SRCL
#Correct, <UNK>.
Thanks.
Hello, <UNK>.
Let me take you through that.
So the Street estimates was at $1.10.
We did have $0.08 of favorable result in the quarter, with our continued tax optimization strategy.
What that did is that really offset the lower recall volume, the FX headwinds that we experienced and the majority of the impact from the weather.
This was, no doubt, a very tough quarter.
I'm very pleased with the team.
They did a magnificent job of pulling together and executing on our optimization strategy.
But if you think about it, a lot of the areas where we adjusted down, we fully expect that to be rebound into the next quarter.
And that's why what you've seen is our guidance has remained unchanged from an EPS standpoint.
So the weather and the seasonality, really the extreme weather was about $0.03.
The recall was about $0.04.
We really anticipate both of those to rebound very nicely.
And then there's $0.01 in FX.
That was all offset and so the seasonality and weather combined to be about $0.05.
We called for FX, one, and we really expect the seasonality, the weather and the recall to rebound and really offset the impact of FX.
It's excluding FX.
It's local currency.
Thanks, Dave.
Hello, <UNK>.
And as you know, <UNK>, we break out Europe and other international.
So LatAm is in obviously part of that other international.
It's a big part of that other international business, because the other parts of that are the Asian market, which are much smaller.
I know as you sit in out California, <UNK>, you don't appreciate some of the weather for the folks in the East Coast.
Thanks, <UNK>.
Hello, <UNK>.
<UNK>, I think that's a good question around is there a seasonality component now to healthcare.
It's tough when you're dealing with all the things that <UNK> just talked about on weather, and how much truly is a weather impact and how much is it that there is a feeling out there that there could be some seasonality in healthcare and a growing seasonality component to healthcare.
I think it's a little too early for us to say if there is seasonality and does it impact our business.
Certainly on the SQ side, where we have fixed fees on some of the contracts, seasonality doesn't play into it.
But when you're talking about large IDNs, large customers, you're certainly, you want to look at that.
I think it's a little difficult, given the quarter we just had on weather, to say it is definitely some more seasonality.
I think seasonality for us, when we talk about seasonality, it impacts a little bit more on the E-Sol business.
We previously discussed E-Sol and the experiences that we have in seasonality in Q1.
It's important to understand that seasonality is a function in Environmental Solutions on both volume and weather.
And with the severe weather we had in Q1, it resulted in a larger than anticipated reduction in volume.
And to <UNK>'s point around the bridge and what we think is going to happen in the future, we fully anticipate, based on historical knowledge that we have in that space, that a majority of that will rebound in 2015.
And I think you see our overall confidence in the business for the year, we feel really good about the year.
And that's what we want to leave, that we are feeling good about the rebound in the business on both the weather and the seasonality.
I think if you look at the strategy in Asia with the three small tuck-in acquisitions in South Korea, this also marks the one-year anniversary of our deal in South Korea.
That integration is on track.
We feel really good, at this point, to add in some of those acquisitions.
From an investment standpoint, it does make sense to look at the markets that we're in today, because that brings on a better IRR versus the local hurdle rate.
And then overall, we continue to look at new markets.
As you know, we're disciplined and opportunistic when looking at those, and occasionally, we'll add on a new country.
But really the focus is on the countries that we're currently in.
And I think to your point, a good example of that is the 11 international acquisitions we closed in countries that we're in in the last quarter.
We had a really strong acquisition quarter.
We're proud of the team, the M&A team and the integration team, what they pulled off in Q1.
Thanks, <UNK>.
<UNK>, this is <UNK>.
It really doesn't.
There is so much overlap in our business, both from a routing standpoint, the back office support we have.
We share customers in both.
It would be virtually impossible for us to be able to break that out to the level that would be able to give you any kind of credible information to make any kind of analysis on your part.
Thanks, <UNK>.
I can take you through that.
For Q2, I think we expect gross margins to be in the range of about 43.2% to 43.3%.
And I think that would put you at a full year in the range of 43.4% to 43.5%.
You're welcome.
I think when you look at SQ, LQ, <UNK>, the estimate is around 60% SQ and 40% LQ.
No, I think if you look at the growth engines on the SQ side of the business, SteriSafe still provides a majority of the growth on the SQ business, and then Com Sol, Communication Solutions and Environmental Solutions adds some additional growth there.
On the LQ side of the business, again, a majority of the growth is coming from our sharps management program and our pharmaceutical waste program.
We think over time there's a lot of overlap with pharmaceutical waste, where it lends us to get more hazardous waste out of the hospital business.
But that's something that obviously we needed the infrastructure first before we can really take advantage of that opportunity across the country.
Thanks, <UNK>.
I think as you know, the Beryl Health acquisition, probably over two years now, really got us into more of the hospital or the LQ space in Communication Solutions.
Prior to that, the platform that we had bought was NotifyMD, it was more of an SQ play.
We've seen some good growth on Beryl.
It's now really combined.
So we don't look at it as LQ, SQ anymore.
We look at it together.
And the reason for that, <UNK>, is really some of the services, like appointment reminders, are applicable to both the LQ and the SQ space.
Those services can be sold to doctors' offices.
They can be sold to medical practices that are associated with hospitals.
They can be sold to hospitals.
We look at them combined now, but the Beryl acquisition was an important acquisition for us a couple years ago, and it's done well for us.
It varies depending on the service.
For instance, on an after hour answering service, a typical contract would be set up as a flat monthly fee per physician per month, and for that, they'd get so many minutes and if they go over that minutes, there's overcharges they'd get for time that was over what was included in the standard contract.
For a same service, let's call it a service like an appointment reminder service, there might be a flat monthly fee, again, per physician per month, and we make so many outbound calls, texts or e-mails.
And again, there's so much that are allotted to that monthly fee.
Any overage would be charged extra at the end of the month.
So it's a combination of a flat fee and a fee for volume.
I kind of talked about it a little bit on an earlier question.
I think it's tough to figure out how much is seasonality and how much is weather.
So if we think back to the previous call when we were talking about PSC and now our Environmental Solutions business, we had discussed that the Environmental Solution business does experience seasonality in Q1.
And seasonality is a function of volume and weather.
But because there was severe weather in Q1, it resulted in a larger than anticipated reduction in volume in Environmental Solutions.
We fully anticipate that will come back.
To give you a little color there, just on the Environmental Solutions side, there was some of our operating locations that we lost one to two days of business per week for two months straight, where we were just nonproductive.
So we had in our estimate, in our guidance, we thought there would be some seasonality.
The severe weather made seasonality worse, but that's why we're saying so much is weather, so much might be seasonality.
We think the two are integrated and are connected.
And that's why I think to look at that is $0.05.
We think all of that's going to come back, obviously, as the weather improves throughout the year.
Thanks, <UNK>.
Hello, <UNK>.
How are you.
Great question.
So Q1, we had a record number of new customers and a near record number of events.
The revenue, as you see, was up a little bit.
It has to do with the acquisition we made.
And that's more call center volume, so that does come in at a little lower margin.
But I've got to tell you, we're only three weeks into the second quarter, but we're doing really good.
We're off to a great start there.
And that's why we're confident to leave that guidance at 95 to 120.
So we feel really good about the start to Q2.
Yes, <UNK>.
I think we've always felt very comfortable in the range of 2 to 2.5.
We certainly aren't going to spend money just for the sake of spending money.
We continue to be very disciplined around our acquisitions.
We have a very robust pipeline.
And I wouldn't look at these from a quarter to quarter basis.
Really, you've got to look at the acquisitions that we do more on an annual basis.
These things tend to come in surges.
So we're good in the range there, and we feel very good about both our acquisition and our capital structure.
Thank you, Amy.
We appreciate everyone taking time to participate on today's call.
I want to remind everyone that this is Administrative Assistants Week, so if you've not already recognized those individuals that work so hard for you, often time behind the scenes, don't forget them.
For the executive team at Stericycle, we want to thank Kelly for everything she does to make us better.
Have a great night.
We look forward to seeing you out on the road in the next couple of months.
Take care, guys.
