Clean Harbors, Inc. (CLH) saw its loss widen to $21.39 million, or $0.37 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $20.87 million, or $0.36 a share. On the other hand, adjusted net loss for the quarter narrowed to $10.94 million, or $0.19 a share from a loss of $12.95 million or $0.22 a share, a year ago. Revenue during the quarter grew 8.31 percent to $688.94 million from $636.08 million in the previous year period. Gross margin for the quarter expanded 91 basis points over the previous year period to 27.92 percent. Operating margin for the quarter period stood at positive 0.79 percent as compared to a negative 0.64 percent for the previous year period.
Operating income for the quarter was $5.43 million, compared with an operating loss of $4.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $80.14 million compared with $67.32 million in the prior year period. At the same time, adjusted EBITDA margin improved 105 basis points in the quarter to 11.63 percent from 10.58 percent in the last year period.
"We delivered strong top-line growth and Adjusted EBITDA in the first quarter, in line with our expectations, and we are on track to achieve our guidance for the full year,” said Alan S. McKim, chairman, president and chief executive officer. "Our results reflect the operating leverage in our business model. Adjusted EBITDA grew at more than twice the rate of revenues, driven by higher waste volumes, cost reductions and improved pricing, particularly in our lube oil business."
For fiscal year 2017, Clean Harbors, Inc. expects net income to be in the range of $4 million to $35 million. For the fiscal year 2017, Clean Harbors, Inc. forecasts adjusted net income to be in the range of $24 million to $48 million.
Operating cash flow improves significantlyClean Harbors, Inc. has generated cash of $57.12 million from operating activities during the quarter, up 45.38 percent or $17.83 million, when compared with the last year period. The company has spent $51.87 million cash to meet investing activities during the quarter as against cash outgo of $110.01 million in the last year period.
The company has spent $15.44 million cash to carry out financing activities during the quarter as against cash inflow of $236.79 million in the last year period.
Cash and cash equivalents stood at $297.37 million as on Mar. 31, 2017, down 16.32 percent or $57.98 million from $355.34 million on Mar. 31, 2016.
Working capital decreases marginally
Clean Harbors, Inc. has witnessed a decline in the working capital over the last year. It stood at $573.19 million as at Mar. 31, 2017, down 4.17 percent or $24.92 million from $598.11 million on Mar. 31, 2016. Current ratio was at 2.17 as on Mar. 31, 2017, down from 2.28 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 58 days for the last year period. Days sales outstanding went down to 67 days for the quarter compared with 70 days for the same period last year.
Days inventory outstanding has decreased to 16 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding was almost stable at 42 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Clean Harbors, Inc. remained almost stable for the quarter at $1,633.97 million, when compared with the last year period. Long-term debt of Clean Harbors, Inc. remained almost stable for the quarter at $1,633.97 million, when compared with the last year period. Total debt was 44.82 percent of total assets as on Mar. 31, 2017, compared with 44.80 percent on Mar. 31, 2016. Debt to equity ratio was at 1.54 as on Mar. 31, 2017, up from 1.46 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
