Clean Harbors Narrows FY16 Adj. EBITDA Outlook - Quick Facts

(RTTNews) - While reporting its second-quarter financial results, Clean Harbors, Inc. (CLH, CLHB) said it has narrowed its adjusted EBITDA outlook for fiscal 2016. The company also said it plans to divest a subsidiary in its Industrial Services group.

During the second quarter, Clean Harbors worked on completing a series of six acquisitions totaling about $175 million. Three acquisitions have already been finalized, while the company expects the remaining three to close within the next week.

Further, Clean Harbors said it plans to divest a subsidiary in its Industrial Services group. This business, which generated approximately $55 million in revenues in 2015, is not a core line of business in the company's portfolio and was planned for divestiture. The company expects proceeds from the sale in a range of $50 million.

Looking ahead, Clean Harbors forecast third-quarter adjusted EBITDA to be down approximately 20 percent from the year-ago period, reflecting last year's record emergency response activities.

For fiscal 2016, Clean Harbors narrowed its adjusted EBITDA guidance to a range of $430 million to $450 million, from the prior range of $430 million to $490 million.

The company forecasts full-year reported net income in the range of $4 million to $9 million, and adjusted net income, which includes the recognition of the non-cash tax benefits in Canada, in a range of $24 million to $29 million.