Stericycle, Inc. (SRCL) has reported a 24.22 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $58.19 million, or $0.62 a share in the quarter, compared with $76.79 million, or $0.78 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $99.40 million, or $1.09 a share compared with $101.30 million or $1.11 a share, a year ago.
Revenue during the quarter went up marginally by 2.08 percent to $892.40 million from $874.18 million in the previous year period. Gross margin for the quarter contracted 62 basis points over the previous year period to 41.31 percent. Total expenses were 87.16 percent of quarterly revenues, up from 83.88 percent for the same period last year. That has resulted in a contraction of 328 basis points in operating margin to 12.84 percent.
Operating income for the quarter was $114.55 million, compared with $140.92 million in the previous year period.
However, the adjusted operating income for the quarter stood at $170.37 million compared to $180.35 million in the prior year period. At the same time, adjusted operating margin contracted 154 basis points in the quarter to 19.09 percent from 20.63 percent in the last year period.
"We are off to a great start for 2017," said Charlie Alutto, president and chief executive officer. "Our Secure Information Destruction business grew 8% 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%."
Operating cash flow improves
Stericycle, Inc. has generated cash of $175.32 million from operating activities during the quarter, up 11.71 percent or $18.37 million, when compared with the last year period.
The company has spent $49.76 million cash to meet investing activities during the quarter as against cash outgo of $58.30 million in the last year period. It has incurred net capital expenditure of $32.89 million on net basis during the quarter, down 1.59 percent or $0.53 million from year ago period.
The company has spent $124.10 million cash to carry out financing activities during the quarter as against cash outgo of $108.42 million in the last year period.
Cash and cash equivalents stood at $47.02 million as on Mar. 31, 2017, up 3 percent or $1.37 million from $45.66 million on Mar. 31, 2016.
Working capital declines
Stericycle, Inc. has witnessed a decline in the working capital over the last year. It stood at $180.36 million as at Mar. 31, 2017, down 11.95 percent or $24.48 million from $204.84 million on Mar. 31, 2016. Current ratio was at 1.31 as on Mar. 31, 2017, down from 1.37 on Mar. 31, 2016.
Days sales outstanding went down to 62 days for the quarter compared with 64 days for the same period last year.
At the same time, days payable outstanding went down to 24 days for the quarter from 25 for the same period last year.
Debt comes down
Stericycle, Inc. has recorded a decline in total debt over the last one year. It stood at $2,863.34 million as on Mar. 31, 2017, down 9.16 percent or $288.81 million from $3,152.15 million on Mar. 31, 2016. Total debt was 40.92 percent of total assets as on Mar. 31, 2017, compared with 44.32 percent on Mar. 31, 2016. Debt to equity ratio was at 0.99 as on Mar. 31, 2017, down from 1.12 as on Mar. 31, 2016.
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