STERIS Announces Financial Results for Fiscal 2021 First Quarter

•         First quarter revenue declines low-single digits due to reduction in deferrable procedures
•         First quarter net income grows low-single digits driven by margin expansion
•         Board increases dividend for 15th consecutive year

DUBLIN, IRELAND, Aug. 03, 2020 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2021 first quarter ended June 30, 2020.  Revenue as reported for the quarter decreased 4% to $668.9 million compared with $696.8 million in the first quarter of fiscal 2020, with growth in Life Sciences offset by declines in Healthcare and Applied Sterilization Technologies.  Constant currency organic revenue (see Non-GAAP Financial Measures) declined 3% for the first quarter of fiscal 2021.

“We are pleased with our overall performance during such a challenging time,” said Walt Rosebrough, President and Chief Executive Officer of STERIS.  “Our results this quarter reflect the benefits of STERIS’s balanced and diversified business model as well as certain non-recurring items.  As anticipated, our Healthcare segment was the most impacted by the reduction of deferrable procedures.  Our Life Sciences segment continued its strong performance due to increased demand from pharma Customers focused on vaccines and biologics.  Due to the continuing uncertainty we are not providing guidance for fiscal 2021.”

As reported, net income for the first quarter was $88.2 million or $1.03 per diluted share, compared with net income of $84.6 million, or $0.99 per diluted share in the first quarter of fiscal 2020.  Adjusted net income (see Non-GAAP Financial Measures) for the first quarter of fiscal 2021 was $111.8 million, or $1.31 per diluted share, compared with adjusted net income for the previous year’s first quarter of $105.0 million or $1.23 per diluted share.

First Quarter Segment Results

Healthcare revenue as reported declined 10% in the quarter to $399.7 million compared with $445.7 million in the first quarter of fiscal 2020, with a 28% decline in consumable revenue and 10% decline in service revenue partially offset by 6% growth in capital equipment revenue.  Capital equipment revenue reflects a one-time benefit from the timing of revenue recognition for operating room integration (ORI) products which added approximately $15 million to revenue.  Excluding that benefit, capital equipment revenue would have declined 6%.  Constant currency organic revenue also declined 10% during the quarter.  Healthcare operating income was $82.4 million compared with $90.5 million in last year’s first quarter.  The decrease in profitability was primarily due to the decline in revenue, which was somewhat offset by lower operating expenses and approximately $5 million one-time benefit from the timing of ORI revenue recognition previously noted.