Sotera Health Q4 2020 Earnings Report
Key Takeaways
Sotera Health reported a 12% increase in Q4 2020 net revenues to $217 million compared to Q4 2019. The company's net loss was $44 million, or $0.17 per diluted share, which included a $44 million charge related to debt paydown. Adjusted EBITDA increased by 20% to $113 million, and Adjusted EPS was $0.09, an increase of $0.04 per diluted share.
Q4 2020 net revenues increased by 12% to $217 million compared to Q4 2019.
Net loss for Q4 2020 was $44 million, or $0.17 per diluted share, including a $44 million debt extinguishment charge.
Adjusted EBITDA for Q4 2020 increased by 20% to $113 million compared to the prior-year quarter.
Adjusted EPS for Q4 2020 was $0.09, an increase of $0.04 per diluted share compared to Q4 2019.
Sotera Health
Sotera Health
Sotera Health Revenue by Segment
Forward Guidance
Sotera Health provided its full-year 2021 outlook, including net revenue growth of 9% to 12% and Adjusted EBITDA growth of 11% to 16%.
Positive Outlook
- Net revenues in the range of $890 million to $920 million, representing growth of approximately 9% to 12%, compared to the prior year.
- Adjusted EBITDA in the range of $465 million to $485 million, representing growth of approximately 11% to 16%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income of approximately 28%.
- Adjusted EPS in the range of $0.78 to $0.86.
- Net leverage reduction of approximately ¾ of a turn.
Challenges Ahead
- The guidance provided above contains a number of assumptions, including, among others, the company’s current expectations regarding the impact of the COVID-19 pandemic including the rate of recoveries of elective procedures and new product development testing
- The guidance provided above contains a number of assumptions, including that exchange rates remain constant for the full year 2021.
- The company does not provide a reconciliation of the forward-looking Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS guidance to the most directly comparable GAAP measure
- This is because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain items, including, among others, uncertainties caused by the global COVID-19 pandemic, changes to the regulatory landscape, restructuring items and certain fair value measurements, all of which are potential adjustments for future earnings.
- The variability of these items could have a potentially unpredictable, and a potentially significant, impact on our future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income