Date: July 27, 2006
Source: Stericycle, Inc.
Stericycle, Inc. (NASDAQ: SRCL), reported financial results for the second quarter of 2006. Revenues for the quarter ended June 30, 2006 were $198.4 million, up 33.0% from $149.1 million in the same quarter last year. Acquisitions less than 12 months old contributed approximately $32.6 million in revenues for the quarter. Gross profit was $87.6 million, up 34.1% from $65.3 million in the same quarter last year. Gross profit as a percent of revenues was 44.1% versus 43.8% in the second quarter of 2005.
Net income for the second quarter of 2006 was $25.2 million or $0.56 per diluted share compared with net income of $23.0 million or $0.51 per diluted share for the same quarter last year. During the quarter we wrote off a $1.0 million investment ($0.6 million net of tax or $0.014 per share).
For the six months ended June 30, 2006, revenues increased to $377.7 million, up 30.4% from $289.7 million in the same period a year ago. Gross profit was $166.3 million, up 31.8% from $126.2 million in the same period a year ago. Gross profit as a percent of revenues was 44.0% versus 43.6% in the same period in 2005. Earnings per diluted share increased 8.8% to $1.08 from $0.99 per diluted share in the same period a year ago.
Net income in the second quarter of 2006 included $1.6 million of stock compensation expense ($2.7 million pre-tax) or $0.04 per diluted share recorded as a result of the adoption of FASB Statement No. 123R on January 1, 2006. Net income for the first six months of 2006 included $3.2 million of stock compensation expense ($5.3 million pre-tax) or $0.07 per diluted share.
Debt increased in the first six months due to acquisitions resulting in our total debt to capitalization percentage ratio at June 30, 2006 increasing to 45.0% from 40.9% at December 31, 2005.
Cash flow from operations was $64.3 million for the first six months of 2006. Cash flow and increased loan balances were used to strengthen our business and funded $126.1 million in acquisitions and international investments, $13.9 million in stock repurchases and $15.7 million in capital spending.
For more information about Stericycle, please visit our website at www.stericycle.com.
Conference call to be held July 27, 2006 at 4:00 p.m. Central time - Dial 866-238-1645 at least 5 minutes before start time. If you are unable to participate on the call, a replay will be available through August 3rd by dialing 888-266-2081, access code 925735. To hear a simulcast of the call over the internet, or to access an audio archive of the call, go to the Investor Relations page on Stericycle's website at www.stericycle.com.
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