) reported year-over-year improvements in both revenues and net
income in fourth quarter 2013, primarily aided by accretive
acquisitions. The company reported net income of $78.2 million or
90 cents per share in fourth quarter 2013 compared with $70.1
million or 80 cents per share in the year-earlier quarter.
For full year 2013, the company reported net income of $311.4
million or $3.56 per share compared with $268.0 million or $3.08
per share in 2012.
Excluding one-time non-recurring items, adjusted earnings for the
reported quarter were 99 cents per share versus 89 cents in the
year-ago quarter. The adjusted earnings beat the Zacks Consensus
Estimate of 96 cents.
Adjusted earnings for full year 2013 were $3.75 per share
compared to $3.34 in the previous year. Adjusted earnings for
2013 beat the Zacks Consensus Estimate of $3.73.
Revenues & Margins
Revenues for the reported quarter were up 12.8% year over year to
$567.9 million, beating the Zacks Consensus Estimate of $566
million. The increase in revenues was primarily attributable to
inorganic growth, which contributed approximately $32.4 million
of the $64.3 million year-over-year rise.
Revenues for full year 2013 were up 12.0% year over year to
$2,142.8 million, but missed the Zacks Consensus Estimate of
Domestic revenues (GAAP) increased 11.0% year over year to $394.6
million in the reported quarter. International revenues (GAAP)
were up 17.0% year over year to $173.3 million.
Gross profit for the reported quarter aggregated $253.3 million
versus $227.0 million in the year-ago quarter. Gross margin in
fourth quarter 2013 was 44.6% compared with 45.1% in the
As of Dec, 30, 2013, cash and cash equivalents totaled $62.0
million compared with $31.3 million at year-end 2012. Net cash
provided by operating activities, as of Dec 30, 2013 was $403.5
million versus $387.4 million in the year-ago period.
Long-term debt (net of current portion) stood at $1,280.7 million
compared with $1,268.3 million in the year-ago period.
Debt-to-EBITDA ratio was 2.1x at quarter end. The company had a
borrowing capacity of $573 million under its revolving credit
During the reported quarter, the company repurchased 424,729
shares for $49.2 million and currently has an authorization to
purchase an additional 2.3 million shares.
In the reported quarter, Strericycle closed 8 acquisitions,
including 7 in international and 1 in domestic location. The
international acquisitions included three in the United Kingdom,
two in Romania, and one each in Canada and Spain. The
acquisitions contributed $0.7 million in revenues during the
For 2014, Stericycle expects earnings per share to be in the
range of $4.13 to $4.17 with revenues in the range of $2.33
billion to $2.36 billion. Capital expenditure is expected to be
in the range of $70 million to $75 million in 2014.
Stericycle is witnessing strong growth across the globe, driven
by acquisitions and expansion of its portfolio of service
offerings. We remain encouraged by the company's solid
performance in the reported quarter and expect the growth
momentum to continue in the coming quarters as well.
Stericycle currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth considering in the industry
Lamar Advertising Co.
Millennial Media Inc
), each carrying a Zacks Rank #2 (Buy).
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STERICYCLE INC (SRCL): Free Stock Analysis
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