Clean Harbors(CLH)2025-04-30 14:53Financial Performance - Total revenues for Q1 2025 reached $1,431,950, an increase of 4.0% compared to $1,376,695 in Q1 2024[13] - Net income for Q1 2025 was $58,680, down 16.0% from $69,832 in Q1 2024[13] - Earnings per share (EPS) for Q1 2025 were $1.09, compared to $1.29 in Q1 2024, reflecting a decrease of 15.5%[13] - Comprehensive income for Q1 2025 was $53,748, down from $65,545 in Q1 2024, a decrease of 18.0%[17] - Adjusted EBITDA for the Environmental Services segment was $274,591,000 for Q1 2025, compared to $264,475,000 in Q1 2024, reflecting an increase of about 4.3%[90] - Total Reportable Segment Adjusted EBITDA for Q1 2025 was $302,843,000, an increase from $294,175,000 in Q1 2024, representing a growth of 2.3%[93] Assets and Liabilities - Total current assets decreased to $2,310,682 as of March 31, 2025, from $2,433,796 at the end of 2024, a decline of 5.0%[11] - Cash and cash equivalents decreased to $489,417 from $687,192, representing a decline of 28.8%[11] - Total liabilities decreased slightly to $4,675,563 as of March 31, 2025, from $4,673,749 at the end of 2024[11] - Total stockholders' equity as of March 31, 2025, was $2,571,224, a slight decrease from $2,573,529 at the end of 2024[11] - As of March 31, 2025, the company had total long-term debt of $2.77 billion, slightly down from $2.79 billion as of December 31, 2024[61] Revenue Segments - Environmental Services segment revenues for the three months ended March 31, 2025, were $1,207.04 million, compared to $1,161.28 million in the same period of 2024, reflecting an increase of about 4%[37] - Safety-Kleen Sustainability Solutions revenues for the three months ended March 31, 2025, were $224.82 million, up from $215.31 million in the prior year, indicating a growth of approximately 4%[37] - Technical Services generated revenues of $426.21 million for the three months ended March 31, 2025, compared to $407.49 million in the same period of 2024, marking an increase of approximately 5%[37] - Industrial Services and Other revenues were $322.46 million for the three months ended March 31, 2025, compared to $359.50 million in the same period of 2024, reflecting a decrease of about 10%[37] - Field and Emergency Response Services revenues were $215.70 million for the three months ended March 31, 2025, compared to $163.47 million in the same period of 2024, indicating a significant increase of approximately 32%[37] Acquisitions - The Company acquired HEPACO on March 22, 2024, for an all-cash purchase price of $392.2 million, enhancing its Environmental Services segment[40] - The Company finalized the purchase accounting for the acquisition of Noble Oil Services, Inc. for an all-cash purchase price of $68.7 million, net of cash acquired[43] - The Company completed the acquisition of three additional privately-owned businesses for a total cash consideration of $17.1 million in 2024[47] Cash Flow and Investments - Cash flows from operating activities were $1,605 for Q1 2025, a significant decrease from $18,549 in Q1 2024[19] - The company reported a net cash used in investing activities of $120,330, compared to $609,873 in Q1 2024[19] - The company repurchased $55,000 in common stock during Q1 2025, compared to $5,000 in Q1 2024[19] Legal and Regulatory Matters - As of March 31, 2025, the Company has been identified as a potentially responsible party for 132 Superfund sites, with potential monetary liability exceeding $1.0 million at three of these sites[83] - The Company has approximately 71 pending product liability cases related to Safety-Kleen's products, with insurance coverage expected to cover most claims, excluding punitive damages[81] - The company has indemnification agreements at 17 of the 126 third-party Superfund sites, which cover liabilities for waste disposed of prior to acquisition[84] Expenses - Selling, general and administrative expenses for the reportable segments totaled $111,630,000 for Q1 2025, compared to $114,633,000 for Q1 2024, indicating a decrease of approximately 2.6%[90] - Interest expense for Q1 2025 was $36,077,000, compared to $28,539,000 in Q1 2024, reflecting a significant increase of 26.4%[93] - Corporate costs for Q1 2025 amounted to $67,989,000, up from $64,080,000 in Q1 2024, indicating an increase of 4.5%[93] Stock and Compensation - Total stock-based compensation cost recognized for the three months ended March 31, 2025, was $7.6 million, an increase from $6.3 million in the same period of 2024[69] - The total fair value of restricted stock vested during the three months ended March 31, 2025, was $15 million, compared to $3.7 million in the prior year[70] - As of March 31, 2025, there was $11.9 million of total unrecognized compensation cost arising from performance stock awards deemed probable of vesting[73]