Heritage-Crystal Clean, Inc. Announces 2008 Second Quarter Financial Results

ELGIN, Ill., July 23, 2008 (PRIME NEWSWIRE) -- Heritage-Crystal Clean, Inc.
(Nasdaq:HCCI), a leading provider of parts cleaning, hazardous and non-hazardous
waste services to small and mid-sized customers, today announced results for the
second quarter of fiscal year 2008.

Second quarter highlights include:

* Sales increased 22%, to $24.8 million, compared to $20.4 million
in the second quarter of fiscal 2007. For the first half of
fiscal 2008, sales increased 21%, to $47.8 million, compared to
$39.6 million in the first half of fiscal 2007.

* Same-branch sales growth was 19%, measured for the 47 branches
which were in operation at the start of the year-ago quarter.

* Average sales per working day increased to approximately
$420,000, compared to $345,000 in the second quarter of
fiscal 2007.

* Pro forma EPS (diluted) increased by 44%, to $0.13, compared to
$0.09(1) in the second quarter of fiscal 2007.
Mr. Joseph Chalhoub, President and Chief Executive Officer of Heritage-Crystal
Clean, Inc. commented, "We are pleased with the continuing strong sales growth
we achieved during the quarter. We are also happy with our improved income
before taxes, which reached $2.5 million, an increase of 36% compared to $1.8
million in the second quarter of 2007."

Mr. Greg Ray, CFO and VP of Business Management, added, "Our improved income was
a particularly good result considering that we incurred costs related to being a
public company of approximately $300,000 in the most recent quarter, compared to
none in the prior year. During the most recent quarter, we experienced higher
costs for energy-related materials such as solvent and vehicle fuel, but this
was partially mitigated by improved margins on our reuse solvent, as we sold
solvent that had been carried in inventory at historically lower values."

Safe Harbor Statement

All references to the "Company," "we," "our," and "us" refer to Heritage-Crystal
Clean, Inc., and its subsidiaries.

This release contains forward-looking statements that are based upon current
management expectations. Generally, the words "aim," "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "plan," "project," "should,"
"will be," "will continue," "will likely result," "would" and similar
expressions identify forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other important
factors that could cause our actual results, performance or achievements or
industry results to differ materially from any future results, performance or
achievements expressed or implied by these forward-looking statements. These
risks, uncertainties and other important factors include, among others: our
ability to comply with the extensive environmental, health and safety and
employment laws and regulations that our Company is subject to; changes in
environmental laws that affect our business model; competition; claims relating
to our handling of hazardous substances; the limited demand for our used
solvent; our dependency on key employees; our ability to effectively manage our
extended network of branch locations; warranty expense and liability claims;
personal injury litigation; dependency of suppliers; economic conditions and
downturns in the business cycles of automotive repair shops, industrial
manufacturing business and small businesses in general; increased solvent, fuel
and energy costs; the control of The Heritage Group over our Company; and the
risks identified in our filings with the Securities and Exchange Commission,
including our Registration Statement on Form S-1 and our other SEC filings.
Given these uncertainties, you are cautioned not to place undue reliance on
these forward-looking statements. We assume no obligation to update or revise
them or provide reasons why actual results may differ. The information in this
release should be read in light of such risks and in conjunction with the
consolidated financial statements and the notes thereto included elsewhere in
this release.

About Heritage-Crystal Clean, Inc.

Heritage-Crystal Clean, Inc. provides parts cleaning, hazardous and
non-hazardous waste services to small and mid-sized customers in both the
manufacturing and automotive service sectors. Our service programs include parts
cleaning, containerized waste management, used oil collection, and vacuum truck
services. These services help our customers manage their used chemicals and
liquid and solid wastes, while also helping to minimize their regulatory
burdens. Our customers include businesses involved in vehicle maintenance
operations, such as car dealerships, automotive repair shops, and trucking
firms, as well as small manufacturers, such as metal product fabricators and
printers. Heritage-Crystal Clean, Inc. is headquartered in Elgin, Illinois, and
operates through more than 50 branches serving over 36,000 customer locations.

The Heritage-Crystal Clean, Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=4974

Conference Call

The company will host a conference call on Thursday, July 24, 2008 at 9:30 AM
Central Time, during which management will make a brief presentation focusing on
the company's operations and financial results.

Interested parties can listen to the audio webcast available through our company
website, www.crystal-clean.com/investor/, and can participate in the call by
dialing (719-325-4920).

(1) Pro forma EPS is calculated as if we had been a 'C' corporation and reflects
a retroactive adjustment as of the beginning of 2007 of weighted average shares
outstanding to reflect the reorganization of the company that occurred in
connection with our initial public offering.

Financial Statements

Heritage-Crystal Clean, Inc.
Consolidated Balance Sheets
(Unaudited)

June 14, 2008 Dec. 29, 2007
------------ ------------
ASSETS

Current Assets:
Cash and cash equivalents $ 434,391 $ 479,364
Accounts receivable, net of allowance for
doubtful accounts of $661,617 and
$1,129,657 at June 14, 2008 and
December 29, 2007, respectively 14,812,231 13,446,073
Inventory 13,426,349 10,447,373
Deferred income taxes 1,078,633 --
Prepaid and other current assets 1,349,639 1,207,426
------------ ------------
Total Current Assets 31,101,243 25,580,236
Fixed assets, net of accumulated
depreciation 20,238,045 19,420,294
Deferred offering costs -- 1,275,694
Deferred income taxes 380,084 --
Software and intangible assets, net of
accumulated amortization 1,849,709 1,707,395
------------ ------------
Total Assets $ 53,569,081 $ 47,983,619
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Accounts payable $ 6,354,266 $ 7,257,643
Accrued salaries, wages, and benefits 1,579,422 1,559,941
Taxes payable 2,067,583 983,128
Other accrued expenses 1,079,128 1,169,260
------------ ------------
Total Current Liabilities 11,080,399 10,969,972
Note payable - bank 1,705,000 22,045,000
------------ ------------
Total Liabilities 12,785,399 33,014,972

Redeemable Capital Units -- 2,261,391

STOCKHOLDERS' EQUITY:

Preferred members' capital -- 14,703,813
Common members' capital -- 367,932
Common stock - 15,000,000 Shares
authorized at $0.01 par value, 10,675,390
shares issued and outstanding at
June 14, 2008 106,754 --
Additional paid-in capital 42,422,298 --
Accumulated deficit (1,745,370) (2,364,489)
------------ ------------
Total Stockholders' Equity $ 40,783,682 $ 12,707,256
------------ ------------

Total Liabilities and
Stockholders' Equity $ 53,569,081 $ 47,983,619
============ ============

Heritage-Crystal Clean, Inc.
Consolidated Statements of Operations
(Unaudited)

Second Quarter Ended First Half Ended
June 14, June 16, June 14, June 16,
2008 2007 2008 2007
----------- ----------- ----------- -----------

Sales $24,837,826 $20,386,092 $47,835,269 $39,574,192
Cost of sales 5,630,289 4,876,978 11,915,980 9,881,173
Cost of sales -
inventory
impairment -- -- -- 2,182,330
----------- ----------- ----------- -----------
Gross profit 19,207,537 15,509,114 35,919,289 27,510,689
----------- ----------- ----------- -----------
Operating costs 12,601,403 9,888,264 24,117,458 19,169,347
Selling, general,
and administrative
expenses 4,131,455 3,518,237 10,762,565 6,618,829
Proceeds from
contract
termination -- -- -- (3,000,000)
----------- ----------- ----------- -----------
Operating income 2,474,679 2,102,613 1,039,266 4,722,513
Interest expense -
net 18,647 302,329 371,338 642,356
----------- ----------- ----------- -----------
Income before
income taxes 2,456,032 1,800,284 667,928 4,080,157
Provision for
income taxes 1,046,644 -- 2,026,814 --
----------- ----------- ----------- -----------
Net income (loss) 1,409,388 1,800,284 (1,358,886) 4,080,157
Preferred return -- 390,299 339,188 780,598
----------- ----------- ----------- -----------
Net income (loss)
available to
common
shareholders $ 1,409,388 $ 1,409,985 $(1,698,074) $ 3,299,559
=========== =========== =========== ===========

Net income (loss)
per share
available to
common
shareholders:
basic $ 0.13 $ 0.20 $ (0.19) $ 0.46
Net income (loss)
per share
available to
common
shareholders:
diluted $ 0.13 $ 0.19 $ (0.19) $ 0.46
=========== =========== =========== ===========

Pro forma data:
Net income (loss) $ 1,409,388 $ 1,800,284 $(1,358,886) $ 4,080,157
Pro forma provision
for income taxes -- 738,116 497,246 1,672,864
Return on preferred
and mandatorily
redeemable capital
units -- 400,488 372,474 805,720
----------- ----------- ----------- -----------
Pro forma net
income (loss)
available to
common members $ 1,409,388 $ 661,680 $(2,228,606) $ 1,601,573
=========== =========== =========== ===========

Pro forma net
income (loss) per
share: basic $ 0.13 $ 0.09 $ (0.24) $ 0.22
Pro forma net
income (loss) per
share: diluted $ 0.13 $ 0.09 $ (0.24) $ 0.22
=========== =========== =========== ===========

Number of weighted
average common
shares
outstanding:
basic 10,675,390 7,181,790 9,147,554 7,172,830
Number of weighted
average common
shares
outstanding:
diluted 10,927,360 7,241,790 9,147,554 7,213,630
----------- ----------- ----------- -----------

Heritage-Crystal Clean, Inc.
Reconciliation of our Net Income Determined in Accordance to GAAP
to Earnings Before Interest, Taxes, Depreciation & Amortization
(EBITDA)

Second Quarter Ended

June 14, June 16,
2008 2007
---------- ----------

Net income $1,409,388 $1,800,284 (a)

Interest expense 18,647 302,329

Provision for income taxes 1,046,644 --

Depreciation and amortization 821,083 638,387
---------- ----------
EBITDA(b) $3,295,762 $2,741,000
========== ==========

(a) For the second quarter ended June 16, 2007, as a limited liability
company, we were not subject to Federal or state corporate income
taxes. Therefore, net income has not given effect to taxes.

(b) EBITDA represents net income before income tax expense, interest
income, interest expense, depreciation and amortization. We have
presented EBITDA because we consider it an important supplemental
measure of our performance and believe it is frequently used by
analysts, investors, our lenders and other interested parties in
the evaluation of companies in our industry. Management uses
EBITDA as a measurement tool for evaluating our actual operating
performance compared to budget and prior periods. Other companies
in our industry may calculate EBITDA differently than we do.
EBITDA is not a measure of performance under GAAP and should not
be considered as a substitute for net income prepared in
accordance with GAAP. EBITDA has limitations as an analytical
tool, and you should not consider it in isolation or as a
substitute for analysis of our results as reported under GAAP.
Some of these limitations are:

* EBITDA does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual
commitments;

* EBITDA does not reflect interest expense or the cash
requirements necessary to service interest or principal payments
on our debt;

* EBITDA does not reflect tax expense or the cash requirements
necessary to pay for tax obligations; and

* Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA does not reflect any cash
requirements for such replacements.

* We compensate for these limitations by relying primarily on our
GAAP results and using EBITDA only as a supplement.
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CONTACT: Heritage-Crystal Clean, Inc.
Greg Ray, Chief Financial Officer and
VP Business Management,
(847) 836-5670