Stericycle, Inc. (NASDAQ:SRCL) Q2 2016 Earnings Conference Call - Final Transcript

Jul 28, 2016 • 05:00 pm ET


Stericycle, Inc. (NASDAQ:SRCL) Q2 2016 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Sara and I will be your conference operator today. At this time, I would like to welcome everyone to the Stericycle Second Quarter Earnings Conference Call. [Operator Instructions] Thank you.

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

Sean McMillan

Welcome to Stericycle's second 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 the 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 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'll now turn it over to Charlie Alutto, CEO.

Charlie Alutto

Thanks, Sean. Thank you for joining us on today's call. In the second quarter despite softer than anticipated revenues, the team was able to provide strong sequential increases of profitability, which allowed us to deliver a solid quarter. We are pleased with the results given the time and effort that our team members invested in both running our business and implementing our recently announced organizational redesign.

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

Dan Ginnetti

Thanks, Charlie. Before I give the numbers, I'd like to highlight some of the changes that will enhance our reporting and disclosure to our internal and our external stakeholders. Our Q2 press release included a global revenue table and additional non-GAAP disclosures. In our second quarter 10-Q, we will have changes to our