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STE · Steris

22 filings

10-Q

STE 10-Q Quarterly Reports

Steris - 22 quarterly reports

Filing record · 2019–202610-K810-Q228-K64

2027-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2026
STERIS plc reported first-quarter fiscal 2027 results for the three months ended June 30, 2026, with revenues rising 7.3% to $1,492.7 million from $1,391.1 million, and income from operations increasing to $285.8 million from $246.0 million. Gross profit percentage improved to 45.8% from 45.1%, driven by pricing, productivity and mix, partly offset by inflation. Net income attributable to shareholders was $200.1 million, or $2.04 diluted earnings per share, compared with $177.4 million, or $1.79, a year earlier. Healthcare revenues grew 7.6% to $1,048.3 million, AST grew 5.8% to $297.6 million, and Life Sciences grew 8.6% to $146.7 million. Cash flow weakened: operating cash flow was $367.1 million versus $420.0 million, and free cash flow was $279.6 million versus $326.5 million, which the company attributed to a significantly lower working capital contribution. The company repurchased 0.5 million shares for $100.0 million under a new $1,000.0 million repurchase program authorized May 5, 2026, leaving $900.0 million available. Total debt was $1,893.7 million at June 30, 2026, down from $1,931.7 million at March 31, 2026, and the company stated it was in compliance with all financial covenants. Subsequent to quarter-end, on August 5, 2026, the company announced a restructuring to consolidate formulated chemistries manufacturing into a new Center of Excellence in North Carolina, with expected pre-tax charges of approximately $55 million to $70 million, the majority of which are expected to be cash, and completion anticipated in fiscal 2030. The filing also notes that substantially all payment obligations under the Illinois ethylene oxide settlement have been satisfied as of July 31, 2026.
Aug 7, 2026
2026-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2025
STERIS plc's 10-Q for the quarter ended December 31, 2025 shows continued top-line growth. Total revenues rose 9.2% to $1,496.2 million for the three months and 9.3% to $4,347.5 million for the nine months ended December 31, 2025, driven by higher volume and pricing, with Healthcare, AST and Life Sciences all contributing. Income from operations was $273.2 million for the quarter versus $245.3 million a year earlier, and $785.0 million for the nine months versus $650.5 million. Net income attributable to shareholders was $192.9 million for the quarter and $562.1 million for the nine months. Gross profit percentage was 43.8% for the quarter, down from 44.5%, as tariffs, inflation and mix offset pricing and productivity gains, while the nine-month gross profit percentage was 44.4% versus 44.3%. Cash generation and balance sheet strengthened. Net cash from operating activities was $1,006.0 million for the nine months, and free cash flow was $737.6 million, versus $588.1 million a year earlier. Total debt declined to $1,898.4 million from $2,043.7 million at March 31, 2025, after repayment of $125.0 million of Private Placement Senior Notes, and the debt-to-total capital ratio fell to 21.1% from 25.2% a year earlier. The company repurchased $150.0 million of shares in the nine months and paid $1.83 per share in dividends, with $150.0 million remaining under its repurchase authorization. The filing also flags ongoing items. The company agreed to settle Illinois ethylene oxide (EO) claims for up to $48.2 million, with a claims administration process expected to continue into fiscal 2027. The IRS issued Notices of Deficiency tied to a cumulative potential liability of about $50.0 million, which the company is contesting in U.S. Tax Court without reserves. The Restructuring Plan's total pre-tax expense since inception is $109.8 million, and further costs are not expected to be significant in fiscal 2026.
Feb 6, 2026
2026-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2025
STERIS plc's 10-Q for the fiscal second quarter ended September 30, 2025 shows revenues rising 9.9% to $1,460.3 million for the three months and 9.3% to $2,851.4 million for the six months, with growth across all three segments (Healthcare, AST, and Life Sciences) driven by higher volume and pricing. Gross profit percentage improved to 44.2% in the quarter from 43.6%, and income from operations rose to $265.8 million from $219.7 million, aided by lower restructuring expenses and lower interest expense of $14.9 million versus $19.7 million a year earlier. Net income attributable to shareholders was $191.9 million, or $1.94 diluted per share, compared with $150.0 million, or $1.51 diluted per share, in the prior-year quarter. Cash generation was strong: operating cash flow was $707.8 million and free cash flow was $527.7 million for the six months, versus $554.5 million and $344.5 million a year earlier. The company repaid $125.0 million of Private Placement Senior Notes, reduced its debt-to-total capital ratio to 21.3% from 25.3% a year earlier, repurchased $100.0 million of shares, and paid $1.20 per share in dividends for the six months. Remaining share repurchase availability was $200.0 million at quarter end. Key items to monitor include an Illinois ethylene oxide litigation settlement with up to $48.2 million to settle claims, a pending IRS matter with a cumulative potential tax liability of approximately $50.0 million that the company is contesting, and an effective tax rate that rose to 23.9% in the quarter from 22.3%.
Nov 6, 2025
2026-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2025
STERIS plc reported results for the first quarter of fiscal 2026, the three months ended June 30, 2025. Total revenues rose 8.7% to $1,391.1 million from $1,279.5 million, driven by higher volume and pricing, with all three segments contributing. Gross profit percentage improved to 45.1% from 44.7%, and income from operations increased to $246.0 million from $185.5 million, helped by higher volume and pricing and lower restructuring expenses ($1.8 million versus $25.7 million in the prior-year income statement line). Net income attributable to shareholders was $177.4 million, or $1.79 diluted per share, compared with $145.4 million, or $1.46 diluted per share, in the prior year, which included discontinued operations. Cash flow was strong. Net cash from operating activities was $420.0 million, versus $303.7 million a year earlier, and free cash flow was $326.5 million, versus $195.7 million. The filing attributes the increase to higher earnings and working capital, mainly a higher accounts payable balance from timing of disbursements. The company repaid $125.0 million of Private Placement Senior Notes, and total debt fell to $1,903.1 million from $2,043.7 million at March 31, 2025. The debt-to-total capital ratio was 21.5%, down from 23.6% at March 31, 2025. The company paid $0.57 per share in dividends and made no share repurchases under its program during the quarter, leaving $300.0 million of authorization available. The filing also covers risk items. The company has reached binding term sheets to settle substantially all pending Illinois ethylene oxide personal injury claims, with up to $48.2 million in settlements, of which a liability remains accrued. Separately, the company is contesting IRS Notices of Deficiency for fiscal and calendar 2018 that could imply a cumulative tax liability of about $50.0 million, with no reserves established. The filing notes that the recently enacted One Big Beautiful Bill Act is still under assessment for its impact on the consolidated financial statements.
Aug 7, 2025
2025-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2024
STERIS plc (STE) reported results for the third quarter and first nine months of fiscal 2025 (quarter ended December 31, 2024) in this Form 10-Q. Total revenues rose 5.6% to $1,370.6 million in the quarter and 7.0% to $3,979.0 million for the nine months, with the filing attributing the growth to higher volume and pricing. Income from operations was $245.3 million for the quarter versus $226.5 million a year earlier, and net income attributable to shareholders was $173.5 million, or $1.75 diluted EPS from net income for the quarter. Gross profit percentage improved to 44.5% in the quarter from 43.2%, while restructuring expenses increased to $33.1 million for the nine months under the Restructuring Plan announced in May 2024. Balance sheet and cash flow changes were significant. The company completed the sale of its Dental segment, which closed May 31, 2024 for total cash consideration of $787.5 million, and the filing states that a majority of the proceeds were used to pay off existing debt. Total debt fell to $2.16 billion from $3.21 billion at March 31, 2024, and the debt-to-total capital ratio was 25.2% at December 31, 2024, versus 33.7% at March 31, 2024. Net cash provided by operating activities was $887.3 million for the nine months, and free cash flow was $588.1 million, compared with $457.0 million a year earlier. The company repurchased 907,158 shares for $200.0 million during the nine months and paid $1.66 per share in cash dividends. The filing also discloses a pending legal matter: an ethylene oxide litigation in Illinois involving approximately 250 individual plaintiffs, where a first trial ended in a mistrial on January 17, 2025 and retrial is scheduled for May 2025. Management considers a loss reasonably possible but states that a range of loss cannot be reasonably estimated, and no amounts have been accrued. Separately, the company received two IRS Notices of Deficiency with a potential cumulative tax liability of approximately $50 million, which it is contesting in U.S. Tax Court, with no reserves established.
Feb 7, 2025
2025-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2024
STERIS plc's 10-Q for the quarter ended September 30, 2024 shows revenues up 7.3% to $1,328.9 million for the three months and up 7.7% to $2,608.4 million for the six months, driven by higher volume (including the BD assets acquired in August 2023) and pricing. Income from operations rose to $219.7 million for the quarter from $191.6 million, and net income attributable to shareholders was $150.0 million versus $115.3 million. Diluted EPS from continuing operations was $1.51 for the quarter compared with $1.20 a year earlier. Gross profit percentage slipped to 43.6% from 44.1%, reflecting higher labor and overhead costs, and the company recorded $30.9 million of restructuring expense in the first half under a plan that includes eliminating fewer than 300 positions. The balance sheet and cash flow improved meaningfully. The company sold its Dental segment, closed May 31, 2024, for $787.5 million in cash, and used most of the proceeds to repay debt. Total debt fell to $2,236.2 million at September 30, 2024 from $3,206.1 million at March 31, 2024, and the debt-to-total capital ratio dropped to 25.3% from 33.7%. Operating cash flow was $554.5 million for the first six months and free cash flow was $344.5 million. Shareholders received $1.09 per share in dividends during the period, and the company repurchased $100.0 million of shares. On October 7, 2024, STERIS entered a new $1,100 million revolving credit facility that matures five years later, replacing the previous facility. The filing also discloses an ethylene oxide lawsuit in Illinois involving approximately 275 plaintiffs, with a first trial scheduled for November 2024. The company states it cannot reasonably estimate a range of loss and believes the outcome will not have a material adverse effect on its consolidated financial position or results of operations.
Nov 7, 2024
2025-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2024
STERIS plc's first-quarter fiscal 2025 10-Q (quarter ended June 30, 2024) shows revenues up 8.1% to $1,279.5 million from $1,183.4 million, with income from operations of $185.5 million, down from $197.8 million, as restructuring expenses of $25.7 million and higher compensation costs weighed on results. Net income attributable to shareholders was $145.4 million, versus $123.6 million a year earlier, helped by income from discontinued operations of $5.6 million and an $18.8 million pre-tax gain on the sale of the Controlled Environment Certification Services business. Diluted EPS from continuing operations was $1.41, compared with $1.31 a year earlier. The balance sheet deleveraged sharply following the divestiture of the Dental segment, which closed on May 31, 2024 for total cash consideration of $787.5 million, plus up to $12.5 million contingent. Proceeds of $809.6 million were used largely to repay term loans ($638.1 million) and revolving credit facility borrowings ($253.2 million net). Total debt fell to $2.32 billion from $3.21 billion at March 31, 2024, and the debt-to-total capital ratio dropped to 26.7% from 33.7%. Operating cash flow was $303.7 million and free cash flow was $195.7 million, versus $214.5 million a year earlier, which the company attributed to timing of capital spending. Management launched a targeted restructuring plan in May 2024, with total pre-tax restructuring expense of $72.5 million recorded since inception, fewer than 300 positions being eliminated, and approximately $28.0 million of further costs expected in fiscal 2025. The company expects roughly $25.0 million per year of improved operating income, mostly from fiscal 2026 onward. Healthcare revenues grew 10.1% to $901.2 million, while Healthcare backlog declined to $362.0 million from $491.7 million a year earlier.
Aug 8, 2024
2024-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2023
STERIS plc (STE) filed this Form 10-Q on February 8, 2024 for the third quarter and first nine months of fiscal 2024, ended December 31, 2023. Revenues rose 14.8% to $1,395.6 million for the quarter and 12.6% to $4,022.5 million for the nine months, driven by higher volume (including the BD surgical instrumentation assets acquired August 2, 2023 for $539.8 million) and pricing. Operating income was $216.2 million for the quarter versus $190.8 million a year earlier, and $590.9 million for the nine months versus $42.8 million, the prior-year period having included a one-time $490.6 million goodwill impairment on the Dental segment. Net income attributable to shareholders was $379.6 million for the nine months, compared with a net loss of $80.2 million a year earlier. Cash flow strengthened: operating cash flow was $718.5 million and free cash flow was $457.0 million for the nine months, versus $541.1 million and $262.8 million a year earlier. Total debt rose to $3.31 billion from $3.08 billion at March 31, 2023, and the debt-to-total capital ratio edged up to 34.0% from 33.6%. The company paid $1.51 per share in dividends during the nine months and had no share repurchases under its $500 million authorization during the period. The filing also notes that Dental segment revenue declined 5.4% in the quarter, partly due to a large customer's cybersecurity-related disruption, and that AST margins fell on higher labor and energy costs. In November 2023 the company received two IRS Notices of Deficiency tied to fiscal 2018 deemed dividend and withholding tax matters, with a cumulative potential liability of approximately $50 million, which management is contesting; no reserves have been established and an unfavorable outcome is not expected to be material to financial position but could be material to results for a given period.
Feb 8, 2024
2024-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2023
STERIS plc's 10-Q for the quarter ended September 30, 2023 shows revenue growth and higher operating income compared with the prior-year quarter, which included a $490.6 million Dental goodwill impairment. Total revenues were $1,342.4 million for the three months ended September 30, 2023, up 11.8% from $1,200.5 million, and $2,626.9 million for the six months, up 11.5%. Management attributes the increases to organic growth, primarily in Healthcare, from higher volume and pricing, plus added volume from the BD surgical instrumentation and sterilization container asset acquisition completed August 2, 2023 for $539.8 million. Operating income was $185.9 million for the quarter versus an operating loss of $(306.4) million a year earlier, and net income attributable to shareholders was $115.3 million, or $1.16 per diluted share, versus a net loss of $(315.3) million. Profitability pressures remained. Gross profit percentage slipped to 44.2% from 44.3% in the second quarter, as pricing and mix gains were offset by productivity, material and labor inflation. SG&A rose 17.8% in the quarter, driven by compensation, professional fees and bad debt expense, and interest expense increased $10.8 million on higher floating-rate debt. Total debt rose to $3,437.2 million from $3,078.7 million at March 31, 2023, and the debt-to-total capital ratio reached 35.7%. Cash flow from operations was $427.2 million and free cash flow was $284.7 million for the first six months, both up from the prior year, and the company paid $0.99 per share in dividends year to date. Segment results were mixed. Healthcare revenue rose 18.7% in the quarter to $870.1 million with operating income up 23.4%. AST revenue grew only 1.2%, with operating income flat as higher labor and energy costs offset pricing. Dental revenue fell 4.9% on lower volume from customer destocking, and its operating income declined 12.6%. Life Sciences revenue grew 5.8%, though its operating income rose just 3.4%. The company has $500 million authorized under a new share repurchase program but made no repurchases in the first half of fiscal 2024.
Nov 7, 2023
2024-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2023
STERIS plc (STE) reported its first-quarter fiscal 2024 results for the three months ended June 30, 2023 in this Form 10-Q filed August 8, 2023. Total revenues rose 11.1% to $1,284.5 million from $1,156.5 million, driven mainly by higher volume and pricing, particularly in the Healthcare segment, which grew 17.2% to $818.9 million. Gross profit percentage slipped to 44.6% from 44.8% as pricing (150 basis points) was more than offset by material and labor inflation (170 basis points). Income from operations increased to $188.9 million from $158.4 million, while net income attributable to shareholders was $123.6 million, or $1.25 per diluted share, versus $111.3 million, or $1.10 per diluted share, a year earlier. Interest expense rose $9.7 million to $32.4 million, mainly from higher rates on floating rate debt. Cash flow improved, with net cash from operating activities of $281.1 million and free cash flow of $214.5 million, compared with $231.7 million and $117.1 million a year earlier. Capital expenditures fell to $66.6 million from $115.9 million, and the company repaid $15.0 million of term loans and made net payments of $144.7 million under credit facilities. Total debt was $2.92 billion at June 30, 2023, down from $3.08 billion at March 31, 2023, and the debt-to-total capital ratio was 32.2%. The board authorized a new share repurchase program of up to $500,000 thousand on May 3, 2023, under which no shares had been repurchased as of June 30, 2023. After the quarter end, on June 20, 2023, STERIS agreed to purchase surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company for $540.0 million, funded entirely with additional debt. The transaction was completed on August 2, 2023, and the assets will be integrated into the Healthcare segment. The company stated that it cannot yet provide the purchase price allocation at the time of filing.
Aug 8, 2023
2023-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2022
STERIS plc's 10-Q for the quarter ended December 31, 2022 shows revenues of $1,215,994 thousand for the three months, up from $1,208,971 thousand a year earlier, and $3,573,002 thousand for the nine months, up from $3,374,378 thousand. Results were heavily affected by a non-cash goodwill impairment loss of $490,565 thousand recorded in the second quarter on the Dental segment. For the nine months, the company reported a net loss attributable to shareholders of $(80,195) thousand, or $(0.80) per diluted share, compared with net income of $191,627 thousand, or $1.97 per diluted share, a year earlier. Income from operations was $42,783 thousand for the nine months, versus $333,760 thousand in the prior-year period. The company cited supply chain disruptions that delayed approximately $46 million in Healthcare and Life Sciences capital equipment shipments in the third quarter. Cash flow from operations was $541,148 thousand for the nine months, versus $513,080 thousand a year earlier, while free cash flow, as the company defines it, was $262,792 thousand compared with $300,298 thousand. Total debt was $3,061,575 thousand at December 31, 2022, and the debt-to-total capital ratio was 33.6%. The company paid cash dividends of $1.37 per share for the nine months and repurchased $153,952 thousand of ordinary shares. The Healthcare segment's backlog was $540.4 million at December 31, 2022. Segment operating income for the nine months was $497,233 thousand in Healthcare, $323,238 thousand in Applied Sterilization Technologies, $149,173 thousand in Life Sciences, and $67,992 thousand in Dental. Management stated that the COVID-19 pandemic and related macroeconomic conditions, including inflation and supply chain issues, continue to affect operations. The filing also discloses an IRS notice of proposed adjustments with a cumulative tax liability of approximately $50,000 thousand, which the company is contesting without reserves established.
Feb 8, 2023
2023-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2022
STERIS plc (STE) reported its second quarter of fiscal 2023 (three months ended September 30, 2022) with total revenues of $1,200.5 million, up 0.3% from $1,197.0 million a year earlier, while operating results were a loss of $(306.4) million, driven by a non-cash goodwill impairment loss of $490.6 million recorded on the Dental segment. Net loss attributable to shareholders was $(315.3) million, or $(3.15) per diluted share, compared with net income of $69.8 million, or $0.69 per diluted share, in the prior-year quarter. Gross profit percentage improved to 44.3% from 40.1%, and the filing attributes revenue growth to organic gains in Healthcare, Applied Sterilization Technologies and Life Sciences, offset by currency fluctuations and divestitures. For the first half of fiscal 2023, revenues rose 8.8% to $2,357.0 million, with the company citing $166.2 million of added volume from the Cantel acquisition. Operating cash flow was $335.6 million and free cash flow was $138.2 million, compared with $268.8 million and $135.8 million a year earlier. Total debt was $3,024.9 million at September 30, 2022, and the debt-to-total capital ratio rose to 34.3% from 32.1% at March 31, 2022. The company declared and paid cash dividends of $0.90 per share in the first half and had $249.4 million of remaining share repurchase authorization. The filing notes that supply chain disruptions delayed approximately $70 million of Healthcare and Life Sciences capital equipment shipments in the second quarter, and that the company is contesting IRS notices of proposed tax adjustment with a cumulative potential liability of approximately $50 million, for which no reserves have been established.
Nov 9, 2022
2023-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2022
STERIS plc's first-quarter fiscal 2023 results (three months ended June 30, 2022) show revenues of $1,156.5 million, up 19.4% from $968.4 million a year earlier. The filing attributes the growth to organic gains in all segments and $166.2 million of added volume from Cantel Medical, partly offset by currency fluctuations and the absence of revenue from the Renal care business, which was divested in January 2022. Gross margin percentage rose to 44.8% from 44.0%, and income from operations increased to $158.4 million from $14.3 million, mainly because the prior-year period included $141.0 million of acquisition and integration expenses, most of them related to Cantel. Net income attributable to shareholders was $111.3 million, or $1.10 per diluted share, compared with a net loss of $21.8 million in the prior-year quarter. Cash flow from operations was $231.7 million and free cash flow was $117.1 million, versus $97.4 million and $41.2 million a year earlier. Total debt was $2,997.4 million at June 30, 2022, and the debt-to-total capital ratio was 31.9%, down from 34.3% a year earlier. The company paid a quarterly dividend of $0.43 per share and repurchased 68,177 shares for $14.3 million under its authorization, which had $294.6 million of remaining availability. The filing also flags headwinds. Approximately $35 million of capital equipment shipments were delayed in the quarter by supply chain disruptions, and the company cites inflation, which weighed on gross margin and segment margins. Healthcare segment operating margin declined to 22.4% from 23.0%. The company is also contesting IRS proposed tax adjustments with a cumulative liability of approximately $50,000 thousand, for which it has not established reserves.
Aug 8, 2022
2022-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2021
STERIS plc (STE) reported its third quarter and first nine months of fiscal 2022 (quarter ended December 31, 2021) in this Form 10-Q. Revenues rose 49.5% to $1,208.97 million for the quarter and 51.0% to $3,374.38 million for the nine months, reflecting added volume from the Cantel Medical acquisition (closed June 2, 2021) and other acquisitions, plus organic growth in the Healthcare, Applied Sterilization Technologies and Life Sciences segments. Income from operations was $202.93 million for the quarter, up from $147.03 million, while nine-month operating income fell to $333.76 million from $404.11 million, primarily due to acquisition and integration expenses and incremental amortization tied to Cantel. Net income attributable to shareholders was $143.62 million for the quarter and $191.63 million for the nine months, and diluted EPS was $1.42 and $1.97, respectively. The balance sheet expanded substantially: total assets were $11.69 billion at December 31, 2021, versus $6.57 billion at March 31, 2021, driven by goodwill of $5.12 billion and intangibles of $2.88 billion. Total debt reached $3.30 billion, and the debt-to-total capital ratio rose to 33.3% from 29.8% at March 31, 2021. Operating cash flow was $513.08 million for the nine months and free cash flow was $300.30 million, down from $337.71 million, which management attributed to Cantel integration costs and higher capital expenditures. The company also disclosed that it sold its Renal Care business to Evoqua Water Technologies for approximately $196.0 million, closing January 3, 2022, and that the suspension of share repurchases lifted effective February 10, 2022. The filing notes the Cantel purchase price allocation remains preliminary, and the company is integrating Cantel's internal controls. The Dental segment, new from the Cantel deal, contributed $105.09 million of revenue in the quarter, and three customers accounted for 55.8% of Dental segment revenue in the quarter.
Feb 9, 2022
2022-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2021
STERIS plc's 10-Q for the quarter ended September 30, 2021 shows a company transformed by its June 2, 2021 acquisition of Cantel Medical. Total revenues rose 58.3% to $1,197.0 million for the second quarter and 52.0% to $2,165.4 million for the first half of fiscal 2022, with the filing attributing the growth to organic gains in Healthcare, Applied Sterilization Technologies and Life Sciences, added Cantel and other acquisition volume ($346.1 million in the quarter), and favorable currency movements. Profitability was pressured: gross profit percentage fell to 40.1% from 43.6% in the second quarter, and operating income declined to $116.5 million from $141.3 million, reflecting acquisition and integration expenses ($17.4 million in the quarter, $158.4 million in the first half) and incremental amortization. Net income attributable to shareholders was $69.8 million for the quarter versus $105.9 million a year earlier. The balance sheet and cash flow profile changed materially. Total assets rose to $11.75 billion from $6.57 billion at March 31, 2021, goodwill to $5.13 billion, and intangibles to $2.95 billion, while total debt increased to $3.44 billion. The debt-to-total capital ratio rose to 34.5% from 29.8% at March 31, 2021. Operating cash flow was $268.8 million for the first half, and free cash flow was $135.8 million, down from $185.6 million, which management attributed to Cantel integration costs and higher capital expenditures. Cash dividends were $0.43 per share in the quarter and $0.83 for the first half. The filing also flags the preliminary nature of the Cantel purchase price allocation, a $1,374,000 thousand remaining performance obligations figure, and an IRS notice of proposed tax adjustment with a cumulative tax liability of approximately $50,000 thousand for which no reserves have been established.
Nov 8, 2021
2022-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2021
STERIS plc's first-quarter fiscal 2022 Form 10-Q (quarter ended June 30, 2021) shows revenues of $968.4 million, up 44.8% from $668.9 million a year earlier, with growth in all segments. The increase reflected organic growth in Healthcare and Applied Sterilization Technologies, $141.3 million of added volume from Cantel and other recent acquisitions, and favorable currency movements. Gross margin rose to 44.0% from 43.0%, but operating income fell to $14.3 million from $115.8 million, primarily because of $140.3 million in acquisition and integration expenses tied to the Cantel acquisition, which closed on June 2, 2021. Net loss attributable to shareholders was $21.8 million, or $(0.24) per diluted share, compared with net income of $89.6 million, or $1.05 per diluted share, in the prior-year quarter. The balance sheet and cash flow changed substantially. Total assets rose to $12.10 billion from $6.57 billion at March 31, 2021, and total debt was $3.43 billion. The company issued $1.35 billion of senior public notes and borrowed $650 million under a delayed draw term loan to fund the acquisition. Cash flow from operations was $97.4 million and free cash flow was $41.2 million, both lower than the prior year, which the company attributed to anticipated Cantel-related costs. The debt-to-total capital ratio increased to 34.3% from 29.8% at March 31, 2021. Goodwill of $5.29 billion and intangibles of $3.05 billion now represent a large share of assets, and the Cantel purchase price allocation remains preliminary. Investors should also note a convertible debt premium liability of $198.5 million, which is marked to fair value through non-operating expense and could be material to the fiscal 2022 second quarter. The company reported a $22.9 million fair value adjustment in the quarter. The Cantel convertible notes were converted in full, with settlement in cash for the premium. The company also disclosed a $12 million tax settlement estimate and a possible IRS deemed-dividend adjustment with a cumulative tax liability of about $50 million, which it is contesting. Dental is now a fourth reportable segment, with Dental revenue of $35.2 million in June 2021.
Aug 9, 2021
2021-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2020
STERIS plc filed this Form 10-Q for the third quarter of fiscal 2021, ended December 31, 2020. For the three months ended December 31, 2020, revenues rose 4.5% to $808.9 million from $774.3 million, and income from operations was $147.0 million versus $142.4 million. For the nine months, revenues were $2.23 billion (up 1.2%) and operating income was $402.3 million versus $379.2 million. Net income attributable to shareholders for the nine months was $308.5 million, or $3.59 diluted EPS, compared with $284.3 million and $3.32 a year earlier. Growth was led by Applied Sterilization Technologies and Life Sciences, while Healthcare revenue declined 3.3% for the nine months as deferrable surgical procedures and customer capital spending fell during the COVID-19 pandemic. Cash flow from operations was $501.8 million for the nine months and free cash flow was $337.7 million, both up from the prior year. The balance sheet changed materially after the Key Surgical acquisition, completed November 18, 2020 for a purchase price of $849.7 million net of cash acquired. Funding included a $550.0 million Term Loan, and long-term debt rose to $1.71 billion from $1.15 billion at March 31, 2020. The debt-to-total capital ratio was 30.7% at December 31, 2020, up from 25.3% at March 31, 2020. The most significant item for investors is the pending acquisition of Cantel Medical Corp., announced January 12, 2021, at $84.66 per Cantel share in a cash and stock deal with a total enterprise value of approximately $4.6 billion. STERIS expects to fund the cash portion and repay a significant amount of Cantel's debt with approximately $2.0 billion of new debt, backed by committed bridge financing. The filing also adds risk factors covering closing conditions, deal costs, and increased leverage. Share repurchases remain suspended, with $333.9 million of authorization remaining.
Feb 9, 2021
2021-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2020
STERIS plc's 10-Q for the quarter ended September 30, 2020 shows second-quarter fiscal 2021 revenues of $756.1 million, up 2.6% from $736.8 million a year earlier, with growth in the Applied Sterilization Technologies and Life Sciences segments partly offset by a decline in Healthcare, where capital equipment revenue fell 13.7%. Gross profit percentage rose to 43.6% from 43.2%, and operating income increased to $141.3 million from $126.7 million, driven mainly by lower SG&A expenses as certain costs were suspended or reduced during the COVID-19 pandemic. Net income attributable to shareholders was $105.9 million, and diluted EPS was $1.23 versus $1.11. For the first half of fiscal 2021, revenues were $1,425.1 million, down 0.6%, and operating income was $255.3 million. Operating cash flow was $296.1 million and free cash flow was $185.6 million, versus $162.0 million a year earlier, which the company attributes mainly to working capital improvements and deferred tax payments under government COVID-19 relief programs. The debt-to-total capital ratio fell to 21.9% from 26.9% a year earlier, and long-term indebtedness was reduced to $1.02 billion. Share repurchases remain suspended since April 9, 2020, with $333.9 million of authorization remaining. A major subsequent event is the October 2, 2020 agreement to acquire Key Surgical, LLC for $850.0 million in cash (about $810.0 million net of tax benefits), expected to close before December 31, 2020 and to be funded partly by a new $550.0 million three-year term loan commitment. The company states it cannot yet provide the acquisition-date purchase price allocation.
Nov 6, 2020
2021-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2020
STERIS plc's first quarter of fiscal 2021 (three months ended June 30, 2020) shows revenues of $668.9 million, down 4.0% from $696.8 million a year earlier. The filing attributes the decline mainly to reduced demand in the Healthcare segment from the deferral of deferrable surgical procedures during the COVID-19 pandemic, plus unfavorable currency fluctuations, partly offset by organic growth in Life Sciences from pharma customers focused on vaccines and biologics. Operating income rose to $114.0 million from $110.1 million, mainly because SG&A fell 13.2% as certain expenses were suspended or reduced during the pandemic. Net income attributable to shareholders was $88.2 million, against $84.6 million in the prior-year quarter, and diluted EPS was $1.03 versus $0.99. Cash flow improved, with net cash provided by operating activities of $134.1 million and free cash flow of $67.4 million, compared with $109.3 million and $59.6 million a year earlier. The filing attributes the increase mainly to working capital improvements and deferred tax payments under government COVID-19 relief programs. Cash and cash equivalents fell to $255.6 million from $319.6 million at March 31, 2020, as net payments under credit facilities totaled $95.8 million. Management also stated it will not refinance the senior note due in August 2020 and will use cash on hand to satisfy it. Share repurchases were suspended on April 9, 2020, and the quarterly dividend was $0.37 per share. The company states that the COVID-19 pandemic has not had a significant impact on operations to date, though it expects continued negative effects on some operations, and the full impact cannot be reasonably estimated. The filing also discloses IRS notices of proposed tax adjustment related to intercompany debt interest deductibility, with a cumulative potential liability of approximately $40 million, which the company is contesting and has not reserved for.
Aug 7, 2020
2020-Q3
Steris Quarterly Report for Q3 Ended Dec 31, 2019
STERIS plc filed this Form 10-Q for the third quarter and first nine months of fiscal 2020, ended December 31, 2019. Revenues rose 11.2% to $774.3 million for the quarter and 9.6% to $2,207.9 million for the nine months, which the filing attributes primarily to organic growth in all business segments, partly offset by unfavorable currency fluctuations. Operating income increased to $142.4 million for the quarter from $69.6 million, and to $379.2 million for the nine months from $270.6 million, mainly due to lower restructuring expenses, higher volumes and better gross margin. Gross profit percentage improved to 42.8% for the quarter and 43.3% for the nine months, from 41.2% and 41.7% a year earlier. Net income attributable to shareholders was $104.9 million for the quarter and $284.3 million for the nine months. Cash flow from operations was $391.3 million for the nine months, up from $360.6 million, while free cash flow declined to $238.1 million from $252.9 million, primarily due to higher capital expenditures. Capital expenditures were $153.6 million, mainly related to expansion projects in the Applied Sterilization Technologies and Healthcare Specialty Services segments. The debt-to-total capital ratio fell to 25.2% from 28.6% a year earlier, and long-term indebtedness was $1,137.0 million at December 31, 2019. The company paid $91.6 million in dividends ($1.08 per share) and repurchased $30.0 million of shares in the first nine months, with approximately $349.0 million of remaining repurchase authorization. The filing also discloses that the company received IRS notices proposing a cumulative tax liability of approximately $40,000 thousand related to deductibility of intercompany interest, which the company is contesting without establishing reserves. The filing also notes an EO sterilization regulatory risk factor affecting the Applied Sterilization Technologies segment.
Feb 10, 2020
2020-Q2
Steris Quarterly Report for Q2 Ended Sep 30, 2019
STERIS plc's Form 10-Q for the quarter ended September 30, 2019 reports revenues of $736.8 million for the three months ended September 30, 2019, up 8.5% from $679.0 million a year earlier, and $1,433.6 million for the six months, up 8.8%. The filing attributes the growth primarily to organic growth in all business segments, partly offset by unfavorable currency fluctuations. Gross profit percentage rose to 43.2% in the second quarter from 41.9%, and operating income increased to $126.7 million from $106.6 million. Net income attributable to shareholders was $94.8 million, or $1.11 per diluted share, versus $77.5 million, or $0.91 per diluted share, in the prior-year quarter. For the first half of fiscal 2020, cash flow from operations was $260.0 million and free cash flow was $162.0 million, compared with $169.7 million in the prior-year period, a decline the filing attributes primarily to higher capital expenditures. Capital expenditures were $98.2 million, reflecting expansion projects in the Applied Sterilization Technologies and Healthcare Specialty Services segments. The company completed several tuck-in acquisitions for an aggregate purchase price of approximately $88.8 million, and its debt-to-total capital ratio was 26.9% at September 30, 2019, compared with 27.1% at March 31, 2019. Cash dividends were $0.71 per share for the first half. The filing also discloses a Fiscal 2019 Restructuring Plan involving closure of two manufacturing facilities in Brazil and England, with fewer than 200 positions eliminated, and notes that the IRS has issued proposed adjustments that would result in a cumulative tax liability of approximately $40 million, which the company is contesting without having established reserves.
Nov 7, 2019
2020-Q1
Steris Quarterly Report for Q1 Ended Jun 30, 2019
STERIS plc filed this Form 10-Q for the first quarter of fiscal 2020, ended June 30, 2019. Revenues rose 9.1% to $696.8 million from $638.8 million a year earlier, which the company attributes to organic growth in all business segments, partly offset by unfavorable currency fluctuations. Gross margin improved to 43.9% from 42.1%, and operating income increased to $110.1 million from $94.4 million. Net income attributable to shareholders was $84.6 million, or $0.99 per diluted share, compared with $70.0 million, or $0.82 per diluted share, in the prior-year quarter. The effective tax rate fell to 14.7% from 15.4%. Cash flow from operations was $109.3 million, up from $100.8 million, but free cash flow declined to $59.6 million from $75.8 million, which the company attributes mainly to higher capital expenditures. Capital spending of $49.8 million related primarily to expansion projects in the Applied Sterilization Technologies and Healthcare Specialty Services segments. The debt-to-total capital ratio was 27.2%, compared with 30.0% a year earlier. The company also made two minor acquisitions for about $35.0 million, declared $0.34 per share in quarterly dividends, and repurchased 60,000 shares for $8.6 million. Its share repurchase authorization had about $70.4 million remaining at June 30, 2019, and the board approved an additional $300.0 million on July 30, 2019. The filing also discloses that the company completed its redomiciliation from the United Kingdom to Ireland on March 28, 2019. An IRS notice proposes a tax liability of approximately $25,000 thousand relating to the deductibility of intercompany interest for fiscal 2016 and 2017, which the company is contesting without establishing reserves. The filing also describes an ongoing fiscal 2019 restructuring plan that includes closing two manufacturing facilities and eliminating fewer than 200 positions.
Aug 7, 2019