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Sotera Health
🇺🇸 NASDAQ:SHC
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Jun 30, 2022

Sotera Health Q2 2022 Earnings Report

Sotera Health reported an increase in net revenues and adjusted EBITDA compared to the same period last year, while narrowing its full-year outlook.

Key Takeaways

Sotera Health's Q2 2022 net revenues increased by 6% to $267 million, and net income was $30 million, or $0.11 per diluted share. Adjusted EBITDA increased by 1% to $136 million, and Adjusted EPS increased to $0.27. The company narrowed its full-year 2022 net revenues outlook to $1.0 to $1.022 billion and Adjusted EBITDA outlook to $515 to $525 million.

Net revenues for Q2 2022 increased by 6% compared to Q2 2021, reaching $267 million.

Net income for Q2 2022 was $30 million, or $0.11 per diluted share, compared to $43 million, or $0.15 per diluted share in Q2 2021.

Adjusted EBITDA for Q2 2022 increased by 1% compared to Q2 2021, totaling $136 million.

Adjusted EPS for Q2 2022 increased by $0.01 to $0.27, compared to Q2 2021.

Total Revenue
$267M
Previous year: $252M
+5.8%
EPS
$0.27
Previous year: $0.26
+3.8%
Gross Profit
$150M
Previous year: $144M
+4.6%
Cash and Equivalents
$141M
Previous year: $156M
-9.7%
Free Cash Flow
$22.2M
Previous year: $54.3M
-59.1%
Total Assets
$2.84B
Previous year: $2.85B
-0.4%

Sotera Health

Sotera Health

Sotera Health Revenue by Segment

Forward Guidance

Sotera Health narrowed its full-year 2022 outlook for net revenues to a range of $1.0 to $1.022 billion and adjusted EBITDA to a range of $515 to $525 million.

Positive Outlook

  • Net revenues are expected to be in the range of $1.0 to $1.022 billion, representing growth of approximately 7% to 10% compared to the prior year.
  • Adjusted EBITDA is projected to be in the range of $515 to $525 million, representing growth of approximately 7% to 9% compared to the prior year.
  • Adjusted EPS is expected to be in the range of $0.93 to $0.97, representing growth of 6% to 10% versus the prior year.
  • The tax rate applicable to Adjusted Net Income is anticipated to be in the range of 29% to 30%.
  • The company anticipates a fully diluted share count in the range of 280 million to 282 million shares on a weighted-average basis.

Challenges Ahead

  • The outlook is subject to assumptions regarding supply chain continuity, particularly for EO and Co-60.
  • The outlook is subject to the impact of inflationary trends, including their impact on energy prices and the supply of labor.
  • The outlook is subject to the impact of the COVID-19 pandemic, including the rate of recoveries of elective procedures and new product development testing.
  • The outlook assumes that exchange rates as of second-quarter 2022 remain constant for the remainder of 2022.
  • The outlook is subject to risks and uncertainties, including changes in industry trends and environmental, health and safety regulations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Sotera Health