Last10K.com

Steris Plc (STE) SEC Filing 8-K Material Event for the period ending Tuesday, February 8, 2022

Steris Plc

CIK: 1757898 Ticker: STE

Exhibit 99.1
                                                
STERIS Announces Financial Results for Fiscal 2022 Third Quarter

Third quarter revenue increases 49% as reported; 9% constant currency organic
As reported EPS of $1.42; adjusted EPS of $2.12
Outlook for FY22 raised

DUBLIN, IRELAND - (February 8, 2022) - STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2022 third quarter ended December 31, 2021. Revenue as reported for the quarter increased 49% to $1.2 billion compared with $808.9 million in the third quarter of fiscal 2021. Constant currency organic revenue (see Non-GAAP Financial Measures) increased 9% for the third quarter of fiscal 2022 as compared to the third quarter of fiscal 2021.

“We are pleased with our performance in the third quarter, as our balanced revenue stream continues to deliver solid growth in the current environment,” said Dan Carestio, President and Chief Executive Officer of STERIS. “While supply chain and inflation continue to be a challenge, our teams have worked to manage through with minimal impact on our ability to serve our Customers. We continue to anticipate another record year for STERIS and are updating our outlook for the full fiscal year 2022 based on better than anticipated performance.”

As reported, net income for the third quarter was $143.6 million or $1.42 per diluted share, compared with net income of $114.5 million or $1.33 per diluted share in the third quarter of fiscal 2021. Fiscal 2022 third quarter was negatively impacted by amortization of acquired intangibles and inventory and property “step up” and one-time expenses associated with acquisitions totaling approximately $86.6 million. Adjusted net income (see Non-GAAP Financial Measures) for the third quarter of fiscal 2022 was $213.3 million or $2.12 per diluted share, compared with the previous year’s third quarter of $149.2 million or $1.73 per diluted share.

Third Quarter Segment Results
Healthcare revenue as reported grew 46% in the quarter to $759.7 million compared with $521.7 million in the third quarter of fiscal 2021, with $210.3 million added from acquisitions during the quarter. This performance reflected an 84% increase in consumable revenue, a 47% improvement in capital equipment revenue and a 19% increase in service revenue. Constant currency organic revenue increased 5% for the quarter. Healthcare operating income was $169.3 million compared with $115.4 million in last year’s third quarter. The increase in profitability was primarily due to the benefit of acquired businesses and the increase in organic volume.

Fiscal 2022 third quarter revenue for Applied Sterilization Technologies (AST) increased 23% as reported to $216.3 million compared with $176.5 million in the same period last year. Constant currency organic revenue increased 18%, driven primarily by increased demand from medical device and biopharma Customers in the quarter. Segment operating income was $101.3 million in the third quarter of fiscal 2022 compared with operating income of $81.6 million in the same period last year primarily due to increased volume.

Life Sciences third quarter revenue as reported grew 15% to $127.9 million compared with $110.8 million in the third quarter of fiscal 2021. Growth was driven by a 23% increase in consumable revenue, a 13% improvement in service revenue and a 5% increase in capital equipment revenue. Constant currency organic revenue increased 9% in the quarter. Operating income was $52.0 million in the third quarter of fiscal 2022 compared with $41.5 million in the prior year’s third quarter. The increase in profitability was primarily due to the increase in volume and contributions from acquisitions.

Dental third quarter revenue as reported was $105.1 million and operating income was $23.1 million, slightly below the Company’s expectations primarily due to lower patient volumes, supply chain constraints and inflation.





Cash Flow
Net cash provided by operations for the first nine months of fiscal 2022 was $513.1 million, compared with $501.8 million for the same period in fiscal 2021. Free cash flow (see Non-GAAP Financial Measures) for the first nine months of fiscal 2022 was $300.3 million compared with $337.7 million in the prior year period. The decrease in free cash flow is primarily due to anticipated costs associated with the Cantel Medical acquisition and higher capital spending year-over-year.

Outlook
The Company is updating its expectations for fiscal 2022. Constant currency organic revenue growth is now anticipated to be approximately 11%, compared with prior expectations of 10-11%. Adjusted earnings per diluted share are now anticipated to be in the range of $7.85 to $7.95, compared with prior expectations of $7.60 to $7.85. The increased outlook reflects solid growth across the business and higher cost synergies from the Cantel acquisition somewhat offset by continued challenges from supply chain, inflation and earnings dilution from the recent divestiture of the Renal Care business.

Capital expenditures are now anticipated to be approximately $300 million and free cash flow is expected to be approximately $420 million.

Conference Call
As previously announced, STERIS management will host a conference call tomorrow, February 9, 2022 at 10:00 a.m. ET. The conference call can be heard at www.steris-ir.com or via phone by dialing 1-833-535-2199 in the United States or 1-412-902-6776 internationally, then asking to join the conference call for STERIS plc.

For those unable to listen to the conference call live, a replay will be available beginning at 12:00 p.m. ET on February 9, 2022, either at www.steris-ir.com or via phone. To access the replay of the call, please use the access code 6968500 and dial 1-877-344-7529 in the United States or 1-412-317-0088 internationally.

About STERIS
STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare, life sciences and dental products and services. For more information, visit www.steris.com.

Company Contact:
Julie Winter, Vice President, Investor Relations and Corporate Communications
Julie_Winter@steris.com

Non-GAAP Financial Measures
Adjusted net income, adjusted EBIT, free cash flow and constant currency organic revenue are non-GAAP measures that may be used from time to time and should not be considered replacements for GAAP results. Non-GAAP financial measures are presented in this release with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. The Company believes that the presentation of these non-GAAP financial measures, when considered along with our GAAP financial measures, provides a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure.

Adjusted net income excludes the amortization of intangible assets acquired in business combinations, acquisition related transaction costs, integration costs related to acquisitions, redomiciliation and tax restructuring costs, COVID-19 incremental costs, settlement of I.R.S. adjustments related to prior fiscal years, and certain other unusual or non-recurring items. COVID-19 incremental costs include the additional costs attributable to COVID-19 such as enhanced cleaning protocols, personal protective equipment for our employees, event cancellation fees, and payroll costs associated with our response to COVID-19, net of any government subsidies available. STERIS believes this



measure is useful because it excludes items that may not be indicative of or are unrelated to our core operating results and provides a baseline for analyzing trends in our underlying businesses.

The Company defines free cash flow as 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 believes that free cash flow is a useful measure of the Company’s ability to fund future principal debt repayments and growth outside of core operations, pay cash dividends, and repurchase ordinary shares.

To measure the percentage organic revenue growth, the Company removes the impact of significant acquisitions and divestitures that affect the comparability and trends in revenue. To measure the percentage constant currency organic revenue growth, the impact of changes in currency exchange rates and acquisitions and divestitures that affect the comparability and trends in revenue are removed. The impact of changes in currency exchange rates is calculated by translating current year results at prior year average currency exchange rates.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales, gross profit, operating income, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
The release and the referenced conference call may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS 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 the statement is 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,” “orders,” “backlog,” “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 laws, government regulations, labeling or product approvals or the application or interpretation thereof. Other risk factors are described in STERIS’s other securities filings, including Item 1A of our Annual Report on Form 10-K for the year ended March 31, 2021 and subsequently filed Quarterly Reports on Form 10-Q. Many of these important factors are outside of STERIS’s control. No assurances can be provided as to any result or the timing of any outcome regarding matters described in STERIS’s securities filings or otherwise with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, cost reductions, business strategies, earnings or revenue trends or future financial results. References to products are summaries only and should not be considered the specific terms of the product clearance or literature. Unless legally required, STERIS 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 impact of the COVID-19 pandemic on STERIS’s operations, supply chain, material and labor costs, performance, results, prospects, or value, (b) STERIS's ability to achieve the expected benefits regarding the accounting and tax treatments of the redomiciliation to Ireland (“Redomiciliation”), (c) operating costs, Customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, Customers, clients or suppliers) being greater than expected following the Redomiciliation, (d) STERIS’s ability to successfully integrate the businesses of Cantel Medical into our existing businesses, including unknown or inestimable liabilities,



or increases in expected integration costs or difficulties in connection with the integration of Cantel Medical (e) STERIS’s ability to meet expectations regarding the accounting and tax treatment of the Tax Cuts and Jobs Act (“TCJA”) or the possibility that anticipated benefits resulting from the TCJA will be less than estimated, (f) changes in tax laws or interpretations that could increase our consolidated tax liabilities, including changes in tax laws that would result in STERIS being treated as a domestic corporation for United States federal tax purposes, (g) the potential for increased pressure on pricing or costs that leads to erosion of profit margins, (h) the possibility that market demand will not develop for new technologies, products or applications or services, or business initiatives will take longer, cost more or produce lower benefits than anticipated, (i) the possibility that application of or compliance with laws, court rulings, certifications, regulations, regulatory actions, including without limitation any of the same relating to FDA, EPA or other regulatory authorities, government investigations, the outcome of any pending or threatened FDA, EPA or other regulatory warning notices, actions, requests, inspections or submissions, or other requirements or standards may delay, limit or prevent new product or service introductions, affect the production, supply and/or marketing of existing products or services or otherwise affect STERIS’s performance, results, prospects or value, (j) the potential of international unrest, economic downturn or effects of currencies, tax assessments, tariffs and/or other trade barriers, adjustments or anticipated rates, raw material costs or availability, benefit or retirement plan costs, or other regulatory compliance costs, (k) the possibility of reduced demand, or reductions in the rate of growth in demand, for STERIS’s products and services, (l) the possibility of delays in receipt of orders, order cancellations, or delays in the manufacture or shipment of ordered products or in the provision of services, (m) the possibility that anticipated growth, cost savings, new product acceptance, performance or approvals, or other results may not be achieved, or that transition, labor, competition, timing, execution, regulatory, governmental, or other issues or risks associated with STERIS’s businesses, industry or initiatives including, without limitation, those matters described in our Annual Report on Form 10-K for the year ended March 31, 2021, and other securities filings, may adversely impact STERIS’s performance, results, prospects or value, (n) the impact on STERIS and its operations, or tax liabilities, of Brexit or the exit of other member countries from the EU, and the Company’s ability to respond to such impacts, (o) the impact on STERIS and its operations of any legislation, regulations or orders, including but not limited to any new trade or tax legislation, regulations or orders, that may be implemented by the U.S. administration or Congress, or of any responses thereto, (p) the possibility that anticipated financial results or benefits of recent acquisitions, including the acquisition of Cantel Medical and Key Surgical, or of STERIS’s restructuring efforts, or of recent divestitures, including anticipated revenue, productivity improvement, cost savings, growth synergies and other anticipated benefits, will not be realized or will be other than anticipated, (q) the increased level of STERIS’s indebtedness incurred in connection with the acquisition of Cantel Medical limiting financial flexibility or increasing future borrowing costs, (r) rating agency actions or other occurrences that could affect STERIS’s existing debt or future ability to borrow funds at rates favorable to STERIS or at all, (s) the potential impact of the acquisition of Cantel Medical on relationships, including with suppliers, Customers, employees and regulators, and (t) the effects of contractions in credit availability, as well as the ability of STERIS’s Customers and suppliers to adequately access the credit markets when needed.




STERIS plc
Consolidated Condensed Statements of Operations
(In thousands, except per share data)Three Months Ended December 31, Nine Months Ended December 31,
 
 2021202020212020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
(Recast)*(Recast)*
Revenues$1,208,971 $808,924 $3,374,378 $2,233,988 
Cost of revenues 670,857 463,063 1,929,638 1,270,706 
Gross profit538,114 345,861 1,444,740 963,282 
Operating expenses:
Selling, general, and administrative310,564 182,373 1,049,116 510,250 
Research and development24,824 16,438 61,847 48,812 
Restructuring expenses(207)20 17 110 
Total operating expenses335,181 198,831 1,110,980 559,172 
Income from operations202,933 147,030 333,760 404,110 
Non-operating expenses, net20,524 7,600 90,721 22,280 
Income tax expense39,315 24,842 52,222 71,703 
Net income$143,094 $114,588 $190,817 $310,127 
Less: Net income (loss) attributable to noncontrolling interests(529)87 (810)171 
Net income attributable to shareholders$143,623 $114,501 $191,627 $309,956 
Earnings per ordinary share (EPS) data:
Basic$1.44 $1.34 $1.98 $3.64 
Diluted$1.42 $1.33 $1.97 $3.61 
Cash dividends declared per share ordinary outstanding$0.43 $0.40 $1.26 $1.17 
Weighted average number of shares outstanding used in EPS computation:
  Basic number of shares outstanding100,038 85,330 96,679 85,153 
  Diluted number of shares outstanding100,826 86,032 97,502 85,851 
STERIS plc
Consolidated Condensed Balance Sheets
(in thousands)
December 31,March 31,
 20212021
 (Unaudited) 
Assets
Current assets:
Cash and cash equivalents$359,089 $220,531 
Accounts receivable, net752,132 609,406 
Inventories, net594,599 315,067 
Prepaid expenses and other current assets221,274 66,750 
Total current assets1,927,094 1,211,754 
Property, plant, and equipment, net1,521,587 1,235,400 
Lease right-of-use assets, net194,026 150,142 
Goodwill5,115,323 3,026,049 
Intangibles, net2,876,041 898,406 
Other assets55,895 52,720 
Total assets$11,689,966 $6,574,471 
Liabilities and equity
Current liabilities:
Accounts payable$207,152 $156,950 
Other current liabilities697,155 420,970 
Total current liabilities904,307 577,920 
Long-term indebtedness3,175,316 1,650,540 
Other liabilities986,674 454,543 
Total equity6,623,669 3,891,468 
Total liabilities and equity$11,689,966 $6,574,471 
*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.


STERIS plc
Segment Data
Financial information for each of the segments is presented in the following table. We disclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company. Segment income is calculated as the segment’s gross profit less direct costs and indirect costs if the resources are dedicated to a single segment. Corporate costs include corporate and administrative functions, public company costs, legacy post-retirement benefits, and certain services and facilities related to distribution and research and development that are shared by multiple segments.
 Three Months Ended December 31, Nine Months Ended December 31,
 2021202020212020
(unaudited)(unaudited)(unaudited)(unaudited)
(recast)*(recast)*
Revenues:
Healthcare $759,675 $521,662 $2,106,626 $1,392,247 
Applied Sterilization Technologies216,298 176,462 630,092 498,371 
Life Sciences127,908 110,800 381,706 343,370 
Dental 105,090 — 255,954 — 
Total revenues$1,208,971 $808,924 $3,374,378 $2,233,988 
Operating income (loss):
Healthcare$169,267 $115,412 $465,817 $304,380 
Applied Sterilization Technologies101,343 81,626 303,059 222,416 
Life Sciences52,032 41,541 158,639 136,435 
Dental23,096 — 65,607 — 
Corporate(55,849)(47,941)(202,461)(158,463)
Total operating income before adjustments$289,889 $190,638 $790,661 $504,768 
Less: Adjustments
Amortization of acquired intangible assets
$75,021 $23,194 $191,552 $62,648 
Acquisition and integration related charges 9,298 11,563 167,698 13,984 
Redomiciliation and tax restructuring costs118 296 228 850 
(Gain) on fair value adjustment of acquisition related contingent consideration
 (500) (500)
Net loss on divestiture of businesses
489 — 893 
Amortization of inventory and property "step up" to fair value 2,237 1,784 96,513 3,101 
COVID-19 incremental costs 7,251  20,460 
Restructuring (credit) charges (207)20 17 110 
Total operating income$202,933 $147,030 $333,760 $404,110 



*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.


STERIS plc
Consolidated Condensed Statements of Cash Flows
(in thousands)
 Nine Months Ended December 31,
 20212020
Operating activities:(Unaudited)(Unaudited)
(Recast)*
Net income$190,817 $310,127 
Non-cash items485,030 184,639 
Changes in operating assets and liabilities(162,767)7,019 
Net cash provided by operating activities513,080 501,785 
Investing activities:
Purchases of property, plant, equipment, and intangibles, net(214,491)(164,497)
Proceeds from the sale of property, plant, equipment, and intangibles1,709 417 
Acquisition of businesses, net of cash acquired(547,353)(869,431)
Other (2,392)
Net cash used in investing activities(760,135)(1,035,903)
Financing activities:
Proceeds from issuance of senior public notes1,350,000 — 
Proceeds from term loans650,000 550,000 
Payments on term loans(125,000)— 
Payments on long-term obligations(721,284)(35,000)
Payments on convertible debt(371,361)— 
Proceeds (payments) under credit facilities, net(203,805)23,782 
Deferred financing fees and debt issuance costs(17,247)(3,122)
Acquisition related deferred or contingent consideration(32,583)(2,968)
Repurchases of ordinary shares(27,628)(14,560)
Cash dividends paid to ordinary shareholders(120,118)(99,696)
Distributions to noncontrolling interest(997)(627)
Contributions from noncontrolling interest3,672 2,258 
Payment for acquisition of subsidiary's interests in noncontrolling interest (3,552)
Stock option and other equity transactions, net6,789 26,018 
Net cash provided by financing activities390,438 442,533 
Effect of exchange rate changes on cash and cash equivalents(4,825)24,506 
Increase (decrease) in cash and cash equivalents138,558 (67,079)
Cash and cash equivalents at beginning of period220,531 319,581 
Cash and cash equivalents at end of period$359,089 $252,502 
The following table presents 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 (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 pay cash dividends, fund growth outside of core operations, fund future debt principal repayments, and repurchase shares. STERIS's calculation of free cash flows may vary from other companies.
Nine Months Ended December 31,
20212020
(Unaudited)(Unaudited)
(Recast)*
Calculation of Free Cash Flow:
Cash flows from operating activities
$513,080 $501,785 
Purchases of property, plant, equipment, and intangibles, net
(214,491)(164,497)
Proceeds from the sale of property, plant, equipment, and intangibles
1,709 417 
Free Cash Flow$300,298 $337,705 






*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.



STERIS plc
Consolidated Condensed Statements of Cash Flows (Continued)
(in thousands)
 Twelve Months Ended
March 31,
Calculation of free cash flow for outlook:2022
(Outlook)**
Cash flows from operating activities$720,000
Purchases of property, plant, equipment, and intangibles, net(300,000)
Free Cash Flow$420,000
** All amounts are estimates.
*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.


STERIS plc
Non-GAAP Financial Measures
(in thousands, except per share data)
Non-GAAP financial measures are presented with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented.
Management and the Board of Directors believe that the presentation of these non-GAAP financial measures, when considered along with our GAAP financial measures and the reconciliation to the corresponding GAAP financial measures, provides the reader with a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure. It is important for the reader to note that the non-GAAP financial measure used may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies.
To measure the percentage organic revenue growth, the Company removes the impact of acquisitions and divestitures that affect the comparability and trends in revenue. To measure the percentage constant currency organic revenue growth, the impact of changes in currency exchange rates and acquisitions and divestitures that affect the comparability and trends in revenue are removed. The impact of changes in currency exchange rates is calculated by translating current year results at prior year average currency exchange rates.
Three months ended December 31, (unaudited)
As reported, GAAPImpact of AcquisitionsImpact of DivestituresImpact of Foreign Currency MovementsGAAP GrowthOrganic GrowthConstant Currency Organic Growth
20212020202120202021202120212021
Segment revenues:
Healthcare $759,675 $521,662 $210,296 $— $47 45.6 %5.3 %5.3 %
Applied Sterilization Technologies216,298 176,462 10,236 — (2,034)22.6 %16.8 %17.9 %
Life Sciences127,908 110,800 7,124 — (440)15.4 %9.0 %9.4 %
Dental105,090 — 105,090 — — — %— %— %
Total$1,208,971 $808,924 $332,746 $— $(2,427)49.5 %8.3 %8.6 %
Nine months ended December 31, (unaudited)
As reported, GAAPImpact of AcquisitionsImpact of DivestituresImpact of Foreign Currency MovementsGAAP GrowthOrganic GrowthConstant Currency Organic Growth
20212020202120202021202120212021
Segment revenues:
Healthcare $2,106,626 $1,392,247 $526,894 $— $11,508 51.3 %13.5 %12.6 %
Applied Sterilization Technologies630,092 498,371 19,938 — 6,954 26.4 %22.4 %21.0 %
Life Sciences381,706 343,370 17,374 — 3,598 11.2 %6.1 %5.1 %
Dental255,954 — 255,954 — — — %— %— %
Total$3,374,378 $2,233,988 $820,160 $ $22,060 51.0 %14.3 %13.3 %




















*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.



STERIS plc
Non-GAAP Financial Measures (Continued)
(in thousands, except per share data)

Three months ended December 31, (unaudited) (recast)*
Gross ProfitIncome from OperationsNet Income attributable to shareholdersDiluted EPS
20212020202120202021202020212020
GAAP$538,114 $345,861 $202,933 $147,030 $143,623 $114,501 $1.42 $1.33 
Adjustments:
Amortization of acquired intangible assets 2,871 5,709 75,021 23,194 
Acquisition and integration related charges 1,611 120 9,298 11,563 
Redomiciliation and tax restructuring costs — 118 296 
(Gain) on fair value adjustment of acquisition related contingent consideration  —  (500)
Net loss on divestiture of businesses — 489 — 
Amortization of inventory and property "step up" to fair value 2,184 1,786 2,237 1,784 
COVID-19 incremental costs 3,867  7,251 
Restructuring (credit) charges  — (207)20 
Consideration received for pre-acquisitition arrangement (7)
Net impact of adjustments after tax*69,695 34,738 
Net EPS impact0.70 0.40 
Adjusted$544,780 $357,343 $289,889 $190,638 $213,318 $149,232 $2.12 $1.73 
* The tax expense includes both the current and deferred income tax impact of the adjustments.


Nine months ended December 31, (unaudited) (recast)*
Gross ProfitIncome from OperationsNet Income attributable to shareholdersDiluted EPS
20212020202120202021202020212020
GAAP$1,444,740 $963,282 $333,760 $404,110 $191,627 $309,956 $1.97 $3.61 
Adjustments:
Amortization of acquired intangible assets 8,347 11,059 191,552 62,648 
Acquisition and integration related charges 7,030 313 167,698 13,984 
Redomiciliation and tax restructuring costs — 228 850 
(Gain) on fair value adjustment of acquisition related contingent consideration  —  (500)
Net loss on divestiture of businesses  — 893 
Amortization of inventory and property "step up" to fair value 88,592 3,096 96,513 3,101 
COVID-19 incremental costs 16,335  20,460 
Restructuring charges  — 17 110 
Consideration received for pre-acquisitition arrangement (826)
Fair value adjustment related to convertible debt, premium liability27,806 — 
Net impact of adjustments after tax*354,120 80,697 
Net EPS impact3.91 0.93 
Adjusted$1,548,709 $994,085 $790,661 $504,768 $573,553 $389,827 $5.88 $4.54 
* The tax expense includes both the current and deferred income tax impact of the adjustments.








*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.



STERIS plc
Non-GAAP Financial Measures (Continued)
(in thousands, except per share data)


FY 2022 OutlookTwelve Months
Ended March 31, 2022
(Outlook)***
Net income per diluted share$3.12 - $3.22
Amortization of acquired intangible assets2.10
Acquisition and integration related charges1.63
Amortization of inventory and property "step up" to fair value0.78
Fair value adjustment related to convertible debt, premium liability0.22
Adjusted net income per diluted share$7.85 - $7.95
*** All amounts are estimates.


*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.


STERIS plc
Unaudited Supplemental Financial Data
Third Quarter Fiscal 2022
For the Periods Ending December 31, 2021 and 2020
FY 2022FY 2021FY 2022FY 2021
Total Company RevenuesQ3Q3YTDYTD
(recast)*(recast)*
Consumables$440,328 $198,466 $1,187,014 $519,652 
Service511,715 433,610 1,502,605 1,218,062 
Total Recurring$952,043 $632,076 $2,689,619 $1,737,714 
Capital Equipment$256,928 $176,848 $684,759 $496,274 
Total Revenues$1,208,971 $808,924 $3,374,378 $2,233,988 
Ireland Revenues$20,086 $20,316 $62,077 $51,779 
Ireland Revenues as a % of Total2 %%2 %%
United States Revenues$851,292 $572,397 $2,383,039 $1,613,554 
United States Revenues as a % of Total70 %71 %71 %72 %
International Revenues$337,593 $216,211 $929,262 $568,655 
International Revenues as a % of Total28 %27 %28 %25 %
Segment DataFY 2022FY 2021FY 2022FY 2021
Q3Q3YTDYTD
Healthcare(recast)*(recast)*
Revenues
Consumables$273,750 $148,839 $750,531 $355,390 
Service268,711 224,968 785,586 629,247 
Total Recurring$542,461 $373,807 $1,536,117 $984,637 
Capital Equipment217,214 147,855 570,509 407,610 
Total Healthcare Revenues$759,675 $521,662 $2,106,626 $1,392,247 
Segment Operating Income$169,267 $115,412 $465,817 $304,380 
Applied Sterilization Technologies
Applied Sterilization Technologies Revenues$216,298 $176,462 $630,092 $498,371 
Segment Operating Income$101,343 $81,626 $303,059 $222,416 
0
Life Sciences
Revenues
Consumables$61,096 $49,627 $179,380 $164,262 
Service36,400 32,180 104,983 90,444 
Total Recurring$97,496 $81,807 $284,363 $254,706 
Capital Equipment30,412 28,993 97,343 88,664 
Total Life Sciences Revenues$127,908 $110,800 $381,706 $343,370 
Segment Operating Income$52,032 $41,541 $158,639 $136,435 
Total Dental Revenues$105,090 $— $255,954 $— 
Segment Operating Income$23,096 $— $65,607 $— 
Corporate
Operating loss$(55,849)$(47,941)$(202,461)$(158,463)
Other DataFY 2022FY 2021FY 2022FY 2021
Q3Q3YTDYTD
(recast)*(recast)*
Healthcare Backlog **$381,601 $215,543 
Life Sciences Backlog **117,235 81,981 
Total Backlog **$498,836 $297,524 
GAAP Income Tax Rate21.6 %17.8 %21.5 %18.8 %
Adjusted Income Tax Rate21.0 %18.4 %21.3 %19.0 %
** Backlog totals exclude Cantel Medical.
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.
*Certain amounts have been recast to reflect the change in inventory accounting method, as described in our Annual Report on Form 10-K filed with the SEC on May 28, 2021.

View differences made from one to another to evaluate Steris Plc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Steris Plc.

Continue

Assess how Steris Plc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Steris Plc's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Steris Plc provided additional information to their SEC Filing as exhibits

Ticker: STE
CIK: 1757898
Form Type: 8-K Corporate News
Accession Number: 0001757898-22-000004
Submitted to the SEC: Tue Feb 08 2022 4:36:47 PM EST
Accepted by the SEC: Tue Feb 08 2022
Period: Tuesday, February 8, 2022
Industry: Orthopedic Prosthetic And Surgical Appliances And Supplies
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/ste/0001757898-22-000004.htm