[SK LOGO]
FOR RELEASE: IMMEDIATELY CONTACT: ROBERT W. WILLMSCHEN
(708) 468-2002
LAURENCE M. RUDNICK
(708) 468-2408
SAFETY-KLEEN REPORTS RECORD REVENUE, 24% GAIN IN NET EARNINGS FOR THE FIRST
- ---------------------------------------------------------------------------
INTERIM PERIOD.
- ---------------
ELGIN, IL, April 17, 1995 -- Donald W. Brinckman, Chairman of Safety-Kleen
Corp., announced today that revenue for the Company's first interim reporting
period increased 10% to a first period record of $195 million. Net earnings
increased 24% to $12.1 million. Earnings per share were $.21, up from $.17 in
1994.
Brinckman said, "Our revenue growth rate accelerated from the pace we were
running at the end of last year. Since mid-year 1994, we have increased the
number of Branch Industrial Managers by 45% to accelerate our penetration of the
Industrial market. Revenue of the North American Industrial Fluid Recovery
Service increased 20% over last year's first quarter to $27.5 million. Revenue
of our European operations also grew at a 20% rate to $22.6 million in the
current quarter. Approximately half of the European revenue growth was the
result of changes in currency translation rates. Virtually all businesses
registered revenue gains in the current quarter."
Revenue of the North American Automotive/Retail Repair Service was up 1% in the
current quarter and revenue of the North American Industrial Parts Cleaner
Service was up 2%. The total parts cleaner units in service worldwide increased
by 17,000 in the current quarter and almost 30,000 units or 5% from the end of
the first quarter 1994. Approximately 8,500 of these units resulted from an
acquisition in the first quarter 1995. The Company continued to convert
customers to the new cyclonic parts cleaner technology. At the end of the first
quarter, 123,000 cyclonic parts cleaner machines were in service at customers,
an increase of 20,000 units from the beginning of the year. Safety-Kleen also
introduced a new aqueous parts cleaner to allow customers to meet the upcoming
OSHA regulation for brake cleaning.
Brinckman added, "Several operations which reported losses or break-even results
in the first quarter of 1994 have shown substantial improvement in 1995. The
Oil Recovery Service, which had a net loss of $900,000 in the first interim
period of 1994, recorded net earnings of $400,000 in the current period. Our
European operations had net earnings of $500,000 in the current quarter, up from
break-even last year."
Brinckman concluded, "Our margins in the current quarter continued to expand as
we ran increased volumes through our existing infrastructure and increased
prices in selected markets. We expect continued improvement in margins for the
full year 1995."
Safety-Kleen Corp. is the world's largest recycler of automotive and industrial
hazardous and non-hazardous fluids. Safety-Kleen's common stock is traded on
the New York Stock Exchange under the trading symbol SK.
# # #
CONSOLIDATED STATEMENT OF EARNINGS
(thousands, except per share amounts)
TWELVE
WEEKS ENDED
------------------------------
Mar. 25, 1995 Mar. 26, 1994
------------- -------------
Revenue
North America
Automotive/Retail Repair Services $ 56,028 $ 55,577
-------- --------
Industrial Services
Parts Cleaner 26,905 26,353
Fluid Recovery 27,524 23,022
-------- --------
Total Industrial 54,429 49,375
Oil Recovery Services 26,978 24,543
Other 34,530 28,414
-------- --------
Total North America 171,965 157,909
Europe 22,594 18,903
-------- --------
Total Consolidated Revenue 194,559 176,812
-------- --------
Operating costs and expenses 142,417 131,312
Selling and administrative 27,570 26,106
expenses
-------- --------
Operating income 24,572 19,394
Interest income 260 128
Interest expense (4,544) (2,962)
-------- --------
Earnings before income taxes 20,288 16,560
Income taxes 8,217 6,855
-------- --------
Net earnings $ 12,071 $ 9,705
======== ========
Earnings per common and common
equivalent share $ 0.21 $ 0.17
======== ========
Average number of common and common
equivalent shares outstanding 57,819 57,697
======== ========
Cash dividends per common share $ 0.09 $ 0.09
======== ========
- ----------------------------------
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 MARCH 25, 1995
-----------------------------------------------------
Percent
1995 1994 Change Change
=====================================================
Parts Cleaners In Service Qtr. End*
- -----------------------------------
Industrial 140,838 128,835 12,003 9.3%
All Other 462,838 445,139 17,699 4.0%
Total 603,676 573,974 29,702 5.2%
Average Service Interval in Weeks 8.14 6.75 1.39 20.6%
Oil Recovery Service
- --------------------
Used Oil/Glycol Gallons Collected - QTR. 29.8 Million 26.6 Million 3.2 Million 12.0%
Average Price Per Used Oil/Glycol Ga. Collected-QTR.
Branch Collections $ 0.154 $ 0.133 $ 0.021 15.8%
Bulk/Industrial Collection $ (0.084) $ (0.052) $ (0.032) 61.5%
Total $ 0.115 $ 0.114 $ 0.001 0.9%
Avg. Base Oil Selling Price Per Gallon - QTR. $ 0.988 $ 0.885 $ 0.103 11.6%
-----------------------------------------------------
* The number of Parts Cleaners in the all other category in 1995, include approximately 8,500
machines added as a result of an acquisition completed during the first quarter of 1995.