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Exhibit 99.1

STERIS CORPORATION

NEWS ANNOUNCEMENT

FOR IMMEDIATE RELEASE

STERIS CORPORATION ANNOUNCES FISCAL 2013 THIRD QUARTER RESULTS

•    Revenue growth of 7%, with growth in all three segments

•    Earnings outlook increased to upper end of range

•    Board approves dividend of $0.19 per share

Mentor, Ohio (February 6, 2013)—STERIS Corporation (NYSE: STE) today announced financial results for its fiscal 2013 third quarter ended December 31, 2012. Fiscal 2013 third quarter revenue increased to $380.4 million compared with $355.2 million in the third quarter of fiscal 2012, with growth in all three business segments. Net income increased to $48.1 million, or $0.82 per diluted share, compared with net income of $33.6 million, or $0.58 per diluted share in the third quarter of fiscal 2012.

Adjusted net income for the third quarter of fiscal 2013 was $34.3 million, or $0.58 per diluted share compared with adjusted net income of $35.3 million, or $0.60 per diluted share in the prior year period. Adjusted net income and adjusted diluted earnings per share exclude amortization of purchased intangible assets and acquisition related transaction and integration costs. Both measures also exclude a favorable $15.8 million pre-tax adjustment attributable to the SYSTEM 1 class action settlement liability as well as an $8.1 million tax benefit associated with our prior European restructuring effort, as well as certain other items. Please see the attached table for comparative analysis of these “non-GAAP financial measures” to as reported results.

“We are pleased with our performance in the quarter, as our growth strategies are beginning to show in our results,” said Walt Rosebrough, President and Chief Executive Officer of STERIS Corporation. “The recent acquisitions are contributing nicely to our performance, and our integration plans are on-track. With organic revenue growth in the quarter, excluding SYSTEM 1E, and strong capital equipment backlog in both Healthcare and Life Sciences, we are heading into the fourth quarter with good momentum. As a result, we are increasing our expectations for revenue growth for fiscal 2013, and moving our adjusted diluted earnings per share outlook to $2.25-$2.35, which is the high end of our previous range.”


STERIS Corporation

News Announcement

Page 2

 

Segment Results

Healthcare revenue in the quarter increased 5% to $271.1 million compared with $259.1 million in the same period last year. Contributing to the quarter, consumable revenue grew 37% and service revenue grew 28%, while capital equipment revenue declined 17%, primarily due to the ramp-up of SYSTEM 1E unit sales during the prior year. Excluding SYSTEM 1E unit sales, capital equipment revenue was flat in the U.S. and declined internationally. The performance of the Healthcare consumable franchise reflected a combination of the acquisition of US Endoscopy and growth in other consumables offset by expected declines in S20 sterilant. Service revenue growth reflects the acquisitions of Spectrum and TRE.

As reported, Healthcare segment operating income was $45.5 million compared with $34.0 million in last year’s third quarter. Adjusted segment operating income was $35.7 million in the third quarter of fiscal 2013 compared with $36.1 million in the same period last year. Please see the attached schedules for additional information, including reconciliations from these “non-GAAP financial measures” to as reported results. The decline in adjusted segment operating income year-over-year was the result of the expected decline in both S20 sterilant and SYSTEM 1E unit sales in the U.S.

Life Sciences third quarter revenue increased 16% to $65.0 million compared with $55.9 million in the third quarter of fiscal 2012. Contributing to growth, capital equipment increased 32%, consumable revenue grew 8% and service revenue increased 6%. Life Sciences operating income was $12.8 million compared with $10.3 million in the same period last year, driven primarily by the volume increases.

Fiscal 2013 third quarter revenue for Isomedix Services was $43.4 million compared with $39.6 million in the same period last year, an increase of 10%. Revenue benefitted from increased volumes from core medical device Customers as well as the acquisition of Biotest in March 2012. Operating income in the quarter declined slightly to $11.1 million compared with $11.8 million last year, as a result of the additional costs of new capacity the Company has brought online in the quarter.

Cash Flow

Net cash provided by operations for the first nine months of fiscal 2013 was $180.9 million, compared with $112.8 million last year. Free cash flow (see note 1) for the first nine months of fiscal 2013 was $117.1 million, compared with $58.6 million in the prior year. The improvement in free cash flow is primarily due to improvements in working capital management and the cash benefit from the previously-mentioned tax benefit related to European restructuring.


STERIS Corporation

News Announcement

Page 3

 

Dividend Announcement

The Company also announced today that STERIS’s Board of Directors has authorized a quarterly dividend of $0.19 per common share. The dividend is payable March 27, 2013 to shareholders of record at the close of business on February 27, 2013.

Outlook

Based on the strength of results year-to-date and expectations for the fourth quarter, the Company now anticipates that revenue growth will be 5% for the full year compared with prior expectations of 3-4% growth. The increase in revenue expectations is primarily due to strength in the Healthcare segment, which is now anticipated to grow mid-single digits for the year compared with prior expectations of low-single digits. Adjusted earnings per diluted share are now anticipated to be in the range of $2.25 to $2.35 including a $0.03 negative impact from the Medical Device Excise Tax, compared with prior expectations of $2.15 to $2.35 which did not include the impact of the Medical Device Excise Tax.

The Company’s outlook for fiscal 2013 reflects certain key assumptions, some of which are listed below:

 

   

The Company has assumed the average forward exchange rates for the U.S. dollar and key international currencies as of December 31, 2012.

 

   

EBIT as a percent of revenue is anticipated to be approximately 15% on an adjusted basis.

 

   

The effective adjusted tax rate is anticipated to be approximately 35%.

For the full fiscal year 2013, free cash flow (see note 1) is now anticipated to be approximately $150 million (increased from $130 million) excluding the SYSTEM 1 Rebate Program and class action settlement, or $130 million (increased from $100 million) including those items. Capital expenditures are anticipated to be approximately $95 million, as the Company is investing in several major projects that are designed to improve quality, reduce cost and add value to our current product offering.


STERIS Corporation

News Announcement

Page 4

 

Conference Call

In conjunction with this release, STERIS Corporation management will host a conference call today at 10:00 a.m. Eastern time. The conference call can be heard live over the Internet at www.steris-ir.com or via phone by dialing 1- 800-369-8428 in the United States and Canada, and 1-773-799-3378 internationally, then referencing the password “STERIS”.

For those unable to listen to the conference call live, a replay will be available beginning at 12:00 p.m. Eastern time today, either over the Internet at www.steris-ir.com or via phone by calling 1-800-388-4950 in the United States and Canada, or 1-203-369-3694 internationally.

About STERIS

The mission of STERIS Corporation is to provide a healthier today and safer tomorrow through knowledgeable people and innovative infection prevention, decontamination and health science technologies, products and services. The Company has approximately 6,000 dedicated employees around the world working together to supply a broad array of solutions by offering a combination of equipment, consumables and services to healthcare, pharmaceutical, industrial and government Customers. The Company is listed on the New York Stock Exchange under the symbol STE. For more information, visit www.steris.com.

(1) Free cash flow is a non-GAAP number used by the Company as a measure to gauge its ability to fund future principal debt repayments, growth outside of core operations, repurchase common shares, and pay cash dividends. STERIS defines free cash flow as net cash flows from operating activities less purchases of property, plant, equipment and intangibles plus proceeds from the sale of property, plant, equipment and intangibles. STERIS’s calculation of free cash flow may vary from other companies. Please see the attached financial tables for a complete reconciliation of these non-GAAP numbers to the nearest GAAP information.

This press release and the referenced conference call may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to the Company or its industry, products or activities that are intended to qualify for the protections afforded “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date made, and may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “outlook,” “impact,” “potential,” “confidence,” “improve,” “optimistic,” “deliver,” “comfortable,” “trend”, and “seeks,” or the negative of such terms or other variations on such terms or comparable terminology. Many important factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, disruption of production or supplies, changes in market conditions, political events, pending or future claims or litigation, competitive factors, technology advances, actions of regulatory agencies, and changes in


STERIS Corporation

News Announcement

Page 5

 

laws, government regulations, labeling or product approvals or the application or interpretation thereof. Other risk factors are described herein and in the Company’s Form 10-K and other securities filings. Many of these important factors are outside STERIS’s control. No assurances can be provided as to any result or the timing of any outcome regarding matters described in this press release or the conference call or otherwise with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, consent decree, rebate program, transition, cost reductions, business strategies, earnings or revenue trends or future financial results (including without limitation the settlement of the SYSTEM 1 class action litigation and the regulatory matters related to SYSTEM 1E or its accessories). References to products, the consent decree, the transition or rebate program, or the class action settlement, are summaries only and should not be considered the specific terms of the decree, settlement, program or product clearance or literature. Unless legally required, the Company does not undertake to update or revise any forward-looking statements even if events make clear that any projected results, express or implied, will not be realized. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, (a) the potential for increased pressure on pricing or costs that leads to erosion of profit margins, (b) the possibility that market demand will not develop for new technologies, products or applications or the Company’s business initiatives will take longer, cost more or produce lower benefits than anticipated, (c) the possibility that application of or compliance with laws, court rulings, certifications, regulations, regulatory actions, including without limitation those relating to FDA warning notices or letters, government investigations, the April 20, 2010 consent decree, the SYSTEM 1E device, the outcome of any pending FDA requests, inspections or submissions, or other requirements or standards may delay, limit or prevent new product introductions, affect the production and marketing of existing products or services or otherwise affect Company performance, results, prospects or value, (d) the potential of international unrest, economic downturn or effects of currencies, tax assessments, adjustments, or anticipated rates, raw material costs or availability, benefit or retirement plan costs, or other regulatory compliance costs, (e) the possibility of reduced demand, or reductions in the rate of growth in demand, for the Company’s products and services, (f) the possibility that anticipated growth, cost savings, new product acceptance, performance or approvals, including without limitation SYSTEM 1E and accessories thereto, or other results may not be achieved, or that transition, labor, competition, timing, execution, regulatory, governmental, or other issues or risks associated with our business, industry or initiatives including, without limitation, the consent decree, and the transition from the SYSTEM 1 processing system and adjustments to related reserves, or those matters described in our Form 10-K for the year ended March 31, 2012 and other securities filings, may adversely impact company performance, results, prospects or value, (g) the possibility that anticipated financial results or benefits of recent acquisitions will not be realized or will be other than anticipated, (h) the effect of the contraction in credit availability, as well as the ability of our Customers and suppliers to adequately access the credit markets when needed, and (i) those risks described in our securities filings including our Annual Report on Form 10-K for the year ended March 31, 2012, and other securities filings.

Contact: Julie Winter, Director, Investor Relations at 440-392-7245.


STERIS Corporation

Consolidated Condensed Statements of Operations

(In thousands, except per share data)

 

     Three Months Ended      Nine Months Ended  
     December 31,      December 31,  
     2012     2011      2012     2011  
     (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)  

Revenues

   $ 380,405      $ 355,215       $ 1,053,286      $ 1,016,561   

SYSTEM 1 Rebate Program

     —           —            20,400        —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Revenues, net

     380,405        355,215         1,073,686        1,016,561   

Cost of revenues

     227,283        217,209         631,291        612,321   

Cost of revenues—SYSTEM 1 Rebate Program

     —           —            (1,100     —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Gross profit

     153,122        138,006         443,495        404,240   

Operating expenses:

         

Selling, general, and administrative

     91,753        73,922         252,567        227,583   

Class action settlement

     (15,800     —            (15,800     —      

Research and development

     10,415        9,196         29,579        26,867   

Restructuring expense

     (386     1,164         (570     1,522   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     85,982        84,282         265,776        255,972   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income from operations

     67,140        53,724         177,719        148,268   

Non-operating expense, net

     3,869        2,632         9,957        8,135   

Income tax expense

     15,174        17,443         49,166        48,189   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 48,097      $ 33,649       $ 118,596      $ 91,944   
  

 

 

   

 

 

    

 

 

   

 

 

 

Earnings per common share (EPS) data:

         

Basic

   $ 0.82      $ 0.58       $ 2.04      $ 1.57   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted

   $ 0.82      $ 0.58       $ 2.02      $ 1.55   
  

 

 

   

 

 

    

 

 

   

 

 

 

Cash dividends declared per common share outstanding

   $ 0.19      $ 0.17       $ 0.55      $ 0.49   

Weighted average number of common shares outstanding used in EPS computation:

         

Basic number of common shares outstanding

     58,425        57,782         58,200        58,594   

Diluted number of common shares outstanding

     58,972        58,237         58,692        59,240   

STERIS Corporation

Consolidated Condensed Balance Sheets

(In thousands)

 

     December 31,      March 31,  
     2012      2012  
     (Unaudited)         

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 155,887       $ 150,821   

Accounts receivable, net

     248,021         280,324   

Inventories, net

     163,577         157,712   

Other current assets

     54,648         63,026   
  

 

 

    

 

 

 

Total Current Assets

     622,133         651,883   

Property, plant, and equipment, net

     425,550         386,409   

Goodwill and intangible assets, net

     709,950         337,784   

Other assets

     7,439         29,620   
  

 

 

    

 

 

 

Total Assets

   $ 1,765,072       $ 1,405,696   
  

 

 

    

 

 

 

Liabilities and Equity

     

Current liabilities:

     

Accounts payable

   $ 78,169       $ 83,188   

Accrued SYSTEM 1 Rebate Program and class action settlement

     5,549         69,065   

Other current liabilities

     144,090         126,142   
  

 

 

    

 

 

 

Total Current Liabilities

     227,808         278,395   

Long-term debt

     520,890         210,000   

Other liabilities

     96,180         94,637   

Equity

     920,194         822,664   
  

 

 

    

 

 

 

Total Liabilities and Equity

   $ 1,765,072       $ 1,405,696   
  

 

 

    

 

 

 


STERIS Corporation

Segment Data

(In thousands)

 

     Three Months Ended      Nine Months Ended  
     December 31,      December 31,  
     2012      2011      2012      2011  
     (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)  

Segment Revenues:

           

Healthcare

   $ 271,096       $ 259,055       $ 737,030       $ 725,455   

SYSTEM 1 Rebate Program

     —           —           20,400         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Healthcare, net

     271,096         259,055         757,430         725,455   

Life Sciences

     65,043         55,892         180,116         167,675   

STERIS Isomedix Services

     43,392         39,615         133,732         121,617   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Reportable Segments

     379,531         354,562         1,071,278         1,014,747   

Corporate and Other

     874         653         2,408         1,814   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Segment Revenues

   $ 380,405       $ 355,215       $ 1,073,686       $ 1,016,561   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three Months Ended     Nine Months Ended  
     December 31,     December 31,  
     2012     2011     2012     2011  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Segment Operating Income:

        

Healthcare

   $ 45,478      $ 33,951      $ 110,355      $ 88,213   

Life Sciences

     12,798        10,297        35,201        30,820   

STERIS Isomedix Services

     11,103        11,750        39,348        35,924   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Reportable Segments

     69,379        55,998        184,904        154,957   

Corporate and Other

     (2,239     (2,274     (7,185     (6,689
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Income

   $ 67,140      $ 53,724      $ 177,719      $ 148,268   
  

 

 

   

 

 

   

 

 

   

 

 

 


STERIS Corporation

Consolidated Condensed Statements of Cash Flows

(In thousands)

 

     Nine Months Ended  
     December 31,  
     2012     2011  
     (Unaudited)     (Unaudited)  

Operating Activities:

    

Net income

   $ 118,596      $ 91,944   

Non-cash items

     77,006        73,626   

Change in Accrued SYSTEM 1 Rebate Program and class action settlement

     (63,516     (27,449

Changes in operating assets and liabilities

     48,850        (25,282
  

 

 

   

 

 

 

Net cash provided by operating activities

     180,936        112,839   

Investing Activities:

    

Purchases of property, plant, equipment, and intangibles, net

     (63,878     (54,238

Proceeds from sale of property, plant, equipment and intangibles

     29        —      

Investments in businesses, net of cash acquired

     (399,415     (22,269
  

 

 

   

 

 

 

Net cash used in investing activities

     (463,264     (76,507

Financing Activities:

    

Proceeds under credit facilities, net

     210,890        —      

Deferred financing fees

     (1,581     —      

Proceeds from Private Placement

     100,000        —      

Repurchases of common shares

     (7,893     (56,751

Cash dividends paid to common shareholders

     (32,045     (28,751

Stock option and other equity transactions, net

     14,517        3,749   

Tax benefit from stock options exercised

     2,161        816   
  

 

 

   

 

 

 

Net cash used in financing activities

     286,049        (80,937

Effect of exchange rate changes on cash and cash equivalents

     1,345        (4,624
  

 

 

   

 

 

 

Decrease in cash and cash equivalents

     5,066        (49,229

Cash and cash equivalents at beginning of period

     150,821        193,016   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 155,887      $ 143,787   
  

 

 

   

 

 

 

The following tables present a financial measure which is considered to be “non-GAAP financial measures” under Securities Exchange Commission rules. Free cash flow is defined by the Company as cash flows from operating activities less purchases of property, plant, equipment and intangibles, net (capital expenditures) plus proceeds from the sale of property, plant, equipment and intangibles. The Company uses free cash flow as a measure to gauge its ability to fund future principal debt repayments, growth outside of core operations, repurchase common shares, and pay cash dividends. STERIS’s calculation of free cash flow may vary from other companies.

 

     Nine Months Ended  
     December 31,  
     2012     2012 (1)     2011     2011 (1)  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Calculation of Free Cash Flow:

        

Cash flows from operating activities

   $ 180,936      $ 180,936      $ 112,839      $ 112,839   

Purchases of property, plant, equipment, and intangibles, net

     (63,878     (63,878     (54,238     (54,238

Proceeds from the sale of property, plant, equipment, and intangibles

     29        29        —           —      

Payments associated with the SYSTEM 1 Rebate Program and class action settlement, net of tax benefit

     —           16,254        —           17,018   
  

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow

   $ 117,087      $ 133,341      $ 58,601      $ 75,619   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Twelve Months Ended  
     March 31,  
     2013     2013 (1)  
     (Outlook)     (Outlook)  

Calculation of free cash flow for outlook:

    

Cash flows from operating activities

   $ 225,000      $ 225,000   

Purchases of property, plant, equipment, and intangibles, net

     (95,000     (95,000

Payments associated with the SYSTEM 1 Rebate Program and class action settlement, net of tax benefit

     —           20,000   
  

 

 

   

 

 

 

Free Cash Flow

   $ 130,000      $ 150,000   
  

 

 

   

 

 

 

 

(1) Adjusted to exclude the impact of the payments associated with the SYSTEM 1 Rebate Program and class action settlement.


STERIS Corporation

Non-GAAP Earnings Per Share and Outlook

The Company has referred to an adjusted financial measure regarding the results of operations excluding certain items to provide meaningful comparative analysis between the periods. This financial measure is considered to be a “non-GAAP financial measure” under Securities Exchange Commission rules. Reconciliation of the financial measure to its nearest GAAP financial measure is provided in the table below.

 

     Three months ended      Nine months ended  
     December 31,      December 31,  
     2012     2011      2012     2011  
     (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)  

Net income per diluted share

   $ 0.82      $ 0.58       $ 2.02      $ 1.55   

Impact of SYSTEM 1 Rebate Program and class action settlement, net of tax

     (0.16     —            (0.39     —      

Restructuring, net of tax

       0.01         (0.01     0.01   

Inventory “step up” to fair value, net of tax

     0.01        —            0.02        0.01   

Amortization and impairment of purchased intangible assets, net of tax

     0.03        0.01         0.08        0.05   

Tax benefit, European restructuring

     (0.14        (0.14  

Acquisition related transaction and integration expenses, net of tax

     0.02        —            0.06        —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 0.58      $ 0.60       $ 1.64      $ 1.62   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

     Twelve months ended  
     March 31,  
     2013     2012  
     (Outlook)*     (Unaudited)  

Net income per diluted share

   $ 2.57 – $2.67      $ 2.31   

Impact of SYSTEM 1 Rebate Program and class action settlement, net of tax

     (0.39     (0.18

S1E inventory reserve, net of tax

     —           0.03   

Inventory “step up” to fair value, net of tax

     0.02        0.01   

Amortization and impairment of purchased intangible assets, net of tax

     0.12        0.08   

Gain from fair value adjustment of acquisition related contingent consideration, net of tax

     —           (0.03

Tax benefit, European restructuring

     (0.14     —      

Acquisition related transaction and integration expenses, net of tax

     0.07        —      
  

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 2.25 – $2.35      $ 2.22   
  

 

 

   

 

 

 

 

* All amounts are estimates.


STERIS Corporation

Non-GAAP Financial Measures

(In thousands, except per share data)

The Company has referred to certain adjusted financial measures regarding the results of operations excluding certain items to provide meaningful comparative analysis between the periods. These financial measures are considered to be “non-GAAP financial measure” under Securities Exchange Commission rules. Reconciliation of each financial measure to its nearest GAAP financial measure is provided in the table below.

 

     Three months ended      Nine months ended  
     December 31,      December 31,  
     2012     2011      2012     2011  
     (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)  

Revenues

   $ 380,405      $ 355,215       $ 1,073,686      $ 1,016,561   

Impact of SYSTEM 1 Rebate Program

     —           —            (20,400     —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted revenues

   $ 380,405      $ 355,215       $ 1,053,286      $ 1,016,561   
  

 

 

   

 

 

    

 

 

   

 

 

 

Gross Profit

     153,122        138,006         443,495        404,240   

Impact of SYSTEM 1 Rebate Program

     —           —            (21,500     —      

Amortization of inventory “step up” to fair value

     747        306         1,592        878   

Restructuring

     —           3         —           (68
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted gross profit

     153,869        138,315         423,587        405,050   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income

   $ 67,140      $ 53,724       $ 177,719      $ 148,268   

Impact of SYSTEM 1 Rebate Program and class action settlement

     (15,800     —            (37,300     —      

Amortization of inventory “step up” to fair value

     747        306         1,592        878   

Amortization and impairment of purchased intangible assets

     3,984        1,030         7,265        3,924   

Acquisition related transaction and integration costs

     2,113        —            5,667        —      

Restructuring

     (386     1,167         (570     1,454   
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted operating income

   $ 57,798      $ 56,227       $ 154,373      $ 154,524   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 48,097      $ 33,649       $ 118,596      $ 91,944   

Impact of SYSTEM 1 Rebate Program and class action settlement, net of tax

     (9,638     —            (22,753     —      

Amortization of inventory “step up” to fair value, net of tax

     456        196         971        562   

Amortization and impairment of purchased intangible assets, net of tax

     2,430        659         4,432        2,511   

Acquisition related transaction and integration costs

     1,289        —            3,457        —      

Tax benefit, European restructuring

     (8,118        (8,118  

Restructuring, net of tax

     (235     747         (348     931   
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted net income

   $ 34,281      $ 35,251       $ 96,237      $ 95,948   
  

 

 

   

 

 

    

 

 

   

 

 

 

Healthcare revenues

   $ 271,096      $ 259,055       $ 757,430      $ 725,455   

Impact of SYSTEM 1 Rebate Program

     —           —            (20,400     —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted Healthcare revenues

   $ 271,096      $ 259,055       $ 737,030      $ 725,455   
  

 

 

   

 

 

    

 

 

   

 

 

 

Healthcare capital revenues

   $ 119,471      $ 144,366       $ 366,840      $ 378,335   

Impact of SYSTEM 1 Rebate Program

     —           —            (20,400     1,732   
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted Healthcare capital revenues

   $ 119,471      $ 144,366       $ 346,440      $ 380,067   
  

 

 

   

 

 

    

 

 

   

 

 

 

Healthcare operating income

   $ 45,478      $ 33,951       $ 110,355      $ 88,213   

Impact of SYSTEM 1 Rebate Program and class action settlement

     (15,800     —            (37,300     —      

Amortization of inventory “step up” to fair value

     747        306         1,592        878   

Amortization and impairment of purchased intangible assets

     3,595        682         6,079        2,785   

Acquisition related transaction and integration costs

     2,113        —            5,667        —      

Restructuring

     (386     1,167         (570     1,454   
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted Healthcare operating income

   $ 35,747      $ 36,106       $ 85,823      $ 93,330   
  

 

 

   

 

 

    

 

 

   

 

 

 

STERIS Isomedix Services operating income

   $ 11,103      $ 11,750       $ 39,348      $ 35,924   

Amortization and impairment of purchased intangible assets

     345        283         1,035        876   
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted STERIS Isomedix Services operating income

   $ 11,448      $ 12,033       $ 40,383      $ 36,800   
  

 

 

   

 

 

    

 

 

   

 

 

 

Capital equipment revenues

   $ 147,068      $ 165,290       $ 435,162      $ 439,134   

Impact of SYSTEM 1 Rebate Program

     —           —            (20,400     —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted capital equipment revenues

   $ 147,068      $ 165,290       $ 414,762      $ 439,134   
  

 

 

   

 

 

    

 

 

   

 

 

 

United States revenues

   $ 281,411      $ 263,540       $ 815,604      $ 766,011   

Impact of SYSTEM 1 Rebate Program

     —           —            (20,400     —      
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted United States revenues

   $ 281,411      $ 263,540       $ 795,204      $ 766,011   
  

 

 

   

 

 

    

 

 

   

 

 

 


STERIS Corporation

Unaudited Supplemental Financial Data

Third Quarter Fiscal 2013

As of December 31, 2012

 

     FY 2013     FY 2012     FY 2013     FY 2012  

Total Company Revenues

   Q3     Q3     YTD     YTD  

Capital Equipment

   $ 147,068      $ 165,290      $ 435,162      $ 439,134   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted capital equipment revenues (1)

     na        na        414,762        na   

Consumables

     96,654        74,113        253,963        225,784   

Service

     136,683        115,812        384,561        351,643   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Recurring

     233,337        189,925        638,524        577,427   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

   $ 380,405      $ 355,215      $ 1,073,686      $ 1,016,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted total revenues (1)

     na        na      $ 1,053,286        na   
  

 

 

   

 

 

   

 

 

   

 

 

 

United States Revenues

   $ 281,411      $ 263,540      $ 815,604      $ 766,011   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted United States Revenues (1)

     na        na        795,204        na   
  

 

 

   

 

 

   

 

 

   

 

 

 

United States Revenues as a % of Total

     74     74     75     75

International Revenues

   $ 98,994      $ 91,675      $ 258,082      $ 250,550   

International Revenues as a % of Total

     26     26     25     25

Segment Data

   Q3     Q3     YTD     YTD  

Healthcare

        

Revenues

        

Capital Equipment

   $ 119,471      $ 144,366      $ 366,840      $ 378,335   

Adjusted capital equipment (1)

     na        n/a      $ 346,440        na   

Consumables

     78,696        57,485        198,450        173,274   

Service

     72,929        57,204        192,140        173,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Recurring

     151,625        114,689        390,590        347,120   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Healthcare Revenues

   $ 271,096      $ 259,055      $ 757,430      $ 725,455   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Total Healthcare Revenues (1)

     na        na      $ 737,030        na   

Operating Income

     45,478        33,951        110,355        88,213   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Operating Income/(Loss) (1)

     35,747        na        85,823        na   

Life Sciences

        

Revenues

        

Capital Equipment

   $ 27,597      $ 20,924      $ 68,322      $ 60,717   

Consumables

     17,958        16,628        55,513        52,510   

Service

     19,488        18,340        56,281        54,448   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Recurring

     37,446        34,968        111,794        106,958   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Life Sciences Revenues

   $ 65,043      $ 55,892      $ 180,116      $ 167,675   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

     12,798        10,297        35,201        30,820   
  

 

 

   

 

 

   

 

 

   

 

 

 

Isomedix Services

        

Revenues

   $ 43,392      $ 39,615      $ 133,732      $ 121,617   

Operating Income

     11,103        11,750        39,348        35,924   
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

        

Revenues

   $ 874      $ 653      $ 2,408      $ 1,814   

Operating Income (Loss)

     (2,239     (2,274     (7,185     (6,689

Other Data

   Q3     Q3     YTD     YTD  

Healthcare Backlog

   $ 141,306      $ 135,793        n/a        n/a   
      

 

 

   

 

 

 

Life Sciences Backlog

     49,635        45,019        n/a        n/a   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Backlog

   $ 190,941      $ 180,812        n/a        n/a   

Free Cash Flow

   $ 50,104      $ 32,509      $ 117,087      $ 58,601   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Debt

   $ 365,003      $ 66,213        n/a        n/a   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) The Company has referred to certain adjusted financial measures regarding the results of operations excluding certain items to provide meaningful comparative analysis between the periods. These financial measures are considered to be “non-GAAP financial measure” under Securities Exchange Commission rules. Reconciliation of each financial measure to its nearest GAAP financial measure is provided in the preceding tables.

This supplemental data is consistent with publicly disclosed information provided in quarterly conference calls, earnings releases and SEC filings, and is subject to all definitions, precautions and limitations contained in those disclosures. Please see the Company’s most recent 10-K for definitions (and reconciliation where appropriate) of adjusted measures, backlog, free cash flow and net debt.