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Press release from Business Wire

Clean Harbors Reports Fourth-Quarter and Year-End 2010 Financial Results

<p> <i>-- Contributions Across Business Lines Drive Strong Results</i> </p> <p> <i>-- Q4 Revenue Increases 20% to $417 Million</i> </p> <p> <i>-- Q4 Net Income Up 68%; EBITDA Grows to $70.3 Million</i> </p> <p> <i>-- Company Increases 2011 Guidance</i> </p> <p> </p>

Wednesday, February 23, 2011

Clean Harbors Reports Fourth-Quarter and Year-End 2010 Financial Results07:30 EST Wednesday, February 23, 2011 NORWELL, Mass. (Business Wire) -- Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental and energy and industrial services throughout North America,today announced financial results for the fourth quarter and year ended December 31, 2010. Revenues increased 20% to $417.1 million from $347.0 million in the fourth quarter of 2009, reflecting a strong contribution from both its environmental and energy and industrial businesses. Income from operations increased 54% to $43.0 million from $27.9 million in the fourth quarter of 2009. Fourth quarter 2010 net income grew to $23.3 million, or $0.88 per diluted share, from $13.9 million, or $0.53 per diluted share, in the fourth quarter of 2009. EBITDA (see description below) increased to $70.3 million from $52.6 million in the fourth quarter of 2009. Comments on the Fourth Quarter “Clean Harbors concluded a successful 2010 with a strong fourth-quarter performance, as we delivered 34 percent growth in EBITDA on a 20 percent increase in revenue,” said Alan S. McKim, Chairman and Chief Executive Officer. “We experienced a continuation of the favorable industry trends we saw in the third quarter, achieving double-digit growth across a number of key markets including Chemicals, Manufacturing, Oil & Gas, Refineries and Utilities.” “Both our Environmental business and our Energy and Industrial business generated momentum during the quarter,” McKim said. “Within Environmental, utilization at our incinerators exceeded 93% for the quarter – our highest level of 2010. In addition, a sharp uptick in projects drove total landfill volumes up by more than 60 percent from the same period of 2009. Within our Energy and Industrial business, increased investments in Western Canada by major energy companies continued to spark production activity, creating new opportunities for us throughout the region and generating another excellent quarter for our lodging business.” Full-Year 2010 Results Revenues for 2010 increased 61% to $1.73 billion from $1.07 billion in 2009. The Company's participation in the oil spill response efforts in the Gulf of Mexico and Michigan generated revenues of approximately $253 million in 2010. Income from operations more than doubled to $211.9 million from $82.1 million in 2009. 2010 net income grew to $130.5 million, or $4.93 per diluted share, from $36.7 million, or $1.47 per diluted share, in 2009. EBITDA (see description below) doubled to $314.7 million from $157.6 million for 2009. The Company concluded 2010 with cash and marketable securities of $305.4 million, compared with $235.6 million at December 31, 2009. Non-GAAP Results Clean Harbors reports EBITDA results, which are non-GAAP financial measures, as a complement to results provided in accordance with accounting principles generally accepted in the United States (GAAP) and believes that such information provides additional useful information to investors since the Company's loan covenants are based upon levels of EBITDA achieved. The Company defines EBITDA in accordance with its existing credit agreement, as described in the following reconciliation showing the differences between reported net income and EBITDA for the fourth quarter and full year of 2010 and 2009 (in thousands):         For the three months ended: For the year ended: December 31,2010     December 31,2009       December 31,2010     December 31,2009         Net income $ 23,329 $ 13,922 $ 130,515 $ 36,686 Accretion of environmental liabilities 2,508 2,689 10,307 10,617 Depreciation and amortization 24,802 21,947 92,473 64,898 Other income (310) (104) (2,795) (259) Loss on early extinguishment of debt — — 2,294 4,853 Interest expense, net 6,164 6,454 27,936 15,999 Provision for income taxes 13,815 8,678 56,756 26,225 Income from discontinued operations, net of tax   —       (1,027)         (2,794)       (1,439) EBITDA $ 70,308     $ 52,559       $ 314,692     $ 157,580   Business Outlook and Financial Guidance “Our outlook remains decidedly positive as we head into 2011. We are continuing to see indications of the general economic recovery as we maintain an active pipeline of potential new projects within both our Environmental and Energy and Industrial businesses. We are excited about the prospects for our pending acquisition of Badger Daylighting, and are continuing to evaluate additional strategic acquisition opportunities,” McKim concluded. Based on fourth-quarter performance, and current market conditions, Clean Harbors is increasing its 2011 annual revenue and EBITDA guidance. The Company currently expects 2011 revenues in the range of $1.54 billion to $1.59 billion, up from its previous revenue guidance of $1.52 billion to $1.57 billion. For 2011, the Company expects EBITDA in the range of $262 million to $270 million, an increase from its previous guidance of $258 million to $267 million. This guidance is exclusive of any potential future acquisitions, including the Company's planned purchase of Badger Daylighting. Conference Call Information Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. On the call, Chairman, President and Chief Executive Officer Alan S. McKim and Executive Vice President and Chief Financial Officer James M. Rutledge will discuss Clean Harbors' financial results, business outlook and growth strategy. Investors who wish to listen to the webcast should log onto www.cleanharbors.com/investor_relations. The live call also can be accessed by dialing 877.709.8155 or 201.689.8881 prior to the start of the call. If you are unable to listen to the live call, the webcast will be archived on the Company's website. About Clean HarborsClean Harbors is the leading provider of environmental and energy and industrial 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, Singapore, Sweden, 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. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions. Such statements may include, but are not limited to, statements about the Company's business outlook and financial guidance and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, those items identified as “risk factors” in the Company's most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. 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, which may be viewed at www.cleanharbors.com/investor_relations.         CLEAN HARBORS, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF INCOME(in thousands except per share amounts)   For the three months ended:For the year ended:December 31,       December 31,December 31,       December 31,2010200920102009   Revenues $ 417,058 $ 346,969 $ 1,731,244 $ 1,074,220 Cost of revenues (exclusive of items shown separately below) 290,770 252,816 1,210,740 753,483 Selling, general and administrative expenses 55,980 41,594 205,812 163,157 Accretion of environmental liabilities 2,508 2,689 10,307 10,617 Depreciation and amortization   24,802   21,947   92,473   64,898 Income from operations 42,998 27,923 211,912 82,065 Other income 310 104 2,795 259 Loss on early extinguishment of debt — — (2,294) (4,853) Interest (expense), net   (6,164)   (6,454)   (27,936)   (15,999) Income from continuing operations before provision for incometaxes 37,144 21,573 184,477 61,472 Provision for income taxes   13,815   8,678   56,756   26,225 Income from continuing operations 23,329 12,895 127,721 35,247 Income from discontinued operations, net of tax   —   1,027   2,794   1,439 Net income $ 23,329 $ 13,922 $ 130,515 $ 36,686 Earnings per share: Basic $ 0.88 $ 0.53 $ 4.96 $ 1.48 Diluted $ 0.88 $ 0.53 $ 4.93 $ 1.47   Weighted average common shares outstanding   26,371   26,244   26,311   24,817 Weighted average common shares outstanding plus potentially dilutive common shares   26,585   26,363   26,467   24,933           CLEAN HARBORS, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSASSETS(in thousands)   December 31,December 31,20102009 Current assets: Cash and cash equivalents $ 302,210 $ 233,546 Marketable securities 3,174 2,072 Accounts receivable, net 332,678 274,918 Unbilled accounts receivable 19,117 12,331 Deferred costs 6,891 5,192 Prepaid expenses and other current assets 28,939 18,348 Supplies inventories 44,546 41,417 Deferred tax assets 14,982 18,865 Assets held for sale   —   13,561 Total current assets   752,537   620,250   Property, plant and equipment, net   655,394   589,944   Other assets: Long-term investments 5,437 6,503 Deferred financing costs 7,768 10,156 Goodwill 60,252 56,085 Permits and other intangibles, net 114,400 114,188 Other   6,687   3,942 Total other assets   194,544   190,874 Total assets $ 1,602,475 $ 1,401,068           CLEAN HARBORS, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSLIABILITIES AND STOCKHOLDERS' EQUITY (in thousands)   December 31,December 31,20102009 Current liabilities: Current portion of capital lease obligations $ 7,954 $ 1,923 Accounts payable 136,978 97,923 Deferred revenue 30,745 21,156 Accrued expenses 116,089 90,707 Current portion of closure, post-closure and remedial liabilities 14,518 18,412 Liabilities held for sale   —   3,199 Total current liabilities   306,284   233,320 Other liabilities: Closure and post-closure liabilities, less current portion 32,830 28,505 Remedial liabilities, less current portion 128,944 134,379 Long-term obligations 264,007 292,433 Capital lease obligations, less current portion 6,839 6,915 Unrecognized tax benefits and other long-term liabilities   82,744   91,691 Total other liabilities   515,364   553,923 Total stockholders' equity, net   780,827   613,825 Total liabilities and stockholders' equity $ 1,602,475 $ 1,401,068   Clean Harbors, Inc.James M. Rutledge, 781-792-5100EVP and Chief Financial OfficerInvestorRelations@cleanharbors.comorClean Harbors, Inc.Bill Geary, 781-792-5130Corporate Counsel for Public AffairsorSharon Merrill AssociatesJim Buckley, 617-542-5300Executive Vice Presidentclh@investorrelations.com