0000950137-01-504255.txt : 20011107
0000950137-01-504255.hdr.sgml : 20011107
ACCESSION NUMBER: 0000950137-01-504255
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011102
ITEM INFORMATION: Other events
FILED AS OF DATE: 20011102
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: 1774350
BUSINESS ADDRESS:
STREET 1: 28161 NORTH KEITH DRIVE
STREET 2: SUITE 410
CITY: LAKE FOREST
STATE: IL
ZIP: 60045
BUSINESS PHONE: 8473675910
MAIL ADDRESS:
STREET 1: 1419 LAKE COOK RD
STREET 2: STE 410
CITY: DEERFIELD
STATE: IL
ZIP: 60015
8-K
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c65748e8-k.txt
CURRENT REPORT
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): November 2, 2001
STERICYCLE, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-21229 36-3640402
(State or other juris- (Commission file (IRS employer
diction of incorporation) number) identification number)
28161 North Keith Drive
Lake Forest, Illinois 60045
(Address of principal executive offices)
Registrant's telephone number, including area code:
(847) 367-5910
ITEM 5. OTHER EVENTS
On November 2, 2001, Stericycle, Inc. (the "Company") announced earnings
for the quarter ended September 30, 2001. Revenues for the quarter were $91.3
million, up 12.6% from revenues of $81.1 million for the same quarter in 2000.
Income from operations for the quarter was $19.7 million, up 25.9% from income
from operations of $15.7 million for the same quarter in 2000. Net income for
the quarter was $6.3 million, up 84.5% from net income of $3.4 million for the
same quarter in 2000. Earnings per share (diluted) for the quarter were $0.30,
up 76.6% from earnings per share (diluted) of $0.17 for the same quarter in
2000.
For the nine months ended September 30, 2001, revenues increased to $265.6
million, up 11.5% from revenues of $238.3 million for the same period in 2000.
Income from operations for the period increased to $56.6 million, up 21.3% from
income from operations of $46.7 million for the same period in 2000. Net income
for the period increased to $16.9 million, up 64.7% from net income of $10.3
million for the same period in 2000. Earnings per share (diluted) for the period
increased to $0.81, up 56.1% from earnings per share (diluted) of $0.52 for the
same period in 2000.
A copy of the Company's release announcing earnings is filed as an exhibit
to and is incorporated by reference in this Report.
(c) Exhibits
The following exhibit is filed with this Report:
Exhibit No. Description
99 Press release dated November 2, 2001 issued by Stericycle, Inc.
-2-
SIGNATURE
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 hereunto duly authorized.
Date: November 2, 2001.
STERICYCLE, INC.
By /s/ Frank J.M. ten Brink
----------------------------------
Frank J.M. ten Brink
Executive Vice President and
Chief Financial Officer
-3-
EX-99
3
c65748ex99.txt
PRESS RELEASE
EXHIBIT 99
FOR FURTHER INFORMATION CONTACT: FOR IMMEDIATE RELEASE
The Financial Relations Board
Cindy Martin 312-640-6741
Conference call to be held November 5th, at 8:00 a.m. Central time - dial in
number 800-491-3988. Replay available after the call until November 11th at
800-625-3988 pass code 1269371. To hear a simulcast of the call over the
internet access www.ccbn.com or Stericycle's website at www.stericycle.com.
STERICYCLE, INC. REPORTS 84.5% INCREASE IN NET INCOME AND 76.6% INCREASE
IN EPS FOR THE THIRD QUARTER OF 2001
KEY RESULTS:
- Net income in the quarter $6.3 million, up 84.5% compared to the same
quarter a year ago
- Revenues in the quarter $91.3 million, up 12.6% compared to the same
quarter a year ago
- Net income per diluted share of $0.30 for the quarter
LAKE FOREST, ILLINOIS, NOVEMBER 2, 2001--STERICYCLE, INC. (NASDAQ:SRCL), the
leading provider of regulated medical waste management services in the U.S.,
today reported its strongest financial results to date for the third quarter of
2001. Stericycle operates on a national basis, providing medical waste
collection, transportation, treatment and disposal services and safety and
compliance programs.
THIRD QUARTER AND YEAR-TO-DATE RESULTS
For the third quarter ended September 30, 2001, revenues were $91.3 million, up
12.6% from $81.1 million in the same quarter last year. Gross profit was $36.5
million in the third quarter of 2001, up 14.3% from $31.9 million in the same
quarter last year. Gross profit as a percent of revenues increased to 40.0% in
the third quarter of 2001 from 39.4% in the third quarter of 2000.
Third quarter operating income rose 25.9% to $19.7 million, up from $15.7
million in the same quarter last year. International equipment sales contributed
$2.3 million in revenues for the quarter. Weighted shares outstanding used to
determine earnings per diluted share were 21,098,186 for the third quarter of
2001 and 20,096,123 for the third quarter of 2000.
1
Net income rose 84.5% to $6.3 million, up from $3.4 million in the same quarter
last year.
Earnings per share were $0.30 in the third quarter of 2001, up 76.6% from $0.17
in the same quarter last year.
For the nine months ended September 30, 2001, revenues increased to $265.6
million, up 11.5% from the same period a year ago. Gross profit as a percent of
revenues increased from 39.2% for the nine months ended September 30, 2000 to
39.8% for the same period ended September 30, 2001. Fully taxed earnings were
$0.81 per diluted share as compared to $0.52 per diluted share in the same
period a year ago.
On October 10, 2001, we announced that we had refinanced our senior secured
credit facility. Since the refinancing, in which we increased our revolving
credit facility to $80 million and extended its maturity, reallocated the
amounts available under the Term A and Term B components of our credit facility
and extended their maturities, and reduced the interest rates that we are
charged, we have repaid $12.3 million on the revolving credit facility,
resulting in a current unused balance of $65 million.
Mark Miller, President and Chief Executive Officer, said, "our team delivered
the strongest quarter to date with growth in revenue, gross profit, operating
income, and net income. With the strong cash flow, we funded acquisitions,
invested in new programs and paid down debt."
SAFE HARBOR STATEMENT: Statements in this press release which are not strictly
historical are "forward-looking." Forward-looking statements involve known and
unknown risks and should be viewed with caution. Factors set forth in the
Company's Annual Report on Form 10-K, its recent Registration Statement on Form
S-3 and its other filings with the SEC could affect the Company's actual results
and could cause the Company's actual results to differ materially from expected
results. The risks and uncertainties that may affect the results of the
Company's business include, but are not limited to, the following: difficulties
and delays with respect to the completion and integration of acquisitions;
delays and diversion of attention related to compliance with permitting and
regulatory authorities; difficulties and delays with respect to marketing and
sales activities; and general uncertainties accompanying expansion into new
markets. The Company makes no commitment to disclose any revisions to
forward-looking statements, or any facts, events or circumstances after the date
hereof that may bear upon forward-looking statements.
2
STERICYCLE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share data)
Quarter ended September 30, Nine Months Ended
September 30,
2001 2000 2001 2000
---- ---- ---- ----
$ % of Rev $ % of Rev $ % of Rev $ % of Rev
Revenues $ 91,261 100.0% $ 81,066 100.0% $ 265,645 100.0% $ 238,291 100.0%
Costs and expenses:
Cost of revenues 54,794 60.0% 49,151 60.6% 159,913 60.2% 144,769 60.8%
------------------------------------------------------------------------------------------
Gross Margin 36,467 40.0% 31,915 39.4% 105,732 39.8% 93,522 39.2%
Selling, general and administrative
expenses 13,258 14.5% 11,318 14.0% 38,437 14.5% 33,775 14.2%
Amortization 3,459 3.8% 3,447 4.3% 10,358 3.9% 10,200 4.3%
------------------------------------------------------------------------------------------
Total SG&A expense and
amortization 16,717 18.3% 14,765 18.2% 48,795 18.4% 43,975 18.5%
------------------------------------------------------------------------------------------
Income from operations before
acquisition related costs 19,750 21.6% 17,150 21.2% 56,937 21.4% 49,547 20.8%
Acquisition related costs 20 0.0% 1,483 1.8% 347 0.1% 2,890 1.2%
------------------------------------------------------------------------------------------
Income from operations 19,730 21.6% 15,667 19.3% 56,590 21.3% 46,657 19.6%
Other income (expense):
Interest income 85 0.0% 177 0.2% 265 0.1% 485 0.2%
Interest expense (8,942) (9.8%) (9,861) (12.2%) (27,398) (10.3%) (29,671) (12.5%)
Other income (expense) (313) (0.3%) (144) (0.2%) (1,039) (0.4%) (172) (0.1%)
------------------------------------------------------------------------------------------
Total other income (expense) (9,170) (10.0%) (9,828) (12.1%) (28,172) (10.6%) (29,358) (12.3%)
------------------------------------------------------------------------------------------
Income before income taxes $ 10,560 11.6% $ 5,839 7.2% $ 28,418 10.7% $ 17,299 7.3%
Income tax expense 4,225 4.6% 2,406 3.0% 11,472 4.3% 7,007 2.9%
------------------------------------------------------------------------------------------
Net income $ 6,335 6.9% $ 3,433 4.2% $ 16,946 6.4% $ 10,292 4.3%
=========== ===== =========== ===== =========== ===== =========== =====
Earnings per share - Diluted $ 0.30 $ 0.17 $ 0.81 $ 0.52
=========== =========== =========== ===========
Weighted average number of
common shares outstanding -
diluted 21,098,186 20,096,123 20,875,582 19,877,865
=========== =========== =========== ===========
Depreciation and amortization $ 6,414 7.0% $ 5,803 7.2% $ 18,737 7.1% $ 17,415 7.3%
EBITDA $ 25,831 28.3% $ 21,326 26.3% $ 74,650 28.1% $ 63,900 26.8%
STERICYCLE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
(in thousands except share data)
(unaudited)
ASSETS September 30 December 31
2001 2000
------------------------------
Current Assets:
Cash and cash equivalents $ 13,137 $ 2,947
Accounts receivable 68,657 71,225
Parts and supplies 3,905 3,216
Prepaid expenses 2,297 1,858
Other current assets 11,141 11,765
--------- ---------
Total current assets 99,137 91,011
Property and equipment, net 83,239 73,908
Goodwill, net 422,589 418,790
Other assets 15,678 14,273
--------- ---------
Total assets $ 620,643 $ 597,982
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,001 $ 14,444
Current portion long-term debt 8,996 5,097
Other current liabilities 43,327 23,572
--------- ---------
Total current liabilities 64,324 43,113
Long-term debt 325,857 345,104
Other liabilities 3,223 3,628
Redeemable preferred stock
Series A convertible preferred stock
(par value $0.01 per share, 75,000
shares authorized, 74,625 outstanding
in 2001, 75,000 outstanding in 2000
Liquidation preference of $79,440 in
2001 and $77,883 in 2000)
72,996 71,437
Common shareholders' equity
Common stock (par value $0.01 per
share, 30,000,000 shares authorized,
15,686,321 issued and outstanding in
2001, 15,208,866 issued and outstanding
in 2000)
157 152
Additional paid in capital 151,040 141,304
Accumulated other comprehensive (loss) (5,114) --
Retained earnings (deficit) 8,160 (6,756)
--------- ---------
Total shareholders' equity 154,243 134,700
--------- ---------
Total liabilities and shareholders' equity $ 620,643 $ 597,982
--------- ---------
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Nine months
ended September 30,
2001 2000
----------------------
Operating Activities:
Net income 16,946 10,292
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
FAS 133 ineffective portion of cash flow hedges 46
Stock compensation expense 106 120
Depreciation and amortization 18,737 17,415
Changes in operating assets and liabilities net of
effect of acquisitions:
Accounts receivable 3,353 (11,972)
Parts and supplies (604) (1,063)
Prepaid expenses (336) (1,002)
Other assets (2,416) (1,423)
Accounts payable (2,443) (3,747)
Accrued liabilities 11,483 (3,374)
Deferred revenue 2,139 193
-------- --------
Net cash provided by (used in) operating activities 47,011 5,439
Investing Activities:
Payments for acquisitions and international
investments, net of cash acquired (13,115) (4,203)
Short-term investments (52) 237
Retirement of property and equipment 979 --
Capital expenditures (12,330) (7.933)
-------- --------
Net cash used in investing activities (24,518) (11,899)
Financing Activities:
Repayment of long-term debt (9,118) (15,129)
Net proceeds and repayments on line of credit (5,000) 5,000
Payments of deferred financing costs - (522)
Principal payments on capital lease obligations (1,230) (1,280)
Proceeds from issuance of common stock 2,993 1,265
-------- --------
Net cash used in financing activities (12,355) (10,666)
-------- --------
Net increase (decrease) in cash and cash equivalents 10,138 (17,126)
Cash and cash equivalents at beginning of period 2,666 19,344
-------- --------
Cash and cash equivalents at end of period $ 12,804 $ 2,218
Non-cash activities
Net issuances of common stock for certain acquisitions $ 6,250 $ 1,260
Net issuance of notes payable for certain acquisitions -- $ 263
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