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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 10, 2022
 OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from _________________to _________________

Commission File Number 001-33987

hcci-20220910_g1.jpg

HERITAGE-CRYSTAL CLEAN, INC.
(Exact name of registrant as specified in its charter)
Delaware 26-0351454
State or other jurisdiction of (I.R.S. Employer
Incorporation Identification No.)

2000 Center Drive
Suite East C300
Hoffman Estates, IL 60192
(Address of principal executive offices and zip code)  

Registrant’s telephone number, including area code: (847) 836-5670

Former Address:
2175 Point Boulevard. Suite 375
Elgin, IL 60123

Securities registered pursuant to Section 12(b) of the Act:
Title of each ClassTrading SymbolName of Exchange on which registered
Common Stock, par value $0.01 per shareHCCINASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes x No o
1



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer o
 
Accelerated filer x
Non-accelerated filer o
(Do not check if a smaller reporting company) 
Smaller reporting company  
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No x

On October 18, 2022, there were outstanding 24,177,299 shares of Common Stock, $0.01 par value, of Heritage-Crystal Clean, Inc.



2


Table of Contents

3


PART I

    ITEM 1. FINANCIAL STATEMENTS
4


Heritage-Crystal Clean, Inc.
Condensed Consolidated Balance Sheets
(In Thousands, Except Share and Par Value Amounts)
 September 10,
2022
January 1,
2022
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$25,714 $56,269 
Accounts receivable - net118,716 62,513 
Inventory - net42,470 29,536 
Assets held for sale1,125 1,125 
Other current assets15,033 6,773 
Total current assets203,058 156,216 
Property, plant and equipment - net233,039 166,301 
Right of use assets117,430 83,865 
Equipment at customers - net26,010 24,146 
Software and intangible assets - net43,352 45,949 
Goodwill133,126 49,695 
Investments at fair value3,000  
Other assets 692 
Total assets$759,015 $526,864 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$56,753 $36,179 
Current portion of lease liabilities26,709 20,146 
Contract liabilities - net2,637 2,094 
Accrued salaries, wages, and benefits11,926 8,980 
Taxes payable17,320 8,474 
Other current liabilities13,154 9,476 
Revolving credit facility99,324  
Total current liabilities227,823 85,349 
  Lease liabilities, net of current portion93,952 65,041 
Other long term liabilities828 473 
Contingent consideration 2,819 
Deferred income taxes34,467 31,126 
Total liabilities$357,070 $184,808 
STOCKHOLDERS' EQUITY:
Common stock - 26,000,000 shares authorized at $0.01 par value, 23,595,968 and 23,473,931 shares issued and outstanding at September 10, 2022 and January 1, 2022, respectively
$236 $235 
Additional paid-in capital207,704 204,920 
Retained earnings194,253 137,067 
Accumulated other comprehensive loss(248)(166)
Total stockholders' equity 401,945 342,056 
Total liabilities and stockholders' equity$759,015 $526,864 
 
See accompanying notes to financial statements.
5



Heritage-Crystal Clean, Inc.
Condensed Consolidated Statements of Income
(In Thousands, Except per Share Amounts)
(Unaudited)
 Third Quarter Ended,First Three Quarters Ended,
 September 10, 2022September 11, 2021September 10, 2022September 11, 2021
Revenues
Service revenues$90,084 $59,737 $234,575 $177,469 
Product revenues75,676 57,713 214,948 151,529 
Rental income6,459 5,725 18,710 16,836 
Total revenues$172,219 $123,175 $468,233 $345,834 
Operating expenses
Operating costs$114,147 $79,486 $320,684 $234,584 
Selling, general, and administrative expenses17,086 13,294 45,846 38,522 
Depreciation and amortization8,262 5,767 21,546 15,168 
Other (income) expense - net(329)(230)462 (669)
Operating income33,053 24,858 79,695 58,229 
Interest expense – net885 206 1,358 707 
Income before income taxes32,168 24,652 78,337 57,522 
Provision for income taxes8,967 6,144 21,151 14,697 
Net income$23,201 $18,508 $57,186 $42,825 
Net income per share: basic$0.98 $0.79 $2.43 $1.83 
Net income per share: diluted$0.98 $0.79 $2.42 $1.82 
Number of weighted average shares outstanding: basic23,592 23,431 23,519 23,403 
Number of weighted average shares outstanding: diluted23,674 23,570 23,651 23,548 

See accompanying notes to financial statements.
6




Heritage-Crystal Clean, Inc.
Condensed Consolidated Statements of Comprehensive Income
(In Thousands)
(Unaudited)

 Third Quarter Ended,First Three Quarters Ended,
 September 10,
2022
September 11,
2021
September 10,
2022
September 11,
2021
Net income$23,201 $18,508 $57,186 $42,825 
Other comprehensive loss:
Currency translation adjustments(7)(143)(82)(143)
Total other comprehensive loss:$(7)$(143)$(82)$(143)
Comprehensive income$23,194 $18,365 $57,104 $42,682 

See accompanying notes to financial statements.
7


Heritage-Crystal Clean, Inc.
Condensed Consolidated Statement of Stockholders’ Equity
(In Thousands, Except Share Amounts)
For the Third Quarter Ended, September 10, 2022 and September 11, 2021
(Unaudited)

Third Quarter Ended,
September 10, 2022
SharesPar
Value
Common
Additional Paidin
Capital
Retained EarningsAccumulated Other Comprehensive LossTotal Equity
Balance, June 18, 202223,494,045 $235 $206,296 $171,052 $(241)$377,342 
Net income— — — 23,201 — 23,201 
Currency translation adjustment— — — — (7)(7)
 Distribution— — — —  
Issuance of common stock – ESPP101,923 1 145 — — 146 
Share-based compensation— — 1,263 — — 1,263 
Share repurchases to satisfy tax withholding obligations— — — — —  
Balance at September 10, 202223,595,968 $236 $207,704 $194,253 $(248)$401,945 
Third Quarter Ended,
September 11, 2021
SharesPar
Value
Common
Additional Paidin
Capital
Retained EarningsAccumulated Other Comprehensive LossTotal Equity
Balance, June 19, 202123,410,606 $234 $203,356 $100,436 $ $304,026 
Net income— — — 18,508 — 18,508 
Currency translation adjustment— — — — (143)(143)
Distribution— — — —  
Issuance of common stock – ESPP4,324 — 124 — — 124 
Share-based compensation35,939 — 916 — — 916 
Share repurchases to satisfy tax withholding obligations— — (867)— — (867)
Balance at September 11, 202123,450,869 $234 $203,529 $118,944 $(143)$322,564 
 

8


First Three Quarters Ended,
September 10, 2022
SharesPar Value CommonAdditional Paid–in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Equity
Balance, January 1, 202223,473,931 $235 $204,920 $137,067 $(166)$342,056 
Net income— — — 57,186 — 57,186 
Currency translation adjustment — — — — (82)(82)
Issuance of common stock – ESPP110,550 1 396 — — 397 
   Share-based compensation 11,487 — 3,790 — — 3,790 
Share repurchases to satisfy tax withholding obligations— — (1,402)— — (1,402)
Balance at September 10, 202223,595,968 $236 $207,704 $194,253 $(248)$401,945 
First Three Quarters Ended,
September 11, 2021
SharesPar Value CommonAdditional Paid–in CapitalRetained EarningsAccumulated Other Comprehensive IncomeTotal Equity
Balance, January 2, 202123,340,700 $233 $201,148 $76,119 $ $277,500 
Net income— — — 42,825 — 42,825 
Currency Translation Adjustment— — — — (143)(143)
Issuance of common stock – ESPP15,146 — 371 — — 371 
Share-based compensation95,023 1 3,606 — — 3,607 
Share repurchases to satisfy tax withholding obligations— — (1,596)— — (1,596)
Balance at September 11, 202123,450,869 $234 $203,529 $118,944 $(143)$322,564 

9


Heritage-Crystal Clean, Inc.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
 First Three Quarters Ended,
 September 10,
2022
September 11,
2021
Cash flows from Operating Activities: 
Net income$57,186 $42,825 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization21,546 15,168 
Provision for civil action settlement1,100  
Uncollectible provision1,115 1,069 
Share-based compensation4,166 3,922 
Deferred taxes2,292 6,068 
Other, net1,063 (165)
Changes in operating assets and liabilities:
   (Increase) in accounts receivable(31,013)(12,883)
   (Increase) in inventory(12,934)(2,803)
   (Increase) in other current assets(6,314)(1,032)
   Increase in accounts payable 15,084 2,254 
   Increase in accrued liabilities5,092 8,704 
Cash provided by operating activities$58,383 $63,127 
Cash flows from Investing Activities:  
Capital expenditures$(24,156)$(12,039)
Proceeds from sale of assets177 1,612 
Investment in Retriev(3,000) 
Business acquisitions, net of cash acquired(157,854)(11,373)
Cash used in investing activities$(184,833)$(21,800)
Cash flows from Financing Activities:  
Payment of Term Loan (30,000)
Net change in line of credit100,000  
Debt issuance costs (100)(822)
Repayment of principal on finance leases(3,000)(1,582)
Share repurchases to satisfy tax withholding obligations(1,402)(1,596)
Proceeds from the issuance of common stock397 371 
Cash provided by (used in) financing activities$95,895 $(33,629)
Net (decrease) increase in cash and cash equivalents(30,555)7,698 
Cash and cash equivalents, beginning of period56,269 67,575 
Cash and cash equivalents, end of period$25,714 $75,273 
Supplemental disclosure of cash flow information:  
Income taxes paid$11,796 $637 
Cash paid for interest627 125 
Supplemental disclosure of non-cash information: 
Payables for construction in progress2,865 719 

See accompanying notes to financial statements.

10



HERITAGE-CRYSTAL CLEAN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

September 10, 2022


(1)    ORGANIZATION AND NATURE OF OPERATIONS

Heritage-Crystal Clean, Inc., a Delaware corporation and its subsidiaries (collectively the “Company”), provide parts cleaning, used oil re-refining, hazardous and non-hazardous waste disposal, emergency and spill response, and industrial and field services to vehicle maintenance businesses, manufacturers and other industrial businesses, as well as utilities and governmental entities. The Company owns and operates a used oil re-refinery where it re-refines used oils and sells high quality base oil for use in the manufacture of finished lubricants as well as other re-refinery products. The Company also has multiple locations where it dehydrates used oil. The oil processed at these locations is primarily sold as recycled fuel oil. The Company also operates ten non-hazardous waste processing facilities, as well as five antifreeze recycling facilities at which it produces virgin-quality antifreeze. The Company's locations are in the United States and Ontario, Canada. The Company conducts its primary business operations through Heritage-Crystal Clean, LLC, its wholly owned subsidiary, and all intercompany balances have been eliminated in consolidation.

The Company has two reportable segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists of the Company's parts cleaning, hazardous and non-hazardous waste disposal, wastewater vacuum, antifreeze recycling activities, emergency and spill response, and industrial and field services. The Oil Business segment consists of the Company's used oil collection, recycled fuel oil sales, used oil re-refining activities, and used oil filter removal and disposal services. No customer represented greater than 10% of consolidated revenues for any of the periods presented. There were no intersegment revenues. Both segments operate in the United States and, to an immaterial degree, in Ontario, Canada. As such, the Company is not disclosing operating results by geographic segment.

The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on January 1, 2022. Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. 

In the Company's Environmental Services segment, product revenues include sales of solvent, machines, absorbent, accessories, and antifreeze; service revenues include servicing of parts cleaning machines, hazardous and non-hazardous waste removal services, wastewater vacuum services, emergency and spill response, and industrial and field services; rental income includes embedded lease income from certain of our parts cleaning contracts. In the Company's Oil Business segment, product revenues primarily consist of sales of re-refined base oil, re-refinery co-products and recycled fuel oil; service revenues include revenues from used oil collection activities, collecting and disposing of wastewater and removal and disposal of used oil filters. Due to the Company's integrated business model, it is impracticable to separately present costs of tangible products and costs of services.

COVID-19 Pandemic

We are closely monitoring the spread and impact of the COVID-19 pandemic and are continually assessing its potential effects on our business and our financial performance as well as the businesses of our customers and vendors. The Company cannot predict the duration or severity of the COVID-19 pandemic, and we cannot reasonably estimate the financial impact the COVID-19 outbreak will have on our results and significant estimates going forward.

The ultimate impact of the COVID-19 pandemic on our business, results of operations, financial condition and cash flows is highly uncertain and cannot be accurately predicted and is dependent on future developments, including the duration of the pandemic and the related length of its impact on the global economy, and any new information that may emerge concerning the COVID-19 outbreak and the actions to contain it or treat its impact. In fiscal 2021, the continued impact on our business as a result of COVID-19 pandemic resulted in additional lost work hours which negatively impacted our ability to service our customers on a timely basis, the effect of which is included in the fiscal 2021 financial operations in this filing. Although no material impact on our business occurred during the third quarter of 2022 or during the first three quarters of 2022, the continued impact on our business as a result of the COVID-19 pandemic could result in a material adverse effect on our business, results of operations, financial condition, prospects and the trading prices of our securities in the near-term and throughout 2022.
11


(2)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    The Company's significant accounting policies are described in Note 2, "Summary of Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2022. There have been no material changes in these policies or their application during the third quarter of fiscal 2022.

12



(3)    BUSINESS COMBINATIONS

On August 3, 2022, Heritage-Crystal Clean, LLC, completed its acquisition of all of the issued and outstanding shares of the capital stock of Patriot Environmental Services, Inc. ("Patriot"), a leading provider of environmental services across the Western United States specializing in emergency response, industrial services, OSRO spill response and a wide variety of waste services. Total consideration for the acquisition was approximately $157.9 million in cash subject to various adjustments such as a working capital adjustment and seller indemnification obligations. To date, there have been no adjustments to the purchase price. Goodwill recognized from the acquisition of Patriot, represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired and liabilities assumed. The Company has not yet completed the fair value valuation with a 3rd party specialist and therefore is still in the process of finalizing the purchase price allocation for the acquisition as of September 10, 2022. Furthermore, acquisition deferred taxes are not yet finalized as of September 10, 2022. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Patriot, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. Transaction costs incurred in conjunction with the acquisition of Patriot were approximately $0.9 million. The results of Patriot are consolidated into the Company’s Environmental Services segment from the date of acquisition.

On September 27, 2021, the Company completed the acquisition of Source Environmental, Inc., ("Source Environmental"), which increased the Company's penetration in the hazardous and non-hazardous waste business in several markets in the Western U.S. This transaction also provided the Company with the opportunity to internalize the performance of certain field service activities in the Western U.S. Total consideration for the acquisition was approximately $20.4 million. To date, there have been no adjustments to the purchase price. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Source Environmental, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. Transaction costs incurred in conjunction with the acquisition of Source Environmental were immaterial. The results of Source Environmental are consolidated into the Company’s Environmental Services segment from the date of acquisition.

On September 13, 2021, the Company completed the acquisition of Raider Environmental Services of Florida, Inc., ("Raider Environmental"), which expanded the Company's network of wastewater processing, oil collection and non-hazardous waste consolidation and solidification to better serve the Company's customers in Florida and throughout the Southern United States. Total consideration for the acquisition was approximately $13.7 million. To date, there have been no adjustments to the purchase price. This acquisition provided the Company another wastewater treatment facility as well as assets to help further the Company's initiative to increase its non-hazardous containerized waste processing capabilities. This also provided the Company with exposure to industry verticals in which it didn't previously participate. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Raider Environmental, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. Transaction costs incurred in conjunction with the acquisition of Raider Environmental were immaterial. The results of Raider Environmental are consolidated primarily into the Company’s Environmental Services segment and an immaterial amount in the Oil Business segment from the date of acquisition.

On August 24, 2021, Heritage-Crystal Clean completed the acquisition of certain assets of Bakersfield Transfer, Inc., and Cole’s Services, Inc., together known as ("Cole's Environmental"), which processed, stored, and disposed of hazardous waste within the state of California. The purchase price was $17.3 million subject to certain adjustments, including a contingent consideration provision. Goodwill recognized from the acquisition of Cole's Environmental, represents the excess of the estimated purchase consideration transferred over the estimated fair value of the assets acquired and liabilities assumed. To date, there have been no adjustments to the purchase price. Factors leading to goodwill being recognized are the Company’s expectation of synergies from combining operations of Cole's Environmental, and the Company as well as the value of intangible assets that are not separately recognized, such as the assembled workforce. The results of Cole's Environmental are consolidated primarily into the Company’s Environmental Services segment and an immaterial amount in the Oil Business segment from the date of acquisition.

The following table summarizes the estimated fair values of the assets acquired, net of cash acquired, related to each acquisition as of September 10, 2022:

13


As of September 10, 2022
(thousands)
Source Environmental, Inc.(1)
Raider Environmental Services of Florida, Inc.(1)
Cole's Environmental(1)
Patriot Environmental Services, Inc.(2)
Accounts receivable$1,064 $488 $ $26,305 
Inventory  73  
Other current assets6 162  1,947 
Property, plant, & equipment174 4,404 2,455 57,932 
Intangible assets13,692 6,056 9,620  
Goodwill6,174 2,835 5,144 83,431 
Accounts payable and accruals(677)(218) (11,761)
Total purchase price, net of cash acquired$20,433 $13,727 $17,292 $157,854 
Less: contingent consideration  4,464  
Less: placed in escrow  100 2,780 
Net cash paid$20,433 $13,727 $12,728 $155,074 

(1) The above purchase price allocations are final as of September 10, 2022.
(2) The Company is still in the process of finalizing the purchase price allocation for the acquisition and therefore all balances are provisional.

Unaudited Pro Forma Financial Information

The pro forma financial information in the table below presents the combined results of the Company as if the Patriot acquisition had occurred on January 2, 2021. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the periods presented.
Third Quarter Ended,
(thousands, except per share data)September 10, 2022September 11, 2021
Total revenues$179,832 $148,005 
Net income$21,796 $20,744 
Net income per share: basic$0.92 $0.89 
Net income per share: diluted$0.92 $0.88 

First Three Quarters Ended,
(thousands, except per share data)September 10, 2022September 11, 2021
Total revenues$541,008 $418,878 
Net income$56,409 $44,734 
Net income per share: basic$2.40 $1.91 
Net income per share: diluted$2.39 $1.90 

The following sets forth certain adjustments made in the preparation of the unaudited pro forma financial statements. All pro forma adjustments are based on preliminary estimates and assumptions and are subject to revision upon finalization of the purchase accounting for the Acquisition:
Reflects adjustments to selling, general, and administrative expenses to exclude transaction costs of $0.9 million incurred to execute the purchase that were expensed in the first three quarters of fiscal 2022. Additional adjustment of estimated cost savings of $3.6 million related to layoffs of personnel as a result of the acquisition.
14


Pro forma adjustment related to estimated additional depreciation expense as a result of the $31.8 million of step up to fair value of the property, plant, and equipment with an average estimated useful life of 7 years.
Pro forma adjustment related to estimated additional interest expense as a result of the draw on the line of credit in order to fund the acquisition.


(4) REVENUE

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when our performance obligations under the terms of a contract with our customers are satisfied. Recognition occurs when the Company transfers control by completing the specified services at the point in time the customer benefits from the services performed or once our products are delivered. The majority of revenue is recognized at a point in time, except for rental income which is recognized on an over time basis. The Company measures progress toward complete satisfaction of a performance obligation satisfied over time using a cost-based input method. This method of measuring progress provides a faithful depiction of the transfer of goods or services because the costs incurred are expected to be substantially proportionate to the Company’s satisfaction of the performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for completing our performance obligations. Sales tax and other taxes we collect with revenue-producing activities are excluded from revenue. In the case of contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative stand-alone selling prices of the various goods and/or services encompassed by the contract. We do not have any material significant payment terms as payment is generally due within 30 days after the performance obligation has been satisfactorily completed. The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. In applying the guidance in Topic 606, there were no judgments or estimates made that the Company deems significant.

Contract Balances — Contract assets primarily relate to the Company’s rights to consideration for work completed in relation to its services performed but not billed at the reporting date. Contract liabilities primarily consist of advance payments of performance obligations yet to be fully satisfied in the period reported. Our contract liabilities and contract assets are reported in a net position at the end of each reporting period.

We disaggregate our revenue from contracts with customers by major lines of business for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

The following table disaggregates our revenue by major lines:
Third Quarter Ended,
September 10, 2022September 11, 2021
Total Net Sales by Major Lines of Business (thousands)
Environmental ServicesOil BusinessTotalEnvironmental ServicesOil BusinessTotal
Parts Cleaning, Containerized Waste, & related products/services$51,731 $ $51,731 $40,232 $ $40,232 
Wastewater Vacuum Services21,169  21,169 15,131  15,131 
Field Services19,822  19,822 5,063  5,063 
Antifreeze Business7,036  7,036 5,730  5,730 
Environmental Services - Other475  475 458  458 
Re-Refinery Product Sales 62,618 62,618  45,275 45,275 
Oil Collection Services & RFO 1,712 1,712  4,425 4,425 
Oil Filter Business 1,197 1,197  1,136 1,136 
Revenues from Contracts with Customers100,233 65,527 165,760 66,614 50,836 117,450 
Rental income6,445 14 6,459 5,725  5,725 
Total Revenues$106,678 $65,541 $172,219 $72,339 $50,836 $123,175 

15


First Three Quarters Ended,
September 10, 2022September 11, 2021
Total Net Sales by Major Lines of Business (thousands)
Environmental ServicesOil BusinessTotalEnvironmental ServicesOil BusinessTotal
Parts cleaning, containerized waste, & related products/services$148,908 $ $148,908 $119,805 $ $119,805 
Wastewater Vacuum Services59,710  59,710 43,671  43,671 
Field Services32,651  32,651 13,908  13,908 
Antifreeze Business21,810  21,810 19,003  19,003 
Environmental Services - Other1,456  1,456 1,306  1,306 
Re-refinery Product Sales 165,955 165,955  114,158 114,158 
Oil Collection Services & RFO 15,278 15,278  13,594 13,594 
Oil Filter Business 3,755 3,755  3,553 3,553 
Revenues from Contracts with Customers264,535 184,988 449,523 197,693 131,305 328,998 
Rental income18,673 37 18,710 16,818 18 16,836 
Total Revenues$283,208 $185,025 $468,233 $214,511 $131,323 $345,834 

The following table provides information about contract assets and contract liabilities from contracts with customers:
(thousands)September 10, 2022January 1, 2022
Contract assets$84 $268 
Contract liabilities2,721 2,362 
Contract liabilities - net$2,637 $2,094 

During the fiscal quarter ended September 10, 2022, the Company recognized no revenue that was included in the contract liabilities balance as of January 1, 2022. During the first three quarters ended September 10, 2022, the Company recognized $2.4 million of revenue that was included in the contract liabilities balance as of January 1, 2022. The Company has no assets recognized from costs to obtain or fulfill a contract with a customer. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.


(5)    ACCOUNTS RECEIVABLE

Accounts Receivable — Net, includes amounts billed to and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for uncollectible accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. The Company does not have any off-balance-sheet credit exposure related to its customers.

Accounts receivable for the third quarter ended September 10, 2022, and the fiscal year ended January 1, 2022 consisted of the following:
(thousands)September 10,
2022
January 1,
2022
Trade$115,278 $59,132 
Less: allowance for uncollectible accounts5,169 2,928 
Trade - net110,109 56,204 
Related parties7,817 5,410 
Other