Clean Harbors Inc. reported a jump in third quarter earnings and revenue, much of it tied to the company's recent acquisition of Safety-Kleen and continued demand for its legacy services.
For the period ended Sept. 30 the Norwell, Mass.-based company's net income was $35.4 million, or $0.58 per diluted share, compared with $12.4 million, or $0.23 per diluted share, in the third quarter of 2012, it said in a press release.
Results for 2013 reflect the December 2012 acquisition of Safety-Kleen, said the company in a press release. Revenues for the third quarter of 2013 increased 70 percent to $907.5 million, compared with $533.8 million in the same period in 2012. Income from operations in the third quarter of 2013 increased 30 percent to $73.6 million from $56.7 million in the same period of 2012, which includes a 68 percent increase in depreciation and amortization expense.
Third-quarter 2013 net income was $35.4 million, or $0.58 per diluted share, compared with $12.4 million, or $0.23 per diluted share, in the third quarter of 2012. The Company's third-quarter 2013 net income includes approximately $2.7 million in pre-tax integration and severance costs. The third quarter of 2012 included a $26.4 million pre-tax charge related to senior debt refinancing. The effective tax rate in the third quarter of 2013 was 34.7%, compared with 33.8% in the same period of last year.
Adjusted EBITDA in the third quarter of 2013 increased 45 percent to $146.0 million, compared with $100.5 million in the same period of 2012. Third-quarter 2013 Adjusted EBITDA includes the $2.7 million in pre-tax integration and severance costs.
"In the third quarter, we exceeded $900 million in quarterly revenue for the first time in our history," said Alan S. McKim, Chairman and Chief Executive Officer, in the press release. "The 70% year-over-year growth was not only driven by the addition of Safety-Kleen but by a solid performance in our legacy business. Our Technical Services and Industrial and Field Services segments each achieved double-digit growth compared with a year ago. At the same time, our Oil and Gas Field Services segment had a strong quarter, growing 27% over the same period in 2012. Within Safety-Kleen, our Oil Re-refining and Recycling segment rebounded from a soft second quarter with higher total volume of base oil and blended oil sales, improved pricing and increased sales of byproducts."