Stericycle (NASDAQ: SRCL) reported Q1 EPS of $0.52, $0.06 worse than the analyst estimate of $0.58. Revenue for the quarter came in at $785 million versus the consensus estimate of $777.23 million.

KEY BUSINESS HIGHLIGHTS:

• The Company delivered organic growth in the quarter, the first time since 2017, as it continues to drive results from its quality of revenue initiatives. Growth in Regulated Waste and Compliance Services (“RWCS”) and Secure Information Destruction (“SID”), excluding the impact of SOP pricing, was 3.3% and 1.4%, respectively.
• Cash flow from operations for the first quarter was $82.1 million, compared to $36.2 million for the first quarter of 2019. Free Cash Flow for the quarter was $42.5 million, compared to an outflow of $29.9 million in the first quarter of last year, an increase of $72.4 million.
• Stericycle completed the divestiture of the Domestic Environmental Solutions business on April 6, 2020, for approximately $462.5 million in cash, achieving a significant milestone in its portfolio rationalization and debt reduction efforts.
• Stericycle’s regulated medical waste transportation and treatment facilities are federally designated as essential facilities and remain open to provide safe, compliant disposal of medical waste to healthcare customers.

“In the face of these unprecedented times, we are proud of our team members who stand among the essential service providers to support the fight against COVID-19. Across the country and around the globe, our regulated medical waste operations continue to support the critical needs of the healthcare industry,” said Cindy J. Miller, Chief Executive Officer. “As a partner to the healthcare industry, we will continue to provide leadership with specialized services for emerging healthcare demands, educational resources from our Coronavirus Knowledge Center, and safe, compliant medical waste treatment. Now more than ever we are demonstrating the value of our brand and our commitment to protect what matters.”

“Specific to the quarter, we were ahead of our internal financial plans through January and February, which enabled us to deliver another consecutive quarter of organic revenue growth in our core regulated medical waste and secure information destruction services. Additionally, we delivered Free Cash Flow for the quarter that exceeded our expectations,” Miller added. “We started to see the business impact of the economic shut-down due to COVID-19 during March, primarily in our secure information destruction services. To manage costs in alignment with revenues, we have leveraged a centralized, disciplined and operationally-focused approach to reduce or defer operating and capital expenditures.”

FINANCIAL GUIDANCE

Given the magnitude and duration of the uncertain economic outlook in light of the COVID-19 pandemic, Stericycle today announced that it is withdrawing financial guidance for the full-year 2020.

For earnings history and earnings-related data on Stericycle (SRCL) click here.