Waste management firm Clean Harbors Inc. posted a loss for its third quarter, resulting from economic difficulties with its Oil Re-refining and Recycling segment.
For the quarter ended Sept. 30, the Norwell, Mass.-based Clean Harbors reported a net loss of $93.3 million, or $1.55 per diluted share, compared with net income of $35.4 million, or 58 cents per diluted share, in the year-ago period.
Revenue for the period fell 6.2 percent to $851.5 million from $907.5 million in 2013, according to a news release.
The loss includes an impairment charge of $123.4 million related to its Oil Re-refining and Recycling segment, based on the recent significantly lower base and blended oil prices.
“We delivered strong third-quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and operating margins despite falling short of our revenue target,” said Alan McKim, chairman and CEO. “Revenue was below our guidance range based on several factors. Project activity in the Oil Sands further slowed during the quarter, leading to softness in our Industrial and Field Services and Lodging Services segments. Oil and Gas Field Services underperformed due to commodity pressures and competition. Despite these headwinds, our focus on reducing costs and channeling resources to our most profitable businesses enabled us to achieve an adjusted EBITDA margin of 18 percent, up nearly 200 basis points from a year ago.”
For the nine months, Clean Harbors posted a net loss of $55.7 million, 92 cents per diluted share, compared with a net profit of $68.8 million, or $1.13 per diluted share, a year earlier. Revenue dropped 2.8 percent to $2.56 billion from $2.63 billion.
Based on its year-to-date performance and current market conditions, Clean Harbors adjusted its previously announced 2014 annual revenue and adjusted EBITDA guidance. The company now expects revenue in the range of $3.4 billion to $3.42 billion, compared with its previously announced range of $3.5 billion to $3.6 billion. It now expects adjusted EBITDA in the range of $510 million to $520 million, compared with its previously announced range of $535 million to $555 million.