Sotera Health Q4 2022 Earnings Report
Key Takeaways
Sotera Health reported a 4.3% increase in net revenues to $252 million for Q4 2022 compared to $241 million in Q4 2021. However, the company experienced a net loss of $320 million, or $1.14 per diluted share, due to a $408 million legal reserve. Adjusted EBITDA increased by 4.0% to $130 million, and Adjusted EPS was $0.25, an increase of $0.02 per diluted share.
Net revenues increased by 4.3% to $252 million compared to Q4 2021.
Net loss was $320 million, or $1.14 per diluted share, including a $408 million legal reserve.
Adjusted EBITDA increased by 4.0% to $130 million compared to the prior-year quarter.
Adjusted EPS was $0.25, an increase of $0.02 per diluted share compared to Q4 2021.
Sotera Health
Sotera Health
Sotera Health Revenue by Segment
Forward Guidance
Sotera Health provided its full-year 2023 outlook, including 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 in the range of $1.055 to $1.090 billion, representing growth of approximately 5% to 9%, compared to the prior year.
- Adjusted EBITDA in the range of $530 to $550 million, representing growth of approximately 5% to 9%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income in the range of 30% to 33%.
- A fully diluted share count in the range of 283 to 285 million shares on a weighted-average basis.
- 2023 year-end Net Leverage Ratio to be within the long-term stated range of 2.0x - 4.0x.
Challenges Ahead
- Adjusted EPS in the range of $0.78 to $0.86, representing decline of 10% to 19% versus the prior year, primarily driven by increased interest expense and an increased tax rate.
- Capital expenditures in the range of $185 to $215 million.
- Uncertainties regarding supply chain continuity, particularly for the supply of ethylene oxide (“EO”) and cobalt-60 (“Co-60”).
- Impact of inflationary trends including their impact on energy prices and the supply of labor.
- Expectation that exchange rates as of December 31, 2022 remain relatively constant for the remainder of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income