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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