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.

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


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

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

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): April 24, 2013

[bo8k0313001.jpg]

Stericycle, Inc.

(Exact name of registrant as specified in its charter)


Delaware	0-21229	36-3640402
(State or other jurisdiction of incorporation)	(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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]

Written communications pursuant to Rule 425 under the Securities Act (17 CR 230.425)

[ ]

Soliciting material pursuant to Rule 425 under the Securities Act (17 CFR 240.14a-12)

[ ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02

Results of Operations and Financial Condition

On April 24, 2013 Stericycle, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2013. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated by reference.

Item 9.01

Financial Statements and Exhibits

(d)

Exhibits

99.1

Press release issued by Stericycle, Inc. dated April 24, 2013.

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 thereunto duly authorized.



Dated: April 24, 2013	Stericycle, Inc.



	By:	/s/ Frank J.M. ten Brink


		Frank J.M. ten Brink
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit Number

Description

99.1

Press Release issued by Stericycle, Inc. dated April 24, 2013.