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$SRCL 1Q15 10-Q: Net cash provided by Operating Activities was $132.554MM vs. $145.849MM in 1Q14. Net cash used in Investing Activities was $55.309MM vs. $30.629MM in 1Q14. Net cash used in Financing Activities was $57.604MM vs. $132.822MM in 1Q14.
$SRCL reported lower earnings in 3Q17. Impacting the results were lower manufacturing and industrial services, cost pressure and the recent hurricanes. Net income attributable to common shareholders fell 42% to $35.4MM, or $0.41 per share, from $61.5MM, or $0.72 per share in 3Q16. Adj. EPS fell 11% to $1.10. Revenue was down 1% to $882.8MM.
Compliance major $SRCL reported a slump in 1Q17 earnings, despite revenue increase, hurt by higher expenses. Net income fell 24.23% to $58.18MM or $0.62 per share from $76.78MM or $0.78 per share a year ago. Revenue fell 2.08% to $892.4MM, helped by acquisitions which contributed $10MM. Excluding items, $SRCL earned $1.09 per share, up 1.2% YoY.
For 2017, $SRCL expects EPS to be $4.54-4.74 and revenues to be $3.51-3.64Bil. Regulated waste and compliance services revenue is expected to be $2.01-2.06Bil. Communication and related services revenue is expected to be $340-370MM depending on recall revenues. Manufacturing & industrial services revenue is expected to be $375-395MM.
During 4Q16, $SRCL closed nine tuck-in acquisitions. The nine acquisitions were five domestic and four international with total revenues in 4Q16 of approx. $1.1MM and annualized of approx. $12.4MM. The company’s worldwide acquisition pool remains robust with over $100MM of annualized revenues in multiple geographies and lines of business.
In 4Q16, $SRCL’s domestic and Canada revenues were $725.3MM and excluding the impact of acquisitions and FX, internal growth was 4.4%. Domestic-only revenues were $686.6MM, of which $633.6MM was regulated waste and compliance services revenue and $53MM was recall. International revenues including Canada were $219.8MM.
$SRCL reported a drop in 4Q16 earnings due to higher costs and expenses. Net income fell to $18.51MM or $0.14 per share from $80.54MM or $0.82 per share last year. Revenue grew to $906.4MM from $888.3MM. Non-GAAP EPS decreased to $1.00 from $1.26.
$SRCL said it expects 2016 EPS guidance, adjusted for amortization expense, to be in the range of $4.68-4.75. The company expects revenue for 2016 in the range of $3.56-3.60Bil, depending on assumptions for growth and the impact of ForEx rates.
$SRCL said in 2Q16, it closed 10 acquisitions, 6 domestic and 4 international. The international acquisitions were one each in Spain, Romania, South Korea, and the UK. Revenues from the 10 acquisitions were approx. $1.5MM in 2Q16 and annualized are approx. $10.6MM.
$SRCL stated that its CapEx was $32.9MM in 2Q16, or 3.7% of revenues. The company added that DSO was 64 days in 2Q16, and as reported year-to-date cash from operations was $245.4MM. When adjusting for recall reimbursement and other items, cash from operations was $282.9MM.
$SRCL said its covenant debt-to-EBITDA ratio was 3.45, and the unused portion of the revolver was approx. $506MM at the end of 2Q16. In 2Q16, the company repurchased 32,962 shares of common stock on the open market in the amount of $3.1MM. At the end of 2Q16, $SRCL had authorization to purchase 3.3MM shares.
$SRCL expects 2016 revenue to be $3.6-3.66Bil. Internal growth rates are expected to be SQ, 7-9%; LQ, 4-7%; international, 6-9%; and recall and returns revenue $95-115MM. Free cash flow is expected to be $435-455MM and CapEx is expected to be $125-135MM in 2016.
For 2016, $SRCL expects EPS to be $4.90-5.05, reflecting unfavorable impact of timing of the Shred-It synergies, softer industrial hazardous waste volume, and higher costs associated with international operations. Company expects 2016 as reported tax rate to be about 35.5%.
In 1Q16, $SRCL closed 7 acquisitions, 5 domestic and 2 international. Revenues from the 7 acquisitions were about $1MM in the quarter and annualized were about $12.4MM. Company's worldwide acquisition pool has over $100MM in annualized revenues in multiple geographies and lines of business.
Waste disposal company $SRCL's 1Q16 revenue rose 31.8% versus 1Q15, with internal growth, excluding returns and recalls revenues, up 5.6%. 1Q16 domestic internal growth was up 5%, consisting of SQ up 6% and LQ up 4%. International internal growth, adjusted for unfavorable FX impact, was up 7%.