-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DxFv8pjsx08RsKMc9/k+1Fp91JEkWQpp4aXydnT3o6vzuuCZa7ZFIA3FLRd7PQOF 0BcUy22DB4ZYkDi7TG1umQ== 0001104659-07-018852.txt : 20070314 0001104659-07-018852.hdr.sgml : 20070314 20070314084605 ACCESSION NUMBER: 0001104659-07-018852 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070314 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070314 DATE AS OF CHANGE: 20070314 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLEAN HARBORS INC CENTRAL INDEX KEY: 0000822818 STANDARD INDUSTRIAL CLASSIFICATION: HAZARDOUS WASTE MANAGEMENT [4955] IRS NUMBER: 042997780 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16379 FILM NUMBER: 07692264 BUSINESS ADDRESS: STREET 1: 1501 WASHINGTON ST STREET 2: 325 WOOD RD CITY: BRAINTREE STATE: MA ZIP: 02184 BUSINESS PHONE: 6178491800 MAIL ADDRESS: STREET 1: PO BOX 327 STREET 2: 325 WOOD ROAD CITY: BRAINTREE STATE: MA ZIP: 02184 8-K 1 a07-8033_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March 14, 2007

CLEAN HARBORS, INC.

(Exact name of registrant as specified in its charter)

Massachusetts

 

0-16379

 

04-2997780

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

42 Longwater Drive, Norwell,

 

 

Massachusetts

 

02061-9149

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (781) 792-5000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




 

Item 2.02                Results of Operations and Financial Condition

On March 14, 2007, Clean Harbors, Inc. (“the Company”) issued a press release announcing the Company’s results of operations for the year ended December 31, 2006.  A copy of that press release is furnished with this report as Exhibit 99.1.

Item 9.01        Financial Statements and Exhibits

99.1

 

Press Release dated March 14, 2007

 

 

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Clean Harbors, Inc.

 

(Registrant)

 

 

March 14, 2007

/s/ James M. Rutledge

 

Executive Vice President and

 

Chief Financial Officer

 

2



EX-99.1 2 a07-8033_1ex99d1.htm EX-99.1

 

Exhibit 99.1

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

Strong Demand for Technical Services Drives 20% Top-Line Growth

Norwell, MA — March 14, 2007 Clean Harbors, Inc. (“Clean Harbors”) (NASDAQ: CLHB), the leading provider of environmental and hazardous waste management services throughout North America, today announced financial results for the fourth quarter and full year ended December 31, 2006.

Clean Harbors increased revenues by approximately 20 percent to $231.8 million in the fourth quarter of 2006 from $193.7 million in the fourth quarter of 2005.  Income from operations grew to $19.8 million from $14.3 million for the fourth quarter of 2005.  EBITDA grew by approximately 31 percent to $31.4 million from $23.9 million for the fourth quarter of 2005.  See below for a description of EBITDA and a reconciliation to GAAP results.

Net income attributable to common shareholders rose to $11.4 million, or $0.56 per diluted share, from $7.9 million, or $0.43 per diluted share, in the same period of 2005.

Comments on the Fourth Quarter

“The fourth quarter of 2006 was a strong conclusion to the best year in Clean Harbors’ history,” said Alan S. McKim, Chairman and Chief Executive Officer.  “With solid demand across our business lines and good weather, we delivered quarterly revenue in excess of $200 million for the second consecutive quarter, exclusive of any revenue attributed to Teris, which we acquired in August.”

“Organic growth in the fourth quarter was primarily driven by our Technical Services business, which continued to perform large facilities projects,” McKim said.  “Incineration volumes were strong, and we achieved utilization of 91 percent, despite the addition of significant capacity earlier in the year.  Reflecting increased activity in both the United States and Canada, total landfill volumes were nearly 30 percent higher than in the same period in 2005.”

“In Site Services, we continued our steady geographic expansion with the opening of another branch in southern Florida,” said McKim.  “We did not have any major emergency response events in the quarter, unlike the fourth quarter of 2005 when we posted more than $17 million of higher margin revenue related to post-hurricane clean-up projects.  Consequently, our Site Services margins were down, even though we generated a steady stream of small scale projects that produced approximately $7 million in revenue in the quarter.”

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

Comments on Full-Year 2006

Revenues for the year ended December 31, 2006 increased nearly 17 percent to $829.8 million, compared with $711.2 million for full-year 2005.  Income from operations for full-year 2006 increased 45 percent to $74.4 million versus $51.3 million in the prior year.  EBITDA (see description below) for 2006 increased 33 percent to $119.9 million from $90.3 million for 2005.

The Company generated net income attributable to common shareholders of $46.4 million, or $2.26 per diluted share, for the full-year 2006.  This compares with a 2005 net income attributable to common shareholders of $25.3 million, or $1.45 per diluted share.

“The year 2006 was outstanding for Clean Harbors both financially and operationally,” McKim said.  “We added substantial incineration capacity, constructed several secure landfill cells, upgraded numerous facilities, expanded our transportation fleet, and exceeded our Health, Safety & Compliance targets.  In support of our successful strategy of introducing the Clean Harbors brand into new markets and expanding our footprint, we opened six new Site Services locations in 2006.  These initiatives enabled us to post the largest organic increase in revenues in the Company’s history.”

“At the same time, we successfully completed the Teris acquisition, which will broaden our service offerings and improve our ability to service our customers,” said McKim.  “Although Teris is still ramping up, it turned in an exemplary month in December.  We also met our goal of Teris being accretive in the fourth quarter and we expect to see continued improvement throughout 2007.”

“We successfully drove annual top-line growth, while continuing to closely manage our operating costs and environmental liabilities, as well as improve our operating efficiencies,” McKim said.  “As a result, net income grew substantially from 2005 and EBITDA grew by approximately 33 percent.”

Non-GAAP Fourth-Quarter and Full-Year Results

Clean Harbors reports EBITDA results, which are non-GAAP financial measures, as a complement to results provided in accordance with accounting principles generally accepted in the United States (GAAP) and believes that such information provides additional useful information to investors since the Company’s loan covenants are based upon levels of EBITDA achieved.  The Company defines EBITDA in accordance with its outstanding credit agreement, as described in the following reconciliation showing the differences between reported net income and EBITDA for 2006 and 2005 (in thousands):

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

 

 

For the three months ended:

 

For the year ended:

 

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

11,493

 

$

7,952

 

$

46,675

 

$

25,621

 

Accretion of environmental liabilities

 

2,587

 

2,501

 

10,220

 

10,384

 

Depreciation and amortization

 

9,043

 

7,116

 

35,339

 

28,633

 

Loss on early extinguishment of debt

 

239

 

 

8,529

 

 

Interest expense, net

 

3,144

 

4,963

 

12,447

 

22,754

 

Provision for income taxes

 

4,760

 

1,595

 

6,339

 

3,495

 

Other (income) expense

 

174

 

(184

)

447

 

(611

)

Equity interest in joint venture

 

(50

)

 

(61

)

 

EBITDA

 

$

31,390

 

$

23,943

 

$

119,935

 

$

90,276

 

Business Outlook and Financial Guidance

“We expect 2007 to be another year of solid demand for Clean Harbors services,” McKim said.  “Volumes at  our incinerators are strong, utilization rates are high, and we anticipate that we will continue to benefit from increased outsourcing trends from customers with captive incinerators.  We have already taken several strategic steps to position the Company for further growth in 2007.  In January, we acquired the remaining 50 percent interest of Teris’ joint venture in Puerto Rico, Ensco Caribe.  This represents an exciting opportunity to provide our full range of environmental services to businesses across Puerto Rico and the Caribbean under our new subsidiary, Clean Harbors Caribe Inc.  We also announced a price increase across all service lines effective March 15, which should counter rising operating costs and support our growth in the second quarter and beyond.”

The first quarter is traditionally the slowest quarter of the year for Clean Harbors due to the effect of weather on the Company’s plants and customers’ operations.  For the first quarter of 2007, the Company expects revenue in the range of $200 million to $205 million.  The Company expects to generate EBITDA for the first quarter of 2007 in the range of $22 million to $25 million.  For 2007, the Company expects to increase revenues by 8 percent to 9 percent, and achieve EBITDA growth in the range of 12 percent to 13 percent.

Conference Call Information

Clean Harbors will conduct a conference call for investors to discuss the information contained in this press release today, Wednesday, March 14, 2007 at 9:00 a.m. (ET).  Investors who want to hear a webcast of the call should log onto www.cleanharbors.com and select “Investor Relations.”  In addition, if you are unable to listen to the live webcast, the call will be archived on the investor section of the website.

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

Those who wish to listen to the fourth-quarter and year-end 2006 conference call webcast should visit the Investor Relations section of the Company’s website at www.cleanharbors.com.  The live call also can be accessed by dialing 800.395.0708 or 913.981.5560 (confirmation code: 2469747) prior to the start of the call.  If you are unable to listen to the live call, the webcast will be archived on the Company’s website.

About Clean Harbors, Inc.

Clean Harbors, Inc. is North America’s leading provider of environmental and hazardous waste management services.  With an unmatched infrastructure of 49 waste management facilities, including nine landfills, six incineration locations and six wastewater treatment centers, the Company provides essential services to over 45,000 customers, including more than 325 Fortune 500 companies, thousands of smaller private entities and numerous federal, state and local governmental agencies.  Headquartered in Norwell, Massachusetts, Clean Harbors has more than 100 locations strategically positioned throughout North America in 36 U.S. states, six Canadian provinces, Mexico and Puerto Rico.  For more information, visit www.cleanharbors.com.

Safe Harbor Statement

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties.  These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof.  The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its various filings with the Securities and Exchange Commission.  Furthermore, all financial information in this press release is based on preliminary data and is subject to the final closing of the Company’s books and records.

A variety of factors beyond the control of the Company may affect the Company’s performance, including, but not limited to:

·                  The Company’s ability to successfully integrate Teris’ operations and assets into its existing network of services and disposal facilities;

·                  The Company’s ability to manage the significant environmental liabilities that it assumed in connection with the CSD and Teris acquisitions;

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

·                  The availability and costs of liability insurance and financial assurance required by governmental entities relating to our facilities;

·                  The effects of general economic conditions in the United States, Canada and other territories and countries where the Company does business;

·                  The effect of economic forces and competition in specific marketplaces where the Company competes;

·                  The possible impact of new regulations or laws pertaining to all activities of the Company’s operations;

·                  The outcome of litigation or threatened litigation or regulatory actions;

·                  The effect of commodity pricing on overall revenues and profitability;

·                  Possible fluctuations in quarterly or annual results or adverse impacts on the Company’s results caused by the adoption of new accounting standards or interpretations or regulatory rules and regulations;

·                  The effect of weather conditions or other aspects of the forces of nature on field or facility operations;

·                  The effects of industry trends in the environmental services and waste handling marketplace; and

·                  The effects of conditions in the financial services industry on the availability of capital and financing.

Any of the above factors and numerous others not listed nor foreseen may adversely impact the Company’s financial performance.  Additional information on the potential factors that could affect the Company’s actual results of operations is included in its filings with the Securities and Exchange Commission, which may be viewed on the Investor portal of the Company’s Web Page at www.cleanharbors.com.

Contact:

James M. Rutledge

Bill Geary

Executive Vice President and Chief Financial Officer

Executive Vice President and General Counsel

Clean Harbors, Inc.

Clean Harbors, Inc.

781.792.5100

781.792.5130

InvestorRelations@cleanharbors.com

 

 

 

Jim Buckley

 

Executive Vice President

 

Sharon Merrill Associates, Inc.

 

617.542.5300

 

clhb@investorrelations.com

 

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

CLEAN HARBORS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands except per share amounts)

 

 

For the three months ended:

 

Year ended:

 

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

 

2006

 

2005

 

2006

 

2005

 

Revenues

 

$

231,849

 

$

193,714

 

$

829,809

 

$

711,170

 

Cost of revenues

 

165,907

 

138,592

 

584,835

 

512,582

 

Selling, general and administrative expenses

 

34,552

 

31,179

 

125,039

 

108,312

 

Accretion of environmental liabilities

 

2,587

 

2,501

 

10,220

 

10,384

 

Depreciation and amortization

 

9,043

 

7,116

 

35,339

 

28,633

 

Income from operations

 

19,760

 

14,326

 

74,376

 

51,259

 

Other income (expense)

 

(174

)

184

 

(447

)

611

 

Loss on early extinguishment of debt

 

(239

)

 

(8,529

)

 

Interest (expense), net

 

(3,144

)

(4,963

)

(12,447

)

(22,754

)

Income before provision for income taxes and equity interest in joint venture

 

16,203

 

9,547

 

52,953

 

29,116

 

Provision for income taxes

 

4,760

 

1,595

 

6,339

 

3,495

 

Equity interest in joint venture

 

(50

)

 

(61

)

 

Net income

 

11,493

 

7,952

 

46,675

 

25,621

 

Redemption of Series C Preferred Stock, dividends on Series B and C Preferred Stocks and accretion on Series C Preferred Stock

 

69

 

69

 

276

 

279

 

Net income attributable to common shareholders

 

$

11,424

 

$

7,883

 

$

46,399

 

$

25,342

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic earnings attributable to common shareholders

 

$

0.58

 

$

0.46

 

$

2.38

 

$

1.62

 

Diluted earnings attributable to common shareholders

 

$

0.56

 

$

0.43

 

$

2.26

 

$

1.45

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

19,634

 

17,262

 

19,526

 

15,629

 

Weighted average common shares outstanding plus potentially dilutive common shares

 

20,637

 

18,566

 

20,657

 

17,717

 

 

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

CLEAN HARBORS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(in thousands)

 

 

(Unaudited)

 

 

 

 

 

December 31,

 

December 31,

 

 

 

2006

 

2005

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

73,550

 

$

132,449

 

Restricted cash and cash equivalents

 

 

3,469

 

Marketable securities

 

10,240

 

 

Accounts receivable, net

 

169,581

 

147,659

 

Unbilled accounts receivable

 

16,078

 

7,049

 

Deferred costs

 

7,140

 

4,937

 

Prepaid expenses

 

9,301

 

6,411

 

Supplies inventories

 

20,101

 

12,723

 

Deferred tax assets

 

9,238

 

219

 

Income tax receivable

 

150

 

1,462

 

Properties held for sale

 

7,440

 

7,670

 

Total current assets

 

322,819

 

324,048

 

 

 

 

 

 

 

Property, plant and equipment, net

 

244,126

 

178,524

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Deferred financing costs

 

7,206

 

9,508

 

Goodwill

 

19,032

 

19,032

 

Permits and other intangibles, net

 

65,743

 

77,803

 

Investment in joint venture

 

2,208

 

 

Deferred tax assets

 

6,388

 

1,715

 

Other

 

3,286

 

3,734

 

 

 

103,863

 

111,792

 

Total assets

 

$

670,808

 

$

614,364

 

 

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com




 

Press Release

Clean Harbors Announces Record Fourth Quarter and
Year-End 2006 Financial Results

 

CLEAN HARBORS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’EQUITY
(in thousands)

 

 

(Unaudited)

 

 

 

 

 

December 31,

 

December 31,

 

 

 

2006

 

2005

 

Current liabilities:

 

 

 

 

 

Uncashed checks

 

$

11,083

 

$

7,982

 

Current portion of long-term debt

 

 

52,500

 

Current portion of capital lease obligations

 

1,391

 

1,893

 

Accounts payable

 

81,432

 

71,372

 

Accrued disposal costs

 

3,058

 

3,109

 

Deferred revenue

 

29,409

 

21,784

 

Other accrued expenses

 

53,941

 

49,779

 

Current portion of closure, post-closure and remedial liabilities

 

13,707

 

10,817

 

Income taxes payable

 

4,333

 

4,458

 

Total current liabilities

 

198,354

 

223,694

 

 

 

 

 

 

 

Other liabilities:

 

 

 

 

 

Closure and post-closure liabilities, less current portion

 

23,520

 

20,728

 

Remedial liabilities, less current portion

 

136,173

 

139,144

 

Long-term obligations, less current maturities

 

120,522

 

95,790

 

Capital lease obligations, less current portion

 

2,648

 

4,108

 

Other long-term liabilities

 

15,609

 

14,417

 

Accrued pension cost

 

796

 

825

 

Total other liabilities

 

299,268

 

275,012

 

Total stockholders’ equity, net

 

173,186

 

115,658

 

Total liabilities and stockholders’ equity

 

$

670,808

 

$

614,364

 

 

 

42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com



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