Stericycle Inc : Stericycle, Inc. Reports Results for First Quarter 2012
04/25/2012| 04:05pm US/Eastern
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Stericycle, Inc. (NASDAQ:SRCL), today reported financial results
for the first quarter of 2012.
Revenues for the quarter ended March 31, 2012 were $460.1 million, up
15.6% from $398.1 million from the first quarter last year. Acquisitions
contributed approximately $41.0 million to the current period growth in
revenues compared with last year in the period. The impact on revenues
from foreign exchange in the quarter was $3.3 million unfavorable. Gross
profit was $205.3 million, up 12.5% from $182.4 million in the first
quarter last year. Gross profit as a percent of revenue was 44.6%
compared with 45.8% in the first quarter of 2011.
Net income attributable to Stericycle for the first quarter of 2012 was
$64.9 million or $0.75 per diluted share compared with $55.7 million or
$0.64 per diluted share for the first quarter of 2011. Net income
attributable to Stericycle for the first quarter of 2012 and first
quarter of 2011 includes acquisition expenses, adjustments of contingent
consideration to fair value, and other items. Excluding the effects of
these items, non-GAAP earnings per diluted share were $0.78 for the
quarter (see table below). Our non-GAAP earnings per diluted share
increased 12.9% from our non-GAAP earnings per diluted share of $0.69 in
the first quarter of 2011.
Table to reconcile GAAP EPS to non-GAAP EPS:
Three months ended March 31,
2012
2011
Change $
Change %
GAAP EPS
$
0.75
$
0.64
$
0.11
17.8
%
Acquisition Expenses
0.02
0.07
Change in Fair Value/Other
0.01
(0.02
)
Non-GAAP EPS (adjusted)
$
0.78
$
0.69
$
0.09
12.9
%
* 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 $99.6 million and $65.6 million for the
three months ended March 31, 2012 and 2011, respectively.
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.
Conference call to be held April 25, 2012 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 May 25th,
2012 by dialing 855-859-2056, access code 69060742. 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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)
Three Months Ended
March 31,
2012
2011
(unaudited)
$
% of Rev
$
% of Rev
Revenues
$
460,077
100.0
%
$
398,126
100.0
%
Cost of revenues
244,182
53.1
%
205,816
51.7
%
Depreciation - cost of revenues
10,588
2.3
%
9,818
2.5
%
Restructuring costs
-
0.0
%
62
0.0
%
Gross profit
205,307
44.6
%
182,430
45.8
%
Selling, general and administrative expenses
77,807
16.9
%
69,972
17.6
%
Depreciation - SG&A
2,151
0.5
%
1,938
0.5
%
Amortization
4,979
1.1
%
3,347
0.8
%
Total SG&A expense and amortization
84,937
18.5
%
75,257
18.9
%
Income from operations before
acquisition, integration, and other expenses
120,370
26.2
%
107,173
26.9
%
Acquisition expenses
1,539
0.3
%
5,938
1.5
%
Change in fair value of contingent consideration
1,204
0.3
%
(2,140
)
-0.5
%
Restructuring costs and plant closure expense
86
0.0
%
196
0.0
%
Integration expenses
1,279
0.3
%
766
0.2
%
Income from operations
116,262
25.3
%
102,413
25.7
%
Other income (expense):
Interest income
92
0.0
%
184
0.0
%
Interest expense
(12,766
)
-2.8
%
(11,372
)
-2.9
%
Other expense, net
(558
)
-0.1
%
(263
)
-0.1
%
Total other income (expense)
(13,232
)
-2.9
%
(11,451
)
-2.9
%
Income before income taxes
103,030
22.4
%
90,962
22.8
%
Income tax expense
37,715
8.2
%
34,376
8.6
%
Net income
65,315
14.2
%
56,586
14.2
%
Less: net income attributable to
noncontrolling interests
458
0.1
%
912
0.2
%
Net income attributable to Stericycle, Inc.
$
64,857
14.1
%
$
55,674
14.0
%
Earnings per share-diluted
$
0.75
$
0.64
Weighted average number of
common shares outstanding-diluted
86,587,944
87,526,683
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)
March 31,
December 31,
2012
2011
(unaudited)
(audited)
ASSETS
Current Assets:
Cash and cash equivalents
$
30,262
$
22,511
Short-term investments
420
416
Accounts receivable, less allowance for doubtful
accounts of $19,395 in 2012 and $18,905 in 2011
315,144
290,854
Deferred income taxes
19,055
19,314
Prepaid expenses
23,151
22,466
Other current assets
39,046
35,035
Total Current Assets
427,078
390,596
Property, plant and equipment, net
301,274
293,912
Goodwill
1,924,240
1,913,703
Intangible assets, less accumulated amortization of
$47,582 in 2012 and $42,050 in 2011
582,467
546,618
Other
40,175
32,261
Total Assets
$
3,275,234
$
3,177,090
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt
$
91,038
$
100,526
Accounts payable
71,806
66,635
Accrued liabilities
146,333
140,521
Deferred revenues
13,941
12,855
Other current liabilities
10,699
6,377
Total Current Liabilities
333,817
326,914
Long-term debt, net of current portion
1,250,769
1,284,113
Deferred income taxes
335,913
313,733
Other liabilities
26,997
25,079
Equity:
Common stock (par value $0.01 per share, 120,000,000 shares
authorized, 84,994,111 issued and outstanding in 2012,
and 84,696,227 issued and outstanding in 2011)
850
847
Additional paid-in capital
22,798
-
Accumulated other comprehensive loss
(29,538
)
(45,984
)
Retained earnings
1,305,215
1,243,303
Total Stericycle, Inc. Equity
1,299,325
1,198,166
Noncontrolling interest
28,413
29,085
Total Equity
1,327,738
1,227,251
Total Liabilities and Equity
$
3,275,234
$
3,177,090
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Three Months Ended March 31,
2012
2011
(unaudited)
(unaudited)
Operating Activities:
Net income
$
65,315
$
56,586
Adjustments to reconcile net income to net cash
provided by operating activities:
Change in fair value of contingent consideration
1,204
(2,140
)
Stock compensation expense
4,085
3,863
Excess tax benefit of stock options exercised
(5,061
)
(8,092
)
Depreciation
12,739
11,756
Amortization
4,979
3,347
Deferred income taxes
11,921
16,051
Changes in operating assets and liabilities, net of
effect of acquisitions and divestitures:
Accounts receivable
(14,493
)
(11,615
)
Accounts payable
2,101
(433
)
Accrued liabilities
12,623
799
Deferred revenue
1,029
(34
)
Other assets and liabilities
3,119
(4,503
)
Net cash provided by operating activities
99,561
65,585
Investing Activities:
Payments for acquisitions, net of cash acquired
(28,182
)
(19,543
)
Purchases of short-term investments
(2
)
(1,240
)
Proceeds from sale of businesses and other assets
-
389
Capital expenditures
(17,049
)
(11,692
)
Net cash used in investing activities
(45,233
)
(32,086
)
Financing Activities:
Net repayments of long-term debt and other obligations
(8,571
)
(24,100
)
Net repayments on senior credit facility
(52,856
)
(86,044
)
Payments on capital lease obligations
(640
)
(463
)
Purchase and cancellation of treasury stock
(2,945
)
-
Proceeds from other issuances of common stock
12,494
14,811
Excess tax benefit of stock options exercised
5,061
8,092
Net cash used in financing activities
(47,457
)
(87,704
)
Effect of exchange rate changes on cash
880
1,808
Net increase / (decrease) in cash and cash equivalents
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