SRCL - Stericycle up 11% on beating Q3 estimates and improved margins
Stericycle ([[SRCL]] +11.6%) states the impact of multiple divestitures and the COVID-19 pandemic reflected in Q3 revenue decline of 23.6% Y/Y to $636.4M, and organic revenue decline of 4.3%.Revenue by services: Regulated Waste and Compliance $415.5M (-24.7% Y/Y); Secure Information Destruction $187.3M (-15.9% Y/Y); and Communication and Related $33.6M (-43% Y/Y).Q3 Gross margin expanded by 656 bps to 42%.; and Adj. operating margin improved by 161 bps to 15.9%.Adj. EBITDA was $126.8M (-15.7% Y/Y); and margin expanded by 186 bps to 19.9%.Cash flow from operations YTD was $365.2M vs. $201.2M a year ago; and free cash flow to $270.5M compared to $40M a year ago.Net debt was reduced by ~$135.5M in the quarter, decreasing total net debt to below $2B. Net Debt to Adjusted EBITDA of 3.75X, as of September 30, 2020.Company completed the divestiture of the Argentina business in the quarter.Previously: Stericycle EPS beats by $0.23, misses on revenue (Nov. 5)
For further details see:
Stericycle up 11% on beating Q3 estimates, and improved margins