Attached files
| file | filename |
|---|---|
| 8-K - 8K BODY - STERICYCLE INC | bo8k0911.htm |
EXHIBIT 99.1
FOR FURTHER INFORMATION CONTACT:
FOR IMMEDIATE RELEASE
Frank ten Brink 847-607-2012
Conference call to be held October 26, 2011 at 4:00 p.m. Central time – Dial 866-516-6872 at least 5 minutes before start time. If you are unable to participate on the call, a replay will be available through November 26th by dialing 855-859-2056, access code 13876685. To hear a live simulcast of the call over the internet on www.earnings.com, or to access an audio archive of the call, go to the Investors page on Stericycle’s website at www.stericycle.com.
STERICYCLE, INC. REPORTS RESULTS
FOR THIRD QUARTER 2011
Lake Forest, Illinois, October 26, 2011—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the third quarter of 2011.
Revenues for the quarter ended September 30, 2011 were $420.9 million, up 16.0% from $363.0 million from the same quarter last year. Acquisitions less than 12 months old contributed approximately $43.9 million to the growth in revenues. The impact on revenues from foreign exchange in the quarter was $4.1 million favorable. Gross profit was $190.1 million, up 13.1% from $168.1 million in the third quarter last year. Gross profit as a percent of revenue was 45.2% compared with 46.3% in the third quarter of 2010.
Net income attributable to Stericycle for the third quarter of 2011 was $59.2 million or $0.68 per diluted share compared with $56.7 million or $0.65 per diluted share for the third quarter of 2010. Net income attributable to Stericycle for the third quarter of 2011 includes acquisition expenses, restructuring costs, and other items. Excluding the effects of these items, non-GAAP earnings per diluted share was $0.71 for the quarter (see table below). Our non-GAAP earnings per diluted share increased 9.6% from our non-GAAP earnings per share of $0.65 in the third quarter of 2010.
FIRST NINE MONTHS’ RESULTS
For the nine months ending September 30, 2011, revenues were $1.229 billion, up 17.6% from $1.046 billion in the same period last year. Revenues increased 16.2% compared with the prior period when adjusted for favorable foreign exchange impacts of $13.7 million. Gross profit was $559.2 million, up 15.3% from $485.0 million in the same period last year. Gross profit as a percent of revenue was 45.5% compared with 46.4% in 2010. Earnings per diluted share increased to $1.95 from $1.82 per diluted share in the same period last year. Non-GAAP earnings per diluted share, when adjusted for various items, increased from $1.83 in the prior year period to $2.08, or 13.6% (see table below):
|
Table to reconcile non-GAAP EPS to GAAP EPS | |||||||||||
| Three months ended September 30, |
| Nine months ended September 30, | ||||||||
|
|
|
| Change |
|
|
|
| Change | ||
| 2011 | 2010 |
| $ | % |
| 2011 | 2010 |
| $ | % |
GAAP EPS | $0.68 | $0.65 |
| $0.03 | 4.3% |
| $1.95 | $1.82 |
| $0.13 | 7.0% |
Acquisition expenses/ Restructuring costs/ Other | 0.05 | 0.02 |
|
|
|
| 0.15 | 0.03 |
|
|
|
Net release of prior year’s tax reserves | (0.01) | (0.01) |
|
|
|
| (0.01) | (0.01) |
|
|
|
Non-GAAP EPS (adjusted) | $0.71 | $0.65 |
| $0.06 | 9.6% |
| $2.08 | $1.83 |
| $0.25 | 13.6% |
* In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identified in this table. For internal purposes, including the determination of management compensation, the Company excludes these items from results when evaluating operating performance. This table and the Company’s internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.
Cash flow from operations was $215.2 million for the nine months ended September 30, 2011.
For more information about Stericycle, please visit our website at www.stericycle.com.
Safe Harbor Statement: Statements in this press release may contain forward-looking statements that involve risks and uncertainties, some of which are beyond our control (for example, general economic conditions). Our actual results could differ significantly from the results described in the forward-looking statements. Factors that could cause such differences include changes in governmental regulation of medical waste collection and treatment and increases in transportation and other operating costs, as well as the other factors described in our filings with the U.S. Securities and Exchange Commission. As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. We make no commitment to disclose any subsequent revisions to forward-looking statements.
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands, except share and per share data | |||||
|
| September 30, |
|
| December 31, |
|
| 2011 |
|
| 2010 |
|
| (Unaudited) |
|
| (Audited) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents | $ | 23,395 |
| $ | 77,053 |
Short-term investments |
| 416 |
|
| 18,471 |
Accounts receivable, less allowance for doubtful accounts of $18,546 in 2011 and $10,845 in 2010 |
| 283,710 |
|
| 215,420 |
Deferred income taxes |
| 15,696 |
|
| 16,824 |
Prepaid expenses |
| 22,160 |
|
| 16,038 |
Other current assets |
| 39,465 |
|
| 24,882 |
Total Current Assets |
| 384,842 |
|
| 368,688 |
Property, Plant and Equipment, net |
| 290,721 |
|
| 267,971 |
Other Assets: |
|
|
|
|
|
Goodwill |
| 1,924,989 |
|
| 1,595,764 |
Intangible assets, less accumulated amortization of $38,881 in 2011 and $28,394 in 2010 |
| 524,229 |
|
| 375,174 |
Other |
| 30,727 |
|
| 31,426 |
Total Other Assets |
| 2,479,945 |
|
| 2,002,364 |
Total Assets | $ | 3,155,508 |
| $ | 2,639,023 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt | $ | 95,149 |
| $ | 91,406 |
Accounts payable |
| 70,285 |
|
| 54,777 |
Accrued liabilities |
| 140,975 |
|
| 134,355 |
Deferred revenues |
| 13,662 |
|
| 14,455 |
Other current liabilities |
| 9,842 |
|
| 13,496 |
Total Current Liabilities |
| 329,913 |
|
| 308,489 |
Long-term debt, net of current portion |
| 1,304,628 |
|
| 1,014,222 |
Deferred income taxes |
| 301,115 |
|
| 222,647 |
Other liabilities |
| 8,127 |
|
| 13,315 |
Equity: |
|
|
|
|
|
Common stock (par value $.01 per share, 120,000,000
shares authorized, 85,196,102 issued and outstanding
in 2011 and 85,242,387 issued and outstanding in 2010) |
| 852 |
|
| 852 |
Additional paid-in capital |
| 26,721 |
|
| 46,945 |
Accumulated other comprehensive income |
| (32,870) |
|
| (16,869) |
Retained earnings |
| 1,187,960 |
|
| 1,017,497 |
Total Stericycle, Inc.’s Equity |
| 1,182,663 |
|
| 1,048,425 |
Noncontrolling interest |
| 29,062 |
|
| 31,925 |
Total Equity |
| 1,211,725 |
|
| 1,080,350 |
Total Liabilities and Equity | $ | 3,155,508 |
| $ | 2,639,023 |
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
In thousands, except share and per share data | |||||||||||
| Nine Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
| 2011 |
| 2010 |
| 2011 |
| 2010 | ||||
| $ | % of Rev |
| $ | % of Rev |
| $ | % of Rev |
| $ | % of Rev |
Revenues | 420,924 | 100.0 |
| 362,988 | 100.0 |
| 1,229,491 | 100.0 |
| 1,045,899 | 100.0 |
Cost of revenues | 230,869 | 54.8 |
| 194,705 | 53.6 |
| 670,211 | 54.5 |
| 559,608 | 53.5 |
Restructuring costs | - | 0.0 |
| 185 | 0.1 |
| 54 | 0.0 |
| 1,339 | 0.1 |
Gross profit | 190,055 | 45.2 |
| 168,098 | 46.3 |
| 559,226 | 45.5 |
| 484,952 | 46.4 |
Selling, general and administrative expenses | 74,856 | 17.8 |
| 66,829 | 18.4 |
| 221,262 | 18.0 |
| 195,942 | 18.7 |
Amortization | 4,209 | 1.0 |
| 2,518 | 0.7 |
| 11,102 | 0.9 |
| 6,652 | 0.6 |
Total SG&A expense and amortization | 79,065 | 18.8 |
| 69,347 | 19.1 |
| 232,364 | 18.9 |
| 202,594 | 19.4 |
Income from operations before acquisition, integration, and other expenses | 110,990 | 26.4 |
| 98,751 | 27.2 |
| 326,862 | 26.6 |
| 282,358 | 27.0 |
Acquisition expenses | 3,195 | 0.8 |
| 1,891 | 0.5 |
| 12,254 | 1.0 |
| 3,247 | 0.3 |
Restructuring costs and plant closure expense | 633 | 0.2 |
| 31 | 0.0 |
| 1,032 | 0.1 |
| 1,107 | 0.1 |
Litigation settlement | 460 | 0.1 |
| - | 0.0 |
| 460 | 0.0 |
| 937 | 0.1 |
Loss/(gain) on sale of assets | 323 | 0.1 |
| - | 0.0 |
| 323 | 0.0 |
| (2,955) | -0.3 |
Integration expenses | 1,813 | 0.4 |
| 790 | 0.2 |
| 3,866 | 0.3 |
| 3,253 | 0.3 |
Income from operations | 104,566 | 24.8 |
| 96,039 | 26.5 |
| 308,927 | 25.1 |
| 276,769 | 26.5 |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income | 237 | 0.1 |
| 82 | 0.0 |
| 484 | 0.0 |
| 194 | 0.0 |
Interest expense | (12,034) | -2.9 |
| (8,509) | -2.3 |
| (36,413) | -3.0 |
| (26,342) | -2.5 |
Other (expense)/ income, net | (577) | -0.1 |
| 333 | 0.1 |
| (1,659) | -0.1 |
| (1,562) | -0.1 |
Total other expense | (12,374) | -2.9 |
| (8,094) | -2.2 |
| (37,588) | -3.1 |
| (27,710) | -2.6 |
Income before income taxes | 92,192 | 21.9 |
| 87,945 | 24.2 |
| 271,339 | 22.1 |
| 249,059 | 23.8 |
Income tax expense | 32,448 | 7.7 |
| 30,645 | 8.4 |
| 99,119 | 8.1 |
| 89,359 | 8.5 |
Net income | 59,744 | 14.2 |
| 57,300 | 15.8 |
| 172,220 | 14.0 |
| 159,700 | 15.3 |
Net income attributable to noncontrolling interests | 497 | 0.1 |
| 614 | 0.2 |
| 1,757 | 0.1 |
| 1,801 | 0.2 |
Net income attributable to Stericycle, Inc. | 59,247 | 14.1 |
| 56,686 | 15.6 |
| 170,463 | 13.9 |
| 157,899 | 15.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted | .68 |
|
| .65 |
|
| 1.95 |
|
| 1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding-diluted | 87,385,121 |
|
| 87,179,057 |
|
| 87,620,867 |
|
| 86,830,761 |
|
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
In thousands | |||||
|
| Nine Months Ended September 30, | |||
|
| 2011 |
|
| 2010 |
OPERATING ACTIVITIES: |
|
|
|
|
|
Net income | $ | 172,220 |
|
| 159,700 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Loss/ (gain) on sale of assets |
| 323 |
|
| (2,955) |
Change in fair value of contingent consideration |
| (2,140) |
|
| - |
Accelerated amortization of term loan financing fees |
| 1,241 |
|
| - |
Stock compensation expense |
| 11,563 |
|
| 11,441 |
Excess tax benefit of stock options exercised |
| (16,614) |
|
| (17,951) |
Depreciation |
| 36,885 |
|
| 31,858 |
Amortization |
| 11,102 |
|
| 6,652 |
Deferred income taxes |
| 27,685 |
|
| 20,307 |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: |
|
|
|
|
|
Accounts receivable |
| (20,288) |
|
| (26,366) |
Accounts payable |
| (11,239) |
|
| (3,477) |
Accrued liabilities |
| 16,694 |
|
| 19,214 |
Deferred revenues |
| (1,241) |
|
| 1,942 |
Other assets and liabilities |
| (11,015) |
|
| 5,061 |
Net cash provided by operating activities |
| 215,176 |
|
| 205,426 |
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
Payments for acquisitions and international investments, net of cash acquired |
| (467,430) |
|
| (95,615) |
Proceeds from/ (purchases of) short-term investments |
| 18,164 |
|
| (17,172) |
Proceeds from sale of property and equipment |
| 2,371 |
|
| 8,000 |
Capital expenditures |
| (36,981) |
|
| (35,937) |
Net cash used in investing activities |
| (483,876) |
|
| (140,724) |
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
Repayment of long-term debt |
| (17,294) |
|
| (45,292) |
Net borrowings/ (repayments) on senior credit facility |
| 269,792 |
|
| (13,072) |
Payments of deferred financing costs |
| (3,740) |
|
| (5,757) |
Payments on capital lease obligations |
| (2,703) |
|
| (2,172) |
Purchase and cancellation of treasury stock |
| (81,201) |
|
| (43,589) |
Proceeds from other issuance of common stock |
| 30,487 |
|
| 38,224 |
Excess tax benefit of stock options exercised |
| 16,614 |
|
| 17,951 |
Net cash provided by/ (used in) financing activities |
| 211,955 |
|
| (53,707) |
Effect of exchange rate changes on cash |
| 3,087 |
|
| (6,135) |
Net (decrease)/ increase in cash and cash equivalents |
| (53,658) |
|
| 4,860 |
Cash and cash equivalents at beginning of period |
| 77,053 |
|
| 15,767 |
Cash and cash equivalents at end of period | $ | 23,395 |
|
| 20,627 |
|
|
|
|
|
|
NON-CASH ACTIVITIES: |
|
|
|
|
|
Net issuance of obligations for certain acquisitions | $ | 37,464 |
|
| 32,353 |