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For the second quarter, net income of the Lake Forest, Illinois-based company rose to $43.90 million or $0.51 per share from $38.69 million or $0.44 per share in the same quarter a year ago.
Results for the quarter included the effect of $0.8 million transactional expenses related to acquisitions, while the prior quarter included the effect of $0.1 million charges related to an arbitration settlement.
Excluding charges, earnings were up 17.5% at $0.52 per share, compared to $0.44 in the year-earlier quarter.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.51 per share for the quarter. Analysts' estimate typically excludes one-time items.
Revenues for the quarter increased 4.1% to $289.27 million from $277.79 million in the prior-year quarter, missing Street estimates of $293.01 million.
Revenues were helped by a contribution of $20.5 million from acquisitions less than 12 months old. Adjusted for an unfavorable foreign exchange impact of $14.3 million, revenues would have increased 9.3% from the second quarter of 2008.
Regulated returns management services revenues were $18.3 million versus $26.0 million in 2008.
In the immediately preceding first quarter, Stericycle reported a profit that rose 28.4% to $40.66 million or $0.47 per share, reflecting contribution from its previous acquisition. Revenues for the quarter increased 8.8% to $277.09 million.
Amongst others in the industry, hazardous and industrial waste management services provider American Ecology Corp. (ECOL | Quote | Chart | News | PowerRating), in its second quarter, reported a profit that dropped to $3.52 million or $0.19 per share, reflecting a decrease in treatment and disposal revenue and transportation related revenue. Revenue for the period were down at $36.38 million.
Another major player, Waste Management, Inc. (WMI | Quote | Chart | News | PowerRating), in its first quarter, reported a 35.7% decline in profit of $155 million or $0.31 per share hurt by 14% revenue decline, due to lower volumes and the deterioration of the recycling commodities markets. Operating revenues for the quarter declined 14% to $2.81 billion.
For the quarter under review, gross profit of Stericycle was $136.5 million, up 10.9% from $123.2 million in the same quarter last year. Gross profit as a percentage of revenue was 47.2% versus 44.3% in the second quarter of 2008.
Income from operations was $79.54 million, compared to $70.93 million in the same quarter last year.
Selling, general and administrative expenses increased to $54.22 million from $50.97 million in the year-earlier quarter. Total other expense was $9.07 million,compared to $8.50 million in the corresponding quarter last year. Income tax expense for the quarter was $26.57 million, up from $23.74 million in the prior-year quarter.
On June 24, 2009, the company entered into a three-year term loan credit agreement, under which the company initially borrowed a $50 million and also signed additional borrowing of $20 million under the term credit agreement. The interest rate is fluctuating, based on LIBOR plus the applicable margin provided in the credit agreement.
For the six-month period, net income grew to $84.56 million or $0.97 per share from $70.35 million or $0.79 per share in the year-ago period. On an adjusted basis, earnings increased to $0.99 per share from $0.83 per share in the prior-year quarter. Revenues were $566.36 million, up 6.3% from $532.57 million in the same period last year.
On May 11, 2009, brokerage Robert W. Baird Upgraded Stericycle to 'Outperform' from 'Neutral,' with a mean target of $61.33.
SRCL closed Tuesday's regular trading at $53.18, up $0.16 or 0.30%, on a volume of 0.83 million shares. In the last 52-week period, the stock traded in the range of $44.36 to $66.15, with a three-month average volume of 0.81 million shares.
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