On November 1, 2023, Sotera Health Co (SHC, Financial), a leading global provider of mission-critical end-to-end sterilization solutions, lab testing, and advisory services for the healthcare industry, announced its financial results for the third quarter and year-to-date 2023.
Financial Performance
For Q3 2023, SHC reported net revenues of $263 million, marking a 5.8% increase compared to the $249 million in Q3 2022. However, the company reported a net loss of $14 million, or $0.05 per diluted share, including a previously disclosed legal settlement of $35 million. This contrasts with a net income of $25 million, or $0.09 per diluted share, in Q3 2022. Adjusted EBITDA for Q3 2023 increased by 7.3% to $134 million compared to $125 million in Q3 2022.
Business Segment Highlights
For Q3 2023, Sterigenics’ net revenues were $168 million, a 6.7% increase compared to the same quarter a year ago. Nordion's net revenues were $40 million, a 14.3% increase compared to Q3 2022. However, Nelson Labs reported a decrease in net revenues by 2.1% to $55 million compared to the same period last year.
Balance Sheet and Liquidity
As of September 30, 2023, SHC had $2.3 billion of total debt and $245 million of unrestricted cash and cash equivalents, compared to $2.0 billion in total debt and $395 million of unrestricted cash and cash equivalents as of December 31, 2022. The company had no balance outstanding on its revolving credit facility, and its net leverage ratio was 4.2x.
2023 Outlook
Despite ongoing market softness, SHC anticipates its 2023 results will be at the lower end of its previously announced outlook. The company expects net revenues in the range of $1.035 to $1.055 billion, representing growth of approximately 3% to 5% compared to the prior year, and Adjusted EBITDA in the range of $520 to $535 million.
CEO Commentary
“Today I am pleased to report both top and bottom-line growth for the third quarter-2023,” said Chairman and Chief Executive Officer, Michael B. Petras, Jr. “Our ability to grow revenue, improve margin performance and generate cash in a challenging market is a testament to the resilience of our business model. Our team remains focused on serving our customers and executing our strategy while delivering on our mission of Safeguarding Global Health®.”
Explore the complete 8-K earnings release (here) from Sotera Health Co for further details.
