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Mar 31, 2022
Sotera Health Q1 2022 Earnings Report
Sotera Health's first-quarter performance in 2022 reflected double-digit top-line and bottom-line growth, driven by volume, mix, and pricing, while reaffirming the 2022 outlook.
Key Takeaways
Sotera Health reported a 12% increase in net revenues to $237 million for Q1 2022, with net income rising to $31 million, or $0.11 per diluted share. The company reaffirmed its 2022 financial outlook, focusing on execution and capacity building to meet future demand.
Net revenues for Q1 2022 reached $237 million, a 12% increase compared to Q1 2021.
Net income for Q1 2022 was $31 million, or $0.11 per diluted share, compared to $11 million, or $0.04 per diluted share in Q1 2021.
Adjusted EBITDA for Q1 2022 increased by 10% to $115 million compared to the prior-year quarter.
The company reaffirmed its 2022 financial outlook, initially provided on March 1, 2022.
Revenue by Segment
Forward Guidance
Sotera Health reaffirmed its 2022 outlook, with net revenues expected to be in the range of $1.0 billion to $1.03 billion, representing growth of approximately 7% to 11%. Adjusted EBITDA is projected to be between $515 million and $535 million, reflecting growth of approximately 7% to 11%. Adjusted EPS is anticipated to be in the range of $0.93 to $0.99, up 6% to 13% versus the prior year.
Positive Outlook
- Net revenues in the range of $1.0 billion to $1.03 billion, representing growth of approximately 7% to 11%, compared to the prior year.
- Adjusted EBITDA in the range of $515 million to $535 million, representing growth of approximately 7% to 11%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income in the range of 29% to 30%.
- Adjusted EPS in the range of $0.93 to $0.99, representing growth of 6% to 13% versus the prior year.
- Net leverage reduction of approximately 1⁄2 of a turn.
Challenges Ahead
- Supply chain continuity, particularly for the supply of ethylene oxide (“EO”) and cobalt-60 (“Co-60”).
- The impact of inflationary trends including the impact on the supply of labor.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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