BRAINTREE, Mass., Oct 23, 2001 (BUSINESS WIRE) -- Clean Harbors, Inc. (Nasdaq: CLHB), a leading provider of environmental services throughout the United States and in Puerto Rico, today announced its results for the third quarter ended September 30, 2001.
Revenues for the third quarter of 2001 increased to $61.7 million, compared with $60.3 million for the same quarter in 2000. Net income for the third quarter of 2001 was $404,000, or $0.02 per diluted share, compared with net income of $1.9 million, or $0.15 per diluted share, for the third quarter of 2000.
For the first nine months of 2001, revenues were $175.8 million, compared with $175.3 million for the same period in 2000. Net income for the first nine months of 2001 was $1.8 million, or $0.11 per diluted share, compared with net income of $4.1 million, or $0.33 per diluted share, for the same period in 2000.
Comments on the Third Quarter
"Clean Harbors posted strong operational results and continued to improve its financial position despite a number of challenges in the third quarter," said Alan S. McKim, chairman and CEO. "Reflecting the softening economy, we experienced both a slowdown in service demand and increased pricing pressures. Making year-over-year comparisons even more difficult was the absence of several large emergency response projects, which were key third-quarter revenue drivers last year. Although these factors put pressure on our gross margin, I am pleased that Clean Harbors was able to sustain its record of year-over-year revenue growth, maintain its profitability, and generate strong cash flow. As a result, in the third quarter, we reduced long-term debt by $4.3 million while at the same time increased our ability to borrow under existing loan agreements by $5.6 million. Our cash position is the strongest it has been in years."
"Our extensive roster of Fortune 500 and major governmental customers continued to grow, highlighted by the addition of the National Institute of Health," said McKim. "Our ability to offer comprehensive services on a national scale is a distinct advantage, both in attracting and serving large client organizations and, as we continue to open service centers in new geographic regions, in expanding our addressable markets. The Company's formidable geographic reach allows us to provide fast and comprehensive on-site hazardous materials response throughout the U.S. In addition, our satellite-linked transportation fleet allows Clean Harbors customers to access any of our 12 treatment and disposal facilities that are strategically located across the country."
"Another Clean Harbors strength is our continuing commitment to technology," said McKim. "Developing and deploying new information technology is yet another means of enhancing the level of service and value we provide our customers, while creating new market opportunities for the Company. For example, our new data center is a state-of-the-art facility that allows Clean Harbors to effectively monitor and manage all of our customers' hazardous waste with greater efficiency than ever before. It also provides us the ability to carefully supervise our own facilities, fleet of trucks, inventory and personnel. In addition, our recently launched CHOICE Online(R) service has received high marks within our client base and is now in use by many of our customers, including the National Institute of Health. This leading-edge service gives our customers an effective tool to securely track, manage and report their waste management operations - a feature that is growing in importance in today's uncertain environment."
Business Outlook
"Clean Harbors has entered the fourth quarter with financial strength and with positive operational and market momentum," McKim continued. "Given the current geopolitical threats and uncertainties, America's environmental and public health policy focus is rapidly shifting toward issues related to the security of our population and physical infrastructure. Our technical capabilities are fully aligned with these new priorities, as is our growth strategy. We intend to continue to execute crisply on this three-pronged strategy: broadening our geographic footprint and addressable markets, expanding our business in existing markets and with current customers, and launching new products and services. Although the macroeconomic outlook remains uncertain, we are encouraged and optimistic about our prospects for continued profitable growth."
About Clean Harbors, Inc.
Clean Harbors, Inc. provides a wide range of environmental and waste management services to a diversified customer base including a majority of the Fortune 500 companies, thousands of smaller private entities and numerous governmental agencies. Within its national footprint, the Company currently has service and sales offices located in 27 states and Puerto Rico, and operates 12 waste management facilities strategically located throughout the country. For more information, visit our Website at 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. 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, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2000.
CLEAN HARBORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Revenues $ 61,659 $ 60,290 $175,777 $175,269
Cost of revenues 45,412 42,385 126,973 124,289
Selling, general
and administrative
expenses 10,314 10,803 31,456 31,667
Depreciation and
amortization 2,794 2,736 8,342 7,915
Income from operations 3,139 4,366 9,006 11,398
Interest expense, net 2,553 2,395 7,143 6,998
Income before
provision for
income taxes 586 1,971 1,863 4,400
Provision for
income taxes 182 64 102 294
Net income $ 404 $ 1,907 $ 1,761 $ 4,106
Diluted earnings
per share $ 0.02 $ 0.15 $ 0.11 $ 0.33
Weighted average
common shares
outstanding plus
potentially
dilutive
common shares 13,142 11,764 12,429 11,266
Earnings before
interest,
income taxes,
depreciation
and amortization
(EBITDA) $ 5,933 $ 7,102 $ 17,348 $ 19,313
CLEAN HARBORS, INC. AND SUBSIDIARIES
SUMMARIZED CONSOLIDATED BALANCE SHEET
(in thousands)
September 30, December 31,
2001 2000
(Unaudited)
Current assets $ 62,368 $ 58,143
Net property, plant
and equipment 54,318 55,602
Other assets 34,339 35,823
Total assets $151,025 $149,568
Current liabilities $ 47,097 $ 41,722
Other liabilities 58,107 66,211
Stockholders' equity 45,821 41,635
Total liabilities and
stockholders' equity $151,025 $149,568
CONTACT: Roger Koenecke
Clean Harbors, Inc.
(781) 849-1800
or
Jim Buckley
Sharon Merrill Associates
(617) 542-5300
URL: businesswire.com |
