Q2 2024 Sotera Health Co Earnings Call Transcript
Key Points
- Sotera Health Co (SHC) reported an 8.3% increase in total company revenues compared to Q2 2023, with an 8.8% increase on a constant currency basis.
- Adjusted EBITDA grew by 6.9% year-over-year, reaching $137 million.
- Nordion segment saw a significant revenue increase of 29% compared to Q2 2023, driven by favorable volume and mix.
- Nelson Labs delivered its third consecutive quarter of top-line growth, with a 4% increase in revenue compared to Q2 2023.
- The company successfully completed a $2.3 billion refinancing of its debt structure, reducing expected 2024 interest expense by approximately $5 million and extending maturities to 2031.
- Adjusted EPS for Q2 2024 was $0.19, a slight decrease from $0.20 in Q2 2023, primarily due to higher interest expenses.
- Net income for Q2 2024 was $9 million, down from $24 million in Q2 2023, impacted by charges related to debt refinancing.
- Adjusted EBITDA margins declined by 68 basis points to 49.7%, driven by a decline in Nelson Labs segment margin.
- Interest expense for Q2 2024 increased by almost $10 million compared to the same period last year, due to reduced interest income and less favorable interest rate hedges.
- Nelson Labs' segment income decreased by 11% year-over-year, impacted by higher labor costs and unfavorable volume and mix.
Good morning, and welcome to the Sotera Health Second Quarter 2024 Conference Call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Vice President and Treasurer, Jason Peterson. Please go ahead.
Good morning and thank you. Welcome to Sotera Health's Second Quarter 2024 Results Call. You can find today's press release and accompanying supplemental slides on the Investors section of our website at soterahealth.com. This webcast is being recorded, and a replay will be available in the Investors section of the Sotera Health website. On the call with me today are Chairman and Chief Executive Officer; and Michael Petras and Chief Financial Officer, Jon Lyons.
During the call, some of our comments may be considered forward-looking statements. The matters addressing these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to
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