EXHIBIT 99
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Safety-Kleen Corp.
1000 North Randall Road
Elgin, IL 60123
(847) 697-8460
For further information:
FOR IMMEDIATE RELEASE CONTACT: MAUREEN FISK
(847) 468-2452
SAFETY-KLEEN REPORTS SECOND QUARTER 1997
AND YEAR TO DATE RESULTS
ELGIN, ILLINOIS -- JULY 8, 1997 -- Safety-Kleen Corp. (NYSE:SK) today announced
results for the second quarter ended June 14, 1997. Consolidated revenue for the
12-week period was $230 million, up 9% compared with $211 million in the same
quarter in 1996. Net earnings were $13.3 million, or $0.23 per share, compared
with $13.6 million, or $0.23, in the same quarter one year ago.
For the first twenty-four weeks of 1997, consolidated revenue increased 9% from
the previous year to $450 million. Net earnings for the first two quarters of
1997 totaled $25.2 million compared with $26.7 million in 1996. On a per share
basis, earnings were $0.43 in 1997 versus $0.46 one year ago.
Commenting on the results, President and Chief Executive Officer, John G.
Johnson, Jr., stated, "We are pleased with the revenue increases compared with
the previous year. Revenue from our Industrial Parts Cleaner Service grew 10%
while the Fluid Recovery service jumped nearly 18%, reflecting the addition of
the Lab Pack Service announced earlier this year. The Lab Pack market is in
excess of $400 million and we see an excellent opportunity to leverage existing
relationships as we introduce this service. Automotive/Retail Repair Services
increased 11% compared with the second quarter last year due primarily to the
contribution from Vacuum Services. Our new services, which we define as Imaging,
Vacuum and Lab Pack, collectively contributed $11.5 million in revenue during
the quarter or approximately $50 million on an annualized basis."
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SAFETY-KLEEN CORP.
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Johnson added, "We continue to move forward with our new business strategy and
currently have the next extension to our Industrial Fluid Recovery Service in
the test stage."
Johnson further noted, "On the earnings side, the Company's margins have been
impacted by the start up costs associated with our new businesses. We believe
these services will begin to contribute to the earnings momentum by year-end.
Our results also continue to be negatively affected by the depressed lube oil
pricing. Had pricing remained constant with prices in the second quarter of
1996, consolidated revenue and net earnings for the second quarter would have
increased by 10% and 8%, respectively," Johnson concluded.
The Company also announced that its European operations continued to show solid
improvement for the quarter with revenue increasing 7%, excluding the impact of
currency fluctuations. Net earnings doubled those of the corresponding period
last year.
Safety-Kleen is a leading industrial and environmental service company dedicated
to helping businesses recycle and process their waste streams. Safety-Kleen
stock is traded on the New York Stock Exchange under the symbol "SK". For
further information, contact Safety-Kleen via e-mail: FINANCE@SAFETY-KLEEN.COM
PRIVATE SECURITIES LITIGATION REFORM ACT DISCLOSURE
This press release contains various forward-looking statements, including
revenue and operating projections. There are many factors that could cause
actual results to differ materially, such as: adoption of new environmental laws
and regulations; general business conditions, such as the level of competition;
changes in demand for the Company's services and the price of petroleum based
products.
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CONSOLIDATED STATEMENT OF EARNINGS
($ in thousands, except per share amounts)
TWELVE TWENTY-FOUR
WEEKS ENDED WEEKS ENDED
Jun. 14,1997 Jun. 15, 1996 Jun. 14,1997 Jun. 15, 1996
Revenue
North America
Automotive/Retail Repair Services $60,559 $54,498 $119,876 $109,107
Industrial Services
Parts Cleaner 31,737 28,870 62,766 57,633
Fluid Recovery 38,746 32,973 73,103 63,421
Total Industrial 70,483 61,843 135,869 121,054
Oil Recovery Services 35,656 36,074 68,514 66,473
Other 38,208 34,978 75,457 68,012
Total North America 204,906 187,393 399,716 364,646
Europe 25,022 23,962 50,442 48,432
Consolidated Revenue 229,928 211,355 450,158 413,078
Operating costs and expenses 171,707 154,788 335,791 300,611
Gross profit 58,221 56,567 114,367 112,467
Selling and administrative expenses 32,730 30,099 65,305 59,827
Operating income 25,491 26,468 49,062 52,640
Interest expense, net 3,991 4,194 8,125 8,278
Earnings before income taxes 21,500 22,274 40,937 44,362
Income taxes 8,159 8,670 15,758 17,681
Net earnings $13,341 $13,604 $25,179 $26,681
Earnings per common and common
equivalent share $0.23 $0.23 $0.43 $0.46
Average number of common and common
equivalent shares outstanding 58,286 58,041 58,355 57,983
Cash dividends per common share $0.09 $0.09 $0.18 $0.18
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1. The Company's interim reporting periods are twelve weeks each for the first
three reporting periods of the year and seventeen and sixteen weeks for the
fourth reporting period of 1997 and 1996, respectively.
CONDENSED CONSOLIDATED BALANCE SHEET
($ in millions)
JUNE 14, 1997 DEC. 28, 1996
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Assets
Current Assets $ 240.3 $ 230.1
Property, plant and equipment, net 634.9 646.8
Other assets 168.9 167.9
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$ 1,044.1 $ 1,044.8
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Liabilities and Shareholders' Equity
Current liabilities $ 162.2 $ 157.8
Long-term debt 261.7 277.0
Other liabilities and deferrals 133.0 129.7
Shareholders' equity 487.2 480.3
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$ 1,044.1 $ 1,044.8
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