The Following Results were Third Quarter
Records:
Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), a leading provider of
parts cleaning, used oil re-refining, and hazardous and
non-hazardous waste services primarily focused on small and
mid-sized customers, today announced results for the third quarter
which ended September 8, 2018.
Third Quarter Review
Revenues for the third quarter of 2018 were $99.7 million
compared to $83.3 million for the same quarter of 2017, an increase
of 19.6%.
Operating margin increased to 20.7% compared to 19.6% in the
third quarter of 2017 mainly driven by higher revenue in both of
our segments, partially offset by higher disposal, labor, and
transportation costs. Our third quarter SG&A expense as a
percentage of revenue decreased to 11.4% compared to 14.2% for the
third quarter of 2017 mainly driven by higher revenue and lower
severance costs, partially offset by higher share-based
compensation expense.
Net income attributable to common shareholders for the third
quarter was $6.3 million which is a record high for a third
quarter. This compares to net income attributable to common
shareholders of $4.7 million in the year earlier quarter. Diluted
earnings per share was $0.27 in the third quarter of fiscal 2018
compared to diluted earnings per share of $0.20 in the third
quarter of fiscal 2017.
Segments
Our Environmental Services segment includes parts cleaning,
containerized waste, vacuum services, antifreeze recycling, and
field services. Environmental Services revenue was $63.3 million
during the quarter compared to $55.0 million during the third
quarter of fiscal 2017. The increase in revenue was driven by
growth in all of our product and service lines with the strongest
growth in our field services, containerized waste, and antifreeze
businesses. Environmental Services profit before corporate selling,
general, and administrative expenses was $16.2 million which
represents a record high for a third quarter. This compares to
$14.9 million in the year ago quarter. The $1.3 million increase
was mainly driven by higher revenue, partially offset by higher
disposal and transportation costs.
President and CEO Brian Recatto commented, "While we achieved
approximately 9% growth in profit before SG&A expense in this
segment on a year-over-year basis, we believe our improvement could
have been greater if not for the inflationary pressure we
experienced during the third quarter."
Our Oil Business segment includes used oil collection
activities, sales of recycled fuel oil, and re-refining activities.
During the third quarter of fiscal 2018, Oil Business revenues
increased 28.6% to $36.4 million compared to $28.3 million in the
third quarter of fiscal 2017. The increase in revenue was due to
stronger base oil pricing and higher volumes of base oil gallons
sold. Oil Business segment operating margin was 12.0% in the third
quarter of 2018 compared to 4.9% in the third quarter of fiscal
2017. Higher operating margin was due to improved route efficiency
in our used oil collection business, and lower operating costs at
our re-refinery.
Recatto commented, "We are very proud that for the first time we
generated double-digit operating margin in consecutive quarters in
this segment."
Safe Harbor Statement
All references to the “Company,” “we,” “our,” and “us” refer to
Heritage-Crystal Clean, Inc., and its subsidiaries.
This release contains forward-looking statements that are based
upon current management expectations. Generally, the words "aim,"
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "project," "should," "will be," "will continue,"
"will likely result," "would" and similar expressions identify
forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that could cause our actual results, performance or
achievements or industry results to differ materially from any
future results, performance or achievements expressed or implied by
these forward-looking statements. These risks, uncertainties and
other important factors include, among others: general economic
conditions and downturns in the business cycles of automotive
repair shops, industrial manufacturing businesses and small
businesses in general; increased solvent, fuel and energy costs and
volatility in the price of crude oil, the selling price of
lubricating base oil, solvent, fuel, energy, and commodity costs;
our ability to successfully integrate businesses that we acquire;
our ability to enforce our rights under the FCC Environmental
purchase agreement; our ability to pay our debt when due and comply
with our debt covenants; our ability to successfully operate our
used oil re-refinery and to cost effectively collect or purchase
used oil or generate operating results; increased market supply or
decreased demand for base oil; further consolidation and/or
declines in the United States automotive repair and manufacturing
industries; the impact of extensive environmental, health and
safety and employment laws and regulations on our business;
legislative or regulatory requirements or changes adversely
affecting our business; competition in the industrial and hazardous
waste services industries and from other used oil processing
facilities including other re-refineries; claims and involuntary
shutdowns relating to our handling of hazardous substances; the
value of our used solvents and oil inventory, which may fluctuate
significantly; our ability to expand our non-hazardous programs for
parts cleaning; our dependency on key employees; our level of
indebtedness, which could affect our ability to fulfill our
obligations, impede the implementation of our strategy, and expose
us to interest rate risk; our ability to effectively manage our
extended network of branch locations; the control of The Heritage
Group over the Company; and the risks identified in our Annual
Report on Form 10-K filed with the SEC on March 1, 2018 and
subsequent filings with the SEC. Given these uncertainties, you are
cautioned not to place undue reliance on these forward-looking
statements. We assume no obligation to update or revise them or
provide reasons why actual results may differ. The information in
this release should be read in light of such risks and in
conjunction with the consolidated financial statements and the
notes thereto included elsewhere in this release.
About Heritage-Crystal Clean, Inc.
Heritage-Crystal Clean, Inc. provides parts cleaning, used oil
re-refining, and hazardous and non-hazardous waste services
primarily to small and mid-sized customers in the vehicle
maintenance sector as well as manufacturers and other industrial
businesses. Our service programs include parts cleaning,
containerized waste management, used oil collection and
re-refining, vacuum truck services, waste antifreeze collection,
recycling and product sales, and field services. These
services help our customers manage their used chemicals and liquid
and solid wastes, while also helping to minimize their regulatory
burdens. Our customers include businesses involved in vehicle
maintenance operations, such as car dealerships, automotive repair
shops, and trucking firms, as well as small-to-medium sized
manufacturers, such as metal product fabricators and printers, and
other industrial businesses. Through our used oil re-refining
program, we recycle used oil into high quality lubricating base
oil, and we are a supplier to firms that produce and market
finished lubricants. Through our antifreeze program we recycle
spent antifreeze and produce a full line of virgin-quality
antifreeze products. Heritage-Crystal Clean, Inc. is
headquartered in Elgin, Illinois, and operates through 89 branches
serving over 90,000 customer locations.
Conference Call
The Company will host a conference call on Thursday, October 18,
2018 at 9:30 AM Central Time, during which management will give a
brief presentation focusing on the Company's operations and
financial results. Interested parties can listen to the audio
webcast available through our company
website, http://crystal-clean.com/investor-relations/, and can
participate in the call by dialing (720) 545-0014.
The Company uses its website to make information available to
investors and the public at www.crystal-clean.com.
CONTACT
Mark DeVita, Chief Financial Officer, at (847) 836-5670
|
Heritage-Crystal Clean,
Inc.Condensed Consolidated Balance
Sheets(In Thousands, Except Share and Par Value
Amounts)(Unaudited) |
|
|
|
September 8,
2018 |
|
December 30,
2017 |
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
46,315 |
|
|
$ |
41,889 |
|
Accounts receivable - net |
|
51,051 |
|
|
45,491 |
|
Inventory - net |
|
29,745 |
|
|
21,639 |
|
Other current assets |
|
6,745 |
|
|
5,895 |
|
Total Current Assets |
|
133,856 |
|
|
114,914 |
|
Property, plant and equipment - net |
|
133,753 |
|
|
128,119 |
|
Equipment at customers - net |
|
23,767 |
|
|
23,312 |
|
Software and intangible assets - net |
|
15,211 |
|
|
16,732 |
|
Goodwill |
|
34,125 |
|
|
31,580 |
|
Total Assets |
|
$ |
340,712 |
|
|
$ |
314,657 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts payable |
|
$ |
31,411 |
|
|
$ |
25,568 |
|
Contract liabilities - net |
|
231 |
|
|
— |
|
Accrued salaries, wages, and benefits |
|
4,923 |
|
|
6,386 |
|
Taxes payable |
|
6,679 |
|
|
5,787 |
|
Other current liabilities |
|
4,783 |
|
|
2,690 |
|
Total Current Liabilities |
|
48,027 |
|
|
40,431 |
|
Long-term
debt |
|
28,953 |
|
|
28,744 |
|
Deferred
income taxes |
|
13,554 |
|
|
9,556 |
|
Total Liabilities |
|
$ |
90,534 |
|
|
$ |
78,731 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
Common stock - 26,000,000 shares authorized at $0.01 par value,
23,050,109 and 22,891,674 shares issued and outstanding at
September 8, 2018 and December 30, 2017, respectively |
|
$ |
231 |
|
|
$ |
229 |
|
Additional paid-in capital |
|
196,082 |
|
|
193,640 |
|
Retained earnings |
|
53,315 |
|
|
41,359 |
|
Total Heritage-Crystal Clean, Inc. Stockholders' Equity |
|
249,628 |
|
|
235,228 |
|
Noncontrolling interest |
|
550 |
|
|
698 |
|
Total Equity |
|
$ |
250,178 |
|
|
$ |
235,926 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
340,712 |
|
|
$ |
314,657 |
|
|
|
|
|
|
|
|
|
|
Heritage-Crystal Clean,
Inc.Condensed Consolidated Statements of
Income(In Thousands, Except per Share
Amounts)(Unaudited) |
|
|
|
|
Third Quarter
Ended, |
|
First Three Quarters
Ended, |
|
|
|
September 8,
2018 |
|
September 9,
2017 |
|
September 8,
2018 |
|
September 9,
2017 |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
58,054 |
|
|
$ |
54,048 |
|
|
$ |
172,205 |
|
|
$ |
162,071 |
|
|
Product revenues |
|
41,620 |
|
|
29,283 |
|
|
110,918 |
|
|
88,095 |
|
Total revenues |
|
$ |
99,674 |
|
|
$ |
83,331 |
|
|
$ |
283,123 |
|
|
$ |
250,166 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Operating costs |
|
$ |
76,045 |
|
|
$ |
63,649 |
|
|
$ |
220,702 |
|
|
$ |
188,210 |
|
|
Selling, general, and administrative expenses |
|
10,641 |
|
|
10,955 |
|
|
33,185 |
|
|
33,871 |
|
|
Depreciation and amortization |
|
3,776 |
|
|
4,186 |
|
|
11,078 |
|
|
12,501 |
|
|
Other expense (income) - net |
|
253 |
|
|
(3,078 |
) |
|
983 |
|
|
(11,112 |
) |
Operating income |
|
8,959 |
|
|
7,619 |
|
|
17,175 |
|
|
26,696 |
|
Interest expense – net |
|
256 |
|
|
276 |
|
|
742 |
|
|
775 |
|
Income before income taxes |
|
8,703 |
|
|
7,343 |
|
|
16,433 |
|
|
25,921 |
|
Provision for income taxes |
|
2,284 |
|
|
2,586 |
|
|
3,996 |
|
|
9,361 |
|
Net income |
|
6,419 |
|
|
4,757 |
|
|
12,437 |
|
|
16,560 |
|
Income attributable to noncontrolling interest |
|
74 |
|
|
53 |
|
|
213 |
|
|
158 |
|
Net income attributable to Heritage-Crystal Clean,
Inc. common stockholders |
|
$ |
6,345 |
|
|
$ |
4,704 |
|
|
$ |
12,224 |
|
|
$ |
16,402 |
|
|
|
|
|
|
|
|
|
|
Net income per share: basic |
|
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
0.53 |
|
|
$ |
0.73 |
|
Net income per share: diluted |
|
$ |
0.27 |
|
|
$ |
0.20 |
|
|
$ |
0.52 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
Number of weighted average shares outstanding:
basic |
|
23,048 |
|
|
22,686 |
|
|
23,013 |
|
|
22,515 |
|
Number of weighted average shares outstanding:
diluted |
|
23,404 |
|
|
22,970 |
|
|
23,299 |
|
|
22,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage-Crystal Clean,
Inc.Reconciliation of Operating Segment
Information(Unaudited) |
|
Third Quarter
Ended, |
September 8,
2018 |
|
(thousands) |
|
EnvironmentalServices |
|
Oil Business |
|
Corporate and
Eliminations |
|
Consolidated |
Revenues |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
55,473 |
|
|
$ |
2,581 |
|
|
$ |
— |
|
|
$ |
58,054 |
|
|
Product revenues |
|
7,834 |
|
|
33,786 |
|
|
— |
|
|
41,620 |
|
Total revenues |
|
$ |
63,307 |
|
|
$ |
36,367 |
|
|
$ |
— |
|
|
$ |
99,674 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Operating costs |
|
45,460 |
|
|
30,585 |
|
|
— |
|
|
76,045 |
|
|
Operating depreciation and amortization |
|
1,599 |
|
|
1,410 |
|
|
— |
|
|
3,009 |
|
Profit before corporate selling, general, and
administrative expenses |
|
$ |
16,248 |
|
|
$ |
4,372 |
|
|
$ |
— |
|
|
$ |
20,620 |
|
Selling, general, and administrative expenses |
|
|
|
|
|
10,641 |
|
|
10,641 |
|
Depreciation and amortization from SG&A |
|
|
|
|
|
767 |
|
|
767 |
|
Total selling, general, and administrative
expenses |
|
|
|
|
|
$ |
11,408 |
|
|
$ |
11,408 |
|
Other expense - net |
|
|
|
|
|
253 |
|
|
253 |
|
Operating income |
|
|
|
|
|
|
|
|
|
8,959 |
|
Interest expense – net |
|
|
|
|
|
256 |
|
|
256 |
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
$ |
8,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended, |
September 9,
2017 |
|
(thousands) |
|
EnvironmentalServices |
|
Oil Business |
|
Corporate and
Eliminations |
|
Consolidated |
Revenues |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
49,419 |
|
|
$ |
4,629 |
|
|
$ |
— |
|
|
$ |
54,048 |
|
|
Product revenues |
|
5,623 |
|
|
23,660 |
|
|
— |
|
|
29,283 |
|
Total revenues |
|
$ |
55,042 |
|
|
$ |
28,289 |
|
|
$ |
— |
|
|
$ |
83,331 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs |
|
38,298 |
|
|
25,351 |
|
|
— |
|
|
63,649 |
|
|
Operating depreciation and amortization |
|
1,794 |
|
|
1,555 |
|
|
— |
|
|
3,349 |
|
Profit before corporate selling, general, and
administrative expenses |
|
$ |
14,950 |
|
|
$ |
1,383 |
|
|
$ |
— |
|
|
$ |
16,333 |
|
Selling, general, and administrative expenses |
|
|
|
|
|
|
|
|
|
10,955 |
|
|
10,955 |
|
Depreciation and amortization from SG&A |
|
|
|
|
|
|
|
|
|
837 |
|
|
837 |
|
Total selling, general, and administrative
expenses |
|
|
|
|
|
|
|
|
|
$ |
11,792 |
|
|
$ |
11,792 |
|
Other (income) - net |
|
|
|
|
|
|
|
|
|
(3,078 |
) |
|
(3,078 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,619 |
|
Interest expense – net |
|
|
|
|
|
|
|
|
|
276 |
|
|
276 |
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Three Quarters
Ended, |
September 8,
2018 |
|
(thousands) |
|
EnvironmentalServices |
|
Oil Business |
|
Corporate and
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
163,428 |
|
|
$ |
8,777 |
|
|
$ |
— |
|
|
$ |
172,205 |
|
|
Product revenues |
|
21,798 |
|
|
89,120 |
|
|
— |
|
|
110,918 |
|
Total revenues |
|
$ |
185,226 |
|
|
$ |
97,897 |
|
|
$ |
— |
|
|
$ |
283,123 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Operating costs |
|
134,640 |
|
|
86,062 |
|
|
— |
|
|
220,702 |
|
|
Operating depreciation and amortization |
|
4,590 |
|
|
4,188 |
|
|
— |
|
|
8,778 |
|
Profit before corporate selling, general, and
administrative expenses |
|
$ |
45,996 |
|
|
$ |
7,647 |
|
|
$ |
— |
|
|
$ |
53,643 |
|
Selling, general, and administrative expenses |
|
|
|
|
|
33,185 |
|
|
33,185 |
|
Depreciation and amortization from SG&A |
|
|
|
|
|
2,300 |
|
|
2,300 |
|
Total selling, general, and administrative
expenses |
|
|
|
|
|
$ |
35,485 |
|
|
$ |
35,485 |
|
Other expense - net |
|
|
|
|
|
983 |
|
|
983 |
|
Operating income |
|
|
|
|
|
|
|
|
|
17,175 |
|
Interest expense – net |
|
|
|
|
|
742 |
|
|
742 |
|
Income before income taxes |
|
|
|
|
|
|
|
$ |
16,433 |
|
|
|
|
|
|
|
|
|
|
|
|
First Three Quarters
Ended, |
September 9,
2017 |
|
(thousands) |
|
EnvironmentalServices |
|
Oil Business |
|
Corporate and
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Service revenues |
|
$ |
146,135 |
|
|
$ |
15,936 |
|
|
$ |
— |
|
|
$ |
162,071 |
|
|
Product revenues |
|
17,215 |
|
|
70,880 |
|
|
— |
|
|
88,095 |
|
Total revenues |
|
$ |
163,350 |
|
|
$ |
86,816 |
|
|
$ |
— |
|
|
$ |
250,166 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs |
|
111,419 |
|
|
76,791 |
|
|
— |
|
|
188,210 |
|
|
Operating depreciation and amortization |
|
5,341 |
|
|
4,624 |
|
|
— |
|
|
9,965 |
|
Profit before corporate selling, general, and
administrative expenses |
|
$ |
46,590 |
|
|
$ |
5,401 |
|
|
$ |
— |
|
|
$ |
51,991 |
|
Selling, general, and administrative expenses |
|
|
|
|
|
33,871 |
|
|
33,871 |
|
Depreciation and amortization from SG&A |
|
|
|
|
|
2,536 |
|
|
2,536 |
|
Total selling, general, and administrative
expenses |
|
|
|
|
|
$ |
36,407 |
|
|
$ |
36,407 |
|
Other (income) - net |
|
|
|
|
|
(11,112 |
) |
|
(11,112 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
26,696 |
|
Interest expense – net |
|
|
|
|
|
775 |
|
|
775 |
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
$ |
25,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage-Crystal Clean,
Inc. |
Reconciliation of our Net
Income Determined in Accordance with U.S. GAAP to Earnings Before
Interest, Taxes, Depreciation & Amortization (EBITDA) and to
Adjusted EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended, |
|
First Three Quarters
Ended, |
|
|
|
|
|
|
|
|
|
|
|
(thousands) |
|
|
September 8,
2018 |
|
September 9,
2017 |
|
September 8,
2018 |
|
September 9,
2017 |
Net income |
|
|
$ |
6,419 |
|
|
$ |
4,757 |
|
|
$ |
12,437 |
|
|
$ |
16,560 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense - net |
|
256 |
|
|
276 |
|
|
742 |
|
|
775 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
2,284 |
|
|
2,586 |
|
|
3,996 |
|
|
9,361 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
3,776 |
|
|
4,186 |
|
|
11,078 |
|
|
12,501 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (a) |
|
|
$ |
12,735 |
|
|
$ |
11,805 |
|
|
$ |
28,253 |
|
|
$ |
39,197 |
|
|
|
|
|
|
|
|
|
|
|
|
Legal Fees (b) |
|
— |
|
|
— |
|
|
— |
|
|
727 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash compensation (c) |
|
1,190 |
|
|
616 |
|
|
3,060 |
|
|
1,962 |
|
|
|
|
|
|
|
|
|
|
|
Gain from Arbitration award (d) |
|
— |
|
|
— |
|
|
— |
|
|
(5,136 |
) |
|
|
|
|
|
|
|
|
|
|
Gain from settlement with sellers of FCCE (e) |
|
— |
|
|
— |
|
|
— |
|
|
(3,600 |
) |
|
|
|
|
|
|
|
|
|
Gain on sale of property (f) |
|
— |
|
|
(3,071 |
) |
|
— |
|
|
(3,071 |
) |
|
|
|
|
|
|
|
|
|
Severance (g) |
|
— |
|
|
1,221 |
|
|
639 |
|
|
1,221 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (h) |
|
$ |
13,925 |
|
|
$ |
10,571 |
|
|
$ |
31,952 |
|
|
$ |
31,300 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
EBITDA represents net income before
provision for income taxes, interest income, interest expense,
depreciation and amortization. We have presented EBITDA because we
consider it an important supplemental measure of our performance
and believe it is frequently used by analysts, investors, our
lenders, and other interested parties in the evaluation of
companies in our industry. Management uses EBITDA as a measurement
tool for evaluating our actual operating performance compared to
budget and prior periods. Other companies in our industry may
calculate EBITDA differently than we do. EBITDA is not a measure of
performance under U.S. GAAP and should not be considered as a
substitute for net income prepared in accordance with U.S. GAAP.
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our
results as reported under U.S. GAAP. Some of these limitations
are: |
|
|
|
EBITDA does not reflect our cash
expenditures, or future requirements, for capital expenditures or
contractual commitments; |
|
|
|
EBITDA does not reflect interest expense
or the cash requirements necessary to service interest or principal
payments on our debt; |
|
EBITDA does not reflect tax
expense or the cash requirements necessary to pay for tax
obligations; and |
|
|
|
|
Although depreciation and amortization are
non-cash charges, the assets being depreciated and amortized will
often have to be replaced in the future, and EBITDA does not
reflect any cash requirements for such replacements. |
|
|
|
We compensate for these limitations by
relying primarily on our U.S. GAAP results and using EBITDA only as
a supplement. |
|
|
|
|
|
(b) |
Legal fees incurred to resolve routine and
non-routine matters stemming from the acquisition of FCC
Environmental and International Petroleum Corp. |
|
|
(c) |
Non-cash compensation expenses which are
recorded in SG&A. |
|
|
(d) |
Gain from partial award for claims made in
our arbitration related to our acquisition of FCC Environmental and
International Petroleum Corp. in 2014. |
|
|
(e) |
Settlement of disputes related to the
acquisition of FCC Environmental and International Petroleum Corp.
of Delaware. |
|
|
|
|
|
(f) |
Gain from sale of a facility in Pompano
Beach, Florida. |
|
|
|
|
|
(g) |
Severance charges related to the departure
of our COO and other employee separations. |
|
|
(h) |
We have presented Adjusted EBITDA because
we consider it an important supplemental measure of our performance
and believe it may be used by analysts, investors, our lenders, and
other interested parties in the evaluation of our performance.
Other companies in our industry may calculate Adjusted EBITDA
differently than we do. Adjusted EBITDA is not a measure of
performance under U.S. GAAP and should not be considered as a
substitute for net income prepared in accordance with U.S. GAAP.
Adjusted EBITDA has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis
of our results as reported under U.S. GAAP. |
Use of Non-GAAP Financial
Measures |
|
|
|
Adjusted net earnings (loss) and adjusted net earnings
(loss) per share are non-GAAP financial measures. Non-GAAP
financial measures should be considered in addition to, but not as
substitute for, financial measures prepared in accordance with
GAAP. Management believes that adjusted net earnings and adjusted
net earnings per share provides investors and management useful
information about the earnings impact on the gain on sale of
property in the third fiscal quarter of 2017 compared to earnings
in the third fiscal quarter of 2018. |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of our Net Earnings and Net
Earnings Per Share Determined in Accordance with U.S. GAAP to our
Non-GAAP Adjusted Net Earnings and Non-GAAP Adjusted Net Earnings
Per Share |
(In thousands, except per share
amounts) |
|
|
Third Quarter Ended, |
|
|
|
|
|
September 8, 2018 |
|
September 9, 2017 |
|
|
|
|
GAAP net earnings |
$ |
6,345 |
|
|
$ |
4,704 |
|
|
|
|
|
Gain on sale of
property |
|
|
(3,071 |
) |
|
|
|
|
Severance of COO |
— |
|
|
1,221 |
|
|
|
|
|
Net tax effect of items
above |
— |
|
|
691 |
|
|
|
|
|
Adjusted net
earnings |
$ |
6,345 |
|
|
$ |
3,545 |
|
|
|
|
|
GAAP diluted earnings
per share |
$ |
0.27 |
|
|
$ |
0.20 |
|
|
|
|
|
Gain on sale of
property per share |
— |
|
|
(0.13 |
) |
|
|
|
|
Severance of COO per
share |
— |
|
|
0.05 |
|
|
|
|
|
Net tax effect per
share of items above |
— |
|
|
0.03 |
|
|
|
|
|
Adjusted diluted
earnings per share |
$ |
0.27 |
|
|
$ |
0.15 |
|
|
|
|
|
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