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Clean Harbors, Inc.$70.02($1.39)(1.95%)

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 CORRECTING and REPLACING Clean Harbors Announces Fourth-Quarter and Year-End 2017 Financial Results
   Wednesday, February 28, 2018 9:48:03 AM ET

--Delivered Q4 Net Income of $84.2 Million and GAAP EPS of $1.48 Reflecting Significant Net Benefit from U.S. Tax Law Changes; Full-Year Net Income of $100.7 Million and GAAP EPS of $1.76

--Reported Q4 Adjusted EBITDA of $101.8 Million; Full-Year Adjusted EBITDA of $425.7 Million

--Achieved Full-Year Net Cash from Operating Activities of $285.7 Million and 2017 Adjusted Free Cash Flow of $140.2 Million

--Provides 2018 Adjusted EBITDA Guidance of $440 Million to $480 Million

--Completed Acquisition of Veolia North America’s U.S. Industrial Cleaning Services Division

In the Business Outlook and Financial Guidance section, the end of the last sentence should read, "anticipated 2018 net cash from operating activities in the range of $295 million to $345 million" instead of "anticipated 2018 net cash from operating activities in the range of $290 million to $330 million".

The corrected release reads:

CLEAN HARBORS ANNOUNCES FOURTH-QUARTER AND YEAR-END 2017 FINANCIAL RESULTS

-- Increased Q4 Revenues 8% to $747.4 Million With Growth Across All Segments; Full-Year Revenues Up 7% to $2.94 Billion

-- Delivered Q4 Net Income of $84.2 Million and GAAP EPS of $1.48 Reflecting Significant Net Benefit from U.S. Tax Law Changes; Full-Year Net Income of $100.7 Million and GAAP EPS of $1.76

-- Reported Q4 Adjusted EBITDA of $101.8 Million; Full-Year Adjusted EBITDA of $425.7 Million

-- Achieved Full-Year Net Cash from Operating Activities of $285.7 Million and 2017 Adjusted Free Cash Flow of $140.2 Million

-- Provides 2018 Adjusted EBITDA Guidance of $440 Million to $480 Million

-- Completed Acquisition of Veolia North America’s U.S. Industrial Cleaning Services Division

Clean Harbors, Inc. ("Clean Harbors") (CLH ), the leading provider of environmental, energy and industrial services throughout North America, today announced financial results for the fourth quarter and year ended December 31, 2017.

"We delivered solid fourth-quarter results that were in line with our expectations as we benefited from an improving macroeconomic environment and favorable industry trends," said Alan S. McKim, Chairman, President and Chief Executive Officer. "Our top-line performance reflected a successful execution of our corporate strategy, as all four reporting segments delivered growth in the quarter. Our Adjusted EBITDA improvement was driven by a 23% increase in Safety-Kleen as well as profitable growth in Technical Services."

Fourth-quarter revenues increased 8% to $747.4 million, compared with $692.1 million in the same period a year ago. Income from operations was $27.9 million, compared with $21.9 million in the fourth quarter of 2016.

Net income for the fourth quarter of 2017 was $84.2 million or $1.48 per diluted share. This result included a $93.0 million net benefit due to recent tax law changes, partly offset by charges of $4.9 million related to non-cash valuation allowances on tax loss carryforwards generated by certain Canadian subsidiaries and other tax-related charges. Net loss for the fourth quarter of 2016 was $12.7 million, or $0.22 per share, which included the recognition of non-cash valuation allowances on tax loss carryforwards generated by certain Canadian subsidiaries of $9.6 million.

Adjusted net loss for each of the fourth quarters of 2017 and 2016 was $3.4 million, or $0.06 per share. Net income (loss) and adjusted net loss results for the fourth quarters of 2017 and 2016 included pre-tax integration and severance costs of $5.7 million and $5.9 million, respectively.

Adjusted EBITDA (see description below) in the fourth quarter of 2017 increased 6% to $101.8 million, compared with $95.9 million in the same period of 2016.

"In our Technical Services segment, incinerator utilization was an impressive 92% in the quarter, and landfill volumes rose 18% on a combination of higher base business and project work," McKim said. "Our Safety-Kleen segment delivered increased revenue and Adjusted EBITDA margins of 24.5%, reflecting effective spread management and the continued rebound in energy prices."

Completion of Veolia Transaction

The Company recently completed its previously announced acquisition of Veolia North America’s U.S. Industrial Cleaning Services Division. Clean Harbors acquired the business for $120 million in an all-cash transaction, subject to customary post-closing adjustments. The business, which generated revenues of approximately $210 million in 2017, employs approximately 1,300 employees and maintains an extensive fleet of vehicles and equipment at over 60 operating locations across the United States.

"We are excited about the numerous benefits this transaction will deliver for our customers, shareholders and Industrial Services employees," said McKim. "It provides significant scale and industrial services capabilities while more than doubling the size of our existing U.S. Industrial Services business. The acquired business’ operational footprint, particularly its strong presence in the Midwest, complements our existing network of locations. The addition of this business will create new cross-selling opportunities and drive incremental volumes into our waste disposal network. We believe this transaction enhances long-term shareholder value and will support our profitable growth momentum in 2018 and beyond. We welcome the Veolia employees to the Clean Harbors team and look forward to working together."

2017 Financial Results

Clean Harbors revenues for 2017 increased 7% to $2.94 billion, compared with $2.76 billion in 2016.

GAAP net income for 2017 was $100.7 million, or $1.76 per diluted share, which includes the net benefit from U.S. tax law changes, a gain on sale of business, a loss on the early extinguishment of debt, non-cash valuation allowances related to Canadian operations and other tax charges. GAAP net loss for 2016 was $39.9 million, or $0.69 per share, which included non-cash valuation allowances primarily related to Canadian operations, a non-cash goodwill impairment charge and a gain on sale of business.

Excluding these items, the Company reported adjusted net income for 2017 of $11.6 million, or $0.20 per diluted share, compared with adjusted net income of $1.3 million, or $0.02 per diluted share, in 2016. Net income and adjusted net income for 2017 included $11.4 million of pre-tax integration and severance costs; net loss and adjusted net income for 2016 included $24.4 million of pre-tax integration and severance costs.

Adjusted EBITDA (see description below) was $425.7 million in 2017, compared with $400.4 million in 2016.

"Clean Harbors returned to profitable growth in 2017, as we began to harvest the investments we’ve made in several growth initiatives," said McKim. "During the year, we commercially launched our 70,000-ton hazardous waste incinerator in El Dorado, Arkansas - the first new commercial U.S. incinerator to be permitted and opened in 20 years. Though the incinerator incurred several unplanned outages related to the start-up of the plant, we remain enthusiastic about its long-term potential. We also began the rollout of Safety-Kleen’s closed loop offering, selling and delivering lubricants directly to more than 15,000 unique customers. The growth of Safety-Kleen was supported by the opening of our Customer Care Center, which improves efficiencies by centralizing many functions including call operations, routing, collections and customer service."

Business Outlook and Financial Guidance

"We begin 2018 with positive momentum in our key businesses and are excited about our prospects for the year," McKim said. "We are focused on enhancing our margins through better pricing, improving our revenue mix, increasing efficiencies and capitalizing on our growth initiatives. We expect Tech Services to deliver higher profitability due to our new incinerator’s second full year of operation and the strength of the industrial economy, particularly the expansion in the chemical space. Safety-Kleen is on track for another solid year of profitable growth. Adding Veolia’s U.S. industrial cleaning business should enable our industrial team to gain meaningful traction. The improving energy markets bode well for us in multiple areas. Overall, we anticipate a strong Adjusted EBITDA and adjusted free cash flow performance in 2018."

Based on its 2017 financial performance, current market conditions and the Veolia transaction, Clean Harbors expects full-year 2018 Adjusted EBITDA in the range of $440 million to $480 million. On a GAAP basis, the Company’s guidance is based on anticipated 2018 net income in the range of $17 million to $56 million. A reconciliation of the Company’s Adjusted EBITDA guidance to net income guidance is included below. For 2018, Clean Harbors expects to generate adjusted free cash flow in the range of $125 million to $155 million, which is based on anticipated 2018 net cash from operating activities in the range of $295 million to $345 million.

Non-GAAP Results

Clean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP), but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company’s measurements of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors since the Company’s loan covenants are based upon levels of Adjusted EBITDA achieved and management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA in accordance with its existing credit agreement, as described in the following reconciliation showing the differences between reported net income (loss) and Adjusted EBITDA for the three and twelve months ended December 31, 2017 and 2016 (in thousands):

 
                                                                                               For the Three Months Ended:                                                                                                                  For the Year Ended:
                                                            --------------------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------
                                                                                  December 31,                                               December 31,                                                                  December 31,                                               December 31,
                                                                                      2017                                                                          2016                                                                          2017                                                                          2016
                                                            ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                       
Net income (loss)                                                              $         84,194                                                                      ($12,713 )                                                            $        100,739                                                                      ($39,873 )
Accretion of environmental liabilities                                                    2,407                                                                         2,648                                                                         9,460                                                                        10,177
Depreciation and amortization                                                            71,490                                                                        71,347                                                                       288,422                                                                       287,002
Goodwill impairment charge                                                       --                                                                --                                                                --                                                                        34,013
Other expense (income), net                                                               3,305                                                                        (6,932 )                                                                       6,119                                                                        (6,195 )
Loss on early extinguishment of debt                                             --                                                                --                                                                         7,891                                                                --
Loss (gain) on sale of businesses                                                           913                                                                          (453 )                                                                     (30,732 )                                                                     (16,884 )
Interest expense, net                                                                    20,065                                                                        21,333                                                                        85,808                                                                        83,525
(Benefit) provision for income taxes                                 (80,542 )                                                   20,708                                 (42,050 )                                                   48,589  
                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted EBITDA                                                                $        101,832                                           $         95,938                                           $        425,657                                           $        400,354  
                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
 

This press release includes a discussion of income from operations, net income (loss) and earnings (loss) per share adjusted for the loss on goodwill impairment charge, loss on early extinguishment of debt, (loss) gain on sale of businesses, the impact of recent U.S. tax law changes, non-cash tax-related valuation allowances and other tax-related changes as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between income from operations and adjusted income from operations, net income (loss) to adjusted net (loss) income, and earnings (loss) per share to adjusted (loss) earnings per share for the three and twelve months ended December 31, 2017 and 2016 (in thousands, except per share amounts):

                                                                                                         For the Three Months Ended:                                                                                                                  For the Year Ended:
                                                                      ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                            December 31,                                               December 31,                                                                  December 31,                                               December 31,
                                                                                                2017                                                                          2016                                                                          2017                                                                          2016
                                                                      ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Adjusted income from operations
Income from operations                                                                   $         27,935                                                              $         21,943                                                              $        127,775                                                              $         69,162
Goodwill impairment charge                                              --                          --                          --                                  34,013  
                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted income from operations                                                          $         27,935                                           $         21,943                                           $        127,775                                           $        103,175  
                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                 
Adjusted net (loss) income
Net income (loss)                                                                        $         84,194                                                                      ($12,713 )                                                            $        100,739                                                                      ($39,873 )
Goodwill impairment charge, net of $0 taxes                                                --                                                                --                                                                --                                                                        34,013
Loss on early extinguishment of debt, net of tax                                           --                                                                --                                                                         4,735                                                                --
Loss (gain) on sale of businesses, net of tax                                                         548                                                                          (289 )                                                                     (17,919 )                                                                     (15,380 )
Adjustments related to tax law changes                                                            (93,009 )                                                              --                                                                       (93,009 )                                                              --
Tax-related valuation allowances and other*                                      4,905                                   9,609                                  17,050                                  22,564  
                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted net (loss) income                                                     ($3,362 )                                                  ($3,393 )                                                            $         11,596                                           $          1,324  
                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                 
Adjusted (loss) earnings per share
Earnings (loss) per share                                                                $           1.48                                                                        ($0.22 )                                                            $           1.76                                                                        ($0.69 )
Goodwill impairment charge, net of $0 taxes                                                --                                                                --                                                                --                                                                          0.59
Loss on early extinguishment of debt, net of tax                                           --                                                                --                                                                          0.08                                                                --
Loss (gain) on sale of businesses, net of tax                                                        0.01                                                                         (0.01 )                                                                       (0.31 )                                                                       (0.27 )
Adjustments related to tax law changes                                                              (1.63 )                                                              --                                                                         (1.63 )                                                              --
Tax-related valuation allowances and other*                                       0.08                                    0.17                                    0.30                                    0.39  
                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted (loss) earnings per share                                              ($0.06 )                                                   ($0.06 )                                                            $           0.20                                           $           0.02  
                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
*   For the three and twelve months ended December 31, 2017, other
                       amounts include a $2.6 million charge, or $0.04 per share, related
                       to unrecognized tax benefits associated with prior year tax
                       positions taken by the Company.
                        

Adjusted Free Cash Flow Reconciliation

Clean Harbors reports adjusted free cash flow, which it considers to be a measurement of liquidity which provides useful information to investors about our ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities excluding cash impacts of items derived from non-operating activities, such as taxes paid in connection with divestitures, less additions to property, plant and equipment plus proceeds from sales of fixed assets. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore our measurements of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

An itemized reconciliation between net cash from operating activities and adjusted free cash flow is as follows (in thousands):

 
                                                                                                     For the Three Months Ended:                                                                                                           For the Year Ended:
                                                                     --------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------
                                                                                        December 31,                                           December 31,                                                               December 31,                                            December 31,
                                                                                            2017                                                                      2016                                                                       2017                                                                       2016
                                                                     --------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------------
Adjusted free cash flow
Net cash from operating activities                                                      $  64,229                                                              $         80,797                                                              $  285,698                                                              $        259,624
Additions to property, plant and equipment                                                (39,271 )                                                                     (44,036 )                                                              (167,007 )                                                                    (219,384 )
Proceeds from sale and disposal of fixed assets                                             1,749                                                                        16,835                                                                   7,124                                                                        20,817
Tax liability on sale of business                                       14,423                          --                            14,423                          --  
                                                                     -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------
Adjusted free cash flow                                                                 $  41,130                                           $         53,596                                           $  140,238                                           $         61,057  
                                                                     ==================== ======= ====================                      ==================== ============== ====================                      ==================== ======== ====================                      ==================== ============== ====================
 

Adjusted EBITDA Guidance Reconciliation

An itemized reconciliation between projected net income and projected Adjusted EBITDA is as follows (in millions):

                                           
                                                                                                                                   For the Year Ending
                                                                                                                                    December 31, 2018
                                                               -----------------------------------------------------------------------------------------------------------------------------------------------------------
Projected GAAP net income                                       $17       to                        $56
Adjustments:
   Accretion of environmental liabilities                        11                                                                to                                                                                  10
   Depreciation and amortization                                300                                                                to                                                                                 290
   Interest expense, net                                         86                                                                to                                                                                  82
   Provision for income taxes                                    26       to                         42
                                                               ---- -------------------- -------------------- -------------------- -- -------------------- -------------------- -------------------- --------------------
Projected Adjusted EBITDA                                      $440       to                       $480
                                                               ==== ==================== ==================== ==================== == ==================== ==================== ==================== ====================
                                                                                                                                                                                                      

Adjusted Free Cash Flow Guidance Reconciliation

An itemized reconciliation between projected cash from operating activities and projected adjusted free cash flow is as follows (in millions):

 
                                                                                                               For the Year Ending
                                                                                                                                   December 31, 2018
                                                                     ------------------------------------------------------------------------------------------------------------------------------------
Projected cash from operating activities                              $295       to        $345
Additions to property, plant and equipment                           (180)                                                                to                                                                (200)
Proceeds from sale and disposal of fixed assets                         10       to          10
                                                                     ----- -------------------- -------------------- -------------------- -- -------------------- -------------------- -------------------- -----
Projected adjusted free cash flow                                     $125       to        $155
                                                                     ===== ==================== ==================== ==================== == ==================== ==================== ==================== =====
 

Conference Call Information

Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. During the call, management will discuss Clean Harbors’ financial results, business outlook and growth strategy. Investors who wish to listen to the webcast and view the accompanying slides should visit the Investor Relations section of the Company’s website at www.cleanharbors.com. The live call also can be accessed by dialing 201.689.8881 or 877.709.8155 prior to the start time. If you are unable to listen to the live conference call, the webcast will be archived on the Company’s website.

About Clean Harbors

Clean Harbors (CLH ) is North America’s leading provider of environmental, energy and industrial services. The Company serves a diverse customer base, including a majority of the Fortune 500, across the chemical, energy, manufacturing and additional markets, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates throughout the United States, Canada, Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.

Safe Harbor Statement

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. Such statements may include, but are not limited to, statements about future financial and operating results, and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially including, without limitation, those items identified as "risk factors" in Clean Harbors’ most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the "Investors" section of Clean Harbors’ website at www.cleanharbors.com.

 
                                                                                                                                                              CLEAN HARBORS, INC. AND SUBSIDIARIES
                                                                                                                                                         UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                             (in thousands except per share amounts)
 
                                                                                                                        For the Three Months Ended:                                                                                                  For the Year Ended:
                                                                                             -----------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                              December 31,                                       December 31,                                                          December 31,                                       December 31,
                                                                                                  2017                                                                  2016                                                                  2017                                                                  2016
                                                                        ------------------------------------------------------                        --------------------------------------                        ------------------------------------------------------                        --------------------------------------
                                                                                                                                                                                                                                                                                                        
Revenues                                                                                                        $        747,403                                              $        692,113                                                              $      2,944,978                                              $      2,755,226
Cost of revenues (exclusive of items shown separately below)                                                             526,690                                                       496,661                                                                     2,062,673                                                     1,932,857
Selling, general and administrative expenses                                                                             118,881                                                        99,514                                                                       456,648                                                       422,015
Accretion of environmental liabilities                                                                                     2,407                                                         2,648                                                                         9,460                                                        10,177
Depreciation and amortization                                                                                             71,490                                                        71,347                                                                       288,422                                                       287,002
Goodwill impairment charge                                                                     --          --                          --                  34,013  
                                                                                             -------------------- -------------- --------------------      -------------------- -------------- --------------------                      -------------------- -------------- --------------------      -------------------- -------------- --------------------
Income from operations                                                                                                    27,935                                                        21,943                                                                       127,775                                                        69,162
Other (expense) income, net                                                                                               (3,305 )                                                       6,932                                                                        (6,119 )                                                       6,195
Loss on early extinguishment of debt                                                                              --                                                --                                                                        (7,891 )                                              --
(Loss) gain on sale of businesses                                                                                           (913 )                                                         453                                                                        30,732                                                        16,884
Interest expense, net                                                                                 (20,065 )                                  (21,333 )                                                  (85,808 )                                  (83,525 )
                                                                                             -------------------- -------------- --------------------      -------------------- -------------- --------------------                      -------------------- -------------- --------------------      -------------------- -------------- --------------------
Income before (benefit) provision for income taxes                                                                         3,652                                                         7,995                                                                        58,689                                                         8,716
(Benefit) provision for income taxes                                                                  (80,542 )                                   20,708                                 (42,050 )                                   48,589  
                                                                                             -------------------- -------------- --------------------      -------------------- -------------- --------------------                      -------------------- -------------- --------------------      -------------------- -------------- --------------------
Net income (loss)                                                                                               $         84,194                ($12,713 )                                                            $        100,739                ($39,873 )
                                                                                             ==================== ============== ====================      ==================== ============== ====================                      ==================== ============== ====================      ==================== ============== ====================
Earnings (loss) per share:
   Basic                                                                                                        $           1.48                  ($0.22 )                                                            $           1.77                  ($0.69 )
                                                                                             ==================== ============== ====================      ==================== ============== ====================                      ==================== ============== ====================      ==================== ============== ====================
   Diluted                                                                                                      $           1.48                  ($0.22 )                                                            $           1.76                  ($0.69 )
                                                                                             ==================== ============== ====================      ==================== ============== ====================                      ==================== ============== ====================      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                        
Shares used to compute earnings (loss) per share -- Basic                                  56,810                  57,350                                  57,072                  57,532  
                                                                                             ==================== ============== ====================      ==================== ============== ====================                      ==================== ============== ====================      ==================== ============== ====================
Shares used to compute earnings (loss) per share -- Diluted                                56,955                  57,350                                  57,200                  57,532  
                                                                                             ==================== ============== ====================      ==================== ============== ====================                      ==================== ============== ====================      ==================== ============== ====================
 
                                                                          CLEAN HARBORS, INC. AND SUBSIDIARIES
                                                                     UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                     (in thousands)
 
                                                                                       December 31,                        December 31,
                                                                                                              2017                                                   2016
                                                                                                 -------------------------------                     ------------------------------------
Current assets:
   Cash and cash equivalents                                                                                        $   319,399                                         $        306,997
   Short-term marketable securities                                                                                      38,179                                           --
   Accounts receivable, net                                                                                             528,924                                                  496,226
   Unbilled accounts receivable                                                                                          35,922                                                   36,190
   Deferred costs                                                                                                        20,445                                                   18,914
   Inventories and supplies                                                                                             176,012                                                  178,428
   Prepaid expenses and other current assets                                                          35,175                                56,116
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total current assets                                                                         1,154,056                             1,092,871
                                                                                                 -------------------- ---------                      -------------------- --------------
Property, plant and equipment, net                                                                 1,587,365                             1,611,827
                                                                                                 -------------------- ---------                      -------------------- --------------
Other assets:
   Goodwill                                                                                                             478,523                                                  465,154
   Permits and other intangibles, net                                                                                   469,128                                                  498,721
   Other                                                                                              17,498                                13,347
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total other assets                                                                             965,149                               977,222
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total assets                                                                                                  $ 3,706,570                                         $      3,681,920
                                                                                                 ==================== =========                      ==================== ==============
Current liabilities:
   Current portion of long-term obligations                                                                         $     4,000                                         $ --
   Accounts payable                                                                                                     224,231                                                  229,534
   Deferred revenue                                                                                                      67,822                                                   64,397
   Accrued expenses                                                                                                     187,982                                                  190,721
   Current portion of closure, post-closure and remedial liabilities                                  19,782                                20,016
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total current liabilities                                                                                         503,817                                                  504,668
Other liabilities:
   Closure and post-closure liabilities, less current portion                                                            54,593                                                   52,111
   Remedial liabilities, less current portion                                                                           111,130                                                  114,211
   Long-term obligations, less current portion                                                                        1,625,537                                                1,633,272
   Deferred taxes, unrecognized tax benefits and other long-term                                     223,291                               293,417
   liabilities
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total other liabilities                                                                      2,014,551                             2,093,011
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total stockholders’ equity, net                                   1,188,202                             1,084,241
                                                                                                 -------------------- ---------                      -------------------- --------------
      Total liabilities and stockholders’ equity                                         $ 3,706,570                                         $      3,681,920
                                                                                                 ==================== =========                      ==================== ==============
 
 
                                                                                               CLEAN HARBORS, INC. AND SUBSIDIARIES
                                                                                          UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                          (in thousands)
 
                                                                                                                                  For the Year Ended:
                                                                                           ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               December 31, 2017                                          December 31, 2016
                                                                                           ---------------------------------------------------------                     ---------------------------------------------------------
Cash flows from operating activities:
   Net income (loss)                                                                                          $        100,739                                                                      ($39,873 )
Adjustments to reconcile net income (loss) to net cash from
operating activities:
   Depreciation and amortization                                                                                       288,422                                                                       287,002
   Goodwill impairment charge                                                                                   --                                                                        34,013
   Allowance for doubtful accounts                                                                                       7,901                                                                         6,907
   Amortization of deferred financing costs and debt discount                                                            3,482                                                                         3,537
   Accretion of environmental liabilities                                                                                9,460                                                                        10,177
   Changes in environmental liability estimates                                                                           (195 )                                                                      (4,254 )
   Deferred income taxes                                                                                               (83,335 )                                                                      15,184
   Other expense (income), net                                                                                           6,119                                                                        (5,685 )
   Stock-based compensation                                                                                             13,146                                                                        10,481
   Excess tax benefit of stock-based compensation                                                               --                                                                        (1,198 )
   Net tax benefit on stock-based awards                                                                        --                                                                         1,165
   Gain on sale of businesses                                                                                          (30,732 )                                                                     (16,884 )
   Loss on early extinguishment of debt                                                                                  7,891                                                                --
   Environmental expenditures                                                                                          (12,965 )                                                                     (12,170 )
   Changes in assets and liabilities, net of acquisitions
      Accounts receivable and unbilled accounts receivable                                                             (33,764 )                                                                     (15,009 )
      Inventories and supplies                                                                                          (5,002 )                                                                     (16,080 )
      Other current assets                                                                                              16,720                                                                        (8,036 )
      Accounts payable                                                                                                 (10,684 )                                                                      (3,503 )
      Other current and long-term liabilities                                                         8,495               13,850  
                                                                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
      Net cash from operating activities                                                            285,698              259,624  
                                                                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash flows used in investing activities:
   Additions to property, plant and equipment                                                                         (167,007 )                                                                                       (219,384)_
   Proceeds from sale and disposal of fixed assets                                                                       7,124                                                                        20,817
   Acquisitions, net of cash acquired                                                                                  (49,227 )                                                                    (206,915 )
   Additions to intangible assets, including costs to obtain or renew                                                   (1,617 )                                                                      (2,831 )
   permits
   Purchases of available-for-sale securities                                                                          (38,342 )                                                                        (598 )
   Proceeds on sale of businesses, net of transactional costs                                                           45,426                                                                        47,134
   Proceeds from sale of investments                                                                    376       --  
                                                                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
      Net cash used in investing activities                                                        (203,267 )                              (361,777 )
                                                                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Cash flows (used in) from financing activities:
   Change in uncashed checks                                                                                            (5,940 )                                                                      (3,177 )
   Proceeds from exercise of stock options                                                                                  46                                                                           627
   Tax payments related to withholdings on vested restricted stock                                                      (3,149 )                                                                      (2,819 )
   Repurchases of common stock                                                                                         (48,971 )                                                                     (22,188 )
   Excess tax benefit of stock-based compensation                                                               --                                                                         1,198
   Deferred financing costs paid                                                                                        (5,718 )                                                                      (4,031 )
   Premiums paid on early extinguishment of debt                                                                        (6,028 )                                                              --
   Principal payments on debt                                                                                         (402,000 )                                                              --
   Issuance of senior secured notes, net of discount                                                                   399,000                                                                --
   Issuance of senior unsecured notes, including premium                                     --              250,625  
                                                                                           -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net cash (used in) from financing activities                                                        (72,760 )                                                  220,235  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Effect of exchange rate change on cash                                                                2,731                                   4,207  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Increase in cash and cash equivalents                                                                                   12,402                                                                       122,289
Cash and cash equivalents, beginning of year                                                        306,997                                 184,708  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Cash and cash equivalents, end of year                                                                        $        319,399                                           $        306,997  
                                                                                           ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                          
 Supplemental information:
Cash payments for interest and income taxes:
   Interest paid                                                                                              $         93,174                                                              $         88,669
   Income taxes paid                                                                                                    18,682                                                                        29,255
Non-cash investing activities:
   Property, plant and equipment accrued                                                                                16,109                                                                         9,214
   Transfer of inventory to property, plant and equipment                                                               12,641                                                                --
   Receivable for estimated purchase price adjustment                                                           --                                                                         1,910
                                                                                                                                                                                                              

Supplemental Segment Data (in thousands)

 
                                                                                                                                                                                                  For the Three Months Ended:
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue                                                                                                                  December 31, 2017                                                                                                                                                      December 31, 2016
                                                   -------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Intersegment                                                                                                                Intersegment                        
                                                            Third Party                                                      Revenues                                                         Direct                                            Third Party                                                       Revenues                                                                Direct
                                                             Revenues                                  (Expense), net                                  Revenues                                            Revenues                                   (Expense), net                                         Revenues
                                                   ---------------------------  -------------------- ------------------------------------------------------   -------------------- ---------------------------                       ------------------------------  -------------------- ------------------------------------------------------   -------------------- ----------------------------------------
Technical Services                                                    $ 249,198                                         $         40,739                                                              $ 289,937                                         $    225,778                                         $         39,476                                                              $              265,254
Industrial and Field Services                                           165,952                                                   (9,822 )                                                              156,130                                              151,226                                                  (10,218 )                                                                           141,008
Safety-Kleen                                                            302,818                                                  (30,356 )                                                              272,462                                              288,969                                                  (28,683 )                                                                           260,286
Oil, Gas and Lodging Services                                            27,849                                                      391                                                                 28,240                                               25,137                                                      327                                                                              25,464
Corporate Items                                        1,586               (952 )                            634                             1,003               (902 )                                         101
                                                   -------------------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------                      -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- --------------------
Total                                                                 $ 747,403                      $ --                        $ 747,403                                         $    692,113                      $ --                        $              692,113
                                                   ==================== ======= ==================== ==================== ============== ==================== ==================== ==================== =======                      ==================== ========== ==================== ==================== ============== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                   For the Year Ended:
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue                                                                                                                               December 31, 2017                                                                                                                                                                  December 31, 2016
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Intersegment                                                                                                                                       Intersegment                        
                                                             Third Party                                                       Revenues                                                                     Direct                                                       Third Party                                                       Revenues                                                                Direct
                                                              Revenues                                                      (Expense), net                                                                 Revenues                                                       Revenues                                                      (Expense), net                                                            Revenues
                                                   -----------------------------                       ------------------------------------------------------                        -------------------------------------------------                        ------------------------------                       ------------------------------------------------------                        ----------------------------------------
Technical Services                                                    $   980,232                                         $        163,917                                                              $ 1,144,149                                                              $    906,495                                         $        150,240                                                              $            1,056,735
Industrial and Field Services                                             631,216                                                  (37,494 )                                                                593,722                                                                   618,245                                                  (36,030 )                                                                           582,215
Safety-Kleen                                                            1,213,703                                                 (125,817 )                                                              1,087,886                                                                 1,110,727                                                 (114,644 )                                                                           996,083
Oil, Gas and Lodging Services                                             117,252                                                    2,351                                                                  119,603                                                                   116,692                                                    3,191                                                                             119,883
Corporate Items                                          2,575             (2,957 )                             (382 )                                                3,067             (2,757 )                                         310
                                                   -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- --------------------
Total                                                                 $ 2,944,978                      $ --                        $ 2,944,978                                           $  2,755,226                      $ --                        $            2,755,226
                                                   ==================== ========= ==================== ==================== ============== ==================== ==================== ==================== ========= ====================                      ==================== ========== ==================== ==================== ============== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                               For the Three Months Ended:                                                                                                     For the Year Ended:
                                                   -------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------
                                                                      December 31,                                        December 31,                                                           December 31,                                         December 31,
Adjusted EBITDA                                                           2017                                                                   2016                                                                   2017                                                                    2016
                                                   --------------------------------------------------                     --------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------
                                                                                                                                                                                                                                                                          
Technical Services                                                    $  72,686                                                              $  69,554                                                              $  276,592                                                              $  271,176
Industrial and Field Services                                             6,358                                                                 12,564                                                                  43,010                                                                  51,191
Safety-Kleen                                                             66,857                                                                 54,204                                                                 249,811                                                                 219,546
Oil, Gas and Lodging Services                                               739                                                                 (3,427 )                                                                 1,708                                                                  (3,292 )
Corporate Items                                      (44,808 )                                           (36,957 )                                           (145,464 )                                           (138,267 )
                                                   -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Total                                                                 $ 101,832                                           $  95,938                                           $  425,657                                           $  400,354  
                                                   ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======== ====================                      ==================== ======== ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180228005702r2&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180228005702/en/

SOURCE: Clean Harbors, Inc.

Investors: 
Clean Harbors, Inc. 
Jim Buckley, 781-792-5100 
SVP Investor Relations 
Buckley.James@cleanharbors.com 
or 
Media: 
Clean Harbors, Inc. 
Eric Kraus, 781-792-5100 
EVP Corporate Communications & Public Affairs 
Kraus.Eric@cleanharbors.com


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