Loading...
•
Mar 31, 2023
Sotera Health Q1 2023 Earnings Report
Sotera Health's first-quarter results were announced, revealing a decrease in net revenues and net income compared to the same quarter last year, primarily due to the timing of Nordion Cobalt-60 harvest schedules.
Key Takeaways
Sotera Health reported a decrease in first-quarter net revenues by 6.8% to $221 million, primarily driven by the anticipated timing of Nordion Cobalt-60 harvest schedules. Net income decreased to $3 million, or $0.01 per diluted share, compared to $31 million, or $0.11 per diluted share in the first quarter of the previous year. The company reaffirms its 2023 outlook, expecting revenue and adjusted EBITDA growth of 5% to 9%.
Net revenues decreased by 7% compared to Q1 2022, totaling $221 million, mainly due to Nordion Cobalt-60 harvest schedule timing.
Net income declined to $3 million, or $0.01 per diluted share, compared to $31 million, or $0.11 per diluted share in Q1 2022.
Adjusted EBITDA decreased by 15% compared to Q1 2022, amounting to $98 million, influenced by Nordion Cobalt-60 harvest schedule timing.
Adjusted EPS decreased to $0.13 per diluted share, a $0.09 decrease compared to Q1 2022.
Sotera Health
Sotera Health
Sotera Health Revenue by Segment
Revenue by Segment
Sterigenics Revenue
CapyFin.comNordion Revenue
CapyFin.comNelson Labs Revenue
CapyFin.com Forward Guidance
Sotera Health reaffirms its 2023 outlook, expecting net revenues in the range of $1.055 to $1.090 billion and Adjusted EBITDA in the range of $530 to $550 million.
Positive Outlook
- Net revenues are expected to be in the range of $1.055 to $1.090 billion, representing growth of approximately 5% to 9% compared to the prior year.
- Adjusted EBITDA is projected to be in the range of $530 to $550 million, indicating growth of approximately 5% to 9% compared to the prior year.
- The tax rate applicable to Adjusted Net Income is expected to be in the range of 30% to 33%.
- Capital expenditures are anticipated to be in the range of $185 to $215 million.
- The 2023 year-end Net Leverage Ratio is expected to be within the long-term stated range of 2.0x - 4.0x.
Challenges Ahead
- Adjusted EPS is expected to be in the range of $0.78 to $0.86, representing a decline of 10% to 19% versus the prior year.
- The decline in Adjusted EPS is primarily driven by increased interest expense and an increased tax rate.
- The outlook contains assumptions regarding supply chain continuity, particularly for the supply of EO and Co-60.
- The outlook is based on current plans and expectations and is subject to a number of known and unknown risks and uncertainties.
- The Company cannot reconcile its expected Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Net Leverage Ratio without unreasonable effort because certain items that impact net income, earnings per share and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income