EXHIBIT 99.1
[Safety Kleen News Letterhead]
FOR RELEASE: IMMEDIATELY CONTACT: ROBERT W. WILLMSCHEN
(708) 468-2002
LAURENCE M. RUDNICK
(708) 468-2408
SAFETY-KLEEN REPORTS THIRD INTERIM PERIOD REVENUE GAIN OF 8%, EARNINGS PER
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SHARE DECLINE OF 10%
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ELGIN, IL, September 28, 1995 -- John G. Johnson, Jr., President and Chief
Executive Officer of Safety-Kleen Corp., announced today that revenue for the
Company's third interim reporting period increased 8% to $198 million. Net
earnings decreased 9% to $11.1 million. Earnings per share were $.19, compared
to $.21 in 1994. Year-to-date revenue increased 10% to $595 million and net
earnings increased 6% to $35.3 million. Year-to-date earnings per share were
$.61 compared to $.58 in 1994.
Mr. Johnson said, "As we previously announced at the end of August, our
operating results this quarter were adversely affected by high waste processing
and disposal costs, including the costs for disposal of waste-derived fuels. In
the second interim period of 1995, the Company completed negotiations and
extended its long-term exclusive supply arrangements with two cement plants and
entered into arrangements to manage the waste-derived fuels programs at two
additional plants. The Company's cost per gallon for disposal of waste-derived
fuel under the new agreements is higher than its historical cost per gallon. In
addition, three of these plants were unable to burn normal volumes of waste-
derived fuel during the third interim period due to unscheduled fuel burning
outages. The total impact of the new agreements and the unscheduled fuel burning
outages reduced third quarter net earnings by an estimated $1 million."
Revenue of the Company's 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 7%. Total parts cleaner units in service worldwide
increased approximately 33,000 units, or 6%, from the end of the third quarter
1994. Approximately 9,000 of these units resulted from acquisitions.
Johnson said, "Revenue of our Industrial Fluid Recovery Service in North America
increased 10% over last year to $28.2 million in the current quarter. We
continue to place increased emphasis on the Industrial market and believe that
it offers considerable growth opportunities for the Company. Over the past year,
we have increased the number
[RECYCLING LOGO] Printed on recycled paper.
[Safety-Kleen LOGO]
of Branch Industrial Managers selling to this market by over 40%. While revenue
growth in the current quarter was less than the 15% growth rate experienced in
the second quarter, we anticipate improved growth in this line of business."
"Our Oil Recovery Service revenue grew 10% in the current quarter to $30.3
million. This business earned $1.6 million in the current quarter, up from $.9
million 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 15% to $22.5 million, with
approximately 40% of the growth resulting from changes in currency translation
rates."
Johnson added, "We continue to work on expanding our new Imaging Services
business, including integration of the acquisitions made in late 1994 and early
1995. Year-to-date, we have incurred startup losses of almost $2.4 million pre-
tax, including approximately $1 million in the current quarter. While this
business has been slower to develop than anticipated, we believe that it offers
good long-term potential for the Company."
Johnson concluded, "We expect revenues to continue to grow and we are addressing
the plant cost issues that lowered operating margins in the current quarter.
While unscheduled fuel burning outages at cement kilns are unpredictable, we
would expect an improvement in operating costs for these plants in the near
future. In addition, we have projects underway to reduce plant operating costs
over time, although not all of those issues will be resolved in the fourth
quarter."
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)
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TWELVE THIRTY-SIX
WEEKS ENDED WEEKS ENDED
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Sept. 9, 1995 Sept. 10, 1994 Sept. 9, 1995 Sept. 10, 1994
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Revenue
North America
Automotive/Retail Repair Services $54,415 $53,796 $166,354 $164,331
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Industrial Services
Parts Cleaner 27,644 25,825 81,809 78,110
Fluid Recovery 28,211 25,700 84,576 73,711
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Total Industrial 55,855 51,525 166,385 151,821
Oil Recovery Services 30,263 27,535 88,234 79,585
Other 34,450 29,726 105,999 88,536
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Total North America 174,983 162,582 526,972 484,273
Europe 22,546 19,567 68,308 58,022
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Consolidated Revenue 197,529 182,149 595,280 542,295
Operating costs and expenses 145,239 133,505 436,642 399,271
Selling and administrative expenses 29,087 24,634 85,980 76,606
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Operating income 23,203 24,010 72,658 66,418
Interest income 171 133 656 390
Interest expense (4,671) (3,657) (14,058) (9,879)
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Earnings before income taxes 18,703 20,486 59,256 56,929
Income taxes 7,577 8,274 23,928 23,544
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Net earnings $11,126 $12,212 $35,328 $33,385
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Earnings per common and common
equivalent share $0.19 $0.21 $0.61 $0.58
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Average number of common and common
equivalent shares outstanding 57,849 57,847 57,854 57,738
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Cash dividends per common share $0.09 $0.09 $0.27 $0.27
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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.
[Safety-Kleen LOGO]
SAFETY-KLEEN CORP.
Key Statistics
Thirty-Six Weeks Ended Sept. 9, 1995 and Sept. 10, 1994
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Percent
1995 1994 Change Change
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Parts Cleaners In Service Qtr. End*
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Industrial 146,739 133,466 13,273 9.9%
All Other 466,512 446,578 19,934 4.5%
Total 613,251 580,044 33,207 5.7%
Average Service Interval in Weeks 8.69 7.42 1.27 17.1%
Oil Recovery Service
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Used Oil/Glycol Gallons Collected
Quarter 29.8 Million 31.2 Million -1.4 Million -4.5%
Year-to-Date 90.9 Million 88.9 Million 2.0 Million 2.3%
Avg Price Per Used Oil/Glycol Gal.
Collected at Branches
Quarter $0.178 $0.143 $0.035 24.5%
Year-to-Date $0.165 $0.138 $0.027 19.6%
Avg. Base Oil Selling Price Per Gallon
Quarter $0.993 $0.945 $0.048 5.1%
Year-to-Date $0.995 $0.910 $0.085 9.3%
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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.