Clean Harbors (NYSE: CLH) reported Q3 EPS of $0.21, $0.18 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $755.8 million versus the consensus estimate of $770.29 million.

• Increases Revenues 4% to $755.8 Million on Growth in Technical Services and Safety-Kleen
• Delivers Net Income of $12.1 Million and GAAP EPS of $0.21
• Reports Lower-than-Expected Adjusted EBITDA of $123.0 Million, Related to the Hurricanes, Industrial Services Slowdown and Facilities Costs
• Achieves Strong Net Cash from Operating Activities of $104.5 Million; Adjusted Free Cash Flow of $68.8 Million
• Ends Quarter with Cash and Cash Equivalents of $361.7 Million
• Revises 2017 Adjusted EBITDA Guidance Range

Business Outlook and Financial Guidance

“As we enter the final quarter of 2017, we are focused on achieving profitable growth and margin expansion,” McKim said. “We see favorable trends across much of our business, particularly on the waste disposal side. Therefore, we anticipate Adjusted EBITDA growth in the fourth quarter and entering 2018 with positive momentum.”

Based on its year-to-date financial performance and current market conditions, Clean Harbors lowered its 2017 Adjusted EBITDA guidance to a range of $420 million to $430 million. A reconciliation of the Company’s annual Adjusted EBITDA guidance to net income guidance is included below. On a GAAP basis, the Company’s guidance is based on 2017 net income in the range of $11 million to $19 million. Adjusted net income for 2017, which includes the loss on early extinguishment of debt, the gain on sale of business and the recognition of the non-cash tax benefits in Canada, is in the range of $16 million to $19 million. A reconciliation of the Company’s Adjusted EBITDA guidance and adjusted net income to net income guidance is included below.

Expansion of Share Repurchase Program

The Company today announced that its Board of Directors has elected to double the size of Clean Harbors’ current share repurchase program of its common stock to $600 million from its previous authorization of $300 million. As of September 30, 2017, $76 million of the prior authorization remained available; this will now increase to $376 million under the expanded plan. The Company intends to fund the repurchases through its available cash resources.

“We carefully deploy our capital with a focus on creating value and improving return,” said McKim. “Our strong balance sheet and free cash flow generation afford us the financial flexibility to continue to return capital to our shareholders, while evaluating acquisition candidates and opportunities to invest in the business. Given our current investment profile, we believe a substantially expanded repurchase plan represents a meaningful value-creation mechanism for our long-term shareholders.”

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

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