Heritage-Crystal Clean, Inc.

CIK:0001403431|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 18, 2022	Jun. 30, 2023	Jun. 18, 2022
Revenues
Revenues	$ 183,483	$ 150,373	$ 369,275	$ 283,762
Rental income	8,683	6,274	16,372	12,251
Total revenues	192,166	156,647	385,647	296,013
Operating expenses
Operating costs	146,387	104,755	286,448	206,538
Selling, general, and administrative expenses	20,361	15,024	38,061	28,759
Depreciation and amortization	11,802	6,777	23,969	13,285
Other (income) expense - net	(265)	1,001	(734)	791
Operating income	13,881	29,090	37,903	46,640
Interest expense – net	1,929	250	3,743	473
Income before income taxes	11,952	28,840	34,160	46,167
Provision for income taxes	3,310	7,733	8,929	12,182
Net income	$ 8,642	$ 21,107	$ 25,231	$ 33,985
Net income per share: basic (in dollars per share)	$ 0.36	$ 0.90	$ 1.07	$ 1.45
Net income per share: diluted (in dollars per share)	$ 0.36	$ 0.89	$ 1.06	$ 1.44
Number of weighted average shares outstanding: basic (in shares)	23,681	23,489	23,665	23,482
Number of weighted average shares outstanding: diluted (in shares)	23,931	23,644	23,898	23,640
Service revenues
Revenues
Revenues	$ 121,342	$ 75,584	$ 240,794	$ 144,500
Product revenues
Revenues
Revenues	$ 62,141	$ 74,789	$ 128,481	$ 139,262

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 18, 2022	Jun. 30, 2023	Jun. 18, 2022	Dec. 31, 2022
Cash flows from Operating Activities:
Net income	$ 8,642	$ 21,107	$ 25,231	$ 33,985
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,802	6,777	23,969	13,285
Provision for civil action settlement			0	750
Uncollectible provision			1,270	453	$ 2,269
Share-based compensation			2,455	2,785
Deferred taxes			3,610	944
Other, net			(10)	1,099
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable			8,434	(18,207)
(Increase) in inventory			(6,297)	(6,685)
Decrease (increase) in other current assets			(538)	2,345
(Decrease) increase in accounts payable			(3,462)	8,091
(Decrease) increase in accrued liabilities			(7,823)	323
Cash provided by operating activities			46,839	39,168
Cash flows from Investing Activities:
Capital expenditures			(26,899)	(15,936)
Proceeds from sale of assets			1,578	96
Investment in Retriev			0	(3,000)
Cash used in investing activities			(25,321)	(18,840)
Cash flows from Financing Activities:
Credit line utilized			(5,000)	0
Repayment of principal on finance leases			(3,654)	(1,686)
Share repurchases to satisfy tax withholding obligations			(2,135)	(1,402)
Proceeds from the issuance of common stock			318	251
Cash used in financing activities			(10,471)	(2,837)
Net increase in cash and cash equivalents			11,047	17,491
Cash and cash equivalents, beginning of period			22,053	56,269	56,269
Cash and cash equivalents, end of period	$ 33,100	$ 73,760	33,100	73,760	$ 22,053
Supplemental disclosure of cash flow information:
Income taxes paid			9,683	11,796
Cash paid for interest			3,558	140
Supplemental disclosure of non-cash information:
Payables for construction in progress			$ 1,926	$ 874

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 33,100	$ 22,053
Accounts receivable - net	104,704	114,408
Inventory - net	47,024	40,727
Assets held for sale	0	1,125
Other current assets	14,652	12,989
Total current assets	199,480	191,302
Property, plant and equipment - net	232,318	222,942
Right of use assets	126,290	123,742
Equipment at customers - net	30,157	26,465
Software and intangible assets - net	97,091	102,335
Goodwill	112,236	112,236
Other assets	15,219	15,219
Total assets	812,791	794,241
Current liabilities:
Accounts payable	52,602	55,087
Current portion of lease liabilities	28,490	27,277
Contract liabilities - net	3,259	2,525
Accrued salaries, wages, and benefits	9,339	12,443
Taxes payable	3,211	6,037
Other current liabilities	10,553	12,382
Total current liabilities	107,454	115,751
Lease liabilities, net of current portion	103,426	100,738
Other long term liabilities	770	986
Long-term debt - net	84,479	89,383
Deferred income taxes	60,765	57,155
Total liabilities	356,894	364,013
STOCKHOLDERS' EQUITY:
Common stock - 36,000,000 shares authorized at $0.01 par value, 23,687,649 and 23,593,163 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	237	236
Additional paid-in capital	208,913	208,533
Retained earnings	247,057	221,826
Accumulated other comprehensive loss	(310)	(367)
Total stockholders' equity	455,897	430,228
Total liabilities and stockholders' equity	$ 812,791	$ 794,241