NYSE$CLH

Clean Harbors Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Clean Harbors reported a solid fourth quarter, driven by Environmental Services, with increased revenues and Adjusted EBITDA.

Clean Harbors' Q4 2019 results showed revenue growth to $871.0 million, a 26% increase in income from operations to $52.3 million, and net income of $24.2 million, or $0.43 per diluted share. Adjusted EBITDA increased by 8% to $132.2 million. The company leveraged its disposal network, increased operating efficiencies, and captured project volumes.

  • Fourth-quarter revenues increased to $871.0 million from $858.2 million in the same period of 2018.
  • Income from operations grew 26% to $52.3 million.
  • Adjusted EBITDA in the fourth quarter of 2019 increased 8% to $132.2 million.
  • Incineration utilization climbed to 89% from 86% a year ago.

Headline financials

Total Revenue

$871M

Previous: $858M+1.5%
EPS (adj)

$0.42

Previous: $0.24+75.0%
Adjusted EBITDA

$132M

Previous: $122M+8.4%
Capital Expenditures

$41.8M

Previous: $42.6M-1.9%
Free Cash Flow

$86.7M

Previous: $83.4M+4.0%
Net Income

$24.2M

Previous: $16.4M+47.3%
Operating Income

$52.3M

Previous: $41.5M+26.1%
Gross Profit

$255M

Previous: $263M-3.1%
Cash & Equivalents

$372M

Previous: $227M+64.2%
Total Assets

$4.11B

Previous: $3.74B+9.9%
Stock-Based Comp

$3.15M

Previous: $6.07M-48.0%

Revenue & EPS history

Clean Harbors · Revenue · Quarterly

$871M

Q4 2019+1.5%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Clean Harbors · $871M total across 2 segments · Q4 2019

  • Environmental Services
    $615M
  • Safety-Kleen Sustainability
    $256M

Forward guidance

Clean Harbors expects profitable growth in 2020, supported by industry trends and alignment of environmental solutions with customer objectives. For the first quarter, Clean Harbors expects Adjusted EBITDA to increase in line with the full year 2020 due to stable top-line growth, pricing gains and operational efficiencies.

Tailwinds

  • Healthy backlog of waste streams in disposal facilities.
  • Opportunities to drive high-value waste streams into the network.
  • Capitalizing on the growth of the U.S. chemical and manufacturing sectors.
  • Robust pipeline of remediation and waste projects.
  • Continued growth in Safety-Kleen through core branch offerings, re-refinery network and direct lube sales program.

Headwinds

  • Challenging environment for Safety-Kleen Oil due to base oil and blended pricing.
  • Value of certain re-refining byproducts came under pressure.
  • IMO 2020 longer-lasting and full effects will likely not be known for a few more months.
  • Annual guidance assumes no incremental profitability from IMO 2020.
  • Direct lube program still below internal targets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+17.4%

Q3 2020

Best reaction

-14.3%

Q4 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-6.5%-9.9%
Q4 2025+2.7%+4.4%+2.5%
Q3 2025-11.5%-15.2%-7.6%
Q1 2025-0.1%+4.1%+5.9%
Q4 2024-3.0%-6.6%-13.4%
Q3 2024-12.2%-9.8%-1.3%
Q2 2024+8.0%+1.2%+9.6%
Q1 2024+8.5%+12.2%+14.3%
Q4 2023-2.6%-1.8%+4.0%
Q3 2023+0.9%+0.5%+8.6%
Q2 2023+0.3%+1.3%+4.0%
Q1 2023-6.5%-6.4%+3.3%
Q4 2022+3.2%+2.2%+7.9%
Q3 2022-8.0%-8.3%+2.1%
Q2 2022+8.8%+13.8%+18.9%
Q1 2022-6.7%-12.6%-6.3%
Q4 2021-2.1%+2.4%+15.3%
Q3 2021-10.0%-8.3%-16.3%
Q2 2021+3.0%+5.0%+6.8%
Q1 2021+5.7%+6.0%+6.2%
Q4 2020+0.4%+0.7%+0.3%
Q3 2020+17.4%+25.6%+36.2%
Q2 2020+5.9%+8.2%-4.9%
Q1 2020-5.1%-8.8%+5.5%
Q4 2019-10.6%-10.7%-38.2%
Q3 2019+5.1%+6.1%+5.4%
Q2 2019+4.2%+0.5%+0.9%
Q1 2019-6.1%-6.4%-15.6%
Q4 2018+13.3%+12.8%+19.2%
Q3 2018+1.0%+0.6%+1.4%
Q2 2018+9.7%+8.9%+20.5%
Q1 2018+12.7%+13.6%+18.1%
Q4 2017-4.0%+0.7%-2.5%
Q3 2017-0.2%-0.3%+0.4%
Q2 2017-6.0%-5.6%-6.5%
Q1 2017+2.0%+2.5%+1.2%
Q4 2016+0.8%+2.0%-3.8%
Q3 2016-4.1%-3.7%+16.6%
Q2 2016-1.4%-2.2%-7.0%
Q1 2016-5.2%
Q4 2015-1.1%
Q3 2015-5.4%
Q2 2015+1.2%
Q1 2015-2.2%
Q4 2014+8.7%
Q3 2014-1.1%
Q2 2014-0.5%
Q1 2014-1.3%
Q4 2013-14.3%
Q3 2013-6.8%
Q2 2013-5.4%
Q1 2013-7.5%
Q4 2012+1.5%
Q3 2012-0.1%
Q2 2012-6.6%
Q1 2012-5.6%
Q4 2011-1.4%
Q3 2011-6.0%
Q2 2011-2.5%
Q1 2010+3.3%
Q1 2011+0.2%
Q4 2008-2.4%
Q4 2010-2.4%
Q3 2009+0.5%
Q3 2010+0.5%
Q2 2010-1.9%
Q4 2009-1.9%
Q2 2009-1.9%

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