Heckmann Corporation Announces Fourth Quarter And Full Year 2012 Financial Results

Heckmann Corporation (NYSE: HEK) today announced financial results for the fourth quarter and year ended December 31, 2012. 1

“2012 was a year of transformation and growth for our Company,” said Richard J. Heckmann Executive Chairman of Heckmann Corporation. “Our merger with Power Fuels has considerably broadened the scope of our business. We increased our revenues by 124% to $352.0 million and our Adjusted EBITDA by 116% to $61.6 million compared to 2011, based on both our M&A activity as well as growth from our legacy businesses. We now have a national Company that is well positioned to build on the significant investment we have made in our logistics network to meet our customers’ demand for comprehensive environmental solutions, including in solid waste.”

The consolidated financial results for 2012 include financial contribution of the month of December for Badlands Power Fuels, LLC (“Power Fuels”) 2 and nine months of Thermo Fluids Inc. (TFI) 3. A presentation reviewing these results is available on the Company’s website at www.heckmanncorp.com. The Company will file its annual report on Form 10-K by March 18, 2013 as required.
      2012 vs. 2011 Comparison       Q4 '12 vs. Q4 '11 Comparison
2012     2011     % Growth Q4 '12     Q4 '11     % Growth
Revenue $ 352.0     $ 156.8     124.4 % $ 113.2     $ 51.7     119.1 %
Net Income (4) $ 2.5 ($0.1 ) -- $ 5.0 ($2.5 ) --
Adj. EBITDA (5) $ 61.6 $ 28.5 115.7 % $

14.7
$ 4.1 255.0 %
 
  • As of December 31, 2012, cash and cash equivalents were $16.2 million, and total debt was $566.1 million, which included $400.0 million of senior unsecured notes, approximately $147.0 million drawn under the Company’s amended credit facility and approximately $20.0 million of capital leases.
  • Total liquidity, consisting of the undrawn portion of the Company’s credit facility and cash on hand, was $193.2 million as of December 31, 2012.
  • Capital expenditures during the fourth quarter, net of cash received for asset sales, were $9.9 million.
  • Results were impacted by a number of one-time and non-recurring items, relating in part to the Power Fuels merger, integration and associated financings.

Comments on the Fourth Quarter & Full Year 2012 Results

Mr. Heckmann continued, “As expected, the industry related to our shale business slowed in the second half of 2012, particularly during the fourth quarter. Activity declines exceeded normal seasonal factors, which we believe was a function of drilling efficiencies pulling our customers’ capital expenditures forward in the year. Working closely with our customers, we planned for this pullback and reduced our capital expenditures, which totaled $11.8 million for the second half of the year, and in turn were able to grow our cash position in both the third and fourth quarters.”

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