Clean Harbors, Inc.
) reported third-quarter fiscal 2012 earnings of 54 cents per
share, missing the Zacks Consensus Estimate of 55 cents as well
as the year-ago quarter's earnings of 70 cents.
Adjusted earnings in the reported quarter excluded a pre-tax
charge related to the company's senior debt refinancing.
Including the expense, earnings were 23 cents per share compared
to 70 cents in the year-ago quarter.
Total revenues declined 4% to $533.8 million from $556.1 million
in the year-ago quarter. Revenues lagged behind the Zacks
Consensus Estimate of $550 million.
Cost and Margins
Cost of revenues dropped 3.5% to $372.9 million in the quarter.
Gross profit fell 5% to $160.9 million. Consequently, gross
margin went down 40 basis-points (bps) to 30.1%.
Selling, general and administrative expenses decreased 8.2% to
$60.3 million. Operating income dipped 15% to $56.7 million.
Consequently, operating margin contracted 140 bps to 10.6% in the
Cash and cash equivalents were $523.6 million as of September 30,
2012, compared with $260.7 million as of December 31, 2011.
Long-term debt amounted to $800 million as of September 30, 2012,
compared with $524.2 million as of December 31, 2011.
For 2012 the company revised its revenue guidance in the range
of $2.15-$2.16 billion, down from the band of $2.20-$2.25
billion. Further, it revised EBITDA estimates downwards to lie
within $375-$380 million from the previous range of $400-$410
CLEAN HARBORS (CLH): Free Stock Analysis
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For 2013, the company envisioned revenues to remain in the band
of $2.30-$2.35 billion. EBITDA is expected to vary within
Clean Harbors is set to acquire Safety-Kleen, Inc. the largest
re-refiner and recycler of used oil in North America and a
leading provider of parts cleaning and environmental services.
The transaction of $1.25 billion is the largest in the company's
history and is expected to close by 2012. The acquisition will
increase its debt liability and also raise its interest expense
Clean Harbors retains a short-term Zacks #5 Rank (Strong Sell).
The company is the leading provider of environmental, energy and
industrial services throughout North America. It serves more than
60,000 customers, thousands of smaller private entities and
numerous federal, state, provincial and local governmental