The stock seemed rather listless today, but I decided to hold, so we'll see what tomorrow brings...
Stericycle Announces 92 Percent Increase in Fourth Quarter Revenues; 166 Percent Increase in Fourth Quarter Gross Profits; Full Year Revenues Up 88 Percent
DEERFIELD, Ill., March 17 /PRNewswire/ -- Stericycle, Inc. (Nasdaq: SRCL - news), the second largest provider of regulated medical waste management services in the U.S., today announced substantial increases in fourth quarter and audited year end results for 1997. According to management, the highly successful quarterly and year-end results were driven by the company's strategic acquisitions, as well as its ability to generate additional internal growth from heightened sales and marketing activities.
''Our 1997 fourth quarter revenues of $12.7 million increased 92 percent over fourth quarter 1996 revenues,'' commented Mark Miller, president and chief executive officer. ''Gross profits continued to improve with the most recent fourth quarter realizing more than a 166 percent increase over the same quarter of 1996.'' Net income for the quarter ended December 31, 1997 was $0.6 million, or $0.06 per diluted share, versus a net loss of $0.8 million, or a net loss of $0.08 per diluted share, in the same quarter of 1996. Gross profits as a percent of revenue increased from 21 percent in the fourth quarter of 1996 to 29 percent in the fourth quarter of 1997.
In commenting on fourth quarter accomplishments, Miller noted that continued improvement in the mix of revenues from high-margin alternate site customers -- subacute care facilities, outpatient clinics, medical and dental offices, dialysis centers, etc. -- and leveraging of the Company's service infrastructure led to the improvement in gross profit margins and net income per share.
Revenues for the twelve months ended on December 31, 1997 increased 88 percent over the, prior year, to $46.2 million; year to year gross profits rose by more than 136 percent; and gross profits as a percentage of revenues improved from 21 percent to 26 percent. The Company reported net income of $1.4 million -- an improvement of $3.8 million -- over the net loss of $2.4 million in 1996. Diluted net income per share for 1997 was $0.13 compared with a net loss of $0.30 per diluted share for 1996.
''Our results for the full year validate our ongoing strategic plan,'' noted Miller. ''The Company has acquired 17 businesses between 1993 and early 1998, in the process adding over $33 million to its annualized revenues. Our largest acquisitions, such as Environmental Control in 1997 which opened the New York City market for us, broaden the service areas where we can leverage our existing service infrastructure. Those larger acquisitions also make possible additional, tuck-in acquisitions in contiguous areas and open up more of the high margin alternative care market to us.''
Looking Ahead to 1998
According to Miller, the medical waste treatment industry continues to consolidate. Increased government regulation and higher operating costs are making it difficult for independent haulers and incinerator operators to compete with integrated companies like Stericycle, which operate their own low-cost treatment plants.
''Because of our hard won position as the second largest company in the medical waste management market,'' said Miller, ''we are continuously reviewing potential acquisitions of all sizes and we analyze many of them for suitability with our current operations. Stericycle has signed confidentiality agreements with a number of companies in both the large and small categories which we are examining as possible future acquisition candidates. As a result of the continued regulatory and costs pressures on medical waste incinerators, we are continuing to see signs toward industry consolidation.''
Stericycle is the second largest provider of regulated medical waste management services in the U.S. The Company's proprietary Electro-Thermal- Deactivation process destroys human pathogens without producing harmful airborne emissions and permits resource recovery. The Company operates on a multi-regional basis. Its services include medical waste collection, transportation, treatment, disposal, reduction and resource recovery.
From time to time, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, acquisition activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor to forward-looking statements. A variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect operations, performance, development and results of the Company's business include the following: difficulties and delays with respect to the completion 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 the expansion into new markets.
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