Clean Harbors(CLH) - 2022 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2022 reached $1,356,312, a 46% increase from $926,458 in Q2 2021[12] - Service revenues amounted to $1,085,043 in Q2 2022, up 48% from $734,563 in Q2 2021[12] - Net income for the six months ended June 30, 2022, was $193,471, compared to $88,811 for the same period in 2021, representing a 118% increase[15] - Earnings per share (EPS) for Q2 2022 were $2.73 (basic) and $2.71 (diluted), compared to $1.23 and $1.22 in Q2 2021, reflecting a 122% and 122% increase respectively[12] - Net income for the second quarter of 2022 was $193,471, compared to $88,811 in the same period of 2021, representing a growth of 118%[18] - Net income for the three months ended June 30, 2022, was $148.157 million, compared to $67.075 million for the same period in 2021[76] - Comprehensive income for Q2 2022 was $147,618, compared to $77,715 in Q2 2021, indicating an increase of 89.6%[15] - For the six months ended June 30, 2022, total revenues were $2,525,421, representing a 45.6% increase compared to $1,734,606 for the same period in 2021[13] Assets and Liabilities - Total assets increased to $5,924,656 as of June 30, 2022, from $5,653,699 at the end of 2021, marking a 4.8% growth[10] - Accounts receivable rose to $1,005,488, up from $792,734 at the end of 2021, indicating a 27% increase[10] - Current liabilities totaled $990,058, an increase from $925,314 at the end of 2021, reflecting a 7% rise[10] - The company’s total stockholders' equity increased to $1,716,950 as of June 30, 2022, from $1,513,887 at the end of 2021, representing a 13.4% growth[10] - The company reported contract liabilities (deferred revenue) of $94.5 million as of June 30, 2022, compared to $83.7 million on December 31, 2021, indicating an increase of about 13%[37] - As of June 30, 2022, total inventories and supplies amounted to $275,696,000, an increase from $250,692,000 as of December 31, 2021[50] - The company’s accumulated earnings increased to $1,366.4 million as of June 30, 2022, up from $1,173.0 million at the end of 2021[10] Cash Flow and Investments - Cash flows from operating activities decreased to $131,970 in Q2 2022 from $265,432 in Q2 2021, a decline of 50%[18] - Total cash and cash equivalents at the end of the period were $344,631, down from $595,574 a year earlier, indicating a decrease of 42%[18] - Net cash used in investing activities rose to $187,482 in Q2 2022 from $132,340 in Q2 2021, an increase of 42%[18] - Adjusted free cash flow for the six months ended June 30, 2022, was an outflow of $13.0 million, compared to a positive adjusted free cash flow of $176.9 million in the same period of 2021[114] - The company reported a net cash used in investing activities of $187,482 for the six months ended June 30, 2022, compared to $132,340 in the prior year[18] Revenue Segments - Environmental Services revenue for the United States was $945.6 million for the three months ended June 30, 2022, compared to $616.6 million in the same period of 2021, indicating a growth of about 53%[34] - Safety-Kleen Environmental Services revenue for the three months ended June 30, 2022, was $241.1 million, compared to $199.4 million in the same period of 2021, representing an increase of approximately 21%[34] - The company’s Technical Services revenue for the three months ended June 30, 2022, was $387.0 million, up from $306.9 million in the same period of 2021, reflecting a growth of approximately 26%[34] - Safety-Kleen Sustainability Solutions segment direct revenues rose by $63.2 million or 31.2% year-over-year for Q2 2022, primarily due to higher pricing of oil products[108] - The acquisition of HydroChemPSC contributed approximately $207.9 million to total revenues in Q2 2022[108] Expenses and Costs - Selling, general and administrative expenses for Q2 2022 were $155,608, compared to $124,106 in Q2 2021, a 25% increase[12] - Cost of revenues for Environmental Services for the three months ended June 30, 2022, increased by $256.4 million (52.6%) compared to the same period in 2021, driven by increased direct revenues and additional costs from HydroChemPSC operations[125] - Labor and benefit-related costs for Environmental Services increased by $124.8 million for the three months ended June 30, 2022, contributing significantly to the overall cost increase[125] - Selling, General and Administrative (SG&A) expenses for Environmental Services increased by $16.9 million (27.9%) for the three months ended June 30, 2022, primarily due to higher labor and benefit-related costs[131] Acquisitions and Growth - The company acquired a privately-owned company on June 17, 2022, for an all-cash purchase price of approximately $73.8 million, enhancing its waste oil collection capabilities[39] - The acquisition of HydroChemPSC in October 2021 was for approximately $1.23 billion, enhancing the company's Environmental Services segment[42] - The company’s operations expansion includes the addition of a re-refinery in Georgia, enhancing its re-refining business capabilities[39] Tax and Legal Matters - The effective tax rate for the six months ended June 30, 2022, was 25.0%, a decrease from 27.3% for the same period in 2021[73] - The Company recorded reserves of $36.8 million for legal and administrative proceedings as of June 30, 2022, compared to $36.1 million as of December 31, 2021[87] - The Company has been identified as potentially responsible parties in connection with 131 Superfund sites, with potential liabilities exceeding $1.0 million at three of these sites[93]