- Clean Harbors Inc CLH reported fourth-quarter revenue growth of 41% year-over-year to $1.12 billion, beating the consensus of $1.02 billion.
- The operating income increased by 33% Y/Y to $82.2 million, and the margin was 7.3%, down by 40 bps.
- Sales by segments: Environmental Services $908.12 million (+36% Y/Y), reflecting the HPC acquisition, robust demand for disposal and recycling services. Safety-Kleen Sustainability Solutions $211.28 million (+64.3% Y/Y).
- Adjusted EPS improved to $0.89 from $0.63 in 4Q20, beating the consensus of $0.68.
- Adjusted EBITDA increased 23% Y/Y to $174.3 million, and margin contracted by 220 bps to 15.6%.
- Clean Harbors held $534.3 million in cash and equivalents as of December 31, 2021. The company generated cash from operating activities of $546 million in FY21, compared to $430.59 million a year ago. Adjusted free cash flow was $326.3 million.
- “Favorable market dynamics for both our operating segments drove our performance – including high demand for hazardous waste disposal, industrial services, and re-refined products,” said Alan S. McKim, Chairman, President, and CEO.
- Outlook: For Q1, Clean Harbors expects Adjusted EBITDA to increase 30%-35% from the prior year.
- For FY22, the company expects Adjusted EBITDA of $765 million - $795 million, Adjusted free cash flow of 250 million - $290 million, and net cash from operating activities of $560 million - $620 million.
- Price Action: CLH shares are trading higher by 1.44% at $94.65 on the last check Wednesday.
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