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Heckmann Corporation (NYSE: HEK) today announced the following financial results for the first quarter ended March 31, 2012:
Heckmann Water Resources (HWR) revenues tripled to $55.0 million, compared with $18.2 million for the same period in the previous year.
Adjusted EBITDA 2 more than doubled to $10.2 million, compared with $4.1 million for both the first quarter of 2011 and the fourth quarter of 2011.
On a pro-forma basis, which includes the effect of Heckmann Environmental Services (HES – formerly Thermo Fluids Inc., or TFI) 3, revenues were $82.4 million and adjusted EBITDA was $16.2 million.
“We had a strong start to the year, reporting our sixth consecutive quarter of record revenues and our adjusted EBITDA more than doubled for both the same quarter a year ago and our previous quarter,” said Mr. Richard J. Heckmann, Chairman and Chief Executive Officer of Heckmann Corporation. “We exceeded our quarterly guidance and all of the expansion in our water business is a result of new contracts or customers, primarily in the liquid-rich shale areas. Our two business segments are well positioned for future growth with good momentum. Historically, both segments are seasonally slowest in the first quarter, and we expect the second quarter revenues to increase over first quarter 2012 pro-forma results by more than 15%.
“We remain confident in our ability to achieve our financial and strategic goals for the year. Our water solutions segment has grown over the past 12 months from operations exclusively in the Haynesville Shale area to now include operations in seven additional oil, liquid-rich and natural gas shale areas in seven states and continues to grow significantly serving the domestic U.S. energy industry. It is important to remember that our water solutions business is less than three years old. The considerable management and asset intensive infrastructure necessary to produce what we believe will be over one quarter of a billion dollars of water-related revenues in 2012 has a significant start-up component to it. Our results in the first quarter were driven by the securing of long-term service contracts with major customers, servicing higher volumes of produced water in the gas basins and proactive repositioning of a number of assets from dry gas basins to oil and liquid-rich basins. We hired 175 truck drivers and numerous water transfer and well testing technicians in the first quarter, and, as they are relocated and trained, our organic growth will continue, and margins will continue to expand. Additionally, we expect to hire over 100 new drivers this quarter to meet the demand for our expanding water solutions segment.