Company: CLH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000822818-25-000019
Chunk: 95

Company: CLEAN HARBORS INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 helpful, and believe that investors have found it helpful, to consider an operating measure that excludes certain expenses relating to transactions not reflective of our core operations. 

The information about our operating performance provided by Adjusted EBITDA is used by our management for a variety of purposes. We regularly communicate Adjusted EBITDA results to our lenders since our loan covenants are based upon levels of Adjusted EBITDA achieved and to our board of directors and we discuss with the board our interpretation of such results. We also compare our Adjusted EBITDA performance against internal targets as a key factor in determining cash and equity bonus compensation for executives and other employees, largely because we believe that this measure is indicative of how the fundamental business is performing and being managed.

We also provide information relating to our Adjusted EBITDA so that analysts, investors and other interested persons have the same data that we use to assess our core operating performance. We believe that Adjusted EBITDA should be viewed only as a supplement to the GAAP financial information. We also believe, however, that providing this information in addition to, and together with, GAAP financial information provides a better understanding of our core operating performance and how management evaluates and measures our performance.

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The following is a reconciliation of net income to Adjusted EBITDA for the following periods:

Three Months Ended March 31,(in thousands, except percentages)20252024Net income$58,680 $69,832 Accretion of environmental liabilities3,620 3,217 Stock-based compensation7,635 6,338 Depreciation and amortization111,980 95,065 Other expense, net932 1,141 Interest expense, net of interest income36,077 28,539 Provision for income taxes15,930 25,963 Adjusted EBITDA$234,854 $230,095 As a % of Direct revenues16.4 %16.7 %

Stock-based CompensationThree Months EndedMarch 31,2025 over 2024(in thousands, except percentages)20252024Change% ChangeStock-based compensation$7,635 $6,338 $1,297 20.5 %

Stock-based compensation for the three months ended March 31, 2025 increased $1.3 million from the comparable period in 2024. This increase was driven by higher achievement of performance share metrics in 2024 and incremental expense related to the Employee Stock Purchase Plan