CLH - Earnings call transcript Q4 2019

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Operator

Greetings, and welcome to the Clean Harbors, Inc. Fourth Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure Clean your Harbors, my General Michael now for Counsel Inc. is to host, introduce McDonald, It Thank you. Mr. McDonald you may begin.

Michael McDonald

Officer President Thank everyone. you, Mike Buckley. Chief Battles; Chairman, Relations, of Financial With morning, McKim; Executive and Jim me on and and Melissa, today's call Officer, and Chief Alan S. good Investor EVP SVP are

considered are of and forward-looking Litigation historical to follow you for call today's invite not meaning the are Slides within Reform are Matters statements posted discussing we of we facts Securities that on are XXXX. our website Private today along. the Act

The Participants our are as than statements, reporting of our place to results is any actual risks of company on no the reliance obligation only publicly which XX, in February on and filings revision XXXX. Information other of this operations cautioned through these in made not or SEC to period. today, today's undertakes potential to release revise opinions included affect reflect could call results made the statements management's filings. concerning factors undue that

references today's non-GAAP addition, include to will discussion measures. In

Clean in comparison its GAAP our Reconciliations information additional non-GAAP provides Harbors the presentation. directly of most to website today's available appendix of news measures in the release, measures performance. and consistent and are believes comparable that today’s measurement such historical an on of

over CEO, Alan our the McKim. to And call now, turn like I'd to Alan?

Alan McKim

us. Thanks, Michael. joining everyone. for morning, Good you Thank

metrics lows. rate our financial discussing year incident was X, safety performance. Slide on the want and recordable XXXX with other record our proud total our before I that I'm to history in to report Starting safety results, at speak to key our best

positive each each uninjured safety us have focus And on that results have better our every us and priority work force employee's five seen years, helped company year. goes we the is day. drive Over our the protect for highest at past better and our real home

growth landfill of in strengthen services. of QX, XXXX achieved project concluded expected combination and service volumes, segment another incineration which than led financials, our better higher to environmental and with field a Turning by profitable our quarter wins we on results

the and business group and sluggishness Oil. the our in On field offset branch SK some and weakness top-line service energy-related industrial SK

were X% drove mix the an favorable Revenues point growth and basis and adjusted quarter in EBITDA XXX for up margin. a business of X% improvement

set increase For the but and not X% we full did our year. who year, cash XX% records, record so our to belongs us team of a in for adjusted generated EBITDA financial by $XXX.X million. on entire adjusted some grew safely flow Credit all free results helped only revenue

Turning to softness our services segment fueled environmental basis results services. as High our industrial facilities field and some the services segment as margin improvement XX% top Revenues point on EBITDA the X. modestly straight up for in XXX energy and beginning single-digit third adjusted with Slide growth were offset quarter.

As our it a volume story facilities, was it quarter. relates largely to this

year incinerators XX% Incineration increased utilization both and landfill a projects to sizeable landfills. fed was that up We from ago. had XX% our tonnage some and

to streams. per XX% for mix year largely which the ago year for average XXXX of now from effects our price did QX project pound we reflecting of primarily a price was volume, of significant that price higher a full that XXXX handle a average QX flat per pound due large facilities in with waste a delivered Our low incineration rose amount at incineration can the enhancements value in

XX year, emergency no the ER While response recorded the for revenue. approximately of there million we were quarter, events in major full

base blended drop year a lower the of a services, from weakness X% early re-refining EBITDA margins oil and certain was X, of XXXX. the in IMO and end Slide value Safety-Kleen to Moving byproducts a pricing. pricing days of in pricing year and oil X% and ago to on business core which in growth up our revenue and dipped due branch SK in offset our declined process and segment our SKO in Adjusted

Parts volumes healthy that gallons charge-for-oil year million QX's from was XX collection Waste higher than were were year with rate. a washer oil at and ago. up services a ago above rate a

Our and direct volumes approximately by XX% in X% QX. lube of sold grew business in volumes for accounted quarter the the total

nearly for QX products our year a from blended blended the volumes will Total expand. sales year of believe grew were XX% we product to continues market in steadily direct the as And we continuously grow volumes full ultimately And sustainable for our long-term this for by sales goals up XX% ago. and lube business. XX%, reach

differentiator Turning our X, to employees our of and team integral our strategic for success competitive Clean a Slide outstanding update Harbors. is to on

substantial workforce. During our and more workforce in we incremental we contributions retirement raising our spend as made compensation. XXXX, increases including our of XXXX and as millions benefits well healthcare resulting all In higher in again costs on absorbing healthcare XXXk investments are greater employee and XXXX,

we momentum. pursuing we In prior and years, taken a than that want a these steps forward three significant Profitable in believe more of investments. the savings remains growth focus array we we've XXXX, XXXX, past primary cost over as broad to extend us offset we're years have will in that will for

mix and In intend cornerstone pricing network service opportunities. success. Our to facilities the will selling through along continue and greater further disposal recycling leverage coming our of our the project cross initiatives volumes and locations with we to year, be

products the hazardous to services. expedite approval stages delivering to our we to technology our platform great customers of early And disposal in our request out with holds the AI to day rolling our thinking to the process easier we acceptance approach always and directly for been customers Safety-Kleen it Harbors services and out interface business make our and taking intend we're for enable rolling Clean profile technology and as in relates eCommerce much addition, forward online. new to in of do services, company think next industry waste and We've eCommerce have us. some with. By a to more promise our systems products to use also waste our We're delivery

our own to experience eCommerce services well. to and platform be The waste enhanced able use Customers will more ability will much deliver improved or their be schedule orders our pickups. as customer manage to be

capitalizing high low shifting the year strategy Another brought XXXX. changes market this key oil. oil in seen fuel on on sulfur drive conditions is already of rule the for well by as the IMO value We've fuel as sulfur

markets oil However, remain oil by flux base pricing of global in crude disruptions the the and with impact. state a virus Corona caused today

with took ships X, effect January the until come the March regulation rule. While have to in into IMO compliance

have real clarity the of couple impact will any think XXXX for from on months. IMO don't any we So another

the interim, spread. In we're our aggressively managing

to fuel With high push decline last the sulfur rates motor for in that increasing oil our year, for charge oil and collection used we're began continuing on late maximizing volumes. oil our

to such full XXXX as take PFAS pursue growing in of expect sustainability emerging and addition, our we growth market the advantage of acceptance opportunities In offerings.

larger of and it of Clean we recent central why And Sustainability we brand, provide as part a of part our largest story that call, services marketing being outlined DNA years Sustainability broad our is years focused on I only which as of the our become go a our core collector QX we beyond XX sustainability waste oil. to in Harbors expect for our theme it is ahead. to campaign. recycler array of and made

and four of we non-core our Slide capital in In strategy. shares. evaluate repurchased X, invested we XXX regularly to added continue Canada million capital just Turning elements our divested in allocation Western assets all bolt-on business small successful to acquisitions, over XXXX, two a

reducing In strong a balance terms of refinanced cash tranche our And balance, -- we'll overall cover in to Michael entered level costs. in a strong the with and XXXX his XXXX look we final large debt, as our capital. due with was of remarks, that will returns sheet highest generate we borrowing that

EMR, anniversary record both dynamics In free we EBITDA, our have remain the summary, anticipate to that I'm proud it's XXth with XXXX operating achieved exciting to and happens this strong flow, we in which company The something of TRIR and adjusted plans also celebrate as underlying personally, me a and teams our we adjusted in milestone positive lots XXXX. for that year. segments a cash really of be

it that, let over turn Mike? Mike Battles. So to me would

Mike Battles

everyone. Thank you, and good Alan, morning

efficiencies. X, prior of year. the our good statement, by profitable income in Alan grew revenue as growth we dividend initiatives We business, X% quarter, in delivered QX. indicated, and XX.X Turning in from increased a represents Adjusted experienced growth million. mix to XX.X operational reflects Slide the by pricing million which This we

expenses. work in California profit costs year gross a due we an the absolute wildfires perspective, labor, a to and including insurance the related decline from higher and associated business a to percentage on QX with basis dollar saw mix From healthcare ago XXXX and project both

rising, type casualty. a for in insurance on are and property, particularly many we excess auto every touch like to insurance nearly costs companies, Just moment, seeing of

to as incident higher these We will incidents continue insurance safety continue to to and drive our saving initiatives offset well lower costs focus severity. to to on as cost

year year-over-year. compared declining point which were quarter corporate within terms. flat cost ago, with We with in cost costs and we with driven XXX million, QX SG&A lower full the a both a expenses to saving significantly drove initiatives, ago. moving with to associated In a increased essentially year had improvement in considerable year profit jurisdictions basis, charge significant approximately On item. margin, series revenue by a of that one-time higher percentage bankruptcy basis XX gross segments had gross asset compared even improvement by debt compensation lower XXXX, the reduced million down of a bad a customer due by incentive XX.X operating and employees

were year full basis, a On points. XXX down SG&A basis expenses

expect slightly For a dollars the from onetime on range, absolute year. given XXXX, prior would up of the the guidance basis year benefits our to we SG&A last experienced and in midpoint be percentage using up we

capital while Depreciation we've slightly year we slated the from tuck-in and in up and lost assets it some full down was as XX.X was million spending. amortization added acquisitions to for QX

million, For the XXXX, past two consistent years. appreciation to the of range is we million expect XXX XXX which amortization in a with and

Income is and combination QX our income the same-story million revenue annual with from operations spend. also to reflecting operations our growth year SG&A $XX.X in as This improved the the increased XX% rose full of XX%. from

in a basis GAAP QX $X.XX a year ago. EPS versus $X.XX On is

$X.XX. was EPS adjusted Our

fro and XX% For $X.XX $X.XX the versus full $X.XX EPS in adjusted in year EPS rose to XXXX. XXXX, the year $X.XX prior was

Slide million line Turning expectations. balance end totaled in XX, from at up with XXX.X and more than year September marketable short-term million cash on the sheet securities to and our XX

year, full increased sheet on by the the For we balance million. cash XXX

Our long-term X loan. about to prior down were obligations debt year from mandatory X.X primarily end ago our from a -- the XX term billion due current year at under year and million payments

balance strong a is fixed of and year at cost year a debt on at average of X.X% we variable the sit weighted debt. net about levered Our conclude and end debt through sheet X.Xx healthy We a with mix basis.

net million Turning CapEx to to from flows slightly million. free was disposals cash XX.X a from adjusted in on net year of resulting XX, operations ago flow cash was Slide up in cash QX up XXX.X annual with the and XXX.X million. XXX.X in we of flow CapEx XX.X flow in From free XXXX our spend perspective cash cash was of quarter free million line ended an adjusted guidance. with million

CapEx XXX expect mid-point million, and to For essentially be number million the excludes our to investments spend corporate which headquarters year. to XX of net of purchase is in XXXX, prior XXXX. to million at related the the the XX flat XXX capital in This made million of with we

sense in this as to our have Given it came market. property, we economic on make this the recently the of headquarters one-time made plans, it purchase expansion

quarter, of During $XX.XX at stock a our an X million. of price for repurchased total of we XX,XXX a share shares the average

shares to XX.X an continue For be the stock opportunistic our buyback full we $XX.XX total based the remain a a returning of and XXX,XXX capital our of on We shareholders will share price program back committed at price. to average for year, bought through to million.

The $XXX we Moving represents market results that increase to to XX, midpoint based X% million. expect range the XXXX range adjusted current Slide on $XXX and from million in of of a XXXX on guidance our XXXX. conditions, EBITDA

growth expect steady with to we growth operational line perspective, full quarterly year QX efficiencies. be pricing gains adjusted and a EBITDA the with a from business, in guidance our at in Looking in

services, streams environmental lines a our regions. Here's growth EBITDA facilities, pricing be XXXX. driven perspective. projects expect increase continued single to XXXX across by year increases will various guidance waste percentage from adjusted value our business in higher This in by In full translates and in gains, a segment low digit of we multiple

adjusted anticipate EBITDA digit we Safety-Kleen, to the high in growth For range. mid single

pricing to efficiencies. business expect SK see We growth in steady profitability the to branch and operational the

continued and Safety-Kleen in increase based and spread effective expansion more an expect We on oil blended management sales.

Our IMO to determine from impact. guidance early any too include today as does favorable its is and not impact XXXX it

workforce. by of corporate EBITDA our million. we single in benefits XXX to to working in -- XXXX free now from adjusted make digit our continue investments to the expect XXXX negative as low range segment capital in assumptions, grow percentage increases we segment, we due current corporate Our Based expect adjusted and in our guidance cash million the on to XXX flow a

solid our QX and company conclusion met throughout our our delivered our and deliver flow an to to all with strong Overall, hit performance excellent Margin quarters. goal as year exceeded was cash a In the summary, consistent or guidance were promises generation XXXX. in four and the year targets. we on

XXXX and Alan with healthy favorable business momentum trends. As outlined, of core some our entered lines

profitable Clean of growth profitable in expect We year another another XXXX. for Harbors year --

that slate intend mention addition a investor conferences events, Investor an than host to in in more back dozen year. wanted half the of to normal finally, And of our addition, Day in we full this to and I

strength, targeting we'll our date currently a and management will our event, some save for longer term growth are targets we mid-September, the team company. for broad strategies outline for showcase announcement provide but issue this we business each location. a and We date the At finalize once

that call With Melissa, for open questions. please up the

Operator

Thank you.

the session. comes be now Instructions] with first from Noah will and the proceed question. line Company. [Operator with question We Please your question-and-answer conducting of Kaye Oppenheimer Our

Noah Kaye

sort the do the appreciate right about For still on should on large What double-digit is on mix impact pricing guide? for thinking the growth out this got you trend What have quarter. we incineration range of year. price that But incinerator, price calling XXXX? for be you the project you

Alan McKim

day, think XXXX. growth price, into mix, calls, of And said we've previous And so continues I think a and that had at I mix steady price. as two-thirds the both the of in end that we one-third

to strong of and think do as forward. that did XXXX price on we that customers I streams prices increased do a QX entered have We're manage of XXXX. waste kind that. and mix we that to of continue in value we kind still we going higher we'll going and our And

Noah Kaye

should of just EBITDA How about So sustained ES? that give in alone if XXXX. really maybe we should that's you're some growth offsets about within then, you nice the thinking think that maybe

Alan McKim

of services we'll some in that incinerators mean have in in hold tried good think the the business. that expand business line it. lot We're out I that. growth that We've We've a had Atlanta on struggles done and do XXXX to well. out to in costs really margins more planning industrial not the take and continue had of as about we We're manage profitably. business to some trying and

Noah Kaye

bit about this to mean, under prepared I a little it's generating you thoughts are be bit to sort share about, Excellent. the going you repayment, cash debt bias really point? it a this a with At as now, us level, what you're levered, today, sits do high year those going tell your it cash? talked this you the question on at but you in high all a or remarks, M&A the lot prioritizing with is just Can balance. repurchases, the of where year, a cash at exiting of little trajectory

Mike Battles

mean, I price we positioned that. at do we to a would like significant a do well and clearly are to acquisition really reasonable

deal to as a prior businesses. also of the lot And one businesses sold came have mentioned, lot do maybe actually books couple a that yesterday. well have a some been we been We off of been certainly There's at one We acquisitions certainly we I deals. looking think that sold and trimming we're positioned We've through of around. flowing of that.

ourselves things laser to really cash. our position on I my think be be the to Safety-Kleen and opportunities doing really, we're would business environmental focused businesses. looking at all top for That the priority those list and expand our business of through to the certainly So acquisition

Operator

Thank you.

your comes proceed Our next question. with question of Please Baird. with line Luke from the Junk

Luke Junk

oil far regarding here, And purchasers right just export appreciate oil how just utility you're at wondering now? on curious anecdotally a vein, still state the market you IMO from year. So it's are the used seeing ground the this sulfur other question seeing fuel blenders motor a just what similar XXXX, for so in first of least I and but of early

Mike Battles

quite into also New start, Yes. relates it we here begin looking oil oil sulfur saw prices as suppliers. fuel IMO I things really high favorable can major we base in oversupplied. we really base really XXXX, the come and Year came with rising really oil, to all the become started value down And seeing

into significant we the like products in products, sort or what there's decline, other oil. oil over some it everything significant or certainly fuel last well was then, weeks, So whether on crude think had six as I fuel and forecasted. finished jet as And be playing decline of a base disruptions oil oil been crude

So it's anticipate March. come a compliance end really after little full for XX particularly need with ship to be us will to in no for bit owners all what difficult the the because IMO result exemption

still But And year. XXXX IMO us you've just got right whole of would crisis sort now. global, of going given sort from on it's uncertainty this what this benefit we about

for long. for side, us. The On very oil the used constrained. very is are motor very outlets oil Certain parts are the volumes markets strong of

sure that dried lot to a up provider not -- We customers are motor they that's be we have will keep used into oil there informed to for communicating the operation. because going with a service our their know them of making be for outlets re-refining that

Luke Junk

noted Alan, obviously along I this a oil so more line line, there's guidance what's been a concerns into prices similar for help of quite today? year increases you you of bit sitting pricing great. base movement in a starting That's to then, ago And the here far as corona virus us base just baked so recently. or Can now, oil in some around creep guess month understand

Mike Battles

take that Luke, one actually. I'll

say base it kind so increases and of stands as kind And I pricing today oil to the we've -- tried the price decreases. price of with

As kind the that recently can change we do it of take always obviously very but and to very drops try you we will. if happened our try where up is today that price this, includes tomorrow, to guidance

Luke Junk

question, helpful. in And -- number don't I then last That's have if know here a Okay. --, terms the of you just

Alan McKim

I more wanted thing, is very one base stress Luke the that business to strong.

to to talking it continue going the very little whether business, we're really we ES and anything us see talk about branch out manage stuck would on be on anything the spread that are strong business, the be -- we're and be business, of So and think see that, and don't the whether rest IMO pause we've don't about we SK very that's we IMO. our to get going we very, that We out XXXX. there there a and bullish cause it

that. So on We're concerned IMO. has I base the to price be the really for to very ability good base guiding dropping there all and our changed want we're not here manage oil it. spread, clear and underlying positive that that and We're very But nothing about business stuff.

Mike Battles

January majors I our pricing So, and at was in based And starting even pricing think declines we're point. when that went we and approved up put up price on and to those all together though see some the December went got today. budgets that in

was on which based Our year price our price. the for old in that forecast and

pretty good. probably doing we're So

Alan McKim

okay. probably We're

Luke Junk

could just market's actions opportunity the what question capacity? those and just Okay. internal That's to value both up additional your from helpful. the continue base last waste in to expand any giving you here that taken into the network, wondering to you on if drive free on then of high terms streams And you've business,

Mike Battles

Yes.

ways to or capital, invest feed really We to going and our debottleneck continue it we're in continue in at incinerators get And two next capacity processing to for over three years, more add the throughput. more be to that look whether shredders or systems. to

into year. waste a backlog have very large We of coming the

for customers difficult seen up, and And coming our quite at waste inventory volumes really now. a frankly, the strong Our looking strong is is strong. The we've deferred chemical are very and our streams. right lot us some of is demand revenue And plants real industry those chemical online. very for

I our as of of we we volumes So incinerators incineration through getting strong backlog expectation a think of our to on network have there. more at continue very ways look because

Operator

you. Thank

question Please Stifel. of next from with Hoffman comes Our proceed line your Michael with question.

Michael Hoffman

favorite my Mike question. again asked

you -- plan 'XX conversion and So in your improved flow I quite your Where you're were for to to ops of from sales free XX.X% has a nicely. five and cash is of X% up in remain of then would where XX. almost cash cash mean EBITDA sort actually of this rolling XX. are now go? you to flow could year we going a How

Jim Buckley

of mentioned we bills that by lot -- to Yes. lot kind That's better to lot that to that systems door. the of by of, function the effort kind get a in have come a processes results. to I door hard and of Alan of a as in customers it been is team out remarks of a cash and kind there's starting to in really get see the the here think his Norwell And and and drive in and of the you're -- work really takes led the

type bills our down. better as We'll terms of cash I'm capital better getting on our Alan driving, about, conditions faster working conversion that talks getting focus and continue to a out see and and hopeful such, having that. better and as technology and faster,

I'm pleased progress with, decent area. some that we've as So you really in say Michael, had

conversion, cash just flow to hopeful dividend I'm as far that continues. As

Michael Hoffman

Okay.

to of at So right? also mean efforts Right? there's predictable look a repeatability operating around demonstrating -- combination of the it. assets too, financial ratios leverage and is that's that's the sort to the the these upside that's I way of fixed controls of

Jim Buckley

past see in three now the ROIC in it, calculate increase we past how and few you over you years had it's in calculate years. a too, matter metrics actually we've no it, or two ROIC over the it our how doubled huge And

Michael Hoffman

Okay.

on So point is the a leverage next of then that. question

We've what advantage on the in a away. are try half the at practically of companies of your have versus given you, money. free. that's mean of that fixed swap Can't you've on money money year are giving year your mix position raised I and So fixed you got a XX X.X% almost done to in and variable the things take in nature? debt that last markets year, that

Mike Battles

is in this answer, do it we we large, we sure new yes. Michael, When if event leverage was place, put so the short do The to that about made something we Alan a that that light have had that. transactional would just really talked earlier covenant to leverage capacity

And we've our so the done lower as when to we three financed like all done, know, bit. quite last years, rate, large we've you our debt, refinancings a interest

variable And that and so a we have rate. of XX% XX% good we're really fixed, proud

we And of god so experienced the still news today. some

And market there out sense that really that the strategically there's and opportunity for financially. makes so hopeful if an that both I'm

You with dry if that. you be to powder, know, we'll there the go execute will, on to go

Michael Hoffman

question. so the next well, into lay of kind a right, up All that

for Harbor? sold. of very a curious got XXX there's big don't revenues often. hazardous million Clean about just in assets that come available very waste chunk what So Because appealing I'm was in

love. assume going I So you

that So looking for wasn't you what if it? are

Alan McKim

to the assets. might Michael, And, We're value opportunities for we they've acquired changed right able other opportunities and from the And a company. XX deal private certainly other of was not one to that really we but that strategy standpoint. can. we a through bigger together hands subsequently better be players we're are there very company clearly a our know, industry. deal out you years looking just from there to in put and felt the all the bankruptcy's at -- we're them public, at familiar with strategic well. we by, that, the equity that And ownership looked as last those over assets know those We've

Michael Hoffman

spent we you Can you amount, capacity because Okay. sense that statement in where of Alan, been mean, new chemical dose frame that the And a then, was you developing Gulf have dollars has had in and that hundred I fair about from couple million think good. a a your in Coast. comments activity here,

not the in do that line and how and is or particular the in about think current So, around may then where in virus may chemical Corona environment that trend portend?

Alan McKim

I we air we many handle and and call in higher. what out our capacity burn constrained can much pollution, a permit would we're think volumes have cases never to control from handle streams And standpoint. real standpoint, the due been to how difficult direct

ways meet finding gas competitors, And know driving don't we're able There's to being real not what plants is it's that and requirements And at some favorable strong we in not whether are in online. a other see speak. as can well increases for very outlets where they're this that, it. that coming produce disruption some environment volumes customers so supply have economy not. our that so, that's overall brought we it's back the We to capacity more that be a seeing natural we and There to will think it looking or But chain expand that are for States just being with not generated. the additional we are incineration because chemicals. forecast to we

Michael Hoffman

Okay.

that and OA not is Gum you out come may the Springs about, phrase question the what reaction of or think may what's transaction. let's your So, buying to

Alan McKim

Springs thing Gum The and capabilities competed is, we've only with for I and years would that the with the they say years permits have.

years. from handling change, to and which other similar think they on but price kiln change. it's with competed kiln on cement compete very a cement now. would don't They with think the see and for low a competed as there. that, part I mix much streams. we've so of is thing us, we've right are some Is Michael But, kilns We out hazardous with it do I an like a And lean I that's something water ownership waste probably comment only that the and

Jim Buckley

liners. you And may spent know, they're hot to to required Michael take as that continue the

they're And bit quite they're is tied those those, transaction. of time. up in competed committed on, period we be that that those this a little And for so, there doing with to but going to

Mike Battles

an that more It lot uses a It play was play almost capacity. it landfill incinerator seems Yes. like of of around PFAS. a

Alan McKim

anticipate would that. Yes. I

Michael Hoffman

so the of ion reverse active more potentially what asset that to are osmosis even equipment I'd around call side or -- end, the and you perspective or carbon as And sort at or either granulated of well. fixed exchange looking from PFAS that tackling of approaches sort

Alan McKim

and at not the land this really treatment side much we're PFAS We're into more Yes. point. filling

you some equipment so after that large the And now. the But, are, very is we Right equipment. are our PFAS going real projects out water treatment Midwest other and some seeing opportunities. focus demand then our seen. not, in markets remediation we've our large There on know,

so help part whole industry is expansion services of And and side needs of to the meet making point, we're of business. the treatment that the be of going to your to really for the products that

Michael Hoffman

And right. visibility any re-refining you when on oil of December? there used out for one be supposed the market will analysis be me. out All Do late? DOE Was to have in last

Jim Buckley

pushing we've question not and the late are -- no, to we answer They is but Michael, today. to answer your been specific your an do estimate have

Alan McKim

is nothing's yet so it it's some we Yes. been has body, study as know regulatory you Michael, complete, but, released the with know.

Michael Hoffman

people display of up and to was I had them. one teams, way the PFAS were they I surrounded. and Okay. by their they were yesterday Lots your of saw conference at talking a

Alan McKim

about lot out a uncertainty There's forever those certainly chemicals -- hearing you're that with Yes. of there.

Jim Buckley

for would get that's lot a definitely We interest, inbound of Michael. sure,

Operator

Thank you.

proceed question. the with next comes from with of line Our your Jefferies. Mazari Hamzah question Please

Unidentified Analyst

in changes Harsco hazardous also you Veolia with on your Hi, Hamzah. this with larger and for the any comment recently getting among competitive [indiscernible] landscape, and Thanks. scene in waste filling others? is Could

Alan McKim

the transaction think I was certainly announced Harsco [indiscernible]. that Well,

business through together I their companies. probably And we there. think they're process do those going with

doing chemical with about hope competitors, think very each the a with business we to $XXX And if does players. with like were company preferred the we for be they choose disposal a other. much million Harsco, of with business us as other I particularly needs with industry So our them supplier waste

we because so disposal have assets don't And they really like have.

good hope as clean we'll their have the and earth think, facilities continuously there facilities, to a used I well. example relationship develop for we

their And America. of energy change quite business. they're In real any in or think been here waste all. been energy off businesses it's quite energy -- they really we divested their we've what frankly, waste seen selling the like I case North haven't business they've at the solid because business really surprised, doing, From Veolia,

So that us. for surprise was somewhat of a

Unidentified Analyst

over you. much big Thank lot years. costs gross turn margin out I've buckets? over. you've comment left the noticed business a and have takeout, the question. either on cost one the I'll of past I SG&A or the you more on just of the Can on it is how few taken line Great. that runway

Alan McKim

small over or a of other think And continue and inside deploy continuous can more technology roughly a costs see that than we also consolidation, sales will Richardson things more efficient. that done shifted synergies make automation that our real which now way people. office well. XX We're to taking process Noelle. people our consolidation call headquarters whole our it's play out Safety-Kleen take our former us automation or have business XXX role in we robotic in that to we was of out we expanding headquarters a We There we some is so. as about key have center, whether automation, a clearly AI through Richardson opportunities that costs to that essentially was relocated XXXX. just And as in with acquired customer a that. that we doing or I And

Operator

you. Thank

proceed Our question. with Capital next your from comes Jeff of the with question Silber BMO line Markets. Please

Jeff Silber

wanted over program. your lube to direct to shift I

Is below market of internally? in it Is you the strong but color the I highlighted Thanks. quarter, something You in great. going targets. acceptance be release think internal would there this? press growth your said, it Any on the the was

Alan McKim

Yes.

with the had successes certainly X years, X.X, [indiscernible] many that I we're companies think and different to meet products strong we last had a have. that that we've some we've pipeline. have of in understand and are the a, real infested the and seeing team the disappointments we we And as continue

hasn't the been we side, the think, I where side, On focus think we I supply on have it think that lot want because to side, the it I the really a supply service stickiness, be. delivery chain more put on

only business, XX% XX%, business much historically getting subscription safety repetitive it's Our and a where we're getting claim customer, purchases, the we're XX% in about subscription. very where or

chain we'll a of hold think do to of servicing as from I I in supply bringing continue And that So and onto those something better we addressing. been a grow, standpoint that that's customers more hope job we're we're them.

-- that done check mark we in as about would was I something say we should that there a be space. haven't if that as there So been would well have

Jeff Silber

my That's follow-up And helpful. a of Okay. I be guess like more will numbers question.

modeling that You what it just highlighted and impacted Thanks. revenue. a just the in impact in the out guess perspective was obviously quarter? on us the pricing large Can to help project impact call I you

Mike Battles

have don't handy. that I Jeff,

of there couple that a of with couple together that kind along think ones. I were smaller large added of a projects

for it real really it's hard being So by to the was would a was that pricing year put me real, and diluted level the growth and it. consistent just bit projects. say on a year the I for throughout of number

Alan McKim

saw January very top-line we our think and both so were got above strong trends now. that an going We I the We And margin quarter. this in well January on day had into and a January. extra budget

just little And think bit. so weather been the a good that'll But I has help us. for us

really obviously think volumes the get door, large well. is certainly and that are backlog strong had as to there that projects, the Our in we but I

Operator

& [Operator Ricchiuti comes the your with Company. from Thank question. with proceed next question of Jim you. line Please Instructions] Needham Our

Jim Ricchiuti

Hi. Thank Good you. morning.

help is interested of these we you I'm in the for your forward. what e-commerce potential some underway there's the gradual. initiatives have Just question the of going also through to roll on, these I'm you about leverage event, as if some wondering expand if, this, this as But should commentary and costs think

Alan McKim

that centers expanded were We've Absolutely. owned. those had assets we and distribution already XX to

expanded is as able more customer's ally to and in found we that sales. be as But to well call those really our, we our sales, our distribution all move deliver need centers next of cases be some of what day drum what so product expectations. we lube meet to packaged And product competitive, we to to

we that the that a trying leverage only designed next going providing service delivering delivery it's to model. historically, at to up be for all day sort around not missing as and make those we're not have so where sure there to And going also And needs that next e-commerce we but routes, products going been have out we're now roll to whole And this initiative, out existing trucks are that customer of move company. and that day. to least service that not calls

minor And be in system that. change I think to a cost relatively it'd from just supply the basically putting handle standpoint,

so customers good And transportation Safety-Kleen can of a cost. industry in the and our think had selling things million, a the a direct $XX both And help drums second Clean a the safety side. we them purchases same absorbance million of that'll needs. variety very products at and has be all around that'll $XX success Harbors of get will and to lot on whole from quarter. we launched kind year those delivered those automotive leverage kinds real benefit of that to low and branded

that So we're for sure. leveraging

Jim Ricchiuti

some there's little you strong And be industrial and there. of solve the Got out comment not it. the assuming and in that what area. like the And it like there. board, general, struggles whole to bit it I'm a in further more sounds but I about the specific potential or has -- could just lot bottoming did think you're seeing a a there, if if you you're that pretty if business we of looks growth services much sounds across kind bit feel little wondering you

Mike Battles

free schedule and we jump Mike. we take is turnaround and And the Canada it's for to flat I'll Alan, U.S. feel both this looked Jim, that at in. Hey XXXX, feel in to and our up.

of both of hopeful hopeful and size we're as that line. planned we so at the turnarounds and the happening we're can schedule Canada the hold that in we the look the U.S. level that the of turnarounds And are turnarounds,

leadership hopeful that place and the is services better that we're a put in in warranted. of new really have focus industrial We business

As see, statements the services issue break few down you a of our we'll here we in can out year-over-year. kind minutes, industrial financial a businesses bit, lines as of

we focus continue to so something just And that on to that's it. need

and We a the walking the margins such, to bit. are as from up did better the that's hoping clients, with we're is continues trying unprofitable and revenue We're it revenue. hopefully reasons. price put I'm raise down to away right for

Alan McKim

a we believe that to I would the just we do we with. and of those Veolia acquisition, anywhere get margins from job where near on standpoint that around say investment inherited, that risk have the were to arms not some our a good with as the contracts contracts we make

profitable losing of cases those So be. we've because, as realize been as need that we contracts going not them some we to back some in they're

as acquisition a And there's there. of little been going shifting of on the made so a bit we result

Operator

and gentlemen, session. any McKim I'll for to back Ladies you. Mr. our Thank comments. concludes question-and-answer floor this turn the final

Alan McKim

Excellent.

events speaking you presenting the for in March. we week us day. these thanks And several at James and next great So conference today. participating to joining Have investor We're at a of events. Raymond look other in other with many later forward and

Operator

today's you. conference. concludes Thank This

lines at your participation. Thank time. this You disconnect for you may your

Clean Harbors (CLH) 26 Feb 202019 Q4 Earnings call transcript