[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Unaudited Financial Statements](index=4&type=section&id=ITEM%201%3A%20Unaudited%20Financial%20Statements) The unaudited consolidated financial statements for the period ended September 30, 2023, show total revenues of $4.07 billion for the nine months, a decrease in net income to $279.5 million compared to $329.3 million in the prior year period. Total assets increased to $6.25 billion from $6.13 billion at year-end 2022. The statements include details on operations, financial position, cash flows, and changes in stockholders' equity, along with comprehensive notes covering accounting policies, acquisitions, and segment performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (unaudited) | Account | Sep 30, 2023 ($ thousands) | Dec 31, 2022 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 1,950,752 | 2,033,761 | | **Total Assets** | **6,248,179** | **6,129,707** | | **Total Current Liabilities** | 975,387 | 1,020,094 | | **Long-Term Debt** | 2,292,952 | 2,414,828 | | **Total Liabilities** | 4,062,385 | 4,207,385 | | **Total Stockholders' Equity** | 2,185,794 | 1,922,322 | - Total assets increased to **$6.25 billion** as of September 30, 2023, from **$6.13 billion** at the end of 2022, primarily driven by increases in Property, Plant, and Equipment and Goodwill[59](index=59&type=chunk) - Total liabilities decreased, mainly due to a reduction in long-term debt from **$2.41 billion** to **$2.29 billion**[59](index=59&type=chunk) [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,365,696 | $1,363,086 | $4,070,983 | $3,888,507 | | **Income from Operations** | $154,368 | $209,087 | $465,146 | $507,350 | | **Net Income** | $91,340 | $135,799 | $279,507 | $329,270 | | **Diluted EPS** | $1.68 | $2.50 | $5.14 | $6.04 | - For the nine months ended September 30, 2023, total revenues increased to **$4.07 billion** from **$3.89 billion** year-over-year, but net income decreased to **$279.5 million** from **$329.3 million**, resulting in a lower diluted EPS of **$5.14** compared to **$6.04**[40](index=40&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (unaudited, in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | $455,692 | $357,542 | | **Net cash used in investing activities** | ($447,069) | ($281,962) | | **Net cash used in financing activities** | ($165,322) | ($72,609) | | **Decrease in cash and cash equivalents** | ($156,638) | ($3,552) | | **Cash and cash equivalents, end of period** | $335,965 | $449,023 | - Net cash from operating activities increased significantly to **$455.7 million** for the first nine months of 2023, compared to **$357.5 million** in the same period of 2022[64](index=64&type=chunk) - Cash used in investing activities increased, primarily due to higher additions to property, plant, and equipment (**$311.9 million** vs. **$244.5 million**) and acquisitions (**$119.6 million** vs. **$73.6 million**)[64](index=64&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) - Effective March 31, 2023, Michael L. Battles and Eric W. Gerstenberg were appointed Co-CEOs, forming a new Chief Operating Decision Maker (CODM) committee. The company will continue to report two operating segments: Environmental Services and Safety-Kleen Sustainability Solutions[70](index=70&type=chunk) - On March 31, 2023, the Company acquired Thompson Industrial Services, LLC for a net purchase price of **$110.9 million**, expanding the Environmental Services segment's operations in the southeastern U.S[81](index=81&type=chunk) - In January 2023, the company issued **$500.0 million** in 6.375% senior notes due 2031 and used the proceeds to repay the **$614.0 million** outstanding on its 2024 Term Loans, resulting in a **$2.4 million** loss on early extinguishment of debt[145](index=145&type=chunk) - As of September 30, 2023, the company was identified as a potentially responsible party (PRP) in connection with 131 Superfund sites, with potential monetary liability exceeding **$1.0 million** at three of these sites[163](index=163&type=chunk)[259](index=259&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=ITEM%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a 4.7% increase in total direct revenues for the first nine months of 2023, driven by an 8.5% growth in the Environmental Services segment, which offset a 10.7% decline in the Safety-Kleen Sustainability Solutions segment due to lower base oil pricing. Adjusted EBITDA decreased by 5.0% to **$757.7 million** for the nine-month period. The company generated strong operating cash flow of **$455.7 million** and projects total 2023 capital spending of **$400.0 million** to **$420.0 million**, including significant investment in a new incinerator in Nebraska [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Segment Direct Revenue Performance (in thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Environmental Services | $3,389,140 | $3,124,672 | $264,468 | 8.5% | | Safety-Kleen Sustainability Solutions | $681,508 | $763,401 | ($81,893) | (10.7)% | | **Total** | **$4,070,983** | **$3,888,507** | **$182,476** | **4.7%** | Segment Adjusted EBITDA Performance (in thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Environmental Services | $822,949 | $713,630 | $109,319 | 15.3% | | Safety-Kleen Sustainability Solutions | $126,024 | $252,043 | ($126,019) | (50.0)% | | **Total Adjusted EBITDA** | **$757,661** | **$797,884** | **($40,223)** | **(5.0)%** | - Environmental Services revenue growth was driven by increased demand and pricing for Safety-Kleen core services, contributions from the Thompson Industrial acquisition, and growth in technical services[177](index=177&type=chunk)[203](index=203&type=chunk) - The decrease in Safety-Kleen Sustainability Solutions revenue and Adjusted EBITDA was primarily due to lower market-based pricing for base oil products, despite increased sales volumes[173](index=173&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $455,692 | $357,542 | | Net cash used in investing activities | ($447,069) | ($281,962) | | Net cash used in financing activities | ($165,322) | ($72,609) | - Adjusted free cash flow for the nine months ended September 30, 2023, was **$148.9 million**, an increase from **$118.1 million** in the comparable period of 2022[174](index=174&type=chunk)[289](index=289&type=chunk) - The company anticipates capital spending for 2023 to be between **$400.0 million** and **$420.0 million**, including about **$85.0 million** for the new incinerator construction in Kimball, Nebraska[255](index=255&type=chunk) - As of September 30, 2023, the company had **$420.0 million** in cash and marketable securities and **$277.6 million** available under its **$400.0 million** revolving credit facility[254](index=254&type=chunk)[275](index=275&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There were no material changes to the company's critical accounting policies and estimates during the first nine months of 2023, as disclosed in the 2022 Annual Report on Form 10-K[9](index=9&type=chunk) - The appointment of Co-CEOs effective March 31, 2023, created a new Chief Operating Decision Maker (CODM) committee, but this is not expected to change the company's management structure or its two operating segments[26](index=26&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in the first nine months of 2023 to the information regarding quantitative and qualitative disclosures about market risk that was provided in its Annual Report on Form 10-K for the year ended December 31, 2022 - There were no material changes during the first nine months of 2023 to the market risk disclosures provided in the Company's 2022 Annual Report on Form 10-K[27](index=27&type=chunk) [Controls and Procedures](index=40&type=section&id=ITEM%204%3A%20Controls%20and%20Procedures) Management, including the Co-CEOs and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2023. Additionally, no changes in internal control over financial reporting occurred during the period that have materially affected, or are reasonably likely to materially affect, these controls - The Co-Chief Executive Officers and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[28](index=28&type=chunk) - There were no changes in the Company's internal control over financial reporting during the nine months ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, such controls[30](index=30&type=chunk) [PART II: OTHER INFORMATION](index=43&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=ITEM%201%3A%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 16, "Commitments and Contingencies," of the unaudited consolidated financial statements included in this report - Details on legal proceedings are provided in Note 16, "Commitments and Contingencies," to the financial statements[15](index=15&type=chunk) [Risk Factors](index=43&type=section&id=ITEM%201A%3A%20Risk%20Factors) There have been no material changes to the risk factors from the information provided in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes have occurred to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022[16](index=16&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its common stock repurchase program, buying back approximately 58.3 thousand shares for $10.0 million in the third quarter of 2023. As of September 30, 2023, $87.3 million remained available for future repurchases under the board-authorized $600.0 million program Common Stock Repurchases (Q3 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | Total Shares Purchased as Part of Program | Approx. Dollar Value Remaining ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Jul 2023 | 34,805 | $164.43 | — | 97,265 | | Aug 2023 | 60,529 | $171.24 | 58,341 | 87,265 | | Sep 2023 | 2,667 | $173.37 | — | 87,265 | | **Total** | **98,001** | **$168.88** | **58,341** | **87,265** | - During the three months ended September 30, 2023, the Company repurchased approximately **58.3 thousand shares** for a total of **$10.0 million**[3](index=3&type=chunk) - As of September 30, 2023, **$87.3 million** remained available for repurchase under the existing **$600.0 million** stock repurchase program[4](index=4&type=chunk) [Other Information](index=43&type=section&id=ITEM%205%3A%20Other%20Information) During the quarter ended September 30, 2023, no director or officer of Clean Harbors, Inc. adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the third quarter of 2023[19](index=19&type=chunk) [Exhibits](index=44&type=section&id=ITEM%206%3A%20Exhibits) The report includes several exhibits filed herewith, including certifications from the Co-CEOs and CFO as required by Rule 13a-14(a)/15d-14(a), Section 1350 certifications, and Interactive Data Files (iXBRL) for the financial statements - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 31.3), Section 1350 certifications (32), and Interactive Data Files (101)[21](index=21&type=chunk) [Signatures](index=45&type=section&id=Signatures) The report was duly signed on November 1, 2023, by Co-CEOs Michael L. Battles and Eric W. Gerstenberg, and Executive Vice President and CFO Eric J. Dugas, pursuant to the requirements of the Securities Exchange Act of 1934 - The Form 10-Q report was signed on November 1, 2023, by the company's Co-CEOs and CFO[12](index=12&type=chunk)[13](index=13&type=chunk)

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 ...