SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
February 14, 1997
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Date of Report (Date of earliest event reported)
SAFETY-KLEEN CORP.
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(Exact name of registrant as specified in its charter)
WISCONSIN
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(State or other jurisdiction of incorporation)
1-8513 39-6090019
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(Commission File Number) (IRS Employer Identification No.)
1000 NORTH RANDALL ROAD, ELGIN, ILLINOIS 60123-7857
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 697-8460
Item 5. Other Events
The Company sent the following letter to analysts after the close of business
on Friday, February 14, 1997.
Safety-Kleen Corp.
[logo] 1000 N. Randall Road
Elgin, Illinois 60123
(847) 697-8460
For further information:
February 14, 1997
VIA FAX TO ANALYST DISTRIBUTION LIST
Attached is a copy of the key statistics table which was not included with the
fourth quarter release, as well as depreciation and amortization for 1996 fourth
quarter and year end. The attached balance sheet is unaudited. We are in the
process of preparing new measurements for our primary services which we believe
are more representative of Safety-Kleen's business today. Once these are
available, we will discontinue the use of the attached statistics sheet.
We understand that this change in format will require certain adjustments to
your existing models, however, it is our goal to help you evaluate our business
as accurately as possible. We will have this new disclosure format available
with our first quarter 1997 earnings release. It is also our intention to issue
first quarter results after market on April 11, 1997 so that everyone will have
the opportunity to review the release prior to our conference call at 10:00 a.m.
central time, on Monday, April 14.
Thank you for your assistance in this process.
Maureen Fisk
Investor Relations
two pages to follow
SAFETY-KLEEN CORP.
KEY STATISTICS
SIXTEEN WEEKS ENDED DECEMBER 28, 1996
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Percent
1996 1995 Change Change
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Parts Cleaners In Service at Quarter End
Industrial 152,477 147,451 5,026 3.4%
All Other 461,834 460,068 1,766 0.4%
Total 614,311 607,519 6,792 1.1%
Average Service Interval in Weeks 8.80 8.87 (0.07) (0.8%)
Oil Recovery Service
Branch Collection:
Used Oil/Glycol/Oily Water Gallons Collected
Quarter 52.2 Million 37.9 Million 14.3 Million 37.7%
Year-to-date 155.4 Million 126.6 Million 28.8 Million 22.7%
Avg Revenue Per Used Oil/Glycol/Oily Water Gal. Collected
Quarter $0.260 $0.297 ($0.037) (12.5%)
Year-to-date $0.264 $0.269 ($0.005) (1.9%)
Avg. Base Oil Selling Price Per Gallon
Quarter $0.919 $0.993 ($0.074) (7.5%)
Year-to-date $0.971 $0.994 ($0.023) (2.3%)
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TOTAL
DEPRECIATION AMORTIZATION DEPREC./AMORT.
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QUARTERLY YTD QUARTERLY YTD QUARTERLY YTD
1996 1ST 14,094 14,094 3,695 3,695 17,789 17,789
1996 2ND 13,476 27,570 4,205 7,900 17,681 35,470
1996 3RD 13,238 40,808 3,774 11,674 17,012 52,482
1996 4TH 20,022 60,830 5,237 16,911 25,259 77,741
Consolidated Balance Sheets
SAFETY-KLEEN CORP. AND SUBSIDIARIES
As of December 28, 1996 and December 30, 1995
Dollars expressed in thousands
ASSETS DECEMBER 28, 1996 December 30, 1995
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CURRENT ASSETS
Cash and cash equivalents $10,648 $22,238
Trade accounts receivable, less allowances 132,436 110,120
of $8,416 and $7,969 respectively
Inventories 49,971 36,020
Deferred tax assets 11,973 17,984
Prepaid expenses and other 25,105 19,846
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230,133 206,208
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EQUIPMENT AT CUSTOMERS AND COMPONENTS, AT COST, LESS
accumulated depreciation of $45,811 and $44,072, respectively 124,491 117,383
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PROPERTY, AT COST
Land 49,340 49,469
Buildings and improvements 238,296 242,886
Leasehold improvements 34,168 31,745
Machinery and equipment 421,134 391,519
Autos and trucks 129,319 129,026
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872,257 844,645
Less accumulated depreciation and amortization 349,921 315,092
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522,336 529,553
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INTANGIBLE ASSETS, AT COST
Goodwill 92,112 95,233
Other 122,203 100,077
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214,315 195,310
Less accumulated amortization 77,106 68,008
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137,209 127,302
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OTHER ASSETS
Deferred tax assets 24,135 24,957
Other 6,519 3,647
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30,654 28,604
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$1,044,823 $1,009,050
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
Trade accounts payable $69,684 $62,795
Accrued salaries, wages and employee benefits 25,510 29,197
Other accrued expenses 29,237 37,847
Insurance reserves 13,621 13,101
Accrued environmental liabilities 8,941 11,561
Income taxes payable 10,800 8,175
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157,793 162,676
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LONG-TERM DEBT, LESS CURRENT PORTION 276,954 283,715
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DEFERRED TAX LIABILITIES 49,849 43,111
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ACCRUED ENVIRONMENTAL LIABILITIES 40,260 42,713
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OTHER LIABILITIES 39,677 43,400
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COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 9)
SHAREHOLDERS' EQUITY
Preferred stock ($.10 par value; authorized
1,000,000 shares; none issued) - -
Common stock ($.10 par value;
authorized 300,000,000 shares;
issued and outstanding 58,246,939
shares and 57,868,541 shares, respectively) 5,825 5,787
Additional paid-in capital 192,755 186,365
Retained earnings 296,225 256,052
Minimum pension liability adjustment - (1,226)
Cumulative translation adjustments (14,515) (13,543)
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480,290 433,435
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$1,044,823 $1,009,050
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SIGNATURE
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 hereunto duly authorized.
SAFETY-KLEEN CORP.
Date: February 14, 1997 By: /s/ ROBERT W. WILLMSCHEN, JR.
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Robert W. Willmschen, Jr.
Senior Vice President Finance,
and Secretary-Chief Financial
Officer