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Sotera Health(SHC) - 2024 Q1 - Earnings Call Transcript
2024-05-03 14:32
Financial Data and Key Metrics Changes - Total company revenues increased by 12.5% year-over-year to $248 million, with an 11.8% increase on a constant currency basis [10][16] - Adjusted EBITDA rose by 13.7% compared to Q1 2023, reaching $112 million, with adjusted EBITDA margins at 45.1%, a 50 basis point increase from the previous year [10][16] - Adjusted EPS was flat at $0.13 per share compared to Q1 2023, while GAAP net income increased to $6 million or $0.02 per diluted share from $3 million or $0.01 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sterigenics, the largest segment, reported a revenue growth of 4.1% to $166 million, driven by favorable pricing and foreign currency impacts, despite unfavorable volume and mix [5][18] - Nordion experienced a significant revenue increase of 181% to $24 million, attributed to the timing of Cobalt-60 harvest delivery schedules [11][19] - Nelson Labs saw a revenue growth of 10.8% to $58 million, supported by strong performance in expert advisory services, although core lab testing volumes declined year-over-year [11][19] Market Data and Key Metrics Changes - The company noted that the sterilization industry faces challenges due to updated EPA emission standards, but believes its investments will allow compliance without significant additional capital expenditures [7][12] - The overall market for ethylene oxide sterilization remains tight, with over 50% of medical devices sterilized using this method, indicating ongoing demand despite regulatory pressures [57] Company Strategy and Development Direction - The company reaffirmed its 2024 outlook, expecting revenue and adjusted EBITDA growth in the range of 4% to 6% compared to 2023, with variability driven by market recovery timing [6][22] - Capital expenditures are focused on Sterigenics' capacity expansions and enhancements, with a total of $205 million to $225 million expected for the year [25][21] - The company aims to maintain a net leverage ratio within the target range of 2 to 4 times, finishing Q1 2024 at 3.8 times [21][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in slight improvements in volumes for both Nelson Labs and Sterigenics as the year progresses, with stabilization noted in certain categories [30][31] - The company is actively monitoring litigation related to ethylene oxide emissions, asserting confidence in its compliance and operational safety [12][34] - Management highlighted the importance of maintaining operational excellence and driving capacity from existing assets, especially in a tight market [59] Other Important Information - The company reported a strong liquidity position with over $660 million available, including more than $260 million in unrestricted cash [20] - Interest expenses increased to $42 million due to higher rates and a full quarter of a $500 million term loan [17] Q&A Session Summary Question: Volume trends and expectations for Q2 and Q3 - Management expects slight improvements in volumes for both Nelson Labs and Sterigenics, with stabilization noted in certain categories [30] Question: Updates on litigation related to ethylene oxide - Management stated it is early in the litigation process but remains confident in its defense and compliance with regulations [34] Question: Final NESHAP requirements and facility enhancements - Management indicated that approximately $40 million will be spent on facility enhancements this year, with significant progress already made [38] Question: SG&A expenses and run rate expectations - Management noted that there are no significant concerns regarding SG&A increases, attributing them to normal merit increases and variable compensation [39] Question: RCA dilution and margin expectations for Nelson - Management confirmed that while RCA has been a drag on mix, margins are improving, and they expect to approach mid-30% margins in the long term [45] Question: Capacity expansions and timelines - Management provided updates on three capacity expansions, with one going live soon and the others expected in late 2024 and 2025 [68]
Sotera Health(SHC) - 2024 Q1 - Earnings Call Presentation
2024-05-03 11:33
3 Comprehensive end-to-end services offered (1) Based on revenue for the year ended December 31, 2023. • Nordion supplies high-specific activity (HSA) Cobalt-60 to use in Gamma Knife® radiosurgery for the precision treatment of brain cancer Adjusted EPS(1) $0.00 to $0.13 Business & Market Update Financial Performance • Top- and bottom-line growth compared to Q1 2023 • Completed annual customer satisfaction survey and received continued strong results • NESHAP regulations finalized in March 2024 7 2023 2024 ...
Sotera Health(SHC) - 2024 Q1 - Quarterly Report
2024-05-02 20:40
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39729 SOTERA HEALTH COMPANY (Exact name of registrant as specified in its charter) If an emerging growth compa ...
Sotera Health(SHC) - 2024 Q1 - Quarterly Results
2024-05-02 11:14
Exhibit 99.1 Sterigenics For first-quarter 2024, net revenues were $166 million, an increase of 4.1% compared to the first quarter a year ago. Segment income was $86 million, an increase of 3.6%. Net revenue growth for first-quarter 2024 was driven by favorable pricing and changes in foreign currency exchange rates, partially offset by unfavorable volume and mix. Sotera Health Reports First-Quarter 2024 Results CLEVELAND, OH, May 2, 2024 – Sotera Health Company ("Sotera Health" or the "Company") (Nasdaq: SH ...
Sotera Health(SHC) - 2023 Q4 - Earnings Call Transcript
2024-03-03 05:15
Sotera Health Company (NASDAQ:SHC) Q4 2023 Earnings Conference Call February 27, 2024 9:00 AM ET Company Participants Jason Peterson - Vice President and Treasurer Michael Petras - Chairman and CEO Jon Lyons - Chief Financial Officer Conference Call Participants Sean Dodge - RBC Capital Dave Windley - Jefferies Luke Sergott - Barclays Brett Fishbin - KeyBanc Casey Woodring - JPMorgan Patrick Donnelly - Citi Michael Polark - Wolfe Research Operator Good morning and welcome to the Sotera Health Fourth Quarter ...
Sotera Health(SHC) - 2023 Q4 - Annual Report
2024-02-27 21:34
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-39729 SOTERA HEALTH COMPANY (Exact name of registrant as specified in its charter) Delaware 47-3531161 (State or other jurisdiction of incorporation ...
Sotera Health(SHC) - 2023 Q3 - Earnings Call Transcript
2023-11-04 13:15
Sotera Health Company (NASDAQ:SHC) Q3 2023 Earnings Conference Call November 1, 2023 9:00 AM ET Corporate Participants Jason Peterson - Vice President and Treasurer Michael Petras - Chairman and Chief Executive Officer Jonathan Lyons - Senior Vice President and Chief Financial Officer Conference Call Participants Sean Dodge - RBC Capital Markets Patrick Donnelly - Citi Michael Polark - Wolfe Research Casey Woodring - JPMorgan Operator Good morning and welcome to the Sotera Health Third Quarter 2023 Conferen ...
Sotera Health(SHC) - 2023 Q3 - Quarterly Report
2023-11-01 20:53
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company ...
Sotera Health(SHC) - 2023 Q2 - Earnings Call Transcript
2023-08-06 17:07
Sotera Health Company (NASDAQ:SHC) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Corporate Participants Jason Peterson - Vice President and Treasurer Michael Petras - Chairman and Chief Executive Officer Jonathan Lyons - Chief Financial Officer Conference Call Participants Sean Dodge - RBC Capital David Windley - Jefferies Luke Sergott - Barclays Casey Woodring - JPMorgan Matthew Mishan - KeyBanc Michael Polark - Wolfe Research Operator Good morning, and welcome to the Sotera Health Second Quar ...
Sotera Health(SHC) - 2023 Q2 - Quarterly Report
2023-08-03 20:11
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39729 SOTERA HEALTH COMPANY (Exact name of registrant as specified in its charter) | Delaware | | 47-3531161 | ...