Stericycle, Inc. Reports Results for the Second Quarter and Year to Date 2013

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Stericycle, Inc. Reports Results for the Second Quarter and Year to Date 2013

LAKE FOREST, Ill.--(BUSINESS WIRE)-- Stericycle, Inc. (Nasdaq: SRCL), today reported financial results for the second quarter of 2013.

SECOND QUARTER RESULTS


Revenues for the quarter ended June 30, 2013 were $526.5 million, up $57.6 million or 12.3% from $468.9 million in the second quarter last year. Acquisitions contributed approximately $34.1 million to the current period's growth in revenues. Revenues increased 13.1% compared to the prior period when adjusted for unfavorable foreign exchange impact of $4.1 million. Gross profit was $237.9 million, up 13.5% from $209.5 million in the second quarter last year. Gross profit as a percent of revenue was 45.2% compared with 44.7% in the second quarter of 2012. Earnings per diluted share, reported in accordance with U.S. generally accepted accounting principles ("GAAP"), increased 14.4% to $0.89 from $0.78 in the second quarter last year. Non-GAAP earnings per diluted share, when adjusted for various items identified in the second of the following tables, increased 14.2% to $0.93 from $0.81. See tables below.

FIRST SIX MONTHS' RESULTS

Revenues for the six months ending June 30, 2013 were $1,040.3 million, up $111.3 million or 12.0% from $929.0 million in the same period last year. Revenues increased 12.9% compared with the prior period when adjusted for unfavorable foreign exchange impact of $8.3 million. Gross profit was $469.9 million, up 13.3% from $414.8 million in the same period last year. Gross profit as a percent of revenue was 45.2% compared with 44.6% in 2012. GAAP earnings per diluted share increased 14.2% to $1.74 from $1.53 in the same period last year. Non-GAAP earnings per diluted share, when adjusted for various items identified in the second of the following tables, increased 12.8% to $1.81 from $1.60. See tables below.

The following table shows our calculations of organic revenue growth (in millions)(1):

 Three Months Ended June 30, Six Months Ended June 30,
ChangeChange
 2013  2012 $ % 2013  2012 $ %
Total As Reported Revenues (GAAP)$526.5$468.9$57.612.3%$1,040.3$929.0$111.312.0%
Adjustment for Foreign Exchange 4.1  -  4.1 

 

 8.3  -  8.3 
Subtotal (non-GAAP):530.6468.961.713.1%1,048.6929.0119.612.9%
 
Adjustment for Acquisitions(37.7)(3.6)(34.1)(75.3)(4.2)(71.1)
Adjustment for Regulated Returns and

Recall Management Services

 (23.7) (29.0) 5.3  (46.3) (64.7) 18.4 
Subtotal (non-GAAP):$469.2$436.3$32.97.5%$927.0$860.1$66.97.8%
 
Domestic/ International Breakdown:
Domestic Revenues$370.2$337.8$32.49.6%$733.8$667.0$66.810.0%
International Revenues 156.3  131.1  25.2 19.2% 306.5  262.0  44.5 17.0%
Total As Reported Revenues (GAAP)$526.5 $468.9 $57.6 12.3%$1,040.3 $929.0 $111.3 12.0%

(1) For internal purposes, we exclude the impact of foreign exchange and revenues attributed to acquisitions closed within the preceding 12 months and from our regulated returns and recall management services when we evaluate organic revenue growth. This table and the Company's internal use of non-GAAP adjusted revenues are not intended to imply, and should not be interpreted as implying, that non-GAAP adjusted revenues are a better measure of internal growth or the Company's performance, as compared to GAAP revenues.

Table to reconcile GAAP EPS to Non-GAAP EPS(2):

 
 Three Months Ended June 30, Six Months Ended June 30,
Change Change
   2013  2012 $ % 2013  2012 $ %
GAAP EPS$0.89$0.78$0.11 14.4%$1.74$1.53$0.22 14.2%
 
Acquisition Expenses0.030.030.050.04
Integration Expenses0.010.010.020.02
Change in Fair Value(0.00)(0.01)(0.00)0.01
Restructuring and Plant Closure0.000.010.000.01
Litigation Settlement(0.00)-0.00-
 
Non-GAAP EPS (Adjusted)$0.93$0.81$0.1114.2%$1.81$1.60$0.2112.8%

(2) In accordance with GAAP, reported earnings per share (EPS) 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 $176.5 million and $188.8 million for the six months ended June 30, 2013 and 2012, 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 July 24, 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 August 24th by dialing 855-859-2056, access code 86466843. 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 BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
 
June 30,December 31,
20132012
ASSETS
Current Assets:
Cash and cash equivalents$18,001$31,324
Short-term investments460503
Accounts receivable, net361,894322,246
Deferred income taxes19,99822,995
Prepaid expenses27,69127,042
Other current assets39,721 37,176 
Total Current Assets467,765441,286
Property, plant and equipment, net345,743335,870
Goodwill2,094,4592,065,103
Intangible assets, net673,222667,471
Other assets37,236 37,008 
Total Assets$3,618,425 $3,546,738 
 
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt$72,430$87,781
Accounts payable88,42074,225
Accrued liabilities122,430135,321
Deferred revenues18,18318,095
Other current liabilities12,497 15,638 
Total Current Liabilities313,960331,060
Long-term debt, net of current portion1,246,2031,268,303
Deferred income taxes371,467359,780
Other liabilities37,35230,272
Equity:
Common stock859860
Additional paid-in capital159,961116,720
Accumulated other comprehensive loss(78,564)(39,064)
Retained earnings1,549,769 1,463,277 
Total Stericycle, Inc. Equity1,632,0251,541,793
Noncontrolling interests17,418 15,530 
Total Equity1,649,443 1,557,323 
Total Liabilities and Equity$3,618,425 $3,546,738 
 
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT SHARES AND PER SHARE DATA)
(UNAUDITED)
   
Three Months EndedSix Months Ended
June 30,June 30,
2013201220132012
$ % of Rev$ % of Rev$ % of Rev$ % of Rev
 
Revenues$526,525100.0%$468,950100.0%$1,040,329100.0%$929,027100.0%
 
Cost of revenues (exclusive of depreciation shown below)276,38552.5%248,83253.1%546,05852.5%493,01453.1%
Depreciation - cost of revenues12,288 2.3%10,630 2.3%24,325 2.3%21,218 2.3%
 
Gross profit237,85245.2%209,48844.7%469,94645.2%414,79544.6%
 
Selling, general and administrative expenses
(exclusive of depreciation and amortization below)91,15817.3%80,652 Read Full Story

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