Thu, Jul 25, 11:16 AM (44 days ago)
Stericycle, Inc.'s Q2 2024 10-Q report highlights a revenue decline of 1.2% year-over-year to $661.6 million, primarily due to divestitures and unfavorable foreign exchange rates. Gross profit increased slightly to $258 million, driven by cost savings and margin flow-through, despite lower Secure Information Destruction (SID) commodity-indexed revenues. SG&A expenses rose by 3% due to transaction-related expenses and higher bad debt provisions. The company reported a net income of $6 million, a significant improvement from a net loss of $49.5 million in Q2 2023. Cash flow from operations was negative at $10.5 million, impacted by billing delays and higher incentive payments. The company remains compliant with its debt covenants, maintaining a leverage ratio of 3.49x. The report also notes significant transaction-related costs due to the pending merger with Waste Management, Inc.