Sotera Health Company · NASDAQ:SHC
Sotera Health — FY2020 Earnings Presentation
17 slides from Sotera Health's earnings presentation, Mar 9, 2021
Slide 1: Fourth-Quarter and Full-Year 2020 Earnings Results
Fourth-Quarter and Full-Year 2020 Earnings Results March 9, 2021 Exhibit 99.2
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures 2 This presentation contains forward-looking statements that reflect management’s expectations about future events and the Company’s operating plans and performance and speak only as of the date hereof. You can identify these forward-looking
Slide 3: Presenters
Presenters 3 Michael B. Petras, Jr. Chairman and Chief Executive Officer Scott J. Leffler Chief Financial Officer
Slide 4: Sotera Health at a Glance
Sotera Health at a Glance 4 About: Leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry History: With a combined tenure of over 200 years dating back to the 1930’s, Sotera Health goes to market through three
Slide 5: Highlights
Highlights 5 • Completed IPO and began trading in November 2020 • Approximately 19% of total outstanding shares were issued • IPO generated ~$1.2B of net proceeds • Revenue: Q4 2020 increased 12% to $217M, full-year 2020 increased 5% to $818M • Adjusted EBITDA(1): Q4 2020 increased 20% to $113M, ful
Slide 6: 2020 Consolidated Financial Results
2020 Consolidated Financial Results 6 (1) For a reconciliation of GAAP to non-GAAP results, please refer to Non-GAAP Financial Measures provided in the Appendix. (2) Adjusted EBITDA margin. Please refer to Non-GAAP Financial Measures provided in the Appendix. (3) Adjusted EPS is defined as Adjusted
Slide 7: Sterigenics 2020 Financial Performance
Revenue +11.1% Segment income (1) +14.4% Revenue +5.7% Segment income (1) +8.9% Sterigenics 2020 Financial Performance 7 $121 $135 $65 $74 2019 2020 Revenue Segment Income $472 $499 $245 $267 2019 2020 Revenue Segment Income • Revenue and segment income growth driven by utilization of existing capac
Slide 8: Nordion 2020 Financial Performance
Revenue +18.2% Segment income (1) +28.9% Revenue -1.2% Segment income (1) +7.4% Nordion 2020 Financial Performance 8 $24 $29 $12 $16 2019 2020 Revenue Segment Income $116 $115 $62 $67 2019 2020 Revenue Segment Income • Q4 2020 revenue growth driven by favorable pricing and Co-60 harvesting schedule,
Slide 9: Nelson Labs 2020 Financial Performance
Revenue +11.4% Segment income (1) +32.6% Revenue +7.4% Segment income (1) +18.7% Nelson Labs 2020 Financial Performance 9 $48 $53 $17 $23 2019 2020 Revenue Segment Income $190 $205 $73 $86 2019 2020 Revenue Segment Income • Top line driven by increased demand for services related to personal protect
Slide 10: Capital Expenditures and Liquidity
10 (1) Excludes any Capital Expenditures included in accounts payable or accruals at the end of the period. The amount in accounts payable or accruals as of 12/31/20 and 12/31/19 were $14M and $5M, respectively. (2) Revolving availability is calculated as maximum facility size less letters of credit
Slide 11: Deleveraging and Capital Markets
Deleveraging and Capital Markets 11 (1) For a reconciliation of GAAP to non-GAAP results, please refer to Non-GAAP Financial Measures provided in the Appendix. (2) Sotera Health expects interest savings will be partially offset by cash and non-cash charges associated with the repricing of its Term L
Slide 12: 2021 Guidance
12 2021 Guidance On the following slides, Sotera Health presents an overview of its full-year 2021 Guidance, including certain non-GAAP measures. As outlined in the company’s March 9, 2021 press release, Sotera Health does not provide a reconciliation of the forward-looking Adjusted EBITDA and Adjus
Slide 13: 2021 Guidance
2021 Guidance(1) 13 (1) The guidance provided above contains a number of assumptions, including, among others, the company’s current expectations regarding the impact of the COVID-19 pandemic including the rate of recoveries of elective procedures and new product development testing and that exchang
Slide 14: 2021 Qualitative Guidance
2021 Qualitative Guidance(1) 14 • Q1 2021 revenue expectation of $205M to $210M • Nordion sales expectations fairly balanced between 1st and 2nd half of 2021, but sales can be impacted by changes in Co-60 harvest schedules Quarterly Rhythm Guidance based on current rates as of December 31, 2020FX Im
Slide 15: Appendix
Appendix Sotera . Health
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 16 (a) Represents impairment charges related to the decision to not reopen the Willowbrook, Illinois facility in September 2019. (b) Includes non-cash share-based compensation expense. 2019 also includes $10.0 million of one-time cash share-based compensation expense rela
Slide 17: Non-GAAP Financial Measures: Net Debt and Net Leverage
IPO Pro Forma September 30, 2020 Adjustments September 30, 2020 December 31, 2020 Current portion of long-term debt 21,200$ -$ 21,200$ -$ Long-term debt less current portion (1) 2,888,780 (1,082,138) 1,806,642 1,824,789 Current portion of finance leases 1,044 - 1,044 1,173 Finance lease less current