SRCL - Earnings call transcript Q2 2022

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Operator

Hello everyone and welcome to the Stericycle Second Quarter 2022 Earnings Call. My name is Stacy, and I'll be coordinating today's call. [Operator Instructions] I would now like to hand over to your host, Andrew Ellis, Vice President of Investor Relations, to begin.

So Andrew, please go ahead.

Andrew Ellis

Good morning and thank you for joining Stericycle's 2022 second quarter earnings call.

will Zelenka, Miller, and our Officer. today Officer; Chief Chief call Janet and Chief the be our Cindy Executive Information On Financial Officer discussion risks that The forward-looking uncertainties. involve includes today and statements such we or goal we as When expressions, words believes, anticipates, plan, similar statements. estimates, forward-looking making expects, are will, may, use

subject on uncertainties. nature future projections and of management about Forward-looking in not on expectations and statements are and historical current based and to are, therefore, events are prospective facts risks but rather our

Our differ that in cause Safe and Securities differ filings could detail our actual forward-looking our such the Commission. greater in Exchange in in discussed within to our described with results earnings Risk those the from significantly and in press results statements. U.S. the could Factors statement are release Harbor actual Factors

any financial future obligations. past performance future results investors Our a considered should or other and revise be than results of accordance trends. to to performance reliable with use regulatory in our indicator disclaim legal any forward-looking should obligation historical anticipate update statement not or and not We

call, the will On financial discuss measures. we non-GAAP

which specific slides today approximately the call XXXX. in additional end in can during earnings replay The For information reconciliation a presentation. the Stericycle's Canada Relations of a September U.S. replay most be redistribution, X, (XX)-XXX-XXX-XXXX schedules time today's one the conference call, XXXX, may the Investor consent U.S. XXXXXX. of may without will press call website. from access at which outside is the measures, for on longer today's Cindy. call after available replay. website call reference call comments the August of hour also Stericycle's and available To prepared an website. Any please enter or written if call, Stericycle's is recorded X, is Throughout This Canada the turn be presentation retransmission of Time-sensitive to release also provided form no will and is until being now the the this we to Relations to at or GAAP which Investor Investor expressed A on earnings be refer investors.stericycle.com. found available comparable Relations information to our the at correspond over and Stericycle replay and replay any (XXX)-XXX-XXXX webcast of accurate code be rebroadcast occurring the prohibited. I’ll U.S., access in dial on XXX-XXX-XXXX the the call of in

Cindy Miller

Good to morning call. Andrew. welcome and today's you, Thank

in momentum quarter results, see our we on second will our builds as the exited you first As we the observed quarter.

approximately disciplined XX% to which as gained offset we led had pricing down and sequential improved the actions in hiring. frontline with quarterly workforce the our helped of experienced COVID-related first at improvement. first fewer pressures traction cost quarter proactive inflationary end the margin Further, and we a absences to shortage from the Our XX%, quarter

revenue increasing Destruction surcharges the that We America member increasing We team of the we Regulated business utilizing key Services with costs North wages pressures growth significantly to pricing onboarding. which core another revenue growth, Information and inflationary X% with Waste overall quarter, strategy, we SOP across X.X%. start our priorities. continuing pricing help experienced both along cost estimate new and rate. the Services time in growing Throughout focused organic our these pricing and Compliance three and fuel XX.X% businesses, second delivered XX.X% on growth revenue. our North America, remained increasing actions, X.X%. executing and increasing with contributed to Regulated offset organic included In of Destruction quality over Turning higher quarter Information supply labor-related Secure chain Compliance X.X% in levers to with higher our pricing I'll and and the Secure was Waste

surcharge We that in the to will initiatives pricing second accelerate the half continue our and fee benefits of expect of XXXX.

example, revenue $X cost $XX we for in fee we and another contributed customers. to half in America the year. North enhanced in America in second in hospital million the quarter, the the introduced recovery are second our back And Information These of in surcharge some For new first service Secure Destruction. revenue the quarter, recycling anticipated North quarter million contribute approximately the

medical our planned. on of facilities sharps. excited newly to This Continuing Turning and latest efficiency, facility. and our of competitive internally and our in facility reduction our decommissioned we organization, incinerator waste installed than anticipate begun modernization more revolution. replace processing our have two technology X-shift to at rollouts a and next-generation in that be the operational Coast. facility to per least XX This We of trend drive technology in months. recently seen update our position incinerator is SMS innovation, XX Utah. sharps operational leverage West facilities additional throughout our the share our I’m safety modernizing will to next to to support this developed operational on already innovation. operations an will facilities, patented a with improvements This modernizes strengthen two constructing We’ve currently in double processing capacity the leading

second the of on Waste we track for remain Looking the in deploy and preparation XXXX America customers of Services rollout our ahead the next year. Compliance pilots Regulated in for ERP half to deployment, to North subsets

for updating Janet XXXX uncertainty now halfway foreign of results. call rate our turn now Janet review to explain rest later. economic will the of impacts through considering As inflation, exchange we I’ll are guidance year, we the interest current to financial the our rates as and the surrounding and over the hikes, are

Janet Zelenka

Cindy. you, Thank by will results. I quarter summarizing our second start

in second compared As to the noted of $XXX.X quarter on second last Slide million million X, revenues quarter $XXX.X the in were year.

increased the organic impact revenue $X.X this Of rates Information an Regulated increase, U.S. Compliance of of revenues $X.X due $XX.X divestitures revenue strengthening Services net $XX.X growth was acquisition million of and Destruction growth the million. dollar foreign the Secure was million, and million exchange of Waste $XX.X $XX.X Excluding organic unfavorable million, million. organic and of to

As $XXX.X in Waste quarter Regulated second million XXXX. the compared and revenues Compliance noted of on were million Services X, to Slide $XXX

was revenues waste Solutions volumes services to most the quarter, volumes Excluding business. engagement organic in Services exchange we continued increased impacted revenues and waste pricing X.X% from in increase revenues recovery initiatives, surgeries. volumes, increased and by half the call vaccine waste related Services and and services. patient related that be an in Waste the the such revenue levers of growth North estimated by from the transactional a foreign areas X.X% quality our acquisitions volumes organic declined growth organic growth estimate lower in X% of of Compliance of partially The contributed impact offset pricing COVID-XX elective quarter second lagging Regulated maritime second was of as XXXX. Underlying as rates, from X.X% as Regulated due pandemic-related X.X% first peak these Compliance to in this decline and including the International X.X% growth Communication year-over-year the and divestitures testing by quarter. and the COVID-XX-related was approximately and in America In Waste X.X%. over decline classification decreased

delivered the second X, Slide million quarter on in $XXX.X Destruction of million Secure noted of compared Information $XXX.X XXXX. As revenues to

quarter as mainly The revenues XXXX. to recycled of SOP continued SOP economic lower organic $XX Non-inflationary pricing, expense million paper vehicle increased other quarter vehicle retain to organic million, million, compared for wage stops supply Recycled and quarter driven million recycled Service continue the of supply were costs million. Income adjustments driven America revenues, XXXX. partially of The approximately In to of bad America growth XXXX. million quarter of as we to second compensation expense revenues X% change as second $XX.X labor the XXXX. Secure higher higher in was million deployment bad foreign The to or $X.X Information replacement and $XX of and settlements higher service year-over-year. the Secure recover were expense higher due about principally up Secure to compliance costs Destruction driven partially higher chain North adjusted to in by the debt the approximately due increased exchange and utility headcount million revenue lower compared expenses also see delays $X.X the and organic $X.X and impact and $XX.X $XX.X million to of or offset flow-through second increase $XX.X the Information from environment. Destruction higher the of expenses adjustments ERP overtime These to revenues in litigation due Information Secure compared America increased wage the with rates, impact as higher the XX.X% North talent about the the second compared higher were was offset slightly mainly higher contributed Destruction second lower paper organic costs from $XX to partially X.X% increased International, adjustments approximately reflected of million, other Information replacement COVID-XX. inflationary fuel majority of Secure North vehicle million. billing as inflationary SOP SOP contributed and levels. labor in of service and In costs paper $XX.X lower pricing, were headcount, paper normalizing from deliveries, or by America, were and mainly volumes. Service surcharges. revenues offset Destruction XX.X% revenues Secure $X.X improve by efforts up regulatory This growth Destruction Excluding inflationary onboarding quarter collection well million, of by in revenues costs debt chain, overtime Information self-insurance current operations decline wage the $XX.X higher to higher million recycled $X.X business revenues volume. maintenance to XX.X%, of North and related million by rental increase Information incentive mostly to continued Destruction annual attract from to costs, of X.X% or organic was by

and of earnings earnings fuel net million U.S. have difference XX, through have related operations income from of was million our of surcharges. to diluted North GAAP was year. outflow in continued increased, X. payments ERP of settlement compared of generated changes the from last mainly compared $XX.X with XXX the $XX other XXXX, Adjusted basis of associated Secure self-insurance the diluted of basis the XXX was quarter per inflationary $XX.X in was an operations due points from reflecting $XX.X chain Information basis operating receivable existing were of year. offset onboarding XXX XX.X% as Information of of $X.XX XXX lower shown commercial the quarter compared operations inflow deployment from points. Destruction While share accounts XXXX. by revenue and due compensation mainly offset in to decline lower of $XXX.X annual incentive approximately America resulting or debt share second to of and down declined other in revenues, XXXX, second headcount, basis lower Adjusted quarter points of XXX operations bad of second the $X.XX to $XX.X $XX.X $XXX.X XXXX. expected following XXX billing costs months points, the a basis Secure per fuel The a by expense diluted overtime timing driven to of pricing million ended XXX Ongoing and basis from to was percentage the revenues same costs quarter flow share percentage the as income points. FCPA was in August or of six net per $XXX.X income The America of lower of expenditures driven earnings of operations $X.XX or the revenues of the points, million. higher North These period flow-through income mainly $XX.X adjustments they income shift approximately net for million, million related million levers, points million wage working year-over-year last Cash XX.X% an approximately XXX or of in efforts in ERP collection basis been supply June from as million Slide in costs. and by income basis partially on the IT expense points in Destruction to million, percentage higher Adjusted $XX.X costs and of million, $X.XX cash deployment from a as capital

the flow-through for for mainly to an ended XXXX. compared payments. revenue outflow year, Free a six rates $X.XX of of driven expenditures in unfavourability from commercial cash inflationary $XX.X the from offset overtime Capital XX, the $XX.X and impact on higher last million acquisition June favorability by expected XXXX six the ongoing attributable $X.XX $X.XX favorability costs million foreign with XXXX, higher IT by and net million months levers, expenditures, higher the timing These from were As to period June remaining the other inflow was illustrated of other. on flow year-over-year $X.XX, bridge resulting X, the unfavourability for decline pricing costs. divestitures an the adjustments cash XX, excluding $XX.X compared wage was from $X.XX and million million of in unfavourability Slide headcount, partially same period and $X.XX and exchange and from chain, onboarding supply were change to operating $XX same from months of $XX.X ended $X.XX

on noted earlier. payments expected explained decline timing in higher $XX.X of driven million, operations by income capital working from paid associated cash year-over-year expenditures, the as settlement $XXX.X net lower changes Slide and FCPA cash with was for mainly As million X, of the capital,

was second quarter to and of discussed in days days collections and difference America XX the customer XX Our a of invoicing mainly Information subsequent was higher the of Secure XXXX. in second timing DSO reported Destruction in prior the quarter the quarter North driven revenue compared as quarter. by DSO This

net credit debt second Slide billion. ratio X.XXx. agreement-defined debt ratio approximately million end settlement on payments the X.XXx was in the our If would XX, the quarter, the excluded, FCPA agreement-defined was $X.X shown and of As of quarter $XX.X leverage were have debt at our been the leverage credit

adjusted X% growth guidance One, updating range to depreciation includes $XXX cash compensation incentive $X.XX. on range forward-looking X%, updated for Two, noted we revenue to cash million. and as from $X are mentioned, to expenses $X.XX offset X% Cindy have tightening interest up items. range range free EPS of we $X.XX our to which organic to $X.XX annual flow This raising our we Three, to to X%. are to to net $X.XX. XXXX $X our to As from $XX expenses million changed the XX our to is $XXX lower of we noncash such $X.XX by EPS $XXX from higher million operating are Slide adjusted and following million

cash million higher to I anticipated $XX we in lower the working million about just to addition explained, In $XX net expenses expect capital.

expected million $XX narrowing Four, I million addition, to pay $XXX anticipated turn $XXX are million to $XXX million to to settlement million. in call FCPA back XXXX. are $XXX paid In capital the of range payments that in Cindy. from we be previously to now expenditure to we now will XXXX our

Cindy Miller

like Reflecting our updates. Janet. to to sustainability, you, important share I'd Thank commitment two

for our in CDP XXXX. important First, disclosures This filing and milestone climate last another ESG filed week, we from XXXX program expanded includes our change first represents our survey.

second believe and improve wildlife Chief wetland and our Foundation, of our of that the these we actions momentum. and our with in are several share Jacksonville restoration. both combat to where today with to encouraged our landscape a to our X-year conservation In we Service. the Commercial are Park we're Officers benefit National partnership Park pressures have second supporting partner half Jacksonville, Florida cost focus summary, launch the the are XXXX. for taken starting National excited inflationary we is margins first non-profit quarter results to I'm locations Second, on Chief by The will the Transformation of

continued open we line thank the for As matters. our communities our and for their protect team serve having please what members, and trust to Operator, Stericycle Q&A. shareholders always, customers, I'd like the

Operator

first Michael Instructions] from from is Hoffman question [Operator Our Stifel.

Michael Hoffman

and guide is which litigation, need of If could $XX -- the I having this the apologize pay the free old difference. and some through. the $XX million we just to but to a to with have million flow I of about if it out the heard the may the Janet, midpoint current cash start firehose coming question, answer you it's midpoint said guide, XXX if information of for I of I walk including the take

litigation So for million for to think know you million that. what’s I working know the I I -- the but capital. say I heard $XX $XX there’s of million the is FCPA remaining $XX $XX the $XX million million?

call $XX So we’ll that million.

So what’s the remaining $XX million?

Janet Zelenka

Yes.

some So that's cash it's itemize can through higher you. -- the of expenses will that which flow we we for

about year. rates we interest $X.XX be than In well you at addition, also the slide, for guidance look higher prior will impact cash the if as that flow a as highlighted

offsetting the adjusted flow-through because the items have noncash basically mentioned. it's of EPS the then cash items the from you we and items So

much Michael. So it, pretty have you

Michael Hoffman

All right. Okay.

well, And so be I guidance My -- when growth, is quality. my that to actually, gave on and follow-up. growth you don't follow-up want

When for talk Cindy. three I business quality then to happening think the lines is rev, about it you operating what's your two and this about so a leverage. initiatives So the the underlying about that's inside. think we of is Can five and around

medical So be new and starting because national in to Or customer growth? types retire accounts, can’t independent they an customers we customer choosing churn you’re to are because waste, hospital is quality. see there the between more

to And this thinking and then both is the mean margin. all [indiscernible] those overall, sustainability because as You inflation. adds of this opposed just X% to I along environment’s price can’t X% where get help of customer new segments to support businesses. coming in ultimately current the the I’m of

Cindy Miller

quarter one we part, the is business. we most is the very zags can comparable. on based see Michael. to question. which where zigs growth. that, It that underlying It's with But things given trends I unit for that sequential and between continue And Thanks winning new on we're of pleased great are for a that any business a say

you side, say were decline, independent what steady there the is on as know, we specifically regulated independent Now I space, the it in our call years now. of space will

Number look we the independents. result, a provide We've side, the there we that in we our we or drive gaining revamping an services the awful a are updated traction. certainly then who winning new to we logo. larger as seeing So on are. continue of we took hospital And lot And our one, efforts. improvement and of are

us plenty the I there's we put say win are regionally, I've share help regionally, to logo that in places pleased sizes and sales think opportunity when grow of said for efforts market you I'm before, different density. very still with We organization's have we're places new different -- in different, us improve and to our and

On side, continues with we're With of a continue get back shred to there certainly for with the new not And and that. that be not to our customer volume almost constant happy and But is the come out a base we very yet paper a office, of that's grow as into we an as good push that world and of shutdown the the on I story there. may think business. winning us. --

on So part growth. the of the focused is organic team very

Michael Hoffman

are my Those two. Okay.

Operator

Dodge RBC Our next Capital Sean question from Markets. is from

Sean Dodge

taper. in strong look Congratulations elevated if back the to visibility understand was the missed there lot four, EBITDA of trying Are costs be quarters quarter. going extent I’m or at extra it production think cadence costs are the there drop then to during Cindy, guidance. maybe surcharges levels in year? to of related a out not on not continue should have but the you other the how Janet, into three what absenteeism. about of kind going mentioned to we prepared of you and normalize that that of that back one-timing to to did the remarks, some would the on Maybe there as you half And can to EBITDA the Just additive mentioned? QX, you sure still that acceleration QX? your in disruption, I cost

Cindy Miller

resources were worse in go New out service few I'm places We in an and you of overtime, Sean, continue to jump Yes. Year, different with -- quarter a little little moving saw amount asked places help to that XX% Janet a when country operational tremendous about of provide But the some here to can down for I meant just of we give in bit that bit off. to we had came can in know shifting which to give things. it a first you I'll Janet. was off into that so example. more our color. average it a just expense That on the was customers. going

quite had some frankly. terms that that of So of new terms a saw a employees if have in put you of We that onboarding we good we costs bit on. of that in peak, expense we’ve then will, now of

sure to And as we of for So have think about it watch start key that is costs us more I to up their a new excited better and places pull ramp continue to where to overtime seeing out. reduce very productive. we’re continuing staffing, we forward, also, of move those be in ability those we types terms make employees in

whole when they been you for not board, have you who’s don’t pad down routine as somebody As quite few a years. the around someone know, bring as on they’re as –

So about that those some going key see to original off. costs we our question two think taper are your I to things

we’re the those add? levers Janet, make deliver on we get into of to else For we specifically pressing second anything the us back both half, as to of sure ‘XX. in need that to half

Janet Zelenka

talk for the about we And on and as really QX. the it QX rest is guidance the momentum of building you year, between the saw

what's of to the in staffing now speaking that this and place point underlying to would roughly seeing would being efficiency about better going And the half a momentum half the X/X then and that have drive indicated first is price, said going I trained see about worse can I As the you're improvement second in always year. the that volume guidance, at we improvements half. the that are second that say that you in Cindy's X/X and we the quarter. see as we levels be than that remember had the they we we're latter half they to And look the was we and think X/X

Sean Dodge

it very guess you well, be back step contemplated first here, That's it than looks then And so I long-term Okay. like guidance. was the the to more little environment if we challenging inflationary when helpful. case a despite -- it

that XXXX your XXXX are talk left Is mitigate anything inflationary longer-term cash ability of there Maybe effectiveness about affects You anything that’s unchanged. guess on guidance of that inflationary maybe the and about million? to achieve ability in $XXX these that them and $XXX those your and conviction between free increases? views pressures changing million surcharges pressures flow I there changes your about your price $XXX your what we’ve seen maybe that to with million? that

Janet Zelenka

inflation, say, So the certain would times et in cetera. certainly recession, on we're I economy, moving

So $XXX we $XXX FCPA that there. see And to for at back in add our can the even on for cash and put yet the payments But that world. challenging say in out if to we about for million you are $XX year it. you proactive if that flow, out very are range, the of that as being we going managing million through go we're year, did look that the million trajectory basically you another

a business we the we economic trends. can to this continue that now, But will it's on execution the we and lot dependent our say. right So think monitor generate cash

Operator

Baird. from is David question next Manthey from Our

David Manthey

You working noted in receivable cited then of higher. timing capital press you were items million and that the release $XX accounts

randomness? in actions? higher us? about preamble, us it pricing this you unpack I Could that addressed apologize Or is did. have the you the paper anything does prices But for that tell You or if might just

Janet Zelenka

the The catch-up doing accounts on we remaining receivable Destruction by largely see largely quarter receivables. we're are the in that Secure driven Information

We couple changes. instead quarter. in normal last sort encouraged exceeding other will year. itself some heard the catch-up mentioned of of by of timing quarters. You There's revenue the end by that am seeing most past may the with of mentioned out of the months I -- have the the we're the in me receivables And couple of think working just capital the

cash itself will time. at that normal right over capital. -- think is stuff net with that year And of flow your I that So just the working the of your it's end happens

David Manthey

Okay. an open-ended And then question of just here. more

caught think on you the up before talked think your your do of you costs. fast book you positioned? think prices experiencing talk then, of equilibrium well relative course, to costs Can the coming surcharges you just trying to that this how your as move being and those reach these the as I to you’re you’re throughout that course And to How to of about from fourth year. at about your up as have about And you’re X/X possible it to demanding you third point? customers inflationary are you close relates relative the and you’re inflationary how quarters P&L? inflationary

Cindy Miller

question. Dave, Yes. great

customer talked to they out that it's things an renewals. sometime talked through one with date if pass new Even your costs contracts this contract, X-year acquiring year. just a for point, that do about have we're a today, about And coming but anniversary upfront think We and them. most customer. we I We are to levers. of is are engaged first we CPIs they having X-year a about pleased we're that the of quarter that -- talked adjusting prepricing about

a book giving a not of advance amount that think, And with meaning are in make little of our you're to that it and able of customers business pass So bit engagement CPI QX to think may surcharges thing, economic and being happening. them what's is adjust our good ability in let flexibility think to on days turn other nimbleness to I be discipline on game on, engaged conditions momentum out I showed of those we fees and and coming adjustments. know talked current through to we with terms we renewal. costs more really with then part what pass And and the I saw But contractual based a then customers continued which the through are. we've

half think first about those and was about fees time. QX I that it then $X we didn’t to million think Q the say at operations commercial, would one-on-ones turn out have work finance That’s to it $XX half another But from of we’re I in the our other think flexible to we over and You're take with we’re position the for few think surcharges a million at and If QX had them. expecting year. see years. of they And yield and we or – than to the were I different amount big of I in inflation something is the else, the teams tremendous if last that make adjustments a been year. a And us. end looking more Really, the the stead significant yield of same that’s based all done, today our course saw I of were uptick, team. a those of need the is fees, And to – second in in to any of of surcharges off on also we any testimony we being if proactively. are much

Janet Zelenka

wanted last higher to I meant saying. kind to I are with Cindy clarify, retention rates, you at I is of David, indicative of is for higher I And months. which they're overall just the the just then, sales our historical think than wanted said than add, what sales, receivables were if collections consistent And look I trends couple of

Operator

Scott Our from Schneeberger Oppenheimer. is next question from

Unidentified Analyst

half. volume bit a little the segment into maybe here overall us give Scott. drivers? Could is more level and Daniel on for elaborate back better It curious the little I’m It's you progressing, sounds the on bit bit volume. on [ph] on coming color like a

Cindy Miller

actual drivers I businesses? of -- service you staffing the think any growth revenue situation you across sorry, are asking the are drivers, meaning and the I'm and our or of asking providers

Unidentified Analyst

segment volume, on drivers The revenue the of side? so

Cindy Miller

Yes.

couple I things. a think of

from what I best way think to answer an here's think, seeing, I perspective. we're the industry

seems Unfortunately, demand is terms positive What spite we're there the that health very plan for in Organic So and -- of levels, discussion lot revenue awful not the that's still second it. of list. a be on are positive growth care the there's it's think, think everything there is pre-COVID whether continuing the trajectory. doctors, to support -- to industry continuing I an our that staff staff. isn't labor an nurses a been it elective is shortages, matching of, for waiting and says monitoring about from growth I half perspective, and surgeries ability industry we're year we're as to back and of in about

not So continuing see -- but we're be -- we're big surge. for to to certainly not growth us, expecting to have it some

continue testing, think steadily We increase. to decline, that's to COVID see vaccination going continuing I home declines. to do

place very fact of a now that we maritime decline that over has hoped. been take had order we're the some see there to standstill we So as in but as of COVID that positive the

has know there the is new the some tech September of I are major that normal. the X, continuing So then industry yet moving And not the I back what still still companies forward. targets shred I in that New I don't think see we're settled on the to beginning of of some settled really being big have yet. side, think everybody companies and Year. terms set

you to shred -- yet, continue if with stops the and still the lockdown, So business but as since very will. have increasing they we're are sequentially we great see positive

as I pretty procedures. we yet. industry as that volume demand as hospital And we not still I we that's a outlook know, think good and in and maybe quite see in comes will of the So, surgeries rooms, it be back, all hospitals, an shortages staffing see we're as will think -- it be in what idea there -- and

Unidentified Analyst

a speak with give bit I the that is That’s offsetting how or Shifting route to initiatives can automation And gears efficiencies. you’re optimization. to very you’re exhibiting? you operational cost inflation maybe helpful. if us feel how progressing to for a mean like

Cindy Miller

Yes.

team, more company. and and and to the that the a up building I in the we're more going which portion transformation we as things questions we're to great folks more far door are Stericycle getting want think we're who is core of those be efficient back

yearly But So how our for see then, is got internally and it. from a pandemic productivity. whatever to increase, gains as And around through goal anybody out turn the to figure pandemic, we going we're the to hurt it us. leading up did staffing going going -- did give to we've through pay

is in the see to to Our overtime. do to for continue need improved results second drive for we of half year us reductions focus

shred of We are on metrics with now very focused side this the the that have, specifically on we business system. new

have sure plant, financials a newly automation lot certainly, metrics to put shift, of a sharps our change we shortages a resources difference. that's that go reducing we're you for it's in, are you've may capital that areas our it's that conveyance and processing. costs a to how make with focused note, putting on is we're in road. at you handle us driver many and redeploy we're lot we making look an patented a whether technology of you or result are of this expense into folks. can that can our take helping and can align whether broader service. potentially on We have there's a hire take the like productivity, of bigger efficiency We don't we of there. other very facilities the a and in that where to improving those then a staffing new then inside But equipment -- And SMS And internal revolution, volume terms items Anytime improving putting down the capabilities we if on already modernization got awful as

So, all exciting very those us. are for

are that it. is lot in we to drive the a challenges continue of We thrilled spite the I’m that the of team And these doing things still – facing.

that thanks question. So for

back As to tell, getting about excited you I’m operational our efficiencies. pretty can us

Operator

questions. no over I'll back for [Operator Instructions] further hand any We closing have remarks.

Cindy Miller

you we your Thank Thank in call, Stericycle the and Stacy. To on you. appreciate appreciate appreciate excitement support interest and your shared our continued we much. in everyone very future. Thanks, also We it. listening

Operator

joining call. for everyone you, Thank today's

have disconnect You lovely lines day. your may now and a

Stericycle (SRCL) 5 Aug 222022 Q2 Earnings call transcript