STERICYCLE, INC. STERICYCLE INVESTOR PRESENTATION
First Quarter 2021 Results
April 29, 2021
Nasdaq: SRCL
Safe Harbor Statement
This document may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. When we use words such as "believes", "expects", "anticipates", "estimates", "may", "plan", "will", "goal", or similar expressions, we are making forward-looking statements. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of our management about future events and are therefore subject to risks and uncertainties, which could cause actual results to differ materially from the future results expressed or implied by the forward- looking statements. Factors that could cause such differences include, among others, developments in the COVID-19 pandemic and the resulting impact on the results of operations, long-term remote work arrangements, which may adversely affect our business, precautions we have taken to safeguard the health and safety of our team members which may make certain of our business processes less efficient, measures taken by governmental authorities to prevent the spread of the COVID-19 virus which could disrupt our supply chain, result in disruptions in transportation services and restrictions on the ability of our team members to travel, result in temporary closure of our facilities or the facilities of our customers and suppliers, affect the volume of paper processed by our secure information destruction business and the revenue generated from the sale of SOP, disruptions in our relationships with our team members as a result of certain cost-saving measures, an economic slowdown in the U.S. and other countries resulting from the outbreak of the COVID-19 virus, changing market conditions in the healthcare industry, competition and demand for services in the regulated waste and secure information destruction industries, SOP pricing volatility, foreign exchange rate volatility in the jurisdictions in which we operate, changes in governmental regulation of the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information, the level of government enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information, decreases in the volume of regulated wastes or personal and confidential information collected from customers, the ability to implement our new ERP system, disruptions in or attacks on information technology systems, charges related to portfolio optimization or the failure of divestitures to achieve the desired results, failure to consummate transactions with respect to non-core businesses, the obligations to service substantial indebtedness and comply with the covenants and restrictions contained in our credit agreements and notes, a downgrade in our credit rating resulting in an increase in interest expense, political, economic, inflationary and other risks related to our foreign operations, the outcome of pending or future litigation or investigations including with respect to the U.S. Foreign Corrupt Practices Act, weather and environmental changes related to climate change, requirements of customers and investors for net carbon zero emissions strategies, and the introduction of regulations for greenhouse gases, which could negatively affect our costs to operate, failure to maintain an effective system of internal control over financial reporting, delays or failures in implementing remediation efforts with respect to potential future material weaknesses, as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Forms 10-Q. As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. We disclaim any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.
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First Quarter Key Business Highlights
- Generated RWCS organic revenue growth of 6.0%
- Increased adjusted income from operations as a percent of revenues by 460 basis points
- Reduced net debt by $38.3 million in the first quarter of 2021, decreasing total net debt to approximately $1.70 billion
- Continued to reduce the credit agreement defined debt leverage ratio to 3.28 times, compared to 4.50 times as of March 31, 2020
($ millions except for EPS) | Three Months Ended |
March 31, 2021 | |
Revenues | $668.0 |
Income from Operations | $59.1 |
Adjusted Income from Operations(1) | $110.0 |
Diluted Earnings per Share | $0.28 |
Adjusted Diluted Earnings per Share(1) | $0.71 |
Net Cash from Operation Activities | $62.6 |
Free Cash Flow(2) | $37.9 |
- Reconciliation of Adjusted Income from Operations and Adjusted Diluted EPS to their respective U.S. GAAP measures can be found in the appendix of this presentation.
- Free Cash Flow is calculated as Net cash from operating activities less Capital expenditures.
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Q1 2021 Revenues Bridge
In $ millions
(135.0)
10.7
(26.8)34.1
$785.0
$668.0
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Q1 2021 Global Revenues by Service and Segment Compared to Q1 2020
Three Months Ended March 31, | ||||||||||||||||||||||
In millions | Components of Change (%) | |||||||||||||||||||||
2021 | 2020 | Change ($) | Change (%) | Organic | Divestitures | Foreign | ||||||||||||||||
Growth(1) | Exchange(2) | |||||||||||||||||||||
Revenues by Service | ||||||||||||||||||||||
Regulated Waste and Compliance Services(3) | $ | 473.6 | $ | 566.9 | $ | (93.3) | (16.5)% | 6.0% | (23.8)% | 1.3% | ||||||||||||
Secure Information Destruction Services | 194.4 | 218.1 | (23.7) | (10.9)% | (12.3)% | - | 1.4% | |||||||||||||||
Total Revenues | $ | 668.0 | $ | 785.0 | $ | (117.0) | (14.9)% | 0.9% | (17.2)% | 1.4% | ||||||||||||
North America | ||||||||||||||||||||||
Regulated Waste and Compliance Services(3) | $ | 366.8 | $ | 468.6 | $ | (101.8) | (21.7)% | 3.8% | (25.8)% | 0.3% | ||||||||||||
Secure Information Destruction Services | 166.9 | 186.0 | (19.1) | (10.3)% | (10.8)% | - | 0.5% | |||||||||||||||
Total North America Segment | $ | 533.7 | $ | 654.6 | $ | (120.9) | (18.5)% | (0.3)% | (18.5)% | 0.3% | ||||||||||||
International | ||||||||||||||||||||||
Regulated Waste and Compliance Services(3) | $ | 106.8 | $ | 98.3 | $ | 8.5 | 8.6% | 16.4% | (14.3)% | 6.5% | ||||||||||||
Secure Information Destruction Services | 27.5 | 32.1 | (4.6) | (14.3)% | (21.2)% | - | 6.9% | |||||||||||||||
Total International Segment | $ | 134.3 | $ | 130.4 | $ | 3.9 | 3.0% | 7.2% | (10.8)% | 6.6% |
- Growth is the change in revenues excluding the impact of divestitures and foreign exchange.
- Foreign Exchange is change in revenues attributed to effects of foreign currency exchange rates.
- In the first quarter of 2021, we updated our service lines to include Communication Solutions (formerly part of CRS) in RWCS.
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Stericycle Inc. published this content on 29 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2021 12:15:01 UTC.
