Shaftesbury Capital (SHC) H1 2025 Earnings Call July 29, 2025 03:30 AM ET Company ParticipantsIan Hawksworth - CEO & Executive DirectorSitul Jobanputra - CFO & DirectorNone - ExecutiveConference Call ParticipantsMatthew Saperia - Research AnalystZachary Gauge - Equity Research AnalystRobert Jones - Operations Oversight AnalystIan HawksworthI've got the thumbs up from the back of the room, which means the telephones are online. So I think we can kick off. Good morning. Thank you all for coming. I know you've ...

Shaftesbury Capital (SHC) H1 2025 Earnings Call July 29, 2025 03:30 AM ET Speaker0I've got the thumbs up from the back of the room, which means the telephones are online. So I think we can kick off. Good morning. Thank you all for coming. I know you've got a very busy day today as we sort of kick off the interim results season in our sector.Welcome. Normal agenda for today. We are really pleased with performance in the first half and delighted to present a good set of results to you all. I'm going to begin ...

2025 Interim Results 29 July 2025 Delivering income and value growth Successful first half of the year Strong financial performance and enhanced flexibility Delivering income and value growth Confidence in our prospects 2025 Interim Results 2 Successful first half of the Significant growth potential across our portfolio year Option 1 Strong operating and financial performance Growth in earnings, dividends, valuation and NTA Introduction of long-term, private capital Confidence in London's West End – Well-po ...

Core Viewpoint - Sotera Health Company will release its financial results for the second quarter ended June 30, 2025, on August 8, 2025, before market opening, followed by a conference call to discuss the results and operating highlights [1]. Company Overview - Sotera Health is a leading global provider of end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry, operating through three businesses: Sterigenics, Nordion, and Nelson Labs [3]. - The company's mission is to safeguard global health [3]. Conference Call Details - The conference call will take place at 9:00 a.m. Eastern Daylight Time on August 8, 2025, with participation options provided for both U.S. and international callers [2]. - A live webcast of the conference call will be available on the company's website, along with accompanying materials, and a replay will be accessible later that day [2].

Sotera Health Company (SHC) 2025 Conference June 04, 2025 07:35 AM ET Speaker0 We're, ready to get started. Hi. Good morning. I'm Dave Windley. I cover pharma services, cover a variety of health care areas, but appreciate your being here. Welcome to Jefferies Healthcare Conference for 2025 here in New York. It's a wonderful day on the walkover. I managed to only walk through one weed cloud on my way through, so I think I'm I think I'm still sober. We're pleased to I don't think I've been in the lead off spo ...

Part I [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) For the first quarter ended March 31, 2025, Sotera Health reported a net loss of $13.3 million, a significant downturn from the $6.3 million net income in the same period of 2024, primarily due to a $30.9 million charge for an EO litigation settlement in Illinois. Total assets increased slightly to $3.10 billion. Operating activities generated $55.5 million in cash, a substantial improvement from the prior year, mainly because of a large litigation payment made in Q1 2024 that did not recur Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $554,990 | $526,037 | | **Total Assets** | **$3,097,528** | **$3,071,648** | | **Total Current Liabilities** | $225,991 | $191,002 | | **Total Liabilities** | $2,683,437 | $2,666,737 | | **Total Equity** | **$414,091** | **$404,911** | Consolidated Statement of Operations Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Net Revenues** | **$254,523** | **$248,176** | | Gross Profit | $135,432 | $127,115 | | Illinois EO litigation settlement | $30,943 | $0 | | (Loss) Income before income taxes | $(14,823) | $11,014 | | **Net (Loss) Income** | **$(13,260)** | **$6,323** | | **Diluted (Loss) Earnings Per Share** | **$(0.05)** | **$0.02** | Consolidated Statement of Cash Flows Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$55,521** | **$9,699** | | Net cash used in investing activities | $(19,881) | $(34,853) | | Net cash used in financing activities | $(8,087) | $(11,941) | | **Net increase (decrease) in cash** | **$27,216** | **$(38,834)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide further information on financial statement items. Key disclosures include revenue disaggregation by segment, details on the $2.22 billion in long-term debt, specifics of the $30.9 million Illinois EO litigation settlement, and segment performance. The company operates in three segments: Sterigenics, Nordion, and Nelson Labs - The company operates and reports in three segments: Sterigenics (sterilization services), Nordion (Co-60 supply), and Nelson Labs (lab testing and advisory)[27](index=27&type=chunk) Disaggregated Net Revenues by Segment (Q1 2025 vs Q1 2024, in thousands) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | | :--- | :--- | :--- | | Sterigenics | $169,684 | $166,497 | | Nordion | $32,557 | $24,007 | | Nelson Labs | $52,282 | $57,672 | | **Total** | **$254,523** | **$248,176** | - As of March 31, 2025, total long-term debt amounted to a net amount of **$2.22 billion**, primarily consisting of a **$1.47 billion** term loan and **$746 million** in secured notes, both due in 2031[47](index=47&type=chunk) - On April 3, 2025, the company entered into a binding term sheet to settle 97 EO-related claims in Illinois for a total of **$30.9 million**. This amount was accrued as a liability and recognized as an expense in Q1 2025[106](index=106&type=chunk)[108](index=108&type=chunk)[173](index=173&type=chunk) [Management's Discussion and Analysis (MD&A)](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 2.6% increase in Q1 2025 net revenues to $254.5 million, driven by a 41.0% surge in product revenues from Nordion due to Co-60 harvest timing. This was partially offset by a 1.1% decline in service revenues. The company recorded a net loss of $13.3 million, compared to a $6.3 million net income in Q1 2024, primarily due to a $30.9 million litigation settlement. Adjusted EBITDA, a non-GAAP measure, rose 8.8% to $121.8 million. Cash flow from operations significantly increased to $55.5 million, reflecting the non-recurrence of a $35.0 million litigation payment made in the prior-year quarter [Consolidated Results of Operations](index=38&type=section&id=Consolidated%20Results%20of%20Operations) Total net revenues for Q1 2025 increased by 2.6% to $254.5 million year-over-year. Product revenues grew 41.0% due to favorable volume and mix at Nordion, while service revenues decreased 1.1%. A significant $30.9 million charge for the Illinois EO litigation settlement led to a net loss of $13.3 million, a stark contrast to the $6.3 million net income in Q1 2024. SG&A expenses rose 8.3%, driven by increased litigation fees Q1 2025 vs Q1 2024 Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Net Revenues** | **$254,523** | **$248,176** | **$6,347** | **2.6%** | | Service Revenues | $223,940 | $226,481 | $(2,541) | (1.1)% | | Product Revenues | $30,583 | $21,695 | $8,888 | 41.0% | | **Net (Loss) Income** | **$(13,260)** | **$6,323** | **$(19,583)** | **(309.7)%** | | Adjusted EBITDA | $121,839 | $111,944 | $9,895 | 8.8% | - The increase in product revenues was primarily attributable to the timing of the Co-60 harvest schedule at the Nordion segment[165](index=165&type=chunk) - SG&A expenses increased by **$4.9 million (8.3%)**, mainly due to a **$6.3 million** rise in litigation and professional service fees related to EO sterilization facilities[171](index=171&type=chunk) [Segment Results of Operations](index=43&type=section&id=Segment%20Results%20of%20Operations) In Q1 2025, the Nordion segment was the standout performer with a 35.6% revenue increase to $32.6 million and a 61.5% surge in segment income, driven by favorable Co-60 harvest timing. Sterigenics saw modest revenue growth of 1.9% to $169.7 million due to pricing benefits. Nelson Labs experienced a 9.3% revenue decline to $52.3 million, as growth in core lab services was offset by a drop in expert advisory service revenue; however, its segment income still grew 7.0% due to lab optimization Segment Performance (Q1 2025 vs Q1 2024, in thousands) | Segment | Net Revenues Q1 2025 | % Change | Segment Income Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | | Sterigenics | $169,684 | 1.9% | $88,004 | 2.5% | | Nordion | $32,557 | 35.6% | $17,422 | 61.5% | | Nelson Labs | $52,282 | (9.3)% | $16,413 | 7.0% | - Nordion's strong performance was driven by volume and mix, largely attributable to a more favorable Co-60 harvest schedule[196](index=196&type=chunk)[198](index=198&type=chunk)[201](index=201&type=chunk) - Nelson Labs' revenue decreased due to a decline in expert advisory service revenue, but segment income margin improved from **26.6% to 31.4%** due to lab optimization and favorable mix in core testing services[199](index=199&type=chunk)[202](index=202&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of March 31, 2025, the company had $304.4 million in cash and cash equivalents. Operating activities generated $55.5 million in cash during Q1 2025, a significant increase from $9.7 million in Q1 2024, primarily because a $35.0 million Georgia EO litigation settlement was paid in the prior-year period. Capital expenditures were $19.9 million. Subsequent to the quarter end, on April 30, 2025, the company amended its Revolving Credit Facility, increasing its capacity to $600 million and extending the maturity to 2030 - Cash and cash equivalents stood at **$304.4 million** as of March 31, 2025[203](index=203&type=chunk) - Net cash from operating activities increased by **$45.8 million** year-over-year, mainly due to a **$35.0 million** payment for the Georgia EO litigation settlement in Q1 2024 that did not recur in Q1 2025[207](index=207&type=chunk) - On April 30, 2025, the company executed Amendment No. 5 to its Revolving Credit Facility, increasing total borrowing capacity to **$600.0 million** and extending the maturity date to April 30, 2030[211](index=211&type=chunk)[51](index=51&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risks since the disclosures in its 2024 Form 10-K - Market risks have not materially changed for the three months ended March 31, 2025, from those described in the 2024 Form 10-K[219](index=219&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of the end of the quarter, the company's disclosure controls and procedures are effective[220](index=220&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[221](index=221&type=chunk) Part II [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in significant legal proceedings, primarily related to Ethylene Oxide (EO) tort litigation in California, Georgia, Illinois, and New Mexico. A key development is a $30.9 million settlement agreement for 97 claims in Illinois. The company is also facing securities litigation, which was dismissed but is now under appeal, and related derivative lawsuits. Insurance coverage for these matters is being actively pursued through litigation - The company faces numerous tort lawsuits alleging injuries from EO emissions at its facilities in California, Georgia, Illinois, and New Mexico[97](index=97&type=chunk)[228](index=228&type=chunk) - A binding term sheet was entered on April 3, 2025, to resolve 97 Illinois EO claims for **$30.9 million**[106](index=106&type=chunk)[108](index=108&type=chunk) - A stockholder class action lawsuit was dismissed with prejudice in March 2025, but the plaintiffs have appealed the decision[119](index=119&type=chunk) - The company is actively pursuing insurance coverage for EO tort lawsuits through multiple legal actions, with one case resulting in a favorable **$110.2 million** judgment for defense costs, which is currently under appeal[117](index=117&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors.) The company reports that there have been no material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes from the risk factors previously described in the 2024 Form 10-K[226](index=226&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information.) On April 30, 2025, the company amended its Revolving Credit Facility (Amendment No. 5), increasing the commitment by $176.2 million and extending the maturity date to April 30, 2030. Additionally, the company disclosed that no directors or officers adopted or terminated Rule 10b5-1 trading plans during the first quarter of 2025 - On April 30, 2025, the company entered into Amendment No. 5 to its Revolving Credit Facility, which increased commitments by **$176.2 million** and extended the maturity to April 30, 2030[227](index=227&type=chunk) - During Q1 2025, no directors or officers adopted or terminated any Rule 10b5-1 trading plans[230](index=230&type=chunk)

Sotera Health Company (SHC) reported $254.52 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 2.6%. EPS of $0.14 for the same period compares to $0.13 a year ago.The reported revenue represents a surprise of +3.63% over the Zacks Consensus Estimate of $245.61 million. With the consensus EPS estimate being $0.12, the EPS surprise was +16.67%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Core Viewpoint - Sotera Health Company reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing a slight increase from $0.13 per share a year ago, indicating a 16.67% earnings surprise [1][2] Financial Performance - The company posted revenues of $254.52 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.63%, compared to $248.18 million in the same quarter last year [2] - Over the last four quarters, Sotera Health has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Sotera Health shares have declined approximately 15.9% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The current Zacks Rank for Sotera Health is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $283.2 million, and for the current fiscal year, it is $0.75 on revenues of $1.13 billion [7] - The outlook for the Medical Services industry, where Sotera Health operates, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Sotera Health Company (SHC) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Company Participants Jason Peterson - VP & TreasurerMichael Petras - Chairman & CEOJonathan Lyons - Senior VP & CFODavid Windley - Managing Director Conference Call Participants Patrick Donnelly - Managing Director, Equity Research AnalystBrett Fishbin - Vice President & Equity Research AnalystMathew Sykes - AnalystLuke Sergott - AnalystJason Bednar - Senior Research AnalystMike Polark - Senior Equity Research Analyst Operator Please ...

Sotera Health Company (SHC) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 Please also note that this event is being recorded. I would now like to turn the conference over to Vice President of Investor Relations and Treasurer, Jason Peterson. Jason, I turn the call over to you. Speaker1 Good morning and thank you. Welcome to Sotera Health's first quarter twenty twenty five earnings call. You can find today's press release and accompanying supplemental slides on the Investors section of our website ...