Clean Harbors(CLH) - 2024 Q2 - Quarterly Report

PART I: FINANCIAL INFORMATION This part presents the company's unaudited financial statements, management's discussion, and market risk disclosures ITEM 1: Unaudited Financial Statements This section presents the company's unaudited consolidated financial statements and detailed notes for Q2 2024 and FY2023 Consolidated Balance Sheets This section details the company's financial position, presenting assets, liabilities, and equity for June 30, 2024, and December 31, 2023 | ASSETS (in thousands) | June 30, 2024 (unaudited) | December 31, 2023 (in thousands) | |:---|:---|:---|\n| Current assets: |||\n| Cash and cash equivalents | $401,992 | $444,698 |\n| Short-term marketable securities | 91,294 | 106,101 |\n| Accounts receivable, net | 1,089,832 | 983,111 |\n| Unbilled accounts receivable | 187,148 | 107,859 |\n| Inventories and supplies | 365,356 | 327,511 |\n| Prepaid expenses and other current assets | 93,440 | 82,939 |\n| Total current assets | 2,229,062 | 2,052,219 |\n| Property, plant and equipment, net | 2,408,647 | 2,193,318 |\n| Other assets: |||\n| Operating lease right-of-use assets | 214,858 | 187,060 |\n| Goodwill | 1,482,085 | 1,287,736 |\n| Permits and other intangibles, net | 727,463 | 602,797 |\n| Other long-term assets | 74,833 | 59,739 |\n| Total other assets | 2,499,239 | 2,137,332 |\n| Total assets | $7,136,948 | $6,382,869 |\n| LIABILITIES AND STOCKHOLDERS' EQUITY |||\n| Current liabilities: |||\n| Current portion of long-term debt | $15,102 | $10,000 |\n| Accounts payable | 447,940 | 451,806 |\n| Deferred revenue | 108,035 | 95,230 |\n| Accrued expenses and other current liabilities | 392,708 | 397,157 |\n| Current portion of closure, post-closure and remedial liabilities | 31,954 | 26,914 |\n| Current portion of operating lease liabilities | 65,901 | 56,430 |\n| Total current liabilities | 1,061,640 | 1,037,537 |\n| Other liabilities: |||\n| Closure and post-closure liabilities, less current portion | 103,299 | 105,044 |\n| Remedial liabilities, less current portion | 95,458 | 97,885 |\n| Long-term debt, less current portion | 2,775,837 | 2,291,717 |\n| Operating lease liabilities, less current portion | 152,328 | 131,743 |\n| Deferred tax liabilities | 360,861 | 353,107 |\n| Other long-term liabilities | 145,804 | 118,330 |\n| Total other liabilities | 3,633,587 | 3,097,826 |\n| Stockholders' equity: |||\n| Common stock, $0.01 par value | 539 | 539 |\n| Additional paid-in capital | 459,982 | 459,728 |\n| Accumulated other comprehensive loss | (184,490) | (175,339) |\n| Retained earnings | 2,165,690 | 1,962,578 |\n| Total stockholders' equity | 2,441,721 | 2,247,506 |\n| Total liabilities and stockholders' equity | $7,136,948 | $6,382,869 | Unaudited Consolidated Statements of Operations This section presents the company's revenues, costs, and net income for the three and six months ended June 30, 2024 and 2023 | (in thousands, except per share amounts) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---|\n| Revenues: |||||\n| Service revenues | $1,288,370 | $1,159,090 | $2,440,228 | $2,212,323 |\n| Product revenues | 264,349 | 238,810 | 489,186 | 492,964 |\n| Total revenues | 1,552,719 | 1,397,900 | 2,929,414 | 2,705,287 |\n| Cost of revenues: |||||\n| Service revenues | 850,391 | 771,600 | 1,666,740 | 1,523,195 |\n| Product revenues | 185,151 | 175,912 | 339,872 | 355,831 |\n| Total cost of revenues | 1,035,542 | 947,512 | 2,006,612 | 1,879,026 |\n| Selling, general and administrative expenses | 197,876 | 167,382 | 379,744 | 334,135 |\n| Accretion of environmental liabilities | 3,304 | 3,486 | 6,521 | 6,893 |\n| Depreciation and amortization | 100,504 | 89,697 | 195,569 | 174,455 |\n| Income from operations | 215,493 | 189,823 | 340,968 | 310,778 |\n| Other expense, net | (167) | (1,283) | (1,308) | (1,167) |\n| Loss on early extinguishment of debt | — | — | — | (2,362) |\n| Interest expense, net of interest income | (36,449) | (30,072) | (64,988) | (50,704) |\n| Income before provision for income taxes | 178,877 | 158,468 | 274,672 | 256,545 |\n| Provision for income taxes | 45,597 | 42,702 | 71,560 | 68,378 |\n| Net income | $133,280 | $115,766 | $203,112 | $188,167 |\n| Earnings per share: |||||\n| Basic | $2.47 | $2.14 | $3.77 | $3.48 |\n| Diluted | $2.46 | $2.13 | $3.75 | $3.46 |\n| Shares used to compute earnings per share - Basic | 53,932 | 54,092 | 53,931 | 54,084 |\n| Shares used to compute earnings per share - Diluted | 54,248 | 54,448 | 54,231 | 54,422 | Unaudited Consolidated Statements of Comprehensive Income This section details net income and other comprehensive income/loss components for the three and six months ended June 30, 2024 and 2023 | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---|\n| Net income | $133,280 | $115,766 | $203,112 | $188,167 |\n| Other comprehensive (loss) income, net of tax: |||||\n| Unrealized (loss) gain on available-for-sale securities | (8) | 44 | (92) | 218 |\n| Unrealized gain on fair value of interest rate hedges | 3,106 | 12,556 | 11,767 | 7,727 |\n| Reclassification adjustment for interest rate hedge amounts realized in net income | (3,721) | (4,9