Since 1999, Crystal Clean has been growing its presence as one of the leading environmental services providers in the USA and Ontario, CAN. What started as several service branches in about a dozen cities has grown into a nationwide network of more than 90 service branches, an oil re-refinery, and multiple waste recovery centers.

Travel down south to Shreveport, LA and you’ll find one of Crystal Clean’s many service branches. It’s filled with hard working people that have been there for years, faithfully serving customers. One of those people is Eddie Slagle, who has been a Sales and Service Representative (SSR) at the branch for the past 16 years.

Eddie found his way to Crystal Clean through a simple recommendation from one of his friends that was working as an oil sales and service representative. This led to a conversation with the branch manager, Shane White, and a few days later Eddie was on a box truck in the Crystal Clean uniform.

“Shane and I hit it off immediately,” Eddie said. “I had experience being a route driver from another job, so I was really able to hit the ground running. I took a bit of time to learn the industry and our services, then I was out on the road knocking on doors and finding new customers.”

These initial years at Crystal Clean were fast paced for Eddie. While there was some learning on the job, he looked at it as an opportunity to never say anyone’s no for them. He was always asking questions to understand the different ways Crystal Clean could offer services to solve any challenges customers faced. He also felt like he had a great support system with a branch manager that is always willing to jump in to help.

“I couldn’t ask for a better boss than Shane,” shared Eddie. “You can tell that he’s in your corner and wants to help you do your job well. If he sees you having a bad day, he’ll get on the truck with you to help you out. That mindset of always being willing to help is something everyone at our branch has, and it’s made us a tight-knit bunch.

As time went on, Eddie kept on doing what he does best. He was out on the road selling and providing great service to customers each day. Each night, he took time to plan ahead while looking at his route for the next day so that he knows where he was going in the morning when he hopped on his truck. Eddie also mentioned that he was always honest and straightforward with customers to make sure they understood how the different services work while offering any help when needed.

This approach clearly paid off for Eddie, because over the years he has consistently received new customers through word-of-mouth and recommendations from his customer base. By being friendly, fair, and focusing on service, he kept on winning happy customers. And as his customer base grew, Eddie saw a great deal of success year after year. He’s consistently been one of the top SSRs in the company and has been a part of Crystal Club a total of 14 times!

“Eddie has consistently done a great job year after year,” Shane White, Shreveport Branch Manager said. “He’s a determined sales rep who always says yes when someone asks for helps. He’s gone out to other branches to provide support for several weeks when needed, like when there was a bad flood in Baton Rouge and the branch there needed a bit of extra support. He’s even traveled around to help launch several new branches throughout the states.”

That mentality of being a helper has been something that keeps Eddie going each day. He’s always ready to provide support when needed, and one of his goals is to go home safe each day. Doing the job well and safely is another way that he continues to win over customers. That’s also led to stronger relationships with his customers where they genuinely are excited to see Eddie come in to provide service.

“In our industry, we compete on so many levels to win our customers,” Eddie shared. “In all my time at Crystal Clean, I’ve learned that the best way we beat the competition is through our people and our service. Offering great service and being there for your customer when they need you makes all the difference.”

Hoffman Estates, IL May 9, 2023 — Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), a leading provider of parts cleaning, hazardous and non-hazardous waste services, used oil re-refining, antifreeze recycling, industrial and field services, and emergency and spill response services today announced results for the first quarter which ended March 31, 2023.

To view the financial results for the 2023 first quarter, please visit our financial releases page.

The company will host a conference call on Wednesday, May 10, 2023 at 9:00 AM Central Time, during which management will give a presentation focusing on the Company’s operations and financial results.

Interested parties can listen to the audio webcast available through our company website, https://www.crystal-clean.com/investor-relations/, and can participate on the call by dialing (888) 440-4149. After dialing the number, you will be required to provide the following passcode before being joined to the conference call: 8889427. To register for the webcast of the conference call, visit https://events.q4inc.com/attendee/667310180

First Quarter Review

Beginning with our 2023 fiscal year, we changed our financial reporting cycle to a calendar year-end and end-of-month quarterly reporting cycle. The first quarter of 2023 includes 4 additional working days as a result of our fiscal quarter change. We estimate that the additional working days resulted in an increase in revenues of 6.3% in the first quarter of 2023 when compared to the first quarter of 2022.

Revenue for the first quarter of 2023 was $193.5 million compared to $139.4 million for the same quarter of 2022, an increase of 38.8%.

Overall Operating Margin increased by $11.6 million and decreased slightly on a percentage of revenue basis to 22.9% compared to 23.4% during the first quarter of 2022. This decrease was driven primarily by the decrease in revenues in the Oil Business segment. Our first quarter corporate SG&A expense was $20.7 million, or 10.7% of revenue, compared to $15.3 million, or 11.0% of revenue, for the first quarter of 2022. Net income for the first quarter was $16.6 million compared to net income of $12.9 million in the year-ago quarter. Basic earnings per share were $0.70 compared to $0.55 in the year-ago quarter.

The complete financial results for the 2023 first quarter can be found on our financial releases page.

Crystal Clean is a fast-growing company and this is because of each employee’s commitment to service, excellence, and the environment every day. The Crystal Clean team has the grit and drive to meet the needs of all customers, and Patrick Lacy is the perfect example of what we’re all about at Crystal Clean.

Patrick is an Antifreeze Sales and Service Representative (AFSR) at Crystal Clean’s Tulsa branch, and he has been with the company since 2019. In just a few years, Patrick has grown the Tulsa antifreeze program into one of the largest antifreeze programs in the company. With more than 2,000 service stops performed in 2022, it’s no surprise that he is coming off his best year yet.

Patrick broke revenue records as the top AFSR in 2022, and he’s showing no signs of slowing down for 2023! When asked about what has helped him reach this goal and grow his customer base, he shared that it ultimately comes down to excellence in customer service.

“I always tell my customers that whatever they need, I’ll get it there,” said Patrick. “Whether it’s antifreeze or another one of our services, I do my best to find the right solution that meets their needs or find someone that will be able to help. When you go above and beyond for your customer they notice and become even more committed to working with you in the future. You become their go-to person to call when they need help.”

This mindset of excellence has led to Patrick receiving plenty of referrals from customers to new businesses that has helped him grow the antifreeze program significantly since he started at Crystal Clean. Managing time well is another area that has helped Patrick juggle scheduled service stops with stops at additional businesses to go win new customers. Each night he reviews his list of stops for the next day to plan out his route. When he’s with customers, he strikes the perfect balance of building relationships while still moving to make sure he stops everywhere he plans to that day.

Patrick is also very passionate about putting safety first and lives out Crystal Clean’s mindset to “Own Your Safety” each day on the job. Before his time at Crystal Clean, Patrick spent many years in the oil industry doing pipeline maintenance. Doing jobs safely and being proactive to prevent accidents is part of his daily routine.

“Even the little details about safety are important,” Patrick shared. “I take time to inspect my truck during the day at different stops to catch possible problems before they become an actual problem.”

When you’re at the Tulsa branch, you can see Patrick having conversations with his co-workers about safety on the job and sharing leads for other lines of business. The teamwork between everyone is something that Tulsa Branch Manager Gregory Else is particularly proud of, and he sees Patrick as a big piece of this.

“Patrick has been an amazing person to have at the branch,” Gregory shared. “Since he joined the branch in 2019, I’ve seen him do so much amazing work and continually exceed expectations each day that fires up everyone here. He’s a passionate, easy-going guy who has helped grow both his business and the business of other reps here.”

The teamwork goes both ways, and Patrick has felt supported by his team and management whenever he needs help. He also recalled conversations he’s had with the company’s leadership team and shared how hearing their passion for what Crystal Clean does got him fired up and fully engaged working for the company. That passion and teamwork is everywhere throughout the company and Patrick has plenty of stories of it in action.

There was one time where the antifreeze truck I was driving had mechanical issues and needed to go into the shop,” he shared. “I could’ve lost multiple days of work without a truck, but I got a call from my manager and he had a plan to keep me on the road. He went out of his way overnight to drive an antifreeze truck from another branch to Tulsa, just so I wouldn’t have too many days of downtime while my truck was in the shop.”

Experiences like these are what Patrick looks forward to, and he’s excited for what’s ahead at Crystal Clean. As the company continues to grow, he sees plenty of opportunities for growth in the future for himself and anyone who joins the company. “Crystal Clean gives people the tools to succeed and there’s plenty of opportunities for growth. We’ve got the right people to help with any questions a new employee has, and everybody is willing to pitch in when you need help. People see the potential you have and put in the work to help you succeed. I feel like I’m one of the luckiest guys I know and am proud to be part of the Crystal Clean team.”

Hoffman Estates, IL March 1, 2023 — Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), a leading provider of parts cleaning, hazardous and non-hazardous waste services, used oil re-refining, antifreeze recycling, industrial and field services, and emergency and spill response services today announced results for the fourth quarter of fiscal 2022 and for the full fiscal year, which ended December 31, 2022.

To view the financial results for the 2022 fourth quarter and 2022 fiscal year, please visit our financial releases page.

The Company will host a conference call on Thursday, March 2, 2023, at 9:30 AM Central Time, during which management will give 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, https://www.crystal-clean.com/investor-relations/, and can participate on the call by dialing (888) 440-4149. After dialing the number, you will be required to provide the following passcode before being joined to the conference call: 8889427.

To register for the webcast of the conference call, visit https://events.q4inc.com/attendee/245611812

Fourth Quarter Review

Total revenue for the fourth quarter of 2022 increased 42.2% to $241.1 million compared to $169.5 million for the same quarter of 2021. The Company’s fourth quarter of fiscal 2022 was comprised of 77 working days compared to 76 working days in the fiscal fourth quarter of 2021. On a sales-per-working day basis, revenue increased approximately 40.4% compared to the prior year quarter. The increase in revenue was due to improvement in base oil pricing in our Oil Business segment along with increased demand and higher selling prices for our Environmental Services segment products and services as well as by revenue from an acquisition made during the third quarter of 2022.

Our operating margin percentage decreased to 22.8% in the fourth quarter of 2022 compared to 26.6% in the fourth quarter of 2021. The decrease was mainly due to increased costs for solvent, disposal costs, depreciation expense, fuel cost, and equipment rental, partially offset by an increase in the spread between the netback (sales price net of freight impact) on our base oil sales and the price paid/charged to our customers for the collection of their used oil. Our corporate SG&A expense as a percentage of revenue decreased slightly to 11.9% from 12.1% of revenue in the fourth quarter of 2021 mainly due to higher revenue and lower share-based compensation expense.

Net income was $27.6 million, or $1.16 per diluted share, for the fourth quarter of 2022. This compares to net income of $18.1 million, or $0.77 per diluted share, in the year earlier quarter. Adjusted net income for the quarter was $18.8 million. The most significant adjustment to net earnings was subtracting a $12.2 million gain from the revaluation of one of our investments.

Fiscal 2022 Review

In 2022, we generated $709.3 million in revenue compared to prior year revenue of $515.3 million, an increase of $194.0 million, or 37.6%. The Company’s 2022 fiscal year was comprised of 254 working days compared to 253 working days in fiscal 2021. On a sales-per-working day basis, revenue increased approximately 37.1% in fiscal 2022 compared to the prior year. This increase in revenue was due to the increase in base oil pricing in our Oil Business segment and the continued reopening of the U.S. economy from the COVID-19 pandemic as well as  inorganic growth in the Environmental Services segment.

Our operating margin percentage for 2022 was 26.2% compared to 28.0% operating margin in fiscal 2021. The decrease was mainly due to increased costs for solvent, disposal costs, depreciation expense, fuel costs, equipment rental, and hydrogen expense, partially offset by an increase in the spread between the netback on our base oil sales and the price paid/charged to our customers for the removal of their used oil. Corporate SG&A expense for fiscal 2022 was 11.2% of revenue, compared to 12.1% of revenue in fiscal 2021.

Net income for fiscal 2022 was $84.8 million, or $3.58 per diluted share, compared to net income of $60.9 million, or $2.59 per diluted share, for fiscal 2021. Adjusted net income for the year was $78.8 million.

Segments

Our Environmental Services segment includes parts cleaning, hazardous and non-hazardous waste disposal, wastewater vacuum, antifreeze recycling, industrial and field services, and emergency and spill response. The Environmental Services segment reported revenue of $165.8 million, an increase of $62.2 million, or 60.0%, during the fourth quarter of fiscal 2022 compared to the fourth quarter of fiscal 2021. The increase in revenue was mainly due to the continued reopening of the U.S. economy post the COVID-19 pandemic as well as revenue from an acquisition made during the third quarter of fiscal 2022. We experienced revenue increases across a majority of our service lines in the segment during the fourth quarter of fiscal 2022 when compared to the fourth quarter of 2021. On a sales-per-working day basis, Environmental Services segment revenue increased approximately 57.9% compared to the prior year quarter.

Profit before corporate SG&A expense in the Environmental Services segment during the fourth quarter was $35.1 million and as a percentage of revenue was 21.2% compared to 22.0% in the year ago quarter. The decline in margin on a percentage basis was mainly due to higher fuel costs, solvent expenses, and equipment rental expense.

During fiscal 2022, Environmental Services segment revenue increased $130.9 million, or 41.1%, compared to fiscal 2021, while our 2022 profit before corporate SG&A expense as a percentage of revenue was 20.9% compared to 23.6% in fiscal 2021.

President and CEO Brian Recatto commented, “Due to the inflationary pressure we continue to face in various parts of our Environmental Services segment, we implemented another price increase in December of 2022. Implementation of this increase should help improve our operating margin during 2023.”

Our Oil Business segment includes used oil collection activities, sales of recycled fuel oil, and re-refining activities. During the fourth quarter of fiscal 2022, Oil Business revenues increased 14.3% to $75.3 million compared to the fourth quarter of fiscal 2021. An increase in our base oil netback was the main driver of the increase in revenue. On a sales-per-working day basis, our Oil Business segment revenue increased approximately 12.9% compared to the prior year quarter.

Our Oil Business segment operating margin percentage decreased to 26.4% in the fourth quarter of 2022 compared to 33.7% during the same period of 2021. The decrease in operating margin was mainly due to increased costs related to transportation and hydrogen partially offset by an increase in the spread between the netback on our base oil sales and the price paid/charged to our customers for the removal of their used oil.

Full year 2022 Oil Business segment revenue increased by 32.0% compared to fiscal 2021, while operating margin also slightly increased to 35.3% compared to 35.2% in fiscal 2021.

Recatto commented, “Despite the significant decline in base oil netback compared to the third quarter, base oil netback during the fourth quarter remained above our netback for the fourth quarter of 2021. The higher netback allowed us to increase our spread on a year-over-year basis and generate better than expected operating margin during the quarter. For the year, we are very pleased with the record annual revenue and profitability in the Oil Business segment.”

The complete 2022 fourth quarter and 2022 fiscal year results can be found on our financial releases page.

Hoffman Estates, IL., February 15, 2023 — Heritage-Crystal Clean, Inc. (Nasdaq:HCCI) plans to release its financial results for the fourth quarter of 2022 and for the full fiscal year, which ended December 31, 2022, after the market close on Wednesday, March 1, 2023.

The company will host a conference call on Thursday, March 2, 2023 at 9:30 AM Central Time, during which management will give a presentation focusing on the Company’s operations and financial results.

Interested parties can listen to the audio webcast available through our company website, https://crystal-clean.com/investor-relations/, and can participate on the call by dialing (888) 440-4149. After dialing the number, you will be required to provide the following passcode before being joined to the conference call: 8889427.

To register for the webcast of the conference call, visit https://events.q4inc.com/attendee/245611812

This collaboration brings an end-to-end solution to separate, concentrate, transport, and annihilate PFAS contamination from landfill and industrial waste management sites .

Hoffman Estates, IL, January 31, 2023 – Heritage-Crystal Clean Inc. (Nasdaq: HCCI), through its wholly-owned subsidiary, a leading provider of environmental and industrial services, today announces a new partnership with Allonnia, Revive Environmental, and EPOC Enviro to launch 4never™, the first closed-loop PFAS remediation solution, to the landfill and industrial waste management markets.

PFAS, or per- and polyfluoroalkyl substances, is a group of chemicals known as “forever chemicals” that have been used in a wide range of consumer and industrial products. Research has shown that they have become pervasive in the environment and pose a health risk when accumulated in the body, creating a need to safely destroy these contaminants while leaving no harmful byproducts.

4never™ unites the PFAS remediation steps of separation, concentration, transportation, and destruction to provide an effective and environmentally responsible solution for landfill operators and the industrial market.

4never™ combines the power of Surface Active Foam Fractionation (SAFF®) technology, exclusively distributed by Allonnia in North America and manufactured by EPOC Enviro, with Revive Environmental’s PFAS Annihilator™ to provide a complete PFAS elimination process.

Heritage-Crystal Clean (“Crystal Clean”) is the exclusive distributor and operator of the 4never™ solution to the private landfill and industrial waste treatment markets, serving clients through its nationwide network of branches and waste treatment facilities.

“Our joint vision begins with protecting the Earth’s resources. Providing a solution which addresses a problem as pervasive as PFAS is a powerful execution of this vision,” said Crystal Clean’s President & CEO, Brian Recatto. “The 4never™ solution offers landfill operators and manufacturers a cost effective and compliant approach to managing PFAS contaminated leachate and wastewaters.”

“Allonnia is proud to work with Crystal Clean and our technology partners, combining SAFF® and PFAS Annihilator™, to create a solution for the North American market that permanently destroys what has been labeled a forever chemical,” said CEO of Allonnia, Nicole Richards. “It is impressive how the landfill market has embraced the PFAS removal challenge, and it’s been incredible to work with other innovators passionate about solving our most challenging environmental problems.” 

4never™ helps landfill operators and manufacturers improve their sustainability footprint by removing and destroying PFAS prior to discharge to their local municipal wastewater treatment systems. 

The hub-and-spoke model begins with a SAFF® unit at the generating source. Crystal Clean will provide, operate, and service the SAFF® unit, which separates and concentrates PFAS contaminants from waste streams. Crystal Clean will then transport the separated PFAS hyper-concentrate to one of its wastewater treatment facilities, where Revive Environmental’s PFAS Annihilator™ unit will destroy the PFAS.

“Revive Environmental is excited to bring its patented, enabling technology to this partnership,” said Revive Environmental President and CEO David Trueba. “The PFAS Annihilator™ is the culmination of years of development and the leading way to completely destroy PFAS with the confidence that can only be realized through world-class scientific research.”

Crystal Clean will also implement the SAFF® technology at its own commercial wastewater treatment facilities to further concentrate other PFAS contaminated waste streams prior to destruction using the PFAS Annihilator™. 4never™, the first of its kind, full-scale, closed-loop PFAS treatment solution will be offered by the consortium as a service, where customers will pay a fixed cost per gallon.  

More information about the 4never™ solution can be found at www.4never.com.

About Heritage-Crystal Clean 

Heritage-Crystal Clean, Inc., through its wholly-owned subsidiary, provides environmental and industrial services to vehicle maintenance businesses, manufacturers and other industrial businesses, as well as utilities and governmental entities. Their service programs include parts cleaning, regulated containerized and bulk waste management, used oil collection and re-refining, wastewater vacuum, emergency and spill response, industrial and field services, and waste antifreeze collection, recycling and product sales. These services help customers manage their used chemicals and liquid and solid wastes, while also helping to minimize their regulatory burdens. For more information about Heritage-Crystal Clean, visit www.crystal-clean.com.  

About Allonnia 
Allonnia is a bio-ingenuity company dedicated to extracting value where others see waste. They believe elegant solutions to the world’s biggest problems will be found in the world’s smallest organisms. Allonnia is pioneering novel approaches and imaginative combinations in biotechnology and engineering to solve waste challenges in nature, using nature. To learn more visit allonnia.com.  

About Revive Environmental

Revive Environmental is a full-service environmental contaminant mitigation company on a mission to destroy PFAS using ready-now, advanced technology. Revive Environmental’s mission is to rid America of water contaminated by PFAS. By rapidly scaling and deploying technology, that mission can be accomplished by isolating, removing and destroying PFAS chemicals in landfill leachate, municipal wastewater, AFFF firefighting foam and groundwater. Using the exclusive, patented PFAS Annihilator^TM and GAC Renew^TM technologies, Revive Environmental for customers around the United States. For more information, visit revive-environmental.com.

About EPOC Enviro 
EPOC Enviro is an environmental engineering firm, dedicated to developing and implementing clever and practical engineering solutions on a global scale to permanently remove PFAS and other emerging contaminants from the environment. Their award winning SAFF® technology proudly applies the principles of intelligent design, sustainable engineering and green chemistry. To learn more visit epocenviro.com. 

Media Inquiries:

Heritage-Crystal Clean

Mike Ademe

Communications & Marketing Manager

mike.ademe@crystal-clean.com 224-281-1530

Heritage-Crystal Clean, Inc. (Nasdaq:HCCI) announced that Mark DeVita, CFO, EVP, will present at the 25^th Annual Needham Growth Conference on Wednesday January 11, 2023. Heritage-Crystal Clean’s presentation is scheduled to begin at 12:45 PM EST.

The presentation will be webcast live and may be accessed at the following link, https://wsw.com/webcast/needham128/hcci/2212811 or in the investor relations section of the company’s website: https://www.crystal-clean.com/investor-relations/.

What do you like about your job? Is it the kind of work you do, the people you interact with each day, the sense of success from doing your job well, or something else? It can be a combination of many things, and for Cecilio Martinez it ultimately comes down to the relationships he builds and the sense of ownership he has for his success and meeting the needs of his customers.

Cecilio Martinez is an Oil Sales and Service Representative (OSSR) based out of our Crystal Clean’s Newark, NJ branch. He’s been with Crystal Clean for 8 years and has more than 15 years of experience in the industry, so he knows a thing or two about meeting the needs of his customers. When he started in the industry, he was originally a route driver and eventually became a sales and service representative at Crystal Clean and felt like he had found that perfect job for him.

“I love being out on the road and meeting new people each day,” said Cecilio. “I found the sweet spot of what I like to do. Out on the road, you’re the one that’s responsible for if you have a successful day or not. I’m out there making calls and I feel that sense of responsibility for how I represent myself and the company.”

When asked how he approaches working with customers, Cecilio shared that it’s all about personality and keeping an upbeat attitude. Relationships are key to having success in any sales role and Cecilio makes it a priority to always pick up the phone when a customer calls. He says communication is key to having a happy customer and meeting their needs, especially in an emergency.

“The oil industry is a bit unique with how important your scheduling is while also still having some flexibility in your day,” he said. “You can have your scheduled pickups for the day and get a call-in from one of your customers that needs their used oil collected early than they thought. That’s usually when they have barely any oil storage left, so the first person that can service them is usually who gets the job. You have to be there at the right time to help them out, and if you help them in a pinch you become their go-to person when they need help.”

Finding that right balance between scheduling and flexibility that week is a team effort, and that’s why the Newark Branch starts off each week with a team huddle to go over the schedule for everyone so everyone is on the same page and can be as productive as possible.

“Teamwork is important at our branch and I’m truly proud of how everyone has a team mentality,” shared Newark Branch Manager Brian Sullivan. “Everyone is willing to jump in and help at any moment if someone is out on vacation or needs some extra support on a busier day. All of us communicating back and forth helps both our branch and ourselves individually do great work week in and week out.”

Cecilio shared that being an OSSR is hard work, and it takes the right kind of mindset to be successful in the role. The results speak for themselves, with Cecilio being a six-time Crystal Club attendee with the best of the best in the company. Two of Crystal Clean’s core values, relationships and safety, are key to what he shared has helped him experience so much success in his role.  

“Building relationships with your customers is huge, and I know my customers are depending on me to help them out and get the job done,” he shared. “Still, for me safety is the number one priority each day. The minute you step into your truck, safety becomes the top priority. It’s always important to look at a service job first and analyze the situation to figure out the best approach to get the truck in and figure out the best plan to get the job done.”

Looking forward to the future, Cecilio plans to keep on doing good work each day and continue growing the oil program at his branch. He’s proud of what he has accomplished so far and sees plenty of opportunity to grow the oil business on the east coast. He’s excited for the team at his branch to grow in the upcoming years and has advice for any new employees starting their career in the industry.

“The people I work with are what make the difference for me, and I want to see everyone at our branch succeed,” Cecilio said. “Sales can be a tough job, but don’t get discouraged if someone turns you away. If you knock on 10 doors, one of them is going to give. It takes time, but if you’re consistent and have hope, you’ll succeed.”

Hoffman Estates, IL, October 19, 2022 —  Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), a leading provider of parts cleaning, used oil re-refining, hazardous and non-hazardous waste disposal, emergency and spill response, and industrial and field services, today announced results for the third quarter which ended September 10, 2022.

To view the financial results for the third quarter, please visit our financial releases page.

The company will host a conference call on Thursday, October 20, 2022 at 9:30 AM Central Time, during which management will give a presentation focusing on the Company’s operations and financial results.

Interested parties can listen to the audio webcast available through our company website, https://crystal-clean.com/investor-relations/, and can participate on the call by dialing (888) 440-4149. After dialing the number, you will be required to provide the following passcode before being joined to the conference call: 8889427.

To register for the webcast of the conference call, visit https://events.q4inc.com/attendee/147949375

Third Quarter Review

Revenue for the third quarter of 2022 was $172.2 million compared to $123.2 million for the same quarter of 2021, an increase of 39.8%.

Overall operating margin during the quarter increased by $12.3 million or 31.6%, driven by growth in our Environmental Services segment and both growth and improved profitability in our Oil Business segment, compared to the third quarter of 2021. Our third quarter corporate SG&A expense was $18.6 million, or 10.8% of revenue, compared to $14.4 million, or 11.7% of revenue, for the third quarter of 2021.

Net income for the third quarter was $23.2 million compared to net income of $18.5 million in the year-ago quarter. Basic earnings per share were $0.98 compared $0.79 in the year-ago quarter.

Segments

Our Environmental Services segment includes parts cleaning, hazardous and non-hazardous waste disposal, wastewater vacuum, antifreeze recycling, emergency and spill response, and industrial and field services. Environmental Services revenue was $106.7 million during the quarter compared to $72.3 million during the third quarter of fiscal 2021. The 47.5% increase in revenue was mainly due to the increase in demand for our services compared to the prior year quarter and by revenue from acquisitions. We experienced revenue increases across all service lines in the segment when compared to the third quarter of 2021. The revenue increases were driven by improvement in both price and volume in all service lines. Environmental Services profit before corporate selling, general, and administrative expenses was $24.8 million, or 23.2% of revenue, compared to $17.3 million, or 23.9% of revenue, in the year-ago quarter. The decrease in operating margin percentage was mainly driven by higher transportation costs caused by extraordinarily high inflation and increased equipment rental costs. President and CEO Brian Recatto commented, “While our operating margin percentage was down slightly compared to last year, we are pleased that we were able to improve our operating margin percentage incrementally compared to the second quarter. The improvement was primarily the result of price actions initiated during the latter portion of the second quarter. While we face ongoing inflationary pressure in various parts of our Environmental Services segment, we continue to fight to preserve and improve our operating margin while consistently growing our revenue.”

The full 2022 third quarter results can be found on our financial releases page.

Hoffman Estates, IL., October 5, 2022 — Heritage-Crystal Clean, Inc. (Nasdaq: HCCI) plans to release its financial results for the third quarter of 2022, which ended September 10, 2022, after the market close on Wednesday, October 19, 2022.

The company will host a conference call on Thursday, October 20, 2022 at 9:30 AM Central Time, during which management will give a presentation focusing on the Company’s operations and financial results.

Interested parties can listen to the audio webcast available through our company website, https://crystal-clean.com/investor-relations/, and can participate on the call by dialing (888) 440-4149. After dialing the number, you will be required to provide the following passcode before being joined to the conference call: 8889427.

To register for the webcast of the conference call, visit https://events.q4inc.com/attendee/147949375

About Heritage-Crystal Clean, Inc.

Heritage-Crystal Clean, Inc. provides parts cleaning, used oil re-refining, hazardous and non-hazardous waste disposal, emergency and spill response, and industrial and field services to vehicle maintenance businesses, manufacturers and other industrial businesses, as well as utilities and governmental entities. Our service programs include parts cleaning, regulated containerized and bulk waste management, used oil collection and re-refining, wastewater vacuum, emergency and spill response, industrial and field services, waste antifreeze collection, recycling and product sales. These services help our customers manage their used chemicals and liquid and solid wastes, while also helping to minimize their regulatory burdens. Through our used oil re-refining program, during fiscal 2021, we recycled approximately 66 million gallons of used oil into high quality lubricating base oil, and we are a supplier to firms that produce and market finished lubricants. Through our antifreeze program during fiscal 2021 we recycled approximately 3.9 million gallons of spent antifreeze which was used to produce a full line of virgin-quality antifreeze products. Through our parts cleaning program during fiscal 2021 we recycled 2 million gallons of used solvent into virgin-quality solvent to be used again by our customers. In addition, we sold 0.5 million gallons of used solvent into the reuse market. Through our containerized waste program during fiscal 2021 we collected 21 thousand tons of regulated waste which was sent for energy recovery. Through our wastewater vacuum services program during fiscal 2021 we treated approximately 49 million gallons of wastewater. Heritage-Crystal Clean, Inc. is headquartered in Hoffman Estates, Illinois, and operates through 105 branch and industrial services locations serving approximately 103,000 customer locations.

Contact:

Heritage-Crystal Clean, Inc.
Mark DeVita, Chief Financial Officer
(847) 836-5670
https://www.crystal-clean.com