Date: September 16, 2010
Source: Clean Harbors Inc.
Clean Harbors (Norwell, MA) again raised its revenue forecast to between $1.63 billion to $1.68 billion for 2010. It had previously forecast between $1.6 billion and $1.65 billion, but its participation in the Gulf of Mexico oil spill cleanup has been more extensive than anticipated. Chairman and CEO Alan S. McKim delivered the upbeat news during an investor day webcast last Thursday (Sep. 16). He also forecast a larger profit before interest, taxes, depreciation and amortization. The company is planning greater capital spending, and now estimates a total of about $100 million this year, rather than a figure in the mid-$80 million range. The company recently announced that its second quarter revenues were more than double last year's helped by work related to the Gulf of Mexico oil spill, robust internal growth and added business from its recent acquisition of Canadian oil services firm Eveready Inc.
PRESS RELEASE
Clean Harbors Upwardly Revises its 2010 Guidance in Conjunction with its Investor Day
Norwell, MA - September 16, 2010 - Clean Harbors, Inc. (NYSE: CLH), the leading provider of environmental, energy and industrial services and hazardous waste management services throughout North America, today updated its 2010 revenue and EBITDA guidance in conjunction with its 2010 Investor Day being hosted in New York City. The Company also announced that it will reduce its debt balance by $30 million on September 28, 2010 through a partial redemption of outstanding senior secured notes.
The Company is upwardly revising its 2010 revenue and EBITDA guidance to reflect the effect of additional emergency response activities in the third quarter. For 2010, Clean Harbors now expects full-year revenue in the range of $1.63 billion to $1.68 billion, compared with prior revenue guidance of $1.60 billion to $1.65 billion. The Company also is now forecasting 2010 EBITDA in the range of $278 million to $288 million for the full year, compared with prior EBITDA guidance of $270 million to $280 million. The Company reports and projects EBITDA, which is a non-GAAP financial measure calculated in accordance with the Company's existing credit agreement, as a complement to the Company's GAAP financial results because the Company believes EBITDA provides useful additional information to investors. The Company's August 4, 2010 press release, which is available on its website at www.cleanharbors.com, provides a description ofthe calculation of EBITDA and a reconciliation to the Company's reported net income for the first six months of 2010. The Company's revised guidance for 2010 is exclusive of the impact of any emergency response related work beyond the third quarter.
"Our overall business continues to perform well and we are on track to meet our expectations for 2010," said Alan S. McKim, Chairman and Chief Executive Officer. "In addition to the Gulf region clean-up, this quarter we participated in other emergency response related events including the oil spill in the Kalamazoo River area of Michigan. At the peak level this quarter, we had approximately 500 response-related personnel in Michigan along with a broad array of specialized equipment."
Debt Reduction and Capital Spending
Clean Harbors announced today that it has called for redemption $30 million of its $300 million of outstanding senior secured notes on September 28, 2010 at a price of 103% of the principal amount, plus accrued interest. These notes, which were issued in mid-2009, carry an interest rate of 7.625% and fully mature in 2016. As a result of the redemption, the Company expects to reduce its long-term debt balance to approximately $270 million. The Company also anticipates that it will incur a pre-tax charge of $2.4 million for the early extinguishment of debt, which will be reflected in net income for the third quarter of 2010. Approximately $1.4 million of the charge will be non-cash. The redemption will lower the Company's interest expense by approximately $2.3 million on an annualized basis.
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