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Dec 31, 2019
Clean Harbors Q4 2019 Earnings Report
Clean Harbors reported a solid fourth quarter, driven by Environmental Services, with increased revenues and Adjusted EBITDA.
Key Takeaways
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.
Clean Harbors
Clean Harbors
Clean Harbors Revenue by Segment
Revenue by Segment
Environmental Services Revenue
CapyFin.comSafety-Kleen Sustainability Solutions Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income