Attached files
| file | filename |
|---|---|
| 8-K - 8-K BODY - STERICYCLE INC | bo8k1212.htm |
EXHIBIT 99.1
FOR FURTHER INFORMATION CONTACT:
FOR IMMEDIATE RELEASE
Frank ten Brink 847-607-2012
Conference call to be held February 6, 2013 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 5th by dialing 855-859-2056, access code 86463685. 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 ENDED 2012
Lake Forest, Illinois, February 6, 2013—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the fourth quarter and full year of 2012.
Revenues for the quarter ended December 31, 2012 were $503.6 million, up 12.8% from $446.6 million in the fourth quarter last year. Acquisitions contributed approximately $31.1 million to the current period’s growth in revenues. Revenues increased 13.3% compared to the prior period when adjusted for unfavorable foreign exchange impacts of $2.3 million. Gross profit was $227.0 million, up 12.6% from $201.5 million in the fourth quarter last year. Gross profit as a percent of revenue was 45.1% compared with 45.1% in the fourth quarter of 2011.
Net income attributable to Stericycle for the fourth quarter of 2012 was $70.1 million or $0.80 per diluted share compared with $64.3 million or $0.74 per diluted share for the fourth quarter of 2011. Net income attributable to Stericycle for the fourth quarters of 2012 and 2011 includes acquisition expenses, adjustments of contingent consideration to fair value, restructuring and plant closure costs, loss on the sale of business, litigation settlement expense, and other items. Excluding the effect of these items, non-GAAP earnings per diluted share were $0.88 for the current quarter (see table below). Non-GAAP earnings per diluted share increased 15.1% from non-GAAP earnings per diluted share of $0.76 in the fourth quarter of 2011.
FULL YEAR RESULTS
Revenues for the full year 2012 were $1.91 billion, up 14.1% from $1.68 billion in 2011. Acquisitions contributed approximately $140.3 million to the current year’s growth in revenues. Revenues increased 15.4% compared to the prior year when adjusted for unfavorable foreign exchange impacts of $21.8 million. Gross profit was $857.3 million, up 12.7% from $760.7 million in 2011. Gross profit as a percent of revenue was 44.8% compared with 45.4% in 2011. Earnings per diluted share increased 14.6% to $3.08 in 2012 from $2.69 in 2011. Non-GAAP earnings per diluted share, when adjusted for various items, increased 15.4% to $3.30 from $2.86 (see table below):
Table to reconcile non-GAAP EPS to GAAP EPS | |||||||||||
| Three months ended December 31, |
| Year ending December 31, | ||||||||
|
|
|
| Change |
|
|
|
| Change | ||
| 2012 | 2011 |
| $ | % |
| 2012 | 2011 |
| $ | % |
GAAP EPS | $0.80 | $0.74 |
| $0.06 | 8.2% |
| $3.08 | $2.69 |
| $0.39 | 14.6% |
Acquisition expenses/ Fair Value | 0.02 | (0.01) |
|
|
|
| 0.10 | 0.12 |
|
|
|
Restructuring/ Plant Closure | 0.01 | 0.03 |
|
|
|
| 0.04 | 0.04 |
|
|
|
Loss/ (Gain) on Sale |
|
|
|
|
|
| 0.04 | 0.00 |
|
|
|
Litigation Expense | 0.04 | 0.01 |
|
|
|
| 0.04 | 0.01 |
|
|
|
Acceleration of Term Loan Fees |
|
|
|
|
|
| 0.00 | 0.01 |
|
|
|
Non-GAAP EPS (adjusted) | $0.88 | $0.76 |
| $0.12 | 15.1% |
| $3.30 | $2.86 |
| $0.44 | 15.4% |
* 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 $387.4 million for the full year of 2012.
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, |
|
| 2012 |
|
| 2011 |
|
| (Unaudited) |
|
| (Audited) |
ASSETS |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash equivalents | $ | 31,324 |
| $ | 22,511 |
Short-term investments |
| 503 |
|
| 416 |
Accounts receivable, less allowance for doubtful accounts of $19,443 in 2012 and $18,905 in 2011 |
| 322,246 |
|
| 290,854 |
Deferred income taxes |
| 22,995 |
|
| 19,314 |
Prepaid expenses |
| 27,042 |
|
| 22,466 |
Other current assets |
| 37,176 |
|
| 35,035 |
Total Current Assets |
| 441,286 |
|
| 390,596 |
Property, Plant and Equipment, net |
| 335,870 |
|
| 293,912 |
Other Assets: |
|
|
|
|
|
Goodwill |
| 2,065,103 |
|
| 1,913,703 |
Intangible assets, less accumulated amortization of $64,215 in 2012 and $42,050 in 2011 |
| 667,471 |
|
| 546,618 |
Other |
| 37,008 |
|
| 32,261 |
Total Other Assets |
| 2,769,582 |
|
| 2,492,582 |
Total Assets | $ | 3,546,738 |
| $ | 3,177,090 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt | $ | 87,781 |
| $ | 100,526 |
Accounts payable |
| 74,225 |
|
| 66,635 |
Accrued liabilities |
| 135,321 |
|
| 140,521 |
Deferred revenues |
| 18,095 |
|
| 12,855 |
Other current liabilities |
| 15,638 |
|
| 6,377 |
Total Current Liabilities |
| 331,060 |
|
| 326,914 |
Long-term debt, net of current portion |
| 1,268,303 |
|
| 1,284,113 |
Deferred income taxes |
| 362,643 |
|
| 313,733 |
Other liabilities |
| 27,409 |
|
| 25,079 |
Equity: |
|
|
|
|
|
Common stock (par value $.01 per share, 120,000,000
authorized, 85,987,883 issued and outstanding in 2012,
and 84,696,227 issued and outstanding in 2011) |
| 860 |
|
| 847 |
Additional paid-in capital |
| 116,720 |
|
| -- |
Accumulated other comprehensive income |
| (39,064) |
|
| (45,984) |
Retained earnings |
| 1,463,277 |
|
| 1,243,303 |
Total Stericycle, Inc.’s Equity |
| 1,541,793 |
|
| 1,198,166 |
Noncontrolling interest |
| 15,530 |
|
| 29,085 |
Total Equity |
| 1,557,323 |
|
| 1,227,251 |
Total Liabilities and Equity | $ | 3,546,738 |
| $ | 3,177,090 |
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, | ||||||||
| 2012 |
| 2011 |
| 2012 |
| 2011 | ||||
| (Unaudited) |
| (Unaudited) |
| (Audited) | ||||||
| $ | % of Rev |
| $ | % of Rev |
| $ | % of Rev |
| $ | % of Rev |
Revenues | 503,638 | 100.0 |
| 446,557 | 100.0 |
| 1,913,149 | 100.0 |
| 1,676,048 | 100.0 |
Cost of revenues | 264,541 | 52.5 |
| 234,342 | 52.5 |
| 1,011,081 | 52.8 |
| 874,115 | 52.2 |
Depreciation - cost of revenues | 12,009 | 2.4 |
| 10,697 | 2.4 |
| 44,631 | 2.3 |
| 41,135 | 2.5 |
Restructuring costs | 132 | 0.0 |
| -- | 0.0 |
| 132 | 0.0 |
| 54 | 0.0 |
Gross profit | 226,956 | 45.1 |
| 201,518 | 45.1 |
| 857,305 | 44.8 |
| 760,744 | 45.4 |
Selling, general and administrative expenses | 86,496 | 17.2 |
| 76,653 | 17.2 |
| 327,131 | 17.1 |
| 291,468 | 17.4 |
Depreciation - SG&A | 2,706 | 0.5 |
| 2,195 | 0.5 |
| 9,598 | 0.5 |
| 8,642 | 0.5 |
Amortization | 6,379 | 1.3 |
| 5,167 | 1.2 |
| 22,054 | 1.2 |
| 16,269 | 1.0 |
Total SG&A expense and amortization | 95,581 | 19.0 |
| 84,015 | 18.8 |
| 358,783 | 18.8 |
| 316,379 | 18.9 |
Income from operations before acquisition, integration, and other expenses | 131,375 | 26.1 |
| 117,503 | 26.3 |
| 498,522 | 26.1 |
| 444,365 | 26.5 |
Acquisition expenses | 1,707 | 0.3 |
| 2,310 | 0.5 |
| 7,920 | 0.4 |
| 16,704 | 1.0 |
Restructuring costs and plant closure expense | 1,801 | 0.4 |
| 3,989 | 0.9 |
| 5,201 | 0.3 |
| 5,021 | 0.3 |
Litigation settlement | 6,050 | 1.2 |
| 725 | 0.2 |
| 6,050 | 0.3 |
| 1,185 | 0.1 |
Loss/(gain) on sale of assets | -- | 0.0 |
| (304) | -0.1 |
| 4,867 | 0.3 |
| 19 | 0.0 |
Change in fair value of contingent consideration | 161 | 0.0 |
| (5,081) | -1.1 |
| 752 | 0.0 |
| (7,221) | -0.4 |
Integration expenses | 1,356 | 0.3 |
| 480 | 0.1 |
| 4,896 | 0.3 |
| 4,346 | 0.3 |
Income from operations | 120,300 | 23.9 |
| 115,384 | 25.8 |
| 468,836 | 24.5 |
| 424,311 | 25.3 |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income | 71 | 0.0 |
| 315 | 0.1 |
| 404 | 0.0 |
| 799 | 0.0 |
Interest expense | (13,077) | -2.6 |
| (13,018) | -2.9 |
| (51,674) | -2.7 |
| (49,431) | -2.9 |
Other expense, net | 187 | 0.0 |
| (1,696) | -0.4 |
| (369) | 0.0 |
| (3,355) | -0.2 |
Total other income (expense) | (12,819) | -2.5 |
| (14,399) | -3.2 |
| (51,639) | -2.7 |
| (51,987) | -3.1 |
Income before income taxes | 107,481 | 21.3 |
| 100,985 | 22.6 |
| 417,197 | 21.8 |
| 372,324 | 22.2 |
Income tax expense | 36,973 | 7.3 |
| 35,862 | 8.0 |
| 147,256 | 7.7 |
| 134,981 | 8.1 |
Net income | 70,508 | 14.0 |
| 65,123 | 14.6 |
| 269,941 | 14.1 |
| 237,343 | 14.2 |
Less: net income attributable to noncontrolling interests | 439 | 0.1 |
| 835 | 0.2 |
| 1,945 | 0.1 |
| 2,592 | 0.2 |
Net income attributable to Stericycle, Inc. | 70,069 | 13.9 |
| 64,288 | 14.4 |
| 267,996 | 14.0 |
| 234,751 | 14.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted | 0.80 |
|
| 0.74 |
|
| 3.08 |
|
| 2.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding-diluted | 87,281,680 |
|
| 86,635,383 |
|
| 87,018,473 |
|
| 87,367,712 |
|
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS