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Providing Comprehensive Environmental Services for North America
Letter from the CEO and ChairmanDear Investors:
Clean Harbors is the leading provider of environmental services and the largest hazardous waste disposal company in North America. Founded in 1980, Clean Harbors provides a comprehensive suite of services including transportation and disposal, industrial cleaning and maintenance, chemical packaging and emergency response to more than 45,000 customers in 36 U.S. states, six Canadian provinces, Mexico and Puerto Rico.
Fiscal 2007 proved to be another record year for Clean Harbors, as we reinforced our leading position in the environmental services market. During the year, we maximized utilization at our extensive network of treatment and disposal assets, implemented price increases across our service lines to better counter outside cost pressures, and expanded the breadth of our management team with several key executive hires in human resources, business development and vertical markets. We also continued to grow our site service business by opening eight service locations in new geographies, thus strengthening our presence well beyond our traditional stronghold in the Northeast.
As a result of our efforts in 2007, we generated revenue of approximately $947 million, a 14 percent increase over 2006. Operating income rose 15 percent to $85.3 million, an impressive achievement in light of the pricing pressures we experienced for many of the goods we purchase, as well as rising labor, healthcare and insurance costs. EBITDA, which we believe most accurately gauges our performance, grew 11 percent to approximately $133 million.
Looking ahead, we are focused on delivering long-term shareholder value and on making the right investments to sustain our growth and competitive advantage.
We expect 2008 to be another year of growth, operational improvements and continued demand for our specialized services. We are excited about the future of Clean Harbors, and I look forward to sharing our continued success with you.
Sincerely,
Alan S. McKim
President, CEO and Chairman
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These forward-looking statements are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its various filings with the Securities and Exchange Commission.
A variety of factors beyond the control of the Company affect the Company's performance, including, but not limited to:
Any of the above factors and numerous others not listed nor foreseen may adversely impact the Company's financial performance. Additional information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, which may be viewed on www.cleanharbors.com/investor_relations.
Clean Harbors, Inc.
42 Longwater Drive
P.O. Box 9149
Norwell, MA 02061-9149
781.792.5000
Directions to Corporate Office
Alan S. McKim
Since 1980
Clean Harbors stock is traded on the NASDAQ stock exchange under the symbol CLHB.
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