Date: August 21, 2009
Source: Heritage-Crystal Clean, Inc.
Heritage - Crystal Clean, Inc. to Explore Development of Re-refinery
Heritage-Crystal Clean, Inc. (Nasdaq:HCCI) announced today that it has begun exploring entering the used lubricating oil re-refining business. Currently, the Company sells the used oil collected by its branches as fuel to electric utilities and asphalt plants. Entry into the used oil re-refining business would enable the Company to re-refine used oil into lubricating oil and capture the higher margins and profits associated with the higher value-added product. In connection with this initiative, the Company has hired Glenn Casbourne as Vice President of Engineering, and will spend up to $5 million on the initiative during the next year (which is expected to be capitalized).
Re-refining Risk Statement
HCCI's re-refining initiative is in the early stages of development. HCCI may decide to discontinue this initiative and HCCI could lose any investment that it makes in the development of a re-refinery. Even if HCCI completes the development of a re-refinery, HCCI may not achieve the results that it expects, which could cause HCCI's business and operating results to suffer.
Safe Harbor Statement
All references to the "Company," "we," "our," and "us" refer to Heritage-Crystal Clean, Inc., and its subsidiaries.
This release contains forward-looking statements that are based upon current management expectations. Generally, the words "aim," "anticipate," "believe," "could," "current thinking," "estimate," "expect," "goal," "hope," "intend," "may," "plan," "project," "should," "will be," "will continue," "will likely result," "would" and similar expressions identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: whether our re-refining initiative is successful, including our ability to develop and operate a re-refinery, our ability to comply with the extensive environmental, health and safety and employment laws and regulations that our Company is subject to; changes in environmental laws that affect our business model; competition; claims relating to our handling of hazardous substances; the limited demand for our used solvent; our dependency on key employees; our ability to effectively manage our extended network of branch locations; warranty expense and liability claims; personal injury litigation; dependency of suppliers; economic conditions including the current recession and financial crisis, and downturns in the business cycles of automotive repair shops, industrial manufacturing business and small businesses in general; increased solvent, fuel and energy costs and volatility in the price of crude oil; the control of The Heritage Group over our Company; and the risks identified in our Annual Report on Form 10-K filed with the SEC on March 30, 2009. Given these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update or revise them or provide reasons why actual results may differ. The information in this release should be read in light of such risks and in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this release.
About Heritage-Crystal Clean, Inc.
Heritage-Crystal Clean, Inc. provides parts cleaning, hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and automotive service sectors. Our service programs include parts cleaning, containerized waste management, used oil collection, and vacuum truck services. These services help our customers manage their used chemicals and liquid and solid wastes, while also helping to minimize their regulatory burdens. Our customers include businesses involved in vehicle maintenance operations, such as car dealerships, automotive repair shops, and trucking firms, as well as small manufacturers, such as metal product fabricators and printers. Heritage-Crystal Clean, Inc. is headquartered in Elgin, Illinois, and operates through 58 branches serving over 39,000 customer locations.
The Heritage-Crystal Clean, Inc. logo is available at www.globenewswire.com/newsroom/prs/?pkgid=4974
For more information, contact:
Heritage-Crystal Clean, Inc.
Greg Ray, Chief Financial Officer and VP Business Management
(847) 836-5670
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