Stericycle Inc (SRCL) has reported a 6.70 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $64.80 million, or $0.72 a share in the quarter, compared with $69.45 million, or $0.81 a share for the same period last year. On an adjusted basis, earnings per share were at $1.24 for the quarter compared with $1.15 in the same period last year.
Revenue during the quarter grew 23.87 percent to $890.14 million from $718.60 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 42.61 percent. Total expenses were 86.01 percent of quarterly revenues, up from 82.08 percent for the same period last year. That has resulted in a contraction of 393 basis points in operating margin to 13.99 percent.
Operating income for the quarter was $124.52 million, compared with $128.76 million in the previous year period.
However, the adjusted operating income for the quarter stood at $191.71 million compared to $171.39 million in the prior year period. At the same time, adjusted operating margin contracted 231 basis points in the quarter to 21.54 percent from 23.85 percent in the last year period.
“We were able to maintain consistent margin performance in the quarter despite revenue headwinds from previously discussed pricing pressure and softness in the manufacturing and industrial market,” said Charlie Alutto, president and chief executive officer.
Operating cash flow improves significantly
Stericycle Inc has generated cash of $417.77 million from operating activities during the nine month period, up 42.44 percent or $124.48 million, when compared with the last year period.
The company has spent $148.50 million cash to meet investing activities during the nine month period as against cash outgo of $805.58 million in the last year period.
The company has spent $286.94 million cash to carry out financing activities during the nine month period as against cash inflow of $523.52 million in the last year period.
Cash and cash equivalents stood at $40.29 million as on Sep. 30, 2016, up 22.53 percent or $7.41 million from $32.88 million on Sep. 30, 2015.
Working capital drops significantly
Stericycle Inc has witnessed a decline in the working capital over the last year. It stood at $236.21 million as at Sep. 30, 2016, down 69.93 percent or $549.32 million from $785.53 million on Sep. 30, 2015. Current ratio was at 1.44 as on Sep. 30, 2016, down from 2.47 on Sep. 30, 2015.
Days sales outstanding went down to 60 days for the quarter compared with 67 days for the same period last year.
At the same time, days payable outstanding went down to 26 days for the quarter from 32 for the same period last year.
Debt increases substantially
Stericycle Inc has witnessed an increase in total debt over the last one year. It stood at $3,012.78 million as on Sep. 30, 2016, up 98.72 percent or $1,496.69 million from $1,516.09 million on Sep. 30, 2015. Total debt was 42.63 percent of total assets as on Sep. 30, 2016, compared with 29.29 percent on Sep. 30, 2015. Debt to equity ratio was at 1.05 as on Sep. 30, 2016, up from 0.55 as on Sep. 30, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
