GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION

As of March 31, 2012, the Company had outstanding $520.0 million aggregate principal amount of 7.625% senior secured notes due 2016 issued by the parent company, Clean Harbors, Inc. The parent’s senior secured notes outstanding are guaranteed by substantially all of the parent’s subsidiaries organized in the United States. Each guarantor is a wholly-owned subsidiary of the Company and its guarantee is both full and unconditional and joint and several. The parent’s notes are not guaranteed by the Company’s Canadian or other foreign subsidiaries. The following presents supplemental condensed consolidating financial information for the parent company, the guarantor subsidiaries and the non-guarantor subsidiaries, respectively.

Following is the condensed consolidating balance sheet at March 31, 2012 (in thousands):



	Clean Harbors, Inc.		U.S. Guarantor Subsidiaries		Foreign Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets:
Cash and cash equivalents	$	85,524	$	118,456	$	37,547	$	—		$	241,527
Intercompany receivables	321,849		—		104,050		(425,899		)	—
Other current assets	36,339		313,765		290,254		—			640,358
Property, plant and equipment, net	—		400,336		518,348		—			918,684
Investments in subsidiaries	1,117,420		453,810		91,754		(1,662,984		)	—
Intercompany debt receivable	—		481,838		3,701		(485,539		)	—
Other long-term assets	12,766		111,200		168,360		—			292,326
Total assets	$	1,573,898	$	1,879,405	$	1,214,014	$	(2,574,422	)	$	2,092,895
Liabilities and Stockholders’ Equity:
Current liabilities	$	6,014	$	206,381	$	129,832	$	—		$	342,227
Intercompany payables	—		425,899		—		(425,899		)	—
Closure, post-closure and remedial liabilities, net	—		128,953		21,492		—			150,445
Long-term obligations	523,833		—		—		—			523,833
Capital lease obligations, net	—		416		4,990		—			5,406
Intercompany debt payable	3,701		—		481,838		(485,539		)	—
Other long-term liabilities	89,072		7,592		23,042		—			119,706
Total liabilities	622,620		769,241		661,194		(911,438		)	1,141,617
Stockholders’ equity	951,278		1,110,164		552,820		(1,662,984		)	951,278
Total liabilities and stockholders’ equity	$	1,573,898	$	1,879,405	$	1,214,014	$	(2,574,422	)	$	2,092,895

Following is the condensed consolidating balance sheet at December 31, 2011 (in thousands):



	Clean Harbors, Inc.		U.S. Guarantor Subsidiaries		Foreign Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets:
Cash and cash equivalents	$	91,581	$	128,071	$	41,071	$	—		$	260,723
Intercompany receivables	319,444		—		126,823		(446,267		)	—
Other current assets	43,687		324,607		262,851		—			631,145
Property, plant and equipment, net	—		392,566		511,381		—			903,947
Investments in subsidiaries	1,064,966		421,648		91,654		(1,578,268		)	—
Intercompany debt receivable	—		472,929		3,701		(476,630		)	—
Other long-term assets	13,228		111,104		165,656		—			289,988
Total assets	$	1,532,906	$	1,850,925	$	1,203,137	$	(2,501,165	)	$	2,085,803
Liabilities and Stockholders’ Equity:
Current liabilities	$	15,612	$	220,968	$	145,162	$	—		$	381,742
Intercompany payables	—		446,267		—		(446,267		)	—
Closure, post-closure and remedial liabilities, net	—		133,773		21,369		—			155,142
Long-term obligations	524,203		—		—		—			524,203
Capital lease obligations, net	—		475		5,900		—			6,375
Intercompany debt payable	3,701		—		472,929		(476,630		)	—
Other long-term liabilities	88,403		7,588		21,363		—			117,354
Total liabilities	631,919		809,071		666,723		(922,897		)	1,184,816
Stockholders’ equity	900,987		1,041,854		536,414		(1,578,268		)	900,987
Total liabilities and stockholders’ equity	$	1,532,906	$	1,850,925	$	1,203,137	$	(2,501,165	)	$	2,085,803

Following is the consolidating statement of income for the three months ended March 31, 2012 (in thousands):



	Clean Harbors, Inc.			U.S. Guarantor Subsidiaries			Foreign Non-Guarantor Subsidiaries			Consolidating Adjustments			Total

Revenues	$	—		$	291,537		$	285,729		$	(5,244	)	$	572,022
Cost of revenues (exclusive of items shown separately below)	—			201,200			204,359			(5,244		)	400,315
Selling, general and administrative expenses	80			44,912			25,767			—			70,759
Accretion of environmental liabilities	—			2,096			320			—			2,416
Depreciation and amortization	—			16,636			20,195			—			36,831
Income from operations	(80		)	26,693			35,088			—			61,701
Other (expense) income	—			(450		)	151			—			(299		)
Interest (expense) income	(10,706		)	(201		)	(365		)	—			(11,272		)
Equity in earnings of subsidiaries	36,465			25,996			—			(62,461		)	—
Intercompany dividend income (expense)	10,010			—			3,526			(13,536		)	—
Intercompany interest income (expense)	—			10,345			(10,345		)	—			—
Income before provision for income taxes	35,689			62,383			28,055			(75,997		)	50,130
Provision for income taxes	3,674			5,722			8,719			—			18,115
Net income	$	32,015		$	56,661		$	19,336		$	(75,997	)	$	32,015

Following is the consolidating statement of income for the three months ended March 31, 2011 (in thousands):



	Clean Harbors, Inc.			U.S. Guarantor Subsidiaries		Foreign Non-Guarantor Subsidiaries			Consolidating Adjustments			Total

Revenues	$	—		$	248,367	$	192,788		$	(6,193	)	$	434,962
Cost of revenues (exclusive of items shown separately below)	—			175,438		143,332			(6,193		)	312,577
Selling, general and administrative expenses	42			36,111		18,641			—			54,794
Accretion of environmental liabilities	—			2,087		302			—			2,389
Depreciation and amortization	—			12,998		12,462			—			25,460
Income from operations	(42		)	21,733		18,051			—			39,742
Other income (expense)	—			3,336		(437		)	—			2,899
Interest (expense) income	(6,676		)	168		30			—			(6,478		)
Equity in earnings of subsidiaries	33,331			7,301		—			(40,632		)	—
Intercompany dividend income (expense)	—			—		3,456			(3,456		)	—
Intercompany interest income (expense)	—			8,730		(8,730		)	—			—
Income before provision for income taxes	26,613			41,268		12,370			(44,088		)	36,163
Provision for income taxes	3,883			6,327		3,223			—			13,433
Net income	22,730			34,941		9,147			(44,088		)	22,730

Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2012 (in thousands):



	Clean Harbors, Inc.			U.S. Guarantor Subsidiaries			Foreign Non-Guarantor Subsidiaries			Total

Net cash from operating activities	$	(18,010	)	$	10,827		$	36,736		$	29,553
Cash flows from investing activities:
Additions to property, plant and equipment	—			(14,678		)	(12,983		)	(27,661		)
Proceeds from sales of fixed assets	—			146			279			425
Acquisitions, net of cash acquired	—			(2,276		)	(6,475		)	(8,751		)
Costs to obtain or renew permits	—			(106		)	(319		)	(425		)
Purchase of available for sale securities	—			—			(4,468		)	(4,468		)
Other	—			603			4,517			5,120
Net cash from investing activities	—			(16,311		)	(19,449		)	(35,760		)

Cash flows from financing activities:
Change in uncashed checks	—			(7,125		)	(6,451		)	(13,576		)
Proceeds from exercise of stock options	30			—			—			30
Proceeds from employee stock purchase plan	1,238			—			—			1,238
Excess tax benefit of stock-based compensation	713			—			—			713
Payments on capital leases	—			(361		)	(1,805		)	(2,166		)
Distribution of cash earned on employee participation plan	(38		)	—			—			(38		)
Dividends (paid) / received	10,010			(13,428		)	3,418			—
Interest (payments) / received	—			16,783			(16,783		)	—
Net cash from financing activities	11,953			(4,131		)	(21,621		)	(13,799		)
Effect of exchange rate change on cash	—			—			810			810
Decrease in cash and cash equivalents	(6,057		)	(9,615		)	(3,524		)	(19,196		)
Cash and cash equivalents, beginning of period	91,581			128,071			41,071			260,723
Cash and cash equivalents, end of period	$	85,524		$	118,456		$	37,547		$	241,527

Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2011 (in thousands):



	Clean Harbors, Inc.			U.S. Guarantor Subsidiaries			Foreign Non-Guarantor Subsidiaries			Total

Net cash from operating activities	$	2,898		$	3,937		$	8,021		$	14,856
Cash flows from investing activities:
Additions to property, plant and equipment	—			(14,884		)	(19,231		)	(34,115		)
Proceeds from sale of fixed assets	—			67			946			1,013
Acquisitions, net of cash acquired	—			—			(2,152		)	(2,152		)
Additions to intangible assets, including costs to obtain or renew permits	—			(217		)	(105		)	(322		)
Proceeds from sale of marketable securities	—			—			388			388
Net cash from investing activities	—			(15,034		)	(20,154		)	(35,188		)

Cash flows from financing activities:
Change in uncashed checks	—			(2,087		)	(3,129		)	(5,216		)
Proceeds from exercise of stock options	39			—			—			39
Proceeds from employee stock purchase plan	699			—			—			699
Remittance of shares, net	(1,784		)	—			—			(1,784		)
Excess tax benefit of stock-based compensation	1,105			—			—			1,105
Deferred financing costs paid	(5,628		)	—			—			(5,628		)
Payments of capital leases	—			(186		)	(1,504		)	(1,690		)
Distribution of cash earned on employee participation plan	—			—			(189		)	(189		)
Issuance of senior secured notes, including premium	261,250			—			—			261,250
Dividends (paid) / received	10,186			(24,306		)	14,120			—
Interest (payments) / received	—			24,132			(24,132		)	—
Net cash from financing activities	265,867			(2,447		)	(14,834		)	248,586
Effect of exchange rate change on cash	—			—			1,299			1,299
Increase (decrease) in cash and cash equivalents	268,765			(13,544		)	(25,668		)	229,553
Cash and cash equivalents, beginning of period	100,476			124,582			77,152			302,210
Cash and cash equivalents, end of period	$	369,241		$	111,038		$	51,484		$	531,763