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Stericycle, Inc. Reports Results For the Fourth Quarter 2019, Provides 2020 Guidance

Stericycle, Inc. Reports Results For the Fourth Quarter 2019, Provides 2020 Guidance

BANNOCKBURN, Ill., Feb. 27, 2020 (GLOBE NEWSWIRE) -- Stericycle, Inc. (SRCL) today reported results for the fourth quarter ended December 31, 2019 and provided guidance for the year ending December 31, 2020.

Revenues for the quarter were $799.9 million, a decrease of 6.2% from $852.7 million in the fourth quarter of last year.  Excluding divestitures, foreign exchange and changes in sorted office paper (“SOP”) pricing, revenues increased 1.3%.  Loss from operations in the quarter was $198.5 million, compared to loss from operations of $345.9 million in the fourth quarter of last year.  This includes non-cash impairment and divestiture charges of $251.8 million in 2019 and $392.0 million in 2018.  Net loss was $219.3 million, or $2.41 diluted loss per share, compared with net loss of $318.4 million, or $3.51 diluted loss per share, in the fourth quarter of last year.  Adjusted EBITDA was $152.8 million, or 19.1% of revenues, compared with $180.5 million, or 21.2% of revenues in the fourth quarter of last year.  Adjusted diluted earnings per share was $0.72 compared to $1.03 in the 2018 comparable period.

KEY BUSINESS HIGHLIGHTS:

  • Stericycle continued to deliver progress on its portfolio rationalization and debt reduction efforts with the announcement on February 7, 2020 of an agreement to divest substantially all of its Domestic Environmental Solutions business and the divestiture of non-core operations in Chile during December 2019.
  • The Company also drove results from its quality of revenue initiatives as organic revenue growth was up 2.0% in Regulated Waste and Compliance Services (“RWCS”), the highest growth rate in three years.
  • Free Cash Flow for the quarter was $13.8 million, bringing the year-to-date total to $53.8 million.

“I am pleased with the progress we’ve shown since our new leadership team was put into place.  Our actions enabled us to hit the highest growth rate in our core regulated medical waste business in over three years and to generate free cash flow in the second half of the year,” said Cindy J. Miller, Chief Executive Officer.  “Our fourth quarter results demonstrate that we continue to move in the right direction to drive growth, improve profitability and deliver long-term shareholder value.”

FOURTH QUARTER FINANCIAL RESULTS

U.S. Generally Accepted Accounting Principles (GAAP) Results

  • Revenues for the quarter ended December 31, 2019, were $799.9 million, compared to $852.7 million in the fourth quarter of last year.  The decline was due to divestitures, which reduced revenues by $36.2 million, and macroeconomic factors of SOP pricing and foreign exchange rates, which reduced revenues by $19.3 million and $9.0 million, respectively.  Organic revenue growth for RWCS and Secure Information Destruction (“SID”) excluding SOP pricing was 2.0% and 1.8%, respectively.  Organic revenue growth was partially offset by declines in Manufacturing and Industrial (“M&I”) and Communication and Related Services (“CRS”).
  • Loss from operations in the quarter was $198.5 million, compared to loss from operations of $345.9 million in the fourth quarter of last year.  Excluding the year-over-year impact of non-cash impairment and divestiture charges, income from operations was $53.3 million, an increase of $7.2 million from 2018.  This improvement was the result of lower SG&A, primarily related to reduced consulting and professional fees for litigation, compliance and material weakness remediation of $36.1 million.  The improvement was partially offset by the SOP pricing impact of $19.3 million and higher costs related to hazardous waste operations of $9.8 million.
  • Net loss was $219.3 million, or $2.41 diluted loss per share, compared with $318.4 million, or $3.51 diluted loss per share, in the fourth quarter of last year.  This reflects the previously highlighted significant charges and operational items, as well as a lower effective tax rate on a loss from operations compared to the fourth quarter of 2018.
  • Cash flow from operations for the full year was $248.0 million, compared to $165.7 million for 2018.  In 2018, cash flow from operations was reduced by the Small Quantity customer class action settlement payment of $295.0 million.  Excluding the settlement payment, cash flow from operations decreased $212.7 million, primarily due to lower operating performance in 2019, as previously highlighted, and payments in 2019 for certain litigation matters, 2018 incentive compensation and ERP-related prepaid software.
  • Cash paid for capital expenditures for the year was $194.2 million as compared to $130.8 million in 2018, primarily driven by investment in our ERP implementation.

Non-GAAP Results

  • Adjusted EBITDA was $152.8 million, compared to $180.5 million in the fourth quarter of last year.  The decrease was driven by SOP pricing of $19.3 million and higher costs related to hazardous waste operations of $9.8 million.
  • Adjusted diluted earnings per share was $0.72, compared to $1.03 in the fourth quarter of last year, primarily due to SOP pricing, higher operating costs, and a higher effective tax rate, partially offset by lower interest expense.
  • Free Cash Flow for the quarter was $13.8 million, bringing the year to date total to $53.8 million.

NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures are reconciled to the most comparable GAAP measures in the schedules attached hereto.

RECENT EVENTS

On February 7, 2020, Stericycle announced that it entered into a definitive agreement to sell its Domestic Environmental Solutions business to Harsco Corporation (HSC) for $462.5 million in cash, subject to customary adjustments set forth in the agreement (the “Transaction”).  The Transaction includes Stericycle’s M&I Services and the retail portion of Hazardous Waste Services reported under RWCS, which together employ approximately 2,000 team members across 61 facilities.  Stericycle will continue to offer solutions for unused consumer pharmaceutical take-back services and provide hazardous waste services to healthcare customers.  Harsco will provide transportation and disposal services to Stericycle under a long-term service agreement to be entered into at the closing of the Transaction.  The Transaction is subject to customary post-closing covenants and indemnity obligations.  For more information, please see Stericycle’s Current Reports on Form 8-K, filed February 7, 2020.

In December, Stericycle completed the sale of its operations in Chile to an affiliate of Veolia for approximately $30.7 million.  The transaction is subject to customary post-closing covenants and indemnity obligations.

Today Stericycle filed a Form 8-K announcing an amendment to its now secured credit facility. Under the terms of the amendment, Stericycle’s maximum Debt-to-Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Debt-to-Adjusted EBITDA”) leverage ratio has been increased to 5.0 with a step down to 4.5 in the first quarter of 2022.  The completion of the Domestic Environmental Solutions divestiture would trigger a step-down in the covenant leverage ratio to 4.75 at close and 4.25 in the first quarter of 2022.  The $200 million of cash addbacks to Debt-to-Adjusted EBITDA will continue through December 31, 2020, then reduce to $100 million through December 31, 2021, with no further addbacks thereafter.  The Company proactively pursued this additional financing flexibility to remove any potential distraction during its year of transformation.  As of December 31 2019, Stericycle was in compliance with its leverage ratio covenant.

FINANCIAL GUIDANCE

Stericycle today provided financial guidance for the full-year 2020, as summarized in the table below.  The Company’s guidance is based on currently known items and certain business assumptions including current foreign exchange rates and estimates for SOP pricing.  The Domestic Environmental Solutions business remains in the annual guidance.

Guidance for Full-Year 2020
(In millions on a Non-GAAP basis)
Revenues, organic (1) $3,220 to $3,300  
Free cash flow(2) $150 to $200 (3)

(1) We present organic Revenues which exclude future acquisitions, future divestitures, and the impact of changes in foreign exchange rates.

(2) Free Cash Flow is calculated as Net cash flow from operating activities less Capital expenditures.  For guidance purposes, it is not possible to predict or provide without unreasonable effort a reconciliation reflecting the impact of future acquisitions, divestitures, certain litigation, settlements and regulatory compliance matters, uncertain U.S. cash tax matters, certain other items or other unanticipated events, which would be included in reported (U.S. GAAP) results and could be material. 

(3) Free Cash Flow guidance includes estimates for:

  • ERP implementation operating expenditures of $40 million to $60 million and consulting and professional fees for internal control remediation activities and portfolio rationalization of $20 million to $30 million that will be reported as Adjusted Non-GAAP items; and
  • Capital expenditures of $175 million to $195 million, which includes cash paid for ERP implementation capital expenditures of $45 million to $55 million.

CONFERENCE CALL INFORMATION

Stericycle is holding its fourth quarter earnings conference call on Thursday, February 27, 2020, at 8:00 a.m. central time.  Dial (888) 317-6003 in the U.S., (866) 605-3851 in Canada, or (412) 317-6061 if outside the U.S./Canada at least 10 minutes before the call begins. Upon dialing the number, you will be prompted to enter the Elite Entry number 7992292. Presentation materials will be posted prior to the conference call at http://investors.stericycle.com.  To listen to the webcast via the Internet or access an audio replay of the call, visit http://investors.stericycle.com.

ABOUT STERICYCLE

Stericycle, Inc., (SRCL) is a U.S. based business-to-business services company and leading provider of compliance-based solutions that protect people and brands, promote health and safeguard the environment.  Stericycle serves more than one million customers in all 50 U.S. states and 18 countries worldwide with solutions for regulated waste management, secure information destruction, compliance, customer contact, and brand protection.  For more information about Stericycle, please visit www.stericycle.com.

SAFE HARBOR STATEMENT

This document may contain forward-looking statements.  When we use words such as "believes," "expects," "anticipates," "estimates" or similar expressions, we are making forward-looking statements.  Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of our management about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.  Factors that could cause such differences include, among others, SOP pricing volatility, foreign exchange rate volatility in the jurisdictions in which we operate, the volume and size of any recall events, changes in governmental regulation of the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information, the level of government enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information, decreases in the volume of regulated wastes or personal and confidential information collected from customers, the ability to implement our ERP system, charges related to portfolio rationalization or the failure of divestitures to achieve the desired results, failure to consummate transactions with respect to non-core businesses, including the risk that the Domestic Environmental Solutions transaction may not be completed in a timely manner or at all, the failure to satisfy the conditions to the consummation of such transaction, including the receipt of certain governmental and regulatory approvals, the effect of the announcement or pendency of the Domestic Environmental Solutions transaction on Stericycle’s business relationships, operating results and business generally and risks related to diverting management’s attention from Stericycle’s ongoing business operations, the obligations to service substantial indebtedness and comply with the covenants and restrictions contained in our credit agreements and notes, a downgrade in our credit rating resulting in an increase in interest expense, political, economic, inflationary and other risks related to our foreign operations, the outcome of pending or future litigation or investigations including with respect to the U.S. Foreign Corrupt Practices Act, changing market conditions in the healthcare industry, competition and demand for services in the regulated waste and secure information destruction industries, failure to maintain an effective system of internal control over financial reporting, delays or failures in implementing remediation efforts with respect to existing or future material weaknesses, disruptions in or attacks on information technology systems, as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Forms 10-Q.  As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends.  We disclaim any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.

   
STERICYCLE, INC.  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS  
(In millions, except per share data)  
                                       
  Three Months Ended
December 31,
    Year Ended
December 31,
 
  2019   2018   % Change     2019   2018   % Change  
Revenues $ 799.9   $ 852.7     (6.2 %)   $ 3,308.9   $ 3,485.9     (5.1 %)
Cost of revenues   520.4     524.0     (0.7 %)     2,134.4     2,109.9     1.2 %
Gross profit   279.5     328.7     (15.0 %)     1,174.5     1,376.0     (14.6 %)
Selling, general and administrative expenses   245.7     316.1     (22.3 %)     1,055.1     1,165.6     (9.5 %)
Goodwill impairment   207.4     358.7     (42.2 %)     228.3     358.7     (36.4 %)
Divestiture losses, net of gains   24.9     (0.2 ) nm       103.0     12.8   nm  
Loss from operations   (198.5 )   (345.9 )   (42.6 %)     (211.9 )   (161.1 )   31.5 %
Interest expense, net   (27.2 )   (28.7 )   (5.2 %)     (118.3 )   (106.0 )   11.6 %
Loss on early extinguishment of debt   -     -   nm       (23.1 )   -   nm  
Other expense, net   (2.3 )   (1.5 )   53.3 %     (9.5 )   (8.3 )   14.5 %
Loss before income taxes   (228.0 )   (376.1 )   (39.4 %)     (362.8 )   (275.4 )   31.7 %
Income tax benefit   8.8     56.9     (84.5 %)     16.8     29.8     (43.6 %)
Net loss   (219.2 )   (319.2 )   (31.3 %)     (346.0 )   (245.6 )   40.9 %
Net (income) loss attributable to noncontrolling interests   (0.1 )   0.8   nm       (0.8 )   0.9     (188.9 %)
Net loss attributable to Stericycle, Inc.   (219.3 )   (318.4 )   (31.1 %)     (346.8 )   (244.7 )   41.7 %
Mandatory convertible preferred stock dividend   -     -   nm       -     (25.5 )   (100.0 %)
Gain on repurchase of preferred stock   -     -   nm       -     16.9     (100.0 %)
Net loss attributable to Stericycle, Inc. common shareholders $ (219.3 ) $ (318.4 )   (31.1 %)   $ (346.8 ) $ (253.3 )   36.9 %
Loss per common share attributable to Stericycle, Inc. common shareholders:                                      
Basic $ (2.41 ) $ (3.51 )   (31.3 %)   $ (3.81 ) $ (2.91 )   30.9 %
Diluted $ (2.41 ) $ (3.51 )   (31.3 %)   $ (3.81 ) $ (2.91 )   30.9 %
Weighted average number of common shares outstanding:                                      
Basic   91.2     90.7             91.0     87.1        
Diluted   91.2     90.7             91.0     87.1        

nm - percentage change not meaningful
             
             

UNAUDITED STATISTICS - U.S. GAAP AND ADJUSTED MEASURES  
(In millions, except per share data)  
                                                       
  Three Months Ended December 31,     Year Ended December 31,  
  2019     2018     2019     2018  
        % of
Revenue
          % of
Revenue
          % of
Revenue
          % of
Revenue
 
Statistics  - U.S. GAAP                                                      
Gross profit $ 279.5     34.9 %   $ 328.7     38.5 %   $ 1,174.5     35.5 %   $ 1,376.0     39.5 %
Selling, general and administrative expenses $ 245.7     30.7 %   $ 316.1     37.1 %   $ 1,055.1     31.9 %   $ 1,165.6     33.4 %
Goodwill impairment $ 207.4     25.9 %   $ 358.7     42.1 %   $ 228.3     6.9 %   $ 358.7     10.3 %
Divestiture losses, net of gains $ 24.9     3.1 %   $ (0.2 )   (0 )   $ 103.0     3.1 %   $ 12.8     0.4 %
Loss from operations $ (198.5 )   (24.8 %)   $ (345.9 )   (40.6 %)   $ (211.9 )   (6.4 %)   $ (161.1 )   (4.6 %)
Net loss attributable to Stericycle, Inc. common shareholders $ (219.3 )   (27.4 %)   $ (318.4 )   (37.3 %)   $ (346.8 )   (10.5 %)   $ (253.3 )   (7.3 %)
Diluted loss per share $ (2.41 )         $ (3.51 )         $ (3.81 )         $ (2.91 )      
Diluted shares outstanding   91.2             90.7             91.0             87.1        
Effective tax rate   3.9 %           15.1 %           4.6 %           10.8 %      
Statistics - Adjusted (1)                                                      
Adjusted gross profit $ 285.2     35.7 %   $ 346.6     40.6 %   $ 1,189.9     36.0 %   $ 1,401.7     40.2 %
Adjusted selling, general and administrative expenses $ 162.6     20.3 %   $ 196.1     23.0 %   $ 737.9     22.3 %   $ 782.7     22.5 %
Adjusted income from operations $ 122.6     15.3 %   $ 150.5     17.6 %   $ 452.0     13.7 %   $ 619.0     17.8 %
Depreciation - cost of revenues $ 25.0     3.1 %   $ 25.3     3.0 %   $ 102.8     3.1 %   $ 100.3     2.9 %
Depreciation - selling, general and administrative expenses $ 5.2     0.7 %   $ 4.7     0.6 %   $ 23.0     0.7 %   $ 25.3     0.7 %
Depreciation - Business Transformation $ 0.8     0.1 %   $ -     -     $ 1.8     0.1 %   $ -     -  
Intangible amortization $ 34.7     4.3 %   $ 33.7     4.0 %   $ 145.2     4.4 %   $ 130.3     3.7 %
EBITDA $ (133.6 )   (16.7 %)   $ (282.2 )   (33.1 %)   $ 59.1     1.8 %   $ 94.8     2.7 %
Adjusted EBIT $ 87.9     11.0 %   $ 116.8     13.7 %   $ 306.8     9.3 %   $ 488.7     14.0 %
Adjusted EBITDA $ 152.8     19.1 %   $ 180.5     21.2 %   $ 577.8     17.5 %   $ 744.6     21.4 %
Adjusted net income attributable to common shareholders $ 65.8     8.2 %   $ 93.2     10.9 %   $ 241.1     7.3 %   $ 402.9     11.6 %
Adjusted effective tax rate   29.1 %           23.8 %           26.9 %           24.7 %      
Adjusted diluted earnings per share $ 0.72           $ 1.03           $ 2.65           $ 4.45        
Adjusted diluted shares outstanding (2018 using if-converted method)   91.3             90.7             91.1             90.6        

(1)   Adjusted financial measures are Non-GAAP measures and exclude adjusting items as described and reconciled to comparable U.S. GAAP financial measures in the Reconciliation of U.S. GAAP to Non-GAAP Financial Measures contained in this Press Release.
             
             

STERICYCLE, INC.  
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  
(In millions)  
               
  December 31,     December 31,  
  2019     2018  
ASSETS              
Current Assets:              
Cash and cash equivalents $ 34.7     $ 34.3  
Accounts receivable, net   544.3       599.6  
Prepaid expenses   60.7       50.0  
Other current assets   66.9       63.4  
Total Current Assets   706.6       747.3  
Property, plant and equipment, net   798.5       743.5  
Operating lease right-of-use assets   435.0       -  
Goodwill   2,982.2       3,222.2  
Intangible assets, net   1,422.4       1,637.7  
Other assets   92.3       104.8  
Total Assets $ 6,437.0     $ 6,455.5  
               
LIABILITIES AND EQUITY              
Current Liabilities:              
Current portion of long-term debt $ 103.1     $ 104.3  
Bank overdrafts   1.9       14.8  
Accounts payable   220.1       225.8  
Accrued liabilities   296.6       340.8  
Operating lease liabilities   94.8       -  
Other current liabilities   40.4       47.5  
Total Current Liabilities   756.9       733.2  
               
Long-term debt, net   2,559.3       2,663.9  
Long-term operating lease liabilities   356.1       -  
Deferred income taxes   295.1       307.3  
Long-term taxes payable   70.7       83.3  
Other liabilities   64.2       70.7  
Total Liabilities   4,102.3       3,858.4  
               
Commitments and contingencies              
               
Equity:              
Common stock   0.9       0.9  
Additional paid-in capital   1,205.7       1,162.6  
Retained earnings   1,442.4       1,789.2  
Accumulated other comprehensive loss   (318.1 )     (365.3 )
Total Stericycle, Inc.s Equity   2,330.9       2,587.4  
Noncontrolling interests   3.8       9.7  
Total Equity   2,334.7       2,597.1  
Total Liabilities and Equity $ 6,437.0     $ 6,455.5  

             
             

STERICYCLE, INC.  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In millions)  
               
  Year Ended December 31,  
  2019     2018  
OPERATING ACTIVITIES:              
Net loss $ (346.0 )   $ (245.6 )
Adjustments to reconcile net loss to net cash from operating activities:              
Depreciation   127.6       125.6  
Intangible amortization   145.2       130.3  
Loss on early extinguishment of debt and related charges   26.5       -  
Stock-based compensation expense   17.1       24.1  
Deferred income taxes   (33.9 )     (34.1 )
Goodwill impairment   228.3       358.7  
Divestiture losses, net of gains   103.0       12.8  
Asset impairments, gain/loss on disposal of property plant and equipment and other charges   28.1       47.4  
Other, net   2.5       3.8  
Changes in operating assets and liabilities, net of the effects of acquisitions and divestitures:              
Accounts receivable   24.5       3.6  
Prepaid expenses   (18.4 )     (15.6 )
Accounts payable   (4.6 )     9.3  
Accrued liabilities   (33.4 )     (238.5 )
Other assets and liabilities   (18.5 )     (16.1 )
Net cash from operating activities   248.0       165.7  
INVESTING ACTIVITIES:              
Capital expenditures   (194.2 )     (130.8 )
Payments for acquisitions, net of cash acquired   (0.2 )     (44.7 )
Proceeds from divestitures of businesses   86.6       25.2  
Other, net   3.8       2.8  
Net cash from investing activities   (104.0 )     (147.5 )
FINANCING ACTIVITIES:              
Repayments of long-term debt and other obligations   (50.4 )     (64.5 )
(Repayments of) proceeds from foreign bank debt, net   (35.7 )     (5.7 )
Proceeds from Term Loan   365.0       -  
Repayments of Term Loan   (95.3 )     (47.5 )
Proceeds from issuance of Senior Notes   600.0       -  
Net proceeds from Senior Credit Facility   176.6       116.2  
Repayments of private placement notes   (1,075.0 )     -  
Payments on early extinguishment of debt   (20.4 )     -  
(Repayments of) proceeds from bank overdrafts, net   (12.5 )     8.7  
Payments of capital lease obligations   (4.3 )     (8.2 )
Payments of deferred financing costs   (8.8 )     (1.7 )
Proceeds from issuance of common stock, net of shares withheld for tax   19.9       20.1  
Payments for repurchase of mandatory convertible preferred stock   -       (17.2 )
Dividends paid on mandatory convertible preferred stock   -       (25.5 )
Payments to noncontrolling interest   (0.7 )     (0.4 )
Net cash from financing activities   (141.6 )     (25.7 )
Effect of exchange rate changes on cash and cash equivalents   (2.0 )     (0.4 )
Net change in cash and cash equivalents   0.4       (7.9 )
Cash and cash equivalents at beginning of year   34.3       42.2  
Cash and cash equivalents at end of year $ 34.7     $ 34.3  
               
SUPPLEMENTAL CASH FLOW INFORMATION:              
Net issuances of obligations for acquisitions $ 0.3     $ 30.1  
Capital expenditures in accounts payable $ 33.8     $ 30.8  
Interest paid during the period, net of capitalized interest $ 101.5     $ 93.7  
Income taxes paid during the period, net of refunds $ 6.9     $ 26.4  
Free cash flow (1) $ 53.8     $ 34.9  

(1) Free Cash Flow is calculated as Net cash flow from operating activities less Capital expenditures.


Table 1–A: REVENUES CHANGES BY SERVICE AND GEOGRAPHY (UNAUDITED) –
THREE MONTHS ENDED DECEMBER 31, 2019

   Three Months Ended December 31,  
  In millions         Components of Change (%)  
                          Organic                    
  2019   2018   Change
($)
  Change
(%)
  SOP
Related
  Other   Acquisitions   Divestitures   Foreign
Exchange(1)
 
Revenues by Service                                                      
Regulated Waste and Compliance Services (2) $ 473.7   $ 474.8   $ (1.1 )   (0.2 %)       2.0 %       (0.9 %)   (1.3 %)
Secure Information Destruction Services   217.9     233.5     (15.6 )   (6.7 %)   (8.3 %)   1.8 %   0.1 %       (0.3 %)
Communication and Related Services (3)   35.9     68.3     (32.4 )   (47.4 %)       (2.0 %)       (45.6 %)   0.2 %
Manufacturing and Industrial Services   72.4     76.1     (3.7 )   (4.9 %)       (0.9 %)       (1.0 %)   (3.0 %)
Total Revenues $ 799.9   $ 852.7   $ (52.8 )   (6.2 %)   (2.3 %)   1.3 %       (4.2 %)   (1.1 %)
                                                       
Revenues by Geography                                                      
Domestic and Canada (3) $ 660.8   $ 700.6   $ (39.8 )   (5.7 %)   (2.3 %)   0.3 %       (3.7 %)   (0.0 %)
International (2)   139.1     152.1     (13.0 )   (8.5 %)   (2.2 %)   6.0 %       (6.5 %)   (5.9 %)
Total Revenues $ 799.9   $ 852.7   $ (52.8 )   (6.2 %)   (2.3 %)   1.3 %       (4.2 %)   (1.1 %)

See footnote descriptions below Table 1 – C.

Table 1–B: REVENUES CHANGES BY SERVICE AND GEOGRAPHY (UNAUDITED) –
YEAR ENDED DECEMBER 31, 2019

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   Year Ended December 31,  
  In millions         Components of Change (%)  
                          Organic                    
  2019   2018   Change
($)
  Change
(%)
  SOP
Related
  Other   Acquisitions   Divestitures   Foreign
Exchange(1)
 
Revenues by Service                                                      
Regulated Waste and Compliance Services (4) $ 1,892.8   $ 1,932.6   $ (39.8 )   (2.1 %)       0.7 %   0.1 %   (0.5 %)   (2.4 %)
Secure Information Destruction Services   901.9     911.0     (9.1 )   (1.0 %)   (4.6 %)   3.6 %   0.9 %       (0.9 %)
Communication and Related Services (5)   219.2     313.1     (93.9 )   (30.0 %)       (16.6 %)       (13.0 %)   (0.4 %)
Manufacturing and Industrial Services   295.0     329.2     (34.2 )   (10.4 %)       (2.2 %)       (4.1 %)   (4.1 %)
Total Revenues $ 3,308.9   $ 3,485.9   $ (177.0 )   (5.1 %)   (1.2 %)   (0.4 %)   0.3 %   (1.8 %)   (1.9 %)
                                                       
Revenues by Geography                                                      
Domestic and Canada (5) $ 2,729.6   $ 2,830.8   $ (101.2 )   (3.6 %)   (1.2 %)   (1.4 %)   0.3 %   (1.1 %)   (0.1 %)
International (4)   579.3     655.1     (75.8 )   (11.6 %)   (1.0 %)   4.1 %       (4.9 %)   (9.8 %)