The divestitures we've made, quite frankly, 19 in the last four, five years have allowed us to really focus on driving operational and financial performance in the core markets and in our core businesses. So I think I can guarantee it certainly isn't anything like the bouncing ball you've seen over the last few years as right now we're really -- we have the ability to buckle down, get very focused and execute to the plans that we have. But it still remains a priority simply because where we constantly look ...

| --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | Investor Presentation Fourth Quarter and Fiscal Year 2023 Results February 28, 2024 | | | | | | | | | | | This document may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. When we use words such as "believes", "expects", "anticipates", "estimates", "may", "plan", "wi ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Stericycle provides regulated waste and information destruction services through North America and International segments, prioritizing portfolio optimization, efficiency, and debt reduction - Stericycle operates through two segments, North America and International, providing Regulated Waste and Compliance Services (RWCS) and Secure Information Destruction (SID) services[21](index=21&type=chunk)[22](index=22&type=chunk) Revenues by Service Category (2023 vs 2022) | Service Category | Segment | 2023 (in millions) | 2022 (in millions) | | :--- | :--- | :--- | :--- | | Regulated Waste and Compliance Services | North America | $1,474.4 | $1,468.8 | | Secure Information Destruction Services | North America | $781.4 | $794.3 | | **Total North America** | | **$2,255.8** | **$2,263.1** | | Regulated Waste and Compliance Services | International | $301.4 | $329.4 | | Secure Information Destruction Services | International | $102.1 | $112.2 | | **Total International** | | **$403.5** | **$441.6** | | **Total Revenues** | | **$2,659.3** | **$2,704.7** | - In 2023, the company divested eight businesses for aggregate net proceeds of approximately **$85 million** as part of its portfolio optimization strategy, and in January 2024, it acquired a U.S. regulated waste business for approximately **$16 million**[25](index=25&type=chunk)[26](index=26&type=chunk) - Key business priorities include quality of revenue, operational efficiency, ERP implementation (deployed in U.S. RWCS in Q3 2023), portfolio optimization, and debt reduction (debt leverage ratio reduced to **2.85 times**)[37](index=37&type=chunk) - In 2023, the Secure Information Destruction business collected approximately **462,000 tons** of Sorted Office Paper (SOP), an **11.7% decrease** from 2022, with the average SOP price at **$174 per ton**, a **26.0% decrease** from 2022[44](index=44&type=chunk) - The company maintains a strong customer base with a revenue retention rate of approximately **90%** and long-term contracts typically ranging from three to five years[29](index=29&type=chunk)[47](index=47&type=chunk) - As of December 31, 2023, the company's workforce comprised over **13,500 team members**, and the voluntary turnover rate improved to approximately **22%** in 2023 from **28%** in 2022[53](index=53&type=chunk)[54](index=54&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant market, operational, regulatory, and financial risks, including commodity price volatility, ERP implementation challenges, extensive governmental oversight, and substantial debt obligations - The business is affected by the volatile demand and price for recycled paper (SOP), a commodity, with a decline in paper tonnage collected observed due to increased use of digital technology and remote work[94](index=94&type=chunk) - Complications with the ongoing ERP system modernization could negatively impact business operations, financial reporting, and internal controls, as the 2023 RWCS deployment impacted the timing of billing and collections[102](index=102&type=chunk) - The company is subject to extensive governmental regulation, and failure to comply or obtain necessary permits could result in significant liabilities, adverse publicity, and harm to the business[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - As of December 31, 2023, the company had goodwill of **$2.76 billion**, and changes in market conditions or business performance could lead to significant non-cash impairment charges[133](index=133&type=chunk) - The company has substantial indebtedness (**$1.31 billion** as of Dec 31, 2023), and covenants in its Credit Agreement and Senior Notes could restrict operations and the ability to pursue business opportunities, with a failure to comply potentially leading to default and acceleration of debt[138](index=138&type=chunk)[140](index=140&type=chunk)[143](index=143&type=chunk) - The company is subject to pending legal proceedings and government investigations, including matters related to the FCPA, environmental statutes, and the Controlled Substances Act, which may result in material liability[118](index=118&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) [Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[160](index=160&type=chunk) [Cybersecurity](index=30&type=section&id=Item%201C.%20Cybersecurity) Stericycle has an integrated cybersecurity risk management program overseen by the Audit Committee of the Board of Directors, with no material incidents reported - Cybersecurity risk management is integrated into the company's broader risk management framework and involves external experts for evaluation and testing[162](index=162&type=chunk)[163](index=163&type=chunk) - The Audit Committee of the Board of Directors leads oversight of cybersecurity risks, receiving regular updates from management, including the CIO[167](index=167&type=chunk)[169](index=169&type=chunk) - The company reports that it has not encountered cybersecurity challenges that have materially impaired its operations or financial standing[165](index=165&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) The company maintains approximately 396 global facilities and a vehicle fleet, which are deemed adequate and subject to ongoing capital investments for modernization - The company operates a worldwide network of approximately **396 facilities**, including treatment plants, processing centers, and transfer stations[34](index=34&type=chunk) - Management believes current properties are sufficient for operations and continues to modernize facilities and fleet through capital investments[171](index=171&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 19 of the Consolidated Financial Statements - Information regarding legal proceedings is incorporated by reference from Note 19 of the Financial Statements[172](index=172&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[173](index=173&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Stericycle's common stock trades on Nasdaq, with no cash dividends or share repurchases made from 2021-2023, and its stock performance has lagged key indices - The company's common stock is listed on the Nasdaq Global Select Market (SRCL)[176](index=176&type=chunk) - No cash dividends were paid on common stock during 2023, 2022, or 2021[176](index=176&type=chunk) - The company did not purchase any of its common stock during 2023, 2022, or 2021[176](index=176&type=chunk) [Reserved](index=32&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Stericycle's revenues decreased to **$2.66 billion** due to divestitures, but organic revenue grew, while a net loss was reported primarily from divestiture losses, despite improved operating cash flow and reduced debt leverage [Results of Operations](index=38&type=section&id=Item%207.%20Results%20of%20Operations) In 2023, total revenues decreased to **$2.66 billion** due to divestitures, despite organic growth, leading to a net loss of **$21.3 million** primarily from a significant divestiture loss Revenue Components of Change (2023 vs 2022) | Service Category | Organic Growth % | Divestitures % | Foreign Exchange % | Total Change % | | :--- | :--- | :--- | :--- | :--- | | Regulated Waste and Compliance Services | 4.2% | (5.3%) | 0.1% | (1.2%) | | Secure Information Destruction Services | (1.7%) | (0.6%) | (0.2%) | (2.5%) | | **Total Revenues** | **2.2%** | **(3.8%)** | **0.0%** | **(1.7%)** | - Gross profit decreased by **$11.0 million** to **$1,014.6 million** in 2023, but as a percentage of revenues, gross profit margin improved to **38.2%** from **37.9%** in 2022, driven by productivity initiatives and pricing actions, partially offset by lower SID commodity revenues and higher fleet costs[217](index=217&type=chunk) - SG&A expenses decreased by **$13.6 million** to **$873.9 million** in 2023, primarily due to the impact of divestitures and lower bad debt expense, partially offset by increased incentive compensation[218](index=218&type=chunk) - The company recorded a net loss on divestitures of **$63.4 million** in 2023, a significant shift from the **$15.6 million** net gain recorded in 2022[219](index=219&type=chunk) Segment Adjusted Income from Operations (2023 vs 2022) | Segment | 2023 (in millions) | 2022 (in millions) | Change % | | :--- | :--- | :--- | :--- | | North America | $619.0 | $607.1 | 2.0% | | International | $38.2 | $34.1 | 12.0% | | Other Costs | $(341.7) | $(317.5) | 7.6% | [Liquidity and Capital Resources](index=41&type=section&id=Item%207.%20Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by improved operating cash flow of **$243.3 million** and a **$1.2 billion** credit facility, with plans to refinance **$600 million** Senior Notes Cash Flow Summary (2023 vs 2022) | Cash Flow Activity | 2023 (in millions) | 2022 (in millions) | | :--- | :--- | :--- | | Net cash from operating activities | $243.3 | $200.2 | | Net cash from investing activities | $(43.8) | $(84.6) | | Net cash from financing activities | $(220.4) | $(111.0) | - The increase in operating cash flow was primarily driven by lower FCPA settlement payments (**$72.8 million** lower YoY) and reduced annual incentive payments, partially offset by an increase in accounts receivable[232](index=232&type=chunk) - Days Sales Outstanding (DSO), net of deferred revenues, rose to **66 days** at year-end 2023 from **55 days** at year-end 2022, mainly due to the timing of U.S. RWCS customer billing and collections associated with the ERP implementation[233](index=233&type=chunk) - The company had **$1.11 billion** of available capacity under its **$1.2 billion** Credit Facility as of December 31, 2023[227](index=227&type=chunk) - On February 1, 2024, the company issued a redemption notice for all **$600.0 million** of its outstanding Senior Notes due in 2024, with a redemption date of March 14, 2024, intending to use its Revolving Credit Facility[227](index=227&type=chunk)[391](index=391&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Item%207.%20Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies including goodwill impairment and income taxes, with no goodwill impairment recognized in 2023 and a reduced valuation allowance for deferred tax assets - The allowance for doubtful accounts was **$44.7 million** as of December 31, 2023, down from **$53.3 million** in 2022[250](index=250&type=chunk) - The annual goodwill impairment test was performed as of October 1, 2023, using a qualitative assessment for the RWCS U.S. unit and a quantitative assessment for the Domestic SID and Europe units, with no impairment recognized[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) - As of the October 1, 2023 assessment, the estimated fair value of each reporting unit exceeded its carrying value by at least **40%**, indicating a significant cushion against impairment[261](index=261&type=chunk) - The company records a valuation allowance against deferred tax assets that are not more likely than not to be realized, with the valuation allowance at year-end 2023 at **$36.8 million**, a decrease from **$67.2 million** in 2022, primarily due to divestitures[267](index=267&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rate fluctuations, commodity price volatility (SOP, diesel), and foreign currency exposure, impacting its financial performance - A hypothetical **100 basis point** increase in interest rates on variable rate debt would increase annual pre-tax interest expense by approximately **$3.5 million**[273](index=273&type=chunk) - The company is subject to market risks from commodity price changes, including SOP, diesel fuel, and utilities, which can impact revenues and margins[274](index=274&type=chunk) - As of December 31, 2023, the company had cumulative currency translation adjustment losses of approximately **$184.5 million** related to its foreign operations[276](index=276&type=chunk) [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2023, 2022, and 2021, including a net loss of **$21.4 million** in 2023, with an unqualified auditor opinion [Consolidated Financial Statements](index=48&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a **$21.4 million** net loss in 2023, stable total assets of **$5.35 billion**, and strong operating cash flow of **$243.3 million** Consolidated Statement of (Loss) Income Highlights | Metric (in millions, except EPS) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenues | $2,659.3 | $2,704.7 | $2,646.9 | | Gross Profit | $1,014.6 | $1,025.6 | $1,017.2 | | Income from Operations | $77.3 | $153.7 | $72.3 | | Net (Loss) Income Attributable to Stericycle | $(21.4) | $56.0 | $(27.8) | | Diluted (Loss) Earnings Per Share | $(0.23) | $0.61 | $(0.30) | Consolidated Balance Sheet Highlights | Metric (in millions) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $671.5 | $558.7 | | Goodwill | $2,755.6 | $2,784.9 | | Total Assets | $5,352.6 | $5,334.1 | | Total Current Liabilities | $718.0 | $621.9 | | Long-term debt, net | $1,277.8 | $1,484.0 | | Total Liabilities | $2,829.7 | $2,909.6 | | Total Equity | $2,522.9 | $2,424.5 | Consolidated Statement of Cash Flows Highlights | Metric (in millions) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $243.3 | $200.2 | $303.1 | | Net cash from investing activities | $(43.8) | $(84.6) | $(90.1) | | Net cash from financing activities | $(220.4) | $(111.0) | $(207.9) | | Cash and cash equivalents at end of year | $35.3 | $56.0 | $55.6 | [Note 4 – Restructuring, Divestitures, and Asset Impairments](index=61&type=section&id=Note%204%20%E2%80%93%20Restructuring%2C%20Divestitures%2C%20and%20Asset%20Impairments) In 2023, the company divested multiple international operations, resulting in a total pre-tax net loss of **$63.4 million**, including significant currency translation losses - In 2023, the company divested operations in multiple international locations, including Brazil, Republic of Korea, Australia, and Singapore[361](index=361&type=chunk)[362](index=362&type=chunk) 2023 Divestiture Losses (Gains), Net | Divestiture | Total Loss (Gain) (in millions) | | :--- | :--- | | Romania Operations | $4.2 | | UAE Joint Venture | $0.5 | | Netherlands Dental Operations | $1.0 | | Republic of Korea Operations | $(50.8) | | Australia and Singapore Operations | $7.3 | | Brazil Operations | $96.2 | | International Container Manufacturing | $5.0 | | **Total Divestiture losses, net** | **$63.4** | - The company recognized **$4.1 million** in Operational Optimization charges in 2023, primarily for severance and facility closure costs[357](index=357&type=chunk) [Note 9 – Debt](index=66&type=section&id=Note%209%20%E2%80%93%20Debt) As of December 31, 2023, total debt was **$1.31 billion**, with the company in compliance with covenants and planning to refinance **$600 million** Senior Notes Debt Composition | Debt Instrument | Dec 31, 2023 (in millions) | Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | $1.2B Credit Facility | $31.0 | $154.1 | | $125M Term Loan | $125.0 | $200.0 | | $600M Senior Notes (due 2024) | $600.0 | $600.0 | | $500M Senior Notes (due 2029) | $500.0 | $500.0 | | Other Debt | $49.2 | $63.3 | | **Total Debt** | **$1,305.2** | **$1,517.4** | - The company was in compliance with its financial covenants as of December 31, 2023, with a leverage ratio of **2.85 to 1.00**[384](index=384&type=chunk) - The company intends to refinance its **$600 million** Senior Notes due in July 2024 using its revolving credit facility and issued a redemption notice on February 1, 2024[391](index=391&type=chunk) [Note 19 – Legal Proceedings](index=79&type=section&id=Note%2019%20%E2%80%93%20Legal%20Proceedings) Stericycle is involved in various legal and regulatory matters, including ongoing FCPA compliance monitoring and investigations by the U.S. Attorney and DEA - The company has substantially completed its payment obligations related to the 2022 FCPA settlement and is under a two-year independent compliance monitorship followed by one year of self-reporting[452](index=452&type=chunk) - An investigation by the U.S. Attorney for the Southern District of New York and the EPA into the company's former Domestic Environmental Solutions business is ongoing, with an accrual made that is not material[453](index=453&type=chunk) - The company is cooperating with an ongoing criminal and civil investigation by the DEA and U.S. Attorney's Office for the Eastern District of California related to its former ESOL Retail Controlled Substances Business, for which the company cannot estimate a reasonably possible loss[459](index=459&type=chunk)[460](index=460&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=81&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - None[464](index=464&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[465](index=465&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, based on the COSO 2013 framework[468](index=468&type=chunk) - The company's independent auditor, Ernst & Young LLP, issued an unqualified opinion on the effectiveness of internal control over financial reporting[472](index=472&type=chunk) [Other Information](index=84&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during the fourth quarter of 2023 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the fourth quarter of 2023[479](index=479&type=chunk) [Disclosures Regarding Foreign Jurisdictions that Prevent Inspections](index=84&type=section&id=Item%209C.%20Disclosures%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[480](index=480&type=chunk) Part III Part III incorporates information on directors, executive officers, corporate governance, compensation, security ownership, and accountant fees by reference from the 2024 proxy statement, with **5.6 million** securities available for future issuance under equity plans [Directors, Executive Officers and Corporate Governance](index=85&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the company's 2024 proxy statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[483](index=483&type=chunk)[484](index=484&type=chunk)[486](index=486&type=chunk) [Executive Compensation](index=85&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2024 proxy statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[487](index=487&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=85&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2024 proxy statement, with **5.6 million** securities available for future issuance under equity compensation plans - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[488](index=488&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be Issued Upon Exercise (in millions) | Weighted-Average Exercise Price | Securities Remaining Available for Future Issuance (in millions) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 1.8 | $64.88 | 5.6 | [Certain Relationships and Related Transactions, and Director Independence](index=86&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the company's 2024 proxy statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[492](index=492&type=chunk)[493](index=493&type=chunk) [Principal Accountant Fees and Services](index=86&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2024 proxy statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[494](index=494&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=87&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - Lists all financial statements, schedules, and exhibits filed with the Form 10-K[497](index=497&type=chunk)[498](index=498&type=chunk) [Form 10-K Summary](index=90&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable and contains no information - None[502](index=502&type=chunk)

EXHIBIT 99.1 FOR FURTHER INFORMATION CONTACT: Stericycle Investor Relations 847-607-2012 Stericycle Media Relations 847-964-2288 Stericycle, Inc. Reports Results For The Fourth Quarter 2023 BANNOCKBURN, Ill., February 28, 2024 - Stericycle, Inc. (Nasdaq: SRCL) today reported results for the fourth quarter ended December 31, 2023. Revenues for the fourth quarter were $652.0 million, a decrease of 2.7% compared to $670.4 million in the fourth quarter of 2022. Income from operations was $37.1 million, compared ...

Financial Data and Key Metrics - Q3 2023 revenues were $653.5 million, down from $690.3 million in Q3 2022, primarily due to divestitures of $32.4 million, partially offset by favorable foreign exchange rates of $6.1 million [18] - Organic revenues decreased 11.6% excluding foreign exchange impacts, driven by lower commodity index revenues, with sorted office paper pricing down over $100 per ton year-over-year [19] - Adjusted income from operations was $70.3 million (10.8% of revenues), down from $92 million (13.3% of revenues) in Q3 2022, with a 250 basis point decline due to lower paper and fuel surcharges, higher compensation costs, and a self-insurance settlement [21] - DSO (Days Sales Outstanding) improved in Q3 2023 compared to Q3 2022, driven by better timing of customer billing and collections [22] - Free cash flow guidance for 2023 was revised to $170 million to $190 million, down from $175 million to $205 million, due to higher capital expenditures and severance costs [45] Business Line Performance - Regulated Waste and Compliance Services revenues were $439.9 million in Q3 2023, down from $447.8 million in Q3 2022, but organic revenues grew 4.1%, driven by pricing actions [104] - Secure Information Destruction revenues declined 11.6% organically, mainly due to lower commodity index revenues and fuel surcharges, with recycling paper revenues down 7.6% ($16.3 million) [130][131] - International Regulated Waste and Compliance Services organic revenues increased 5.4%, driven by pricing levers, partially offset by lower waste volumes [180] Market Performance - North America Regulated Waste and Compliance Services organic revenues grew 3.9% during the ERP deployment, despite operational challenges [94] - International Secure Information Destruction organic revenues decreased 9.2%, mainly due to lower recycling revenues and fuel surcharges [20] - Customer satisfaction scores dropped initially during the ERP deployment but have since improved above pre-go-live levels [10] Strategy and Industry Competition - The company completed a targeted workforce reduction in October 2023, expected to generate $8 million in annual savings, with a $3 million charge [17] - The ERP deployment in the U.S. was largely completed, with 80% of volume running on the new platform, improving operational efficiency and customer experience [143][96] - The company is focusing on margin expansion through strategic initiatives, careful hiring, attrition, and targeted workforce reductions, supported by ERP technology investments [17][37] Management Commentary on Operating Environment and Outlook - Management highlighted the successful ERP deployment, with no significant system issues and improved customer engagement [96][97] - The company expects to achieve long-term margin expansion, with adjusted EBITDA growth of 13% to 17% starting in 2024, driven by operational efficiencies and cost savings [72][86] - Commodity price volatility, particularly in sorted office paper, remains a challenge, but the company has mechanisms to mitigate 60% of the volatility when prices fall below $192 per ton [32][181] Other Important Information - The company completed three divestitures in 2023, bringing the total to 19 since 2019, which has helped streamline operations and reduce debt [179][162] - Construction of the McCarran incinerator remains on track, with completion expected in the first half of 2024 [103] - The company was recognized for the third consecutive year by Women in Trucking as a top company for women to work for [186] Q&A Session Summary Question: ERP Deployment and System Dependencies - The company confirmed that the U.S. ERP deployment is largely complete, with only a few edge cases remaining. Canada and international operations are still transitioning, with a goal to fully move off legacy systems by 2025 [28][59][119] - Management expressed confidence in the system's stability, with most major issues resolved and a focus now on enhancements and user proficiency [47][63] Question: Commodity Price Volatility and Surcharge Mechanism - Management explained the surcharge mechanism, which offsets 60% of volatility when sorted office paper prices fall below $192 per ton. The company expects to mitigate 30% of the year-over-year decline in paper prices for the rest of 2023 [32][181] - The RISI rate has stabilized around $140 per ton, which is closer to the 15-year average, indicating a return to more normal market conditions [66][175] Question: Workforce Reduction and Cost Savings - The targeted workforce reduction in October 2023 is expected to generate $8 million in annual savings, with additional opportunities for cost savings through attrition and operational improvements [17][37][165] Question: Long-Term Margin Expansion and Free Cash Flow - Management reiterated the long-term outlook for 13% to 17% adjusted EBITDA growth, starting in 2024, driven by ERP efficiencies, cost savings, and strategic initiatives [72][86] - Free cash flow is expected to improve, with the company targeting a 50% free cash flow conversion rate, supported by operational improvements and reduced manual interventions [35][168] Question: National Accounts and Service Stops - Service stops in national accounts declined by 4% year-over-year, driven by customer site closures and reduced service frequencies. However, the company remains an essential service and retains these customer relationships [15][16][144]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q [Mark One] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37556 _____________________________________________ ...

Company Participants Conference Call Participants Operator I will now hand over to your host, Andrew Ellis, Vice President, Investor Relations, Enterprise Finance to begin. Andrew, please go ahead. Good morning, and thank you for joining Stericycle's 2023 Second Quarter Earnings Call. On the call today will be Cindy Miller, our Chief Executive Officer; and Janet Zelenka, our Chief Financial Officer and Chief Information Officer. The discussion today includes forward-looking statements that involve risks and ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q [Mark One] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37556 __________________________________________________ ...

| --- | --- | --- | --- | |-----------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Investor Presentation First Quarter 2023 Results April 27, 2023 | | | | | | | | | 2 Stericycle's Key Business Priorities • Operational Efficiency, Modernization and Innovation • Debt Reduction and Leverage Improvement 3 ($ millions except for EPS) Three Months Ended March 31, 2023 Income from Operations $40.0 Adjusted EBITDA(2) $111.3 Adjusted Dilute ...

Stericycle, Inc. (NASDAQ:SRCL) Q1 2023 Earnings Conference Call April 27, 2023 9:00 AM ET Andrew Ellis - Vice President, Investor Relations Cindy Miller - Chief Executive Officer Jan Zelenka - Chief Financial Officer & Chief Information Officer Sean Dodge - RBC Capital Markets David Manthey - Baird Scott Schneeberger - Oppenheimer Scott Levine - Bloomberg Intelligence Jack Wilson - Truist Securities Kevin Steinke - Barrington Research Brian Butler - Stifel Michael Hoffman - Stifel Hello, and welcome to the ...