[LOGO] Safety-Kleen Corp. 1000 N. Randall Road Elgin, IL 60123 (847) 697-8460 For further information: FOR IMMEDIATE RELEASE CONTACT: MAUREEN FISK (847) 468-2452 SAFETY-KLEEN REPORTS 12% EARNINGS INCREASE FOR SECOND INTERIM PERIOD 1996 ------------------------------ ELGIN, ILLINOIS -- JULY 10, 1996 -- Safety-Kleen Corp. (NYSE:SK) today announced results for the second interim period ended June 15, 1996. Consolidated revenue for the 12-week period was $211 million, an increase of 4% compared with the similar period in 1995. Net earnings rose to $13.6 million, an increase of 12% over the second quarter in 1995. On a per share basis, earnings were $0.23, compared with $0.21 in the same quarter one year ago. For the first twenty-four weeks of 1996, consolidated revenue increased 4% to $413 million. Net earnings rose 10% to $26.7 million from $24.2 million during the same period one year ago. Earnings per share were $0.46 compared with $0.42 in 1995. Commenting on the results, President and Chief Executive Officer, John G. Johnson, Jr., noted, "As anticipated, our Fluid Recovery ("FRS") and Oil Recovery Services produced the strongest revenue growth in the second quarter with increases of 14% and 16%, respectively, compared with the second quarter of 1995. FRS revenue was up $2.5 million over the first quarter of 1996 and Oil Recovery revenue rose $5.7 million, or 19% , to $36.1 million during the quarter compared with the first quarter of 1996," added Johnson. Approximately $2.3 million of the increase in Oil Recovery revenue was derived from the acquisition of certain assets of Industrial Service Corp ("ISC"). The ISC acquisition, completed in late April of 1996, enhances Safety-Kleen's used oil collection network and volumes. - MORE - Johnson further added, "We are pleased that the average time interval between services in our parts cleaner business remained unchanged from year-end 1995. As we discussed in the first quarter results, this is a positive for the Company in that it represents a departure from the lengthening intervals witnessed for the previous six years. We are hopeful that this trend will continue in the future." Johnson noted, "In addition, our plant and recycle operations are running smoothly and efficiently. The perpetuation of these factors along with continued growth in our Imaging, Fluid Recovery, and Oil Recovery Services should produce solid revenue and earnings momentum in the second half of 1996." Imaging Services revenue for the second quarter of 1996 effectively increased $2.2 million when the prior year quarter is adjusted to reflect the elimination of approximately $4.4 million of broker-related business that Safety-Kleen has discontinued. Costs associated with the addition and training of Branch Imaging Specialists as well as facility consolidation costs impacted profitability in the quarter. "Year-to-date, Imaging revenue and gross profit are in line with our expectations," Johnson noted. European revenues were up 3% to $24 million in the second quarter and net earnings more than doubled to approximately $600,000. Safety-Kleen is a leading service company specializing in the recovery and recycling of waste fluids, including the collection and re-refining of used motor oil. Safety-Kleen stock is traded on the New York Stock Exchange under the symbol "SK". - END - CONSOLIDATED STATEMENT OF EARNINGS (thousands, except per share amounts) ----------------------------------------------------------- TWELVE TWENTY-FOUR WEEKS ENDED WEEKS ENDED ----------------------------------------------------------- June 15, June 16, June 15, June 16, 1996 1995 1996 1995 ----------------------------------------------------------- Revenue North America Automotive/Retail Repair Services $ 54,498 $ 55,911 $ 109,107 $ 111,939 Industrial Services Parts Cleaner ................. $ 28,870 27,260 57,633 54,165 Fluid Recovery ................ $ 32,973 28,841 63,421 56,365 Total Industrial .............. $ 61,843 56,101 121,054 110,530 Oil Recovery Services ........... $ 36,074 30,993 66,473 57,971 Other ........................... $ 34,978 37,019 68,012 71,549 Total North America ............. $ 187,393 180,024 364,646 351,989 Europe ............................. $ 23,962 23,168 48,432 45,762 Consolidated Revenue ................. $ 211,355 203,192 413,078 397,751 Operating costs and expenses ......... $ 154,788 148,986 300,611 291,403 Selling and administrative expenses .. $ 30,099 29,323 59,827 56,893 Operating income ..................... $ 26,468 24,883 52,640 49,455 Interest income ...................... $ 252 225 432 485 Interest expense ..................... ($ 4,446) (4,843) (8,710) (9,387) Earnings before income taxes ......... $ 22,274 20,265 44,362 40,553 Income taxes ......................... $ 8,670 8,134 17,681 16,351 Net earnings ......................... $ 13,604 $ 12,131 $ 26,681 $ 24,202 Earnings per common and common equivalent share ................... $ 0.23 $ 0.21 $ 0.46 $ 0.42 Average number of common and common equivalent shares outstanding ...... 58,041 57,906 57,983 57,847 Cash dividends per common share ...... $ 0.09 $ 0.09 $ 0.18 $ 0.18 - ----------------------------- 1. The Company's interim reporting periods are twelve weeks each for the first three reporting periods of the year and sixteen weeks for the fourth reporting period. SAFETY-KLEEN CORP. Key Statistics TWELVE WEEKS ENDED JUNE 15, 1996 1996 1995 Change ---- ---- ------ Parts Cleaners In Service at Quarter End - ---------------------------------------- Industrial .............................................. 149,535 144,145 5,390 All Other ............................................... 460,239 466,944 (6,705) Total ................................................... 609,774 611,089 (1,315) Average Service Interval in Weeks........................ 8.85 8.47 0.38 Oil Recovery Service - -------------------- Branch Collection: Used Oil/Glycol/Oily Water Gallons Collected Quarter ............................................ 35.8 Million 30.5 Million 5.3 Million Year-to-date ....................................... 62.0 Million 58.8 Million 3.2 Million Avg Revenue Per Used Oil/Glycol/Oily Water Gal. Collected Quarter ............................................ $0.267 $0.256 $0.011 Year-to-date ....................................... $0.285 $0.247 $0.038 Avg. Base Oil Selling Price Per Gallon Quarter ............................................ $1.004 $1.000 $0.004 Year-to-date ....................................... $0.999 $0.995 $0.004