[Part I—Financial Information](index=3&type=section&id=Part%20I%E2%80%94Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited consolidated financial statements for the three and six months ended September 30, 2023 Consolidated Balance Sheet Highlights (Unaudited) | Account | September 30, 2023 ($ in thousands) | March 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$11,280,638** | **$10,821,839** | | Total Current Assets | $2,173,977 | $2,011,442 | | Goodwill | $4,040,245 | $3,879,219 | | **Total Liabilities** | **$5,091,470** | **$4,734,667** | | Total Current Liabilities | $873,115 | $861,844 | | Long-term Indebtedness | $3,366,241 | $3,018,655 | | **Total Equity** | **$6,189,168** | **$6,087,172** | Consolidated Statements of Income Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2023 ($ in thousands) | Three Months Ended Sep 30, 2022 ($ in thousands) | Six Months Ended Sep 30, 2023 ($ in thousands) | Six Months Ended Sep 30, 2022 ($ in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,342,360** | **$1,200,517** | **$2,626,902** | **$2,357,008** | | Gross Profit | $593,529 | $532,335 | $1,166,990 | $1,050,133 | | Income (Loss) from Operations | $185,857 | $(306,415) | $374,739 | $(148,020) | | **Net Income (Loss) Attributable to Shareholders** | **$115,319** | **$(315,285)** | **$238,873** | **$(204,023)** | | Diluted EPS | $1.16 | $(3.15) | $2.41 | $(2.04) | Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric | Six Months Ended Sep 30, 2023 ($ in thousands) | Six Months Ended Sep 30, 2022 ($ in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$427,224** | **$335,570** | | Net cash used in investing activities | $(672,833) | $(207,342) | | Net cash provided by (used in) financing activities | $256,577 | $(186,362) | | Increase (decrease) in cash and cash equivalents | $5,400 | $(90,061) | [Note 2. Business Acquisitions](index=13&type=section&id=Note%202.%20Business%20Acquisitions) STERIS acquired surgical and sterilization assets from Becton, Dickinson and Company (BD) for $539.8 million - The company purchased assets from BD for **$539.8 million**, which was financed through its existing credit facility[51](index=51&type=chunk)[52](index=52&type=chunk) - Acquisition and integration expenses totaled **$16.0 million** for the three months and **$18.7 million** for the six months ended September 30, 2023, primarily due to the BD acquisition[54](index=54&type=chunk) [Note 9. Business Segment Information](index=18&type=section&id=Note%209.%20Business%20Segment%20Information) The Healthcare segment was the largest contributor to revenue and operating income, while the Dental segment saw a revenue decline Revenues by Segment (in thousands) | Segment | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Healthcare | $870,056 | $732,813 | $1,688,930 | $1,431,339 | | AST | $235,053 | $232,358 | $468,152 | $453,269 | | Life Sciences | $133,095 | $125,768 | $264,508 | $257,975 | | Dental | $104,156 | $109,578 | $205,312 | $214,425 | | **Total** | **$1,342,360** | **$1,200,517** | **$2,626,902** | **$2,357,008** | Operating Income by Segment (in thousands) | Segment | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Healthcare | $204,054 | $165,337 | $402,236 | $321,834 | | AST | $110,783 | $110,384 | $220,373 | $219,699 | | Life Sciences | $50,284 | $48,619 | $100,125 | $103,924 | | Dental | $24,516 | $28,059 | $46,555 | $47,655 | - The Dental segment relies on three key customers who collectively accounted for approximately **43.8% of its revenue** in the three months ended September 30, 2023[83](index=83&type=chunk) [Note 17. Goodwill](index=28&type=section&id=Note%2017.%20Goodwill) Goodwill increased to $4.04 billion due to the BD acquisition, with no impairment recorded in the current period - Goodwill increased from **$3.88 billion** at March 31, 2023, to **$4.04 billion** at September 30, 2023, mainly from **$202.4 million** in goodwill acquired in the BD transaction[125](index=125&type=chunk) - **No goodwill impairment** was indicated for any segment during the period ended September 30, 2023[126](index=126&type=chunk) - In the prior year period, the company recorded a goodwill impairment charge of **$490.6 million** related to the Dental segment[127](index=127&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue increased 11.8% in Q2 FY24, driven by organic growth and the BD acquisition, while operating income rose significantly absent the prior year's goodwill impairment [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q2 FY24 revenues grew 11.8% to $1.34 billion, while operating expenses decreased significantly due to the absence of a prior-year goodwill impairment charge Q2 Revenue Growth by Type | Revenue Type | Q2 FY24 ($ in thousands) | Q2 FY23 ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | Service | $580,024 | $534,123 | 8.6% | | Consumable | $470,239 | $413,411 | 13.7% | | Capital Equipment | $292,097 | $252,983 | 15.5% | | **Total** | **$1,342,360** | **$1,200,517** | **11.8%** | - The gross profit percentage for Q2 FY24 was **44.2%**, a slight decrease from **44.3%** in Q2 FY23, as inflation and productivity costs offset pricing benefits[165](index=165&type=chunk) - SG&A expenses increased **17.8%** in Q2 FY24, primarily due to increased compensation, professional fees, and bad debt expense[167](index=167&type=chunk) [Business Segment Results of Operations](index=36&type=section&id=Business%20Segment%20Results%20of%20Operations) The Healthcare segment's revenue grew 18.7% driven by the BD acquisition, while the Dental segment's revenue declined 4.9% due to customer destocking - Healthcare Q2 revenue increased **18.7%** (**13.9% constant currency organic growth**) due to higher volume, pricing, and the BD acquisition, with operating margin increasing to **23.5%**[179](index=179&type=chunk)[181](index=181&type=chunk)[189](index=189&type=chunk) - AST Q2 revenue grew **1.2%** (**-1.0% constant currency organic growth**), impacted by customer inventory management, with operating margin slightly decreasing to **47.1%**[179](index=179&type=chunk)[183](index=183&type=chunk)[190](index=190&type=chunk) - Dental Q2 revenue decreased **4.9%** (**-5.7% constant currency organic growth**) due to lower volume from customer inventory destocking, with operating margin declining to **23.5%**[179](index=179&type=chunk)[186](index=186&type=chunk)[192](index=192&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operations and free cash flow increased significantly, while the debt-to-total capital ratio rose to 35.7% following the BD acquisition Key Liquidity Metrics (Six Months Ended Sep 30) | Metric ($ in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $427,224 | $335,570 | | Net cash used in investing activities | $(672,833) | $(207,342) | | Free cash flow | $284,691 | $138,192 | - The increase in cash from operations was primarily due to a decline in cash used for compensation-related payments, offset by continued investment in inventory[193](index=193&type=chunk) - The debt-to-total capital ratio increased to **35.7%** at September 30, 2023, compared to **34.3%** at September 30, 2022[193](index=193&type=chunk)[198](index=198&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to interest rate, currency, and commodity risks has not materially changed, and it continues to use derivatives for hedging - The company's exposures to interest rate, currency, and commodity risks have **not changed materially** since March 31, 2023[219](index=219&type=chunk) - To manage currency risk, the company held forward contracts to buy British pounds and Mexican pesos, and to sell Australian dollars, Canadian dollars, and euros as of September 30, 2023[221](index=221&type=chunk) - To hedge against commodity price changes, the company held swap contracts to buy **376.5 thousand pounds of nickel** as of September 30, 2023[223](index=223&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The PEO and PFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[224](index=224&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[225](index=225&type=chunk) [Part II—Other Information](index=46&type=section&id=Part%20II%E2%80%94Other%20Information) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to other filings for information regarding the company's legal proceedings - Information regarding legal proceedings is incorporated by reference from Note 8 of the consolidated financial statements and the company's most recent Form 10-K[228](index=228&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the company's Annual Report on Form 10-K for a complete discussion of risk factors - A complete discussion of the Company's risk factors is included in the Annual Report on Form 10-K for the fiscal year ended March 31, 2023[229](index=229&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use or Proceeds, and Issuer Purchases of Equity Securities](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20or%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) A new $500 million share repurchase program was authorized, but no repurchases have been made under it as of September 30, 2023 - A new share repurchase program for up to **$500 million** was authorized on May 3, 2023[231](index=231&type=chunk) - As of September 30, 2023, **no shares have been repurchased** under the new $500 million program[231](index=231&type=chunk) - During the first six months of fiscal 2024, the company obtained **57,161 ordinary shares** for an aggregate amount of **$9.2 million** related to share-based compensation awards[234](index=234&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the period - **No directors or officers** adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the six months ended September 30, 2023[235](index=235&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and interactive data files - The report includes required exhibits such as officer certifications (31.1, 31.2, 32.1) and Inline XBRL documents (101 series)[238](index=238&type=chunk)

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q 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 001-38848 STERIS plc (Exact name of registrant as specified in its charter) (State or other jurisd ...

STERIS plc (NYSE:STE) Q1 2024 Earnings Conference Call August 2, 2023 9:00 AM ET Company Participants Julie Winter - VP, IR & Corporate Communications Michael Tokich - SVP & CFO Daniel Carestio - President, CEO & Director Conference Call Participants Matthew Mishan - KeyBanc Capital Markets David Turkaly - JMP Securities Michael Matson - Needham & Company Patrick Wood - Morgan Stanley Michael Polark - Wolfe Research Jason Bednar - Piper Sandler & Co. Operator Good day, and welcome to the STERIS plc First Qu ...

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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38848 STERIS plc (Exact name of registrant as specified in its charter) Ireland 98-1455064 (State or other jurisdiction ...

STERIS plc (NYSE:STE) Q4 2023 Earnings Conference Call May 11, 2023 9:00 AM ET Company Participants Julie Winter - IR Daniel Carestio - President and CEO Michael Tokich - SVP and CFO Conference Call Participants Matthew Mishan - KeyBanc Dave Turkaly - JMP Securities Mike Matson - Needham & Company Michael Polark - Wolfe Research Jason Bednar - Piper Sandler Operator Good morning and welcome to the STERIS plc Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please also note, this event i ...

STERIS plc (NYSE:STE) Q3 2023 Earnings Conference Call February 9, 2023 10:00 AM ET Company Participants Julie Winter - IR Daniel Carestio - President and CEO Michael Tokich - SVP and CFO Conference Call Participants Dave Turkaly - JMP Securities Matthew Mishan - KeyBanc Jacob Johnson - Stephens Mike Matson - Needham & Company Jason Bednar - Piper Sandler Michael Polark - Wolfe Research Matthew Mishan - KeyBanc Operator Good day, everyone, and welcome to the STERIS plc Third Quarter 2023 Conference Call. [O ...

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 December 31, 2022 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 001-38848 STERIS plc (Exact name of registrant as specified in its charter) (State or other ju ...

STERIS plc (NYSE:STE) Q2 2023 Results Conference Call November 10, 2022 10:00 AM ET Company Participants Julie Winter - IR Daniel Carestio - President, CEO Michael Tokich - SVP, CFO Conference Call Participants Matthew Mishan - KeyBanc Mike Matson - Needham & Company Jason Bednar - Piper Sandler Jacob Johnson - Stephens Michael Polark - Wolfe Research Dave Turkaly - JMP Securities Operator Good morning, everyone, and welcome to the STERIS plc Second Quarter 2023 Conference Call. [Operator Instructions] Plea ...

Financial Performance - Revenues increased 0.3% to $1,200.5 million for the three months ended September 30, 2022, and increased 8.8% to $2,357.0 million for the six months ended September 30, 2022, compared to the same periods in the prior year [160]. - Gross profit for the three months ended September 30, 2022, was $532.3 million, a 10.8% increase from $480.3 million in the prior year, with a gross profit percentage of 44.3% [180]. - Operating loss for the second quarter of fiscal 2023 was $(306.4) million, compared to operating income of $116.5 million for the same period in fiscal 2022 [162]. - Total revenues for the three months ended September 30, 2022, increased by 0.3% to $1,200.5 million compared to $1,197.0 million for the same period in the prior year [170]. - Total revenues for the six months ended September 30, 2022, increased by 8.8% to $2,357.0 million compared to $2,165.4 million for the same period in the prior year, with organic growth in multiple segments and an additional $166.2 million from the Cantel acquisition [175]. Segment Performance - Service revenues rose by 4.4% to $534.1 million for the three months ended September 30, 2022, driven by growth in the Healthcare and Applied Sterilization Technologies segments [171]. - Consumable revenues decreased by 7.7% to $413.4 million for the three months ended September 30, 2022, reflecting declines in the Healthcare, Life Sciences, and Dental segments [171]. - Capital equipment revenues increased by 6.5% to $253.0 million for the three months ended September 30, 2022, primarily due to growth in the Healthcare segment [171]. - Healthcare segment revenues decreased by 1.5% to $732.8 million for the three months ended September 30, 2022, compared to $744.1 million in the same prior year period [201]. - Applied Sterilization Technologies segment revenues increased by 13.4% to $232.4 million for the three months ended September 30, 2022, compared to $204.9 million in the prior year [203]. - Life Sciences revenues decreased by 5.0% to $125.8 million for the three months ended September 30, 2022, compared to $132.3 million in the prior year [204]. - Dental segment revenues for the three months ended September 30, 2022, decreased to $109.6 million from $115.6 million in the prior year [207]. Cash Flow and Capital Management - Cash flows from operations were $335.6 million in the first half of fiscal 2023, compared to $268.8 million in the first half of fiscal 2022 [163]. - Free cash flow was $138.2 million in the first half of fiscal 2023, slightly up from $135.8 million in the first half of fiscal 2022 [163]. - Capital expenditures were $198.7 million for the first six months of fiscal 2023, up from $133.4 million during the same prior year period [214]. - Total cash dividends paid to ordinary shareholders were $90.0 million, or $0.90 per outstanding share, in the first six months of fiscal 2023, compared to $77.1 million, or $0.83 per outstanding share, in the first six months of fiscal 2022 [219]. Debt and Financial Ratios - The debt-to-total capital ratio was 34.3% at September 30, 2022, compared to 32.1% at March 31, 2022 [164]. - The debt-to-total capital ratio was 34.3% at September 30, 2022, compared to 34.5% at September 30, 2021 [217]. Impairments and Expenses - A goodwill impairment loss of $490.6 million was recognized in connection with the Cantel acquisition [155]. - Goodwill impairment loss of $490.6 million was recorded during the second quarter of fiscal 2023 due to an interim assessment of the fair value of the Dental segment [186]. - Research and development expenses increased by 32.4% for the three months ended September 30, 2022, largely due to the addition of Cantel, focusing on new product development and technological innovations [186]. - Operating expenses for the three months ended September 30, 2022, totaled $838.8 million, a 130.5% increase from the prior year, primarily due to the goodwill impairment loss [183]. Tax and Non-Operating Items - Income tax expense for the three months ended September 30, 2022, was $19.98 million, compared to a benefit of $(17.83) million in the prior year, reflecting a change of $(37.81) million [190]. - Non-operating expenses decreased by $249,000 to $26.6 million for the three months ended September 30, 2022, compared to $26.9 million in the prior year [187]. - Interest expense increased by $3.1 million and $3.9 million during the second quarter and first half of fiscal 2023, primarily due to higher interest rates on floating rate debt [187]. Operational Challenges - Approximately $70 million in capital equipment shipments were delayed in the second quarter of fiscal 2023 due to supply chain disruptions [157]. - The company anticipates potential impacts from the COVID-19 pandemic and other market conditions on its operations and financial results [234]. Legal and Compliance - The company is involved in various legal proceedings and claims, which are considered normal for its size and complexity [229]. - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period [241]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2022, that materially affected the company's reporting [242].

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) Ireland 98-1455064 (State or other jurisdiction of incorporation o ...