Clean Harbors, Inc. (NYSE:CLH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 09:00 am ET


Clean Harbors, Inc. (NYSE:CLH) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings. Welcome to Clean Harbors' Second Quarter 2020 Conference Call. [Operator Instructions].

At this time, I'll turn the conference over to Michael McDonald, General Counsel for Clean Harbors. Thank you, Mr McDonald. You may now begin.

Michael R McDonald

Thank you, Rob and good morning everyone. With me on today's call are Chairman, President and Chief Executive Officer, Alan S. McKim; EVP and Chief Financial Officer, Mike Battles; and SVP of Investor Relations, Jim Buckley. Slides for today's call are posted on our website and we invite you to follow along.

Matters we are discussing today, that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Participants are cautioned not to place undue reliance on these statements, which reflect management's opinions only as of today, August 5, 2020. Information on potential factors and risks that could affect our actual results of operations is included in our SEC filings. The Company undertakes no obligation to revise or publicly release the results of any revision to the statements made in today's call, other than through filings made concerning this reporting period.

In addition, today's discussion will include references to non-GAAP measures. Clean Harbors believes that such information provides an additional measurement and consistent historical comparison of its performance. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are available in today's news release, on our website and in the appendix of today's presentation.

And now I'd like to turn the call over to our CEO, Alan McKim. Alan?

Alan S. McKim

Thanks Michael. Good morning, everyone and thank you for joining us.

Before discussing our results, let me take this opportunity to publicly thank our entire Clean Harbors team, particularly those on the front lines for their outstanding work throughout the pandemic. Our Q2 performance underscores the versatility of our business model and our leadership role and emergency response. Responding to crisis is an integral part of the job here at Clean Harbors. It's in our DNA and that ability enabled us to jump into action late in Q1 and into Q2 with a wide-ranging response plan. It began with setting strict safety protocols and gathering the proper equipment to protect our workforce. We've been successfully at staying safe, the infection rate among our workforce remains well below the per capita rates of the U.S. and Canada.

Now let's turn to our high level overview for our Q2 results here on Slide 3. In response to the recessionary environment caused by COVID-19, we implemented a comprehensive series of actions that included implementing a hiring, wage and travel freeze, temporarily closing nearly half our re-refining capacity, transitioning a majority of our non-field based employees to work-from-home, lowering our capital spending, reducing our overall cost structure to align with revenues, launching our COVID-19 emergency response service offering.

On the strength of these actions and improving market conditions, since we spoke with you in late April, we delivered a better than expected performance in Q2. Revenues came in at