Exhibit 99.1
[LETTERHEAD OF SAFETY-KLEEN]
news
FOR IMMEDIATE RELEASE CONTACT: LAURENCE RUDNICK
(847) 468-2408
MAUREEN FISK
(847) 468-2452
SAFETY-KLEEN REPORTS INCREASED REVENUE
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AND EARNINGS FOR THIRD INTERIM PERIOD 1996
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Elgin, Illinois -- September 30, 1996 -- Safety-Kleen Corp. (NYSE:SK) today
announced results for the third interim period ended Sept. 7, 1996. Consolidated
revenue for the 12-week period was $213 million, an increase of 8% compared with
the similar period in 1995. Net earnings rose to $14.0 million, an increase of
26% over the $11.1 million reported in the third quarter of 1995. On a per share
basis, earnings were $0.24, compared with $0.19 in the same quarter one year
ago.
For the first thirty-six weeks of 1996, consolidated revenue increased 5%
to $626 million. Net earnings rose 15% to $40.7 million from $35.3 million
during the same period one year ago. Year-to-date earnings per share were $0.70
compared with $0.61 in 1995.
Commenting on the results, President and Chief Executive Officer, John G.
Johnson, Jr. noted, "Revenue growth year over year improved from 4% in each of
the first two quarters of the year to 8% in the third quarter. The stronger
growth in the third quarter reflects improvement in our Industrial Parts Cleaner
Service business as well as in our Fluid Recovery Service. In addition, our Oil
Recovery Service revenue increased 19% compared with the third quarter of 1995
reflecting, in part, the additional revenue contribution from the 1996
acquisition of Industrial Service Corp. The integration of this acquisition as
well as two
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smaller acquisitions in the oil recovery business have extended Safety-Kleen's
presence in the central and western United States." Johnson noted.
Johnson further added, "We are pleased to report that our fuel plants and
recycle operations have continued to run smoothly and efficiently in 1996."
Reflected in the earnings comparison are unusually high costs incurred in the
third quarter of 1995 associated with the disposal of waste-derived fuels due to
kiln outages.
During the third quarter, Safety-Kleen acquired the business of a parts
cleaner and paint refinishing service company with operations in both the United
States and the U.K.. The acquisition should ultimately add 11,000 customers and
15,000 units. Approximately 3,500 of these units were signed up by the end of
the third quarter. "Revenue from the Automotive/Retail Repairs Service increased
3% in the third quarter of 1996 compared with the similar quarter in 1995. The
increase is a result of acquisitions as well as new service offerings."
Johnson concluded, "We are pleased with the acceleration of revenue growth
in the third quarter and expect further improvement in the remaining quarter of
the year."
Safety-Kleen is a leading service company specializing in the recovery and
recycling of waste fluids, including the collection and re-refining of used
motor oil. Safety-Kleen 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 THIRTY-SIX
WEEKS ENDED WEEKS ENDED
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Sept. 7, 1996 Sept. 9, 1995 Sept. 7, 1996 Sept. 9, 1995
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Revenue
North America
Automotive/Retail Repair Services $ 56,200 $ 54,415 $165,307 $166,354
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Industrial Services
Parts Cleaner 29,641 27,644 87,274 81,809
Fluid Recovery 33,166 28,211 96,587 84,576
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Total Industrial 62,807 55,855 183,861 166,385
Oil Recovery Services 36,015 30,263 102,488 88,234
Other 34,583 34,450 102,595 105,999
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Total North America 189,605 174,983 554,251 526,972
Europe 23,493 22,546 71,925 68,308
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Consolidated Revenue 213,098 197,529 626,176 595,280
Operating costs and expenses 155,274 145,239 455,885 436,642
Selling and administrative expenses 30,456 29,087 90,283 85,980
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Operating income 27,368 23,203 80,008 72,658
Interest income 208 171 640 656
Interest expense (4,388) (4,671) (13,098) (14,058)
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Earnings before income taxes 23,188 18,703 67,550 59,256
Income taxes 9,184 7,577 26,865 23,928
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Net earnings $ 14,004 $ 11,126 $ 40,685 $ 35,328
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Earnings per common and common
equivalent share $ 0.24 $ 0.19 $ 0.70 $ 0.61
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Average number of common and common
equivalent shares outstanding 58,330 57,849 58,078 57,854
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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.
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[SAFETY-KLEEN LOGO]
SAFETY-KLEEN CORP.
Key Statistics
Twelve Weeks Ended September 7, 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 150,063 146,739 3,324 2.3%
All Other 458,497 466,512 (8,015) (1.7%)
Total 608,560 613,251 (4,691) (0.8%)
Average Service Interval in Weeks 8.85 8.69 0.16 1.8%
Oil Recovery Service
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Branch Collection:
Used Oil/Glycol/Oily Water Gallons Collected
Quarter 41.2 Million 29.9 Million 11.3 Million 37.8%
Year-to-date 103.2 Million 88.6 Million 14.6 Million 16.5%
Avg. Revenue Per Used Oil/Glyco/Oily Water Gal. Collected
Quarter $0.243 $0.276 ($0.033) (12.0%)
Year-to-date $0.269 $0.257 $0.012 4.7%
Avg. Base Oil Selling Price Per Gallon
Quarter $0.986 $0.993 ($0.007) (0.7%)
Year-to-date $0.995 $0.995 $0.000 0.0%
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