Company: CLH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000822818-25-000019
Chunk: 53

Company: CLEAN HARBORS INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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065 $16,915 17.8 %

Depreciation and amortization for the three months ended March 31, 2025 increased by $16.9 million from the comparable period in 2024 due to the depreciation of fixed assets and amortization of intangible assets acquired from the March 2024 HEPACO and Noble acquisitions, depreciation for the Kimball incinerator which was placed in service in December 2024 and incremental finance lease amortization.

Interest Expense, Net of Interest Income

Three Months EndedMarch 31,2025 over 2024(in thousands, except percentages)20252024Change% ChangeInterest expense, net of interest income$36,077 $28,539 $7,538 26.4 %

Interest expense, net of interest income for the three months ended March 31, 2025 increased $7.5 million from the comparable period in 2024 primarily due to higher levels of outstanding debt during the period. Interest expense was partially offset by a $2.1 million increase in interest income in the three months ended March 31, 2025 compared to the same period in 2024. 

As of March 31, 2025, the effective interest rate on our debt was 5.3%. For the remainder of 2025, we expect interest expense to remain relatively consistent with the prior year. For additional information regarding our current portfolio of long-term debt, see Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements. 

26

Provision for Income Taxes

Three Months EndedMarch 31,2025 over 2024(in thousands, except percentages)20252024Change% ChangeProvision for income taxes$15,930$25,963$(10,033)(38.6)%Effective tax rate21.4 %27.1 %(5.7)%

For the three months ended March 31, 2025, the provision for income taxes decreased $10.0 million as a result of lower pre-tax income compared to the same period in 2024. The reduction in our effective tax rate was driven by the write-off of a deferred tax asset with a full valuation allowance associated with the remedial liability change in estimate discussed above.

Liquidity and Capital Resources 

We assess our liquidity in terms of our ability to generate cash to fund our operating, investing, and financing activities. Our primary ongoing cash requirements will be to