Presentation for RCMP 11/06/08. Brad Johnson Lucian Tira Evangelos Kalogiropoulos Gani Beket. Company History. Founded in 1989 after Medical Waste Tracking Act First acquisition of outside provider in 1993 Launched IPO in 1996 First International operation in 1998.
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Founded in 1989 after Medical Waste Tracking Act
First acquisition of outside provider in 1993
Launched IPO in 1996
First International operation in 1998
Offers collection, transportation, treatment, disposal, and recycling of medical waste
Full service for nearly 400,000 customers
Small customers include doctors’ offices and pharmacies
Large customers include pharmaceutical companies, hospitals and blood banks
Foreign customers nearly 23% of revenues
Estimated market size:
Global $10.0 Domestic $3.0-$3.2B
“Frost & Sullivan Industry Study and Management Estimates” (including ancillary services & products)
Requirements of the Occupational Safety and Health Administration (“OSHA”)
The U.S. Drug Enforcement Administration (“DEA”) has recently emphasized on proper handling of expired or recalled pharmaceuticals.
Low barriers to entry
Technology and patents
Potential environmental liabilities
Broad range of services
Established National Network
Diverse Customer Base and Revenue Stability
Ability to integrate Acquisitions
Strong sales Network and Proprietary Database
Experienced Senior Management TeamRisk Factors & Competitive Strengths
Supply specially designed reusable leak-and puncture-resistant plastic containers to large and small-quantity customers
Collect them at intervals specified mainly by contract
Temporarily hold small loads of waste until they could be consolidated into truckloads and transported to a processing facility.
Disposal in a third party landfill. Complete documentation to customers for all regulated waste collected
First they scanned for unacceptable substances and then proceed to various treatments such as Autoclaving, ETD, chemical, Incineration
Completed 135 acquisitions from 1993-2007, 100 domestic and 35 international
Acquisitions have been fueling growth for years!
Acquisition deal structures increasingly favor debt…
Source: 10K’s, team estimates
Market price as at 6-Nov-08 is $58
Current stock price implies growth rate of revenues over 20% in the following 5 years!!!
“Flight to quality” since October as investors dump other stocks?