Stericycle improves performance in Q1

Lake Forest, Illinois-based Stericycle Inc., reported financial results for the first quarter of 2017.

Revenues for the quarter ended March 31, 2017 were $892.4 million, an increase of 2.1 percent from $874.2 million in the first quarter of last year. Acquisitions contributed approximately $10 million to the current period’s increase in revenues. Divestitures reduced current period revenues by $0.7 million. Revenues increased 3.2 percent compared to the first quarter of last year when adjusted for unfavorable foreign exchange impacts of $9.7 million. Organic revenues grew 2.1 percent, or 3.6 percent when adjusted for Manufacturing and Industrial Services.

“We are off to a great start for 2017,” says Charlie Alutto, president and CEO. “Our Secure Information Destruction business grew 8 percent organically from an increase in sales of ongoing and one-time services combined with higher revenues for recycled paper. Additionally, the market-leading position and unique capabilities of our Communication and Related Services business enabled the team to deliver solid year-over-year organic growth of greater than 6 percent.”

Gross profit was $368.7 million, an increase of 0.6 percent from $366.6 million in the first quarter of last year. Gross profit as a percentage of revenues was 41.3 percent compared to 41.9 percent in the first quarter of last year. Adjusted gross profit was $368.7 million, an increase of 0.5 percent from $366.8 million in the first quarter of last year. Adjusted gross profit as a percentage of revenues was 41.3 percent compared to 42.0 percent in the first quarter of last year. See Table 2.

EPS decreased 19.7 percent to $0.62 from $0.78 in the first quarter of last year. Adjusted EPS decreased 1.2 percent to $1.09 from $1.11 in the first quarter of last year. See Tables 3 and 4.

Cash flow from operations for the three months ended March 31, 2017 was $175.3 million, an increase of 11.7 percent from $156.9 million in the same period last year.