Stericycle (SRCL) 25 Apr 242024 Q1 Earnings call transcript

Thank you for standing by, and welcome to the Q1 2024 Stericycle Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Ellis, Senior Vice President of Finance.

Good morning, and thank you for joining Stericycle's 2024 First Quarter Earnings Call.

On the call today will be Cindy Miller, our Chief Executive Officer; Janet Zelenka, our Chief Financial Officer and Chief Information Officer; and Cory White, our Chief Commercial Officer. forward-looking risks includes uncertainties. today discussion statements and involve The expects, such may, expressions When words believes, are anticipates, statements. similar we use or as estimates, goal plan, forward-looking will,

on in and expectations of subject our events are are to on future projections nature about are, statements but rather prospective not Forward-looking based and historical management risks facts, current uncertainties. and therefore, and

discussed Factors from in that in press could and results the U.S. in described Exchange the actual to statement those differ safe Securities risk with differ results the Commission. significantly are cause harbor our could release forward-looking greater Our our and factors actual statements. detail and filings such earnings our in within

future anticipate in performance, results legal or investors use obligations. financial historical results to any statements not future other and should than accordance measures. nonfinancial Our considered past a our performance should to trends. be any forward-looking update obligation [indiscernible], discuss with not We or revise we disclaim will regulatory reliable of and indicator

most our Stericycle's and please schedules the For additional which to refer at to in measures, GAAP comparable press website investors.stericycle.com. Relations be reconciliation found U.S. Investor can release, on earnings information the

the hour XXXX, call retransmission and of also a Cindy. written I'll a today's is the information consent the Stericycle will Time-sensitive replay occurring now the will Relations prohibited. on replay. be accurate recorded, for of turn without which at also of express over the this any an comments today until available which slides replay be Any of may available to provided after longer call from website. X will May Relations is end webcast form in call of specific to rebroadcast XXXX,. redistribution, reference today prepared no A Investor on is The Throughout the presentation, call XX, This call available being or is earnings April Investor XX, time during Stericycle's Stericycle's the we at correspond website. call, the conference approximately presentation. be

Good through and today's Andrew. will and on performance. our everyone. key walk you, On our Cory update provide results. our cover first will an financial I priorities call, business will I Janet morning, of Thank highlights quarter

quarter $X.XX, We $X.XX with improvement earnings per [ share $X.X first over was are results. the ] adjusted first EBITDA XXXX. our of Adjusted million, pleased an quarter million was and $XXX.X improvement a

These XXXX. full to improvements track disciplined for were across driven guidance achieve we our by priorities, are year key execution our and on

and Services were calls. we a driven by First serve on in the the Compliance quarter with eighth being is for line as national earnings account outlined revenues in consecutive reduction grew organic customers, internal quarter, revenues in previous our offset Waste Regulated mainly have partially expectations. our growth which we hospital footprint by

excellence. commodity due first mainly to revenues in prior first commercial expected, as and I new performed in headwinds over anticipated to Destruction call earnings Information priority, we update in service mentioned of an half the business Secure will indexed our year-over-year turn provide to the now XXXX, on key Cory our call. as

Cindy. you, Thank

and our and reminder, Today, excellence awareness launched product regularly pillars provides initiative the solutions. and focuses X like Secure and cybersecurity paper service of commercial privacy customizable I which developing which Shred-it service sales, are and scheduled launching products. enhanced We Information bundles on a latest in our business, an As provide recently training. of excellence our service Destruction Plus for tiers on Protect to update would service shredding

they employees This and are that more than is compliance XX% only protection and specific the Protect Shred-it consumers. In over which ongoing provides business offering secure reported stops practice, subscription destruction, brand training reputation our leaders offering an training. survey, maintain compliance-based our information business Protect the latest for reported helps information small security surveys customer of and bundle report first that differentiated with Plus waste deployment data with billing essential similar ERP subscription-based and medium-sized annual need customers, capabilities product to our compliance, our small- XX% enabled and promotes Plus small feedback leaders offering predictable delivered were by fall. X,XXX that This tools in yet which provided for marketplace. monthly with this last business with and addresses customers. this protection year's data service Steri-Safe aligns regulated

days, generated only. new approximately already customers revenues we with $X have million in Although early annualized

I will priorities. our now Cindy other the turn call key on back for business update an to

Cory. you, Thank

key are second driving margin our we expansion. to Operational business focusing on excellence, priority. Turning

in First, XXXX. that of actions managing we along of quarter the call, on included discussed XXXX have continued completed headcount which XXXX reductions in careful in targeted quarter fourth management XXXX, and first we began and attrition the the with February hiring that earnings workforce

cost we From actions, million savings. these in-year realize estimated are $XX to $XX on of an million to track

fleet Second, the medical McCarran, Nevada to incinerator of be second our phase. in point which testing newest track will in the we on of begin phase waste at completed quarter construction the remains XXXX,

also expect at to process location paper [indiscernible] the building this to are begin and later this capability We sorted paper year. office

has our us our Third, ERP. of In which routes approximately is optimization XX producing fleet, to businesses, a America months. America, last reduction make over the about to North allowed eliminate been has X% on we initiative enabled by XXX across vehicles continue both North of progress routing which core our

more Janet discuss in I over will call results the turn to financial to our detail. now

Thank will you, start quarter summarizing our Cindy. financial by I results. first

acquisition divestitures to partially The Waste $XXX.X XXXX. was As million, Secure grew revenues $X.X foreign $XXX.X rates X, of declined mainly $X.X Slide and $XX.X due Information Organic in of while decrease which was of noted organic million of the Services favorable exchange million. by on million in an Destruction offset first were Compliance $XX.X to Regulated revenues compared the $X in quarter million, million. revenues and quarter first million

surcharges lower million $XX.X which revenues of revenues [indiscernible] higher index fuel and by due impacted of to and [ revenues mainly ] offset recycling was by were Destruction Information million. lower Secure environment $X.X partially lower

to were million first [ and $XXX.X care on XXXX. X, in Services of noted Compliance As ] $XXX.X quarter Slide Regulated million revenues the Waste

divestitures, the revenues quarter. and in of an rates increased Excluding X.X% acquisition, first the impact exchange organic

In or North $X.X price. X%, or and mainly driven Waste America, revenues and $X.X million increased organic increased driven Regulated by price. Services by Regulated revenues million Waste International Compliance Compliance organic mainly

of Destruction Information $XXX.X quarter Secure revenues to in first compared were million $XXX million the XXXX.

and revenues revenues, to year-over-year. pricing sorted reflecting the ton an per foreign of exchange office impact $XX commodity an paper due X.X% rates in index organic lower reduction decreased Excluding mainly acquisition, divestitures, about

affecting or first quarter the million of revenues to revenues the declined X% office tonnage. pricing XXXX. lower million $XX.X RISI first lower or X% compared quarter, recycling In North In America, to and Secure paper Information paper Destruction organic [indiscernible] sorted rates due $XX.X were

site We with continue mostly and see existing recovery of by customers $X.X losses quarter, were low-margin mainly headwinds In surcharge. to or service service by driven million, stops in stops X% recycling up revenues the [indiscernible] the our with national closures. driven customers, approximately

in As to when sorted office with paper are offset reduction recovery reminder, our are ton, recycling of a prices the surcharge. able XX% a prices below approximately paper $XXX we

average to sorted Looking of $XXX as ton. over of approximately reduction offset a year-over-year, were XX% XXXX quarter able the first in office was the we paper price the

from the to compared international the to quarter organic in lower first XXXX, million or Information revenues. decreased in was due Income index first Destruction Our mainly compared quarter million commodity XXXX. of operations $XX.X Secure revenues million X.X% to first of the $XX $X.X quarter

flow-through These bad corresponding level lower of diluted through earnings share Secure commodity $XX.X collection. and decreases income partially The of to Information ] offset or margin of a savings $X.X by revenues earnings quarter $X.XX information higher $X.XX [ decrease per $X.X North secure impact to Net share of compensation items mainly quarter lower million. [indiscernible] adjusting expense million XXXX. expense Destruction higher was incentive result as debt diluted of destruction improved cost was $X.X $XX.X and ] million, million index of and million of in or and of America $XXX due due debt compared million first a the lower mainly $XX.X million [ million were bad per to first the flow stock-based XXXX $X.X

and $XXX $XX.X XXXX. regulated net due The deferred revenues to mainly partially expense of increased year-over-year capital for the I was the collection explained. was million income launch billing by an X increase to an million $XX.X higher offset of compared from operations payments working million lower from the annual other receivable and XX, months million ended from incentive accounts outflow $XX.X expected XXXX, changes of September in plan as in $X.X waste inflow due interest The just of million, decrease ERP was million. lower of $XX.X delays an of to and $X $XX.X million Cash to million same XXXX, of operations, mainly due March period of

we of quarter, that trends quarter continuation the call. the we of fourth on In first experienced accounts the beginning a [indiscernible] receivable

for reminder, or see up to first we percentage or XX.X% as year was invoicing as revenues a the we a operations the receivable accounts from the and implementation due some mainly as from and percentage waste Beginning million in by in these of in million customers requirements. did were March, of As largest of U.S. accuracy $XX.X in collections started to Adjusted $XX.X customer timing driven XXXX. revenues, for our trends improvement income stabilize, a customer collections billings held or quarter balances meet XX.X% regulated April. invoices complex of

operations basis margin Commodity partially points. points of Index of and basis points points, Destruction points as incentive to of and was impact bad debt and and of expense lower-margin from by income divesting offset cost revenues the due Information as the mainly of explained. flow-through compensation increased impact higher lower XX of of basis XXX revenues corresponding points, Adjusted businesses XX increase XX margin basis percentage basis basis lower XXX Secure and stock-based flow-through XXX a savings This

$X.XX noted earnings to quarter compared on of Slide in adjusted XX, diluted first per the $X.XX was XXXX. share As

$X.XX margin $X.XX; to investing XX, by and compensation cost million same expense taxes, increase $X.XX. compared $X.XX. and of interest Excluding for driven Capital partially by: lower for debt of the [indiscernible], stock-based was three, $XX.X March period were and lower-margin lower incentive for [indiscernible] lower months flow-through $XX.X $X.XX; ended $X.XX destruction and of index of last one, $X.XX other expenditures of bad X positive impact the were million the year. revenues two, remains offset secure year-over-year are the XXXX, and commodity businesses savings These

for the $XX.X period to million flow $XX.X of same the quarter in outflow of cash was of an Free inflow an first million XXXX. compared

due million $XXX in As the the of high was X, noted $XXX.X mainly expenditures approximately to operations $X.X million lower on ] of capital from million. decline year-over-year [ Slide of cash

expected we our expectations, the fourth in compensation use timing of on as a and in and mentioned line our payouts, it As interest call mints annual quarter debt collections. semiannual receivable includes first of quarter incentive cash with the the the

our allows XX, agreement end when leverage defined approximately debt add-backs leverage ratio leverage X.XXx expired credit with Slide for the the of with calculating was add-backs on and credit of the XXXX. of at shown add-backs, As these first end the in of which debt at ratio cash that ratio our the and such by was of agreement points expectations. $XX agreement amended anticipated, Expiration XX The increased quarter, first million quarter XXXX. aligned certain debt agreement defined credit

long-term expect Xx to year. We to to of our later X.X this range return

now to I call the Cindy. back turn will

Thank you, Janet.

inclusive I'm inclusion, university celebrating organizational rating value, aligning diversity One innovation for the greatest received recognized the we highest excited values by in of plays We with women. to very as driving offering this America's share one of environment Stericycle's and a Newsweek and core core and for workplaces recently for that and and at success. diverse diversity role were is activity,

continued As always, shareholders and what serve the customers, in please protect Stericycle to the we team our their having our and trust thank matters. line I'd Q&A. Operator, for members communities like for open

comes [Operator Markets. Sean Instructions] And from our first Dodge question from Capital RBC

Yes.

target. towards you to you reduction the of $XX On COGS million the guidance, year Cindy, the said ] headcount completed full million in-year [ $XX to EBITDA

and think the need detail million $XX $XX of can some you the way how more you rest are guidance, else just separate? are and the done mentioned actions to cost to in those transportation Are and other to that or you facility those take routing year us maybe other give or little The of I get be give part you the fleet enhancements? bit take, million, redundant. guess needs to XX XX you of a all specifically to along I that? on on that far the to

Yes, question. you're for the thanks correct. Sean, No, Yes.

reduction the of end So year savings year. We've we've got the last force in from at that got happened this February.

rebalancing. making team into but small think I progress, route the for team mighty they're is the sure. So a great for where leaning of And continuation

are We productivity leaning seen. we've that gains into

everything autoclaves have yielding longer, We that Those results -- to expenditure staffing to the equipment from handling XX bit upgraded is of capital the of got folks them. about other a materials new in last conveyance of year, good facilities and things actually we've or of in investment. quite amount are staying reduces which time up terms

there's all that So this also hiring of and in working. is as well. part careful Remember, a attrition terms to

that We're being in the of things keen sure replacements we make very forces eye terms of already the reduction that a disciplined and lot in to on keep a had. we've

trending the out, I certainly all very is great of So on those a -- we I think laid had that confident doing are a we think we're that the team job. plan and I'm track it's towards combination

cash, Okay. Are impact a more your quarters? pretty where begin April. you it just to to like over And accounts that in you QX the million diversing million. Or just at start little know be reverse? from going the back-ended? stabilize of to then ratable this few should and some $XXX bit starting Is or And the next see pretty What's we to it's I cash -- as now mentioned with of Great. us? point receivable And $XXX ERP. then stabilizing the you looks free unpack this said the context free should happening to in Janet, full there? then Can for on we that

Yes, I'll start.

to quarter. will the it I see think improve start you in second

processed see starting are momentum $XXX to getting of bills month customers. our a remaining. systems that are cash RWCS on a in are our most that for is highly and in. right to most We and the We over collections customers invoices be focused pay build over America, intent those just thousands lot most of of in of our Those coming complex complex million North This customers. is largest and to about for

very So encouraged we're we're by seeing. the momentum

that but the progresses we will the our actually, said flow bit, cash because confident in we second the into to we our money are to think I flip that as know be a and positive continue year intend had go into cash in predicted paid. we quarter that when And we is have that would were first on continue outflow better quarter I looking we at flow did would the cash we to had in than And internally, that QX. thought. guidance

Baird. And our from next question David comes from Manthey

remain expecting about the savings flow or at constant on the time ahead? cost associated first decelerate next far? are outline in of either that to Are you that, of And talked evidence My with hoping can projects levels is or question the improve I'm what new business and system or solve line? And with some problems key you've Janet, been margin ERP you to through. so the able you quarters processes accelerate, that

great Appreciate Dave, to the hear you. questions. Great.

Certainly, it's if done additional ERP didn't look capabilities solves two at -- does So it up what I fix? we as what it ways. And then it problems, you. almost but open then also it for we as the can opportunity -- an have think so you has

now to shed needs. say terms putting the as So routing fly, and able that levels report, an have stop changes. understand make but with during produce problems, right on to platform RWCS the certainly capabilities a on customers simple will, I same side to now morning don't different to in want counts terms, to if of day you anytime from it get in are you as they dispatching be

on the on or ERP side. We are early the regulated days

think the are really our technology. into leaning I operators But

you us, would you So inefficiencies better, -- will miles vehicles can some for take that solving Those the routed fuel, do work, just and the turn the say routing, call better XXX the around we're continue I to problems, if Anytime all the off you relaxed are for. street, or that it everything. of just the having

let's -- commercial We're now, better. the and our we customers look -- morph Protect right understanding take just say, launched into, the looking as then side at but we at And if a Plus. you solutions, excellence,

things We leverage do penetrate, are cross-sell, looking at can better. we how

All life of longer we're coming manual. that is to no because

harness I is but through. is lot think of we're the early It So out is us, morphing to information And the now talk ERP. I awful in about -- muscling for bran pretty finally the me, an much it to able getting combining what because brain terms just used and that days we're now. giving use we're the brown coming the doing right ERP some and anything from really stage. more we're is with We're brain. the from with we're

to that. And we're bit better there, and more frankly, of is come with in guidance, So a most then reduction QX. reaffirmed remember, what good the us terms seeing, have long-range of completed to us that quite getting the on momentum for headcount into built in

we're are QX. $XX savings that the momentum just cost going have, So not most build And to on see going for we're savings to David, that in million million in-year the to year. $XX on

seen build important. data us has over and RWCS have us. a we're because before also we also Destruction been in that RWCS, We in this has continued SG&A Secure are and to been others -- and applying that rebalancing. see that Most the driver some route insights see never momentum for can key that that there we going of is to which But we key year next is and for Information and have

the will second [ the headwinds heaviest heaviest just quarter. flow-through I from second in related creating RISI that then in to from headwinds on the We'll that margin first see a mitigate as point index revenue the we [indiscernible] also seeing and the to the in quarter, ] that have flow-through SID in The was well, out commodity the want some of year. year-over-year quarter. fourth we're rates

operating Okay. overstate right one. lot it, that operating but great important corporate it offering, That's On like here? be? than of is to how and average? turning to than it -- a Plus want I higher Protect then it break to an when customer overall, be going SMB this SQ Is that sounds a waste, would to given was quick information. just and used Med out Protect this to margins And assume higher Plus you're the margin secondarily, you don't

Janet address discussion. Protect Plus. time Cory the of -- follower been kind for us, time. let long margin I'll Dave, to for talked maybe niche take we're compare you look, small for about you've But who doesn't us, we're market, have a And a owner a a medium that being department. service in and what this and a training really Steri-Safe and doing business to Any to provide you able similar that's

this our departments. don't us, on them shred awful provide all information side compliance the that's cyber, appreciates for our have big the the expertise because all an customer has the at venture things And of [indiscernible], have in that have we to exciting fingertips. They base that technical the really keeping with RWC the don't into them. their companies information, They it lot -- is to the resources around been all

them we anybody is builds Cory because is our with I engagement this for now small we what takes the -- the -- and the and think, that's at have customers mention are think i and us, them which Cory, this and think away was something offering. and we us big transactional I subscription new that else, value really service I moment. think aren't us right really connectivity is -- builds certainly, customer just it I the it competitors think So that providing from stickiness -- allowing Where that with the

margin. inherently, the point this for ERP of by out your it we And transactional small And a stability in RWCS business secure now, is last I'd a went destruction put and the was have customers when And like terms your to of customers. information very margin Right capability margin, XXX% to subscription-based profile to just its has than medium the fall. was place yes, a better nature. just largest

capability So to subscription we the our in didn't have system customers. base the to offer

potential, That our about about a think, is a independent the stability offering. that long ability of XX% a as is So revenue enabled also customers provides in this do based. I like which subscription just run revenue, flow-through in we and RWCS,

So days. it's -- early an it's

not you're enabled So right is And it's an by encouraging. capabilities overstate to ERP. the example it but the it, of

And Schneeberger from next our Scott comes from & Company. Oppenheimer question

-- I'll question in offering. Maybe that pick interesting Plus very this. new on very a last like sounds It's up Protect as a question. X-part

in this after and First if just me an Steri-Safe. of rolled is you collections pickup information that on do one out would at priority the on be, Express base for ago. which be update -- please I was a Janet, you you, Number two top provide as can you a add opposed will to the if subscription believe Cindy, the is And month initiative not. fact, secure couple the more the the way of progress for years correct services

on the curious a Just you that's as year. topic, we to over expect business. sit innovate innovation, should clearly this in you're the on ERP for And any -- in this place, lastly, have is looking progressing how destruction

with to you. expect So Should top the waste in we with line? matter of we're time, from a innovate innovation particularly seeing to this regard regulated regard

So collections. I'll question the take on first

are billing we in So advance RWCS. bill the yes, and right, subscription do you for and

questions. So various ] two [

credit going Plus ACH. for asked billing with cards also are or well Protect as We by

transactional improvement it cash the So that do bill. is and flow you then you a and versus

this So I'll win product. another it for for then the And to turn over particular and is Cindy Express Priority. it

Sure.

that thing, We've really very really folks along on-demand how right think want -- amazing purge this So priority it's that that's the teams that got into the are well. Express I continues drive and to culture, selling the fits absolutely, Priority that matching many demand.

that. your answer positive unleashed some there coming RWCS last innovation say then, So things ERP. by with prematurely. we've I on I But short Cory can Cory? would think that's the to question, we And going answer the Cory, got I I think say know won't anything is there.

Yes.

questions. think great I

I ultimately, capabilities think we're the excited there. about

we'll think there. We've past innovation safe to assume talked some to continue in about, obviously, new centers we're see I doing it's innovation. and the

will talked in new is data. about earnings there facilities. this I We've We've especially the the us, that and more about really continue. targeted talked as exciting So for past sustainability I unlock But calls, move sites think think we into innovations. big thing

of better give data opportunities some us into capabilities unlocked is importantly, locking again The really think the to opportunities areas to to really like target see new in we benchmarking we to way from for more insights recycling innovation for technology. all streams, customers, present data, but be that way the things this waste for opportunity that, going drive are ERP I savings

but early excited to that continues innovation grow. come to more there, the we're days, about So pipeline

both segments able service I cover -- I the question. the I is the than I And but you a for major primarily paper. And are how just both I to second X probably more sort use you are a on how did of pricing appreciate that Cindy across to just everyone. like more you across in know ask curious, segments? to first as environment But for opposed inflationary and guess, pressure. would X in -- on one, disruption

question, Scott. great that's think a I

be we Another things. thing those has adaptive able to internally be current opportunity and us think engaged ERP the I to see the flexible to really as more afforded more to that just be stay

hey, I customers. I don't there major now, I I I And being had see pricing think steady right think to for XXXX should from, be forth most we're think think overall I me, pushback a where quite think, we their hit Stericycle back So January companies, and on, negotiations very to like reference frankly, go of opportunities any when rhythm. us with X%, for price in inflation from

think with as or continue see we looking it's forward. CPIs whether of those I move we're stability. things, And to But I types

what it. you're really we think seeing with any are is driving problems I at

that both SPX ability next stability. of our be more for extract I X that business moment see sides And me, our see to the provide. we on question.. by services the For expect able value I we

from comes question Tobey Truist Sommer from next our And Securities.

This [indiscernible] is Tobey. for Jeff

I'm as regulated just trends and price on growth of large the For from business, behavior the players between quantity competitive seeing smaller if waste the you're generators in curious some as U.S. the could well small you the looks like market. stratify

question. Good Yes.

call that if our us, generator we I will. -- group, large our think quantity hospital it is really you for

these have hospital like look we're it it's really growth, a large are very there looks terms networks with pleased -- when of quite Some seeing think grown volume of what I We're in at interesting. take you is returning.

we as us, very come the see encouraged there. and come We're certain It to though, more of of unfolds. terms recovery, think for in what I better grow bit it little we're by that a to encouraged by opportunity are what terms areas, of shape has But mixed than we're in seeing. is in staffing back some maybe others. the

a back And impact Shred-it. then season typically for first in I there's seasonal with the know half

as and just tonnage the trend there you'd So seen start return that more whether uplift -- the guess, a seasonal to, I you've of office kind curious if discontinued? normally to bit you've expect stabilize seen

think as It everybody soon call I minor they a as out. taxes kind is that's Yes, good blip, X of purge not do a years everything prior. their from

quite So apples-to-apples. it isn't an

did The things out beginning to or and some QX, had want I -- business, on we some we revenue. built we has facilities. to transactions bursting being -- get us through able not we missed pipes with that day, means with things did have see We to adverse usual had say with the several which the vehicles the means in January, weren't shred weather usual happen other some of thing and reference with that able to the

all things those all, in through. we moved washed So I of as kind think

really about we the like forward or isn't it think it. for I business to ones seasonality extreme QX, So do cycles as us, into this that we move that is

we're So is as which I to encouraged think where we outlined. to believe originally going make are, we're continue why guidance we

Stifel. question Hoffman next Michael our from comes from And

XXX. ] woman noted [ So Cindy, a as being congratulations who on Waste inspires by

very thank public kind you a service much. Michael, announcement. very little That was

are So the your first. what of called think you I XXs kind there's why fourth small call market. around the get waste, the having can't independent Cory a penetration to my as quarter next incremental dock. be the you used generator, strategy in on in medical questions small so -- low of growth talked about go-to-market in

volume part relative a waiting for existing nursing customer market. new your homes as [indiscernible], assisted living as also in there's add recovery said the staffing Golden well? a Mike underweighted opportunity But that is you're and of the in little hospitals the and volume issue to opportunity even and

Michael, And in things rooms, think as couple of I the frankly, it's that the done first. one the one almost that things we quite stable talk you've a has workforce. that. ERP been of about if do the And of a

staffed when drive opportunity their rebalance we So within days. worth you territory accordingly. within and routes take of reroute work. you miles an density and to out you And you be drivers productive day's more It them as are provides of that

you provide and you go go to because now do the tighten have those opportunities to that for to across of When So to appropriate when to for expect. opportunity than have staffing customers or county you up left your the [indiscernible] different us, town, and more routes, worry look and service able drive right after about leads big afforded opportunity be next after different customers. do and just drive the the you time all bigger customers

gain dispatching order more looks look that bullet, to in else to you it's to like and a very add revenue. imagine, -- when as you're something for sometimes can difficult And capture

efficient. this more up many. new can and to improvements hey, do stack in So getting before XX to learnings opportunity do I'm and And I'd we get, this years to people avenues. that for the and those technology, getting of world would our team, we efficiency as we commercial it we get really more be as table that against you're that, of here. continue in where that's I I for operations engineering that, think, ability improvements proud lived rebalance right, us, with the and and stack pretty more having with the we continue pretty aggressive the they're then

good our in as open we think we get position And the better a then ourselves service you routes, up to that's are service we we we finally as the think move I as provide tighter I we as and more. can with put get forward. So

SOP facility you or for seeing growth. Janet, the same-store And help CVS organic and disaggregate we're strip on the shred us Rite Aid we were site and up, stops so side, away then otherwise us we're could closures,

Yes.

really about all there. signs and if And So commodity X% away what's out, what's seeing well medium call a the globally look really as on strip and if small America. was the you take out up X.X% the footprint revenue you issue as globally, you going national at North good we're the And rest with encouraging going commodity-based it's know. well of about on business. And on just revenue, service to

Perfect. And line then get we -- your top so don't wrong.

current If headwind price knew price if the you was gave -- for the what's whole here? you if the quarter, our SOP

Yes.

year. the significant So for headwind

to get headwinds It's QX. the XX over trying looking Are QX for we're or big think looking at you was That like it's I'm like the right -- number number. I headwinds. something a here.

XQ, have be us hits you be QX. headwind to but supposed data that there's in smaller it I in because to gave told another Well, to going us, you

in more than what QX. It's It's less QX significantly. it in was

paper then headwind just it second you comparison. be look it If mitigate the year-over-year, of ceases a to the to And in at the year. starts half the pricing in

million? $XX So

what half then year-over-year, the $X It's Yes. of in we the it guess a is for see actually best and nonissue -- year. to the of million the our quarter second the be in range second gets around

squeeze a couple question transaction-based one. about base. to go service could about you ago, this asked last you years Cindy, I And from of one Right. then

to you looks So enthusiastic were in now like? was Five years be understand because it what going so that I why mix the do you think ERP. is the

Yes.

be I the to think take of look is equivalent had large Steri-Safe our terms on if you would the regulated base got bellwether the in and independent, small side. businesses just mentioned, the in shred We've a as which medium Janet best on a side. customer

look you subscription at base. about So if of independent in us, that a for is take XX% that

regulated what the least exactly I will but for I know out -- towards we've us it on I turned be, and think for know what it put work us a don't to side. target matured to so it there at

that So I think ourselves possible. we've challenged internally we what's know

we upside different work there's that's towards. think great to and needs. for to we're certainly, us, But there, different what continue And going businesses,

[Operator Instructions]

Steinke And from Associates. Kevin our Barrington next question Research from comes

again just So following up Protect on Plus offering. the

penetration. You presumably large $X a opportunity imply which begun is contribution it for cross-sell customers, million not mentioned yet existing the that to you from only. new customers that to Does have

levels with As that you high Steri-Safe referenced of there you've the penetration achieved?

customers guess Kevin. right, I been It's exactly new That's only. on

the we've We but go only as contracts. expect year, throughout opportunity to new more with manifest started we

timing start Okay. a sense Plus existing Protect you Do the of you for that to to customers? cross-sell have when ramp is up might

Yes. offering. the contracts years, the we'll next to opportunity That the will write few have over the them of course on Plus up, Protect come obviously, -- as new

trickle and it years in so of will the throughout year the And come. rest continue to to this

the like no over And showing back now closing I I'm Miller remarks. further to for questions. turn Cindy would to

we everyone Thank for future. call, you listening much. appreciate your excitement in our you, Stericycle, to on Thank very this interest Justin. shared for all And

today's you participating. conference concludes This for Thank call.

You may now disconnect.