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Dec 31, 2022
Sotera Health Q4 2022 Earnings Report
Sotera Health's Q4 2022 results reflected revenue increase and a net loss due to a legal reserve, while adjusted EBITDA and EPS improved.
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
Revenue by Segment
Sterigenics Revenue
CapyFin.comNordion Revenue
CapyFin.comNelson Labs Revenue
CapyFin.com 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