possible fluctuations in quarterly or annual results or adverse impacts on the Company's results caused by the adoption of new accounting standards or interpretations or regulatory rules and regulations; The effect of weather conditions or other aspects of the forces of nature on field or facility operations; The effects of industry trends in the environmental services, energy and industrial services marketplaces; and The effects of conditions in the financial services industry on the availability of capital and financing. Any of the above factors and numerous others not listed nor foreseen may adversely impact the Company's financial performance. Additional information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, which may be viewed on www.cleanharbors.com/investor_relations.