Stericycle (SRCL) has reported 77.29 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $18.35 million, or $0.14 a share in the quarter, compared with $80.83 million, or $0.82 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $90.30 million, or $1 a share compared with $115.60 million or $1.26 a share, a year ago.
Revenue during the quarter went up marginally by 2.04 percent to $906.40 million from $888.30 million in the previous year period. Gross margin for the quarter contracted 159 basis points over the previous year period to 41.23 percent. Total expenses were 91.85 percent of quarterly revenues, up from 83.05 percent for the same period last year. That has resulted in a contraction of 879 basis points in operating margin to 8.15 percent.
Operating income for the quarter was $73.92 million, compared with $150.54 million in the previous year period.
However, the adjusted operating income for the quarter stood at $168.74 million compared to $195.79 million in the prior year period. At the same time, adjusted operating margin contracted 342 basis points in the quarter to 18.62 percent from 22.04 percent in the last year period.
"We were very pleased with our fourth quarter operational performance. Additionally, our recall team delivered a record-breaking quarter which enhanced our results," said Charlie Alutto, president and chief executive officer.
Operating cash flow improves significantlyStericycle has generated cash of $547.38 million from operating activities during the year, up 40.24 percent or $157.05 million, when compared with the last year. The company has spent $195.61 million cash to meet investing activities during the year as against cash outgo of $2,533.90 million in the last year.
The company has spent $363.26 million cash to carry out financing activities during the year as against cash inflow of $2,181.21 million in the last year period.
Cash and cash equivalents stood at $44.19 million as on Dec. 31, 2016, down 20.57 percent or $11.44 million from $55.63 million on Dec. 31, 2015.
Working capital increases sharply
Stericycle has recorded an increase in the working capital over the last year. It stood at $230.82 million as at Dec. 31, 2016, up 32.29 percent or $56.34 million from $174.48 million on Dec. 31, 2015. Current ratio was at 1.43 as on Dec. 31, 2016, up from 1.30 on Dec. 31, 2015.
Debt comes downStericycle has recorded a decline in total debt over the last one year. It stood at $2,951.12 million as on Dec. 31, 2016, down 7.83 percent or $250.64 million from $3,201.76 million on Dec. 31, 2015. Total debt was 42.25 percent of total assets as on Dec. 31, 2016, compared with 45.24 percent on Dec. 31, 2015. Debt to equity ratio was at 1.05 as on Dec. 31, 2016, down from 1.17 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
