Clean Harbors, Inc. (NYSE:CLH) Q2 2023 Results Conference Call August 2, 2023 9:00 AM ET Company Participants Michael McDonald - General Counsel Eric Gerstenberg - Co-CEO Mike Battles - Co-CEO Eric Dugas - EVP, CFO Conference Call Participants David Manthey - Baird Jim Ricchiuti - Needham Jerry Revich - Goldman Sachs Michael Hoffman - Stifel Noah Kaye - Oppenheimer Tyler Brown - Raymond James Jasper Bibb - Truist Operator Greetings, and welcome to the Clean Harbors Second Quarter 2023 Earnings Conference Ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________ FORM 10-Q CLEAN HARBORS, INC. (Exact name of registrant as specified in its charter) Table of Contents Title of each class Trading Symbol Name of each exchange on which registered ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-34223 _______________________ Massachusetts 04-2997780 (State or Other Jurisdiction ...

Financial Data and Key Metrics - Revenue for Q1 increased 12% to $1.31 billion, driven by strong organic growth in the Environmental Services (ES) segment [55] - Adjusted EBITDA grew 19% to $215.1 million, with a margin of 16.5%, reflecting a 110 basis point increase from Q1 2022 [55] - Gross margin improved by 80 basis points to 28.7%, driven by price increases, productivity gains, and operational efficiencies [11] - SG&A expense as a percentage of revenue improved to 12.8% in Q1, with expectations to remain in the low 12% range for 2023 [11] - Net income for the quarter was $72.4 million, up 60% from a year ago, resulting in GAAP EPS of $1.33 per share [56] Business Line Performance - Environmental Services (ES) segment revenue grew 13%, with all four business units showing growth [15] - Industrial Services revenue increased 9%, benefiting from the HPC acquisition and unified branding [15] - Safety-Kleen Environmental revenue grew 18%, led by core offerings like parts wash services, which increased by 7% to $250,000 [15] - Field Services revenue was up 12%, driven by pricing, cross-selling, and branch growth initiatives [15] - SKSS segment revenue grew 7%, but adjusted EBITDA decreased by 20% due to weaker-than-expected seasonal pricing [38] Market Performance - Waste oil collections in Q1 were strong at 59 million gallons, up 11% from a year ago [19] - Landfill price per ton increased by 17% in the quarter, reflecting strength in the base business and a healthy mix of waste projects [30] - Incineration pricing was up 15% year-over-year, despite lower utilization due to weather-related challenges [37] - Landfill volumes were up 8% year-over-year, despite severe flooding at the Buttonwillow, California site [37] Strategic Direction and Industry Competition - The company is focused on cross-selling and leveraging its platform of over 700 service branches and 22,000 employees [10] - The Vision 2027 plan emphasizes long-term growth in the SKSS segment, with initiatives like increased base oil production and the KLEEN+ brand [14] - The company completed the Thompson Industrial acquisition for $110 million, expanding its presence in the Southeast U.S. and broadening its verticals [17] - The company is investing in a new state-of-the-art incinerator in Kimball, Nebraska, with 70,000 tons of annual capacity, expected to open in early 2025 [20] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified business model and strong demand across the ES segment [10] - The company expects Q2 adjusted EBITDA to be 7% to 9% lower than Q2 2022 due to challenging year-over-year comparisons in the SKSS segment [43] - Full-year 2023 adjusted EBITDA guidance is revised to $1.02 billion to $1.06 billion, reflecting current market conditions and the addition of Thompson Industrial [43] - Management remains optimistic about the ES segment's ability to offset the slowdown in SKSS, with strong demand and a robust backlog of waste [71] Other Important Information - The company achieved a first-quarter best TRIR (Total Recordable Incident Rate) of 0.61, well below the goal of 0.70 [12] - Cash provided from operations in Q1 was $28 million, compared to a use of cash of $39 million a year ago [22] - The company repurchased 22,000 shares of stock at a total cost of $3 million, with over $100 million remaining under the buyback program [58] Q&A Session Summary Question: Why does the company guide to adjusted EBITDA instead of revenues? - The company focuses on adjusted EBITDA because it has more control over costs and profitability, especially in the oil business where it is a price taker [109] Question: Impact of weather-related disruptions on Q1 results - Weather-related challenges, including flooding in California, caused lower utilization at incinerators and landfill volumes, impacting Q1 results by approximately $8 million to $10 million [129] Question: Pricing trends in the ES segment - Approximately 75% of ES growth in Q1 was driven by pricing, with the remaining 25% from mix and volume improvements [91] Question: Employee retention and hiring trends - Employee turnover has improved, nearing pre-pandemic levels, which has helped moderate wage increases despite inflation [78] Question: M&A strategy and synergies - The company continues to see a strong pipeline of M&A opportunities, particularly in Industrial Services and Environmental Services, with recent acquisitions like HPC and Thompson Industrial showing promising early returns [69][123] Question: Outlook for blended product sales in SKSS - Blended product sales accounted for 15% of total output in Q1, with expectations for improvement as the year progresses [39]

The following table reconciles third-party revenues to direct revenues for the three months ended March 31, 2023 and 2022 (in thousands): For the Three Months Ended For the Three Months Ended Table of Contents Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such ...

Clean Harbors, Inc. (NYSE:CLH) Q4 2022 Earnings Conference Call March 1, 2023 9:00 AM ET Company Participants Michael McDonald – General Counsel Alan McKim – Chairman, President and Chief Executive Officer Eric Gerstenberg – President and Chief Operating Officer Mike Battles – Executive Vice President and Chief Financial Officer Conference Call Participants Michael Hoffman – Stifel Noah Kaye – Oppenheimer Quinn Fredrickson – Baird Adam Bubes – Goldman Sachs Jim Ricchiuti – Needham Operator Greetings, and w ...

Fourth-Quarter and Full-Year 2022 Investor Review Forward Looking Statements and GAAP Disclaimer Statement Regarding use of Non-GAAP Measures: Adjusted EBITDA consists of net income (loss) plus accretion of environmental liabilities, stock-based compensation, depreciation and amortization, net interest expense, loss on early extinguishment of debt, provision for income taxes and excludes other gains, losses and non-cash charges not deemed representative of fundamental segment results and other (income) expe ...

Table Of Contents Health and safety is our underlying core value and we believe our long standing commitment to safety results is an important competitive strength of Clean Harbors. We have obtained leading positions across our business lines despite facing robust competition from local, regional and national firms. We believe the following are our core competitive strengths developed over our 40+ years of operations which have and will continue to facilitate our leadership position in the marketplace: • Us ...

Clean Harbors, Inc. (NYSE:CLH) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Participants Michael McDonald - General Counsel Alan McKim - Founder, Chairman, President & CEO Michael Battles - EVP & CFO Eric Gerstenberg - COO Conference Call Participants Tyler Brown - Raymond James Michael Hoffman - Stifel Jerry Revich - Goldman Sachs David Manthey - Baird James Ricchiuti - Needham & Company Noah Kaye - Oppenheimer Pete Lucas - CJS Securities Zane Karimi - D.A. Davidson Scott Levine - B ...

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $0.01 par value CLH New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION ...

Clean Harbors, Inc. (NYSE:CLH) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Michael McDonald - General Counsel Alan McKim - Founder, Chairman, President & CEO Michael Battles - EVP & CFO Eric Gerstenberg - COO Conference Call Participants Noah Kaye - Oppenheimer Patrick Brown - Raymond James & Associates Lawrence Solow - CJS Securities Zane Karimi - D.A. Davidson & Co. Michael Hoffman - Stifel, Nicolaus & Company David Manthey - Robert W. Baird & Co. James Ricchiuti - Need ...