Toggle SGML Header (+)


Section 1: 8-K (8-K)

8-K

 

 

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): July 28, 2016

 

 

 

LOGO

Stericycle, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-37556   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 July 28, 2016 Stericycle, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2016. 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 July 28, 2016.


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: July 28, 2016      

Stericycle, Inc.

    By:  

/s/ DANIEL V. GINNETTI

      Daniel V. Ginnetti
      Executive Vice President and Chief Financial Officer


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press Release issued by Stericycle, Inc. dated July 28, 2016.
(Back To Top)

Section 2: EX-99.1 (EX-99.1)

EX-99.1

EXHIBIT 99.1

FOR FURTHER INFORMATION CONTACT:

Investor Relations 847-607-2012

Conference call to be held July 28, 2016 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 August 28th by dialing 855-859-2056, access code 21516790. To hear a live simulcast of the call or access the audio archive, visit the investor relations page on www.stericycle.com.

STERICYCLE, INC. REPORTS RESULTS

FOR THE SECOND QUARTER AND YEAR TO DATE 2016

Lake Forest, Illinois, July 28, 2016—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the second quarter and year to date 2016.

SECOND QUARTER RESULTS

Revenues for the quarter ended June 30, 2016 were $891.6 million, up 24.6% from $715.7 million in the second quarter of last year. Acquisitions contributed approximately $185.9 million to the current period’s growth in revenues. Revenues increased 27.4% compared to the prior period when adjusted for unfavorable foreign exchange impacts of $20.0 million. Organic revenues grew 1.4%, or 3.3% when adjusted for manufacturing and industrial services. See Tables 1A-1C below.

Gross profit, reported in accordance with U.S. generally accepted accounting principles (“GAAP”), was $381.1 million, up 25.0% from $304.8 million in the second quarter of last year. GAAP gross profit as a percentage of revenue was 42.7% compared to 42.6% in the second quarter of 2015. Non-GAAP gross profit, when adjusted for plant conversion expenses as identified in Table 2 below, was $381.6 million, an increase of 25.0% from $305.3 million in the second quarter of last year. Non-GAAP gross profit as a percentage of revenues was 42.8% compared to 42.7% in the second quarter of 2015.

GAAP earnings per diluted share decreased 57.3% to $0.43 from $1.02 in the second quarter of 2015. Non-GAAP earnings per diluted share, when adjusted for various items, decreased 1.6% to $1.18 from $1.20. See Tables 3 and 4 below.

FIRST SIX MONTHS RESULTS

Revenues for the six months ended June 30, 2016 were $1.77 billion, up 28.0% from $1.38 billion in the same period last year. Acquisitions contributed approximately $380.4 million to the current year’s growth in revenues. Revenues increased 31.2% compared with the prior period when adjusted for unfavorable foreign exchange impact of $43.8 million. Organic revenues grew 3.7%, or 5.2% when adjusted for manufacturing and industrial services. See Tables 1A-1C below.

GAAP gross profit was $750.3 million, up 28.0% from $586.2 million in the same period last year. GAAP gross profit as a percentage of revenues remained flat at 42.5% for the six months ended June 30, 2016 and 2015. Non-GAAP gross profit, when adjusted for plant conversion expenses as identified in Table 2 below, was $751.0 million, up 28.0% from $586.7 million in the same period as last year. Non-GAAP gross profit as a percentage of revenues remained flat at 42.5% for the six months ended June 30, 2016 and 2015.

GAAP earnings per diluted share decreased 10.5% to $1.21 from $1.35 in 2015. Non-GAAP earnings per diluted share, when adjusted for various items, decreased 1.7% to $2.29 from $2.33. See Tables 3 and 4 below.

Cash flow from operations for the six months ended June 30, 2016 was $245.4 million, up 37.4% from $178.7 million in the same period last year.

PRESENTATION OF NON-GAAP INFORMATION

This press release includes certain non-GAAP financial measures, as defined in the SEC’s Regulation G. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures allows for a better period over period comparison by removing the impact of items that, in management’s view, do not reflect the Company’s underlying operating performance. These measures are also used to evaluate senior management and are a factor in determining their at-risk compensation.


Adjusted diluted earnings per share, adjusted net income, adjusted gross profit, and adjusted sales growth are described in the Reconciliation of Certain Non-GAAP Measures section of this document.

These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results, but should be read in conjunction with the unaudited condensed consolidated statement of income and other information presented herein. The non-GAAP financial measures in the press release may differ from similar measures used by other companies. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the accompanying tables.

DISCUSSION OF ADJUSTING ITEMS FOR NON-GAAP MEASURES

For the purpose of evaluating revenues, we present non-GAAP revenues to show the impact of foreign currency, revenues from acquisitions and Manufacturing and Industrial Services (“M&I”). Management reviews and analyzes revenues excluding the effect of foreign currency translation and revenue from acquisitions because we believe this better represents the Company’s underlying business trends, including organic revenue growth. Separate presentation of M&I allows for visibility of a revenue stream that has shown greater volatility than our other service lines.

For the purpose of evaluating operating performance, we present our financials to show the impact of income and expenses in our non-GAAP earnings related to acquisitions. These adjustments include acquisition expense, integration expense, amortization expense, and change in fair value of contingent consideration. This allows comparison of period over period results without the impact of acquisitions-related expenses.

For the purpose of evaluating operating performance, we additionally present our financials to show the impact of expenses in our non-GAAP earnings related to litigation expense, restructuring and plant conversion expenses, and contract exit costs to allow for period over period comparison of financials without the impact of charges that may not occur each year and if so, are due to different factors.

For the purpose of calculating the ultimate impact of our mandatory convertible preferred stock, we show the impact to our EPS by excluding the mandatory convertible preferred stock dividend and using the “if-converted” method of share dilution. This provides the reader insight to how our diluted shares will be affected after these preferred shares are converted to common shares.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

The following tables show our reconciliation of GAAP Revenue growth to Non-GAAP Revenue growth:

Table 1 - A

 

     Three Months Ended June 30,  
     In millions     Percentage Growth (%)  

Global Revenue Details by Service

   2016     2015     Growth     Organic     Acquisitions     Foreign
Exchange
    Total  

Regulated Waste and Compliance Services

   $ 517.2      $ 516.0      $ 1.2        2.2     0.7     (2.6 %)      0.2

Secure Information Destruction Services

     190.5        —          190.5        N/A        N/A        N/A        N/A   

Communication and Related Services

     82.5        82.1        0.5        (1.3 %)      3.1     (1.2 %)      0.6

Manufacturing and Industrial Services

     101.4        117.6        (16.3     (8.9 %)      (0.2 %)      (4.7 %)      (13.8 %) 
  

 

 

   

 

 

   

 

 

         

Total Global Revenues, as Reported

     891.6        715.7        175.9        1.4     26.0     (2.8 %)      24.6

Less: Manufacturing and Industrial Services

     (101.4     (117.6          
  

 

 

   

 

 

           

Total Revenues, as Adjusted (Non-GAAP)

   $ 790.2      $ 598.0      $ 192.2        3.3     31.3     (2.4 %)      32.1
  

 

 

   

 

 

   

 

 

         

Domestic Revenues

   $ 657.1      $ 518.2      $ 139.0        (0.2 %)      27.0     —          26.8

International Revenues

     234.5        197.5        37.0        5.6     23.2     (10.1 %)      18.7
  

 

 

   

 

 

   

 

 

         

Total Global Revenues, as Reported

   $ 891.6      $ 715.7      $ 175.9        1.4     26.0     (2.8 %)      24.6
  

 

 

   

 

 

   

 

 

         


Table 1 - B

 

     Six Months Ended June 30,  
     In millions     Percentage Growth (%)  

Global Revenue Details by Service

   2016     2015     Growth     Organic     Acquisitions     Foreign
Exchange
    Total  

Regulated Waste and Compliance Services

   $ 1,021.2      $ 1,013.4      $ 7.8        3.1     0.7     (3.0 %)      0.8

Secure Information Destruction Services

     375.2        —          375.2        N/A        N/A        N/A        N/A   

Communication and Related Services

     170.5        154.4        16.1        8.5     3.3     (1.4 %)      10.4

Manufacturing and Industrial Services

     198.9        211.2        (12.3     (5.4 %)      4.9     (5.3 %)      (5.8 %) 
  

 

 

   

 

 

   

 

 

         

Total Global Revenues, as Reported

     1,765.8        1,379.0        386.8        3.7     27.5     (3.2 %)      28.0

Less: Manufacturing and Industrial Services

     (198.9     (211.2          
  

 

 

   

 

 

           

Total Revenues, as Adjusted (Non-GAAP)

   $ 1,566.8      $ 1,167.8      $ 399.0        5.2     31.7     (2.8 %)      34.2
  

 

 

   

 

 

   

 

 

         

Domestic Revenues

   $ 1,306.8      $ 990.4      $ 316.4        2.8     29.2     —          31.9

International Revenues

     459.0        388.6        70.4        6.1     23.3     (11.3 %)      18.1
  

 

 

   

 

 

   

 

 

         

Total Global Revenues, as Reported

   $ 1,765.8      $ 1,379.0      $ 386.8        3.7     27.5     (3.2 %)      28.0
  

 

 

   

 

 

   

 

 

         

Table 1 - C

 

In millions

 
     Three Months Ended June 30,
2016
     Six Months Ended June 30,
2016
 

Organic

   $ 10.0       $ 50.2   

Acquisitions

     185.9         380.4   

Foreign Exchange

     (20.0      (43.8
  

 

 

    

 

 

 

Total Growth

   $ 175.90       $ 386.80   
  

 

 

    

 

 

 

The following table shows our reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit:

Table 2

 

In millions

                                                    
     Three Months Ended June 30,     Six Months Ended June 30,  
     2016     2015     2016     2015  
     $      % of Rev     $      % of Rev     $      % of Rev     $      % of Rev  

Gross Profit, as Reported

   $ 381.1         42.7   $ 304.8         42.6   $ 750.3         42.5   $ 586.2         42.5

Plant Conversion Expenses

     0.5         0.1     0.5         0.1     0.8         0.0     0.5         0.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Gross Profit, as Adjusted (Non-GAAP)

   $ 381.6         42.8   $ 305.3         42.7   $ 751.0         42.5   $ 586.7         42.5


The following tables show our reconciliation of GAAP Net Income Attributable to Stericycle, Inc. Common Shareholders to Non-GAAP Net Income Attributable to Stericycle, Inc. Common Shareholders:

Table 3

 

In millions, except share and per share data

 
     Three Months Ended June 30,      Six Months Ended June 30,  
     2016      2015      2016      2015  

Net Income Attributable to Stericycle, Inc. Common Shareholders, As Reported

   $ 37.3       $ 87.8       $ 104.0         116.8   

Adjustments:

           

Acquisition Expenses

     2.6         3.0         5.6         6.3   

Integration Expenses

     22.6         8.9         41.8         17.8   

Litigation Expenses

     2.7         (0.2      4.0         75.5   

Changes in Fair Value of Contingent Consideration

     —           0.0         (2.6      (0.6

Restructuring and Plant Conversion Expenses

     0.9         3.1         1.2         15.4   

Contract Exit Costs

     12.7         —           12.7         —     

Amortization Expense a

     50.9         8.9         69.2         17.7   

Add Back Convertible Preferred Stock Dividend

     10.0         —           20.1         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Adjustments

     102.4         23.8         152.0         132.0   

Tax Effect of above adjustments b

     (31.9      (8.2      (46.8      (48.0

Net Income Attributable to Stericycle, Inc. Common Shareholders, as Adjusted (Non-GAAP)

   $ 107.8       $ 103.4       $ 209.1       $ 200.8   

EPS, as Reported

   $ 0.43       $ 1.02       $ 1.21       $ 1.35   
  

 

 

    

 

 

    

 

 

    

 

 

 

EPS, as Adjusted (Non-GAAP)

   $ 1.18       $ 1.20       $ 2.29       $ 2.33   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average number of common shares outstanding - diluted

     85,760,686         86,221,034         85,798,892         86,292,816   

Additional Dilution Under If-Converted Method

     5,624,138         —           5,637,758         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted Weighted Average Number of Common Shares Outstanding Under If-Converted Method

     91,384,824         86,221,034         91,436,650         86,292,816   

 

a) Beginning in the quarter ended March 31, 2016, the Company has started to exclude amortization expense from non-GAAP EPS. For comparable reporting, the Company’s previously reported 2015 results are adjusted to reflect the change.
b) The tax effect of the adjustments is calculated based on applying the appropriate tax rate for the jurisdictions in which the adjustment occurred for the respective periods.

The following table shows our reconciliation of GAAP EPS to Non-GAAP EPS:

Table 4

 

     Three Months Ended June 30,     Six Months Ended June 30,  
                 Change                 Change  
     2016     2015     $     %     2016     2015     $     %  

EPS, as Reported

   $ 0.43      $ 1.02      $ (0.58     -57.3   $ 1.21      $ 1.35      $ (0.14     -10.5

Acquisition Expenses

     0.02        0.03            0.04        0.06       

Integration Expenses

     0.17        0.07            0.31        0.13       

Litigation Expenses

     0.02        (0.01         0.03        0.53       

Changes in Fair Value of Contingent Consideration

     0.00        0.00            (0.03     (0.01    

Restructuring and Plant Conversion Expenses

     0.01        0.03            0.01        0.12       

Contract Exit Costs

     0.10        0.00            0.10        0.00       

Amortization Expense

     0.39        0.07            0.52        0.14       

Add Back Convertible Preferred Stock Dividend

     0.12        0.00            0.23        0.00       

Reallocation of EPS Related to Convertible Preferred Stock

     (0.08     0.00            (0.15     0.00       
  

 

 

   

 

 

       

 

 

   

 

 

     

EPS, as Adjusted (Non-GAAP)

   $ 1.18      $ 1.20      $ (0.02     -1.6   $ 2.29      $ 2.33      $ (0.04     -1.7

Diluted Weighted Average Number of Common Shares Outstanding Under If-Converted Method

     91,384,824        86,221,034            91,436,650        86,292,816       


For more information about Stericycle, please visit our website at www.stericycle.com.

Safe Harbor Statement: This press release may contain forward-looking statements that involve risks and uncertainties, some of which are beyond our control (for example, general economic and market 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 the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information, increases in transportation and other operating costs, the level of governmental enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information, our obligations to service our substantial indebtedness and to comply with the covenants and restrictions contained in our private placement notes, term loan credit facility and revolving credit facility, our ability to execute our acquisition strategy and to integrate acquired businesses, competition and demand for services in the regulated waste and secure information destruction industries, political, economic and currency risks related to our foreign operations, impairments of goodwill or other indefinite-lived intangibles, variability in the demand for services we provide on a project or non-recurring basis, exposure to environmental liabilities, fluctuations in the price we receive for the sale of paper, disruptions in or attacks on our information technology systems, compliance with existing and future legal and regulatory requirements, as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. 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

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

 

     June 30,     December 31,  
     2016     2015  
ASSETS     

Current Assets:

    

Cash and cash equivalents

   $ 44,320      $ 55,634   

Short-term investments

     64        69   

Accounts receivable, net

     627,135        614,494   

Prepaid expenses

     58,566        46,740   

Other current assets

     40,277        44,891   
  

 

 

   

 

 

 

Total Current Assets

     770,362        761,828   

Property, plant and equipment, net

     707,060        665,602   

Goodwill

     3,558,283        3,758,177   

Intangible assets, net

     2,078,234        1,842,561   

Other assets

     32,429        36,995   
  

 

 

   

 

 

 

Total Assets

   $ 7,146,368      $ 7,065,163   
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current Liabilities:

    

Current portion of long-term debt

   $ 109,868      $ 161,409   

Accounts payable

     145,069        149,202   

Accrued liabilities

     182,814        197,329   

Deferred revenues

     17,132        16,989   

Other current liabilities

     62,221        62,420   
  

 

 

   

 

 

 

Total Current Liabilities

     517,104        587,349   

Long-term debt, net of current portion

     3,008,588        3,040,352   

Deferred income taxes

     705,873        608,272   

Other liabilities

     85,724        81,352   

Equity:

    

Mandatory convertible preferred stock

     8        8   

Common stock

     850        849   

Additional paid-in capital

     1,183,140        1,143,020   

Accumulated other comprehensive loss

     (297,558     (282,631

Retained earnings

     1,931,807        1,868,645   
  

 

 

   

 

 

 

Total Stericycle, Inc. Equity

     2,818,247        2,729,891   

Noncontrolling interests

     10,832        17,947   
  

 

 

   

 

 

 

Total Equity

     2,829,079        2,747,838   
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 7,146,368      $ 7,065,163   
  

 

 

   

 

 

 


STERICYCLE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT SHARES AND PER SHARE DATA)

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2016     2015     2016     2015  
     $     % of
Rev
    $     % of
Rev
    $     % of
Rev
    $     % of
Rev
 

Revenues

   $ 891,621        100.0   $ 715,689        100.0   $ 1,765,802        100.0   $ 1,379,008        100.0

Cost of revenues (“COR”) exclusive of depreciation

     486,915        54.6     396,793        55.4     969,271        54.9     764,133        55.4

Depreciation

     23,611        2.6     14,072        2.0     46,252        2.6     28,720        2.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

     510,526        57.3     410,865        57.4     1,015,523        57.5     792,853        57.5

Gross profit, as reported

     381,095        42.7     304,824        42.6     750,279        42.5     586,155        42.5

Gross profit, as adjusted (non-GAAP)

     381,612        42.8     305,338        42.7     751,032        42.5     586,669        42.5

Selling, general and administrative expenses (“SG&A”) exclusive of depreciation

     273,287        30.7     145,673        20.4     494,049        28.0     369,333        26.8

Depreciation

     8,100        0.9     4,387        0.6     15,599        0.9     8,505        0.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total SG&A expense, as reported

     281,387        31.6     150,060        21.0     509,648        28.9     377,838        27.4

Total SG&A expense, as adjusted (non-GAAP)

     189,509        21.3     126,823        17.7     378,577        21.4     246,372        17.9

Income from operations, as reported

     99,708        11.2     154,764        21.6     240,631        13.6     208,317        15.1

Income from operations, as adjusted (non-GAAP)

exclusive of adjusting items shown below

     192,103        21.5     178,515        24.9     372,455        21.1     340,297        24.7

Adjusting items:

                

Plant conversion expenses (COR)

     517        0.1     514        0.1     753        0.0     514        0.0

Acquisition expenses (SG&A)

     2,607        0.3     2,986        0.4     5,597        0.3     6,282        0.5

Integration expenses (SG&A)

     22,578        2.5     8,924        1.2     41,846        2.4     17,810        1.3

Litigation expenses (SG&A)

     2,664        0.3     (173     0.0     3,964        0.2     75,450        5.5

Change in fair value of contingent consideration (SG&A)

     —          0.0     35        0.0     (2,644     -0.1     (640     0.0

Restructuring and plant conversion expenses (SG&A)

     412        0.0     2,544        0.4     417        0.0     14,846        1.1

Contract exit costs (SG&A)

     12,708        1.4     —          0.0     12,708        0.7     —          0.0

Amortization (SG&A)

     50,909        5.7     8,921        1.2     69,183        3.9     17,718        1.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

     92,395        10.4     23,751        3.3     131,824        7.5     131,980        9.6

Other income (expense):

                

Interest expense, net

     (24,358     -2.7     (16,390     -2.3     (48,399     -2.7     (34,988     -2.5

Other income/ (expense), net

     (2,118     -0.2     (1,604     -0.2     (3,369     -0.2     (2,202     -0.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense

     (26,476     -3.0     (17,994     -2.5     (51,768     -2.9     (37,190     -2.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     73,232        8.2     136,770        19.1     188,863        10.7     171,127        12.4

Income tax expense

     27,002        3.0     48,493        6.8     65,038        3.7     53,558        3.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     46,230        5.2     88,277        12.3     123,825        7.0     117,569        8.5

Less: net income attributable to noncontrolling interests

     196        0.0     447        0.1     1,005        0.1     799        0.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Stericycle, Inc.

     46,034        5.2     87,830        12.3     122,820        7.0     116,770        8.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: mandatory convertible preferred stock dividend

     10,021        1.1     —          0.0     20,127        1.1     —          0.0

Less: gain on repurchase of preferred stock

     (1,280     -0.1     —          0.0     (1,280     -0.1     —          0.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Stericycle, Inc. common shareholders

   $ 37,293        4.2   $ 87,830        12.3   $ 103,973        5.9   $ 116,770        8.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share - diluted

   $ 0.43        $ 1.02        $ 1.21        $ 1.35     
  

 

 

     

 

 

     

 

 

     

 

 

   

Weighted average number of common shares outstanding - diluted

     85,760,686          86,221,034          85,798,892          86,292,816     
  

 

 

     

 

 

     

 

 

     

 

 

   


STERICYCLE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

 

     Six Months Ended June 30,  
     2016     2015  

Operating Activities:

    

Net income

   $ 123,825      $ 117,569   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Stock compensation expense

     11,557        10,904   

Excess tax benefit of stock options exercised

     —          (10,899

Depreciation

     61,851        37,225   

Amortization

     69,183        17,718   

Deferred income taxes

     4,515        (8,390

Other, net

     (2,644     5,686   

Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:

    

Accounts receivable

     (12,888     (51,041

Accounts payable

     (1,496     21,019   

Accrued liabilities

     (13,303     (51,071

Deferred revenue

     305        (3,156

Other assets and liabilities

     4,535        (9,046
  

 

 

   

 

 

 

Net cash provided by operating activities

     245,440        178,660   
  

 

 

   

 

 

 

Investing Activities:

    

Payments for acquisitions, net of cash acquired

     (42,097     (61,766

Proceeds from investments

     7        271   

Proceeds from sale of property and equipment

     1,355        —     

Capital expenditures

     (67,133     (46,794
  

 

 

   

 

 

 

Net cash used in investing activities

     (107,868     (108,289
  

 

 

   

 

 

 

Financing Activities:

    

Repayments of long-term debt and other obligations

     (31,789     (39,590

Proceeds from foreign bank debt

     27,619        18,363   

Repayments of foreign bank debt

     (36,953     (43,769

Proceeds from term loan

     —          250,000   

Repayments of term loan

     (250,000     —     

Proceeds from senior credit facility

     902,817        879,024   

Repayments of senior credit facility

     (715,653     (1,072,468

Repayments of capital lease obligations

     (2,605     (1,951

Payment for hedge

     —          (8,833

Payments for repurchase of common stock

     (40,814     (85,149

Payments for repurchase of convertible preferred stock

     (5,025     —     

Dividends paid on mandatory convertible preferred stock

     (20,127     —     

Proceeds from issuances of common stock

     30,308        39,208   

Excess tax benefit of stock options exercised

     —          10,899   

Payments to noncontrolling interests

     (6,961     (2,603
  

 

 

   

 

 

 

Net cash used in financing activities

     (149,183     (56,869

Effect of exchange rate changes on cash and cash equivalents

     297        (2,782
  

 

 

   

 

 

 

Net (decrease)/ increase in cash and cash equivalents

     (11,314     10,720   

Cash and cash equivalents at beginning of period

     55,634        22,236   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 44,320      $ 32,956   
  

 

 

   

 

 

 

Non-cash activities:

    

Net issuances of obligations for acquisitions

   $ 23,069      $ 47,827   
(Back To Top)