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FOR RELEASE: IMMEDIATELY CONTACT: ROBERT W. WILLMSCHEN
(708) 468-2002
LAURENCE M. RUDNICK
(708) 468-2408
SAFETY-KLEEN REPORTS RECORD REVENUE, 6% GAIN IN NET EARNINGS FOR THE SECOND
INTERIM PERIOD.
ELGIN, IL, July 7, 1995 -- Donald W. Brinckman, Chairman of Safety-Kleen Corp.,
announced today that revenue for the Company's second interim reporting period
increased 11% to a record $203 million. Net earnings increased 6% to $12.1
million. Earnings per share was $.21, up from $.20 in 1994. Year-to-date revenue
increased 10% to $398 million and net earnings increased 14% to $24.2 million.
Year-to-date earnings per share were $.42 compared to $.37 in 1994.
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 4%. Total parts cleaner units in service worldwide increased by
7,400 during the current quarter. The total units in service increased
approximately 34,000 units or 6% from the end of the second quarter 1994.
Approximately 9,000 of these units resulted from acquisitions. The Company
continued to convert customers to the new cyclonic parts cleaner technology. At
the end of the second quarter, 142,000 cyclonic parts cleaner machines were in
service at customers, an increase of 39,000 units from the beginning of the
year.
Brinckman said, "We have experienced good growth in our Industrial Fluid
Recovery Service in North America, with revenue up 15% over last year to $28.9
million in the current quarter. We have continued to add Branch Industrial
Managers to increase our penetration of the market. Our Oil Recovery Service
revenue grew 13% in the current quarter to $31.0 million. The net earnings of
this business was $1.3 million in the current quarter, up from break-even last
year. The improved profitability stems largely from increased prices for
collection of used oil and increased prices for lubricating oil products.
Revenue of our European operations grew 18% to $23.2 million, with approximately
two-thirds of the growth resulting from changes in currency translation rates."
"Revenue of our new Imaging Services business was $7.1 million in the current
quarter compared to less than $100,000 last year. However, this business
continues to incur higher than expected startup losses as we integrate the
acquisitions we made in late 1994 and early 1995 and train our branch service
representatives to service this market."
"Our year-to-date operating margin of 12.4% improved from 11.7% in 1994. We
expect continued margin improvement for the full year 1995 due to continuing
conversion of customers to the cyclonic parts cleaner service, improved pricing
in selected markets, continued growth in the Fluid Recovery Service and a
reduction in Imaging Services startup losses."
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.
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CONSOLIDATED STATEMENT OF EARNINGS
(thousands, except per share amounts)
TWELVE TWENTY-FOUR
WEEKS ENDED WEEKS ENDED
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June 17, 1995 June 18, 1994 June 17, 1995 June 18, 1994
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Revenue
North America
Automotive/Retail Repair Services $55,911 $54,958 $111,939 $110,535
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Industrial Services
Parts Cleaner 27,260 25,932 54,165 52,285
Fluid Recovery 28,841 24,989 56,365 48,011
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Total Industrial 56,101 50,921 110,530 100,296
Oil Recovery Services 30,993 27,507 57,971 52,050
Other 37,019 30,396 71,549 58,810
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Total North America 180,024 163,782 351,989 321,691
Europe 23,168 19,552 45,762 38,455
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Total Consolidated Revenue $203,192 $183,334 $397,751 $360,146
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Operating costs and expenses 148,986 134,454 291,403 265,766
Selling and administrative expenses 29,323 25,866 56,893 51,972
Operating income 24,883 23,014 49,455 42,408
Interest income 225 129 485 257
Interest expense (4,843) (3,260) (9,387) (6,222)
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Earnings before income taxes 20,265 19,883 40,553 36,443
Income taxes 8,134 8,415 16,351 15,270
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Net earnings $12,131 $11,468 $24,202 $21,173
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Earnings per common and common
equivalent share $0.21 $0.20 $0.42 $0.37
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Average number of common and common
equivalent shares outstanding 57,906 57,710 57,847 57,705
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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 sixteen weeks for the fourth
reporting period.
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SAFETY-KLEEN CORP.
Key Statistics
TWENTY-FOUR WEEKS ENDED JUNE 17, 1995 AND JUNE 18, 1994
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Percent
1995 1994 Change Change
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Parts Cleaners In Service Qtr. End*
-----------------------------------
Industrial 144,145 130,857 13,288 10.2%
All Other 466,944 446,054 20,890 4.7%
Total 611,089 576,911 34,178 5.9%
Average Service Interval in Weeks 8.47 7.09 1.38 19.5%
Oil Recovery Service
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Used Oil/Glycol Gallons Collected
Quarter 30.2 Million 30.1 Million .1 Million 0.3%
Year-to-Date 58.8 Million 55.6 Million 3.2 Million 5.8%
Avg Price Per Used Oil/Glycol Gal. Collected at Branches
Quarter $0.162 $0.137 $0.025 18.3%
Year-to-Date $0.158 $0.136 $0.022 16.2%
Avg. Base Oil Selling Price Per Gallon
Quarter $1.000 $0.900 $0.100 11.1%
Year-to-Date $0.995 $0.893 $0.102 11.4%
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* The number of Parts Cleaners in the all other category in 1995, include
approximately 9,000 machines added as a result of acquisitions.