EX-99 3 ex990308.htm FINANCIALS year end results





Exhibit 99.1


FOR FURTHER INFORMATION CONTACT:

FOR IMMEDIATE RELEASE


Frank ten Brink  847-607-2012

 

Conference call to be held April 23, 2008 at 4:00 p.m. Central time – Dial 866-238-0637 at least 5 minutes before start time. If you are unable to participate on the call, a replay will be available through May 21st by dialing 888-266-2081, access code 1212336. 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 Investor Relations page on Stericycle’s website at www.stericycle.com.


STERICYCLE, INC. REPORTS RESULTS

FOR FIRST QUARTER 2008


Lake Forest, Illinois, April 23, 2008—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the first quarter 2008.


Revenues for the quarter ended March 31, 2008 were $254.8, up 20.7% from $211.0 million in the same quarter last year. Acquisitions less than 12 months old contributed approximately $19.5 million to the growth in revenues for the quarter. Gross profit was $113.6 million, up 20.5% from $94.2 million in the same quarter last year. Gross profit as a percent of revenues was 44.6% versus 44.7% in the first quarter of 2007.


After the effect of the charge described in the table below, generally accepted accounting principles (“GAAP”) net income for the first quarter of 2008 was $31.7 million or $0.35 per diluted share compared with GAAP net income of $29.4 million or $0.32 per diluted share for the same quarter last year.  The impact of the charge described was to reduce net income by $3.3 million or $0.04 per diluted share.  Adjusted non-GAAP net income for the first quarter of 2008 (GAAP net income without including the charge described) was $35.0 million or $0.39 per diluted share.


Cash flow from operations was $63.6 million for the first three months of 2008. Cash flow and increased loan balances were used to strengthen our business and funded $79.4 million in stock repurchases (1,482,185 shares), $11.3 million in capital spending, and $7.8 million in acquisitions and international investments.













STERICYCLE, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP INFORMATION

TO NON-GAAP INFORMATION

(IN THOUSANDS EXCEPT FOR PER SHARE DATA)

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

(unaudited)

 

 

2008

 

 

2007

 

 

 

 

 

 

GAAP net income

 

 $      31,664

 

 

 $      29,387

 

 

 

 

 

 

Excluded charges, net of tax

 

 

 

 

 

Business dispute settlement (1)

 

            3,302

 

 

 -

Other (2)

 

 -

 

 

             (411)

 

 

 

 

 

 

Non-GAAP net income

 

 $      34,966

 

 

 $      28,976

 

 

 

 

 

 

GAAP earnings per share-diluted

 

 $           0.35

 

 

 $           0.32

Non-GAAP earnings per share-diluted

 

 $           0.39

 

 

 $           0.32



(1)

On April 19, 2008 we and affiliates of Daniels Sharpsmart Pty Limited elected to settle various business disputes prior to further arbitration proceedings.  Please see our Form 8-K filed on April 23, 2008 for more information.


(2)

In 2007 we recorded a gain on an asset sale, and proceeds from an insurance settlement that were partially offset by an idled equipment write down.  Please see our Form, 10-Q for the quarter ended March 31, 2007 for more information.


During the second quarter of 2007 we completed a 2-for-1 stock split. All historical per share numbers have been adjusted for the split.


USE OF NON-GAAP FINANCIAL MEASURES

Stericycle’s management believes that non-GAAP measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our core business operating results. We include these non-GAAP financial measures because we believe they are useful to investors in allowing for








greater transparency with respect to supplemental information used by management in its financial and operational decision making. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

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

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

2008

 

 

2007

 

 

(unaudited)

 

 

(audited)

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

             11,205

 

$

              17,108

Short-term investments

 

                  173

 

 

                1,256

Accounts receivable, less allowance for doubtful

 

 

 

 

 

  accounts of $6,400 in 2008 and $6,157 in 2007

 

            164,046

 

 

             157,435

Deferred tax asset

 

             12,873

 

 

              13,510

Other current assets

 

             21,436

 

 

              20,967

        Total current assets

 

            209,733

 

 

             210,276

Property, plant and equipment, net

 

            193,560

 

 

             193,039

Other assets:

 

 

 

 

 

Goodwill

 

         1,048,522

 

 

          1,033,333

Intangible assets, less accumulated amortization of

 

 

 

 

 

  $12,291 in 2008 and $12,230 in 2007

 

            155,984

 

 

             152,689

Other

 

             18,539

 

 

              18,822

  Total other assets

 

         1,223,045

 

 

          1,204,844

       Total assets

$

         1,626,338

 

$

          1,608,159

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

$

             22,423

 

$

              22,003

Accounts payable

 

             27,876

 

 

              40,049

Accrued liabilities

 

             97,676

 

 

              75,571

Deferred revenue

 

             16,240

 

 

              12,095

      Total current liabilities

 

            164,215

 

 

             149,718

Long-term debt, net of current portion

 

            649,889

 

 

             613,781

Deferred income taxes

 

            136,391

 

 

             125,041

Other liabilities

 

               4,699

 

 

                5,544

Common shareholders' equity:

 

 

 

 

 

Common stock (par value $0.01 per share, 120,000,000 shares

 

 

 

 

   authorized, 86,139,868 issued and outstanding in 2008,

 

 

 

 

 

   87,410,653 issued and outstanding in 2007)

 

                  861

 

 

                   874

Additional paid in capital

 

            124,750

 

 

             197,462

 

 


 

 


Accumulated other comprehensive income

 

             28,650

 

 

              30,520

Retained earnings

 

            516,883

 

 

             485,219

  Total shareholders' equity

 

            671,144

 

 

             714,075

       Total liabilities and shareholders' equity

$

         1,626,338

 

$

          1,608,159








STERICYCLE, INC. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

(unaudited)

 

 

 

2008

 

 

2007

 

 

 

$

% of Rev

 

 

$

% of Rev

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $    254,784

100.0%

 

 

 $    211,049

100.0%

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

       141,194

55.4%

 

 

       116,813

55.3%

 

 

 

 

 

 

 

 

 

 

Gross profit

 

       113,590

44.6%

 

 

         94,236

44.7%

 

 

 

 

 

 

 

 

 

 

Selling, general and

 

 

 

 

 

 

 

 

administrative expenses

 

         46,985

18.4%

 

 

         37,779

17.9%

 

Amortization

 

          1,052

0.4%

 

 

             868

0.4%

 

 

 

 

 

 

 

 

 

 

Total SG&A expense and amortization

 

         48,037

18.9%

 

 

         38,647

18.3%

 

 

 

 

 

 

 

 

 

 

Income from operations before

 

 

 

 

 

 

 

 

acquisition integration and other expenses

 

         65,553

25.7%

 

 

         55,589

26.3%

 

 

 

 

 

 

 

 

 

 

Gain on sale of assets

 

               -   

0.0%

 

 

(823)

-0.4%

 

Impairment of fixed assets

 

               -   

            -   

 

 

650

0.3%

 

Arbitration settlement and related costs

 

          5,352

2.1%

 

 

               -   

0.0%

 

Acquisition integration expenses

 

             713

0.3%

 

 

             313

0.1%

 

 

 

 

 

 

 

 

 

 

Income from operations

 

         59,488

23.3%

 

 

         55,449

26.3%

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest Income

 

             402

0.2%

 

 

             401

0.2%

 

Interest expense

 

         (8,128)

-3.2%

 

 

         (7,700)

-3.6%

 

 

 


 

 

 


 

 

Insurance proceeds

 

               -   

0.0%

 

 

             500

0.2%

 

Other expense, net

 

            (443)

-0.2%

 

 

            (553)

-0.3%

 

 

 

 

 

 

 

 

 

 

    Total other income (expense)

 

         (8,169)

-3.2%

 

 

         (7,352)

-3.5%

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

         51,319

20.1%

 

 

         48,097

22.8%

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

         19,655

7.7%

 

 

         18,710

8.9%

 

 

 

 

 

 

 

 

 

 

Net income

 

 $      31,664

12.4%

 

 

 $      29,387

13.9%

 

 

 

 

 

 

 

 

 

 

Earnings per share-diluted

 

 $         0.35

 

 

 

 $         0.32

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of

 

 

 

 

 

 

 

 

common shares outstanding-diluted

 

  89,393,242

 

 

 

  90,436,694

 

 










STERICYCLE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31,

 

 

2008

 

 

2007

 

 

(unaudited)

 

 

(unaudited)

Operating Activities:

 

 

 

 

 

Net income

 

 $            31,664

 

 

 $         29,387

Adjustments to reconcile net income to net cash

 

 

 

 

 

   provided by operating activities:

 

 

 

 

 

Gain on sale of assets

 

                      -   

 

 

               (823)

Impairment of fixed assets

 

                      -   

 

 

                650

Write-off of note receivable related to joint venture

 

                   798

 

 

                  -   

Stock compensation expense

 

                 3,064

 

 

             2,450

Excess tax benefit of disqualifying dispositions of stock options

 

 

 

 

and exercise of non-qualified stock options

 

                     23

 

 

               (576)

Depreciation

 

                 7,293

 

 

             6,270

Amortization

 

                 1,052

 

 

                868

Deferred income taxes

 

                 8,916

 

 

             6,176

Changes in operating assets and liabilities, net of

 

 

 

 

 

  effect of acquisitions

 

 

 

 

 

Accounts receivable

 

                (2,347)

 

 

             5,420

Other assets

 

                   551

 

 

             1,316

Accounts payable

 

              (14,309)

 

 

            (1,635)

Accrued liabilities

 

               22,793

 

 

               (245)

Deferred revenue

 

                 4,104

 

 

             3,632

 

 

 

 

 

 

Net cash provided by operating activities

 

               63,602

 

 

           52,890

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

Payments for acquisitions and international

 

 

 

 

 

investments, net of cash acquired

 

                (7,776)

 

 

          (14,645)

Proceeds from maturity of short-term investments

 

                 1,078

 

 

                689

Proceeds from sale of assets

 

                      -   

 

 

           26,453

Proceeds from sale of property and equipment

 

                      -   

 

 

                  49

Capital expenditures

 

              (11,299)

 

 

          (10,300)

 

 

 

 

 

 

Net cash (used in) provided by investing activities

 

              (17,997)

 

 

             2,246

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

Repayment of long-term debt

 

                  (255)

 

 

          (16,200)

Net borrowings on senior credit facility

 

               29,326

 

 

           10,879

Principal payments on capital lease obligations

 

                    (85)

 

 

               (111)

Excess tax benefit of stock options exercised

 

                    (23)

 

 

                576

Purchase/cancellation of treasury stock

 

              (79,384)

 

 

          (46,071)

Proceeds from other issuances of common stock

 

                 2,397

 

 

             3,075

 

 

 

 

 

 

Net cash used in financing activities

 

              (48,024)

 

 

          (47,852)

Effect of exchange rate changes on cash

 

                (3,484)

 

 

            (2,682)

Net (decrease)/ increase in cash and cash equivalents

 

                (5,903)

 

 

             4,602

Cash and cash equivalents at beginning of period

 

               17,108

 

 

           13,492

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

 $            11,205

 

 

 $         18,094

Non-cash activities:

 

 

 

 

 

 

 


 

 


Net issuances of notes payable for certain acquisitions

 

 $              7,044

 

 

 $         11,854