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Section 1: 10-Q (SRCL-10Q-20160930)

srcl-10q_20160930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016 or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission File Number 1-37556

 

Stericycle, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

36-3640402

(State or other jurisdiction of

incorporation or organization)

 

(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)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. YES      NO  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES      NO  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES      NO  

On November 1, 2016 there were 85,083,481 shares of the Registrant’s Common Stock outstanding.

 

 

 

 


Stericycle, Inc.

Table of Contents

 

 

Page No.

PART I.  Financial Information

 

 

 

Item 1.  Financial Statements (Unaudited)

 

 

Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015

1

 

 

Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015

2

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015

3

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015

4

 

 

Condensed Consolidated Statements of Changes in Equity for the nine months ended September 30, 2016 and year ended December 31, 2015

5

 

 

Notes to Condensed Consolidated Financial Statements

6

 

 

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

 

 

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

34

 

 

Item 4.  Controls and Procedures

35

 

 

PART II.  Other Information

 

 

 

Item 1.  Legal Proceedings

37

 

 

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

37

 

 

Item 6.  Exhibits

38

 

 

Signatures

39

 

 

 


 

PART I. – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

In thousands, except share and per share data

 

 

 

September 30, 2016

 

 

December 31,

2015

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,291

 

 

$

55,634

 

Short-term investments

 

 

63

 

 

 

69

 

Accounts receivable, less allowance for doubtful accounts of $26,119 in 2016 and $22,329 in 2015

 

 

637,921

 

 

 

614,494

 

Prepaid expenses

 

 

52,134

 

 

 

46,740

 

Other current assets

 

 

43,529

 

 

 

44,891

 

Total Current Assets

 

 

773,938

 

 

 

761,828

 

Property, plant and equipment, less accumulated depreciation of $489,347 in 2016 and $426,019 in 2015

 

 

727,774

 

 

 

665,602

 

Goodwill

 

 

3,596,899

 

 

 

3,758,177

 

Intangible assets, less accumulated amortization of $252,590 in 2016 and $151,025 in 2015

 

 

1,927,109

 

 

 

1,842,561

 

Other assets

 

 

31,544

 

 

 

36,995

 

Total Assets

 

$

7,057,264

 

 

$

7,065,163

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

91,008

 

 

$

161,409

 

Accounts payable

 

 

146,400

 

 

 

149,202

 

Accrued liabilities

 

 

211,762

 

 

 

197,329

 

Deferred revenues

 

 

15,536

 

 

 

16,989

 

Other current liabilities

 

 

73,021

 

 

 

62,420

 

Total Current Liabilities

 

 

537,727

 

 

 

587,349

 

Long-term debt, net of current portion

 

 

2,921,770

 

 

 

3,040,352

 

Deferred income taxes

 

 

654,495

 

 

 

608,272

 

Other liabilities

 

 

84,483

 

 

 

81,352

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock (par value $0.01 per share, 1,000,000 shares authorized), Mandatory Convertible Preferred Stock, Series A, 737,000 issued and outstanding in 2016 and 770,000 in 2015

 

 

7

 

 

 

8

 

Common stock (par value $0.01 per share, 120,000,000 shares authorized, 85,060,835 issued and outstanding in 2016 and 84,852,584 issued and outstanding in 2015)

 

 

851

 

 

 

849

 

Additional paid-in capital

 

 

1,167,756

 

 

 

1,143,020

 

Accumulated other comprehensive loss

 

 

(314,500

)

 

 

(282,631

)

Retained earnings

 

 

1,993,343

 

 

 

1,868,645

 

Total Stericycle, Inc.’s Equity

 

 

2,847,457

 

 

 

2,729,891

 

Noncontrolling interest

 

 

11,332

 

 

 

17,947

 

Total Equity

 

 

2,858,789

 

 

 

2,747,838

 

Total Liabilities and Equity

 

$

7,057,264

 

 

$

7,065,163

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

1


 

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

In thousands, except share and per share data

 

 

 

Three Months Ended 

September 30,

 

 

Nine Months Ended 

September 30,

 

 

 

2016

 

 

2015 (Restated)

 

 

2016

 

 

2015 (Restated)

 

Revenues

 

$

890,144

 

 

$

718,596

 

 

$

2,655,946

 

 

$

2,097,604

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (exclusive of depreciation shown below)

 

 

488,154

 

 

 

404,918

 

 

 

1,457,425

 

 

 

1,169,051

 

Depreciation - cost of revenues

 

 

22,730

 

 

 

14,003

 

 

 

68,982

 

 

 

42,723

 

Selling, general and administrative expenses (exclusive of depreciation and amortization shown below)

 

 

212,117

 

 

 

157,432

 

 

 

636,983

 

 

 

509,047

 

Depreciation – selling, general and administrative expenses

 

 

9,498

 

 

 

4,248

 

 

 

25,097

 

 

 

12,753

 

Amortization

 

 

33,128

 

 

 

9,239

 

 

 

102,311

 

 

 

26,957

 

Total Costs and Expenses

 

 

765,627

 

 

 

589,840

 

 

 

2,290,798

 

 

 

1,760,531

 

Income from Operations

 

 

124,517

 

 

 

128,756

 

 

 

365,148

 

 

 

337,073

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

21

 

 

 

8

 

 

 

51

 

 

 

82

 

Interest expense

 

 

(24,711

)

 

 

(17,386

)

 

 

(73,140

)

 

 

(52,448

)

Other expense, net

 

 

2,932

 

 

 

(1,754

)

 

 

(437

)

 

 

(3,956

)

Total Other Expense

 

 

(21,758

)

 

 

(19,132

)

 

 

(73,526

)

 

 

(56,322

)

Income Before Income Taxes

 

 

102,759

 

 

 

109,624

 

 

 

291,622

 

 

 

280,751

 

Income tax expense

 

 

37,586

 

 

 

39,718

 

 

 

102,624

 

 

 

93,276

 

Net Income

 

 

65,173

 

 

 

69,906

 

 

 

188,998

 

 

 

187,475

 

Less: net income attributable to noncontrolling interests

 

 

378

 

 

 

457

 

 

 

1,383

 

 

 

1,256

 

Net Income Attributable to Stericycle, Inc.

 

 

64,795

 

 

 

69,449

 

 

 

187,615

 

 

 

186,219

 

Less: mandatory convertible preferred stock dividend

 

 

9,726

 

 

 

 

 

 

29,853

 

 

 

 

Less: gain on repurchase of preferred stock

 

 

(6,467

)

 

 

 

 

 

(7,747

)

 

 

 

Net Income Attributable to Stericycle, Inc. Common Shareholders

 

$

61,536

 

 

$

69,449

 

 

$

165,509

 

 

$

186,219

 

Earnings Per Common Share Attributable to Stericycle, Inc. Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.72

 

 

$

0.82

 

 

$

1.95

 

 

$

2.19

 

Diluted

 

$

0.72

 

 

$

0.81

 

 

$

1.93

 

 

$

2.16

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

85,044,303

 

 

 

84,884,599

 

 

 

84,881,452

 

 

 

84,960,955

 

Diluted

 

 

85,570,529

 

 

 

86,120,315

 

 

 

85,689,525

 

 

 

86,234,859

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

2


 

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

In thousands

 

 

 

Three Months Ended 

September 30,

 

 

Nine Months Ended 

September 30,

 

 

 

2016

 

 

2015 (Restated)

 

 

2016

 

 

2015 (Restated)

 

Net Income

 

$

65,173

 

 

$

69,906

 

 

$

188,998

 

 

$

187,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Comprehensive (Loss)/ Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(17,032

)

 

 

(55,214

)

 

 

(32,814

)

 

 

(95,155

)

Amortization of cash flow hedge into income, net of tax (($170) and ($176), and ($515) and ($284) for the three- and nine- months ended September 30, 2016 and 2015, respectively)

 

 

266

 

 

 

278

 

 

 

804

 

 

 

458

 

Change in fair value of cash flow hedge, net of tax ($17 and ($79), and $(115) and $2,557 for the three- and nine-months ended September 30, 2016 and 2015, respectively)

 

 

(54

)

 

 

(216

)

 

 

318

 

 

 

(3,994

)

Total Other Comprehensive Loss

 

 

(16,820

)

 

 

(55,152

)

 

 

(31,692

)

 

 

(98,691

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive Income

 

 

48,353

 

 

 

14,754

 

 

 

157,306

 

 

 

88,784

 

Less: comprehensive income attributable to noncontrolling interests

 

 

500

 

 

 

1,644

 

 

 

1,560

 

 

 

1,392

 

Comprehensive Income Attributable to Stericycle, Inc. Common Shareholders

 

$

47,853

 

 

$

13,110

 

 

$

155,746

 

 

$

87,392

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

3


 

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

In thousands

 

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015 (Restated)

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

188,998

 

 

$

187,475

 

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

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

16,671

 

 

 

16,158

 

Excess tax benefit of stock options exercised

 

 

 

 

 

(15,483

)

Depreciation

 

 

94,079

 

 

 

55,476

 

Amortization

 

 

102,311

 

 

 

26,957

 

Deferred income taxes

 

 

20,579

 

 

 

(15,218

)

Other, net

 

 

(2,296

)

 

 

5,686

 

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

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(26,825

)

 

 

(66,352

)

Accounts payable

 

 

681

 

 

 

29,170

 

Accrued liabilities

 

 

6,141

 

 

 

77,820

 

Deferred revenues

 

 

(1,230

)

 

 

(3,412

)

Other assets and liabilities

 

 

18,659

 

 

 

(4,986

)

Net cash provided by operating activities

 

 

417,768

 

 

 

293,291

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Payments for acquisitions, net of cash acquired

 

 

(51,197

)

 

 

(97,098

)

Proceeds from/(purchases of) investments

 

 

7

 

 

 

(635,919

)

Proceeds from insurance settlement

 

 

2,358

 

 

 

 

Proceeds from sale of property and equipment

 

 

1,316

 

 

 

 

Capital expenditures

 

 

(100,981

)

 

 

(72,566

)

Net cash used in investing activities

 

 

(148,497

)

 

 

(805,583

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayments of long-term debt and other obligations

 

 

(52,462

)

 

 

(61,805

)

Proceeds from foreign bank debt

 

 

68,711

 

 

 

42,535

 

Repayments of foreign bank debt

 

 

(68,211

)

 

 

(76,387

)

Proceeds from term loan

 

 

 

 

 

250,000

 

Repayment of term loan

 

 

(250,000

)

 

 

(250,000

)

Proceeds from private placement of long-term note

 

 

 

 

 

300,000

 

Repayment of private placement of long-term note

 

 

 

 

 

(100,000

)

Proceeds from senior credit facility

 

 

1,205,270

 

 

 

1,338,140

 

Repayments of senior credit facility

 

 

(1,118,831

)

 

 

(1,614,968

)

Payments of capital lease obligations

 

 

(4,644

)

 

 

(2,813

)

Payments of deferred financing costs

 

 

(605

)

 

 

 

Payment for hedge

 

 

 

 

 

(8,833

)

Payments for repurchase of common stock

 

 

(40,814

)

 

 

(103,029

)

Payments for repurchase of mandatory convertible preferred stock

 

 

(24,263

)

 

 

-

 

Proceeds from issuance of mandatory convertible preferred stock

 

 

 

 

 

746,900

 

Proceeds from issuance of common stock

 

 

35,727

 

 

 

53,529

 

Dividends paid on mandatory convertible preferred stock

 

 

(29,853

)

 

 

 

Excess tax benefit of stock options exercised

 

 

 

 

 

15,483

 

Payments to noncontrolling interests

 

 

(6,961

)

 

 

(5,236

)

Net cash (used in)/provided by financing activities

 

 

(286,936

)

 

 

523,516

 

Effect of exchange rate changes on cash and cash equivalents

 

 

2,322

 

 

 

(577

)

Net (decrease)/ increase in cash and cash equivalents

 

 

(15,343

)

 

 

10,647

 

Cash and cash equivalents at beginning of period

 

 

55,634

 

 

 

22,236

 

Cash and cash equivalents at end of period

 

$

40,291

 

 

$

32,883

 

 

 

 

 

 

 

 

 

 

NON-CASH INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Issuances of obligations for acquisitions

 

$

31,394

 

 

$

71,905

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Nine Months Ended September 30, 2016 and Year Ended December 31, 2015

(Unaudited)

 

In thousands

 

 

 

Stericycle, Inc. Equity

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In Capital

 

 

Retained Earnings

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Noncontrolling Interest

 

 

Total Equity

 

Balance at January 1, 2015

 

 

 

 

$

 

 

 

84,884

 

 

$

849

 

 

$

289,211

 

 

$

1,743,371

 

 

$

(138,419

)

 

$

22,173

 

 

$

1,917,185

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

267,046

 

 

 

 

 

 

 

967

 

 

 

268,013

 

Currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(140,809

)

 

 

161

 

 

 

(140,648

)

Change in qualifying cash flow hedge, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,403

)

 

 

 

 

 

 

(3,403

)

Issuance of common stock for exercise of options, restricted stock units and employee stock purchases

 

 

 

 

 

 

 

 

 

 

973

 

 

 

10

 

 

 

68,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68,640

 

Issuance of mandatory convertible preferred stock

 

770

 

 

8

 

 

 

 

 

 

 

 

 

 

 

746,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

746,900

 

Purchase and cancellation of common stock

 

 

 

 

 

 

 

 

 

 

(1,004

)

 

 

(10

)

 

 

 

 

 

 

(131,666

)

 

 

 

 

 

 

 

 

 

 

(131,676

)

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,106

)

 

 

 

 

 

 

 

 

 

 

(10,106

)

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,750

 

Excess tax benefit of stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,897

 

Reduction to noncontrolling interests due to additional ownership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(360

)

 

 

 

 

 

 

 

 

 

 

(5,354

)

 

 

(5,714

)

Balance at December 31, 2015

 

 

770

 

 

 

8

 

 

 

84,853

 

 

 

849

 

 

 

1,143,020

 

 

 

1,868,645

 

 

 

(282,631

)

 

 

17,947

 

 

 

2,747,838

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

187,615

 

 

 

 

 

 

 

1,383

 

 

 

188,998

 

Currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(32,991

)

 

 

177

 

 

 

(32,814

)

Change in qualifying cash flow hedge, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,122

 

 

 

 

 

 

 

1,122

 

Issuance of common stock for exercise of options, restricted stock units and employee stock purchases

 

 

 

 

 

 

 

 

 

 

569

 

 

 

5

 

 

 

39,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39,667

 

Purchase and cancellation of common stock

 

 

 

 

 

 

 

 

 

 

(361

)

 

 

(3

)

 

 

 

 

 

 

(40,811

)

 

 

 

 

 

 

 

 

 

 

(40,814

)

Purchase and cancellation of convertible preferred stock

 

 

(33

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

(32,009

)

 

 

7,747

 

 

 

 

 

 

 

 

 

 

 

(24,263

)

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29,853

)

 

 

 

 

 

 

 

 

 

 

(29,853

)

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,671

 

Reduction to noncontrolling interests due to additional ownership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

412

 

 

 

 

 

 

 

 

 

 

 

(8,175

)

 

 

(7,763

)

Balance at September 30, 2016

 

 

737

 

 

$

7

 

 

 

85,061

 

 

$

851

 

 

$

1,167,756

 

 

$

1,993,343

 

 

$

(314,500

)

 

$

11,332

 

 

$

2,858,789

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

5


 

STERICYCLE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Unless the context requires otherwise, "we," "us" or "our" refers to Stericycle, Inc. and its subsidiaries on a consolidated basis.

NOTE A1 — RESTATEMENT

The unaudited quarterly financial data for the three and nine months ended September 30, 2015 has been restated for errors related to the timing of recognition of loss reserves between quarterly periods associated with the Company’s settlement of the previously disclosed TCPA Action and Qui Tam Action. The Company determined that the estimated loss contingency for the quarter ended September 30, 2015 was overstated by $28.5 million resulting in an understatement of net income of $17.2 million for the three months ended September 30, 2015. Net income was overstated by $2.0 million for the nine months ended September 30, 2015.

The Company’s Condensed Consolidated Statements of Income; Condensed Consolidated Statements of Comprehensive Income; Condensed Consolidated Statements of Cash Flows; Note 5 - Income Taxes; Note 8 - Earnings Per Common Share; and Note 12 - Geographic Information; included in this Form 10-Q have been restated to correct the misstatements described above.

The following are previously reported and restated balances of affected line items in the Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive Income, and the Condensed Consolidated Statement of Cash Flows for the three and nine months ended September 30, 2015 (Unaudited).

 

Condensed Consolidated Statement of Income

 

 

 

 

 

Three Months Ended 

September 30, 2015

 

 

Nine Months Ended

September 30, 2015

 

 

As Reported

 

Adjustment

 

Restated

 

 

As Reported

 

Adjustment

 

Restated

 

Selling, general and administrative expenses (exclusive of depreciation and amortization)

$

185,932

 

$

(28,500

)

$

157,432

 

 

$

509,047

 

$

-

 

$

509,047

 

Total costs and expenses

 

618,340

 

 

(28,500

)

 

589,840

 

 

 

1,760,531

 

 

-

 

 

1,760,531

 

Income from operations

 

100,256

 

 

28,500

 

 

128,756

 

 

 

337,073

 

 

-

 

 

337,073

 

Income before income taxes

 

81,124

 

 

28,500

 

 

109,624

 

 

 

280,751

 

 

-

 

 

280,751

 

Income tax expense

 

28,404

 

 

11,314

 

 

39,718

 

 

 

91,325

 

 

1,951

 

 

93,276

 

Net income

 

52,720

 

 

17,186

 

 

69,906

 

 

 

189,426

 

 

(1,951

)

 

187,475

 

Net income attributable to Stericycle, Inc. Common Shareholders

 

50,579

 

 

18,870

 

 

69,449

 

 

 

186,486

 

 

(267

)

 

186,219

 

EPS – basic

 

0.60