STERIS Announces Financial Results for Fiscal 2020 Third Quarter

• Third quarter revenue grows 11% as reported, 12% constant currency organic
• EPS as reported increases to $1.23, adjusted EPS increases to $1.45
• Outlook updated to reflect stronger than anticipated performance

DUBLIN, IRELAND, Feb. 10, 2020 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2020 third quarter ended December 31, 2019.  Revenue as reported for the quarter increased 11% to $774.3 million compared with $696.2 million in the third quarter of fiscal 2019, with growth across all segments. Constant currency organic revenue (see Non-GAAP Financial Measures) growth was 12% for the third quarter of fiscal 2020.

“Our performance this year has continued to exceed our expectations,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “Underlying Customer demand for our products and services remains strong. Based on our outperformance to date and expectations for the fourth quarter, we are increasing our guidance for revenue, earnings and cash flow for the full fiscal year.”

As reported, net income for the third quarter was $104.9 million, or $1.23 per diluted share, compared with net income of $47.9 million, or $0.56 per diluted share in the third quarter of fiscal 2019.  Adjusted net income (see Non-GAAP Financial Measures) for the third quarter of fiscal 2020 was $124.0 million, or $1.45 per diluted share, compared with adjusted net income for the previous year’s third quarter of $107.2 million or $1.26 per diluted share.

Third Quarter Segment Results

Healthcare Products revenue as reported grew 8% in the quarter to $365.4 million compared with $338.3 million in the third quarter of fiscal 2019, driven by 13% growth in consumable revenue, 9% growth in service revenue and 3% growth in capital equipment revenue. Constant currency organic revenue growth for Healthcare Products was 8% during the quarter. Healthcare Products operating income was $89.8 million compared with $82.8 million in last year’s third quarter primarily due to the increase in volume and favorable revenue mix.

Fiscal 2020 third quarter revenue for Applied Sterilization Technologies increased 14% as reported to $156.3 million compared with $136.8 million in the same period last year. Constant currency organic revenue increased 15%, primarily driven by increased volume from the segment’s core medical device Customers. Segment operating income increased to $65.5 million in the third quarter of fiscal 2020 compared with operating income of $54.8 million in the same period last year, due primarily to revenue growth.