x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2016 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Massachusetts | 04-2997780 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
42 Longwater Drive, Norwell, MA | 02061-9149 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
Common Stock, $.01 par value | 57,552,959 | |
(Class) | (Outstanding as of April 29, 2016) |
Page No. | |
March 31, 2016 | December 31, 2015 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 355,345 | $ | 184,708 | |||
Accounts receivable, net of allowances aggregating $28,628 and $31,426, respectively | 458,301 | 496,004 | |||||
Unbilled accounts receivable | 31,805 | 25,940 | |||||
Deferred costs | 19,346 | 18,758 | |||||
Inventories and supplies | 154,768 | 149,521 | |||||
Prepaid expenses and other current assets | 44,056 | 46,265 | |||||
Total current assets | 1,063,621 | 921,196 | |||||
Property, plant and equipment, net | 1,596,872 | 1,532,467 | |||||
Other assets: | |||||||
Deferred financing costs | 1,627 | 1,847 | |||||
Goodwill | 460,642 | 453,105 | |||||
Permits and other intangibles, net | 502,532 | 506,818 | |||||
Other | 16,381 | 15,995 | |||||
Total other assets | 981,182 | 977,765 | |||||
Total assets | $ | 3,641,675 | $ | 3,431,428 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 188,834 | $ | 241,183 | |||
Deferred revenue | 63,587 | 61,882 | |||||
Accrued expenses | 191,592 | 193,660 | |||||
Current portion of closure, post-closure and remedial liabilities | 21,497 | 20,395 | |||||
Total current liabilities | 465,510 | 517,120 | |||||
Other liabilities: | |||||||
Closure and post-closure liabilities, less current portion of $7,194 and $7,229, respectively | 50,896 | 49,020 | |||||
Remedial liabilities, less current portion of $14,303 and $13,166, respectively | 117,076 | 118,826 | |||||
Long-term obligations | 1,631,603 | 1,382,543 | |||||
Deferred taxes, unrecognized tax benefits and other long-term liabilities | 260,017 | 267,637 | |||||
Total other liabilities | 2,059,592 | 1,818,026 | |||||
Commitments and contingent liabilities (See Note 14) | |||||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value: | |||||||
Authorized 80,000,000; shares issued and outstanding 57,551,188 and 57,593,201 shares, respectively | 576 | 576 | |||||
Shares held under employee participation plan | (469 | ) | (469 | ) | |||
Additional paid-in capital | 733,726 | 738,401 | |||||
Accumulated other comprehensive loss | (209,055 | ) | (254,892 | ) | |||
Accumulated earnings | 591,795 | 612,666 | |||||
Total stockholders’ equity | 1,116,573 | 1,096,282 | |||||
Total liabilities and stockholders’ equity | $ | 3,641,675 | $ | 3,431,428 |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Service revenues | $ | 530,231 | $ | 596,330 | |||
Product revenues | 105,852 | 136,169 | |||||
Total revenues | 636,083 | 732,499 | |||||
Cost of revenues (exclusive of items shown separately below) | |||||||
Service revenues | 373,986 | 416,390 | |||||
Product revenues | 90,293 | 130,117 | |||||
Total cost of revenues | 464,279 | 546,507 | |||||
Selling, general and administrative expenses | 104,484 | 107,715 | |||||
Accretion of environmental liabilities | 2,505 | 2,619 | |||||
Depreciation and amortization | 68,902 | 68,356 | |||||
(Loss) income from operations | (4,087 | ) | 7,302 | ||||
Other (expense) income | (350 | ) | 409 | ||||
Interest expense, net of interest income of $150 and $151, respectively | (18,980 | ) | (19,438 | ) | |||
Loss before benefit for income taxes | (23,417 | ) | (11,727 | ) | |||
Benefit for income taxes | (2,546 | ) | (4,638 | ) | |||
Net loss | $ | (20,871 | ) | $ | (7,089 | ) | |
Loss per share: | |||||||
Basic | $ | (0.36 | ) | $ | (0.12 | ) | |
Diluted | $ | (0.36 | ) | $ | (0.12 | ) | |
Shares used to compute loss per share - Basic | 57,617 | 58,875 | |||||
Shares used to compute loss per share - Diluted | 57,617 | 58,875 |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Net loss | $ | (20,871 | ) | $ | (7,089 | ) | |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 45,837 | (77,403 | ) | ||||
Other comprehensive income (loss) | 45,837 | (77,403 | ) | ||||
Comprehensive income (loss) | $ | 24,966 | $ | (84,492 | ) |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (20,871 | ) | $ | (7,089 | ) | |
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation and amortization | 68,902 | 68,356 | |||||
Allowance for doubtful accounts | 1,072 | 2,204 | |||||
Amortization of deferred financing costs and debt discount | 872 | 819 | |||||
Accretion of environmental liabilities | 2,505 | 2,619 | |||||
Changes in environmental liability estimates | (95 | ) | 385 | ||||
Deferred income taxes | 7 | (903 | ) | ||||
Stock-based compensation | 2,093 | 1,850 | |||||
Excess tax benefit of stock-based compensation | — | (5 | ) | ||||
Net tax deficiency on stock based awards | (345 | ) | (111 | ) | |||
Other expense (income) | 350 | (409 | ) | ||||
Environmental expenditures | (3,518 | ) | (5,604 | ) | |||
Changes in assets and liabilities, net of acquisitions | |||||||
Accounts receivable and unbilled accounts receivable | 35,839 | 27,065 | |||||
Inventories and supplies | (2,882 | ) | 22,131 | ||||
Other current assets | 1,838 | 374 | |||||
Accounts payable | (36,195 | ) | 2,623 | ||||
Other current and long-term liabilities | (10,283 | ) | (29,528 | ) | |||
Net cash from operating activities | 39,289 | 84,777 | |||||
Cash flows from investing activities: | |||||||
Additions to property, plant and equipment | (75,781 | ) | (52,949 | ) | |||
Proceeds from sales of fixed assets | 1,273 | 760 | |||||
Acquisitions, net of cash acquired | (34,993 | ) | — | ||||
Additions to intangible assets, including costs to obtain or renew permits | (512 | ) | (1,171 | ) | |||
Net cash used in investing activities | (110,013 | ) | (53,360 | ) | |||
Cash flows from financing activities: | |||||||
Change in uncashed checks | (5,218 | ) | (20,268 | ) | |||
Issuance of restricted shares, net of shares remitted | (1,425 | ) | (1,154 | ) | |||
Repurchases of common stock | (4,998 | ) | (15,379 | ) | |||
Deferred financing costs paid | (2,190 | ) | — | ||||
Payments on capital leases | — | (398 | ) | ||||
Excess tax benefit of stock-based compensation | — | 5 | |||||
Issuance of senior secured notes, including premium | 250,625 | — | |||||
Net cash from financing activities | 236,794 | (37,194 | ) | ||||
Effect of exchange rate change on cash | 4,567 | (7,363 | ) | ||||
Increase (decrease) in cash and cash equivalents | 170,637 | (13,140 | ) | ||||
Cash and cash equivalents, beginning of period | 184,708 | 246,879 | |||||
Cash and cash equivalents, end of period | $ | 355,345 | $ | 233,739 | |||
Supplemental information: | |||||||
Cash payments for interest and income taxes: | |||||||
Interest paid | $ | 21,808 | $ | 21,667 | |||
Income taxes paid (received) | 5,848 | (3,790 | ) | ||||
Non-cash investing and financing activities: | |||||||
Accrual for repurchased shares | — | 736 | |||||
Property, plant and equipment accrued | 14,947 | 22,832 | |||||
Receivable for estimated purchase price adjustment | 250 | — |
Common Stock | Shares Held Under Employee Participation Plan | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Number of Shares | $ 0.01 Par Value | Additional Paid-in Capital | Accumulated Earnings | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance at January 1, 2016 | 57,593 | $ | 576 | $ | (469 | ) | $ | 738,401 | $ | (254,892 | ) | $ | 612,666 | $ | 1,096,282 | |||||||||||
Net loss | — | — | — | — | — | (20,871 | ) | (20,871 | ) | |||||||||||||||||
Other comprehensive income | — | — | — | — | 45,837 | — | 45,837 | |||||||||||||||||||
Stock-based compensation | — | — | — | 2,093 | — | — | 2,093 | |||||||||||||||||||
Issuance of restricted shares, net of shares remitted | 62 | 1 | — | (1,426 | ) | — | — | (1,425 | ) | |||||||||||||||||
Repurchases of common stock | (104 | ) | (1 | ) | — | (4,997 | ) | — | — | (4,998 | ) | |||||||||||||||
Net tax deficiency on stock based awards | — | — | — | (345 | ) | — | — | (345 | ) | |||||||||||||||||
Balance at March 31, 2016 | 57,551 | $ | 576 | $ | (469 | ) | $ | 733,726 | $ | (209,055 | ) | $ | 591,795 | $ | 1,116,573 |
At acquisition date April 11, 2015 | Measurement Period Adjustments | At acquisition date as reported March 31, 2016 | |||||||||
Accounts receivable | $ | 7,109 | $ | 192 | $ | 7,301 | |||||
Inventories and supplies | 1,791 | — | 1,791 | ||||||||
Prepaid and other current assets | 1,749 | (1,084 | ) | 665 | |||||||
Property, plant and equipment | 30,468 | (2,827 | ) | 27,641 | |||||||
Permits and other intangibles | 20,000 | (1,900 | ) | 18,100 | |||||||
Current liabilities | (5,859 | ) | (25 | ) | (5,884 | ) | |||||
Closure and post-closure liabilities | (1,676 | ) | (657 | ) | (2,333 | ) | |||||
Deferred taxes, unrecognized tax benefits and other long-term liabilities | (13,081 | ) | 3,907 | (9,174 | ) | ||||||
Total identifiable net assets | 40,501 | (2,394 | ) | 38,107 | |||||||
Goodwill | 36,591 | 4,638 | 41,229 | ||||||||
Total | $ | 77,092 | $ | 2,244 | $ | 79,336 |
March 31, 2016 | December 31, 2015 | ||||||
Oil and oil products | $ | 36,196 | $ | 33,603 | |||
Supplies and drums | 79,035 | 78,132 | |||||
Solvent and solutions | 9,026 | 8,868 | |||||
Modular camp accommodations | 15,438 | 15,126 | |||||
Other | 15,073 | 13,792 | |||||
Total inventories and supplies | $ | 154,768 | $ | 149,521 |
March 31, 2016 | December 31, 2015 | ||||||
Land | $ | 101,460 | $ | 100,582 | |||
Asset retirement costs (non-landfill) | 12,188 | 12,434 | |||||
Landfill assets | 140,792 | 136,624 | |||||
Buildings and improvements | 353,869 | 344,209 | |||||
Camp equipment | 158,619 | 149,361 | |||||
Vehicles | 529,386 | 500,619 | |||||
Equipment | 1,400,407 | 1,328,915 | |||||
Furniture and fixtures | 5,477 | 5,337 | |||||
Construction in progress | 131,894 | 113,657 | |||||
2,834,092 | 2,691,738 | ||||||
Less - accumulated depreciation and amortization | 1,237,220 | 1,159,271 | |||||
Total property, plant and equipment, net | $ | 1,596,872 | $ | 1,532,467 |
Technical Services | Industrial & Field Services | Kleen Performance Products | SK Environmental Services | Lodging Services | Oil and Gas Field Services | Totals | ||||||||||||||||||||||
Balance at January 1, 2016 | $ | 49,267 | $ | 105,286 | $ | 49,755 | $ | 216,589 | $ | 32,208 | $ | — | $ | 453,105 | ||||||||||||||
Measurement period adjustment from prior acquisitions | — | — | — | 2,095 | — | — | 2,095 | |||||||||||||||||||||
Foreign currency translation and other | (573 | ) | 1,351 | 388 | 2,170 | 2,106 | — | 5,442 | ||||||||||||||||||||
Balance at March 31, 2016 | $ | 48,694 | $ | 106,637 | $ | 50,143 | $ | 220,854 | $ | 34,314 | $ | — | $ | 460,642 |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||
Cost | Accumulated Amortization | Net | Weighted Average Remaining Amortization Period (in years) | Cost | Accumulated Amortization | Net | Weighted Average Remaining Amortization Period (in years) | ||||||||||||||||||||
Permits | $ | 164,160 | $ | 63,179 | $ | 100,981 | 18.3 | $ | 161,396 | $ | 61,142 | $ | 100,254 | 19.0 | |||||||||||||
Customer and supplier relationships | 379,339 | 108,612 | 270,727 | 9.7 | 374,866 | 99,463 | 275,403 | 10.1 | |||||||||||||||||||
Other intangible assets | 32,856 | 24,990 | 7,866 | 1.3 | 31,416 | 22,581 | 8,835 | 1.5 | |||||||||||||||||||
Total amortizable permits and other intangible assets | 576,355 | 196,781 | 379,574 | 9.6 | 567,678 | 183,186 | 384,492 | 10.0 | |||||||||||||||||||
Trademarks and trade names | 122,958 | — | 122,958 | Indefinite | 122,326 | — | 122,326 | Indefinite | |||||||||||||||||||
Total permits and other intangible assets | $ | 699,313 | $ | 196,781 | $ | 502,532 | $ | 690,004 | $ | 183,186 | $ | 506,818 |
Years Ending December 31, | Expected Amortization | ||
2016 (nine months) | $ | 29,251 | |
2017 | 33,936 | ||
2018 | 31,156 | ||
2019 | 28,438 | ||
2020 | 25,719 | ||
Thereafter | 231,074 | ||
$ | 379,574 |
March 31, 2016 | December 31, 2015 | ||||||
Insurance | $ | 54,999 | $ | 55,899 | |||
Interest | 21,864 | 20,500 | |||||
Accrued compensation and benefits | 40,690 | 35,646 | |||||
Income, real estate, sales and other taxes | 36,103 | 37,095 | |||||
Other | 37,936 | 44,520 | |||||
$ | 191,592 | $ | 193,660 |
Landfill Retirement Liability | Non-Landfill Retirement Liability | Total | |||||||||
Balance at January 1, 2016 | $ | 32,023 | $ | 24,226 | $ | 56,249 | |||||
Adjustments during the measurement period related to acquisitions | — | 657 | 657 | ||||||||
New asset retirement obligations | 621 | — | 621 | ||||||||
Accretion | 691 | 567 | 1,258 | ||||||||
Changes in estimates recorded to statement of operations | (283 | ) | (132 | ) | (415 | ) | |||||
Expenditures | (112 | ) | (391 | ) | (503 | ) | |||||
Currency translation and other | 156 | 67 | 223 | ||||||||
Balance at March 31, 2016 | $ | 33,096 | $ | 24,994 | $ | 58,090 |
Remedial Liabilities for Landfill Sites | Remedial Liabilities for Inactive Sites | Remedial Liabilities (Including Superfund) for Non-Landfill Operations | Total | ||||||||||||
Balance at January 1, 2016 | $ | 2,327 | $ | 63,613 | $ | 66,052 | $ | 131,992 | |||||||
Accretion | 26 | 678 | 543 | 1,247 | |||||||||||
Changes in estimates recorded to statement of operations | 71 | (101 | ) | 350 | 320 | ||||||||||
Expenditures | (26 | ) | (956 | ) | (2,033 | ) | (3,015 | ) | |||||||
Currency translation and other | — | 51 | 784 | 835 | |||||||||||
Balance at March 31, 2016 | $ | 2,398 | $ | 63,285 | $ | 65,696 | $ | 131,379 |
March 31, 2016 | December 31, 2015 | ||||||
Senior unsecured notes, at 5.25%, due August 1, 2020 ("2020 Notes") | $ | 800,000 | $ | 800,000 | |||
Senior unsecured notes, at 5.125%, due June 1, 2021 ("2021 Notes") | 845,000 | 595,000 | |||||
Long-term obligations, at par | $ | 1,645,000 | $ | 1,395,000 | |||
Unamortized debt issuance costs and premium, net | (13,397 | ) | (12,457 | ) | |||
Long-term obligations, at carrying value | $ | 1,631,603 | $ | 1,382,543 |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Numerator for basic and diluted earnings per share: | |||||||
Net loss | $ | (20,871 | ) | $ | (7,089 | ) | |
Denominator: | |||||||
Basic shares outstanding | 57,617 | 58,875 | |||||
Dilutive shares outstanding | 57,617 | 58,875 | |||||
Basic loss per share: | $ | (0.36 | ) | $ | (0.12 | ) | |
Diluted loss per share: | $ | (0.36 | ) | $ | (0.12 | ) |
Foreign Currency Translation | Unfunded Pension Liability | Total | |||||||||
Balance at January 1, 2016 | $ | (252,939 | ) | $ | (1,953 | ) | $ | (254,892 | ) | ||
Other comprehensive income before reclassifications | 45,837 | — | 45,837 | ||||||||
Other comprehensive income | $ | 45,837 | $ | — | $ | 45,837 | |||||
Balance at March 31, 2016 | $ | (207,102 | ) | $ | (1,953 | ) | $ | (209,055 | ) |
Restricted Stock | Number of Shares | Weighted Average Grant-Date Fair Value | ||||
Balance at January 1, 2016 | 362,618 | $ | 55.79 | |||
Granted | 43,771 | $ | 43.87 | |||
Vested | (85,388 | ) | $ | 55.79 | ||
Forfeited | (15,346 | ) | $ | 57.20 | ||
Balance at March 31, 2016 | 305,655 | $ | 54.01 |
Performance Stock | Number of Shares | Weighted Average Grant-Date Fair Value | ||||
Balance at January 1, 2016 | 187,274 | $ | 57.13 | |||
Vested | (8,420 | ) | $ | 61.90 | ||
Forfeited | (10,191 | ) | $ | 57.65 | ||
Balance at March 31, 2016 | 168,663 | $ | 56.86 |
For the Three Months Ended March 31, 2016 | For the Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||
Third party revenues | Intersegment revenues, net | Corporate Items, net | Direct revenues | Third party revenues | Intersegment revenues, net | Corporate Items, net | Direct revenues | ||||||||||||||||||||||||
Technical Services | $ | 219,105 | $ | 34,844 | $ | 388 | $ | 254,337 | $ | 240,325 | $ | 34,904 | $ | 1,297 | $ | 276,526 | |||||||||||||||
Industrial and Field Services | 121,577 | (7,466 | ) | (17 | ) | 114,094 | 146,868 | (6,561 | ) | 78 | 140,385 | ||||||||||||||||||||
Kleen Performance Products | 67,543 | (9,407 | ) | (1 | ) | 58,135 | 96,807 | (18,257 | ) | (1 | ) | 78,549 | |||||||||||||||||||
SK Environmental Services | 179,418 | (19,114 | ) | 367 | 160,671 | 160,684 | (11,582 | ) | — | 149,102 | |||||||||||||||||||||
Lodging Services | 15,645 | 264 | 21 | 15,930 | 34,104 | 164 | 17 | 34,285 | |||||||||||||||||||||||
Oil and Gas Field Services | 32,016 | 879 | 87 | 32,982 | 53,587 | 1,332 | 9 | 54,928 | |||||||||||||||||||||||
Corporate Items | 779 | — | (845 | ) | (66 | ) | 124 | — | (1,400 | ) | (1,276 | ) | |||||||||||||||||||
Total | $ | 636,083 | $ | — | $ | — | $ | 636,083 | $ | 732,499 | $ | — | $ | — | $ | 732,499 |
For the Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Adjusted EBITDA: | |||||||
Technical Services | $ | 60,398 | $ | 63,401 | |||
Industrial and Field Services | 2,118 | 10,309 | |||||
Kleen Performance Products | 4,560 | (4,476 | ) | ||||
SK Environmental Services | 35,495 | 27,249 | |||||
Lodging Services | 1,019 | 6,910 | |||||
Oil and Gas Field Services | (1,394 | ) | 1,403 | ||||
Corporate Items | (34,876 | ) | (26,519 | ) | |||
Total | $ | 67,320 | $ | 78,277 | |||
Reconciliation to Consolidated Statements of Operations: | |||||||
Accretion of environmental liabilities | 2,505 | 2,619 | |||||
Depreciation and amortization | 68,902 | 68,356 | |||||
(Loss) income from operations | (4,087 | ) | 7,302 | ||||
Other expense (income) | 350 | (409 | ) | ||||
Interest expense, net of interest income | 18,980 | 19,438 | |||||
Loss before benefit for income taxes | $ | (23,417 | ) | $ | (11,727 | ) |
March 31, 2016 | |||||||||||||||||||||||||||||||
Technical Services | Industrial and Field Services | Kleen Performance Products | SK Environmental Services | Lodging Services | Oil and Gas Field Services | Corporate Items | Totals | ||||||||||||||||||||||||
Property, plant and equipment, net | $ | 499,464 | $ | 234,088 | $ | 202,445 | $ | 306,462 | $ | 108,489 | $ | 153,869 | $ | 92,055 | $ | 1,596,872 | |||||||||||||||
Goodwill | 48,694 | 106,637 | 50,143 | 220,854 | 34,314 | — | — | 460,642 | |||||||||||||||||||||||
Permits and other intangible, net | 73,632 | 14,215 | 139,725 | 254,230 | 7,004 | 13,726 | — | 502,532 | |||||||||||||||||||||||
Total assets | $ | 818,098 | $ | 378,639 | $ | 501,019 | $ | 858,544 | $ | 188,547 | $ | 243,543 | $ | 653,285 | $ | 3,641,675 |
December 31, 2015 | |||||||||||||||||||||||||||||||
Technical Services | Industrial and Field Services | Kleen Performance Products | SK Environmental Services | Lodging Services | Oil and Gas Field Services | Corporate Items | Totals | ||||||||||||||||||||||||
Property, plant and equipment, net | $ | 483,425 | $ | 237,660 | $ | 193,855 | $ | 264,539 | $ | 105,208 | $ | 156,286 | $ | 91,494 | $ | 1,532,467 | |||||||||||||||
Goodwill | 49,267 | 105,286 | 49,755 | 216,589 | 32,208 | — | — | 453,105 | |||||||||||||||||||||||
Permits and other intangible, net | 73,601 | 14,649 | 140,410 | 256,251 | 7,045 | 14,862 | — | 506,818 | |||||||||||||||||||||||
Total assets | $ | 800,060 | $ | 368,858 | $ | 492,483 | $ | 805,488 | $ | 181,357 | $ | 244,210 | $ | 538,972 | $ | 3,431,428 |
March 31, 2016 | December 31, 2015 | ||||||
United States | $ | 2,783,892 | $ | 2,575,746 | |||
Canada | 853,112 | 851,949 | |||||
Other foreign | 4,671 | 3,733 | |||||
Total | $ | 3,641,675 | $ | 3,431,428 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 56,028 | $ | 219,856 | $ | 79,461 | $ | — | $ | 355,345 | |||||||||
Intercompany receivables | 172,776 | 283,034 | 38,065 | (493,875 | ) | — | |||||||||||||
Accounts receivable, net | — | 380,873 | 77,428 | — | 458,301 | ||||||||||||||
Other current assets | — | 185,171 | 64,804 | — | 249,975 | ||||||||||||||
Property, plant and equipment, net | — | 1,129,262 | 467,610 | — | 1,596,872 | ||||||||||||||
Investments in subsidiaries | 2,832,086 | 524,500 | — | (3,356,586 | ) | — | |||||||||||||
Intercompany debt receivable | — | 278,018 | 3,701 | (281,719 | ) | — | |||||||||||||
Goodwill | — | 369,400 | 91,242 | — | 460,642 | ||||||||||||||
Permits and other intangibles, net | — | 429,388 | 73,144 | — | 502,532 | ||||||||||||||
Other long-term assets | 1,626 | 9,457 | 6,925 | — | 18,008 | ||||||||||||||
Total assets | $ | 3,062,516 | $ | 3,808,959 | $ | 902,380 | $ | (4,132,180 | ) | $ | 3,641,675 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||
Current liabilities | $ | 22,124 | $ | 382,100 | $ | 61,286 | $ | — | $ | 465,510 | |||||||||
Intercompany payables | 288,515 | 203,542 | 1,818 | (493,875 | ) | — | |||||||||||||
Closure, post-closure and remedial liabilities, net | — | 152,767 | 15,205 | — | 167,972 | ||||||||||||||
Long-term obligations | 1,631,603 | — | — | — | 1,631,603 | ||||||||||||||
Intercompany debt payable | 3,701 | — | 278,018 | (281,719 | ) | — | |||||||||||||
Other long-term liabilities | — | 238,464 | 21,553 | — | 260,017 | ||||||||||||||
Total liabilities | 1,945,943 | 976,873 | 377,880 | (775,594 | ) | 2,525,102 | |||||||||||||
Stockholders’ equity | 1,116,573 | 2,832,086 | 524,500 | (3,356,586 | ) | 1,116,573 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,062,516 | $ | 3,808,959 | $ | 902,380 | $ | (4,132,180 | ) | $ | 3,641,675 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 11,017 | $ | 83,479 | $ | 90,212 | $ | — | $ | 184,708 | |||||||||
Intercompany receivables | 164,709 | 213,243 | 39,804 | (417,756 | ) | — | |||||||||||||
Accounts receivables | — | 404,580 | 91,424 | — | 496,004 | ||||||||||||||
Other current assets | — | 179,969 | 60,515 | — | 240,484 | ||||||||||||||
Property, plant and equipment, net | — | 1,082,466 | 450,001 | — | 1,532,467 | ||||||||||||||
Investments in subsidiaries | 2,547,307 | 522,067 | — | (3,069,374 | ) | — | |||||||||||||
Intercompany debt receivable | — | 260,957 | 3,701 | (264,658 | ) | — | |||||||||||||
Goodwill | — | 367,306 | 85,799 | — | 453,105 | ||||||||||||||
Permits and other intangibles, net | — | 435,080 | 71,738 | — | 506,818 | ||||||||||||||
Other long-term assets | 1,068 | 10,274 | 6,500 | — | 17,842 | ||||||||||||||
Total assets | $ | 2,724,101 | $ | 3,559,421 | $ | 899,694 | $ | (3,751,788 | ) | $ | 3,431,428 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||
Current liabilities | $ | 20,813 | $ | 424,588 | $ | 71,719 | $ | — | $ | 517,120 | |||||||||
Intercompany payables | 220,762 | 195,287 | 1,707 | (417,756 | ) | — | |||||||||||||
Closure, post-closure and remedial liabilities, net | — | 153,190 | 14,656 | — | 167,846 | ||||||||||||||
Long-term obligations | 1,382,543 | — | — | — | 1,382,543 | ||||||||||||||
Intercompany debt payable | 3,701 | — | 260,957 | (264,658 | ) | — | |||||||||||||
Other long-term liabilities | — | 239,049 | 28,588 | — | 267,637 | ||||||||||||||
Total liabilities | 1,627,819 | 1,012,114 | 377,627 | (682,414 | ) | 2,335,146 | |||||||||||||
Stockholders’ equity | 1,096,282 | 2,547,307 | 522,067 | (3,069,374 | ) | 1,096,282 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,724,101 | $ | 3,559,421 | $ | 899,694 | $ | (3,751,788 | ) | $ | 3,431,428 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Revenues | |||||||||||||||||||
Service revenues | $ | — | $ | 428,477 | $ | 114,023 | $ | (12,269 | ) | $ | 530,231 | ||||||||
Product revenues | — | 89,588 | 18,713 | (2,449 | ) | 105,852 | |||||||||||||
Total revenues | — | 518,065 | 132,736 | (14,718 | ) | 636,083 | |||||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||||||
Service cost of revenues | — | 282,964 | 103,291 | (12,269 | ) | 373,986 | |||||||||||||
Product cost of revenues | — | 79,354 | 13,388 | (2,449 | ) | 90,293 | |||||||||||||
Total cost of revenues | — | 362,318 | 116,679 | (14,718 | ) | 464,279 | |||||||||||||
Selling, general and administrative expenses | 24 | 80,655 | 23,805 | — | 104,484 | ||||||||||||||
Accretion of environmental liabilities | — | 2,290 | 215 | — | 2,505 | ||||||||||||||
Depreciation and amortization | — | 48,695 | 20,207 | — | 68,902 | ||||||||||||||
(Loss) income from operations | (24 | ) | 24,107 | (28,170 | ) | — | (4,087 | ) | |||||||||||
Other expense | — | (88 | ) | (262 | ) | — | (350 | ) | |||||||||||
Interest (expense) income | (20,143 | ) | 1,111 | 52 | — | (18,980 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | (8,771 | ) | (26,495 | ) | — | 35,266 | — | ||||||||||||
Intercompany interest income (expense) | — | 5,159 | (5,159 | ) | — | — | |||||||||||||
(Loss) income before (benefit) provision for income taxes | (28,938 | ) | 3,794 | (33,539 | ) | 35,266 | (23,417 | ) | |||||||||||
(Benefit) provision for income taxes | (8,067 | ) | 12,565 | (7,044 | ) | — | (2,546 | ) | |||||||||||
Net loss | (20,871 | ) | (8,771 | ) | (26,495 | ) | 35,266 | (20,871 | ) | ||||||||||
Other comprehensive income | 45,837 | 45,837 | 28,927 | (74,764 | ) | 45,837 | |||||||||||||
Comprehensive income | $ | 24,966 | $ | 37,066 | $ | 2,432 | $ | (39,498 | ) | $ | 24,966 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Revenues | |||||||||||||||||||
Service revenues | $ | — | $ | 418,517 | $ | 193,453 | $ | (15,640 | ) | $ | 596,330 | ||||||||
Product revenues | — | 116,536 | 23,204 | (3,571 | ) | 136,169 | |||||||||||||
Total revenues | — | 535,053 | 216,657 | (19,211 | ) | 732,499 | |||||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||||||
Service cost of revenues | — | 277,602 | 154,428 | (15,640 | ) | 416,390 | |||||||||||||
Product cost of revenues | — | 115,286 | 18,402 | (3,571 | ) | 130,117 | |||||||||||||
Total cost of revenues | — | 392,888 | 172,830 | (19,211 | ) | 546,507 | |||||||||||||
Selling, general and administrative expenses | 25 | 80,984 | 26,706 | — | 107,715 | ||||||||||||||
Accretion of environmental liabilities | — | 2,306 | 313 | — | 2,619 | ||||||||||||||
Depreciation and amortization | — | 45,801 | 22,555 | — | 68,356 | ||||||||||||||
(Loss) income from operations | (25 | ) | 13,074 | (5,747 | ) | — | 7,302 | ||||||||||||
Other income (expense) | — | 111 | 298 | — | 409 | ||||||||||||||
Interest (expense) income | (19,639 | ) | 178 | 23 | — | (19,438 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 4,709 | (7,029 | ) | — | 2,320 | — | |||||||||||||
Intercompany interest income (expense) | — | 5,977 | (5,977 | ) | — | — | |||||||||||||
(Loss) income before (benefit) provision for income taxes | (14,955 | ) | 12,311 | (11,403 | ) | 2,320 | (11,727 | ) | |||||||||||
(Benefit) provision for income taxes | (7,866 | ) | 7,602 | (4,374 | ) | — | (4,638 | ) | |||||||||||
Net (loss) income | (7,089 | ) | 4,709 | (7,029 | ) | 2,320 | (7,089 | ) | |||||||||||
Other comprehensive loss | (77,403 | ) | (77,403 | ) | (50,635 | ) | 128,038 | (77,403 | ) | ||||||||||
Comprehensive loss | $ | (84,492 | ) | $ | (72,694 | ) | $ | (57,664 | ) | $ | 130,358 | $ | (84,492 | ) |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Net cash from (used in) operating activities | $ | 47,201 | $ | (3,361 | ) | $ | (4,551 | ) | $ | — | $ | 39,289 | |||||||
Cash flows used in investing activities: | |||||||||||||||||||
Additions to property, plant and equipment | — | (64,754 | ) | (11,027 | ) | — | (75,781 | ) | |||||||||||
Proceeds from sales of fixed assets | — | 277 | 996 | — | 1,273 | ||||||||||||||
Acquisitions, net of cash acquired | — | (34,993 | ) | — | — | (34,993 | ) | ||||||||||||
Costs to obtain or renew permits | — | (465 | ) | (47 | ) | — | (512 | ) | |||||||||||
Investment in subsidiaries | (250,625 | ) | — | — | 250,625 | — | |||||||||||||
Intercompany | — | (6,423 | ) | — | 6,423 | — | |||||||||||||
Net cash used in investing activities | (250,625 | ) | (106,358 | ) | (10,078 | ) | 257,048 | (110,013 | ) | ||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||
Change in uncashed checks | — | (4,529 | ) | (689 | ) | — | (5,218 | ) | |||||||||||
Issuance of restricted shares, net of shares remitted | (1,425 | ) | — | — | — | (1,425 | ) | ||||||||||||
Repurchases of common stock | (4,998 | ) | — | — | — | (4,998 | ) | ||||||||||||
Deferred financing costs paid | (2,190 | ) | — | — | — | (2,190 | ) | ||||||||||||
Issuance of senior secured notes, including premium | 250,625 | 250,625 | — | (250,625 | ) | 250,625 | |||||||||||||
Intercompany | 6,423 | — | — | (6,423 | ) | — | |||||||||||||
Net cash from (used in) financing activities | 248,435 | 246,096 | (689 | ) | (257,048 | ) | 236,794 | ||||||||||||
Effect of exchange rate change on cash | — | — | 4,567 | — | 4,567 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 45,011 | 136,377 | (10,751 | ) | — | 170,637 | |||||||||||||
Cash and cash equivalents, beginning of period | 11,017 | 83,479 | 90,212 | — | 184,708 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 56,028 | $ | 219,856 | $ | 79,461 | $ | — | $ | 355,345 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Net cash (used in) from operating activities | $ | (8,032 | ) | $ | 85,311 | $ | 7,498 | $ | — | $ | 84,777 | ||||||||
Cash flows used in investing activities: | |||||||||||||||||||
Additions to property, plant and equipment | — | (37,670 | ) | (15,279 | ) | — | (52,949 | ) | |||||||||||
Proceeds from sale of fixed assets | — | 113 | 647 | — | 760 | ||||||||||||||
Costs to obtain or renew permits | — | — | (1,171 | ) | — | (1,171 | ) | ||||||||||||
Intercompany | — | (108,435 | ) | — | 108,435 | — | |||||||||||||
Net cash used in investing activities | — | (145,992 | ) | (15,803 | ) | 108,435 | (53,360 | ) | |||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||
Change in uncashed checks | — | (14,694 | ) | (5,574 | ) | — | (20,268 | ) | |||||||||||
Issuance of restricted shares, net of shares remitted | (1,154 | ) | — | — | — | (1,154 | ) | ||||||||||||
Repurchases of common stock | (15,379 | ) | — | — | — | (15,379 | ) | ||||||||||||
Excess tax benefit of stock-based compensation | 5 | — | — | — | 5 | ||||||||||||||
Payments of capital leases | — | (164 | ) | (234 | ) | — | (398 | ) | |||||||||||
Intercompany | 108,435 | — | — | (108,435 | ) | — | |||||||||||||
Net cash from (used in) financing activities | 91,907 | (14,858 | ) | (5,808 | ) | (108,435 | ) | (37,194 | ) | ||||||||||
Effect of exchange rate change on cash | — | — | (7,363 | ) | — | (7,363 | ) | ||||||||||||
Decrease in cash and cash equivalents | 83,875 | (75,539 | ) | (21,476 | ) | — | (13,140 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 1,006 | 154,147 | 91,726 | — | 246,879 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 84,881 | $ | 78,608 | $ | 70,250 | $ | — | $ | 233,739 |
• | Technical Services - Technical Services segment results are predicated upon the demand by our customers for waste services directly attributable to waste volumes generated by them and the existence of project work contracted by the Technical Services segment and/or other segments of Clean Harbors whereby waste handling and/or disposal is required. In managing the business and evaluating performance, management tracks the volumes of waste handled and disposed of through our owned incinerators and landfills as well as the utilization of such incinerators. Levels of activity and ultimate performance associated with this segment can be impacted by inherent seasonality in the business and weather conditions, market conditions and overall levels of industrial activity, efficiency of our operations, competition and market pricing of our services and the management of our related operating costs. |
• | Industrial and Field Services - Industrial and Field Services segment results are impacted by the demand for planned and unplanned industrial related cleaning and maintenance services at customer sites and the requirement for environmental cleanup services on a scheduled or emergency basis, including response to national events such as major oil spills, natural disasters or other events where immediate and specialized services are pertinent. Management considers the number of plant sites where services are contracted and expected site turnaround schedules to be indicators of the businesses’ performance along with the existence of local or national events. |
• | Kleen Performance Products - Kleen Performance Products results are significantly impacted by the overall market pricing and product mix associated with base and blended oil products and more specifically the published prices of Group II base oils, which historically have seen correlation with overall crude oil prices which experienced significant declines for since 2014. Costs associated with used oils, which are raw materials associated with the segment’s products, can also be volatile as was the case for much of 2015 when such costs were disconnected from market pricing of the based and blended oil products sold by the segment. Given the impact of these falling prices, we are now charging disposal rates in order to mitigate the market-derived pressure on our margins and reestablishing a profitable spread. The implementation of our closed loop model resulting in the direct sales of our renewable oil products to end customers will also impact future operating results. |
• | SK Environmental Services - SK Environmental Services segment results are significantly impacted by the number of parts washers serviced by the business and the ability to attract small quantity waste producers as customers and |
• | Lodging Services - Lodging Services segment results are dependent upon levels of construction and maintenance activity associated with the oil and related industries in the Oil Sands and other regions of Western Canada in which our camps and lodges operate and demand for our modular unit production. Levels of overall activity in these regions drive the demand and related pricing for lodging and camp accommodations and related services. To mitigate the decrease in demand experienced in this business, we have targeted more non-traditional markets such as schools and hospitals to offer our modular unit accommodations and related services. Given that segment's operations are located entirely in Canada, the impact of foreign currency translations which result from changes in the exchange rates between the U.S. and Canadian dollar can significantly impact the amounts associated with overall business results. |
• | Oil and Gas Field Services - Oil and Gas Field Services segment results are significantly impacted by overall levels of oil and gas related exploration, drilling activity and production in North America. The levels of such exploration, drilling activity and production are largely dependent upon the number of oil rigs in operation, as well as global and North American oil prices on which such activity levels are strongly predicated. Since the third quarter of 2014, crude oil prices have declined approximately 65%. This recent oil price volatility and future price uncertainty has resulted in lower activity levels which are negatively impacting the business’ results. The majority of the segment's operations are in Canada, and therefore the impact of US to Canadian dollar foreign currency translation also significantly impacts the segment’s results. |
Summary of Operations (in thousands) | |||||||||||||
For the Three Months Ended | |||||||||||||
March 31, 2016 | March 31, 2015 | $ Change | % Change | ||||||||||
Third Party Revenues(1): | |||||||||||||
Technical Services | $ | 219,105 | $ | 240,325 | $ | (21,220 | ) | (8.8)% | |||||
Industrial and Field Services | 121,577 | 146,868 | (25,291 | ) | (17.2) | ||||||||
Kleen Performance Products | 67,543 | 96,807 | (29,264 | ) | (30.2) | ||||||||
SK Environmental Services | 179,418 | 160,684 | 18,734 | 11.7 | |||||||||
Lodging Services | 15,645 | 34,104 | (18,459 | ) | (54.1) | ||||||||
Oil and Gas Field Services | 32,016 | 53,587 | (21,571 | ) | (40.3) | ||||||||
Corporate Items | 779 | 124 | 655 | 528.2 | |||||||||
Total | $ | 636,083 | $ | 732,499 | $ | (96,416 | ) | (13.2)% | |||||
Direct Revenues(1): | |||||||||||||
Technical Services | $ | 254,337 | $ | 276,526 | $ | (22,189 | ) | (8.0)% | |||||
Industrial and Field Services | 114,094 | 140,385 | (26,291 | ) | (18.7) | ||||||||
Kleen Performance Products | 58,135 | 78,549 | (20,414 | ) | (26.0) | ||||||||
SK Environmental Services | 160,671 | 149,102 | 11,569 | 7.8 | |||||||||
Lodging Services | 15,930 | 34,285 | (18,355 | ) | (53.5) | ||||||||
Oil and Gas Field Services | 32,982 | 54,928 | (21,946 | ) | (40.0) | ||||||||
Corporate Items | (66 | ) | (1,276 | ) | 1,210 | 94.8 | |||||||
Total | 636,083 | 732,499 | (96,416 | ) | (13.2) | ||||||||
Cost of Revenues(2): | |||||||||||||
Technical Services | 174,046 | 189,540 | (15,494 | ) | (8.2) | ||||||||
Industrial and Field Services | 97,417 | 114,419 | (17,002 | ) | (14.9) | ||||||||
Kleen Performance Products | 49,374 | 78,224 | (28,850 | ) | (36.9) | ||||||||
SK Environmental Services | 98,055 | 94,530 | 3,525 | 3.7 | |||||||||
Lodging Services | 13,829 | 25,760 | (11,931 | ) | (46.3) | ||||||||
Oil and Gas Field Services | 30,201 | 47,413 | (17,212 | ) | (36.3) | ||||||||
Corporate Items | 1,357 | (3,379 | ) | 4,736 | (140.2) | ||||||||
Total | 464,279 | 546,507 | (82,228 | ) | (15.0) | ||||||||
Selling, General & Administrative Expenses: | |||||||||||||
Technical Services | 19,893 | 23,585 | (3,692 | ) | (15.7) | ||||||||
Industrial and Field Services | 14,559 | 15,657 | (1,098 | ) | (7.0) | ||||||||
Kleen Performance Products | 4,201 | 4,801 | (600 | ) | (12.5) | ||||||||
SK Environmental Services | 27,121 | 27,323 | (202 | ) | (0.7) | ||||||||
Lodging Services | 1,082 | 1,615 | (533 | ) | (33.0) | ||||||||
Oil and Gas Field Services | 4,175 | 6,112 | (1,937 | ) | (31.7) | ||||||||
Corporate Items | 33,453 | 28,622 | 4,831 | 16.9 | |||||||||
Total | 104,484 | 107,715 | (3,231 | ) | (3.0) | ||||||||
Adjusted EBITDA: | |||||||||||||
Technical Services | 60,398 | 63,401 | (3,003 | ) | (4.7) | ||||||||
Industrial and Field Services | 2,118 | 10,309 | (8,191 | ) | (79.5) | ||||||||
Kleen Performance Products | 4,560 | (4,476 | ) | 9,036 | (201.9) | ||||||||
SK Environmental Services | 35,495 | 27,249 | 8,246 | 30.3 | |||||||||
Lodging Services | 1,019 | 6,910 | (5,891 | ) | (85.3) | ||||||||
Oil and Gas Field Services | (1,394 | ) | 1,403 | (2,797 | ) | (199.4) | |||||||
Corporate Items | (34,876 | ) | (26,519 | ) | (8,357 | ) | (31.5) | ||||||
Total | $ | 67,320 | $ | 78,277 | $ | (10,957 | ) | (14.0)% |
1. | Third party revenue is revenue billed to outside customers by a particular segment. Direct revenue is revenue allocated to the segment performing the provided service. |
2. | Cost of revenue is shown exclusive of items presented separately on the statements of operations which consist of (i) accretion of environmental liabilities and (ii) depreciation and amortization. |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Direct revenues | $ | 254,337 | $ | 276,526 | $ | (22,189 | ) | (8.0 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Direct revenues | $ | 114,094 | $ | 140,385 | $ | (26,291 | ) | (18.7 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Direct revenues | $ | 58,135 | $ | 78,549 | $ | (20,414 | ) | (26.0 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Direct revenues | $ | 160,671 | $ | 149,102 | $ | 11,569 | 7.8 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Direct revenues | $ | 15,930 | $ | 34,285 | $ | (18,355 | ) | (53.5 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Direct revenues | $ | 32,982 | $ | 54,928 | $ | (21,946 | ) | (40.0 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Cost of revenues | $ | 174,046 | $ | 189,540 | $ | (15,494 | ) | (8.2 | )% | |||||
As a % of Direct Revenue | 68.4 | % | 68.5 | % | (0.1 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Cost of revenues | $ | 97,417 | $ | 114,419 | $ | (17,002 | ) | (14.9 | )% | |||||
As a % of Direct Revenue | 85.4 | % | 81.5 | % | 3.9 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Cost of revenues | $ | 49,374 | $ | 78,224 | $ | (28,850 | ) | (36.9 | )% | |||||
As a % of Direct Revenue | 84.9 | % | 99.6 | % | (14.7 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Cost of revenues | $ | 98,055 | $ | 94,530 | $ | 3,525 | 3.7 | % | ||||||
As a % of Direct Revenue | 61.0 | % | 63.4 | % | (2.4 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Cost of revenues | $ | 13,829 | $ | 25,760 | $ | (11,931 | ) | (46.3 | )% | |||||
As a % of Direct Revenue | 86.8 | % | 75.1 | % | 11.7 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Cost of revenues | $ | 30,201 | $ | 47,413 | $ | (17,212 | ) | (36.3 | )% | |||||
As a % of Direct Revenue | 91.6 | % | 86.3 | % | 5.3 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 19,893 | $ | 23,585 | $ | (3,692 | ) | (15.7 | )% | |||||
As a % of Direct Revenue | 7.8 | % | 8.5 | % | (0.7 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 14,559 | $ | 15,657 | $ | (1,098 | ) | (7.0 | )% | |||||
As a % of Direct Revenue | 12.8 | % | 11.2 | % | 1.6 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 4,201 | $ | 4,801 | $ | (600 | ) | (12.5 | )% | |||||
As a % of Direct Revenue | 7.2 | % | 6.1 | % | 1.1 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 27,121 | $ | 27,323 | $ | (202 | ) | (0.7 | )% | |||||
As a % of Direct Revenue | 16.9 | % | 18.3 | % | (1.4 | )% |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 1,082 | $ | 1,615 | $ | (533 | ) | (33.0 | )% | |||||
As a % of Direct Revenue | 6.8 | % | 4.7 | % | 2.1 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 4,175 | $ | 6,112 | $ | (1,937 | ) | (31.7 | )% | |||||
As a % of Direct Revenue | 12.7 | % | 11.1 | % | 1.6 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
SG&A | $ | 33,453 | $ | 28,622 | $ | 4,831 | 16.9 | % |
For the Three Months Ended | |||||||||||||
2016 | 2015 | $ Change | % Change | ||||||||||
Adjusted EBITDA: | |||||||||||||
Technical Services | $ | 60,398 | $ | 63,401 | $ | (3,003 | ) | (4.7)% | |||||
Industrial and Field Services | 2,118 | 10,309 | (8,191 | ) | (79.5) | ||||||||
Kleen Performance Products | 4,560 | (4,476 | ) | 9,036 | (201.9) | ||||||||
SK Environmental Services | 35,495 | 27,249 | 8,246 | 30.3 | |||||||||
Lodging Services | 1,019 | 6,910 | (5,891 | ) | (85.3) | ||||||||
Oil and Gas Field Services | (1,394 | ) | 1,403 | (2,797 | ) | (199.4) | |||||||
Corporate Items | (34,876 | ) | (26,519 | ) | (8,357 | ) | (31.5) | ||||||
Total | $ | 67,320 | $ | 78,277 | $ | (10,957 | ) | (14.0)% |
For the Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Net loss | $ | (20,871 | ) | $ | (7,089 | ) | |
Accretion of environmental liabilities | 2,505 | 2,619 | |||||
Depreciation and amortization | 68,902 | 68,356 | |||||
Other expense (income) | 350 | (409 | ) | ||||
Interest expense, net | 18,980 | 19,438 | |||||
Benefit for income taxes | (2,546 | ) | (4,638 | ) | |||
Adjusted EBITDA | $ | 67,320 | $ | 78,277 |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Depreciation of fixed assets and landfill amortization | $ | 59,341 | $ | 57,355 | $ | 1,986 | 3.5 | % | ||||||
Permits and other intangibles amortization | 9,561 | 11,001 | (1,440 | ) | (13.1 | ) | ||||||||
Total depreciation and amortization | $ | 68,902 | $ | 68,356 | $ | 546 | 0.8 | % |
For the Three Months Ended | ||||||||||||||
March 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Benefit for income taxes | $ | (2,546 | ) | $ | (4,638 | ) | $ | 2,092 | (45.1 | )% |
For the Three Months Ended | |||||||
(in thousands) | 2016 | 2015 | |||||
Net cash from operating activities | $ | 39,289 | $ | 84,777 | |||
Net cash used in investing activities | (110,013 | ) | (53,360 | ) | |||
Net cash from financing activities | 236,794 | (37,194 | ) |
(in thousands) | March 31, 2016 | December 31, 2015 | $ Change | % Change | ||||||||||
Closure and post-closure liabilities | $ | 58,090 | $ | 56,249 | $ | 1,841 | 3.3 | % | ||||||
Remedial liabilities | 131,379 | 131,992 | (613 | ) | (0.5 | ) | ||||||||
Total environmental liabilities | $ | 189,469 | $ | 188,241 | $ | 1,228 | 0.7 | % |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | |||||||||
January 1, 2016 through January 31, 2016 | 15,240 | $ | 41.68 | — | $ | 122,311,562 | |||||||
February 1, 2016 through February 29, 2016 | 1,650 | $ | 43.39 | — | $ | 122,311,562 | |||||||
March 1, 2016 through March 31, 2016 | 181,118 | $ | 47.03 | 104,200 | $ | 117,313,619 | |||||||
Total | 198,008 | $ | 46.59 | 104,200 | $ | 117,313,619 |
(1) | Includes 93,808 shares withheld by us from employees to satisfy employee tax obligations upon vesting of restricted stock units granted to our employees under our long-term equity incentive programs. |
(2) | The average price paid per share of common stock repurchased under the stock repurchase program includes the commissions paid to brokers. |
(3) | On March 13, 2015, the Company's board of directors authorized the repurchase of up to $300 million of the Company's common stock. We have funded and intend to fund the repurchases through available cash resources. The stock repurchase program authorizes us to purchase our common stock on the open market from time to time. The stock repurchases have been and will be made in a manner that complies with applicable U.S. securities laws. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, cash required for future business plans, trading volume and other conditions. We have no obligation to repurchase stock under this program and may suspend or terminate the repurchase program at any time. |
Item No. | Description | Location | ||
31.1 | Rule 13a-14a/15d-14(a) Certification of the CEO Alan S. McKim | Filed herewith | ||
31.2 | Rule 13a-14a/15d-14(a) Certification of the CFO Michael L. Battles | Filed herewith | ||
32 | Section 1350 Certifications | Filed herewith | ||
101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T: Financial statements from the quarterly report on Form 10-Q of Clean Harbors, Inc. for the quarter ended March 31, 2016, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income (Loss), (iv) Unaudited Consolidated Statements of Cash Flows, (v) Unaudited Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Unaudited Consolidated Financial Statements. | * |
* | Interactive data files are furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
CLEAN HARBORS, INC. | |||
Registrant | |||
By: | /s/ ALAN S. MCKIM | ||
Alan S. McKim | |||
Chairman and Chief Executive Officer | |||
Date: | May 4, 2016 | ||
By: | /s/ MICHAEL L. BATTLES | ||
Michael L. Battles | |||
Executive Vice President and Chief Financial Officer | |||
Date: | May 4, 2016 |
/s/ Alan S. McKim | |
Alan S. McKim | |
Chairman and Chief Executive Officer |
/s/ Michael L. Battles | |
Michael L. Battles | |
Executive Vice President and Chief Financial Officer |
By: | /s/ ALAN S. MCKIM | ||
Alan S. McKim | |||
Chairman and Chief Executive Officer | |||
Date: | May 4, 2016 | ||
By: | /s/ MICHAEL L. BATTLES | ||
Michael L. Battles | |||
Executive Vice President and Chief Financial Officer | |||
Date: | May 4, 2016 |
DOCUMENT AND ENTITY INFORMATION - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 29, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CLEAN HARBORS INC | |
Entity Central Index Key | 0000822818 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 57,552,959 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Account Receivable, allowances aggregating | $ 28,628 | $ 31,426 |
Closure and post-closure liabilities, current portion | 7,194 | 7,229 |
Remedial liabilities, current portion | $ 14,303 | $ 13,166 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 80,000,000 | 80,000,000 |
Common stock, issued shares | 57,551,188 | 57,593,201 |
Common stock, outstanding shares | 57,551,188 | 57,593,201 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Statement [Abstract] | ||
Interest income | $ 150 | $ 151 |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (20,871) | $ (7,089) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 45,837 | (77,403) |
Other comprehensive income (loss) | 45,837 | (77,403) |
Comprehensive income (loss) | $ 24,966 | $ (84,492) |
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock |
Shares Held Under Employee Participation Plan |
Additional Paid-in Capital |
Accumulated Other Comprehensive Loss |
Accumulated Earnings |
---|---|---|---|---|---|---|
Balance at beginning of period at Dec. 31, 2015 | $ 1,096,282 | $ 576 | $ (469) | $ 738,401 | $ (254,892) | $ 612,666 |
Balance beginning of period (in shares) at Dec. 31, 2015 | 57,593 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (20,871) | (20,871) | ||||
Other comprehensive income | 45,837 | 45,837 | ||||
Stock-based compensation | 2,093 | 2,093 | ||||
Issuance of restricted shares, net of shares remitted | (1,425) | $ 1 | (1,426) | |||
Issuance of restricted shares, net of shares remitted (in shares) | 62 | |||||
Repurchases of common stock | (4,998) | $ (1) | (4,997) | |||
Repurchases of common stock (in shares) | (104) | |||||
Net tax deficiency on stock based awards | (345) | (345) | ||||
Balance at end of period at Mar. 31, 2016 | $ 1,116,573 | $ 576 | $ (469) | $ 733,726 | $ (209,055) | $ 591,795 |
Balance ending of period (in shares) at Mar. 31, 2016 | 57,551 |
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'S EQUITY (PARENTHETICAL) - $ / shares |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
BASIS OF PRESENTATION |
3 Months Ended |
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Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying consolidated interim financial statements are unaudited and include the accounts of Clean Harbors, Inc. and its subsidiaries (collectively, “Clean Harbors,” the “Company” or "we") and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in the opinion of management, include all adjustments which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Management has made estimates and assumptions affecting the amounts reported in the Company's consolidated interim financial statements and accompanying footnotes, actual results could differ from those estimates and judgments. The results for interim periods are not necessarily indicative of results for the entire year or any other interim periods. The financial statements presented herein should be read in connection with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which includes the audited consolidated balance sheet as of December 31, 2015 from which the one presented herein was derived. |
SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2, "Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes in these policies or their application. Recent Accounting Pronouncements Standards implemented In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-02, Consolidation (Topic 810). The amendment provides guidance regarding amendments to the consolidation analysis. The adoption of ASU 2015-02 as of January 1, 2016 did not have an impact on the Company's consolidated financial statements. In September 2015, FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendment provides guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. This amendment eliminates the requirement to retrospectively account for those adjustments. The adoption of ASU 2015-16 as of January 1, 2016 did not have an impact on the Company's consolidated financial statements. Standards to be implemented The Company is currently evaluating the impact that the below standards to be implemented will have on the Company's consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The amendment increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). ASU 2016-08 reduces the potential for diversity in practice arising from inconsistent application of the principal versus agent guidance, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). ASU 2016-10 reduces the potential for diversity in initial application, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). |
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS 2016 Acquisition On February 3, 2016, the Company purchased an oil re-refinery facility located in Nevada from Vertex Energy, Inc. for a purchase price of $35.0 million in cash, subject to customary post-closing adjustments. The acquired facility further expands the Company's re-refinery network within its Kleen Performance Products segment. 2015 Acquisitions Thermo Fluids Inc. On April 11, 2015, the Company completed the acquisition of Heckmann Environmental Services, Inc. (“HES”) and Thermo Fluids Inc. (“TFI”), a wholly-owned subsidiary of HES. The acquisition was accomplished through a purchase by Safety-Kleen, Inc., a wholly-owned subsidiary of the Company, of all of the issued and outstanding shares of HES from Nuverra Environmental Solutions, Inc. HES is a holding company that does not conduct any operations. TFI provides environmental services, including used oil recycling, used oil filter recycling, antifreeze products, parts washers and solvent recycling, and industrial waste management services, including vacuum services, remediation, lab pack and hazardous waste management. The Company acquired TFI for a purchase price of $79.3 million. The acquisition was financed with cash on hand and expands the Company’s environmental services customer base while also complimenting the SK Environmental Services network and presence in the western United States. The amount of revenue from TFI included in the Company's results of operations for the three months ended March 31, 2016 was $7.8 million. Results of TFI since acquisition have been included within the SK Environmental Services segment. The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of April 11, 2015. The Company believes that such information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The Company has finalized the purchase accounting for the acquisition of TFI. The impact of the purchase price measurement period adjustments and related tax impacts recorded in the current period was not material to the consolidated financial statements and accordingly the effects have not been retrospectively applied. The following table summarizes the recognized amounts of assets acquired and liabilities assumed at April 11, 2015 (in thousands):
Pro forma revenue and earnings amounts on a combined basis as if TFI had been acquired on January 1, 2015 are immaterial to the consolidated financial statements of the Company since that date. Other 2015 Acquisition In December 2015, the Company acquired certain assets and assumed certain defined liabilities of a privately owned company for approximately $14.7 million in cash. That company specializes in the collection and recycling of used oil filters and was a service provider to the SK Environmental Services segment prior to the acquisition. The acquired company has been integrated into the SK Environmental Services segment. In connection with this acquisition a preliminary goodwill amount of $7.4 million was recognized. |
INVENTORIES AND SUPPLIES |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES AND SUPPLIES | INVENTORIES AND SUPPLIES Inventories and supplies consisted of the following (in thousands):
As of March 31, 2016 and December 31, 2015, other inventories consisted primarily of cleaning fluids, such as absorbents and wipers, and automotive fluids, such as windshield washer fluid and antifreeze. |
PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands):
Interest in the amount of $1.2 million and $0.2 million was capitalized to fixed assets during the three months ended March 31, 2016 and March 31, 2015, respectively. Depreciation expense, inclusive of landfill amortization was $59.3 million and $57.4 million for the three months ended March 31, 2016 and March 31, 2015, respectively. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in goodwill for the three months ended March 31, 2016 were as follows (in thousands):
The Company assesses goodwill for impairment on an annual basis as of December 31, or at an interim date when events or changes in the business environment would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company conducted the annual impairment test of goodwill for all reporting units as of December 31, 2015 and determined that no adjustment to the carrying value of goodwill for any reporting units was necessary because the fair value of each of the reporting units exceeded that reporting unit's respective carrying value. The Company's next annual impairment assessment will be performed as of December 31, 2016 unless indicators arise that would require the Company to re-evaluate at an earlier date. As of March 31, 2016 and December 31, 2015, the Company's finite-lived and indefinite-lived intangible assets consisted of the following (in thousands):
Amortization expense of permits and other intangible assets was $9.6 million and $11.0 million for the three months ended March 31, 2016 and March 31, 2015, respectively. The expected amortization of the net carrying amount of finite-lived intangible assets at March 31, 2016 was as follows (in thousands):
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ACCRUED EXPENSES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following at March 31, 2016 and December 31, 2015 (in thousands):
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CLOSURE AND POST-CLOSURE LIABILITIES |
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLOSURE AND POST-CLOSURE LIABILITIES | CLOSURE AND POST-CLOSURE LIABILITIES The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, 2016 through March 31, 2016 were as follows (in thousands):
All of the landfill facilities included in the above were active as of March 31, 2016. There were no significant charges (benefits) in 2016 resulting from changes in estimates for closure and post-closure liabilities. New asset retirement obligations incurred during the first three months of 2016 were discounted at the credit-adjusted risk-free rate of 6.23%. |
REMEDIAL LIABILITIES |
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Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REMEDIAL LIABILITIES | REMEDIAL LIABILITIES The changes to remedial liabilities for the three months ended March 31, 2016 were as follows (in thousands):
In the three months ended March 31, 2016 there were no significant charges (benefits) resulting from changes in estimates for remedial liabilities. |
FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The following table is a summary of the Company’s financing arrangements (in thousands):
At March 31, 2016 and December 31, 2015, the fair value of the Company's 2020 Notes was $814.0 million and $812.0 million, respectively, based on quoted market prices for the instrument. The fair value of the 2020 Notes is considered a Level 2 measure according to the fair value hierarchy. On March 14, 2016, the Company issued through a private placement $250.0 million aggregate principal amount as additional notes under the indenture pursuant to which the Company previously issued on December 7, 2012, through a private placement $600.0 million aggregate principal amount of 5.125% senior unsecured notes due 2021 ("2021 Notes"). Interest payments are fixed semi-annually on June 1 and December 1 of each year. At March 31, 2016 and December 31, 2015, the fair value of the Company's 2021 Notes was $853.5 million and $599.5 million, respectively, based on quoted market prices for the instrument. The fair value of the 2021 Notes is considered a Level 2 measure according to the fair value hierarchy. The Company also maintains a revolving credit facility which as of March 31, 2016 and December 31, 2015 had no outstanding loan balances. At March 31, 2016, $156.4 million was available to borrow and outstanding letters of credit were $145.2 million. At December 31, 2015, $178.5 million was available to borrow and outstanding letters of credit were $144.6 million. The revolving credit facility is guaranteed by all of Clean Harbors, Inc.'s (the "Parent's") domestic subsidiaries and secured by substantially all of the Parent’s and its domestic subsidiaries’ assets. Available credit for the Parent and its domestic subsidiaries is limited to 85% of their eligible accounts receivable and 100% of their cash deposited in a controlled account with the agent. Available credit for Parent’s Canadian subsidiaries is limited to 85% of their eligible accounts receivable and 100% of their cash deposited in a controlled account with the agent’s Canadian affiliate. The obligations of the Canadian subsidiaries under the revolving credit facility are guaranteed by all of Parent’s Canadian subsidiaries and secured by the accounts receivable of the Canadian subsidiaries, but the Canadian subsidiaries do not guarantee and are not otherwise responsible for the obligations of Parent or its domestic subsidiaries. |
LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOSS PER SHARE | LOSS PER SHARE The following are computations of basic and diluted loss per share (in thousands except for per share amounts):
As a result of the net loss reported for the three months ended March 31, 2016 and 2015, all then outstanding stock options, restricted stock awards and performance awards totaling 474,318 and 539,983, respectively, were excluded from the calculation of diluted loss per share as their inclusion would have an antidilutive effect. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component and related tax effects for the three months ended March 31, 2016 were as follows (in thousands):
There were no reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 and 2015. |
STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Total stock-based compensation cost charged to selling, general and administrative expenses for the three months ended March 31, 2016 and March 31, 2015 was $2.1 million and $1.8 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation was $0.5 million for each of the three months ended March 31, 2016 and March 31, 2015. Restricted Stock Awards The following information relates to restricted stock awards that have been granted to employees and directors under the Company's equity incentive plans (the "Plans"). The restricted stock awards are not transferable until vested and the restrictions generally lapse upon the achievement of continued employment over a three-to-five-year period or service as a director until the following annual meeting of shareholders. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant and is amortized to expense over its vesting period. The following table summarizes information about restricted stock awards for the three months ended March 31, 2016:
As of March 31, 2016, there was $12.4 million of total unrecognized compensation cost arising from restricted stock awards under the Company's Plans. This cost is expected to be recognized over a weighted average period of 2.9 years. The total fair value of restricted stock vested during the three months ended March 31, 2016 and March 31, 2015 was $3.8 million and $3.2 million, respectively. Performance Stock Awards The following information relates to performance stock awards that have been granted to employees under the Company's Plans. Performance stock awards are subject to performance criteria established by the compensation committee of the Company's board of directors prior to or at the date of grant. The vesting of the performance stock awards is based on achieving such targets typically based on revenue, Adjusted EBITDA margin, return on invested capital percentage and Total Recordable Incident Rate. In addition, performance stock awards include continued service conditions. The fair value of each performance stock award is based on the closing price of the Company's common stock on the date of grant and is amortized to expense over the service period if achievement of performance measures is considered probable. The following table summarizes information about performance stock awards for the three months ended March 31, 2016:
As of March 31, 2016, there was $0.6 million of total unrecognized compensation cost arising from unvested performance stock awards deemed probable of vesting under the Company's Plans. The total fair value of performance awards vested during the three months ended March 31, 2016 and March 31, 2015 was $0.4 million and $0.3 million, respectively. Common Stock Repurchases On March 13, 2015, the Company's board of directors authorized the repurchase of up to $300 million of the Company's common stock. During the three months ended March 31, 2016, the Company repurchased and retired a total of 0.1 million shares of the Company's common stock for a total cost of $5.0 million. Through March 31, 2016, the Company has repurchased and retired a total of 3.5 million shares of the Company's common stock for a total cost of $182.7 million under this program. As of March 31, 2016, an additional $117.3 million remains available for repurchase of shares under the current authorized program. |
COMMITMENTS AND CONTINGENCIES |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal and Administrative Proceedings The Company and its subsidiaries are subject to legal proceedings and claims arising in the ordinary course of business. Actions filed against the Company arise from commercial and employment-related claims including alleged class actions related to sales practices and wage and hour claims. The plaintiffs in these actions may be seeking damages or injunctive relief or both. These actions are in various jurisdictions and stages of proceedings, and some are covered in part by insurance. In addition, the Company’s waste management services operations are regulated by federal, state, provincial and local laws enacted to regulate discharge of materials into the environment, remediation of contaminated soil and groundwater or otherwise protect the environment. This ongoing regulation results in the Company frequently becoming a party to legal or administrative proceedings involving all levels of governmental authorities and other interested parties. The issues involved in such proceedings generally relate to alleged violations of existing permits and licenses or alleged responsibility under federal or state Superfund laws to remediate contamination at properties owned either by the Company or by other parties (“third party sites”) to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. At March 31, 2016 and December 31, 2015, the Company had recorded reserves of $20.9 million and $21.9 million, respectively, in the Company's financial statements for actual or probable liabilities related to the legal and administrative proceedings in which the Company was then involved, the principal of which are described below. At March 31, 2016 and December 31, 2015, the Company also believed that it was reasonably possible that the amount of these potential liabilities could be as much as $1.8 million and $1.9 million more, respectively. The Company periodically adjusts the aggregate amount of these reserves when actual or probable liabilities are paid or otherwise discharged, new claims arise, or additional relevant information about existing or probable claims becomes available. As of March 31, 2016 and December 31, 2015, the $20.9 million and $21.9 million, respectively, of reserves consisted of (i) $18.7 million and $18.9 million, respectively, related to pending legal or administrative proceedings, including Superfund liabilities, which were included in remedial liabilities on the consolidated balance sheets, and (ii) $2.2 million and $3.0 million, respectively, primarily related to federal, state and provincial enforcement actions, which were included in accrued expenses on the consolidated balance sheets. As of March 31, 2016, the principal legal and administrative proceedings in which the Company was involved, or which had been terminated during 2016, were as follows: Ville Mercier. In September 2002, the Company acquired the stock of a subsidiary (the "Mercier Subsidiary") which owns a hazardous waste incinerator in Ville Mercier, Quebec (the "Mercier Facility"). The property adjacent to the Mercier Facility, which is also owned by the Mercier Subsidiary, is now contaminated as a result of actions dating back to 1968, when the Government of Quebec issued to a company unrelated to the Mercier Subsidiary two permits to dump organic liquids into lagoons on the property. In 1999, Ville Mercier and three neighboring municipalities filed separate legal proceedings against the Mercier Subsidiary and the Government of Quebec. In 2012, the municipalities amended their existing statement of claim to seek $2.9 million (Cdn) in general damages and $10.0 million (Cdn) in punitive damages, plus interest and costs, as well as injunctive relief. Both the Government of Quebec and the Company have filed summary judgment motions against the municipalities. The parties are currently attempting to negotiate a resolution and hearings on the motions have been delayed. In September 2007, the Quebec Minister of Sustainable Development, Environment and Parks issued a Notice pursuant to Section 115.1 of the Environment Quality Act, superseding Notices issued in 1992, which are the subject of the pending litigation. The more recent Notice notifies the Mercier Subsidiary that, if the Mercier Subsidiary does not take certain remedial measures at the site, the Minister intends to undertake those measures at the site and claim direct and indirect costs related to such measures. The Company has accrued for costs expected to be incurred relative to the resolution of this matter and believes this matter will not have a future material effect on its financial position or results of operations. Safety-Kleen Legal Proceedings. On December 28, 2012, the Company acquired Safety-Kleen, Inc. ("Safety-Kleen") and thereby became subject to the legal proceedings in which Safety-Kleen was a party on that date. In addition to certain Superfund proceedings in which Safety-Kleen has been named as a potentially responsible party as described below under “Superfund Proceedings,” the principal such legal proceedings involving Safety-Kleen which were outstanding as of March 31, 2016 were as follows: Product Liability Cases. Safety-Kleen is named as a defendant in various lawsuits that are currently pending in various courts and jurisdictions throughout the United States, including approximately 60 proceedings (excluding cases which have been settled but not formally dismissed) as of March 31, 2016, wherein persons claim personal injury resulting from the use of Safety-Kleen's parts cleaning equipment or cleaning products. These proceedings typically involve allegations that the solvent used in Safety-Kleen's parts cleaning equipment contains contaminants and/or that Safety-Kleen's recycling process does not effectively remove the contaminants that become entrained in the solvent during their use. In addition, certain claimants assert that Safety-Kleen failed to warn adequately the product user of potential risks, including an historic failure to warn that solvent contains trace amounts of toxic or hazardous substances such as benzene. Safety-Kleen maintains insurance that it believes will provide coverage for these claims (over amounts accrued for self-insured retentions and deductibles in certain limited cases), except for punitive damages to the extent not insurable under state law or excluded from insurance coverage. Safety-Kleen believes that these claims lack merit and has historically vigorously defended, and intends to continue to vigorously defend, itself and the safety of its products against all of these claims. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Consequently, Safety-Kleen is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of March 31, 2016. From January 1, 2016 to March 31, 2016, nine product liability claims were settled or dismissed. Due to the nature of these claims and the related insurance, the Company did not incur any expense as Safety-Kleen's insurance provided coverage in full for all such claims. Safety-Kleen may be named in similar, additional lawsuits in the future, including claims for which insurance coverage may not be available. Superfund Proceedings The Company has been notified that either the Company (which, since December 28, 2012, includes Safety-Kleen) or the prior owners of certain of the Company's facilities for which the Company may have certain indemnification obligations have been identified as potentially responsible parties ("PRPs") or potential PRPs in connection with 129 sites which are subject to or are proposed to become subject to proceedings under federal or state Superfund laws. Of the 129 sites, two (the Wichita Facility and the BR Facility described below) involve facilities that are now owned by the Company and 127 involve third party sites to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. Of the 127 third party sites, 32 are now settled, 17 are currently requiring expenditures on remediation and 78 are not currently requiring expenditures on remediation. In connection with each site, the Company has estimated the extent, if any, to which it may be subject, either directly or as a result of any indemnification obligations, for cleanup and remediation costs, related legal and consulting costs associated with PRP investigations, settlements, and related legal and administrative proceedings. The amount of such actual and potential liability is inherently difficult to estimate because of, among other relevant factors, uncertainties as to the legal liability (if any) of the Company or the prior owners of certain of the Company's facilities to contribute a portion of the cleanup costs, the assumptions that must be made in calculating the estimated cost and timing of remediation, the identification of other PRPs and their respective capability and obligation to contribute to remediation efforts, and the existence and legal standing of indemnification agreements (if any) with prior owners, which may either benefit the Company or subject the Company to potential indemnification obligations. In addition to the Wichita Property and the BR Facility, Clean Harbors believes its potential liability could exceed $100,000 at 13 of the 127 third party sites. Wichita Property. The Company acquired in 2002 as part of the CSD assets a service center located in Wichita, Kansas (the "Wichita Property"). The Wichita Property is one of several properties located within the boundaries of a 1,400 acre state-designated Superfund site in an old industrial section of Wichita known as the North Industrial Corridor Site. Along with numerous other PRPs, the former owner executed a consent decree relating to such site with the U.S. Environmental Protection Agency (the "EPA"), and the Company is continuing an ongoing remediation program for the Wichita Property in accordance with that consent decree. The Company also acquired rights under an indemnification agreement between the former owner and an earlier owner of the Wichita Property. The Company filed suit against the earlier owner in July of 2015 to recover costs incurred during the cleanup of the property. BR Facility. The Company acquired in 2002 a former hazardous waste incinerator and landfill in Baton Rouge (the "BR Facility"), for which operations had been previously discontinued by the prior owner. In September 2007, the EPA issued a special notice letter to the Company related to the Devil's Swamp Lake Site ("Devil's Swamp") in East Baton Rouge Parish, Louisiana. Devil's Swamp includes a lake located downstream of an outfall ditch where wastewater and stormwater have been discharged, and Devil's Swamp is proposed to be included on the National Priorities List due to the presence of Contaminants of Concern ("COC") cited by the EPA. These COCs include substances of the kind found in wastewater and storm water discharged from the BR Facility in past operations. The EPA originally requested COC generators to submit a good faith offer to conduct a remedial investigation feasibility study directed towards the eventual remediation of the site. The Company is currently performing corrective actions at the BR Facility under an order issued by the Louisiana Department of Environmental Quality, and has begun conducting the remedial investigation and feasibility study under an order issued by the EPA. The Company cannot presently estimate the potential additional liability for the Devil's Swamp cleanup until a final remedy is selected by the EPA. Third Party Sites. Of the 127 third party sites at which the Company has been notified it is a PRP or potential PRP or may have indemnification obligations, Clean Harbors has an indemnification agreement at 11 of these sites with ChemWaste, a former subsidiary of Waste Management, Inc., and at six additional of these third party sites, Safety-Kleen has a similar indemnification agreement with McKesson Corporation. These agreements indemnify the Company (which now includes Safety-Kleen) with respect to any liability at the 17 sites for waste disposed prior to the Company's (or Safety-Kleen's) acquisition of the former subsidiaries of Waste Management or McKesson which had shipped wastes to those sites. Accordingly, Waste Management or McKesson are paying all costs of defending those subsidiaries in those 17 cases, including legal fees and settlement costs. However, there can be no guarantee that the Company's ultimate liabilities for those sites will not exceed the amount recorded or that indemnities applicable to any of these sites will be available to pay all or a portion of related costs. Except for the indemnification agreements which the Company holds from ChemWaste and McKesson, the Company does not have an indemnity agreement with respect to any of the 127 third party sites discussed above. Federal, State and Provincial Enforcement Actions From time to time, the Company pays fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. As of March 31, 2016 and December 31, 2015, there were five and six proceedings, respectively, for which the Company reasonably believed that the sanctions could equal or exceed $100,000. The Company believes that the fines or other penalties in these or any of the other regulatory proceedings will, individually or in the aggregate, not have a material effect on its financial condition, results of operations or cash flows. |
INCOME TAXES |
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Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company records a tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized and the income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. The estimated annual effective tax rate may be significantly impacted by projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised. The Company's effective tax rate for the three months ended March 31, 2016 was 10.9% compared to 39.5% for the same period in 2015. The decrease in the effective rates for the three months ended March 31, 2016 is primarily due to not recognizing income tax benefits from current operating losses related to certain Canadian entities. As of March 31, 2016 and December 31, 2015, the Company had recorded $2.1 million of liabilities for unrecognized tax benefits and $0.4 million of interest, respectively. Due to expiring statute of limitation periods, the Company believes that total unrecognized tax benefits will decrease by approximately $0.5 million within the next 12 months. This is the result of a pre-acquisition audit settlement for one of our foreign entities. |
SEGMENT REPORTING |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING Segment reporting is prepared on the same basis that the Company's chief executive officer, who is the Company's chief operating decision maker, manages the business, makes operating decisions and assesses performance. As of March 31, 2016, the Company's operations were managed in six reportable segments based primarily upon the nature of the various operations and services provided: Technical Services, Industrial and Field Services which consists of the Industrial Services and Field Services operating segments, Kleen Performance Products, SK Environmental Services, Lodging Services and Oil and Gas Field Services. Third party revenue is revenue billed to outside customers by a particular segment. Direct revenue is revenue allocated to the segment providing the product or service. Intersegment revenues represent the sharing of third party revenues among the segments based on products and services provided by each segment as if the products and services were sold directly to the third party. The intersegment revenues are shown net. The negative intersegment revenues are due to more transfers out of customer revenues to other segments than transfers in of customer revenues from other segments. The operations not managed through the Company’s six reportable segments are recorded as “Corporate Items.” Corporate Items revenues consist of two different operations for which the revenues are insignificant. Corporate Items cost of revenues represents certain central services that are not allocated to the six segments for internal reporting purposes. Corporate Items selling, general and administrative expenses include typical corporate items such as legal, accounting and other items of a general corporate nature that are not allocated to the Company’s six reportable segments. Performance of the segments is evaluated on several factors, of which the primary financial measure is “Adjusted EBITDA,” which consists of net loss plus accretion of environmental liabilities, depreciation and amortization, net interest expense, benefit for income taxes, other non-cash charges not deemed representative of fundamental segment results and excludes other expense (income). Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. The following table reconciles third party revenues to direct revenues for the three months ended March 31, 2016 and 2015 (in thousands):
The following table presents Adjusted EBITDA information used by management by reported segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, other non-cash charges not deemed representative of fundamental segment results, and other expense (income) to its segments.
The following table presents certain assets by reportable segment and in the aggregate (in thousands):
The following table presents total assets by geographical area (in thousands):
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GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Subsidiaries Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION The 2020 Notes and the 2021 Notes are guaranteed by substantially all of the Company's subsidiaries organized in the United States. Each guarantor for the 2020 Notes and the 2021 Notes is a 100% owned subsidiary of Clean Harbors, Inc. and its guarantee is both full and unconditional and joint and several. The guarantees, are however, subject to customary release provisions under which, in particular, the guarantee of any of our domestic restricted subsidiaries will be released if we sell such subsidiary to an unrelated third party in accordance with the terms of the indenture which governs the notes. The 2020 Notes and the 2021 Notes are not guaranteed by the Company’s Canadian or other foreign subsidiaries. The following presents supplemental condensed consolidating financial information for the parent company, the guarantor subsidiaries and the non-guarantor subsidiaries, respectively. As discussed further in Note 10, “Financing Arrangements,” to our consolidated financial statements included herein, during the three months ended March 31, 2016, the Parent Company issued through a private placement $250.0 million aggregate principal amount as additional notes under the 2021 Notes. In connection with this offering the proceeds were then transferred to the US Guarantor Subsidiaries and are reflected as an investment to the Parent Company in the US Guarantor subsidiaries for the period ending March 31, 2016. Following is the condensed consolidating balance sheet at March 31, 2016 (in thousands):
Following is the condensed consolidating balance sheet at December 31, 2015 (in thousands):
Following is the consolidating statement of operations for the three months ended March 31, 2016 (in thousands):
Following is the consolidating statement of operations for the three months ended March 31, 2015 (in thousands):
Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2016 (in thousands):
Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2015 (in thousands):
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 30, 2016, the Company purchased two blending and packaging plants and related assets in New Orleans, Louisiana and Brampton, Ontario. The results of the acquired company will be included in the Kleen Performance Products Segment. |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standards implemented In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-02, Consolidation (Topic 810). The amendment provides guidance regarding amendments to the consolidation analysis. The adoption of ASU 2015-02 as of January 1, 2016 did not have an impact on the Company's consolidated financial statements. In September 2015, FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendment provides guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. This amendment eliminates the requirement to retrospectively account for those adjustments. The adoption of ASU 2015-16 as of January 1, 2016 did not have an impact on the Company's consolidated financial statements. Standards to be implemented The Company is currently evaluating the impact that the below standards to be implemented will have on the Company's consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The amendment increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). ASU 2016-08 reduces the potential for diversity in practice arising from inconsistent application of the principal versus agent guidance, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). ASU 2016-10 reduces the potential for diversity in initial application, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). |
BUSINESS COMBINATIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the recognized amounts of assets acquired and liabilities assumed at April 11, 2015 (in thousands):
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INVENTORIES AND SUPPLIES (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories and supplies consisted of the following (in thousands):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands):
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes to goodwill | The changes in goodwill for the three months ended March 31, 2016 were as follows (in thousands):
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Summary of amortizable other intangible assets | As of March 31, 2016 and December 31, 2015, the Company's finite-lived and indefinite-lived intangible assets consisted of the following (in thousands):
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Schedule of expected amortization for the net carrying amount of finite lived intangible assets | The expected amortization of the net carrying amount of finite-lived intangible assets at March 31, 2016 was as follows (in thousands):
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ACCRUED EXPENSES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses | Accrued expenses consisted of the following at March 31, 2016 and December 31, 2015 (in thousands):
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CLOSURE AND POST-CLOSURE LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of closure and post-closure liabilities | The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, 2016 through March 31, 2016 were as follows (in thousands):
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REMEDIAL LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes to remedial liabilities | The changes to remedial liabilities for the three months ended March 31, 2016 were as follows (in thousands):
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FINANCING ARRANGEMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the entity's financial arrangements | The following table is a summary of the Company’s financing arrangements (in thousands):
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LOSS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of basic and diluted earnings per share computations | The following are computations of basic and diluted loss per share (in thousands except for per share amounts):
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss | The changes in accumulated other comprehensive loss by component and related tax effects for the three months ended March 31, 2016 were as follows (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of total number, weighted-average grant-date fair value, and types of awards granted | The following table summarizes information about restricted stock awards for the three months ended March 31, 2016:
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Summary of performance stock awards | The following table summarizes information about performance stock awards for the three months ended March 31, 2016:
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SEGMENT REPORTING (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of third party revenues to direct revenues | The following table reconciles third party revenues to direct revenues for the three months ended March 31, 2016 and 2015 (in thousands):
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Reconciliation to consolidated statements of income to adjusted EBITDA | The following table presents Adjusted EBITDA information used by management by reported segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, other non-cash charges not deemed representative of fundamental segment results, and other expense (income) to its segments.
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PP&E, intangible assets and total assets by segment | The following table presents certain assets by reportable segment and in the aggregate (in thousands):
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Total assets by geographical area | The following table presents total assets by geographical area (in thousands):
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GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Subsidiaries Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheet | Following is the condensed consolidating balance sheet at March 31, 2016 (in thousands):
Following is the condensed consolidating balance sheet at December 31, 2015 (in thousands):
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Schedule of consolidating statement of income | Following is the consolidating statement of operations for the three months ended March 31, 2016 (in thousands):
Following is the consolidating statement of operations for the three months ended March 31, 2015 (in thousands):
|
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Schedule of condensed consolidating statement of cash flows | Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2016 (in thousands):
Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2015 (in thousands):
|
BUSINESS COMBINATIONS (Narrative) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Feb. 03, 2016 |
Apr. 11, 2015 |
Dec. 31, 2015 |
Mar. 31, 2016 |
|
Nevada Rerefinery Facility | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 35.0 | |||
Thermo Fluids Inc. | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 79.3 | |||
TFI's revenues included in the Company's results of operations | $ 7.8 | |||
Privately Owned Domestic Company | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 14.7 | |||
Goodwill, acquired during period | $ 7.4 |
INVENTORIES AND SUPPLIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Oil and oil products | $ 36,196 | $ 33,603 |
Supplies and drums | 79,035 | 78,132 |
Solvent and solutions | 9,026 | 8,868 |
Modular camp accommodations | 15,438 | 15,126 |
Other | 15,073 | 13,792 |
Total inventories and supplies | $ 154,768 | $ 149,521 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of permits and other intangible assets | $ 9.6 | $ 11.0 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Expected Future Amortization) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 (nine months) | $ 29,251 | |
2017 | 33,936 | |
2018 | 31,156 | |
2019 | 28,438 | |
2020 | 25,719 | |
Thereafter | 231,074 | |
Net | $ 379,574 | $ 384,492 |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Insurance | $ 54,999 | $ 55,899 |
Interest | 21,864 | 20,500 |
Accrued compensation and benefits | 40,690 | 35,646 |
Income, real estate, sales and other taxes | 36,103 | 37,095 |
Other | 37,936 | 44,520 |
Total accrued expenses | $ 191,592 | $ 193,660 |
LOSS PER SHARE (Computation of Basic and Diluted Earnings Per Share)(Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Numerator for basic and diluted earnings per share: | ||
Net loss | $ (20,871) | $ (7,089) |
Denominator: | ||
Basic shares outstanding | 57,617 | 58,875 |
Dilutive shares outstanding | 57,617 | 58,875 |
Basic loss per share (in USD per share) | $ (0.36) | $ (0.12) |
Diluted loss per share (in USD per share) | $ (0.36) | $ (0.12) |
LOSS PER SHARE (Narrative) (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Shares excluded from computation of earning per share (in shares) | 474,318 | 539,983 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Amount Reclassified Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Equity [Abstract] | ||
Reclassifications out of accumulated other comprehensive income | $ 0 | $ 0 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Effective tax rates | 10.90% | 39.50% | |
Unrecognized tax benefits | $ 2.1 | $ 2.1 | |
Interest on unrecognized tax benefits | 0.4 | $ 0.4 | |
Decrease in unrecognized tax benefits expected in next 12 months | $ 0.5 |
SEGMENT REPORTING (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 6 |
Number of operations not managed by reportable segments | 2 |
SEGMENT REPORTING (Total Assets by Geographical Area) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 3,641,675 | $ 3,431,428 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 2,783,892 | 2,575,746 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 853,112 | 851,949 |
Other foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 4,671 | $ 3,733 |
GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Narrative) (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 14, 2016 |
Dec. 07, 2012 |
|
Guarantor and Non-Guarantor Subsidiaries Financial Information [Abstract] | |||
Subsidiary or equity method investee, cumulative percentage ownership after all transactions | 100.00% | ||
Unsecured senior notes 2021 | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Issuance of debt | $ 250,000,000.0 | $ 250,000,000.0 | $ 600,000,000.0 |
SUBSEQUENT EVENTS Narrative (Details) |
Apr. 30, 2016
plant
|
---|---|
Blending and Packaging Plants | Subsequent Event | |
Subsequent Event [Line Items] | |
Number of plants acquired | 2 |
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