-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Oaq/J38/aRBH6fFQ2i07Cb6eqTbY3Kv4fbEou/hPVAM4vGaICzNA+xcRyiDpZCR+ BNyvz1dwYFtRTr8Ef6xAMQ== 0000861878-04-000016.txt : 20041027 0000861878-04-000016.hdr.sgml : 20041027 20041027162414 ACCESSION NUMBER: 0000861878-04-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040930 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041027 DATE AS OF CHANGE: 20041027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERICYCLE INC CENTRAL INDEX KEY: 0000861878 STANDARD INDUSTRIAL CLASSIFICATION: HAZARDOUS WASTE MANAGEMENT [4955] IRS NUMBER: 363640402 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21229 FILM NUMBER: 041099767 BUSINESS ADDRESS: STREET 1: 28161 NORTH KEITH DRIVE STREET 2: - CITY: LAKE FOREST STATE: IL ZIP: 60045 BUSINESS PHONE: 8473675910 MAIL ADDRESS: STREET 1: 28161 NORTH KEITH DRIVE STREET 2: - CITY: LAKE FOREST STATE: IL ZIP: 60045 8-K 1 bo8k1027.htm Q3 2004 Earnings 8K DOC

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 27, 2004


Stericycle, Inc.
(Exact name of registrant as specified in its charter)

 
Delaware
0-21229
36-3640402
 (State or Other Jurisdiction of Incorporation or Organization)
(Commission File Number)
(IRS Employer Identification Number)

28161 North Keith Drive
Lake Forest, Illinois    60045
(Address of principal executive offices including zip code)

(847) 367-5910
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Item 9.01 Financial Statement and Exhibits

On October 27, 2004 Stericycle, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2004. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated by reference.

The press release and accompanying balance sheet refer to Stericycle's total debt to capitalizaton percentage ratio. The total debt to capitalization percentage ratio is calculated by dividing total debt (numerator) by the sum of total debt, preferred stock, and shareholders' equity (denominator). We consider this leverage ratio to be a good indicator of the strength of a company's balance sheet and its ability to service its debt. Total debt to capitalization percentage is not a measure in accordance with accounting principles generally accepted in the United States. The ratio should not be considered as an alternative to net income, as an indicator of operating performance or as an alternative to cash flow as a measure of liquidity.







SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned therunto duly authorized.

  Stericycle, Inc.

  By:  /s/ Frank J.M. ten Brink
 
  Frank J.M. ten Brink
  Executive Vice President and Chief Financial Officer

Dated: October 27, 2004





EXHIBIT INDEX

Exhibit
Number

Description

Exhibit 99.1

Press Release dated October 27, 2004.







GRAPHIC 2 logo.gif begin 644 logo.gif M1TE&.#=AN``T`/<`````````50``J@``_P`D```D50`DJ@`D_P!)``!)50!) MJ@!)_P!M``!M50!MJ@!M_P"2``"250"2J@"2_P"V``"V50"VJ@"V_P#;``#; M50#;J@#;_P#_``#_50#_J@#__R0``"0`520`JB0`_R0D`"0D520DJB0D_R1) M`"1)521)JB1)_R1M`"1M521MJB1M_R22`"225222JB22_R2V`"2V522VJB2V M_R3;`"3;523;JB3;_R3_`"3_523_JB3__TD``$D`54D`JDD`_TDD`$DD54DD MJDDD_TE)`$E)54E)JDE)_TEM`$EM54EMJDEM_TF2`$F254F2JDF2_TFV`$FV M54FVJDFV_TG;`$G;54G;JDG;_TG_`$G_54G_JDG__VT``&T`56T`JFT`_VTD M`&TD56TDJFTD_VU)`&U)56U)JFU)_VUM`&UM56UMJFUM_VV2`&V256V2JFV2 M_VVV`&VV56VVJFVV_VW;`&W;56W;JFW;_VW_`&W_56W_JFW__Y(``)(`59(` MJI(`_Y(D`)(D59(DJI(D_Y))`)))59))JI))_Y)M`))M59)MJI)M_Y*2`)*2 M59*2JI*2_Y*V`)*V59*VJI*V_Y+;`)+;59+;JI+;_Y+_`)+_59+_JI+__[8` M`+8`5;8`JK8`_[8D`+8D5;8DJK8D_[9)`+9)5;9)JK9)_[9M`+9M5;9MJK9M M_[:2`+:25;:2JK:2_[:V`+:V5;:VJK:V_[;;`+;;5;;;JK;;_[;_`+;_5;;_ MJK;__]L``-L`5=L`JML`_]LD`-LD5=LDJMLD_]M)`-M)5=M)JMM)_]MM`-MM M5=MMJMMM_]N2`-N25=N2JMN2_]NV`-NV5=NVJMNV_]O;`-O;5=O;JMO;_]O_ M`-O_5=O_JMO___\``/\`5?\`JO\`__\D`/\D5?\DJO\D__])`/])5?])JO]) M__]M`/]M5?]MJO]M__^2`/^25?^2JO^2__^V`/^V5?^VJO^V___;`/_;5?_; MJO_;____`/__5?__JO___R'Y!```````+`````"X`#0`0`C_`/\)'$BPH$&" M=B)$.,BPH<.'$"-*G$BQHL6+`R,TT*@+HL:/&$.*'$FR),EM#20TV*A2(<.4 M#E)&D*#1I,V;.',2U+71`4V%&Q5&\+F0H"6-+270;."@8-"-*Z,Z<#`TYL29 M,U^NI!ESY4">45?:(1CU7]A_8!L4M!36Z]F!H3,V/JX,,W_PP+=*5+DG94FF^KG2+;O0:EV'S?H+/Q MJ'E/INQ)N&ON@KH@]11(9,F4&%!+$5C1+J`)-9`4#@[$U8`Q#>7:1O+M))1A MU9UG$&AC4>6`)@*IYF%O$>1'%%"$?4?0-YI)E!M5++5'UG,BEB9>=#+$8)X$ M.TKTV4?Y.724!`Y\$^223&*DD$\J-2GEE!@%J".56$Z)$F*417E02M@IY666 M9"ZWCUG8Z493D1DA:6!05Y8I9TFV1-&`%!QF)!2)#WVCD`P&Z2*%%+S-:6A$ M3^;V&YQLZHE5A5^JUY.;F$VTCX^(W9750%9@Q9"2`YU9T)FB2J1DJ?\H"2JH M$[W6J$1G^O\(Z&^TSHADB@1AI2EP!5WWT4HQ_81D4ZT*A15L\!"I$=4-%+TBY6*.5`#(6N1>.5=HB(K$!RV#&Q9W7(D:&&/\ULFH+Q(9B? M%7'8P>=`M@`WKTDT%2W82B5[>YU,QQYJTV,V8KD+?[0R]*M@)SJMM7$R(+SU MU^&II#+89$?W&D=EIVW&EAV31+C+_[)]*>>)M M-VXS9?8ETV!JI+'@=0-GKT8VWXRU;FXS3C962P4%<$$<`T4C9Y;;+8=//U8N MD-BZ&L1JZ%ENA7D$48MDWG4JJ4IW1*2N;G#@(J6E#>\X*1G56+=?%!3I41T] MWF^V,*1-VU.1KE'L#<'(5?14&=63359&8%]Q0GELD=@M+X'Z0*\3:"ZW;#$]Y!P_0I,Z6/:]^JUGSFHIH_K$/A>FK)]U) M#E**!)/N0,<@$ZO/0B*6&\KDABFURQ7B_^Z2/2'>!74)K.!!K(,=[4@A,04* M3D9HQ*TB#H1!-+'/KPZR)<;X*#D!NM7A8']1$H/,0AT_TB0U5Z32"O*I&]Z0A;? M=,42B5!R*KHJ3$/2$Q,,,N2//RR<$G$8@4+9[S\"X1B2`I<;3PIDA68QXQ4_ MPAL\U@5],J$)!#?RJG'=[)8AN8ROJ!>2J94G`C^;"(S,@[RA;> ?@KW1H!'-J$8W^I0&\&^CH3M2YD"J40GZDZ1R"@@`.S\_ ` end EX-99 4 ex8k1027.htm Q3 2004 Earnings 8K Exhibit 99.1

Exhibit 99.1

October 27, 2004

STERICYCLE, INC. REPORTS RESULTS
FOR THIRD QUARTER 2004
  • NET INCOME OF $21.1 MILLION FOR THE QUARTER, UP 23.0% FROM YEAR-AGO QUARTER
  • REVENUES OF $136.0 MILLION FOR THE QUARTER, UP 20.1% FROM YEAR-AGO QUARTER
  • EARNINGS PER SHARE OF $0.46 FOR THE QUARTER, UP 23.3% FROM THE YEAR-AGO QUARTER

Lake Forest, Illinois, October 27, 2004 - Stericycle, Inc. (NASDAQ:SRCL), the United States' leading provider of medical waste management and compliance services for the healthcare community, today reported financial results for the third quarter of 2004. "The third quarter was the another strong quarter for our company," said Mark Miller, Stericycle's president and chief executive officer. "Our continued focus on strategically managing our business has resulted in continued increases in revenues, operating income, and net income."

THIRD QUARTER AND YEAR-TO-DATE RESULTS
Revenues for the quarter ended September 30, 2004 were $136.0 million, up 20.1% from $113.2 million in the same quarter last year. Acquisitions less than 12 months old contributed approximately $17 million in the quarter. Gross profit was $59.2 million, up 19.5% from $49.5 million in the same quarter last year. Gross profit as a percent of revenues was 43.5% versus 43.7% in the third quarter of 2003.

Net income for the third quarter of 2004 rose 23.0% to $21.1 million, up from $17.2 million in the third quarter of 2003.

Earnings per diluted share for the third quarter of 2004 were $0.46, up 23.3% from $0.37 in the third quarter of 2003. Weighted shares outstanding used to determine earnings per diluted share were 46,299,925 for the third quarter of 2004 and 46,285,456 for the third quarter of 2003.

For the nine months ended September 30, 2004, revenues increased to $377.3 million, up 11.4% from $338.7 million in the same period a year ago. Gross profit was $167.7 million, up 15.2% from $145.5 million in the same period a year ago. Gross profit as a percent of revenues increased to 44.4% for the nine months ended September 30, 2004 from 43.0% for the same period in 2003. As reported earnings per share increased 24.0% to $1.28 from $1.03 per diluted share in the same period a year ago.

Our total debt to capitalization percentage ratio at September 30, 2004 was 28.6% versus 28.1% at December 31, 2003.

Miller said, "During the quarter we continued to execute our proven business model, generating strong sales growth and record income from operations. The cash flow from operations of $82.9 million generated from operations for the first nine months of the year was used to fund $68.2 million in acquisitions and strengthen the core business."

Stericycle provides medical waste collection, transportation, treatment and disposal services and safety and compliance programs. For more information, 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 Stericycle's 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 difficulties in completing the integration of acquired businesses, changes in governmental regulation of medical waste collection and treatment, and increases in transportation and other operating costs, as well as the various other factors identified 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. The Company makes no commitment to disclose any subsequent revisions to forward-looking statements.



Stericycle Financial Statements for Third Quarter 2004





STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

 
                                                                                

                                                           September 30, December 31,
                                                               2004          2003
                                                           ------------  ------------
                                                            (unaudited)
                         ASSETS                                                      
Current assets:
  Cash and cash equivalents.............................. $      8,955  $      7,240
  Short-term investments.................................        1,658           641
  Accounts receivable, less allowance for doubtful
    accounts of $4,579 in 2004 and $4,149 in 2003........       77,000        59,711
  Parts and supplies.....................................        3,910         3,244
  Prepaid expenses.......................................        6,013         7,339
  Notes receivable.......................................        3,423         2,223
  Deferred tax asset.....................................       12,908        12,345
  Other current assets...................................        5,817         4,994
                                                           ------------  ------------
         Total current assets............................      119,684        97,737
                                                           ------------  ------------
Property, plant and equipment, net.......................      128,877        96,562
Other assets:

  Goodwill,net...........................................      527,003       464,946
  Intangible assets, less accumulated amortization of
    $7,288 in 2004 and $5,459 in 2003....................       34,493        31,642
  Notes receivable.......................................        9,517         7,717
  Other..................................................        8,269         8,858
                                                           ------------  ------------
         Total other assets..............................      579,282       513,163
                                                           ------------  ------------
   Total assets.......................................... $    827,843  $    707,462
                                                           ============  ============
                                                                                     
          LIABILITIES AND SHAREHOLDERS' EQUITY                                       
Current liabilities:
  Current portion of long-term debt...................... $      7,968  $      4,830
  Accounts payable.......................................       19,217        15,741
  Accrued liabilities....................................       47,696        43,436
  Deferred revenue.......................................        9,247         4,987
                                                           ------------  ------------
         Total current liabilities.......................       84,128        68,994
                                                           ------------  ------------
Long-term debt, net of current portion...................      189,668       163,016
Deferred income taxes....................................       54,900        42,277
Other liabilities........................................        5,698         4,411
Redeemable preferred stock:
  Series A convertible preferred stock (par value $.01
  share, 75,000 shares authorized, 22,799 outstanding
  2003, liquidation preference of $24,814 at
  December 31, 2003).....................................           --        20,944
Common shareholders' equity:
  Common stock (par value $.01 per share, 80,000,000
  shares authorized, 45,146,868 issued and outstanding
  in 2003, 41,868,515 issued and outstanding in 2003)....          452           420
Additional paid-in capital...............................      318,173       290,631
Accumulated other comprehensive loss.....................         (534)          530
Retained earnings........................................      175,358       116,239
                                                           ------------  ------------
         Total shareholders' equity......................      493,449       407,820
                                                           ------------  ------------
  Total liabilities and shareholders' equity............. $    827,843  $    707,462
                                                           ============  ============

Total debt to capitalization percentage ratio............         28.6 %        28.1 %
Calculation of total debt to capitalization percentage ratio:
Total debt............................................... $    197,636  $    167,846
Redeemable preferred stock...............................           --        20,944
Shareholders' equity.....................................      493,449       407,820
                                                           ------------  ------------
Capitalization........................................... $    691,085  $    596,610






STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)

 
                                                                                                       
                                                     Three Months Ended September 30,                  Nine Months Ended September 30,
                                            --------------------------------------------    ---------------------------------------------
                                                   2004                   2003                     2004                    2003
                                            --------------------   ---------------------    ---------------------   ---------------------
                                                 $      % of Rev        $      % of Rev          $      % of Rev         $      % of Rev
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
Revenues.................................. $   135,989    100.0 % $   113,228     100.0 %  $   377,338     100.0 % $   338,674     100.0

  Cost of revenues........................      76,822     56.5        63,728      56.3        209,681      55.6       193,188      57.0
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
Gross profit                                    59,167     43.5        49,500      43.7        167,657      44.4       145,486      43.0
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
  Selling, general and
    administrative expenses...............      19,956     14.7        17,276      15.3         56,606      15.0        50,748      15.0
  Amortization............................         605      0.4           389       0.3          1,799       0.5          1075       0.3
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
     Total SG&A expenses and amortization.      20,561     15.1        17,665      15.6         58,405      15.5        51,823      15.3
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
  Income from operations before
    excluded charges......................      38,606     28.4        31,835      28.1        109,252      29.0        93,663      27.7

  Write-down of treatment related
   fixed assets...........................          --       --            --        --          1,155       0.3            --        --
  Acquisition-related costs...............         392      0.3           216       0.2            586       0.2           430       0.1
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
Income from operations....................      38,214     28.1        31,619      27.9        107,511      28.5        93,233      27.5
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
Other income (expense):
  Interest income.........................         168      0.1           232       0.2            286       0.1           492       0.1
  Interest expense........................      (3,266)    (2.4)       (2,829)     (2.5)        (8,379)     (2.2)      (10,141)     (3.0)
  Loan amendment fees (2004)/
      debt extinguishment (2003)..........          --       --            --        --           (333)     (0.1)       (3,268)     (1.0)
  Other expense...........................        (275)    (0.2)         (641)     (0.6)        (1,242)     (0.3)       (1,847)     (0.5)
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
     Total other income (expense).........      (3,373)    (2.5)       (3,238)     (4.8)        (9,668)     (2.6)      (14,764)     (4.4)
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
Income before income taxes................      34,841     25.6        28,381      25.1         97,843      25.9        78,469      23.2
Income tax expense........................      13,713     10.1        11,210       9.9         38,724      10.3        31,095       9.2
                                            ----------- --------   ----------- ---------    ----------- ---------   ----------- ---------
Net income................................ $    21,128     15.5 % $    17,171      15.2 %  $    59,119      15.7 % $    47,374      14.0
                                            =========== ========   =========== =========    =========== =========   =========== =========

Earnings per share - diluted.............. $      0.46            $      0.37              $      1.28             $      1.03
                                            ===========            ===========              ===========             ===========
Weighted average number of common
  shares outstanding - diluted............  46,299,925             46,285,456               46,304,444              46,000,142
                                            ===========            ===========              ===========             ===========

As reported net income                     $    21,128            $    17,171              $    59,119             $    47,374
Plus:
Write off of treatment related fixed
   assets-after tax....................... $        --            $        --              $       698             $        --
Loan amendment fees (2004)/
   debt extinguishment (2003)-after tax... $        --            $        --              $       201             $     1,974

Adjusted net income                        $    21,128            $    17,171              $    60,018             $    49,348

Adjusted earnings per share-diluted        $      0.46            $      0.37              $      1.30             $      1.07






STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)

 
                                                                                    
                                                                    For the Nine
                                                              Months Ended September 30,
                                                              ----------------------
                                                                 2004        2003
                                                              ----------  ----------
OPERATING ACTIVITIES:                                                               
Net income.................................................. $   59,119  $   47,374
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Write off of deferred financing costs...................         --         484
    Stock compensation expense..............................         21          76
    Tax benefit of disqualifying dispositions
      of stock options......................................      6,159       5,645
    Loss on sale of property and equipment..................      1,470         212
    Depreciation............................................     14,445      11,467
    Amortization............................................      1,799       1,075
    Deferred income taxes...................................     11,660       6,634
Changes in operating assets and liabilities, net of
  effect of acquisitions:
    Accounts receivable.....................................     (7,312)      2,699
    Parts and supplies......................................       (141)        334
    Prepaid expenses and other assets.......................      3,109       7,539
    Accounts payable........................................     (3,904)     (5,002)
    Accrued liabilities.....................................     (2,639)      9,224
    Deferred revenue........................................       (851)        522
                                                              ----------  ----------
Net cash provided by operating activities...................     82,935      88,283
                                                              ----------  ----------
INVESTING ACTIVITIES:                                                               
  Payments for acquisitions and international
    investments, net of cash acquired.......................    (68,227)    (33,411)
  Purchases of short-term investments.......................     (1,017)       (790)
  Proceeds from sale of property and equipment..............         61         384
  Capital expenditures......................................    (23,343)    (14,561)
                                                              ----------  ----------
Net cash used in investing activities.......................    (92,526)    (48,378)
                                                              ----------  ----------
FINANCING ACTIVITIES:                                                               
  Proceeds from issuance of note payable....................     12,097       1,132
  Repayment of senior subordinated debt.....................         --     (17,775)
  Payments of deferred financing costs......................         --        (395)
  Repayment of long-term debt...............................    (30,822)     (3,714)
  Net (repayments of) proceeds from senior credit facility..     32,000     (27,792)
  Principal payments on capital lease obligations...........       (734)       (913)
  Purchase of common stock..................................    (10,188)         --
  Proceeds from other issuances of common stock.............     10,217       8,024
                                                              ----------  ----------
Net cash provided by (used in) financing activities.........     12,570     (41,433)
                                                              ----------  ----------
Effect of exchange rate changes on cash.....................     (1,264)       (305)
                                                              ----------  ----------
Net increase (decrease) in cash and cash equivalents........      1,715      (1,833)
Cash and cash equivalents at beginning of period............      7,240       8,375
                                                              ----------  ----------
Cash and cash equivalents at end of period.................. $    8,955  $    6,542
                                                              ==========  ==========
Non-cash activities:                                                                
Net issuances of common stock for certain acquisitions...... $      420  $       70
Net issuances of notes payable for certain acquisitions..... $   17,249  $       --





-----END PRIVACY-ENHANCED MESSAGE-----