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 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 May 24th by dialing 855-859-2056, access code 86466151. 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 THE FIRST QUARTER 2013


Lake Forest, Illinois, April 24, 2013—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the first quarter of 2013.


Revenues for the quarter ended March 31, 2013 were $513.8 million, up 11.7% from $460.1 million in the first quarter last year.  Acquisitions contributed approximately $37.1 million to the current period’s growth in revenues.  Revenues increased 12.6% compared to the prior period when adjusted for unfavorable foreign exchange impacts of $4.2 million.  Gross profit was $232.1 million, up 13.0% from $205.3 million in the first quarter last year.  Gross profit as a percent of revenue was 45.2% compared with 44.6% in the first quarter of 2012.


The following table shows our revenues reported in accordance with U.S. generally accepted accounting principles (GAAP) after adjustments for unfavorable foreign exchange and to exclude revenues in the period from acquisitions that closed within the preceding 12 months and our regulated recall and returns management services:    


Organic Revenue Growth* (in millions)

 

Three months ended March 31,

 

 

 

 

Change

 

2013

2012

 

$

$

Domestic Revenues

$363.6

$329.2

 

$34.4

10.5%

International Revenues

150.2

130.9

 

19.3

14.7%

Total Revenues (GAAP)

$513.8

$460.1

 

$53.7

11.7%

Adjustment for Foreign Exchange  

4.2

0.0

 

4.2

 

Subtotal (non-GAAP)

$518.0

$460.1

 

$58.0

12.6%

Adjustment for Acquisitions

(37.7)

(0.6)

 

(37.1)

 

Adjustment for Regulated Recall and Returns Management Services

(22.5)

(35.8)

 

13.3

 

Adjusted Revenues (non-GAAP)

$457.8

$423.7

 

$34.2

8.10%


* 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 recall and returns 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.




 Net income attributable to Stericycle for the first quarter of 2013 was $74.6 million or $0.85 per diluted share compared with $64.9 million or $0.75 per diluted share for the first quarter of 2012.  Net income attributable to Stericycle for the first quarter of 2013 and 2012 includes acquisition expenses, integration costs, adjustments of contingent consideration to fair value, 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 11.5% from non-GAAP earnings per diluted share of $0.79 in the first quarter of 2012.  


Table to reconcile GAAP EPS to non-GAAP EPS*

 

Three months ended March 31,

 

 

 

 

Change

 

2013

2012

 

$

%

GAAP EPS

$0.85

$0.75

 

$0.10

13.9%

Adjustments for:

  Acquisition Expenses

0.02

0.02

 

 

 

  Integration Expenses

0.01

0.01

 

 

 

  Change in Fair Value/Other  

0.00

0.01

 

 

 

Non-GAAP EPS (adjusted)

$0.88

$0.79

 

$0.09

11.5%


* In accordance with GAAP, reported earnings per share (EPS) includes 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 $98.2 million for the three months ended March 31, 2013.


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.



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STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


In thousands, except for share and per share data

 

 

March 31,

 

 

December 31,

 

 

2013

 

 

2012

 

 

(Unaudited)

 

 

(Audited)

 ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

$

12,722

 

$

31,324

Short-term investments

 

479

 

 

503

Accounts receivable, less allowance for doubtful

  accounts of $20,204 in 2013 and $19,443 in 2012

 

342,434

 

 

322,246

Deferred income taxes

 

17,801

 

 

22,995

Prepaid expenses

 

27,033

 

 

27,042

Other current assets

 

37,486

 

 

37,176

     Total Current Assets

 

437,955

 

 

441,286

Property, Plant and Equipment, net

 

336,687

 

 

335,870

Goodwill

 

2,065,845

 

 

2,065,103

Intangible assets, less accumulated amortization of

  $68,932 in 2013 and $64,215 in 2012

 

664,682

 

 

667,471

Other assets

 

37,042

 

 

37,008

Total Assets

$

3,542,211

 

$

3,546,738

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

$

79,589

 

$

87,781

Accounts payable

 

75,894

 

 

74,225

Accrued liabilities

 

137,511

 

 

135,321

Deferred revenues

 

16,754

 

 

18,095

Other current liabilities

 

10,550

 

 

15,638

     Total Current Liabilities

 

320,298

 

 

331,060

Long-term debt, net of current portion

 

1,193,111

 

 

1,268,303

Deferred income taxes

 

365,228

 

 

359,780

Other liabilities

 

38,106

 

 

30,272

Equity:

 

 

 

 

 

Common stock (par value $.01 per share, 120,000,000

  shares authorized, 86,218,005 issued and outstanding

  in 2013 and 85,987,883 issued and outstanding in 2012)

 

862

 

 

860

Additional paid-in capital

 

140,139

 

 

116,720

Accumulated other comprehensive loss

 

(62,069)

 

 

(39,064)

Retained earnings

 

1,530,272

 

 

1,463,277

     Total Stericycle, Inc. Equity

 

1,609,204

 

 

1,541,793

Noncontrolling interest

 

16,264

 

 

15,530

     Total Equity

 

1,625,468

 

 

1,557,323

Total Liabilities and Equity

$

3,542,211

 

$

3,546,738




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STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


In thousands, except for share and per share data

 

 

Three Months Ended March 31,

 

 

2013

 

 

2012

 

 

$

 

 

% of Rev

 

 

$

 

 

% of Rev

Revenues

$

513,804

 

 

100.0

 

$

460,077

 

 

100.0

Cost of revenues (exclusive of depreciation below)

 

269,673

 

 

52.5

 

 

244,182

 

 

53.1

Depreciation – cost of revenues

 

12,037

 

 

2.3

 

 

10,588

 

 

2.3

Total cost of revenues

 

281,710

 

 

54.8

 

 

254,770

 

 

55.4

Gross profit

 

232,094

 

 

45.2

 

 

205,307

 

 

44.6

Selling, general and administrative expenses

  (exclusive of depreciation and amortization below)

 

88,241

 

 

17.2

 

 

77,807

 

 

16.9

Depreciation – SG&A

 

2,809

 

 

0.5

 

 

2,151

 

 

0.5

Amortization

 

6,642

 

 

1.3

 

 

4,979

 

 

1.1

Total SG&A expense and amortization

 

97,692

 

 

19.0

 

 

84,937

 

 

18.5

Income from operations before

   acquisitions, integration, and other expenses

 

134,402

 

 

26.2

 

 

120,370

 

 

26.2

Acquisition expenses     

 

1,803

 

 

0.4

 

 

1,539

 

 

0.3

Integration expenses     

 

896

 

 

0.2

 

 

1,279

 

 

0.3

Change in fair value of contingent consideration

 

--

 

 

0.0

 

 

1,204

 

 

0.3

Litigation Settlement     

 

106

 

 

0.0

 

 

--

 

 

0.0

Restructuring costs and plant closure expense

 

--

 

 

0.0

 

 

86

 

 

0.0

Income from operations

 

131,597

 

 

25.6

 

 

116,262

 

 

25.3

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

   Interest income

 

167

 

 

0.0

 

 

92

 

 

0.0

   Interest expense

 

(13,546)

 

 

-2.6

 

 

(12,766)

 

 

-2.8

   Other expense, net

 

(1,013)

 

 

-0.2

 

 

(558)

 

 

-0.1

Total other income (expense)

 

(14,392)

 

 

-2.8

 

 

(13,232)

 

 

-2.9

Income before income taxes

 

117,205

 

 

22.8

 

 

103,030

 

 

22.4

Income tax expense

 

41,983

 

 

8.2

 

 

37,715

 

 

8.2

Net income

 

75,222

 

 

14.6

 

 

65,315

 

 

14.2

Less: net income attributable to noncontrolling interests

 

605

 

 

0.1

 

 

458

 

 

0.1

Net income attributable to Stericycle, Inc.

$

74,617

 

 

14.5

 

$

64,857

 

 

14.1

Earnings per share – diluted

$

0.85

 

 

 

 

$

0.75

 

 

 

Weighted average number of common shares

   outstanding – diluted

 

87,459,497

 

 

 

 

 

86,587,944

 

 

 




4





STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


In thousands

 

 

Three Months Ended March 31,

 

 

2013

 

 

2012

OPERATING ACTIVITIES:

 

 

 

 

 

Net income

$

75,222

 

$

65,315

Adjustments to reconcile net income to net cash provided

  by operating activities:

 

 

 

 

 

Change in fair value of contingent consideration

 

--

 

 

1,204

Stock compensation expense

 

4,047

 

 

4,085

Excess tax benefit of stock options exercised

 

(4,203)

 

 

(5,061)

Depreciation

 

14,846

 

 

12,739

Amortization

 

6,642

 

 

4,979

Deferred income taxes

 

10,407

 

 

11,921

Changes in operating assets and liabilities, net of effect of

  acquisitions and divestitures:

 

 

 

 

 

Accounts receivable

 

(19,769)

 

 

(14,493)

Accounts payable

 

1,012

 

 

2,101

Accrued liabilities

 

6,618

 

 

12,623

Deferred revenues

 

(1,345)

 

 

1,029

Other assets and liabilities

 

4,693

 

 

3,119

Net cash provided by operating activities

 

98,170

 

 

99,561

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions, net of cash acquired

 

(18,899)

 

 

(28,182)

Proceeds from/ (purchases of) short-term investments

 

20

 

 

(2)

Capital expenditures

 

(16,480)

 

 

(17,049)

Net cash used in investing activities

 

(35,359)

 

 

(45,233)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

Net repayment of long-term debt and other obligations

 

(44,372)

 

 

(8,571)

Net repayments on senior credit facility

 

(46,551)

 

 

(52,856)

Payments on capital lease obligations

 

(837)

 

 

(640)

Purchase and cancellation of treasury stock

 

(7,623)

 

 

(2,945)

Proceeds from other issuance of common stock

 

14,378

 

 

12,494

Excess tax benefit of stock options exercised

 

4,203

 

 

5,061

Net cash used in financing activities

 

(80,802)

 

 

(47,457)

Effect of exchange rate changes on cash and cash equivalents

 

(611)

 

 

880

Net (decrease)/  increase in cash and cash equivalents

 

(18,602)

 

 

7,751

Cash and cash equivalents at beginning of period

 

31,324

 

 

22,511

Cash and cash equivalents at end of period

$

12,722

 

$

30,262

 

 

 

 

 

 

NON-CASH ACTIVITIES:

 

 

 

 

 

Net issuance of obligations for acquisitions

$

10,454

 

$

14,883




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