Stericycle (SRCL) shares ended the last trading session 14.6% higher at $59.05. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.6% gain over the past four weeks. This increased investor optimism is linked to the news of the company's acquisition by Waste Management in a deal valued at around $7.2 billion, including nearly $1.4 billion in debt. This medical waste management company is expected to post quarterly e ...

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)