Stericycle (SRCL) Q3 2024 earnings summary

Executive summary

• Merger with Waste Management, Inc. progressing, with all regulatory and shareholder approvals obtained; closing expected soon, subject to customary conditions.

• Revenue for Q3 2024 was $648.4 million, down 0.8% year-over-year, primarily due to divestitures and lower organic revenues.

• Net loss attributable to shareholders was $13.8 million for Q3 2024, compared to net income of $2.0 million in Q3 2023.

• Announced divestiture of Spain and Portugal operations for $86.4 million, expected to close in Q4 2024.

• Operational optimization and portfolio rationalization initiatives continue, with workforce reductions and cost-saving measures implemented.

Financial highlights

• Q3 2024 revenue decreased by $5.1 million (0.8%) year-over-year; nine-month revenue down 1.6% to $1,974.9 million.

• Gross profit for Q3 2024 was $244.1 million (37.6% margin), nearly flat year-over-year.

• SG&A expenses increased to $224.6 million (34.6% of revenue) in Q3 2024, up from $217.3 million (33.3%) in Q3 2023.

• Net loss per share was $(0.15) for Q3 2024, compared to $0.02 in Q3 2023.

• Adjusted income from operations for Q3 2024 was $71.4 million, up slightly from $70.3 million in Q3 2023.

Outlook and guidance

• Merger with Waste Management expected to close promptly, with all major regulatory and shareholder approvals secured.

• Focus remains on margin expansion, operational excellence, digital implementation, and strategic capital allocation.

• Continued investment in core businesses and targeted lower debt leverage ratio.