Stericycle, Inc. (NASDAQ:SRCL.P) Q1 2016 Earnings Conference Call - Final Transcript

Apr 28, 2016 • 05:00 pm ET


Stericycle, Inc. (NASDAQ:SRCL.P) Q1 2016 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Steve and I will be your conference operator today. At this time, I would like to welcome everyone to the Stericycle First Quarter Earnings Conference Call. [Operator Instructions] After the speakers remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

VP of Corporate Finance, Sean McMillan, you may begin your conference.

Sean McMillan

Welcome to Stericycle's first quarter 2016 conference call. I will now read the Safe Harbor statement. This conference call may contain forward-looking statements that involve risks and uncertainties, some of which are beyond our control, for example, general economic and market conditions. Our actual results could differ significantly from the results described in forward-looking statements.

Factors that could cause such differences include changes in governmental regulations of the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information; increases in transportation and other operating costs; the level of governmental enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information; our obligations to service our substantial indebtedness and to comply with the covenants and the restrictions contained in our private placement notes, term loan credit facility and revolving credit facility; our ability to execute our acquisition strategy and to integrate acquired businesses; competition and demand for services in the regulated waste and secure information destruction industries; political, economic and currency risks related to our foreign operations; impairments of goodwill or other indefinite-lived intangibles; variability in the demand for services we provide on a project or non-recurring basis; exposure to environmental liabilities, fluctuations in the price we receive for the sale of paper, disruptions in or attacks on our information technology systems; compliance with existing and future legal and regulatory requirements as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K.

As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends. We make no commitment to disclose any subsequent revisions to forward-looking statements.

I will now turn it over to Charlie Alutto, CEO.

Charles Alutto

Thank you for joining us on today's call. In the first quarter, we experienced strong revenue growth, strong cash flow and solid sequential growth for the Shred-It acquisition. Results in the quarter were unfavorably impacted by the timing of the Shred-It synergies and lower industrial hazardous waste revenues. Despite the challenges in the quarter, we remain confident about our business.

Joining me on today's call will be Dan Ginnetti, CFO; and Brent Arnold, COO. I will now turn it over to Dan.

Daniel Ginnetti

Thank you, Charlie. The results for the first quarter are as follows: revenues were $874.2 million, up 31.8% from $663.3 million in Q1 2015. And internal growth, excluding returns and recalls revenues, was up 5.6%.

Domestic revenues were $649.7 million, of which $624.9 million was domestic