Stock to Target: Clean Harbors, Inc. (NYSE: CLH)

Shares of Clean Harbors, Inc. (NYSE: CLH) closed the trading at a price of $66.37 with the positive/negative change of -0.73%. In the past session approximately 329,996 shares were exchanged against the average daily trading volume of 446,283 shares. The stock touched to the maximum level of $67.99, and it reached the lower level of $66.27 in past session. The stock’s market capitalization has now valued at $3.723B. The stock low price in its 52 week is $44.75 per share while $72.50 as the 52 week high price.

Clean Harbors, Inc. (CLH) recently reported financial results for the second quarter ended June 30, 2018.

Second-quarter revenues raised 13% to $849.1M, contrast with $752.8M in the same period a year ago. Income from operations grew 38% to $64.4M from $46.7M in the second quarter of 2017.

Net income for the second quarter of 2018 was $30.7M, or $0.54 per diluted share, contrast with net income for the second quarter of 2017 of $25.9M, or $0.45 per diluted share. Second quarter 2017 net income included the after-tax gain on sale from the divestiture of the Company’s transformer services business, an after-tax loss on the early extinguishment of debt and a non-cash charge from tax-related valuation allowances in Canada. Not Including these impacts, adjusted net income for the second quarter of 2017 was $13.7M, or $0.24 per diluted share. Results for the second quarter of 2018 and 2017 included pre-tax integration and severance costs of $2.3M and $1.8M, respectively.

Adjusted EBITDA (see description below) in the second quarter of 2018 raised 16% to $139.6M, contrast with $120.7M in the same period of 2017.

“Within our Environmental Services section, incinerator utilization in the quarter was 90%, contrast with 87% in the same period of 2017,” McKim stated. “We substantially improved our mix of incineration waste streams led by record drum volumes and growing contributions from our chemical and manufacturing verticals. Our Industrial Services business benefited from a healthy turnabout season in both the U.S. and Canada. We continue to be encouraged by the early performance of Veolia’s U.S. Industrial Services business. While there were no large emergency response projects recorded in the quarter, we won a steady stream of smaller projects across multiple regions within our Field Services business.

Business Outlook and Financial Guidance

“We concluded the first half of 2018 with strong momentum in multiple markets, and we are optimistic about our prospects going forward,” McKim stated“Within Environmental Services, we have a considerable backlog of projects in our pipeline, particularly within the chemical industry, which should drive additional volumes into our disposal facilities. The acquisition of Veolia should continue to strengthen our Industrial Services business and amplify the growth opportunities for our specialty lines of business. In addition, the rise in crude prices and greater drilling activity are supporting a mild recovery in our energy-related businesses. For Safety-Kleen, the focus in the second half of the year will be on further enhancing margins through pricing strategies, continuing to advance our blended oil sales programs and capitalizing on cross-selling opportunities.

“As a result of our year-to-date performance and favorable trends in our key markets, we are increasing both our Adjusted EBITDA and adjusted free cash flow guidance for 2018. We anticipate a strong second half of the year with consistent profitable growth,” McKim concluded.

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 (loss) 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 stated 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 contract, as described in the following reconciliation showing the differences between stated net income and Adjusted EBITDA for the three and six months ended June 30, 2018 and 2017 (in thousands):

Adjusted Free Cash Flow Reconciliation

Clean Harbors reports adjusted free cash flow, which it considers to be a measurement of liquidity that provides useful information to investors about our ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities not including 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 sale and disposal 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 stated by other companies.

Beta factor, which measures the riskiness of the security, was registered at 1.07. Net profit margin of the firm was recorded at 3.70% and operating profit margin was calculated at 4.80% while gross profit margin was measured as 29.80%.

 

Francisco Morris

Francisco Morris- Business and Transportation  Francisco Morris graduated in 2007 from reputable University majoring in Economics and Accounting. In the past years, he has gathered an immense amount of experience and written for other financial sites and published independent investment research, primarily on initiative companies and new entrepreneurs. He has been working in the writing industry for the last 4 years. He has a motivational persona and trains staff on the finer points of writing, editing and getting the news out on time. Address:  4622 Larry Street Milwaukee, WI 53213, United States of America Phone Number:  +1- 414 955 8172 Email:  Francisco@dailynewsgallery.com

Leave a Reply

Your email address will not be published. Required fields are marked *