Exhibit 99
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NEWS
FOR IMMEDIATE RELEASE CONTACT: LAURENCE RUDNICK
(847) 468-2408
MAUREEN FISK
(847) 468-2452
SAFETY-KLEEN CORP. REPORTS FIRST INTERIM PERIOD
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1996 REVENUE INCREASE AND EARNINGS GAIN
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ELGIN, ILLINOIS -- APRIL 15, 1996 -- Safety-Kleen Corp. (NYSE/SK) today
announced that the Company recorded net earnings for the first interim reporting
period of 1996 of $13.1 million, an increase of approximately $1 million or 8%
compared with the first interim period of 1995. Consolidated revenue for the
reporting period was $201.7 million, an increase of 4% over the prior year. On a
per share basis, earnings were $0.23, compared with $0.21 in the first quarter
of 1995.
Commenting on the results, Safety-Kleen's President and Chief Executive Officer,
John G. Johnson, Jr., said, "The first quarter results are in line with our
expectations. Although the total number of parts cleaners in service remained
unchanged from year end 1995, we are pleased that the average time interval
between services in this business remained constant during the first quarter.
This is the first time in nearly six years that the service interval has not
lengthened. We should see improved year-to-year revenue growth in this business
if this trend continues in the remainder of 1996," Johnson stated.
"In addition, revenue of the Fluid Recovery Service grew approximately 10% over
last year to $30 million in the quarter. Over the past 18 months we have
increased the number of Branch Industrial Managers selling to this market by
55%. We are seeing improved productivity as these employees complete their
training and gain valuable field experience," Johnson added.
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Johnson further noted that the Company's Oil Recovery Service continues to
improve with net earnings of $860,000, which is an increase of nearly $500,000
over the first quarter of 1995. "Revenue was up 13% in the first interim period
largely due to improving oil collection fees."
Operating earnings of the Company's Imaging Services business were break-even
reflecting approximately a $600,000 improvement over the first interim period of
1995. While revenue of $4 million is flat on a year-to-year comparison, we
discontinued approximately $2 million of lower margin business, which was
included in the first interim period of 1995, as we shifted our focus from the
broker business to direct service through our branch network. We currently have
33 Branch Imaging Sales Specialists pursuing this market and plan to add an
additional 30-35 specialists by mid-year," Johnson added.
Johnson summed up the first interim period results, "While revenue increased
only 4% over the prior year quarter, we anticipate better year-to-year revenue
and earnings comparisons for the remainder of 1996."
Safety-Kleen is a leader in the recycling of automotive and industrial fluid
wastes as well as the leading re-refiner of used motor oils. Safety-Kleen's
stock is traded on the New York Stock Exchange under the symbol "SK".
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CONSOLIDATED STATEMENT OF EARNINGS
(thousands, except per share amounts)
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TWELVE
WEEKS ENDED
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Mar. 23, 1996 Mar. 25, 1995
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Revenue
North America
Automotive/Retail Repair Services $54,609 $56,028
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Industrial Services
Parts Cleaner 28,763 26,905
Fluid Recovery 30,448 27,524
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Total Industrial 59,211 54,429
Oil Recovery Services 30,399 26,978
Other 33,034 34,530
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Total North America 177,253 171,965
Europe 24,470 22,594
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Consolidated Revenue 201,723 194,559
Operating costs and expenses 145,823 142,417
Selling and administrative expenses 29,728 27,570
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Operating income 26,172 24,572
Interest income 180 260
Interest expense (4,264) (4,544)
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Earnings before income taxes 22,088 20,288
Income taxes 9,011 8,217
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Net earnings $13,077 $12,071
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Earnings per common and common
equivalent share $0.23 $0.21
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Average number of common and common
equivalent shares outstanding 57,903 57,819
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Cash dividends per common share $0.09 $0.09
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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 CORP.
Key Statistics
TWELVE WEEKS ENDED MARCH 23, 1996
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Percent
1996 1995 Change Change
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Parts Cleaners In Service at Quarter End
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Industrial 148,582 140,838 7,744 5.5%
All Other 459,159 462,838 (3,679) -0.8%
Total 607,741 603,676 4,065 0.7%
Average Service Interval in Weeks 8.86 8.14 0.72 8.8%
Oil Recovery Service
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Branch Collection:
Used Oil/Glycol/Oily Water Gallons Collected
Quarter 26.3 Million 28.3 Million -2 Million -7.1%
Avg Revenue Per Used
Oil/Glycol/Oily
Water Gal. Collected
Quarter $0.310 $0.238 $0.072 30.3%
Avg. Base Oil Selling Price Per Gallon
Quarter $0.994 $0.988 $0.006 0.6%
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