EXHIBIT 99.1
[SAFETY-KLEEN 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 RECORD REVENUE AND
15% INCREASE IN NET EARNINGS FOR 1996
ELGIN, ILLINOIS, FEBRUARY 10, 1997 -- Safety-Kleen Corp. today announced record
fourth quarter and full year results for the period ended December 28, 1996.
Revenue for the year increased 7% to $923 million, compared with $859 million in
1995. Net earnings grew 15% to $61.1 million, compared with $53.3 million one
year ago. On a per share basis, earnings were $1.05, up 14% from $.92 one year
ago.
For the sixteen weeks ended December 28, 1996, revenue increased 12% to $297
million compared with $264 million in the similar quarter in 1995. Net income
was $20.4 million, up $2.4 million or 14% over the fourth quarter one year ago.
Safety-Kleen President and Chief Executive Officer, John G. Johnson, Jr.,
underlined the Company's solid performance in 1996. "We are extremely pleased
with our achievements in both revenue and earnings growth. As expected, the
Company's Industrial Services and Oil Recovery Services represent the largest
share of the revenue increase during the year. The new Vacuum Service business
for the Automotive/Retail Repair market contributed $5 million to consolidated
revenue. Additionally, our European operations posted a $7 million or 7%
increase in revenue over the previous year. The increase in net income reflects
both revenue growth and our focus on greater efficiencies in our recycle
operations together with other cost improvements."
Johnson further commented on the fourth quarter performance, "Compared with the
same quarter of 1995, revenue from our North American Industrial Parts Cleaner
Service grew 12%, our Industrial Fluid Recovery Service increased 22%, Imaging
Services was up 30%, and the Oil Recovery Service gained 18%. Our Oil Recovery
Service ("ORS") revenue reflects the acquisition made in early 1996 of certain
assets of Industrial Service Corp," Johnson noted.
Johnson further added, "Net earnings of our Oil Recovery Service were impacted
in 1996 due largely to lower lube oil selling prices witnessed in the fourth
quarter. Our average base oil selling price in the final quarter of
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SAFETY-KLEEN CORP. - 2ND PAGE
1996 decreased by approximately 7.5% from the fourth quarter of 1995. The
declining price of lube oil reflects excess industry capacity from two new
plants which are projected to add approximately a 10% increase to the total
capacity in North America."
"Looking ahead to 1997, the Company expects continued growth in its Industrial
Services and, with the addition of the new Vacuum Service, anticipates a
stronger year in the Automotive/Retail Repair Service as well. Although the
depressed base oil pricing will affect the Oil Recovery Services performance
until some of the older, less-efficient plants shut down, we remain focused on
generating double digit consolidated revenue and earnings growth in 1997,"
concluded Johnson.
Safety-Kleen is an environmental and industrial service company dedicated to
helping businesses recycle and process their waste streams. Safety-Kleen's stock
is traded on the New York Stock Exchange under the symbol "SK". For further
information, visit "SK" on the internet at www.safety-kleen.com. To request
specific information, contact finance@safety-kleen.com.
Private Securities Litigation Reform Act Disclosure
This press release contains various forward-looking statements, including
revenue and operating projections. There are many factors that could cause
actual results to differ materially, such as: adoption of new environmental laws
and regulations and changes in the ways such laws and regulations are
interpreted and enforced; general business conditions, such as the level of
competition, changes in demand for the Company's services and the strength of
the economy in general; and prices for petroleum based products.
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CONSOLIDATED STATEMENT OF EARNINGS
(thousands, except per share amounts)
------------------------ -------------------------
SIXTEEN FIFTY-TWO
WEEKS ENDED WEEKS ENDED
--------------------------------------------------
Dec. 28, Dec. 30, Dec. 28, Dec. 30,
1996 1995 1996 1995
--------------------------------------------------
Revenue
North America
Industrial Services
Parts Cleaner $41,527 $37,045 $128,801 $118,854
Fluid Recovery 46,451 38,186 143,038 122,762
--------------------------------------------------
Total Industrial 87,978 75,231 271,839 241,616
Automotive/Retail 79,662 73,314 244,969 239,668
Repair Services
Oil Recovery Services 48,350 40,805 150,838 129,039
Other 46,561 43,756 149,156 149,755
--------------------------------------------------
Total North America 262,551 233,106 816,802 760,078
Europe 34,399 30,865 106,324 99,173
--------------------------------------------------
Consolidated Revenue 296,950 263,971 923,126 859,251
Operating costs and expenses 216,086 191,827 671,971 628,469
Selling and administrative expenses 41,382 36,339 131,665 122,319
Restructuring Credit - (15,217) - (15,217)
Charge for Remediation Costs - 11,956 - 11,956
--------------------------------------------------
Operating income 39,482 39,066 119,490 111,724
Interest income 758 318 1,398 974
Interest expense (6,142) (6,172) (19,240) (20,230)
--------------------------------------------------
Earnings before income taxes 34,098 33,212 101,648 92,468
Income taxes 13,674 15,237 40,539 39,165
--------------------------------------------------
Net earnings $20,424 $17,975 $61,109 $53,303
======================== =========================
Earnings per common and
common
equivalent share $0.35 $0.31 $1.05 $0.92
======================== =========================
Average number of common and
common
equivalent shares 58,364 57,882 58,152 57,857
outstanding
======================== =========================
Cash dividends per common $0.09 $0.09 $0.36 $0.36
share
========================= =========================
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1. The 16 weeks ended December 30, 1995 included a pre-tax charge of $12
million to increase the Company's reserves for
environmental remediation costs at its facilities. In addition, the
results for the fourth interim period of 1995 included a
$15.2 million pre-tax credit to income to reduce the amount of
restructuring reserves, previously established in 1993, to the
expected required levels. These two items combined
after-tax had no effect on net earnings.
2. 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.