NEW YORK, June 3, 2024 /PRNewswire/ -- Rowley Law PLLC is investigating potential securities law violations by Stericycle (NASDAQ: SRCL) and its board of directors concerning the proposed acquisition of the company by Waste Management, Inc. (NYSE: WM). Stockholders will receive $62.00 for each share of Stericycle stock that they hold. The transaction is valued at approximately $7.2 billion and is expected to close in the fourth quarter of 2024. If you are a stockholder of Stericycle and are interested in ob ...

MILWAUKEE, June 3, 2024 /PRNewswire/ -- Ademi LLP is investigating Stericycle (Nasdaq: SRCL) for possible breaches of fiduciary duty and other violations of law in its transaction with Waste Management. Click here to learn how to join the https://www.ademilaw.com/case/stericycle-inc or call Guri Ademi toll-free at 866-264-3995. There is no cost or obligation to you. In the transaction, Stericycle shareholders will receive only $62.00 per share in cash, representing a total enterprise value of approximately ...

Key Takeaways Waste Management has reached a deal to buy Stericycle, a medical waste disposal company, for $62 per share in cash. Waste Management will acquire Stericycle for approximately $7.2 billion, including about $1.4 billion of debt. Stericycle shares jumped about 15% higher Monday following the news, while Waste Management dropped 2%. Waste Management (WM) has reached an agreement to acquire medical waste disposal company Stericycle (SRCL) in a deal valued at $7.2 billion including debt, sending the ...

SAN DIEGO, June 03, 2024 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP, a leading shareholder rights law firm, announced today that it has initiated an investigation into the board members of Stericycle (NASDAQ: SRCL) concerning potential breaches of fiduciary duties related to the proposed sale of the Company to Waste Management, Inc. (NYSE: WM). Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual a ...

MONSEY, N.Y., June 03, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the price of $62.00 per share in cash for which Stericycle, Inc. (Nasdaq: SRCL) ("Stericycle") has agreed to be sold to Waste Management, Inc. ("WMI"). The sales price is below the price targets for Stericycle of at least two Wall Street analysts (source: TipRanks). If you remain a Stericycle shareholder and question the fairness of the price, you may contact our firm at the following link to ...

The companies said the deal was unanimously approved by their boards of directors and is expected to close as early as the fourth quarter of 2024. Following the announcement, shares of Stericycle rose more than 16% in premarket trading Monday, while shares of WM fell nearly 2%. An employee cleans his company vehicle at the Waste Management facility on February 12, 2024 in Austin, Texas. Waste Management will buy Illinois-based waste-disposal company Stericycle in a deal valued at about $7.2 billion, the com ...

Core Viewpoint - Stericycle, Inc. (SRCL) has experienced a significant stock increase of 10.5% over the past month, outperforming both its industry growth of 1.1% and the Zacks S&P 500 composite rise of 5.4% [1] Group 1: Revenue and Customer Relationships - Stericycle's services are essential and scheduled, leading to a consistent revenue stream with a revenue retention rate of approximately 90% due to strong customer relationships and long-term contracts of three to five years [2] Group 2: Growth through Acquisitions - The company is expanding through acquisitions in both domestic and international markets, including a recent acquisition of a regulated waste business in the southeastern U.S. and a 2021 acquisition in the Midwest, which has strengthened its North American customer base [3] Group 3: Operational Improvements and Market Trends - Stericycle is focused on enhancing revenue quality and operational efficiency through various strategies such as asset optimization, technology implementation, and debt reduction. The company is also benefiting from trends like increasing environmental concerns, rapid industrialization, population growth, and government actions against illegal dumping [4]

Stericycle, Inc. (NASDAQ:SRCL) Q1 2024 Earnings Conference Call April 25, 2024 9:00 AM ET Andrew Ellis - Senior Vice President of Finance Cindy Miller - President and Chief Executive Officer Cory White - Executive Vice President and Chief Commercial Officer Janet Zelenka - Executive Vice President, Chief Financial Officer and Chief Information Officer Sean Dodge - RBC Capital Markets David Manthey - Baird Scott Schneeberger - Oppenheimer & Company Jasper Bibb - Truist Securities Michael Hoffman - Stifel Kev ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company's Q1 2024 financials show decreased revenue, increased net income, and a significant negative shift in operating cash flow [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 saw a 2.8% revenue decrease to $664.9 million but a 17.0% increase in net income to $13.1 million Q1 2024 vs Q1 2023 Income Statement Highlights | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Revenues | $664.9 | $684.3 | -2.8% | | Gross Profit | $254.9 | $261.0 | -2.3% | | Income from Operations | $38.9 | $40.0 | -2.8% | | Net Income | $13.1 | $11.2 | +17.0% | | Diluted EPS | $0.14 | $0.12 | +16.7% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $5.44 billion, with a notable increase in accounts receivable and total debt Balance Sheet Summary | Metric (in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $31.0 | $35.3 | | Accounts receivable, net | $616.4 | $553.9 | | Goodwill | $2,758.0 | $2,755.6 | | Total Assets | $5,435.7 | $5,352.6 | | Total Debt (Current + Long-term) | $1,422.4 | $1,305.2 | | Total Liabilities | $2,912.6 | $2,829.7 | | Total Equity | $2,523.1 | $2,522.9 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned negative to $(54.5) million, a significant decrease from the prior year's inflow Q1 2024 vs Q1 2023 Cash Flow Summary | Activity (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $(54.5) | $49.5 | | Net cash from investing activities | $(56.8) | $(34.5) | | Net cash from financing activities | $109.3 | $(11.6) | | Net change in cash | $(4.3) | $4.0 | - The significant decrease in operating cash flow was mainly due to a **$64.4 million increase in accounts receivable** and a **$41.1 million decrease in accrued liabilities**[18](index=18&type=chunk) - Financing activities included redeeming **$600.0 million of senior notes**, offset by **$951.0 million in proceeds** from the credit facility[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue disaggregation, acquisition activity, restructuring charges, debt refinancing, and ongoing legal investigations Q1 Revenue Disaggregation by Service and Segment (in millions) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **By Service** | | | | Regulated Waste and Compliance Services (RWCS) | $447.8 | $451.3 | | Secure Information Destruction Services (SID) | $217.1 | $233.0 | | **By Segment** | | | | Total North America | $569.2 | $573.4 | | Total International | $95.7 | $110.9 | - In January 2024, the company acquired a southeastern U.S. regulated waste business for a total purchase price of **$15.8 million**, including **$14.0 million in cash**[38](index=38&type=chunk)[39](index=39&type=chunk) - In February 2024, the company recognized **$5.6 million in severance charges** for a workforce reduction as part of an Operational Optimization plan[41](index=41&type=chunk) - The company redeemed all **$600 million of its 5.375% Senior Notes** due in 2024 using borrowings from its revolving credit facility, converting the debt from fixed to variable rate[43](index=43&type=chunk)[45](index=45&type=chunk) - As of March 31, 2024, the company's Credit Agreement Defined Debt Leverage Ratio was **3.51 to 1.00**, below the maximum allowed ratio of 4.00 to 1.00[44](index=44&type=chunk) - The company is subject to ongoing government investigations, including **FCPA compliance monitoring**, an SDNY investigation into its former environmental solutions business, and a DEA investigation into its former controlled substances business[54](index=54&type=chunk)[56](index=56&type=chunk)[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the revenue decline, key business priorities, and operational challenges from a new ERP system implementation [Key Business Priorities](index=19&type=section&id=Key%20Business%20Priorities) The company's 2024 key priorities focus on driving margin expansion and strategic capital allocation - The company's 2024 key priorities are focused on driving margin expansion and include: **Commercial and Service Excellence, Operational Excellence, Digital Implementation, and Strategic Capital Allocation**[72](index=72&type=chunk) - A workforce reduction in Q1 2024 resulted in **$5.6 million in severance charges** and is expected to generate annual savings of **$21.0 to $24.0 million**[76](index=76&type=chunk) - The company's strategic capital allocation now allows for consideration of tuck-in acquisitions and potential share repurchases, while targeting a debt leverage ratio between **2.5x-3.0x**[72](index=72&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) A 2.8% total revenue decline was driven by divestitures and lower SID commodity-indexed revenues Q1 2024 Revenue Change Components vs. Q1 2023 | Service | Total Change | Organic Growth | Acquisition | Divestitures | Foreign Exchange | | :--- | :--- | :--- | :--- | :--- | :--- | | RWCS | (0.8)% | 2.1% | 0.2% | (3.5)% | 0.5% | | SID | (6.8)% | (6.3)% | 0.1% | (1.1)% | 0.3% | | **Total** | **(2.8)%** | **(0.8)%** | **0.1%** | **(2.7)%** | **0.4%** | - The decline in SID organic revenue was mainly due to lower commodity-indexed revenues of **$19.8 million**, partially offset by higher service revenues[88](index=88&type=chunk) - North America Adjusted Income from Operations **decreased 7.0% to $149.1 million**, primarily due to lower SID commodity-indexed revenues and higher bad debt expense[95](index=95&type=chunk)[96](index=96&type=chunk) - International Adjusted Income from Operations **increased 20.4% to $12.4 million**, driven by favorable RWCS pricing and the impact of divestitures[95](index=95&type=chunk)[97](index=97&type=chunk) - SG&A expenses were flat at $216.0 million but increased as a percentage of revenue to **32.5% from 31.6%**, due to higher costs for operational optimization and litigation, and higher bad debt expense[92](index=92&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow declined significantly due to ERP-related billing delays, increasing Days Sales Outstanding (DSO) - As of March 31, 2024, the company had approximately **$0.4 billion of available capacity** in its $1.2 billion Credit Facility[103](index=103&type=chunk) - Operating cash flow **decreased by $104.0 million YoY to an outflow of $54.5 million**, mainly due to a $63.1 million increase in accounts receivable caused by billing and collection delays from the U.S. RWCS ERP launch[106](index=106&type=chunk) - Days Sales Outstanding (DSO), net of deferred revenues, **increased to 76 days** at March 31, 2024, compared to 55 days at March 31, 2023, driven by ERP implementation-related issues[107](index=107&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from changes in interest rates, commodity prices, and foreign currency rates - The company's primary market risks are changes in **interest rates, commodity prices (SOP, diesel fuel), and foreign currency rates**[113](index=113&type=chunk) - A sensitivity analysis shows that a **100 basis point increase** in interest rates on variable rate debt would increase annual pre-tax interest expense by about **$8.8 million**[114](index=114&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective with no material changes to internal controls during the quarter - The company's disclosure controls and procedures were deemed **effective** as of March 31, 2024[117](index=117&type=chunk) - **No changes occurred** in the first quarter of 2024 that have materially affected or are reasonably likely to materially affect internal control over financial reporting[118](index=118&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) This section references Note 9 for details on ongoing legal matters, including government investigations - Information regarding legal proceedings is detailed in **Note 9** of the Condensed Consolidated Financial Statements[121](index=121&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's 2023 Form 10-K are reported - There have been **no material changes** to the risk factors disclosed in the 2023 Form 10-K[122](index=122&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company confirms no sales of unregistered equity securities occurred during the first quarter of 2024 - **No sales of unregistered equity securities** occurred during Q1 2024[123](index=123&type=chunk) [Other Information](index=27&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during the first quarter - No directors or officers adopted or terminated any **Rule 10b5-1 trading plans** in Q1 2024[124](index=124&type=chunk) [Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including required CEO and CFO certifications - The report includes exhibits such as the **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32) and an amended Executive Severance and Change in Control Plan (Exhibit 10.3)[126](index=126&type=chunk)

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) This section provides an overview of Stericycle's financial performance and key business achievements for the first quarter of 2024 [Overview of First Quarter 2024 Results](index=1&type=section&id=Overview%20of%20First%20Quarter%202024%20Results) In the first quarter of 2024, Stericycle reported revenues of $664.9 million, a 2.8% decrease year-over-year, with net income increasing to $13.1 million and adjusted diluted EPS improving to $0.57, despite a negative free cash flow of $97.6 million Q1 2024 Key Financial Metrics (GAAP vs. Non-GAAP) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $664.9 M | $684.3 M | -2.8% | | Income from Operations | $38.9 M | $40.0 M | -2.8% | | Net Income | $13.1 M | $11.2 M | +16.8% | | Diluted EPS (GAAP) | $0.14 | $0.12 | +16.7% | | Adjusted Income from Operations | $90.5 M | $84.7 M | +6.8% | | Adjusted Diluted EPS (Non-GAAP) | $0.57 | $0.49 | +16.3% | | Cash from Operations | ($54.5 M) | $49.5 M | -210.1% | | Free Cash Flow | ($97.6 M) | $13.1 M | -845.0% | - Management stated they are pleased with Q1 results, highlighting improvements in adjusted EBITDA and adjusted EPS, and confirmed they are on track to achieve full-year 2024 guidance[5](index=5&type=chunk) [Key Business Highlights](index=1&type=section&id=Key%20Business%20Highlights) The company highlighted several key achievements for the quarter, including a $0.08 year-over-year increase in adjusted diluted EPS to $0.57 and a $4.9 million rise in adjusted EBITDA to $116.2 million, alongside 2.1% organic revenue growth in the core RWCS segment and completion of a workforce reduction - Adjusted diluted EPS improved by **$0.08** to **$0.57** compared to Q1 2023[6](index=6&type=chunk) - Adjusted EBITDA expanded by **$4.9 million** to **$116.2 million** year-over-year[6](index=6&type=chunk) - Regulated Waste and Compliance Services (RWCS) organic revenues grew **2.1%** compared to Q1 2023[6](index=6&type=chunk) - The company completed its workforce reduction in Q1 2024 and anticipates realizing an estimated **$40-$45 million** of in-year cost savings[6](index=6&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section provides a detailed analysis of the company's financial performance under both U.S. GAAP and Non-GAAP measures [U.S. GAAP Results](index=2&type=section&id=U.S.%20GAAP%20Results) First quarter GAAP revenues decreased to $664.9 million, primarily due to $17.7 million from divestitures, partially offset by favorable foreign exchange rates, while net income increased by $1.9 million largely due to reduced interest expense, despite a significant $104.0 million decrease in cash flow from operations - The decrease in Q1 revenue was primarily driven by divestitures (**$17.7 million**), partially offset by favorable foreign exchange rates (**$2.8 million**); organically, RWCS grew by **$9.0 million** while SID declined by **$14.4 million**[9](index=9&type=chunk) - The **$1.1 million** decrease in income from operations was mainly due to lower SID commodity-indexed revenues and higher adjusting items, which were mostly offset by cost savings of **$14.8 million**[9](index=9&type=chunk) - Cash from operations decreased by **$104.0 million** year-over-year, mainly due to a **$63.1 million** increase in accounts receivable caused by billing and collection delays from the new U.S. RWCS ERP system[9](index=9&type=chunk) [Non-GAAP Results](index=2&type=section&id=Non-GAAP%20Results) On a non-GAAP basis, organic revenues decreased by 0.8%, with RWCS growth offset by SID decline, while adjusted income from operations increased by 120 basis points as a percentage of revenue, leading to a rise in adjusted diluted EPS to $0.57, despite a significant free cash flow outflow of $97.6 million - Overall organic revenues decreased **0.8%**; RWCS organic revenues increased **2.1%**, while SID organic revenues decreased **6.3%**, mainly due to an **8.6%** decline in commodity-indexed revenues[9](index=9&type=chunk) - Adjusted income from operations as a percentage of revenues increased by **120 basis points**, primarily due to cost savings (**230 bps**) and divesting lower-margin businesses (**40 bps**), partially offset by lower SID commodity-indexed revenues (**180 bps**)[9](index=9&type=chunk) - The **$0.08** increase in adjusted diluted EPS was mainly driven by cost savings (**+$0.11**) and lower taxes/interest (**+$0.04**), partially offset by lower SID commodity revenues (**-$0.09**) and higher bad debt expense (**-$0.03**)[9](index=9&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated statements of income, balance sheets, and cash flows [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the first quarter of 2024, Stericycle's revenues were $664.9 million, a 2.8% decrease from $684.3 million in Q1 2023, with gross profit seeing a slight decline to $254.9 million, but net income attributable to common shareholders increased by 17.0% to $13.1 million, resulting in diluted EPS of $0.14 Q1 2024 vs Q1 2023 Income Statement Highlights (in millions) | Line Item | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $664.9 | $684.3 | (2.8)% | | Gross Profit | $254.9 | $261.0 | (2.3)% | | Income from Operations | $38.9 | $40.0 | (2.8)% | | Net Income Attributable to Stericycle, Inc. | $13.1 | $11.2 | 17.0% | | Diluted EPS | $0.14 | $0.12 | 16.7% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Stericycle's total assets stood at $5.44 billion, a slight increase from $5.35 billion at year-end 2023, driven by higher accounts receivable and property, plant, and equipment, while total liabilities also rose to $2.91 billion from $2.83 billion, primarily due to an increase in long-term debt Balance Sheet Summary (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $728.8 | $671.5 | | Total Assets | $5,435.7 | $5,352.6 | | Total Current Liabilities | $654.9 | $718.0 | | Long-term debt, net | $1,398.6 | $1,277.8 | | Total Liabilities | $2,912.6 | $2,829.7 | | Total Equity | $2,523.1 | $2,522.9 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2024, the company reported a net cash outflow from operating activities of $54.5 million, a significant reversal from the $49.5 million inflow in the prior-year period, primarily due to a $64.4 million increase in accounts receivable, resulting in a free cash flow outflow of $97.6 million for the quarter Q1 2024 vs Q1 2023 Cash Flow Highlights (in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | ($54.5) | $49.5 | | Net cash from investing activities | ($56.8) | ($34.5) | | Net cash from financing activities | $109.3 | ($11.6) | | Net change in cash and cash equivalents | ($4.3) | $4.0 | | **Free Cash Flow** | **($97.6)** | **$13.1** | [Segment and Revenue Analysis](index=7&type=section&id=Segment%20and%20Revenue%20Analysis) This section analyzes the company's revenue performance across different services and geographical segments [Revenue by Service and Segment](index=7&type=section&id=Revenue%20by%20Service%20and%20Segment) Total revenue declined 2.8% to $664.9 million, with an organic revenue decrease of 0.8%, as 2.1% organic growth in Regulated Waste and Compliance Services (RWCS) was offset by a 6.3% organic decline in Secure Information Destruction (SID) services, while the International segment's revenue dropped 13.7% due to divestitures Q1 2024 Revenue by Service (in millions) | Service | Revenue | Change (%) | Organic Growth (%) | | :--- | :--- | :--- | :--- | | Regulated Waste and Compliance Services | $447.8 | (0.8)% | 2.1% | | Secure Information Destruction Services | $217.1 | (6.8)% | (6.3)% | | **Total Revenues** | **$664.9** | **(2.8)%** | **(0.8)%** | Q1 2024 Revenue by Segment (in millions) | Segment | Revenue | Change (%) | Organic Growth (%) | | :--- | :--- | :--- | :--- | | North America | $569.2 | (0.7)% | (0.9)% | | International | $95.7 | (13.7)% | (0.2)% | - The total revenue decrease of **$19.4 million** was composed of a **$5.4 million** organic decline, a **$17.7 million** impact from divestitures, partially offset by a **$0.9 million** contribution from an acquisition and a **$2.8 million** positive foreign exchange effect[25](index=25&type=chunk) [Reconciliation of U.S. GAAP to Non-GAAP Financial Measures](index=4&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details the reconciliation of U.S. GAAP financial measures to non-GAAP metrics, highlighting key adjustments [Non-GAAP Financial Metrics Summary](index=4&type=section&id=Non-GAAP%20Financial%20Metrics%20Summary) In Q1 2024, Stericycle's adjusted (Non-GAAP) financial metrics showed operational improvement despite lower revenues, with adjusted income from operations growing to $90.5 million and adjusted EBITDA increasing to $116.2 million, leading to a 16.3% increase in adjusted diluted EPS to $0.57 Q1 2024 vs Q1 2023 Non-GAAP Metrics (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted Gross Profit | $257.1 | $261.0 | | Adjusted Income from Operations | $90.5 | $84.7 | | Adjusted EBITDA | $116.2 | $111.3 | | Adjusted Net Income | $53.1 | $45.5 | | Adjusted Diluted EPS | $0.57 | $0.49 | [Reconciliation Details and Adjustments](index=8&type=section&id=Reconciliation%20Details%20and%20Adjustments) To arrive at its non-GAAP figures for Q1 2024, Stericycle made total adjustments of $51.6 million to its GAAP income from operations, with significant adjustments for intangible amortization, litigation and regulatory compliance, operational optimization, and ERP and system modernization, reconciling the GAAP income from operations of $38.9 million to the adjusted figure of $90.5 million Reconciliation from GAAP Income from Operations to Adjusted EBITDA Q1 2024 (in millions) | Description | Amount | | :--- | :--- | | **U.S. GAAP Income from Operations** | **$38.9** | | ERP and System Modernization | $4.4 | | Intangible Amortization | $27.8 | | Operational Optimization | $5.6 | | Portfolio Optimization | $1.6 | | Litigation, Settlements and Regulatory Compliance | $12.2 | | **Adjusted Income from Operations** | **$90.5** | | Depreciation | $25.7 | | **Adjusted EBITDA** | **$116.2** | - Total adjustments to income from operations increased from **$44.7 million** in Q1 2023 to **$51.6 million** in Q1 2024, with cash-related adjustments more than doubling to **$22.9 million**[31](index=31&type=chunk) [Explanation of Adjustments](index=9&type=section&id=Explanation%20of%20Adjustments) The adjustments primarily consist of several key categories, including ERP and System Modernization, Intangible Amortization, Operational Optimization (severance costs), Portfolio Optimization (strategic business reviews and divestiture costs), and Litigation, Settlements, and Regulatory Compliance (professional fees and state tax provisions) - Operational Optimization adjustments in Q1 2024 amounted to **$5.6 million**, primarily related to severance costs associated with headcount reductions[28](index=28&type=chunk)[31](index=31&type=chunk) - Litigation, Settlements, and Regulatory Compliance adjustments in Q1 2024 totaled **$12.2 million**, which included **$9.3 million** in consulting/professional fees (including FCPA monitor fees) and a **$2.9 million** provision for multi-year state unemployment tax matters[28](index=28&type=chunk)[31](index=31&type=chunk) - Portfolio Optimization adjustments in Q1 2023 included a **$5.0 million** loss related to the divestiture of the company's International container manufacturing operations[29](index=29&type=chunk)[31](index=31&type=chunk)