Clean Harbors, Inc. (CLH) Tops Q2 EPS by 4c, Sales Miss

Clean Harbors, Inc. (NYSE: CLH) reported Q2 EPS of $0.47, $0.04 better than the analyst estimate of $0.43. Revenue for the quarter came in at $858.5 million versus the consensus estimate of $873.54 million.

Sees Q3 revs of $890-$910 million versus the consensus of $923.9 million.

Other highlights:

• Achieves Adjusted EBITDA of $135.8 Million; Margin Increases to 15.8%
• $75 Million Cost Reduction Program Proceeding on Plan
• Technical Services Segment Grows 5% on Continued Safety-Kleen Contributions
• Company Raises Low End of 2014 Adjusted EBITDA Guidance Range Based on Cost Savings

“We rebounded from a slow start to the year and moved into what is historically a seasonally stronger period for the Company,” said Alan S. McKim, Chairman and Chief Executive Officer. “Our top-line results were slightly below our guidance range, hampered by some project delays and reduced activity in the Oil Sands region as well as a larger-than-expected revenue decrease in Oil and Gas Field Services. Conversely, we delivered better-than-expected margins and exceeded our Adjusted EBITDA guidance for the quarter, benefiting from cost reduction initiatives, a focus on high-margin opportunities and strong contributions from Technical Services. Our Adjusted EBITDA margins increased to 15.8% – 140 basis points higher than a year ago.”

“Technical Services delivered an outstanding quarter with Adjusted EBITDA growth of more than 20% on 5% revenue growth,” McKim said. “Incineration utilization reached 95% in the quarter as we continued to drive incremental volumes from SK Environmental Services. Oil Re-refining and Recycling also was a strong performer, achieving double-digit growth in revenues and profitability. Industrial and Field Services continued to be affected by the negative impact of currency translation on our Canadian operations, as well as the ongoing project slowdown in Canada, particularly in the Oil Sands. Oil and Gas Field Services experienced continued softness in the seismic business due to market conditions, as well as the unfavorable currency translation effect.”

For earnings history and earnings-related data on Clean Harbors, Inc. (CLH) click here.

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