Waste Management IPO: Heritage-Crystal Clean

Heritage-Crystal Clean (HCCI) provides hazardous and industrial waste services to small/mid-sized companies.

All quotations are from the company’s most recent S-1 filing with links provided.

Business Overview (from prospectus):

We are a leading provider of industrial and hazardous waste services to small and mid-sized customers who are engaged in vehicle maintenance or manufacturing activities. We offer a broad range of services desired by these customers including parts cleaning solvent management, and the removal and management of a variety of regulated wastes. We operate from a network of 54 branch facilities providing service to customers in 38 states.

Offering: 1.74 million shares at $10.50 - $12.50 per share. Net proceeds of approximately $16 million will be used to repay indebtedness

Lead Underwriters: William Blair; Piper Jaffray

Financial Highlights:

Gross profit for year ending Dec. 30, 2006, $36.837 million;, year ending Dec. 29, 2007, $64.632 million. Net income for year ending Dec. 30, 2006, $2.596 million; year ending Dec. 29, 2007, $5.377 million.
EBIDTA for year ending Dec. 30, 2006, $8.055 million; year ending Dec. 29, 2007, $11.350 million

Competitors:

The markets for parts cleaning, containerized waste management, used oil collection, and vacuum truck services are intensely competitive. While numerous small companies provide these services, Safety-Kleen, our largest competitor, has held substantial market share in the parts cleaning industry for the last three decades and has developed a significant market share in used oil services and containerized waste management. Safety-Kleen and some of our other competitors have substantially greater financial and other resources and greater name recognition than us. Our business growth, financial performance and prospects will be adversely affected if we cannot gain market share from these competitors, or if any of our competitors develop products or services superior to those offered by us. We could lose a significant number of customers if Safety-Kleen, or other competitors, materially lower their prices, improve service quality or develop more competitive product and service offerings.

Additional Resources:

• Company website
• Online road show
• DealBook: 'Heritage-Crystal Details I.P.O. Terms'
• 24/7 Wall St.: 'IPO Filing: Heritage-Crystal Clean, Inc. (HCCI)'