- Q2 2022 net revenues of
$267 million increased 6%, compared to Q2 2021 - Q2 2022 net income of
$30 million or$0.11 per diluted share, compared to net income of$43 million or$0.15 per diluted share in Q2 2021 - Q2 2022 Adjusted EBITDA of
$136 million increased 1%, compared to Q2 2021 - Q2 2022 Adjusted EPS of
$0.27 increased$0.01 , compared to Q2 2021 - Narrowing full-year 2022 net revenues and Adjusted EBITDA outlook in the range of
$1.0 to$1.022 billion and$515 to$525 million , respectively
Second-quarter 2022 net revenues increased 5.8% to
For the first six months of 2022, net revenues increased 8.5% to $503 million, compared to $464 million for the same period in 2021. Net revenues increased approximately 11%, on a constant currency basis. Net income was
“Today, we are reporting another quarter of top and bottom-line growth,” said Chairman and Chief Executive Officer,
Petras also stated, “Based on our financial performance during the first half of 2022 and with better visibility into the remainder of the year, we are now narrowing our 2022 guidance. Net revenues outlook is in the range of
Second-Quarter and First-Half 2022 Highlights by Business Segment
Sterigenics
For the second quarter of 2022, Sterigenics net revenues were
Revenue and segment income growth for the second quarter of 2022 were driven by favorable pricing, volume and mix, partially offset by an unfavorable impact from foreign currency exchange rates. Second quarter 2022 segment income margin decline was driven by a timing of contractual pricing actions versus realized inflation.
For the second quarter of 2022,
Revenue growth for the second quarter of 2022 was driven by favorable pricing, partially offset by an unfavorable impact from foreign currency exchange rates. Second quarter 2022 segment income and segment income margin decline from second quarter 2021 was driven by less favorable product mix and an unfavorable impact from foreign currency exchange rates.
For the second quarter of 2022,
Revenue growth for second quarter 2022 was driven by revenue from recent acquisitions and favorable pricing, partially offset by the decline in pandemic-related testing volumes as well as changes in foreign currency exchange rates. Second quarter 2022 segment income decline was driven by the reduction in demand for pandemic-related testing offset by the incremental contribution of the RCA acquisition and favorable pricing. Segment income margin decline was due to dilution from recent acquisitions and less favorable mix due to a reduction in demand for pandemic-related testing. Second-quarter 2022 margin improved over 400 basis points from first quarter of 2022 as Omicron-related capacity constraints diminished and volume from high-value testing services, other than pandemic-related testing, was favorable.
Balance Sheet and Liquidity
As of
2022 Outlook
Today,
- Net revenues in the range of
$1.0 to$1.022 billion , from previous guidance of$1.0 to$1.03 billion , representing growth of approximately 7% to 10%, compared to the prior year, - Adjusted EBITDA in the range of
$515 to$525 million , from previous guidance of$515 to$535 million , representing growth of approximately 7% to 9%, compared to the prior year, - Tax rate applicable to Adjusted Net Income in the range of 29% to 30%,
- Adjusted EPS in the range of
$0.93 to$0.97 from previous guidance of$0.93 to$0.99 representing growth of 6% to 10% versus the prior year, - A fully diluted share count in the range of 280 million to 282 million shares on a weighted-average basis,
- Capital expenditures in the range of
$140 million to$170 million , and - Net leverage reduction of approximately 1⁄2 of a turn.
The outlook provided above contains a number of assumptions, including, among others, the Company’s current expectations regarding supply chain continuity, particularly for the supply of ethylene oxide (“EO”) and cobalt-60 (“Co-60”), the impact of inflationary trends including their impact on energy prices and the supply of labor, the impact of the COVID-19 pandemic including the rate of recoveries of elective procedures and new product development testing, and the expectation that exchange rates as of second-quarter 2022 remain constant for the remainder of 2022. Our outlook is based on current plans and expectations and is subject to several known and unknown risks and uncertainties, including those set forth below under “Forward-Looking Statements.”
Earnings Webcast
Updates can be found from time to time on recent developments in matters relevant to investors on the Investor Relations section of the Company’s website at https://investors.soterahealth.com. For developments related to EO, updates can be found at https://investors.soterahealth.com/ethylene-oxide-eo-overview.
Forward-Looking Statements
Unless expressly indicated or the context requires otherwise, the terms “Sotera Health,” “Company,” “we,” “us,” and “our” in this document refer to
Non-GAAP Financial Measures
The Company does not provide a reconciliation of the forward-looking Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Net Leverage Ratio outlook to the most directly comparable GAAP measure, as this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain items, including, among others, uncertainties caused by the global COVID-19 pandemic, changes to the regulatory landscape, restructuring items and certain fair value measurements, all of which are potential adjustments for future earnings. The variability of these items could have a potentially unpredictable, and a potentially significant, impact on our future GAAP results.
To supplement our consolidated financial statements presented in accordance with GAAP, we consider Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio, financial measures that are not based on any standardized methodology prescribed by GAAP.
We define Adjusted Net Income as net income (loss) before amortization and certain other adjustments that we do not consider in our evaluation of our ongoing operating performance from period to period.
We define Adjusted EBITDA as Adjusted Net Income before interest expense and the mark-to-market impact of derivatives not accounted for as hedges, depreciation (including depreciation of Co-60 used in our operations) and income tax provision applicable to Adjusted Net Income. Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by net revenues.
We define Adjusted EPS as Adjusted Net Income divided by the weighted average number of diluted shares outstanding.
Our Net Debt is equal to our total debt, including financing leases, plus unamortized debt issuance costs and debt discounts, less cash and cash equivalents.
Our Net Leverage Ratio is equal to Net Debt divided by the trailing twelve-months of Adjusted EBITDA.
Constant currency is a non-GAAP financial measure we use to assess performance excluding the impact of foreign currency exchange rate changes. We calculate constant currency net revenues by translating prior year net revenues in local currency at the average exchange rates applicable for the current period. The translated results are then used to determine year-over-year percentage increases or decreases. We generally refer to such amounts calculated on a constant currency basis as excluding the impact of foreign currency exchange rates. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with
We use these non-GAAP financial measures as the principal measures of our operating performance. Management believes these are useful because they allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without the impact of certain non-cash items and non-routine items that we do not expect to continue at the same level in the future and other items that are not core to our operations. We believe that these measures are useful to our investors because they provide a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure. In addition, we believe these measures will assist investors in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. Our management also uses these measurements in their financial analysis and operational decision-making and Adjusted EBITDA serves as the basis for the attainment of our primary annual incentive program. These measures may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies.
About
INVESTOR RELATIONS
Vice President Investor Relations,
IR@soterahealth.com
MEDIA
Chief Marketing Officer,
kgibbs@soterahealth.com
Source:
Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues: | |||||||||||||||
Service | $ | 221,529 | $ | 208,710 | $ | 427,747 | $ | 397,408 | |||||||
Product | 45,110 | 43,207 | 75,646 | 66,657 | |||||||||||
Total net revenues | 266,639 | 251,917 | 503,393 | 464,065 | |||||||||||
Cost of revenues: | |||||||||||||||
Service | 98,407 | 91,391 | 192,983 | 176,427 | |||||||||||
Product | 17,836 | 16,765 | 31,139 | 28,505 | |||||||||||
Total cost of revenues | 116,243 | 108,156 | 224,122 | 204,932 | |||||||||||
Gross profit | 150,396 | 143,761 | 279,271 | 259,133 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | 63,132 | 49,828 | 122,674 | 102,293 | |||||||||||
Amortization of intangible assets | 15,769 | 15,661 | 31,610 | 32,204 | |||||||||||
Total operating expenses | 78,901 | 65,489 | 154,284 | 134,497 | |||||||||||
Operating income | 71,495 | 78,272 | 124,987 | 124,636 | |||||||||||
Interest expense, net | 14,044 | 19,163 | 24,448 | 40,445 | |||||||||||
Impairment of investment in unconsolidated affiliate | 9,613 | — | 9,613 | — | |||||||||||
Loss on extinguishment of debt | — | — | — | 14,312 | |||||||||||
Foreign exchange loss (gain) | (755 | ) | 76 | 33 | 654 | ||||||||||
Other expense (income), net | 485 | (2,764 | ) | (2,482 | ) | (6,654 | ) | ||||||||
Income before income taxes | 48,108 | 61,797 | 93,375 | 75,879 | |||||||||||
Provision for income taxes | 17,690 | 19,182 | 32,316 | 22,199 | |||||||||||
Net income | 30,418 | 42,615 | 61,059 | 53,680 | |||||||||||
Less: Net income attributable to noncontrolling interests | — | 16 | — | 239 | |||||||||||
Net income attributable to | $ | 30,418 | $ | 42,599 | $ | 61,059 | $ | 53,441 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.11 | $ | 0.15 | $ | 0.22 | $ | 0.19 | |||||||
Diluted | 0.11 | 0.15 | 0.22 | 0.19 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 279,990 | 279,078 | 279,910 | 278,953 | |||||||||||
Diluted | 280,171 | 279,214 | 280,038 | 279,078 |
Segment Data (in thousands) (unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Segment revenues: | |||||||||||||||
Sterigenics | $ | 157,792 | $ | 145,182 | $ | 307,254 | $ | 276,333 | |||||||
50,478 | 49,125 | 84,480 | 75,043 | ||||||||||||
58,369 | 57,610 | 111,659 | 112,689 | ||||||||||||
Total net revenues | $ | 266,639 | $ | 251,917 | $ | 503,393 | $ | 464,065 | |||||||
Segment income: | |||||||||||||||
Sterigenics | $ | 85,098 | $ | 79,569 | $ | 164,501 | $ | 148,030 | |||||||
29,982 | 31,168 | 48,885 | 44,954 | ||||||||||||
21,055 | 23,826 | 38,098 | 46,896 | ||||||||||||
Total segment income | 136,135 | 134,563 | 251,484 | 239,880 | |||||||||||
Less adjustments: | |||||||||||||||
Interest expense, net(a) | 17,144 | 19,163 | 33,894 | 40,445 | |||||||||||
Depreciation and amortization(b) | 36,939 | 37,461 | 72,988 | 75,122 | |||||||||||
Share-based compensation(c) | 5,801 | 3,493 | 10,339 | 6,942 | |||||||||||
Gain on foreign currency and derivatives not designated as hedging instruments, net(d) | (1,430 | ) | (660 | ) | (7,982 | ) | (996 | ) | |||||||
Acquisition and divestiture related charges, net(e) | 691 | 844 | 531 | 659 | |||||||||||
Business optimization project expenses(f) | 470 | 275 | 574 | 536 | |||||||||||
Plant closure expenses(g) | 478 | 756 | 1,149 | 1,298 | |||||||||||
Impairment of investment in unconsolidated affiliate(h) | 9,613 | — | 9,613 | — | |||||||||||
Loss on extinguishment of debt(i) | — | — | — | 14,312 | |||||||||||
Professional services relating to EO sterilization facilities(j) | 17,678 | 10,644 | 35,737 | 24,043 | |||||||||||
Accretion of asset retirement obligation(k) | 598 | 602 | 1,118 | 1,153 | |||||||||||
COVID-19 expenses(l) | 45 | 188 | 148 | 487 | |||||||||||
Consolidated income before income taxes | $ | 48,108 | $ | 61,797 | $ | 93,375 | $ | 75,879 |
(a) The three and six months ended
(b) Includes depreciation of Co-60 held at gamma irradiation sites.
(c) Represents non-cash share-based compensation expense.
(d) Represents the effects of (i) fluctuations in foreign currency exchange rates, (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at
(e) Represents (i) certain direct and incremental costs related to the acquisitions of
(f) Represents professional fees, contract termination and exit costs, severance and other payroll costs, and other costs associated with business optimization and cost savings projects relating to the integration of acquisitions, operating structure realignment and other process enhancement projects.
(g) Represents professional fees, severance and other payroll costs, and other costs including ongoing lease and utility expenses associated with the closure of the
(h) Represents an impairment charge on our equity method investment in Auralux.
(i) Represents expenses incurred in connection with the repricing of our Term Loan in
(j) Represents litigation and other professional fees associated with our EO sterilization facilities.
(k) Represents non-cash accretion of asset retirement obligations related to Co-60 and gamma processing facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities (without regard for whether the decommissioning services would be performed by employees of
(l) Represents non-recurring costs associated with the COVID-19 pandemic, including incremental costs to implement workplace health and safety measures.
Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||
As of | As of | ||||
2022 | 2021 | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents, including restricted cash | $ | 140,618 | $ | 106,924 | |
Accounts receivable, net | 119,852 | 108,183 | |||
Inventories, net | 39,652 | 54,288 | |||
Other current assets | 98,559 | 76,566 | |||
Total current assets | 398,681 | 345,961 | |||
Property, plant, and equipment, net | 699,571 | 650,797 | |||
Operating lease assets | 29,853 | 39,946 | |||
Other intangible assets, net | 543,057 | 598,844 | |||
1,116,002 | 1,120,320 | ||||
Other assets | 52,521 | 33,634 | |||
Total assets | $ | 2,839,685 | $ | 2,789,502 | |
Liabilities and equity | |||||
Total current liabilities | $ | 142,021 | $ | 161,161 | |
Long-term debt, less current portion | 1,745,548 | 1,743,534 | |||
Other noncurrent liabilities | 171,386 | 164,210 | |||
Deferred income taxes | 144,730 | 134,501 | |||
Total liabilities | 2,203,685 | 2,203,406 | |||
Total equity | 636,000 | 586,096 | |||
Total liabilities and equity | $ | 2,839,685 | $ | 2,789,502 |
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
Six Months Ended | |||||||
2022 | 2021 | ||||||
Operating activities: | |||||||
Net income | $ | 61,059 | $ | 53,680 | |||
Non-cash items | 96,513 | 99,520 | |||||
Changes in operating assets and liabilities | (49,316 | ) | (18,944 | ) | |||
Net cash provided by operating activities | 108,256 | 134,256 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (71,642 | ) | (44,789 | ) | |||
Purchase of mandatorily redeemable noncontrolling interest in | — | (12,425 | ) | ||||
Purchase of | — | (13,760 | ) | ||||
Adjustment to purchase of | 450 | — | |||||
Net cash used in investing activities | (71,192 | ) | (70,974 | ) | |||
Financing activities: | |||||||
Purchase of noncontrolling interests in | — | (7,720 | ) | ||||
Payments of debt issuance costs and prepayment premium | (27 | ) | (3,661 | ) | |||
Other financing activities | (1,056 | ) | (709 | ) | |||
Net cash used in financing activities | (1,083 | ) | (12,090 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (2,287 | ) | 2,578 | ||||
Net increase in cash and cash equivalents, including restricted cash | 33,694 | 53,770 | |||||
Cash and cash equivalents, including restricted cash, at beginning of period | 106,924 | 102,454 | |||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 140,618 | $ | 156,224 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for interest | $ | 42,057 | $ | 36,615 | |||
Cash paid during the period for income taxes, net of tax refunds received | 37,340 | 22,785 | |||||
Purchases of property, plant and equipment included in accounts payable | 17,923 | 9,670 |
Non-GAAP Financial Measures (in thousands, except per share amounts) (unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 30,418 | $ | 42,615 | $ | 61,059 | $ | 53,680 | |||||||
Amortization of intangibles | 21,195 | 21,778 | 41,377 | 44,060 | |||||||||||
Share-based compensation(a) | 5,801 | 3,493 | 10,339 | 6,942 | |||||||||||
Gain on foreign currency and derivatives not designated as hedging instruments, net(b) | (1,430 | ) | (660 | ) | (7,982 | ) | (996 | ) | |||||||
Acquisition and divestiture related charges, net(c) | 691 | 844 | 531 | 659 | |||||||||||
Business optimization project expenses(d) | 470 | 275 | 574 | 536 | |||||||||||
Plant closure expenses(e) | 478 | 756 | 1,149 | 1,298 | |||||||||||
Impairment of investment in unconsolidated affiliate(f) | 9,613 | — | 9,613 | — | |||||||||||
Loss on extinguishment of debt(g) | — | — | — | 14,312 | |||||||||||
Professional services relating to EO sterilization facilities(h) | 17,678 | 10,644 | 35,737 | 24,043 | |||||||||||
Accretion of asset retirement obligation(i) | 598 | 602 | 1,118 | 1,153 | |||||||||||
COVID-19 expenses(j) | 45 | 188 | 148 | 487 | |||||||||||
Income tax benefit associated with pre-tax adjustments(k) | (9,732 | ) | (8,863 | ) | (17,584 | ) | (22,996 | ) | |||||||
Adjusted Net Income | 75,825 | 71,672 | 136,079 | 123,178 | |||||||||||
Interest expense, net(l) | 17,144 | 19,163 | 33,894 | 40,445 | |||||||||||
Depreciation(m) | 15,744 | 15,683 | 31,611 | 31,062 | |||||||||||
Income tax provision applicable to Adjusted Net Income(n) | 27,422 | 28,045 | 49,900 | 45,195 | |||||||||||
Adjusted EBITDA(o) | $ | 136,135 | $ | 134,563 | $ | 251,484 | $ | 239,880 | |||||||
Net Revenues | $ | 266,639 | $ | 251,917 | $ | 503,393 | $ | 464,065 | |||||||
Adjusted EBITDA Margin | 51.1 | % | 53.4 | % | 50.0 | % | 51.7 | % | |||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 279,990 | 279,078 | 279,910 | 278,953 | |||||||||||
Diluted | 280,171 | 279,214 | 280,038 | 279,078 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.11 | $ | 0.15 | $ | 0.22 | $ | 0.19 | |||||||
Diluted | 0.11 | 0.15 | 0.22 | 0.19 | |||||||||||
Adjusted earnings per share: | |||||||||||||||
Basic | $ | 0.27 | $ | 0.26 | $ | 0.49 | $ | 0.44 | |||||||
Diluted | 0.27 | 0.26 | 0.49 | 0.44 |
(a) Represents non-cash share-based compensation expense.
(b) Represents the effects of (i) fluctuations in foreign currency exchange rates, (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at
(c) Represents (i) certain direct and incremental costs related to the acquisitions of RCA, the noncontrolling interests in our
(d) Represents professional fees, contract termination and exit costs, severance and other payroll costs, and other costs associated with business optimization and cost savings projects relating to the integration of acquisitions, operating structure realignment and other process enhancement projects.
(e) Represents professional fees, severance and other payroll costs, and other costs including ongoing lease and utility expenses associated with the closure of the
(f) Represents an impairment charge on our equity method investment in Auralux.
(g) Represents expenses incurred in connection with the repricing of our Term Loan in
(h) Represents litigation and other professional fees associated with our EO sterilization facilities.
(i) Represents non-cash accretion of asset retirement obligations related to Co-60 and gamma processing facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities (without regard for whether the decommissioning services would be performed by employees of
(j) Represents non-recurring costs associated with the COVID-19 pandemic, including incremental costs to implement workplace health and safety measures.
(k) Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income.
(l) The three and six months ended
(m) Includes depreciation of Co-60 held at gamma irradiation sites.
(n) Represents the difference between the income tax provision as determined under
(o)
Non-GAAP Financial Measures ($’s in thousands) (unaudited) | |||||||
As of | As of | ||||||
2022 | 2021 | ||||||
Long-term debt | $ | 1,745,548 | $ | 1,743,534 | |||
Current portion of finance leases | 1,615 | 1,160 | |||||
Finance leases less current portion | 57,140 | 40,877 | |||||
Total Debt | 1,804,303 | 1,785,571 | |||||
Add: unamortized debt issuance costs and debt discounts | 18,002 | 20,016 | |||||
Less: cash and cash equivalents | (139,564 | ) | (106,924 | ) | |||
Total Net Debt | $ | 1,682,741 | $ | 1,698,663 | |||
Adjusted EBITDA(1) | $ | 492,833 | $ | 481,229 | |||
Net Leverage | 3.4x | 3.5x |
(1) Represents Adjusted EBITDA for the twelve months ended
Non-GAAP Financial Measures (in thousands) (unaudited) | |||||||
Twelve Months Ended | Twelve Months Ended | ||||||
2022 | 2021 | ||||||
Net income | $ | 124,500 | $ | 117,121 | |||
Amortization of intangibles | 84,059 | 86,742 | |||||
Share-based compensation(a) | 17,267 | 13,870 | |||||
Gain on foreign currency and derivatives not designated as hedging instruments(b) | (7,044 | ) | (58 | ) | |||
Acquisition and divestiture related charges, net(c) | (6,146 | ) | (6,018 | ) | |||
Business optimization project expenses(d) | 986 | 948 | |||||
Plant closure expenses(e) | 2,178 | 2,327 | |||||
Impairment of investment in unconsolidated affiliate(f) | 9,613 | — | |||||
Loss on extinguishment of debt(g) | 6,369 | 20,681 | |||||
Professional services relating to EO sterilization facilities(h) | 57,350 | 45,656 | |||||
Accretion of asset retirement obligation(i) | 2,217 | 2,252 | |||||
COVID-19 expenses(j) | 422 | 761 | |||||
Income tax benefit associated with pre-tax adjustments(k) | (33,088 | ) | (38,500 | ) | |||
Adjusted Net Income | 258,683 | 245,782 | |||||
Interest expense, net(l) | 67,641 | 74,192 | |||||
Depreciation(m) | 64,709 | 64,160 | |||||
Income tax provision applicable to Adjusted Net Income(n) | 101,800 | 97,095 | |||||
Adjusted EBITDA(o) | $ | 492,833 | $ | 481,229 | |||
Net Revenues | $ | 970,806 | $ | 931,478 | |||
Adjusted EBITDA Margin | 50.8 | % | 51.7 | % |
(a) Represents non-cash share-based compensation expense.
(b) Represents the effects of (i) fluctuations in foreign currency exchange rates, (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at
(c) Represents (i) certain direct and incremental costs related to the acquisitions of RCA, the noncontrolling interests in our
(d) Represents professional fees, contract termination and exit costs, severance and other payroll costs, and other costs associated with business optimization and cost savings projects relating to the integration of acquisitions, operating structure realignment and other process enhancement projects.
(e) Represents professional fees, severance and other payroll costs, and other costs including ongoing lease and utility expenses associated with the closure of the
(f) Represents an impairment charge on our equity method investment in Auralux.
(g) Represents expenses incurred in connection with the
(h) Represents litigation and other professional fees associated with our EO sterilization facilities.
(i) Represents non-cash accretion of asset retirement obligations related to Co-60 and gamma processing facilities, which are based on estimated site remediation costs for any future decommissioning of these facilities (without regard for whether the decommissioning services would be performed by employees of
(j) Represents non-recurring costs associated with the COVID-19 pandemic, including incremental costs to implement workplace health and safety measures.
(k) Represents the income tax impact of adjustments calculated based on the tax rate applicable to each item. We eliminate the effect of tax rate changes as applied to tax assets and liabilities and unusual items from our presentation of adjusted net income.
(l) The twelve months ended
(m) Includes depreciation of Co-60 held at gamma irradiation sites.
(n) Represents the difference between the income tax provision as determined under
(o)
Source:
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