Sotera Health Reports Second-Quarter and First-Half 2024 Results

Core Insights - Sotera Health Company reported Q2 2024 net revenues of $277 million, an increase of 8% compared to Q2 2023, with a constant currency increase of 8.8% [2][3] - The net income for Q2 2024 was $9 million, or $0.03 per diluted share, down from $24 million, or $0.08 per diluted share in Q2 2023, primarily due to refinancing charges [2][3] - Adjusted EBITDA for Q2 2024 was $137 million, a 6.9% increase from $128 million in Q2 2023, while Adjusted EPS decreased by $0.01 to $0.19 [2][3] Financial Performance - For the first six months of 2024, net revenues rose 10.3% to $525 million from $476 million in the same period of 2023, with a constant currency increase of approximately 10.2% [3] - Net income for the first half of 2024 was $15 million, or $0.05 per diluted share, compared to $26 million, or $0.09 per diluted share in the prior year [3] - Adjusted EBITDA for the first half of 2024 increased by 9.8% to $249 million, while Adjusted EPS decreased by $0.01 to $0.32 [3] Business Segment Review - Sterigenics reported Q2 2024 net revenues of $176 million, a 5.9% increase year-over-year, with segment income rising 5.8% to $97 million [4][5] - Nordion experienced significant growth, with Q2 2024 net revenues of $41 million, a 29% increase, and segment income up 31.7% to $23 million [6][7] - Nelson Labs saw Q2 2024 net revenues of $59 million, a 4% increase, but segment income decreased by 11% to $17 million [8][9] Debt and Liquidity - As of June 30, 2024, Sotera Health had total debt of $2.3 billion and $246 million in unrestricted cash, down from $296 million at the end of 2023 [10][28] - The company successfully refinanced its debt structure, extending maturities to 2031 [11] - The Net Leverage Ratio as of June 30, 2024, was 3.8x [10][37] 2024 Outlook - Sotera Health reaffirmed its 2024 outlook, expecting net revenues and Adjusted EBITDA growth in the range of 4% to 6% [12][13] - Interest expense is projected to be between $165 million and $175 million, with Adjusted EPS expected in the range of $0.67 to $0.75 [12][13]