Attached files
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| 8-K - 8K BODY - STERICYCLE INC | bo8k1211.htm |
EXHIBIT 99.1
FOR FURTHER INFORMATION CONTACT:
FOR IMMEDIATE RELEASE
Frank ten Brink 847-607-2012
Conference call to be held February 2, 2012 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 March 2nd, 2012 by dialing 855-859-2056, access code 40180757. 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 FOURTH QUARTER AND FULL YEAR 2011
Lake Forest, Illinois, February 2, 2012—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the fourth quarter and full year of 2011.
Revenues for the quarter ended December 31, 2011 were $446.6 million, up 13.5% from $393.5 million from the fourth quarter last year. Acquisitions less than 12 months old contributed approximately $48.9 million to the growth in revenues. The impact on revenues from foreign exchange in the quarter was $2.5 million unfavorable. Gross profit was $201.5 million, up 10.4% from $182.5 million in the fourth quarter last year. Gross profit as a percent of revenue was 45.1% compared with 46.4% in the fourth quarter of 2010.
Net income attributable to Stericycle for the fourth quarter of 2011 was $64.3 million or $0.74 per diluted share compared with $50.0 million or $0.57 per diluted share for the fourth quarter of 2010. Net income attributable to Stericycle for the fourth quarter of 2011 and fourth quarter of 2010 includes acquisition expenses, restructuring costs, and other items. Excluding the effects of these items, non-GAAP earnings per diluted share were $0.76 for the fourth quarter of 2011 (see table below). Our non-GAAP earnings per diluted share increased 11.0% from our non-GAAP earnings per diluted share of $0.69 in the fourth quarter of 2010.
FULL YEAR RESULTS
For the year ended December 31, 2011, revenues were $1.676 billion, up 16.4% from $1.439 billion last year. Acquisitions less than 12 months old contributed approximately $158.2 million to the growth in revenues. The impact on revenues from foreign exchange for the full year was $11.2 million favorable. Gross profit was $760.7 million, up 14.0% from $667.4 million in 2010. Gross profit as a percent of revenue was 45.4% compared with 46.4% in 2010. Earnings per diluted share increased to $2.69 in 2011 from $2.39 in 2010. Non-GAAP earnings per diluted share, when adjusted for various items, increased to $2.85 in 2011 from $2.52 in 2010, a 13.1% increase (see table below):
Table to reconcile non-GAAP EPS to GAAP EPS | |||||||||||
| Three months ended December 31, |
| Years ending December 31, | ||||||||
|
|
|
| Change |
|
|
|
| Change | ||
| 2011 | 2010 |
| $ | % |
| 2011 | 2010 |
| $ | % |
GAAP EPS | $0.74 | $0.57 |
| $0.17 | 29.6% |
| $2.69 | $2.39 |
| $0.30 | 12.4% |
Acquisition expenses | (0.01) | 0.07 |
|
|
|
| 0.12 | 0.10 |
|
|
|
Restructuring Costs/Other | (0.01) | 0.04 |
|
|
|
| 0.04 | 0.03 |
|
|
|
Non-GAAP EPS (adjusted) | $0.76 | $0.69 |
| $0.08 | 11.0% |
| $2.85 | $2.52 |
| $0.33 | 13.1% |
* 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 $306.1 million for the full year of 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 | |||||
|
| December 31, |
|
| December 31, |
|
| 2011 |
|
| 2010 |
|
| (Unaudited) |
|
| (Audited) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents | $ | 22,511 |
| $ | 79,276 |
Short-term investments |
| 416 |
|
| 16,248 |
Accounts receivable, less allowance for doubtful accounts of $18,905 in 2011 and $10,845 in 2010 |
| 290,854 |
|
| 214,899 |
Deferred income taxes |
| 19,314 |
|
| 16,824 |
Prepaid expenses |
| 22,466 |
|
| 16,038 |
Other current assets |
| 35,035 |
|
| 25,403 |
Total Current Assets |
| 390,596 |
|
| 368,688 |
Property, Plant and Equipment, net |
| 293,912 |
|
| 267,971 |
Other Assets: |
|
|
|
|
|
Goodwill |
| 1,913,703 |
|
| 1,595,764 |
Intangible assets, less accumulated amortization of $42,050 in 2011 and $28,394 in 2010 |
| 546,618 |
|
| 375,174 |
Other |
| 32,261 |
|
| 31,426 |
Total Other Assets |
| 2,492,582 |
|
| 2,002,364 |
Total Assets | $ | 3,177,090 |
| $ | 2,639,023 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
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Current liabilities: |
|
|
|
|
|
Current portion of long-term debt | $ | 100,526 |
| $ | 91,406 |
Accounts payable |
| 66,635 |
|
| 54,777 |
Accrued liabilities |
| 150,619 |
|
| 134,355 |
Deferred revenues |
| 12,855 |
|
| 14,455 |
Other current liabilities |
| 6,377 |
|
| 13,496 |
Total Current Liabilities |
| 337,012 |
|
| 308,489 |
Long-term debt, net of current portion |
| 1,284,113 |
|
| 1,014,222 |
Deferred income taxes |
| 313,733 |
|
| 222,647 |
Other liabilities |
| 14,981 |
|
| 13,315 |
Equity: |
|
|
|
|
|
Common stock (par value $.01 per share, 120,000,000
authorized, 84,696,227 issued and outstanding in 2011,
and 85,242,387 issued and outstanding in 2010) |
| 847 |
|
| 852 |
Additional paid-in capital |
| -- |
|
| 46,945 |
Accumulated other comprehensive income |
| (45,984) |
|
| (16,869) |
Retained earnings |
| 1,243,303 |
|
| 1,017,497 |
Total Stericycle, Inc.’s Equity |
| 1,198,166 |
|
| 1,048,425 |
Noncontrolling interest |
| 29,085 |
|
| 31,925 |
Total Equity |
| 1,227,251 |
|
| 1,080,350 |
Total Liabilities and Equity | $ | 3,177,090 |
| $ | 2,639,023 |
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
In thousands, except share and per share data | |||||||||||
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||
| 2011 |
| 2010 |
| 2011 |
| 2010 | ||||
| (Unaudited) |
| (Unaudited) |
| (Audited) | ||||||
| $ | % of Rev |
| $ | % of Rev |
| $ | % of Rev |
| $ | % of Rev |
Revenues | 446,557 | 100.0 |
| 393,489 | 100.0 |
| 1,676,048 | 100.0 |
| 1,439,388 | 100.0 |
Cost of revenues | 234,342 | 52.5 |
| 200,791 | 51.0 |
| 874,115 | 52.2 |
| 733,416 | 51.0 |
Depreciation - cost of revenues | 10,697 | 2.4 |
| 10,042 | 2.6 |
| 41,135 | 2.5 |
| 37,025 | 2.6 |
Restructuring costs | -- | 0.0 |
| 181 | 0.0 |
| 54 | 0.0 |
| 1,520 | 0.1 |
Gross profit | 201,518 | 45.1 |
| 182,475 | 46.4 |
| 760,744 | 45.4 |
| 667,427 | 46.4 |
Selling, general and administrative expenses | 76,962 | 17.2 |
| 70,353 | 17.9 |
| 291,777 | 17.4 |
| 261,460 | 18.2 |
Depreciation - SG&A | 2,195 | 0.5 |
| 2,066 | 0.5 |
| 8,642 | 0.5 |
| 6,941 | 0.5 |
Amortization | 5,167 | 1.2 |
| 3,267 | 0.8 |
| 16,269 | 1.0 |
| 9,919 | 0.7 |
Total SG&A expense and amortization | 84,324 | 18.9 |
| 75,686 | 19.2 |
| 316,688 | 18.9 |
| 278,320 | 19.3 |
Income from operations before acquisition, integration, and other expenses | 117,194 | 26.2 |
| 106,789 | 27.1 |
| 444,056 | 26.5 |
| 389,107 | 27.0 |
Acquisition expenses | (2,771) | -0.6 |
| 6,272 | 1.6 |
| 9,483 | 0.6 |
| 9,519 | 0.7 |
Restructuring costs and plant closure expense | 3,680 | 0.8 |
| 5,744 | 1.5 |
| 4,712 | 0.3 |
| 6,851 | 0.5 |
Litigation settlement | 725 | 0.2 |
| - | 0.0 |
| 1,185 | 0.1 |
| 897 | 0.1 |
Loss/(gain) on sale of assets | (340) | -0.1 |
| - | 0.0 |
| 19 | 0.0 |
| (2,955) | -0.2 |
Integration expenses | 480 | 0.1 |
| 859 | 0.2 |
| 4,346 | 0.3 |
| 4,112 | 0.3 |
Income from operations | 115,384 | 25.8 |
| 93,914 | 23.9 |
| 424,311 | 25.3 |
| 370,683 | 25.8 |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income | 315 | 0.1 |
| 72 | 0.0 |
| 799 | 0.0 |
| 266 | 0.0 |
Interest expense | (13,018) | -2.9 |
| (10,739) | -2.7 |
| (49,431) | -2.9 |
| (37,081) | -2.6 |
Other expense, net | (1,696) | -0.4 |
| (453) | -0.1 |
| (3,355) | -0.2 |
| (2,015) | -0.1 |
Total other income (expense) | (14,399) | -3.2 |
| (11,120) | -2.8 |
| (51,987) | -3.1 |
| (38,830) | -2.7 |
Income before income taxes | 100,985 | 22.6 |
| 82,794 | 21.0 |
| 372,324 | 22.2 |
| 331,853 | 23.1 |
Income tax expense | 35,862 | 8.0 |
| 32,037 | 8.1 |
| 134,981 | 8.1 |
| 121,396 | 8.4 |
Net income | 65,123 | 14.6 |
| 50,757 | 12.9 |
| 237,751 | 14.2 |
| 210,457 | 14.6 |
Less: net income attributable to noncontrolling interests | 835 | 0.2 |
| 777 | 0.2 |
| 2,592 | 0.2 |
| 2,578 | 0.2 |
Net income attributable to Stericycle, Inc. | 64,288 | 14.4 |
| 49,980 | 12.7 |
| 234,751 | 14.0 |
| 207,879 | 14.4 |
|
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Earnings per share-diluted | 0.74 |
|
| 0.57 |
|
| 2.69 |
|
| 2.39 |
|
|
|
|
|
|
|
|
|
|
|
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Weighted average number of common shares outstanding-diluted | 86,635,383 |
|
| 87,279,853 |
|
| 87,367,712 |
|
| 86,962,651 |
|
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS