CLH - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Clean Harbors' Fourth Quarter 2021 Earnings Conference Call [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael McDonald, General Counsel for Clean Harbors. Thank you, sir.

You may begin.

Michael McDonald

good and Christina, you, morning, everyone. Thank on Executive Officer, me today's call Chief and President Chairman, Alan are With S. SVP Jim McKim; EVP Operating and Chief Battles; President Investor and Chief Financial Officer, Officer, Eric Buckley. Mike and of Relations, Gerstenberg; Slides and follow invite site, our we call for you are today's on Web posted along. to are discussing Litigation are Reform of historical XXXX. considered the forward-looking Matters we not of Securities are within Private today that facts the meaning Act as which not cautioned reliance place today, reflect management's XXXX. to only statements are Participants on opinions undue of XX, February these on results potential in filings. factors affect Information and risks of our could that the included operations is SEC The reporting company today's no to period. in filings call revision any release revise or through undertakes results of the made obligation the other this statements concerning to than publicly made will to discussion include measures. non-GAAP references Today's that an and Harbors additional performance. of such comparison Clean provides measurement its information historical consistent believes to presentation. comparable today's and Reconciliations most today's of news of on measures in in our release, the these Web site are appendix available measures directly the GAAP turn With Alan that, I'd like the call McKim. to CEO, our over to Alan?

Alan McKim

in improvements Overall, in guidance. Clean for time adjusted our resulted Strong an HydroChemPSC a executed a our and EBITDA our cash of our well execution QX have including objectives. enhancements, in such billion as adjusted business strategic enhancements ahead $XXX.X awards market way ratings Good great expansion reporting, including led of for Thanks, the another the number us. We XXXX first our our the concluded was EBITDA acquisition creation proud and the meaningfully which joining ESG We of in Thank of wins, Nebraska, customer favorable financial and delivered each of Safety-Kleen our and our adjusted for team most exceptional strategic major $X in revenue solutions delivered you notably with contributed incineration of environment were to strong Harbors, history many million. retail and everyone. billion Services to surpassed our the by Behind $X.X segments QX, for The facility XXXX segment. as highlights, planned sustaining in as aided in investment Environmental XXXX of quarter. quarterly accomplishments our I'm morning, and on customers, space, performance. structural flow the Sustainability year Michael. free

seen addition, the that temporarily down inflationary six In the in combating early company. South our started the We've of not and phases deep of navigating incinerators the I we overcame been also pandemic the since freeze XXXX. successfully in various certainly pressures, shut

those flow. While its not and we XXXX an and without challenges, performance, met was free profitability record cash delivered obstacles outstanding head including on

pricing. our Turning Environmental the Services reflecting their extremely integration higher has starting strong segments, automation gone to customer of with The Slide demand QX, grew talented and coupled HPC reaping XX% team, HPC, terrific of and assets. well, addition of we’re X. benefits technology revenue and on in the industry-leading

more potential levels. than returned and stepped has As our activity been opportunities. mostly to Segment by higher generate and HPC excluding capture volumes businesses, and cultural revenue, continue cross-selling to which have up XX%, immense fit to see expected, pre-pandemic the synergies grew service we reflecting disposal seamless at

X% posting from decontamination good a legacy base in business work, our excluding XX% Services, Industrial by steady a season. and our cross-selling grew mix as fall and response smaller Safety-Kleen from of Environmental sparked benefited revenue example, continued XX%, rebound legacy was year For ago. turnaround Field up Services we increase a robust QX its In business, jobs. a HPC

million QX in and we of a quarter the margin XXXX. comparison the $X.X of at growth programs tough perspective was of from Looking versus Environmental had QX Adjusted segment. revenue to profitability only in saw $XXX,XXX a HPC. government-assisted in Services EBITDA in addition with higher the the From XXXX, due which X%

margin ago. higher work had year COVID also a We decon

and the inflationary all like business. experienced costs increased addition, our in we second half in companies, In pressures parts of of XXXX

pricing Customers current roll environment project We they're have all and out of are facing, a contract the accepting work. price understanding for increases. increased an we're as our and higher-than-historical continuing to result, all

We business also are from pricing initiatives. our customers walking away receptive when to

our We enhance And other our expect margins same in productivity to to are offset XXXX. and reduce the we implementing our increase aggregate costs, to inflation pricing actions initiatives at efficiencies time, improve overall.

turnaround earlier, disposal and fourth process up year material our really was utilization strong network. Utilization into to in we more XX% from Incineration quarter, at days fewer at our at cut allowing waste the a us Looking than plants because had backlog. XX%. increased our

streams. projects won higher-volume waste also that included some We

price high Our was enabled anticipated of mix year $XX decontamination ago than totaled remediation a substantially by COVID-XX our based greater in fourth projects in down A approximately the quarter million from landfill pound to quarter. the a $XX Omicron on QX In a but year QX the average us year of from revenue in the due earlier. work million, from grow variant, quarter tonnage from per the ago. pickup environmental emergence flat the to XX% in XXXX,

For as continue $XX since COVID offerings and grew branch started services early positively. most trend washer program the $XXX,XXX to XXXX. Safety-Kleen full to core recently revenue we response surpassed generated the million over Parts of decon year, in XX,XXX

maximize margins EBITDA have and in conditions front a pricing our that Slide We strengthened robust demand and enhancements the our production through to good and of of re-refining believe the than strategic management our to at SKSS increased at made Adjusted supply our oil plants. base Revenue collection waste XX% and structural combination end costs strong segment X. more we was our on as collection up re-refining more this organization blended spread. XX% $XX pricing, million EBITDA of and our spread. gains market we oil on product business. higher Adjusted topped Moving to than capitalized

in percentages and direct sharply growing market up in as Based QX. market came particularly additive again, faced were in expected XX% the given of to collections conditions, products gallons. million oil waste example, the quarter, shortages blended XX volumes For our the on

grow volumes again We in those to to expect XXXX. begin

Turning to X. Slide

We of phases strategy. project, expansion capital our remains incinerator QX, with schedule. ahead continue which Kimball the allocation moved on on In we all

We also our our disposal capacity capabilities in other grow strategy to evaluate ways support and to continue organic our re-refining growth. disciplined for of

that segments. On attractive the number continuing to front, opportunities our operating marketplace a to candidates think we're bolt-on acquisition of are us for the M&A look of potential in in two support there each for growth We pursue. will

three to Before turning Mike, on end key Slide on it over like X. I'd points to

the see what this company we team regardless slide that demonstrates our conditions. and best First, know team is I on this capable of past success our years the over can achieving the five market business. in have you of

industry. has fresh who bench as our mix perspectives or we into new we Our that know a talented have veteran never great and bring of the faces stronger leaders space

Second, demand for services been our stronger. has never

of tailwinds. verticals our in pipeline PFAS market board Harbors even and service remember We've addresses overall we a When in I opportunities across One in the was spoken that is at through incineration of retail length looks of range robust a a well-diversified so add where seeing, array Clean fund of around demand advantages investing stronger. waste the you our incremental the are multiple recent industry in in broad reassuring our US. future with healthy are that including we memory the the volumes from company super offerings. wins, demand network, time and project about and but trend volumes TSDF the the can't

And And point are be and demands is turn, there the the and side, businesses. services, XXXX labor service will really tech field active that the Safety-Kleen third board. given workforce, for services, that the we market. everywhere final in Industrial all On services, for valuable across a us. skilled year my certainly as goes our Environmental shortages

considerable more We success underway have which a that market value. on capitalizing on would these of million retain drive rate synergies continue on XXXX. work just a have completing end achieving but off really integration, challenging $XX not recruit by improving include in performance, we long the include to our demand seeing, run build our I initiatives of the that mentioned, inflation today, power cover to of safety HPC the have And talented XXXX, shareholder the exercising did we're a all the pricing list year which and only a of to force

progress the build momentum. make on leveraging balance and sheet Kimball significant expect strong our to accelerate lastly our We growth to

think performance by beyond. there’s harbors for year. which shortage I will company in coming our benefit the the and at stakeholders We’ve great So all the no set this XXXX another of stage activity

that, turn with So me to over Mike. it let

Mike Battles

everyone. Thank and you, good morning, Alan,

XX coming ago, points from business. the SG&A as fourth Top addition on XX%. in and to year on Turning X. higher Slide $XXX.X to was a a well due Adjusted in driven costs. in our year growth, at percentage October, was severance our legacy in Revenue up XX% HPC, statement quarter, as excluding million. HPC basis early EBITDA than of by largely ago XX.X%, was the increased compensation higher integration line to incentive a income XX% basis

revenue full the SG&A points percentage of year, a to For by costs as were XX.X%. XX basis

to SG&A As to percentage cost we a of expect integration leverage range a severance to work costs for we the XXXX, this and as the ahead come control we mid-XX% to levels HPC revenue XXXX and revenue, expect less look as costs year. down

costs frame. amortization percentage SG&A by of a HPC a in XXXX, we points almost reflecting five we the as have our of a SG&A use years, time million, lowered the costs QX for target and basis that our XXX the revenue and past will of addition lower hit our of by Depreciation as increased assets. in percentage workforce to technology concerted Over the other through initiatives. over $XX.X If made total revenue effort we

the the was amortization in $XXX.X we lower For of provided range million, depreciation towards the November. end full year, and

by pricing For re-refining efforts $XXX in HPC, $XXX operations in as year anticipate includes growth increased of Income full and to our revenue our and managing we depreciation impact million. spread. range as from QX of XX%, million the reflecting around well XXXX, which the amortization

$XXX.X XX% from year, For our the million. full income to climbed ops by nearly

XX. balance Slide the marketable HPC million. quarter part on used reflects and XXth, from $XXX Cash $XXX were million as at acquisition. the for Turning September of short-term funding decline sheet the end to were The securities the approximately

more a we XXXX with XXXX our we You this midpoint EBITDA than of can impact transaction approximately year. the see the debt debt of ended $X.X free as Based Leverage time that our year debt guidance, using at billion. net next leverage X.Xx. basis the EBITDA also and to was on flow X.Xx on balance cash in of our expect

agreement rates, forward of some on in our put Our weighted swap average of is cost fixed we're reflects interest-wise, rate debt, and number our a we place variable debt With XXXX. X.XX%. environment. a maturities exposure continue rate limit great to have XX% position in rising That recently we debt at a until going new to our no in of approximately even debt

was Turning some from growth to Cash ago, are operations million. Slide disposals plans. with of cash million, moving up HPC on particularly our net QX flows year significantly $XXX.X added CapEx a forward a healthy was in from we in investments, and $XX.X as XX.

Our cash and flow of Kimball year. million] in $X.X was million the year. full spend totaled QX $XXX.X incinerator the We $XX.X million and million record [$X.X free for on delivered a for new the QX adjusted

for landfill million For of year-over-year CapEx approximately CapEx, year to expansion; legacy full reflects net on year. growth increase in and in $XX $XXX project to costs Clean large The a XXXX, we're particularly HPC our Kimball million million the items; to $XX inflationary $XXX expecting currently this vehicles four and of the Harbors be million. materials; business, range

During existing of million at million. QX, $X remaining $XXX of cost still we stock a our shares buyback bought back We approximately have program. XX,XXX more under than total

with expect results the Moving $XXX market in on the $XXX HPC of million million on million. of guidance an XXXX. our conditions, incremental to of EBITDA business basis a XX. $XXX Slide $XXX assumes from Based to million, base from $XXX approximately range XXXX This we or contribution adjusted XXXX midpoint and current million

expect of annualized total in $XX to an synergies to run cost there we million addition, million we the million XXXX, rate expect and deal on from in beyond. out of are realize $XX $XX XXXX a In of

Looking than in higher at due expect SKSS perspective, our adjusted posted we of XXXX, guidance profitability we largely EBITDA HPC quarterly higher to the QX in addition from to to XX% the segment. be what and a XX%

midpoint organic of translates Here’s segments. Environmental expect increase increased EBITDA significant offset expect lower to comprehensive basis government-assisted pricing and how guidance In cost XXs increase of and on much growth Services, money of initiatives. the EBITDA with mitigation to adjusted business, Even our adjusted HPC, work addition a decontamination our from a year the in our guidance from percentage full due full lines low the we our year programs, three at XXXX. XXXX inflation to no our to we in core

million of segment point reference, assistance received government a this in As of XXXX. $XX.X

we midpoint of corporate due XXXX, from as we during EBITDA raised given midpoint XXXX guidance great the adjusted the as year. guidance SKSS, where in For range $XX XXXX, offset quarter did our X% corporate to around compared severance million. year costs, throughout EBITDA re-refining Xx exceeded full up conservative expect and XXXX we even a negative we've to year-over-year investment free $XX time. a a the in HPC well of million. and lower segment the spread comp to of of in we range expense. some of the though our year incentive XXXX, to capital at to baking every we assumptions, around That significant with seen in at $XXX includes midpoint full it we integration the be decline at Based year had received current working $X.X We're adjusted on addition million anticipate our CapEx cash Kimball and segment, mid-teens in guide, midpoint or as or XXXX. now in not government EBITDA million $XXX X% this this $XXX of assumptions Also, adjusted successfully of lower In million our assistance narrowing by our million flow largely expect the

a increase strong flow XXXX collections. free on our cash cash produce free CapEx should we long a contribution reported the point reduces focus lowered that positive flow, reflected strong investment our term. of as acquisition-style returns our that through levels an that that as will we over in record working out DSO view adjusted While capital company-wide I

resiliency asking one thought. new organization. is with me with What remarks Let conclude of Clean emphasized my them final the the I prepared Harbors, investors about point our

the and our at X. over customers a of business. and our as flow free closely look the aggressive re-refining took national before two temporarily cost recovered. that which at Slide our came doing us introduced past reshaped and the on ramping five oil to collection of and in expenses to business years, decontamination do structure accompanying rely widening and we cash the that the best, at waste what in the all the year XXXX. customers on. We up are pandemic many outset the We of of that the EBITDA reduced Just the pandemic had variable a our are actively business hand turbulence first-to-market our we charts back offering market We impacted aligned Despite managing large-scale it operations spread

part XX-plus to beyond well of our permits, has entry that Our identity high resiliency record set and barriers organization. become It's goes offerings. a XXX comprehensive an of track year as our

inflation severe respond, in weather. our labor of conditions those challenges, to ability will profitable and confident maintain that are, please or what on that, path As we without questions. growth we're our availability not XXXX Regardless significant for again the up With that's shareholders call whether to deliver value this open are its Alan year. said, the be or

Operator

Our Raymond line of from Instructions] with James. the first [Operator Tyler question comes Brown

Tyler Brown

'XX the And it is built accrual success, quick comp housekeeping your couple of a like But what given into the guide increased assumption that's the two, then in work? decon incentive items. one, 'XX. Just around sounds

just a normalized? Just in much dollars it be how benefit that if would of

Mike Battles

way less When the bit XXXX, it's incentive a across mean it's So tailwind comp, in early We and $X a to think year, collectively million say I million little less. that's I'd but down. we think less you $X of been XXXX, decon saw the $XX than thing, slowing million. for into good of organization.

Tyler Brown

core payments. that talked we're to mean, margins margins. Mike, We're again, of with know I margins, in all expecting I pricing there's thanks in that a initiatives you guide then We're and revenue noise very cost lot the I ES so all your to decon. 'XX, are ES at or expand But a level, lapping you you . if government of guys stripped have mean guidance. all away XX. taking And these you but out high the for again, in just about? layering don't

Mike Battles

a ES revenue prepared really it we're But of remarks, again, half on covering first be cost It's they'll making even QX that -- I'm tough half plus to I pressure. QX. the second I will way the to his I'd half, that side. mean of forecast real kind better. kind more certainly say much to expand. in good you margins Alan under would is in actions progress have mentioned initiatives made on inflation The on margins about be half, off first and we get this of thinking say should Back pricing

I kind think year, I for the to flattish for going when it's you look at year. of ES year-over-year, the be think

Tyler Brown

number. incinerator downtime, utilization. that's And sit utilization just the XM should I basically the it or But Alan, incremental given mean, but around where the thoughts little I on that's of a there? assume the backlog, just practical maybe then utilization, any with I QX bit mean, a kind ahead, XX% tons. will assume it's we great full bounces so that looking

Eric Gerstenberg

to improve So in the overall XXXX. we our XXXX, for year full annually expect utilization from

our XM continue strong have We to flow volumes to into a continue backlog, network. the

well. strong have with that project pipeline We help will utilization as a that

improve So expect considered, year-over-year. overall things utilization we annual to all

Tyler Brown

quickly. my just last real then one And

a But a little at stories I have odd up back it's So few I kicking about flu West. bird read question, bit of guess. an

I'm any to XXXX. note curious in emergency incineration a or just . I seeing Alan, So there? on mobile you're back anything calls know was that just major present if

Eric Gerstenberg

substantial. government to the We're with But to has not substantial be be point. haven't continue this in we seen tied have to that. anything been anything obviously at respond to We yet that able seen

Operator

of Oppenheimer. Our next the question Kaye line comes from with Noah

Noah Kaye

pricing. event perspective US potential an few that weeks in with here is But implications would continue through I for M&A to the RSG period the want announcing thoughts improving services inflationary industry during in welcome guess, to certainly they behavior such Obviously, ask big from an industry the and that on in the maturation and of have Ecology. space to rationality competitive behavior acquire a agreement the last go over broadly. whatever environmental industry your the and going about is particularly terms thesis

about a labor guess what as inflationary of does such that other behavior of expectations having you industry right talked market skilled You in of the pressures. around business, and how shortage XXXX? into lines look pricing you in I for terms play in seeing its competitive are across the now your

Alan McKim

I think faces that railcars. everything that issue probably read the drivers, of patient competitors shortages staffing, people costs, hiring all about, moving you biggest even

for challenge And of their in business. in more so that on people not those segments they And certainly rail position to that a a point I already services is our kind they're take at in observations handle. dealing issues backlog of us a can't where boat think and many and like the same with of this discounting we're the even here. both And struggling in probably

book I is extremely As our mentioned, strong.

And stronger is we backlog open. thousand positions ever. have than several Our

to at look We opportunities. continue

think and well. is We year we And across our see sales those look are really our the probably have board in by employees. I the for XX% market. XX,XXX the approximately as And opportunities that opportunities additional staffing. in growth an competitors with We driven this

Noah Kaye

disposal And remarks ways looking mentioned the second for one, prepared to in capacity. increase you

think you might a Mike, for more? some bit here, the announced there's touch Can already progress Kimball? outlook but mentioned comment that may a you drivers, expansion. on maybe you need the and disposal increased landfill in have just the capacity what strong CapEx your to you see backlog most of outside the expand on I can think, you Obviously, where you've with

Alan McKim

probably this XX%, roughly? landfill in significant going about to be our just Eric, most spend over comment Yes, I'll is expansion, that think, I year

Eric Gerstenberg

Close the to XX% sales. expanded

Alan McKim

you would… on that, if why don't So touch you

Eric Gerstenberg

Yes.

the few of our pipeline big So in project cell that see of a is our we expanding investment we a landfills capacity. have across Obviously, robust.

our to within continue to X,XXX We target incinerators. We improvement initiatives. annually compare tons target XX,XXX growth

in we to incinerator added this mentioned, our As expand had our key nice Mike in so at shredding system expansion we our to continue year capacity. a Utah a past Aragonite look projects where network we had throughout

Alan McKim

$XX roughly… And dollar I California million was think the expansion,

Operator

Mazari question from next line comes the Jefferies. Hamza with of Our

Mario Cortellacci

This is for Mario Cortellacci in Hamza. filling

you looking and expectations the Just you of in can in And I do I incinerator back as then M&A guess stand know active space? at today you pipeline and capacity? RSG I talked update consolidating of candidates. I and this But your guess where yourself is maybe hazardous what going to you see can you maybe landfill you're potential deal, US you for just volume share us market the space? an in also on kind having an where consolidated guess about give where Ecology your

Alan McKim

of the US as company dozens we're going there should at can of landfills look landfills, dating greenfield with XXXX set expanding in 'XX, Ecology Eric in opportunities footprint, and to we been And think to of. really continue one I and back of I our capital we've our landfill assets think expand years tremendous been to particularly a any as as ours of business, been for I that landfill is built mentioned, to -- say. competitor long hasn't existing amount

El continue you now are And quite the built the in we're our to because for incineration looking those to divest frankly them. shut to number either incinerators alternatives down Dorado. particularly as new duplicating front, on we really or On captive incineration. see customers' front, many of opportunities, incineration that a the Kimball. plant We And incinerator in know, we're in one player

expanding board. And the and capacity existing adding on landfills focused are really incineration so more our we across

Mario Cortellacci

kind the for an market have you of share. Do update

and Is guys compared back low was like incinerator last XXXX landfill now was you to the in I XXXX? think hazardous when think thing XX% was it I out in in saw that capacity, I volume. in XX% share pretty put capacity in

Mike Battles

that's third, consistent. maybe say landfills. say instead fairly type third I one always like I'd two XX%. of thing XX%, in Mario,

Mario Cortellacci

guys one, oil I the And spread. prices? you're I an can you this from idea with And just negative love more the the guess how guys maybe take if of but benefit going thinking managing know the about, driving believe don’t can on obviously then your last to what's how and much kind your given give how kind forecast impact of you kind or I may just just you conflict I any oil or about But business? markets. us around guess, us that well color of give just thoughts. to would it's benefit get there's of again, spread, the on this as Just it’s

Alan McKim

I well, a to be, couple through seeing the changes and impact the the so IMO full other speak. not after clearly XXXX, pandemic, think, we're I would going that market changes that things. and through of seeing of really all clearly, even the petroleum think, to the the One on went shipping

in area. that with pricing think seeing clearly, oil that low demand we're the on I sulfur in

recycled price now our in we products. rate market place discount re-refined been base pricing at green So at a oil, we lower see our volumes are of more that much because us our historically a very seeing certainly strong with available our oil. customers of our also that, And and been growth for waste being oils oil able to has in because -- demanding are very that. cost of We're to the had the of that eliminated a demand huge really

our at of on of long-term volume been for continue to that think grow processes to look that side to that these of business have opportunities our and more to our because our use we improve opportunities the so to production re-refineries continue oils we the through is expand And trend our oil base waste drive generated. to other

Operator

Our next with comes Michael from of Stifel. question the Hoffman line

Michael Hoffman

had growth, internal estimating bunch is with us model? share a growth. internal of business in cost you're what inflation, housekeeping mean, of I that Internal can you one. On your We've not

Mike Battles

in say mid- high digits the I'd model. Michael, single XXXX to it's Yes,

Michael Hoffman

an X% enormous well, mean, is it range, that's X%? I So so or

Mike Battles

parts It what talking the depends of we're about. business

things. So that it's hard it's to number one all -- not fits

parts a some aggressive. the more it's labor-intensive inflation type are parts a business temperate is some business little of depends and pretty So not. of or if our It

Michael Hoffman

So leads will the with price. price was in then Alan's think cost me remarks you've and I cover question, of the made the that comment opening that it to you inflation

So between the event X% in 'XX being of inflation factor? that across got seminal the as and price one; you and becomes where a do two, see retain more from go you've normalizes, can says a in here you control more book, XX%, business maybe as variability pricing forward

Alan McKim

place. Well, even we particularly with crude one has had if contracts in our relationship our like a Michael, they through through and accounts would crash result a say as though did and I place suffering oil been that of concessions large challenges COVID, where going they're downturns the took when of gave we of lot

so crude has supply that cost, that several taken disruption of long-term labor and where, that oil, worth today have are doing really dollars. of billion have And this contracts because we a increases chain we because significant cost transportation realizing look, we're just place. And whole lot of because of we're

price top inflationary we're it margin, as and well they to because by really as this going in us business margins to our HPC driving particularly as cost continue to ways the year. and side. of so not and legitimate. keep think going same on see to to some our other through That's really to and driving drive increases, where It's driving costs. very drive take accounts flow we're line we're cost improving or for our those margin cross-selling, customers on driving willing increases us operational back business those to really are And And initiatives see excellence up to gouge with I

Michael Hoffman

of of Mike, the million you within advantage as guidance, out? calculated framed down comes the assuming have spread $XX I you're year-over-year. the $XXX It's way of about million sort SKS

Mike Battles

Yes, sir.

Michael Hoffman

got So healthy that and XQ I on it's between pretty deferred right. muted And then seasonal then the XQ revenue, like pattern looks pretty and year-over-year. it

sold assumption essentially what's that two, point really, data reflected another a What's and in one, that's that that's the what's at and assumption says incineration sitting out. still your of really -- correct not that So of demand your customer? is assumption strong number

Mike Battles

So happiest to ways in at that got creatively a what analysis, and when Michael, of some we I That progress things customer QX. when thing, is that the what's a good. landfill revenue reviews, of there's had made up. of one still good about sites. think Eric deferred the the efficiently kind I the move and quarterly that backlog after there, looked more about real at pretty and 'XX, good the job you kind not team of maybe how what of lot did waste volume people The think picking when did thinking

in those And start pipeline about these up. an we've the variants is, year down kind calls is on guidance about going the so is exceed really been morning. for how we’re that's grow news that's is we're giving for I And rearview that to hopeful you and think, two to to that And years volumes year-over-year. landfill really phone And going and being talking how larger talking about coming that really or we're those been maybe that now, the talking area projects the landfill good so to of projects free We've fruition? a this mirror of Is COVID now. we're projects.

good really, that to I going so We've well. I in think And incinerators landfills, got the growth think more opportunity are it's running drive XXXX. there. that's where we're But the

Michael Hoffman

there's It's labor And nobody could not labor But side, it issue. isn't everybody then is for you you issue? this labor, unique would function losing had characterize This because have that do Alan, you're business. more business but sure. facing a a the of grown could if more on the

Alan McKim

Well, lot and subcontractors think have a do partners. of I we

us customer And believe think that so we're has our meeting more, margin I costing but it's I demand, been part do that of and issue.

again, recruitment, price so And seeing that. accelerate improvement And we're need those to we where across costs. increased some we to areas need drive of our

and year. create we the throughout area that so of accelerate of reorganized need onboarding the And and see to recruiting, best the peaks have we training, our somewhat in in our actually sort for pools what we valleys labor that

Michael Hoffman

couple things the hand, and of spending a in between bridge go they obviously. and guide kind And cash capital of then, Mike, can free hand flow we on

a if free sales? comp the question, of spending, Kimball, sale got items pretty of the that I $X have million What on good as capital gets so of that in cash, the landfill spring the $X like heard out hit number, asset for free million in I there's headwinds a a I with the to to incremental So remember all cash you think ago? paid that correctly, Tyler's that's had flow, I've of some would cash -- development headwind. is earlier some it's cell year versus it to in things asset I

Mike Battles

$XX So the was than $XX million mentioning, just Eric that $XX Michael, million more way year as I'd million to year. this say, is Kimball million $XX say let's to is, it, last Landfills, more.

a probably we you working the closer Assets in made. release, we probably this million guy at capital, year, release, year press we and $XX earnings sales as last million saw $XX to the the $XX look as did good million

As you DSO I kind in my improvements made remarks, areas. in other got said of

mid-XX I add to all number. of kind those kind So of up think

good over add it ratio take conversion But XX% is million, number, over think historical which to you a so million, I EBITDA, $XXX that fairly million the patterns. you if $XXX those that's But to growth. you are about -- how that consistent it. is think I with which and think like pretty then I And get $XXX take

Michael Hoffman

as we purposes, spending, in And right? we how far get layer then number 'XX what in as so for our modeling Kimball 'XX do we're and that

Mike Battles

it's million. $XX think I about

Eric Gerstenberg

couple $XX million over years. the of next

Mike Battles

million XXXX I forgot number thought is, $XX what and million then the but… in Yes, I XXXX to

Michael Hoffman

think $XXX is So now. in I million, 'XX, it? to down comes spending, and forgot you're use I it $XX then

Mike Battles

in… $XXX million, all

Operator

with next of from comes Baird. David the question Manthey Our line

David Manthey

First off, HydroChem.

think they XX.X% how I for you back worse margin. -- that the comment Can million were and EBITDA that, in in early August, in EBITDA million] [$XXX came predicting $XXX generally? than in on revenues year

Mike Battles

about That's remarks, synergies. my QX, about of I $XX of like that to $XX that incremental costs. million 'XX in we the million In million talked EBITDA severance $XXX but included million]. in million to due XXXX, it and million think integration number. it $X [$XXX $XX of million plus was $X prepared Is was And to it's the million EBITDA was $XXX something number?

I kind find really to job. integration great Alan So those that I as well, of remarks, the team and yourself good And went are think think in numbers his did in. the said a

David Manthey

more rate we that get from think to year And scaling the I'm the idea first as to quarter million is a year we million on should or after about there? is run there year, next assume synergies? that the just $XX quarter we or of this get synergies an $XX go the up trying to of of velocity entering of ownership, the rate timing exit the when the quarter first

Mike Battles

and real team. I We're or making good end with on other get We there progress. we're the the of Eric making Alan meet believe. others we're in week and year, -- call, by the We'll are the shape. good every

David Manthey

those And of type then on items. the some nonrecurring

third costs, million want $X.X to in EBITDA. million numbers in those quarter. included acquisition to I adjusted of think in costs And you was I severance I a the quarter, of are which fourth the $X mentioned close both in assume then there that say

or of And do go any do type right, second, those XXXX, of guidance First at then expenses look and that those all, from for allocations Mike? your are there? for you make is as then assume zero you you

Mike Battles

them are to your So EBITDA. to call as them question adjusted try them, but and guide about first talk is yes, do those adjusted the bad the include in do We our EBITDA we answer a in to number. out

we guidance, kind and that single-digit assume small in per is of high a year point some number. a of second it's severance the integration do The amount and costs

Operator

the comes of question line next Goldman Revich from Our with Jerry Sachs.

Jerry Revich

and like-for-like you for specifically matters bunch. product are 'XX? those I if just expectations talk in what quarter? about lines incinerator about you was wondering know it what what in landfill Can I'm talk mix was? pricing And a could the fourth your

Mike Battles

chime I'll Alan, start, in. feel Eric and over please and

you but because QX project that the pricing we're in three it over-deliverance more his months but in that what think the remarks, I has On Alan actually, of said story happened a of volume, gave mix. ago. flattish, It's the price the as work was in getting lot QX we was lower part was guide great versus incineration was really a points, of because

did So price a about was bit good It that pricing QX. really job story. a up. just muted the is way really I'm strong. in because team our happy mix it by kind great got and utilization drove of of The issue the driving a really The mix issue,

is I'm really that And really so again, great answer. a --

and we're on to think kind of the going XXXX to giving ability overdeliver think about you our numbers I As this morning, the be part of you that's story.

Jerry Revich

adjusted? it possible just to is the what like-for-like been And have quantify pricing would mix

Mike Battles

basket all market kind I'd single high in, was the incent say of digit. it and

Jerry Revich

normalized we And point incinerator on can terms basis then of capacity the operating. capacity effective plants annualized based at your where are view in this way on an utilization, the

Mike Battles

in is kind that about liquids and minute you but kind opportunity those to bulk an grow and volumes, I direct that comes pipes, a think burn I'm of -- XXXX. work And and the again, mentioned ago, that and to Eric liquids. to work, down Eric an the ability think project and there are team it drum different project capacity. I bullish of And then bulk increase again, the and there's solids incinerator and about if really

Eric Gerstenberg

to build that on earlier. Jerry, just

ups that the continue of the project XX flow on to units. network annual expand across We an capacity is based and downs into basis to XX% solid try to business and our on the

Operator

line Solow CJS of Securities. Our next question comes Larry with from the

Larry Solow

mentioned what commentary some shortages demand trying areas actually Interesting are better I or labor. with that's of in some shorter are people or that And shorter, skilled feeling turning actually obviously, because is guys you the to you benefiting -- your guys you are you to perhaps but just in heard.

Alan McKim

largest day, to services some and hundred to continue where see and more, we provide of program that we driving we several every growth is to it's environmental Yes, or our in us whether trend, in our show where bring that's team and up client have that. see outsource I looking do need we continuous program, accounts particularly think outsourcing a locations and what's an an for it's industrial

Larry Solow

rate? attrition. difficulties with obviously growing you hiring. about lot And of you're fast Obviously, are facing attrition are companies How guys a your

you a us rough than But give you assume you your XXXX, thoughts loss. did -- any that? idea can hired on If us you I give more

Alan McKim

I force it that historically did turnover But we've HPC seen, we had with jobs talking. their particular than what work our obviously, that they we're we rate a on have see with depends think in organization. direct

People indirect working did as hear by a on you see our would people turnover great that's something didn't of that's did some the going get not I but from significant, SG&A sort of certainly to impacted we So working start resignation higher employees we kind in hybrid. we well, and immediate say. of home, for about, us that --

strong I a workforce to tenure lot a think and we want on continue have to real of that. build continue with to we here,

Larry Solow

on the follow-up about How inflation.

with You guys you historically, get most prices inflation harder. incremental now? offset businesses. And to sort price benefit? been mid-single-digit of are being average Obviously, still inflation, you've business, but But now whatever, increase to -- getting benefit by hard pass less Is maybe this are you've just your getting measure, in -- able on your is are incinerator pushing or you is hard the that especially of pricing. gotten when you're on in pushing to you low

Alan McKim

inflation We leaders here businesses the basis on pricing different talk issue, of see And kind is the has the to driving And really when really entire measure think pricing. company, on a and weekly the to opportunities. about the to effort on the happening. the improvements I the meet workforce whole about number of across the one this us a focus you message and really which accelerated price talk that of parts challenge, communication rest myself team across for about that given that been need

Larry Solow

on last Just the question KSS. on Safety-Kleen

you this That's step or look sort year. of minus the management. think? there the number, on some in to $XX plus guys some that IMO taking like pricing XXX back of did your in difference, back . segment. of there reorganization, the EBITDA that that Roughly as you unsustainability sustainability we is $XX a in benefits pre-COVID, of $XXX If there in million mentioned guidance spread. But still budget XXXX, of million You obviously, some your some the sort some million and spread

Alan McKim

so. think don't I

a base demand come seen months a Obviously, price our a got We've first looking the oil for conservative it's considering two number, out least think where strong pretty weeks increases at last we've I two are here, products. strong the book. in here.

And Mike, segment. that I'd think, but to continue he like is, not always that us as business, conservative so there's I think no improve that for to as reason to

drive held primary lot be because huge with and of continuous blended pricing. direct this One oil will for market. on to us with of being the to we has obviously, sold that see -- and our both force we we year. a year amount that as back products is is of be a But several is opportunities the margin strong customers our And demand improvement. to goal our We We additive base of majeures more had that, additives, hydrogen the really problems, direct here, shortages. advantage supplies where took forward placed of move last

hope, like things, So all behind we of to could. year, those will this be I and I'd that think us

Operator

Company. line question Chris [Granger] the Our of next & Instructions] with from comes [Operator Needham

Unidentified Analyst

could integration and key just what's you there? how could relative proceeding to major -- are left discuss how the left, your is expectations milestones were you briefly what hydrogen of If

Alan McKim

here the system, their also on one, integrate we I of branding. operating contracts financial HPC day converted business from there of next months sort systems or over but are in is the be some would the legal There's two will challenges to certainly legacy say some that our running systems, most on three -- regarding that that is and as continue businesses. well,

contract business forward standard that industrial had. brand with about $XXX business. substantial million then getting HPC that a And with that coming $XXX with together certainly, our legacy represent of million, will that hear XXX move HPC the of business brand-new one so a And top out Clean the with amount you'll Harbors’ tie us

the end of out part by So about this Mike that's those will that I and worked process are things certainly be of year. in coming the synergy of, being the that on, think, talked

Unidentified Analyst

things And either were that asset some To could Vertex or organically the with you via the extent of you of targeting other acquisition, deal. what termination the some accomplish that means? with

Alan McKim

area investments Sin know, our both you viral business, in the the as waste. at TFI five and past looking over Certainly, been well looking Emerald and years, bought and that we've at making as of and acquisitions as

forward of look potential so mix And a continuous as that here. sort moving And both internal we investments at acquisitions. well we think would that, focus of as our be

Operator

have now questions over this We to McKim, further Mr. time. at the you no I back turn floor comments. would for closing to like

Alan McKim

us today. joining for Thanks Terrific. Okay.

the have forward We with day. calendar a with packed IR have Raymond Jefferies. to We Harbor Clean a events, look those in sharing and and story safe conferences March in-person with James you at

Operator

Ladies and conclude gentlemen, this does teleconference. today's

your You this lines time. at may participation, wonderful disconnect Thank for your and you a have day.

Clean Harbors (CLH) 23 Feb 222021 Q4 Earnings call transcript