UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2016 or
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 1-37556
Stericycle, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
|
36-3640402 |
(State or other jurisdiction of incorporation or organization) |
|
(IRS Employer Identification Number) |
28161 North Keith Drive
Lake Forest, Illinois 60045
(Address of principal executive offices, including zip code)
(847) 367-5910
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES x NO o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
x |
|
Accelerated filer |
o |
Non-accelerated filer |
o |
|
Smaller reporting company |
o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x
On July 29, 2016 there were 85,041,964 shares of the Registrant’s Common Stock outstanding.
Stericycle, Inc.
Table of Contents
PART I. – FINANCIAL INFORMATION
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands, except share and per share data |
|
|||||||
|
|
June 30, 2016 |
|
|
December 31, 2015 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
44,320 |
|
|
$ |
55,634 |
|
Short-term investments |
|
|
64 |
|
|
|
69 |
|
Accounts receivable, less allowance for doubtful accounts of $24,457 in 2016 and $22,329 in 2015 |
|
|
627,135 |
|
|
|
614,494 |
|
Prepaid expenses |
|
|
58,566 |
|
|
|
46,740 |
|
Other current assets |
|
|
40,277 |
|
|
|
44,891 |
|
Total Current Assets |
|
|
770,362 |
|
|
|
761,828 |
|
Property, plant and equipment, less accumulated depreciation of $479,907 in 2016 and $426,019 in 2015 |
|
|
707,060 |
|
|
|
665,602 |
|
Goodwill |
|
|
3,558,283 |
|
|
|
3,758,177 |
|
Intangible assets, less accumulated amortization of $220,398 in 2016 and $151,025 in 2015 |
|
|
2,078,234 |
|
|
|
1,842,561 |
|
Other assets |
|
|
32,429 |
|
|
|
36,995 |
|
Total Assets |
|
$ |
7,146,368 |
|
|
$ |
7,065,163 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
109,868 |
|
|
$ |
161,409 |
|
Accounts payable |
|
|
145,069 |
|
|
|
149,202 |
|
Accrued liabilities |
|
|
182,814 |
|
|
|
197,329 |
|
Deferred revenues |
|
|
17,132 |
|
|
|
16,989 |
|
Other current liabilities |
|
|
62,221 |
|
|
|
62,420 |
|
Total Current Liabilities |
|
|
517,104 |
|
|
|
587,349 |
|
Long-term debt, net of current portion |
|
|
3,008,588 |
|
|
|
3,040,352 |
|
Deferred income taxes |
|
|
705,873 |
|
|
|
608,272 |
|
Other liabilities |
|
|
85,724 |
|
|
|
81,352 |
|
Equity: |
|
|
|
|
|
|
|
|
Preferred stock (par value $0.01 per share, 1,000,000 shares authorized), Mandatory Convertible Preferred Stock, Series A, 763,500 issued and outstanding in 2016 and 770,000 in 2015 |
|
|
8 |
|
|
|
8 |
|
Common stock (par value $0.01 per share, 120,000,000 shares authorized, 84,965,277 issued and outstanding in 2016 and 84,852,584 issued and outstanding in 2015) |
|
|
850 |
|
|
|
849 |
|
Additional paid-in capital |
|
|
1,183,140 |
|
|
|
1,143,020 |
|
Accumulated other comprehensive loss |
|
|
(297,558 |
) |
|
|
(282,631 |
) |
Retained earnings |
|
|
1,931,807 |
|
|
|
1,868,645 |
|
Total Stericycle, Inc.’s Equity |
|
|
2,818,247 |
|
|
|
2,729,891 |
|
Noncontrolling interest |
|
|
10,832 |
|
|
|
17,947 |
|
Total Equity |
|
|
2,829,079 |
|
|
|
2,747,838 |
|
Total Liabilities and Equity |
|
$ |
7,146,368 |
|
|
$ |
7,065,163 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
1
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
In thousands, except share and per share data |
|
|||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2016 |
|
|
2015 (Restated) |
|
|
2016 |
|
|
2015 (Restated) |
|
||||
Revenues |
|
$ |
891,621 |
|
|
$ |
715,689 |
|
|
$ |
1,765,802 |
|
|
$ |
1,379,008 |
|
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of depreciation shown below) |
|
|
486,915 |
|
|
|
396,793 |
|
|
|
969,271 |
|
|
|
764,133 |
|
Depreciation - cost of revenues |
|
|
23,611 |
|
|
|
14,072 |
|
|
|
46,252 |
|
|
|
28,720 |
|
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below) |
|
|
222,378 |
|
|
|
136,752 |
|
|
|
424,866 |
|
|
|
351,615 |
|
Depreciation – selling, general and administrative expenses |
|
|
8,100 |
|
|
|
4,387 |
|
|
|
15,599 |
|
|
|
8,505 |
|
Amortization |
|
|
50,909 |
|
|
|
8,921 |
|
|
|
69,183 |
|
|
|
17,718 |
|
Total Costs and Expenses |
|
|
791,913 |
|
|
|
560,925 |
|
|
|
1,525,171 |
|
|
|
1,170,691 |
|
Income from Operations |
|
|
99,708 |
|
|
|
154,764 |
|
|
|
240,631 |
|
|
|
208,317 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
9 |
|
|
|
39 |
|
|
|
30 |
|
|
|
74 |
|
Interest expense |
|
|
(24,367 |
) |
|
|
(16,429 |
) |
|
|
(48,429 |
) |
|
|
(35,062 |
) |
Other expense, net |
|
|
(2,118 |
) |
|
|
(1,604 |
) |
|
|
(3,369 |
) |
|
|
(2,202 |
) |
Total Other Expense |
|
|
(26,476 |
) |
|
|
(17,994 |
) |
|
|
(51,768 |
) |
|
|
(37,190 |
) |
Income Before Income Taxes |
|
|
73,232 |
|
|
|
136,770 |
|
|
|
188,863 |
|
|
|
171,127 |
|
Income tax expense |
|
|
27,002 |
|
|
|
48,493 |
|
|
|
65,038 |
|
|
|
53,558 |
|
Net Income |
|
|
46,230 |
|
|
|
88,277 |
|
|
|
123,825 |
|
|
|
117,569 |
|
Less: net income attributable to noncontrolling interests |
|
|
196 |
|
|
|
447 |
|
|
|
1,005 |
|
|
|
799 |
|
Net Income Attributable to Stericycle, Inc. |
|
|
46,034 |
|
|
|
87,830 |
|
|
|
122,820 |
|
|
|
116,770 |
|
Less: mandatory convertible preferred stock dividend |
|
|
10,021 |
|
|
|
— |
|
|
|
20,127 |
|
|
|
— |
|
Less: gain on repurchase of preferred stock |
|
|
(1,280 |
) |
|
|
— |
|
|
|
(1,280 |
) |
|
|
— |
|
Net Income Attributable to Stericycle, Inc. Common Shareholders |
|
$ |
37,293 |
|
|
$ |
87,830 |
|
|
$ |
103,973 |
|
|
$ |
116,770 |
|
Earnings Per Common Share Attributable to Stericycle, Inc. Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.44 |
|
|
$ |
1.03 |
|
|
$ |
1.23 |
|
|
$ |
1.37 |
|
Diluted |
|
$ |
0.43 |
|
|
$ |
1.02 |
|
|
$ |
1.21 |
|
|
$ |
1.35 |
|
Weighted Average Number of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
84,893,263 |
|
|
|
84,961,907 |
|
|
|
84,799,131 |
|
|
|
85,000,723 |
|
Diluted |
|
|
85,760,686 |
|
|
|
86,221,034 |
|
|
|
85,798,892 |
|
|
|
86,292,816 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
In thousands |
|
|||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2016 |
|
|
2015 (Restated) |
|
|
2016 |
|
|
2015 (Restated) |
|
||||
Net Income |
|
$ |
46,230 |
|
|
$ |
88,277 |
|
|
$ |
123,825 |
|
|
$ |
117,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive (Loss)/ Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(32,946 |
) |
|
|
24,560 |
|
|
|
(15,782 |
) |
|
|
(39,941 |
) |
Amortization of cash flow hedge into income, net of tax (($173) and ($55), and ($345) and ($109) for the three- and six- months ended June 30, 2016 and 2015, respectively) |
|
|
269 |
|
|
|
90 |
|
|
|
538 |
|
|
|
180 |
|
Change in fair value of cash flow hedge, net of tax (($132) and ($117), and $(221) and $2,498 for the three- and six- months ended June 30, 2016 and 2015, respectively) |
|
|
130 |
|
|
|
646 |
|
|
|
372 |
|
|
|
(3,778 |
) |
Total Other Comprehensive (Loss)/ Income |
|
|
(32,547 |
) |
|
|
25,296 |
|
|
|
(14,872 |
) |
|
|
(43,539 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income |
|
|
13,683 |
|
|
|
113,573 |
|
|
|
108,953 |
|
|
|
74,030 |
|
Less: comprehensive income/ (loss) attributable to noncontrolling interests |
|
|
189 |
|
|
|
216 |
|
|
|
1,060 |
|
|
|
(252 |
) |
Comprehensive Income Attributable to Stericycle, Inc. Common Shareholders |
|
$ |
13,494 |
|
|
$ |
113,357 |
|
|
$ |
107,893 |
|
|
$ |
74,282 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
In thousands |
|
|||||||
|
|
Six Months Ended June 30, |
|
|||||
|
|
2016 |
|
|
2015 (Restated) |
|
||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
123,825 |
|
|
$ |
117,569 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
11,557 |
|
|
|
10,904 |
|
Excess tax benefit of stock options exercised |
|
|
— |
|
|
|
(10,899 |
) |
Depreciation |
|
|
61,851 |
|
|
|
37,225 |
|
Amortization |
|
|
69,183 |
|
|
|
17,718 |
|
Deferred income taxes |
|
|
4,515 |
|
|
|
(8,390 |
) |
Other, net |
|
|
(2,644 |
) |
|
|
5,686 |
|
Changes in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(12,888 |
) |
|
|
(51,041 |
) |
Accounts payable |
|
|
(1,496 |
) |
|
|
21,019 |
|
Accrued liabilities |
|
|
(13,303 |
) |
|
|
51,071 |
|
Deferred revenues |
|
|
305 |
|
|
|
(3,156 |
) |
Other assets and liabilities |
|
|
4,535 |
|
|
|
(9,046 |
) |
Net cash provided by operating activities |
|
|
245,440 |
|
|
|
178,660 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Payments for acquisitions, net of cash acquired |
|
|
(42,097 |
) |
|
|
(61,766 |
) |
Proceeds from investments |
|
|
7 |
|
|
|
271 |
|
Proceeds from sale of property and equipment |
|
|
1,355 |
|
|
|
— |
|
Capital expenditures |
|
|
(67,133 |
) |
|
|
(46,794 |
) |
Net cash used in investing activities |
|
|
(107,868 |
) |
|
|
(108,289 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayments of long-term debt and other obligations |
|
|
(31,789 |
) |
|
|
(39,590 |
) |
Proceeds from foreign bank debt |
|
|
27,619 |
|
|
|
18,363 |
|
Repayments of foreign bank debt |
|
|
(36,953 |
) |
|
|
(43,769 |
) |
Proceeds from term loan |
|
|
— |
|
|
|
250,000 |
|
Repayment of term loan |
|
|
(250,000 |
) |
|
|
— |
|
Proceeds from senior credit facility |
|
|
902,817 |
|
|
|
879,024 |
|
Repayments of senior credit facility |
|
|
(715,653 |
) |
|
|
(1,072,468 |
) |
Payments of capital lease obligations |
|
|
(2,605 |
) |
|
|
(1,951 |
) |
Payment of cash flow hedge |
|
|
— |
|
|
|
(8,833 |
) |
Payments for repurchase of common stock |
|
|
(40,814 |
) |
|
|
(85,149 |
) |
Payments for repurchase of convertible preferred stock |
|
|
(5,025 |
) |
|
|
— |
|
Proceeds from issuance of common stock |
|
|
30,308 |
|
|
|
39,208 |
|
Dividends paid on mandatory convertible preferred stock |
|
|
(20,127 |
) |
|
|
— |
|
Excess tax benefit of stock options exercised |
|
|
— |
|
|
|
10,899 |
|
Payments to noncontrolling interests |
|
|
(6,961 |
) |
|
|
(2,603 |
) |
Net cash used in financing activities |
|
|
(149,183 |
) |
|
|
(56,869 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
297 |
|
|
|
(2,782 |
) |
Net (decrease)/ increase in cash and cash equivalents |
|
|
(11,314 |
) |
|
|
10,720 |
|
Cash and cash equivalents at beginning of period |
|
|
55,634 |
|
|
|
22,236 |
|
Cash and cash equivalents at end of period |
|
$ |
44,320 |
|
|
$ |
32,956 |
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Issuances of obligations for acquisitions |
|
$ |
23,069 |
|
|
$ |
47,827 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
STERICYCLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Six Months Ended June 30, 2016 and Year Ended December 31, 2015
(Unaudited)
In thousands |
|
|||||||||||||||||||||||||||||||||||
|
|
Stericycle, Inc. Equity |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
Preferred Stock |
|
|
Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Additional Paid-In Capital |
|
|
Retained Earnings |
|
|
Accumulated Other Comprehensive Income (Loss) |
|
|
Noncontrolling Interest |
|
|
Total Equity |
|
|||||||||
Balance at January 1, 2015 |
|
|
— |
|
|
$ |
— |
|
|
|
84,884 |
|
|
$ |
849 |
|
|
$ |
289,211 |
|
|
$ |
1,743,371 |
|
|
$ |
(138,419 |
) |
|
$ |
22,173 |
|
|
$ |
1,917,185 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
267,046 |
|
|
|
|
|
|
|
967 |
|
|
|
268,013 |
|
Currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(140,809 |
) |
|
|
161 |
|
|
|
(140,648 |
) |
Change in qualifying cash flow hedge, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,403 |
) |
|
|
|
|
|
|
(3,403 |
) |
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases |
|
|
|
|
|
|
|
|
|
|
973 |
|
|
|
10 |
|
|
|
68,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68,640 |
|
Issuance of mandatory convertible preferred stock |
|
770 |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
746,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
746,900 |
|
||
Purchase and cancellation of common stock |
|
|
|
|
|
|
|
|
|
|
(1,004 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
(131,666 |
) |
|
|
|
|
|
|
|
|
|
|
(131,676 |
) |
Preferred stock dividend |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,106 |
) |
|
|
|
|
|
|
|
|
|
|
(10,106 |
) |
Stock compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,750 |
|
Excess tax benefit of stock options exercised |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,897 |
|
Reduction to noncontrolling interests due to additional ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(360 |
) |
|
|
|
|
|
|
|
|
|
|
(5,354 |
) |
|
|
(5,714 |
) |
Balance at December 31, 2015 |
|
|
770 |
|
|
|
8 |
|
|
|
84,853 |
|
|
|
849 |
|
|
|
1,143,020 |
|
|
|
1,868,645 |
|
|
|
(282,631 |
) |
|
|
17,947 |
|
|
|
2,747,838 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
122,820 |
|
|
|
|
|
|
|
1,005 |
|
|
|
123,825 |
|
Currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,837 |
) |
|
|
55 |
|
|
|
(15,782 |
) |
Change in qualifying cash flow hedge, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
910 |
|
|
|
|
|
|
|
910 |
|
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases |
|
|
|
|
|
|
|
|
|
|
473 |
|
|
|
4 |
|
|
|
34,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,460 |
|
Purchase and cancellation of common stock |
|
|
|
|
|
|
|
|
|
|
(361 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
(40,811 |
) |
|
|
|
|
|
|
|
|
|
|
(40,814 |
) |
Purchase and cancellation of convertible preferred stock |
|
|
(6 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
(6,305 |
) |
|
|
1,280 |
|
|
|
|
|
|
|
|
|
|
|
(5,025 |
) |
Preferred stock dividend |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,127 |
) |
|
|
|
|
|
|
|
|
|
|
(20,127 |
) |
Stock compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,557 |
|
Reduction to noncontrolling interests due to additional ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
412 |
|
|
|
|
|
|
|
|
|
|
|
(8,175 |
) |
|
|
(7,763 |
) |
|
Balance at June 30, 2016 |
|
|
764 |
|
|
$ |
8 |
|
|
|
84,965 |
|
|
$ |
850 |
|
|
$ |
1,183,140 |
|
|
$ |
1,931,807 |
|
|
$ |
(297,558 |
) |
|
$ |
10,832 |
|
|
$ |
2,829,079 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
STERICYCLE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Unless the context requires otherwise, "we," "us" or "our" refers to Stericycle, Inc. and its subsidiaries on a consolidated basis.
NOTE A1 — RESTATEMENT
The unaudited quarterly financial data for the three and six months ended June 30, 2015 has been restated for errors related to the timing of recognition of loss reserves between quarterly periods associated with the Company’s settlement of the previously disclosed TCPA Action and Qui Tam Action. The Company determined that the estimated loss contingency for the three and six months ended June 30, 2015 was overstated by $45.0 million and understated by $28.5 million, respectively, resulting in an understatement of net income of $27.4 million and an overstatement of $19.1 million for the three month and six months ended June 30, 2015, respectively.
The Company’s Condensed Consolidated Statements of Income; Condensed Consolidated Statements of Comprehensive Income; Condensed Consolidated Statements of Cash Flows; Note 5 - Income Taxes; Note 8 - Earnings Per Common Share; and Note 12 - Geographic Information; included in this Form 10-Q have been restated to correct the misstatements described above.
The following are previously reported and restated balances of affected line items in the Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive Income, and the Condensed Consolidated Statement of Cash Flows for the three and six months ended June 30, 2015 (Unaudited).
Condensed Consolidated Statement of Income |
|
|
|
|
|||||||||||||||
|
Three Months Ended June 30, 2015 |
|
|
Six Months Ended June 30, 2015 |
|
||||||||||||||
|
As Reported |
|
Adjustment |
|
Restated |
|
|
As Reported |
|
Adjustment |
|
Restated |
|
||||||
Selling, general and administrative expenses (exclusive of depreciation and amortization) |
$ |
181,752 |
|
$ |
(45,000 |
) |
$ |
136,752 |
|
|
$ |
323,115 |
|
$ |
28,500 |
|
$ |
351,615 |
|
Total costs and expenses |
|
605,925 |
|
|
(45,000 |
) |
|
560,925 |
|
|
|
1,142,191 |
|
|
28,500 |
|
|
1,170,691 |
|
Income from operations |
|
109,764 |
|
|
45,000 |
|
|
154,764 |
|
|
|
236,817 |
|
|
(28,500 |
) |
|
208,317 |
|
Income before income taxes |
|
91,770 |
|
|
45,000 |
|
|
136,770 |
|
|
|
199,627 |
|
|
(28,500 |
) |
|
171,127 |
|
Income tax expense |
|
30,874 |
|
|
17,619 |
|
|
48,493 |
|
|
|
62,921 |
|
|
(9,363 |
) |
|
53,558 |
|
Net income |
|
60,896 |
|
|
27,381 |
|
|
88,277 |
|
|
|
136,706 |
|
|
(19,137 |
) |
|
117,569 |
|
Net income attributable to Stericycle, Inc. |
|
60,449 |
|
|
27,381 |
|
|
87,830 |
|
|
|
135,907 |
|
|
(19,137 |
) |
|
116,770 |
|
EPS – basic |
|
0.71 |
|
|
0.32 |
|
|
1.03 |
|
|
|
1.60 |
|
|
(0.23 |
) |
|
1.37 |
|
EPS – diluted |
|
0.70 |
|
|
0.32 |
|
|
1.02 |
|
|
|
1.57 |
|
|
(0.22 |
) |
|
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Comprehensive Income |
|
||||||||||||||||||
|
Three Months Ended June 30, 2015 |
|
|
Six Months Ended June 30, 2015 |
|
||||||||||||||
|
As Reported |
|
Adjustment |
|
Restated |
|
|
As Reported |
|
Adjustment |
|
Restated |
|
||||||
Net income |
$ |
60,896 |
|
$ |