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News Article | October 19, 2016
Site: globenewswire.com

ELGIN, Ill., Oct. 19, 2016 (GLOBE NEWSWIRE) -- 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 and first three quarters of fiscal 2016, which ended September 10, 2016. The Company's Founder, President, and Chief Executive Officer, Joe Chalhoub, commented, "We are pleased with the continued improvement in the profitability of our Oil Business segment over the last two quarters.  During the third quarter we realized the benefit of an improvement in our base oil spread due primarily to higher base oil selling prices and a small improvement in our average used oil collection charge." Chalhoub added, "While revenue in our Environmental Services segment continued to be under pressure in the third quarter due to decreased activity at customers in and around the energy sector, we expect to generate revenue growth in this segment during the fourth quarter.  Given the lack of revenue growth in the segment, we are especially pleased with our improvement in operating margin for the quarter." Mark DeVita, Chief Financial Officer, stated, "We saw improved operating margin percentages in both of our business segments during the third quarter.  During the third quarter our profit before corporate SG&A expense in the Environmental Services segment was 29.4% compared to 28.7% in the third quarter of fiscal 2015.  In our Oil Business segment our profit before corporate SG&A expense was 5.7% compared to 2.1% in the third quarter of fiscal 2015." DeVita added, "We are also pleased to report our cash flow from operations was approximately $9.6 million during the third quarter of fiscal 2016.  Our cash balance at the end of the quarter was $29.8 million, which represents a $4.5 million increase compared to the end of the second quarter." DeVita also added, "Our net income attributable to common shareholders during the third quarter was negatively impacted by legal fees and other expenses stemming from our acquisition of FCC Environmental.  We believe a majority of the legal fees and other expenses stemming from our acquisition of FCC Environmental have now been recognized.  Excluding the impact of these expenses our adjusted net income attributable to common shareholders for the third quarter would have been $0.22 per share." 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 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; our ability to realize the anticipated benefits from our used oil re-refinery expansion within the expected time period, or at all; 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 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 16, 2016 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. Heritage-Crystal Clean, Inc. provides parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle service sectors.  Our service programs include parts cleaning, containerized waste management, used oil collection and re-refining, vacuum truck services, waste antifreeze collection and recycling, 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 and mid-sized manufacturers, such as metal product fabricators and printers.  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.  Heritage-Crystal Clean, Inc. is headquartered in Elgin, Illinois, and operates through 83 branches serving approximately 100,000 customer locations. The Company will host a conference call on Thursday, October 20, 2016 at 9:30 AM Central Time, during which management will make 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://www.crystal-clean.com/investor/FinancialReleases.asp, 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. Total assets by segment as of September 10, 2016 and January 2, 2016 were as follows: Segment assets for the Environmental Services and Oil Business segments consist of property, plant, and equipment, intangible assets, accounts receivable, goodwill, and inventories.  Assets for the corporate unallocated amounts consist of cash, other current assets, and property, plant, and equipment used at the corporate headquarters.


ELGIN, Ill., March 01, 2017 (GLOBE NEWSWIRE) -- Heritage-Crystal Clean, Inc. (Nasdaq:HCCI), a leading provider of parts cleaning, hazardous and non-hazardous waste services, and used oil re-refining primarily focused on small and mid-sized customers, today announced results for the fourth quarter of fiscal 2016 and for the full fiscal year, which ended December 31, 2016. Revenue for the fourth quarter of 2016 was $106.7 million compared to $100.4 million for the same quarter of 2015, an increase of 6.4%. Operating margin increased to 21.1% from 14.4% in the fourth quarter of 2015 which was negatively impacted due to inventory write-downs. Higher revenue from used oil collection services, and lower disposal costs helped improve margins during the quarter. Our SG&A expense as a percentage of revenue was 15.5% for the fourth quarter compared to 15.0% of revenue in the fourth quarter of 2015. Net income attributable to common shareholders for the fourth quarter was $3.4 million compared to a net loss attributable to common shareholders of $2.5 million in the year earlier quarter. Basic earnings per share was $0.15 in the fourth quarter of fiscal 2016 compared to a loss of $0.11 in the fourth quarter of fiscal 2015. After excluding severance and related costs, adjusted earnings per share for the fourth quarter of fiscal 2016 would have been $0.20 per share. In 2016 we generated $347.6 million of revenue, compared to prior year revenue of $350.0 million, a decrease of $2.4 million or 0.7%. Operating margin increased to 18.9% in fiscal 2016 compared to 16.0% in fiscal in fiscal 2015. The improvement in profitability is due to significantly higher revenues from used oil collection charges, significantly lower inventory write-downs, and lower fuel prices in fiscal 2016 compared to fiscal 2015. SG&A expense for fiscal 2016 was 15.4% of revenue, up from 14.0% in fiscal 2015 mainly due to higher legal fees year over year. Net income attributable to common shareholders for fiscal 2016 was $5.8 million compared to net income attributable to common shareholders of $1.3 million for fiscal 2015. Basic earnings per share was $0.26 for fiscal 2016 compared to $0.06 in fiscal 2015. The Company’s recently appointed President and CEO Brian Recatto commented, “We are pleased that we were able to achieve record net income during the year.” Mark DeVita, Chief Financial Officer stated, "Along with record profitability we were able to generate improved cash flow during 2016 which will give us the flexibility to take advantage of future opportunities to help grow our revenue." Our Environmental Services segment includes parts cleaning, containerized waste, vacuum services, antifreeze recycling, and field services. Environmental Services revenues remained flat at $68.3 million during the quarter compared to the fourth quarter of fiscal 2015. During fiscal 2016, Environmental Services segment revenues decreased $1.9 million, or 0.9%, compared to fiscal 2015. The decrease in this segment was primarily driven by a downturn in activity at customers directly involved in, and related to, the energy sector. Brian Recatto commented, "While we had hoped to see revenue growth during the fourth quarter, we are optimistic that the stable results produced in the quarter will provide the foundation for renewed growth in our Environmental Services segment businesses during 2017." Our Oil Business segment includes used oil collection activities, sales of recycled fuel oil, and re-refining activities. During the fourth quarter of fiscal 2016, Oil Business revenues increased 20.1% to $38.5 million compared to $32.0 million in the fourth quarter of fiscal 2015. The revenue increase was mainly driven by higher charges for used oil collection services and higher volumes of base oil sold. Oil Business segment operating margin was 4.1% in the fourth quarter of 2016 compared to a loss of 18.7% in the fourth quarter of fiscal 2015. Brian Recatto, commented, "Even with very challenging market conditions in early 2016 we were able to stabilize our Oil Business segment after the first quarter. We believe we have additional opportunities to drive improved efficiencies in this business during 2017." During the first quarter of fiscal 2017 we received a partial award for a claim made in our ongoing arbitration related to our acquisition of FCC Environmental in 2014.  As part of the partial award we received a payment of $5.5 million for which we will recognize a gain during the first quarter of fiscal 2017. 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, including a drop in the price of crude oil, the selling price of lubricating base oil, solvent, fuel, energy, and commodity costs; 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 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 the Company's Annual Report on Form 10-K filed with the SEC on March 17, 2016. 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. Heritage-Crystal Clean, Inc. provides parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle service sectors. Our service programs include parts cleaning, containerized waste management, used oil collection and re-refining, vacuum truck services and waste antifreeze collection and recycling. 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 manufacturers, such as metal product fabricators and printers. 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. Heritage-Crystal Clean, Inc. is headquartered in Elgin, Illinois, and operates through 83 branches serving approximately 107,000 customer locations. The Company will host a conference call on Thursday, March 2, 2017 at 9:30 AM Central Time, during which management will make 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://www.crystal-clean.com/investor/FinancialReleases.asp, and can participate in the call by dialing (720) 545-0014. The Company uses its website to make available information to investors and the public at www.crystal-clean.com.


Zhang B.,Golder UK Ltd | Fowmes G.,FCC Environmental | Russell D.,Golder UK Ltd | Jones V.,Golder UK Ltd
Proceedings of Institution of Civil Engineers: Waste and Resource Management | Year: 2012

The capping system is one of the major structural elements in modern landfills. When using artificial sealing materials (e.g. a geomembrane) as the capping liner, the stability of the cover soils and integrity of the geosynthethics need to be assessed. Traditional design methods only consider uniform cover soil thickness with different degrees of saturation and seepage build-up (i.e. parallel submergency ratio). This paper proposes an analytical method which includes the seepage build-up in the stability analysis for the capping slope with a tapered cover soil profile, that is when cover soils become thicker from top to bottom. Both the parallel (modified) and horizontal seepage force build-up patterns have been considered and analysed. The proposed analytical methods are applied to a design case in which uniform thickness cover soils are considered. The results are comparable to those of the traditional methods and therefore they are verified. Parametric analyses have confirmed the tapered profile can effectively improve the capping slope stability and indicated that the interface shear strength (between the cover soil and the underlying geosynthetic) and cover soil shear strength have the most significant effects on the capping slope stability.


Fowmes G.J.,Loughborough University | Zamara K.,FCC Environmental
10th International Conference on Geosynthetics, ICG 2014 | Year: 2014

With diminishing waste streams many sites now face closure before filling to intended profiles. As a result, slopes which were intended as temporary waste slopes now require permanent capping solutions to be installed. These slopes are often steep and challenging to cap. Various stability and integrity issues arise with solutions including the use of reinforcement within the capping layers. However, on long slopes the total forces are often large and anchorage on benches can be problematic. Tapering the cover soils can achieve a stable solution; however, large soil volumes may be required to achieve a satisfactory resistance to failure. This paper considers a case study of a 72m high temporary waste slope requiring a permanent capping solution. Interface shear strength is critical on such steep slopes and sampling, testing and interpretation requires careful consideration. A number of shear strength tests were carried out as part of the project and this paper shall consider the designer's concerns around the interpretation of these tests for use in stability analysis. As part of construction of the regulating soil, variable material was delivered to site, some with moisture content higher than specified, thus potentially reducing the strength and introducing a weak layer. This paper considers the challenges in stability risk assessment, data interpretation and future instrumentation requirements at the site.


Zamara K.A.,Loughborough University | Zamara K.A.,Golder Associates | Dixon N.,Loughborough University | Jones D.R.V.,Golder Associates | Fowmes G.,FCC Environmental
Geotextiles and Geomembranes | Year: 2012

Municipal solid waste landfill barrier systems often comprise a combination of geosynthetics and mineral layers. Throughout the last twenty years there has been extensive research on the interactions between the materials and on performance of the geosynthetics including aspects of durability. This research has resulted in significant advances in the design and specification of landfill lining systems. However, to date there has been limited research carried out on in situ landfill lining system behaviour. Measured behaviour from field scale trials and of in service operation can provide valuable information on landfill lining system performance and allow a better understanding of composite material behaviour. Although many numerical modelling programs are applied to evaluate lining system stability and integrity, data to validate these models is currently limited. This paper highlights the data required to validate numerical models and instrumentation techniques that may be used to acquire this information. The paper focuses on geotechnical instrumentation deployed on the side slope lining system at the Milegate Extension Landfill, UK. The instrumented lining system comprises 1.0 m of compacted clay, a 2 mm double textured high density polyethylene geomembrane, a nonwoven geotextile and a sand cover soil layer. Instrument selection and problems associated with acquiring consistent, reliable and valuable data in a field environment are discussed, as are the challenges and problems that occur when preparing a full scale experiment. Sources of uncertainties within readings are highlighted. Additionally, initial results collected during sand veneer layer placement on the slope are presented. These demonstrate acceptable instrument performance over a 2 year period. Measured behaviour highlights the significance of geomembrane strains driven by temperature changes, generation of post peak strengths at interfaces during fill placement on the side slope due to relative displacement at interfaces between components, and mechanisms of stress redistribution in the geomembrane that result in time dependent changes in strain under constant load and temperature conditions. © 2012 Elsevier Ltd.


Dixon N.,Loughborough University | Zamara K.,Loughborough University | Zamara K.,Golder Associates | Jones D.R.V.,Golder Associates | Fowmes G.,FCC Environmental
Geotechnical Engineering | Year: 2012

Despite the relative maturity of landfill design practice, world-wide there are still significant numbers of large scale failures of waste bodies, often incorporating the lining system. In addition, there is growing evidence that post waste placement deformations in the lining system are leading to loss of function (i.e. discontinuous drainage layers, loss on protection and leaking liners). Best practice has established that both stability and integrity of the lining system must be assessed during the design process, and specifically that interaction between the waste body and lining system should be considered both in the short-term (i.e. during construction) and long-term (i.e. following waste degradation). The paper introduces available analysis approaches, reviews knowledge of waste behaviour required for such analyses and provides guidance on the mechanisms to consider. The need for field monitoring to validate numerical models is established as is the need for extensive measurements of waste mechanics properties linked to a standard classification system to aid comparison and use. The benefits of using probability of failure analysis to incorporate material and test variability in design are highlighted.


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