Clean Harbors Expects to Exceed Financial Guidance for the Fourth Quarter of 2005
February 16 2006 - 7:30AM
Business Wire
Clean Harbors, Inc. ("Clean Harbors") (NASDAQ: CLHB), the leading
provider of environmental and hazardous waste management services
throughout North America, today announced that the Company expects
to exceed its financial guidance for the fourth quarter ended
December 31, 2005. This update is being provided in conjunction
with management's presentation at the Deutsche Bank Securities 2006
Small Cap Growth Conference. On November 7, 2005, the Company
stated that it expected revenues of $171 million to $176 million
for the fourth quarter, including more than $10 million in
hurricane-related revenues from the Gulf region. The Company also
stated it expected EBITDA in the range of $20 million to $22
million. Based on preliminary financial data and subject to the
final closing of the Company's books and records, Clean Harbors now
expects fourth-quarter 2005 revenue to be in the range of $192
million to $194 million, including approximately $17 million in
hurricane-related revenue. The Company currently expects to report
fourth-quarter EBITDA in the range of $23.5 million to $24.5
million. Clean Harbors calculates EBITDA (which is a non-GAAP
measure) in accordance with its financing agreements and believes
that this measure provides useful additional information to
investors. The expected EBITDA for the fourth quarter is based on
expected income from operations of $13.5 million to $14.5 million,
as increased by accretion of environmental liabilities of
approximately $2.5 million and depreciation and amortization of
approximately $7.5 million. Based on the Company's strong cash flow
and December equity offering, Clean Harbors increased its balance
of cash and cash equivalents from approximately $47 million on
September 30, 2005 to approximately $136 million at December 31. In
January 2006, approximately $61.3 million of this total was used to
redeem 35% of Clean Harbors' outstanding 11.25% senior secured
notes due 2012 and pay the prepayment penalty and accrued interest
relating to the redemption. This redemption, together with the
amendment and restatement of the Company's credit agreement on
December 1, 2005, is expected to save Clean Harbors approximately
$8.7 million in annual cash interest expense in 2006. "Clean
Harbors closed out a record year with exceptional financial results
in the fourth quarter," said Alan S. McKim, chairman and chief
executive officer. "Revenue exceeded our expectations as a result
of a strong performance from our Site Services business and a
greater-than-expected top-line benefit from our clean-up and
reconstruction efforts in the Gulf region. We also performed well
from an EBITDA and cash flow perspective as we controlled spending
and benefited from the rollout of our WIN operating platform in
Canada. Our success on both the operational and sales fronts
provides us with strong momentum entering 2006." Deutsche Bank
Conference Clean Harbors management will be presenting at the
Deutsche Bank Securities 2006 Small Cap Growth Conference tomorrow
at 10:00 a.m. (ET). This presentation will be webcast live. To
access the live or archived webcast, visit the "Investor Relations"
portion of Clean Harbors' website at www.cleanharbors.com.
Fourth-Quarter Conference Call The Company expects to announce its
fourth-quarter and year-end 2005 results on March 7, 2006 and will
host a conference call at 9:00 a.m. ET that morning. On the call,
Chairman, President and Chief Executive Officer Alan McKim and
Executive Vice President and Chief Financial Officer James M.
Rutledge will discuss Clean Harbors' financial results, business
outlook and growth strategy. Those who wish to listen to the
fourth-quarter 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 (888) 349-5690 or
(706) 643-3945 (conference ID: 4214915) 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 48 waste management facilities,
including nine landfills, five incineration locations and seven
wastewater treatment centers, the Company provides essential
services to over 45,000 customers, including more than 175 Fortune
500 companies, thousands of smaller private entities and numerous
federal, state and local governmental agencies. Headquartered in
Braintree, 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. 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 manage the significant environmental
liabilities, which it assumed in connection with the CSD
acquisition; -- 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.
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