Navigation Links
STERIS Corporation Announces Fiscal 2009 First Quarter Results
Date:7/30/2008

MENTOR, Ohio, July 30 /PRNewswire-FirstCall/ -- STERIS Corporation (NYSE: STE) today announced financial results for its fiscal 2009 first quarter ended June 30, 2008. Fiscal 2009 first quarter revenues increased 11% to $311.6 million compared with $280.9 million in the first quarter of fiscal 2008, primarily driven by double digit revenue growth in the Healthcare segment.

Fiscal 2009 first quarter net income was $25.5 million, or $0.43 per diluted share, compared with net income of $13.2 million, or $0.20 per diluted share, in the first quarter of fiscal 2008. Net income growth was a result of increased volumes, higher gross margins and improved operating expense leverage. In addition, the effective tax rate for the first quarter of fiscal 2009 was 24.2%, compared with 36.5% in the first quarter of fiscal 2008, primarily relating to a favorable settlement with the IRS for certain open tax years.

"We are very pleased to have such a strong start to the year, with growth in all of our reportable business segments. Our performance in the quarter included a significant increase in demand from hospital Customers, particularly for our new product offerings, while earnings also benefited from the cost reduction efforts we have initiated," said Walt Rosebrough, President and Chief Executive Officer of STERIS. "As we stated last quarter, we remain somewhat conservative on our full year outlook due to uncertainty regarding post election hospital spending and major pharmaceutical company capital purchases, as well as potential increased costs in raw materials and foreign exchange rates."

Quarterly Segment Results

Healthcare revenues in the quarter increased 14% to $224.1 million compared with the first quarter of fiscal 20 7 22

Free Cash Flow from Continuing

Operations $18,119 $9,757

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. Free cash flow is a non-GAAP figure under Securities and Exchange Commission rules. The Company uses free cash flow as a measure to gauge its ability to fund future growth opportunities, repurchase common shares, and pay cash dividends. STERIS's calculation of free cash flow may vary from other companies.

08. In particular, sales of capital equipment increased 20%, driven in part by increased demand for the Company's new product offerings. Consumables and service also reported strong growth in the quarter of 9% and 11%, respectively. Order backlog levels at quarter end were a record $113.9 million. Operating income was $29.2 million, an increase of 63% compared with the prior year period, driven primarily by increased volumes and higher gross margins.

Life Sciences first quarter revenues were $48.0 million, an increase of 3% compared with the first quarter of fiscal 2008. Revenue growth for the segment was impacted by continued weakness from its pharmaceutical Customers, particularly in North America. Order backlog increased 7% to $49.8 million compared with the prior year period. Life Sciences operating income was $1.0 million in the quarter compared with $0.3 million in the first quarter of fiscal 2008. Operating income benefited from cost reduction efforts, which were partially offset by the impact of foreign exchange rate changes.

Fiscal 2009 first quarter revenues for Isomedix Services were $36.9 million, an increase of 4% compared with the same period last year. Revenue growth was driven by increased demand from medical device customers and modest pricing improvements. Operating income was $8.2 million compared with $7.7 million in the prior year quarter.

Cash Flow

Net cash provided by operations and free cash flow (see note 1) for the first quarter of fiscal 2009 were $28.7 million and $18.1 million, respectively. These compare favorably with $19.4 million and $9.8 million in the same period last year, largely reflecting the increase in earnings.

During the quarter, the Company repurchased 920,900 shares of its common stock at an average price of $27.75 per common share for a total amount of $25.6 million. Approximately $253 million remains under the current share repurchase authorization.

Outlook

Based upon first quarter results and current anticipated trends, the Company's expectations are unchanged for the full fiscal year, including 4 to 6% revenue growth and earnings per diluted share of $1.50 to $1.65. However, based on first quarter results, the Company now anticipates that greater than 40% of earnings will occur in the first half of fiscal 2009. Refer to the earnings announcement dated May 7, 2008 for the detailed full year outlook.

Conference Call

In conjunction with this press 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 http://www.steris-ir.com or via phone by dialing 1-888-392-9976 in the United States and Canada, and 1-517-645-6486 internationally, then referencing the password "STERIS" and the conference leader's name, "Julie Winter."

For those unable to listen to the conference call live, a replay will be available from 12:00 p.m. Eastern time on July 30, 2008, until 5:00 p.m. Eastern time on August 13, 2008, either over the Internet at http://www.steris-ir.com or via phone by calling 1-800-756-3940 in the United States and Canada, and 1-402-998-0796 internationally.

About STERIS

STERIS Corporation is a leading provider of infection prevention and surgical products and services, focused primarily on the critical markets of healthcare, pharmaceutical and research. The Company's more than 5,000 dedicated employees around the world work together to supply a broad array of solutions by offering a combination of equipment, consumables and services that enhance Customer productivity and quality, and help make the world a safer place. The Company is listed on the New York Stock Exchange under the symbol STE. For more information, visit http://www.steris.com .

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

(1) Free cash flow is a non-GAAP number used by the Company as a measure to gauge its ability to fund future growth opportunities, repurchase common shares, and pay cash dividends. Free cash flow is defined 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. STERIS's calculation of free cash flow may vary from other companies.

This news release, and the conference call referenced here, may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to the Company or its industry 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 of this report, and may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "targets," "forecasts," "confidence," 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, and changes in government regulations or the application or interpretation thereof. Other risk factors are described 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 level of share repurchases, earnings and revenue trends, expense reduction or other future financial results. 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 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, regulations, regulatory actions, including without limitation the previously disclosed FDA warning letter, certifications or other requirements or standards may delay or prevent new product introductions, affect the production and marketing of existing products, or otherwise affect Company performance, results, or value, (d) the potential of international unrest or effects of fluctuations in currencies, tax assessments or rates, raw material costs, 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, and (f) the possibility that anticipated cost savings may not be achieved, or that transition, labor, competition, timing, execution, regulatory, governmental, or other issues or risks associated with the matters described in this release, and the conference call referenced here, may adversely impact Company performance, results, or value.

STERIS Corporation

Consolidated Condensed Statements of Income

(In thousands, except per share data)

Three Months Ended

June 30,

2008 2007

(Unaudited) (Unaudited)

Revenues $311,565 $280,944

Cost of revenues 181,064 165,344

Gross profit 130,501 115,600

Operating expenses:

Selling, general, and

administrative 87,348 83,383

Research and development 8,279 9,259

Restructuring expense (166) 1,391

95,461 94,033

Income from operations 35,040 21,567

Non-operating expense, net 1,385 773

Income tax expense 8,155 7,591

Net income $25,500 $13,203

Earnings per common share (EPS) data:

Basic $0.43 $0.20

Diluted $0.43 $0.20

Cash dividends declared per common

share outstanding $0.06 $0.05

Weighted average number of common

shares outstanding used in EPS

computation:

Basic number of common shares

outstanding 58,694 65,017

Diluted number of common shares

outstanding 59,647 65,909

STERIS Corporation

Consolidated Condensed Balance Sheets

(In thousands)

June 30, March 31,

2008 2008

Assets (Unaudited)

Current assets:

Cash and cash equivalents $49,038 $51,868

Accounts receivable, net 214,305 249,814

Inventories, net 168,853 147,210

Other current assets 62,215 64,484

Total Current Assets 494,411 513,376

Property, plant, and equipment, net 381,121 384,642

Goodwill and intangible assets, net 335,558 337,980

Other assets 3,283 3,294

Total Assets $1,214,373 $1,239,292

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable $70,952 $75,532

Other current liabilities 134,596 154,827

Total Current Liabilities 205,548 230,359

Long-term debt 177,460 179,280

Other liabilities 117,696 123,501

Shareholders' equity 713,669 706,152

Total Liabilities and Shareholders'

Equity $1,214,373 $1,239,292

STERIS Corporation

Segment Data

(In thousands)

Three Months Ended

June 30,

2008 2007

(Unaudited) (Unaudited)

Segment Revenues:

Healthcare $224,065 $195,691

Life Sciences 48,039 46,702

STERIS Isomedix Services 36,863 35,472

Total reportable segments 308,967 277,865

Corporate and other 2,598 3,079

Total Revenues $311,565 $280,944

Segment Operating Income (Loss):

Healthcare $29,230 $17,932

Life Sciences 1,047 269

STERIS Isomedix Services 8,187 7,721

Total reportable segments 38,464 25,922

Corporate and other (3,424) (4,355)

Total Operating Income $35,040 $21,567

STERIS Corporation

Consolidated Condensed Statements of Cash Flows

(In thousands)

Three Months Ended

June 30,

2008 2007

(Unaudited) (Unaudited)

Operating Activities:

Net income $25,500 $13,203

Non-cash items 20,971 14,692

Working capital adjustments (17,744) (8,469)

Net cash provided by operating

activities 28,727 19,426

Investing Activities:

Purchases of property, plant,

equipment, and intangibles, net (10,615) (9,691)

Proceeds from sale of property,

plant, equipment and intangibles 7 22

Net cash used in investing

activities (10,608) (9,669)

Financing Activities:

(Payments) proceeds under credit

facilities, net (1,720) 8,980

Repurchases of common shares (31,584) (21,235)

Cash dividends paid to common

shareholders (3,513) (3,259)

Stock options and other equity

transactions, net 15,715 10,163

Net cash used in financing

activities (21,102) (5,351)

Effect of exchange rate changes on

cash and cash equivalents 153 1,244

(Decrease) increase in cash and cash

equivalents (2,830) 5,650

Cash and cash equivalents at

beginning of period 51,868 52,296

Cash and cash equivalents at end of

period $49,038 $57,946

Three Months Ended

June 30,

2008 2007

(Unaudited) (Unaudited)

Calculation of Free Cash Flow from

continuing operations:

Cash flows from operating

activities $28,727 $19,426

Purchases of property, plant,

equipment, and intangibles, net (10,615) (9,691)

Proceeds from the sale of

property, plant, equipment, and

intangibles
'/>"/>

SOURCE STERIS Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Steris Corporation Announces the Appointment of Two New Directors
2. STERIS Corporation Declares Regular Quarterly Dividend
3. STERIS Corporation Names Michael J. Tokich Chief Financial Officer
4. STERIS Corporation Announces New $300 Million Share Repurchase Authorization
5. STERIS Corporation Promotes Timothy L. Chapman to Group President of Healthcare
6. STERIS Corporation Announces Fiscal 2008 Third Quarter Results
7. STERIS Corporation Declares Regular Quarterly Dividend
8. STERIS Corporation Announces Date of Fiscal 2008 Third Quarter Earnings Release and Conference Call
9. STERIS Corporation Announces Fiscal 2008 Second Quarter Results
10. STERIS Corporation Announces Date of Fiscal 2008 Second Quarter Earnings Release and Conference Call
11. STERIS Corporation Board of Directors Names Walter M. Rosebrough Jr. President and Chief Executive Officer
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... , ... Pixel Film Studios Released ProSlice Levels, a Media Slicing Effect ... a whole new perspective by using the title layers in ProSlice Levels to ... ProSlice Levels contains over 30 Different presets to choose from. FCPX users ...
(Date:6/25/2016)... D.C. (PRWEB) , ... June 25, 2016 , ... ... discuss health policy issues and applications at AcademyHealth’s Annual Research Meeting June 26-28, ... their work on several important health care topics including advance care planning, healthcare ...
(Date:6/25/2016)... ... June 25, 2016 , ... First Choice Emergency Room , the ... Ogunleye, as the Medical Director of its new Mesquite-Samuell Farm facility. , “We ... new Mesquite location,” said Dr. James M. Muzzarelli, Executive Medical Director of First Choice ...
(Date:6/25/2016)... Montreal, Canada (PRWEB) , ... June 25, 2016 , ... ... the pursuit of success. In terms of the latter, setting the bar too high ... low, risk more than just slow progress toward their goal. , Research from ...
(Date:6/24/2016)... ... June 24, 2016 , ... Marcy was in a crisis. Her son James, eight, was out ... family verbally and physically. , “When something upset him, he couldn’t control his emotions,” remembers ... would throw rocks at my other children and say he was going to kill them. ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... June 23, 2016 Any dentist who has made ... the current process. Many of them do not even offer ... difficulties and high laboratory costs involved. And those who ARE ... at such a high cost that the majority of today,s ... Dr. Parsa Zadeh , founder of Dental Evolutions Inc. ...
(Date:6/23/2016)... Research and Markets has announced the addition of the ... to 2022" report to their offering. ... financial data derived from varied research sources to present unique ... on the market during the next five years, including a ... markets, regional and country level analysis. The report provides a ...
(Date:6/23/2016)... MOUNTAIN VIEW, Calif. , June 23, 2016 ... 9:00 a.m. CST on Thursday, July 7, 2016 , , ... kayla.belcher@frost.com ) , , , , EXPERT PANELISTS:  ... Sciences, Nitin Naik; Senior Industry Analyst, Christi Bird; Senior Industry Analyst, ... The global pharmaceutical industry is witnessing ...
Breaking Medicine Technology: