Stericycle (SRCL) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

FOR FURTHER INFORMATION CONTACT:

FOR IMMEDIATE RELEASE

Frank ten Brink  847-607-2012

Conference call to be held April 25, 2012 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 May 25th, 2012 by dialing 855-859-2056, access code 69060742. To hear a live simulcast of the call over the internet on www.earnings.com, or to access an audio archive of the call, go to the Investors page on Stericycle’s website atwww.stericycle.com.

STERICYCLE, INC. REPORTS RESULTS

FOR FIRST QUARTER 2012

Lake Forest, Illinois, April 25, 2012—Stericycle, Inc. (NASDAQ:SRCL), today reported financial results for the first quarter of2012.

Revenues for the quarter ended March 31, 2012 were $460.1 million, up 15.6% from $398.1 million from the first quarter last year.  Acquisitions contributed approximately $41.0 million to the current period growth in revenues compared with last year in the period.  The impact on revenues from foreign exchange in the quarter was $3.3 million unfavorable.  Gross profit was $205.3 million, up 12.5% from $182.4 million in the first quarter last year.  Gross profit as a percent of revenue was 44.6% compared with 45.8% in the first quarter of 2011.  

Net income attributable to Stericycle for the first quarter of 2012 was $64.9 million or $0.75 per diluted share compared with $55.7 million or $0.64 per diluted share for the first quarter of 2011.  Net income attributable to Stericycle for the first quarter of 2012 and first quarter of 2011 includes acquisition expenses, adjustments of contingent consideration to fair value, and other items.  Excluding the effects of these items, non-GAAP earnings per diluted share were $0.78 for the quarter (see table below).  Our non-GAAP earnings per diluted share increased 12.9% from our non-GAAP earnings per diluted share of $0.69 in the first quarter of 2011.  

Table to reconcile GAAP EPS to non-GAAP EPS*
		Three months ended March 31,
						Change
		2012		2011		$		%
GAAP EPS	$0.75		$0.64		$0.11		17.8%
Acquisition expenses	0.02		0.07
Change in Fair Value/Other	0.01		(0.02)
Non-GAAP EPS (adjusted)	$0.78		$0.69		$0.09		12.9%

*In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identified in this table. For internal purposes, including the determination of management compensation, the Company excludes these items from results when evaluating operating performance. This table and the Company’s internal use of non-GAAP earnings per share

are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.

Cash flow from operations was $99.6 million and $65.6 million for the three months ended March 31, 2012 and 2011, respectively.

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

Safe Harbor Statement:Statements in this press release may contain forward-looking statements that involve risks and uncertainties, some of which are beyond our control (for example, general economic 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 medical waste collection and treatment and increases in transportation and other operating costs, as well as the other factors described in our filings with the U.S. Securities and Exchange Commission. 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

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands, except for share and per share data
		March 31,		December 31,
		2012		2011
		(Unaudited)		(Audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	30,262	$	22,511
Short-term investments		420		416
Accounts receivable, less allowance for doubtful   accounts of $19,395 in 2012 and $18,905 in 2011		315,144		290,854
Deferred income taxes		19,055		19,314
Prepaid expenses		23,151		22,466
Other current assets		39,046		35,035
Total Current Assets		427,078		390,596
Property, Plant and Equipment, net		301,274		293,912
Goodwill		1,924,240		1,913,703
Intangible assets, less accumulated amortization of   $47,582 in 2012 and $42,050 in 2011		582,467		546,618
Other assets		40,175		32,261
Total Assets	$	3,275,234	$	3,177,090
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	91,038	$	100,526
Accounts payable		71,806		66,635
Accrued liabilities		146,333		140,521
Deferred revenues		13,941		12,855
Other current liabilities		10,699		6,377
Total Current Liabilities		333,817		326,914
Long-term debt, net of current portion		1,250,769		1,284,113
Deferred income taxes		335,913		313,733
Other liabilities		26,997		25,079
Equity:
Common stock (par value $.01 per share, 120,000,000   shares authorized, 84,994,111 issued and outstanding   in 2012 and 84,696,227 issued and outstanding in 2011)		850		847
Additional paid-in capital		22,798		--
Accumulated other comprehensive loss		(29,538)		(45,984)
Retained earnings		1,305,215		1,243,303
Total Stericycle, Inc. Equity		1,299,325		1,198,166
Noncontrolling interest		28,413		29,085
Total Equity		1,327,738		1,227,251
Total Liabilities and Equity	$	3,275,234	$	3,177,090

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

In thousands, except for share and per share data
		Three Months Ended March 31,
		2012			2011
		$	%		$	%
Revenues	$	460,077	100.0	$	398,126	100.0
Cost of revenues		244,182	53.1		205,816	51.7
Depreciation – cost of revenues		10,588	2.3		9,818	2.5
Restructuring costs		--	0.0		62	0.0
Gross profit		205,307	44.6		182,430	45.8
Selling, general and administrative expenses		77,807	16.9		69,972	17.6
Depreciation – SG&A		2,151	0.5		1,938	0.5
Amortization		4,979	1.1		3,347	0.8
Total SG&A expense and amortization		84,937	18.5		75,257	18.9
Income from operations before    acquisitions, integration, and other expenses		120,370	26.2		107,173	26.9
Acquisition expenses		1,539	0.3		5,938	1.5
Change in fair value of contingent consideration		1,204	0.3		(2,140)	-0.5
Restructuring costs and plant closure expense		86	0.0		196	0.0
Integration expenses		1,279	0.3		766	0.2
Income from operations		116,262	25.3		102,413	25.7
Other income (expense):
Interest income		92	0.0		184	0.0
Interest expense		(12,766)	-2.8		(11,372)	-2.9
Other expense, net		(558)	-0.1		(263)	-0.1
Total other income (expense)		(13,232)	-2.9		(11,451)	-2.9
Income before income taxes		103,030	22.4		90,962	22.8
Income tax expense		37,715	8.2		34,376	8.6
Net income		65,315	14.2		56,586	14.2
Less: net income attributable to noncontrolling interests		458	0.1		912	0.2
Net income attributable to Stericycle, Inc.	$	64,857	14.1	$	55,674	14.0
Earnings per share – diluted	$	0.75		$	0.64
Weighted average number of common shares    outstanding – diluted		86,587,944			87,526,683

STERICYCLE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

In thousands
		Three Months Ended March 31,
		2012		2011
OPERATING ACTIVITIES:
Net income	$	65,315	$	56,586
Adjustments to reconcile net income to net cash provided   by operating activities:
Change in fair value of contingent consideration		1,204		(2,140)
Stock compensation expense		4,085		3,863
Excess tax benefit of stock options exercised		(5,061)		(8,092)
Depreciation		12,739		11,756
Amortization		4,979		3,347
Deferred income taxes		11,921		16,051
Changes in operating assets and liabilities, net of effect of   acquisitions and divestitures:
Accounts receivable		(14,493)		(11,615)
Accounts payable		2,101		(433)
Accrued liabilities		12,623		799
Deferred revenues		1,029		(34)
Other assets and liabilities		3,119		(4,503)
Net cash provided by operating activities		99,561		65,585
INVESTING ACTIVITIES:
Payments for acquisitions, net of cash acquired		(28,182)		(19,543)
Purchases of short-term investments		(2)		(1,240)
Proceeds from sale of business and other assets		--		389
Capital expenditures		(17,049)		(11,692)
Net cash used in investing activities		(45,233)		(32,086)
FINANCING ACTIVITIES:
Net repayment of long-term debt and other obligations		(8,571)		(24,100)
Net repayments on senior credit facility		(52,856)		(86,044)
Payments on capital lease obligations		(640)		(463)
Purchase and cancellation of treasury stock		(2,945)		--
Proceeds from other issuance of common stock		12,494		14,811
Excess tax benefit of stock options exercised		5,061		8,092
Net cash used in financing activities		(47,457)		(87,704)
Effect of exchange rate changes on cash		880		1,808
Net increase/ (decrease) in cash and cash equivalents		7,751		(52,397)
Cash and cash equivalents at beginning of period		22,511		77,053
Cash and cash equivalents at end of period	$	30,262	$	24,656
NON-CASH ACTIVITIES:
Net issuance of obligations for acquisitions	$	14,883	$	730