- Q3 2021 net revenues of
$226 million increased 13%, compared to Q3 2020 - Q3 2021 net income of
$27 million or$0.10 per diluted share, compared to net income of$0.01 million or$0.00 per diluted share in Q3 2020 - Q3 2021 Adjusted EBITDA of
$117 million increased 16%, compared to Q3 2020 - Q3 2021 Adjusted EPS of
$0.21 improved$0.12 compared to Q3 2020 September 30, 2021 total debt of$1.8 billion and total net debt of$1.7 billion ; net leverage ratio improved to 3.6x- Narrowing full-year 2021 revenue growth outlook to 12% - 14% and full-year 2021 Adjusted EBITDA growth to 13% - 14%
- Full redemption of
$100 million Senior Secured First-Lien Notes
Third-quarter 2021 net revenues increased 13.1% to
For the first nine months of 2021, net revenues increased 14.8% to $690 million, compared to $601 million for the same period in 2020. Net income was
“We are very pleased to report solid top-line, net income and Adjusted EBITDA growth for the third quarter. This represents double-digit top-line and Adjusted EBITDA growth in every quarter since the IPO, and we could not be more proud of our team for working so diligently to deliver this level of growth during this challenging and unique time,” said Chairman and Chief Executive Officer,
Third-Quarter and Nine-Month 2021 Highlights by Business Segment
Sterigenics
For the third quarter of 2021, Sterigenics net revenues were
Revenue and segment income growth for the third quarter of 2021 were driven principally by organic volume growth and favorable pricing.
For the third quarter of 2021,
Revenue and segment income growth for the third quarter of 2021 were primarily driven by organic volume growth, a favorable impact from pricing and changes in foreign exchange rates.
For the third quarter of 2021,
Revenue and segment income declines were driven by reduced pandemic-related demand for personal protective equipment testing volumes, partly offset by the impact of the
Balance Sheet and Liquidity
As of
On
2021 Outlook
Today,
- Net revenues in the range of
$920 million -$930 million , representing growth of 12% - 14%, compared to the prior year, - Adjusted EBITDA of
$475 million -$480 million , representing growth of 13% - 14%, compared to the prior year, - Tax rate applicable to Adjusted Net Income of approximately 28%,
- Adjusted EPS of
$0.87 -$0.88 , - Fully diluted share count range of 279 million - 280 million shares on a weighted-average basis,
- Capital expenditures in the range of
$90 million to$100 million , and - Net leverage reduction of approximately 3⁄4 of a turn.
The outlook provided above is based on current plans and expectations and is subject to a number of known and unknown risks and uncertainties, including those set forth below under “Forward-Looking Statements.”
Earnings Webcast
Upcoming Investor Events
- Credit Suisse 30th Annual Healthcare Conference at
2:40pm EST ,November 11, 2021
Live and archived webcasts and presentations, including those associated with the conference listed above, may be accessed on the Investor Relations section of the
Other Information
Sotera Health launched an ethylene oxide resource, available via the Investor Relations section of the Company’s website at https://investors.soterahealth.com/ethylene-oxide-eo-overview. From time to time, updates related to ethylene oxide matters that may be relevant to investors will be posted here.
Updates on other matters not related to ethylene oxide that may be relevant to investors may be found from time to time on the Special Notices section of the Company’s Investor Relations website at https://investors.soterahealth.com/special-notices.
Forward-Looking Statements
This release 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 statements by the use of forward-looking words such as “will,” “may,” “plan,” “estimate,” “project,” “believe,” “anticipate,” “expect,” “intend,” “should,” “would,” “could,” “target,” “goal,” “continue to,” “positioned to,” “are confident” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release are based upon our historical performance and on our current plans, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. These forward-looking statements are subject to various risks, uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. These risks and uncertainties include, without limitation, any disruption in the availability or supply of ethylene oxide (“EO”) or cobalt-60 (“Co-60”); changes in industry trends, environmental, health and safety regulations or preferences; the impact of current and future legal proceedings and liability claims, including litigation related to purported exposure to emissions of EO from our facilities in
The outlook provided within this earnings release 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 foreign exchange rates. 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.
Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP, we consider Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Total 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, 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 Total Net Debt is equal to our total debt, 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.
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 metric we utilize to determine 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 CONTACTS
IR Advisory Solutions | |
IR@soterahealth.com | IR@soterahealth.com |
MEDIA CONTACT
Chief Marketing Officer,
kgibbs@soterahealth.com
Source:
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Service | $ | 200,499 | $ | 182,176 | $ | 597,907 | $ | 524,025 | ||||||||
Product | 25,665 | 17,852 | 92,322 | 77,288 | ||||||||||||
Total net revenues | 226,164 | 200,028 | 690,229 | 601,313 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Service | 88,349 | 83,697 | 264,776 | 247,386 | ||||||||||||
Product | 12,229 | 8,820 | 40,734 | 30,932 | ||||||||||||
Total cost of revenues | 100,578 | 92,517 | 305,510 | 278,318 | ||||||||||||
Gross profit | 125,586 | 107,511 | 384,719 | 322,995 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 44,038 | 45,632 | 146,331 | 125,369 | ||||||||||||
Amortization of intangible assets | 15,877 | 14,849 | 48,081 | 43,989 | ||||||||||||
Total operating expenses | 59,915 | 60,481 | 194,412 | 169,358 | ||||||||||||
Operating income | 65,671 | 47,030 | 190,307 | 153,637 | ||||||||||||
Interest expense, net | 18,140 | 55,330 | 58,585 | 167,142 | ||||||||||||
Loss on extinguishment of debt | 6,365 | — | 20,677 | — | ||||||||||||
Foreign exchange loss (gain) | 756 | (4,571 | ) | 1,410 | (5,370 | ) | ||||||||||
Other income, net | (693 | ) | (3,145 | ) | (7,347 | ) | (4,353 | ) | ||||||||
Income (loss) before income taxes | 41,103 | (584 | ) | 116,982 | (3,782 | ) | ||||||||||
Provision (benefit) for income taxes | 13,659 | (1,213 | ) | 35,858 | (9,677 | ) | ||||||||||
Net income | 27,444 | 629 | 81,124 | 5,895 | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | 619 | 239 | 832 | ||||||||||||
Net income attributable to | $ | 27,444 | $ | 10 | $ | 80,885 | $ | 5,063 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.10 | $ | — | $ | 0.29 | $ | 0.02 | ||||||||
Diluted | 0.10 | — | 0.29 | 0.02 | ||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 279,381 | 232,400 | 279,097 | 232,400 | ||||||||||||
Diluted | 279,560 | 232,400 | 279,253 | 232,400 |
Segment Data
(in thousands)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Segment revenues: | ||||||||||||||||
Sterigenics | $ | 145,314 | $ | 126,302 | $ | 421,647 | $ | 363,954 | ||||||||
28,768 | 20,268 | 103,811 | 86,034 | |||||||||||||
52,082 | 53,458 | 164,771 | 151,325 | |||||||||||||
Total net revenues | $ | 226,164 | $ | 200,028 | $ | 690,229 | $ | 601,313 | ||||||||
Segment income: | ||||||||||||||||
Sterigenics | $ | 79,344 | $ | 66,682 | $ | 227,374 | $ | 192,803 | ||||||||
16,331 | 10,261 | 61,285 | 50,692 | |||||||||||||
20,999 | 23,542 | 67,895 | 63,302 | |||||||||||||
Total segment income | 116,674 | 100,485 | 356,554 | 306,797 | ||||||||||||
Less adjustments: | ||||||||||||||||
Interest expense, net | 18,140 | 55,330 | 58,585 | 167,142 | ||||||||||||
Depreciation and amortization(a) | 37,634 | 36,101 | 112,756 | 107,158 | ||||||||||||
Share-based compensation(b) | 3,547 | 901 | 10,489 | 4,019 | ||||||||||||
Loss (gain) on foreign currency and embedded derivatives(c) | 1,881 | (6,035 | ) | 885 | (4,791 | ) | ||||||||||
Acquisition and divestiture related charges, net(d) | (2,662 | ) | 681 | (2,003 | ) | 2,970 | ||||||||||
Business optimization project expenses(e) | 244 | 685 | 780 | 2,484 | ||||||||||||
Plant closure expenses(f) | 266 | 1,166 | 1,564 | 2,388 | ||||||||||||
Loss on extinguishment of debt(g) | 6,365 | — | 20,677 | — | ||||||||||||
Professional services relating to EO sterilization facilities(h) | 9,449 | 11,730 | 33,492 | 25,370 | ||||||||||||
Accretion of asset retirement obligation(i) | 598 | 494 | 1,751 | 1,476 | ||||||||||||
COVID-19 expenses(j) | 109 | 16 | 596 | 2,363 | ||||||||||||
Consolidated income (loss) before income taxes | $ | 41,103 | $ | (584 | ) | $ | 116,982 | $ | (3,782 | ) |
(a) Includes depreciation of Co-60 held at gamma irradiation sites.
(b) Represents non-cash share-based compensation expense.
(c) Represents the effects of (i) fluctuations in foreign currency exchange rates, primarily related to remeasurement of intercompany loans denominated in currencies other than subsidiaries’ functional currencies, and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at
(d) Represents (i) certain direct and incremental costs related to the acquisitions of the noncontrolling interests in our
(e) 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 recent acquisitions, the
(f) Represents professional fees, severance and other payroll costs, and other costs including ongoing lease and utility expenses associated with the closure of the
(g) Represents expenses incurred in connection with the repricing of our Term Loan in
(h) Represents professional fees related to litigation associated with our EO sterilization facilities and other related professional fees.
(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. For the nine months ended
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
As of | As of | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 114,919 | $ | 102,454 | ||||
Accounts receivable, net | 96,094 | 91,735 | ||||||
Inventories, net | 37,496 | 34,093 | ||||||
Other current assets | 88,796 | 86,733 | ||||||
Total current assets | 337,305 | 315,015 | ||||||
Property, plant, and equipment, net | 624,341 | 609,814 | ||||||
Operating lease assets | 42,682 | 45,963 | ||||||
Other intangible assets, net | 608,641 | 643,366 | ||||||
1,103,148 | 1,115,936 | |||||||
Other assets | 26,622 | 31,185 | ||||||
Total assets | $ | 2,742,739 | $ | 2,761,279 | ||||
Liabilities and equity | ||||||||
Total current liabilities | $ | 133,606 | $ | 140,598 | ||||
Long-term debt | 1,742,578 | 1,824,789 | ||||||
Other noncurrent liabilities | 202,224 | 219,502 | ||||||
Deferred income taxes | 138,562 | 121,816 | ||||||
Total liabilities | 2,216,970 | 2,306,705 | ||||||
Total equity | 525,769 | 454,574 | ||||||
Total liabilities and equity | $ | 2,742,739 | $ | 2,761,279 |
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended | ||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Net income | $ | 81,124 | $ | 5,895 | ||||
Non-cash items | 152,710 | 106,806 | ||||||
Changes in operating assets and liabilities | (18,640 | ) | (13,961 | ) | ||||
Net cash provided by operating activities | 215,194 | 98,740 | ||||||
Investing activities: | ||||||||
Purchases of property, plant and equipment | (60,898 | ) | (33,640 | ) | ||||
Purchase of mandatorily redeemable noncontrolling interest in | (12,425 | ) | — | |||||
Purchase of | (13,530 | ) | — | |||||
Purchase of | — | (106,280 | ) | |||||
Other investing activities | (717 | ) | — | |||||
Net cash used in investing activities | (87,570 | ) | (139,920 | ) | ||||
Financing activities: | ||||||||
Proceeds from revolving credit facility | — | 150,000 | ||||||
Purchase of noncontrolling interests in | (8,418 | ) | — | |||||
Payments of debt issuance costs and prepayment premium | (6,718 | ) | (3,898 | ) | ||||
Payments on long-term borrowings | (100,000 | ) | (61,025 | ) | ||||
Other | (368 | ) | (1,116 | ) | ||||
Net cash (used in) provided by financing activities | (115,504 | ) | 83,961 | |||||
Effect of exchange rate changes on cash and cash equivalents | 345 | 2,639 | ||||||
Net increase in cash and cash equivalents, including restricted cash | 12,465 | 45,420 | ||||||
Cash and cash equivalents, including restricted cash, at beginning of period | 102,454 | 63,025 | ||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 114,919 | $ | 108,445 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for interest | $ | 53,726 | $ | 163,965 | ||||
Cash paid during the period for income taxes, net of tax refunds received | 31,922 | 9,650 | ||||||
Equipment purchases included in accounts payable | 14,527 | 8,494 |
Non-GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Net income | $ | 27,444 | $ | 629 | $ | 81,124 | $ | 5,895 | ||||||||||||
Amortization of intangibles | 21,239 | 20,200 | 65,299 | 59,824 | ||||||||||||||||
Share-based compensation(a) | 3,547 | 901 | 10,489 | 4,019 | ||||||||||||||||
(Gain) loss on foreign currency and embedded derivatives(b) | 1,881 | (6,035 | ) | 885 | (4,791 | ) | ||||||||||||||
Acquisition and divestiture related charges, net(c) | (2,662 | ) | 681 | (2,003 | ) | 2,970 | ||||||||||||||
Business optimization project expenses(d) | 244 | 685 | 780 | 2,484 | ||||||||||||||||
Plant closure expenses(e) | 266 | 1,166 | 1,564 | 2,388 | ||||||||||||||||
Loss on extinguishment of debt(f) | 6,365 | — | 20,677 | — | ||||||||||||||||
Professional services relating to EO sterilization facilities(g) | 9,449 | 11,730 | 33,492 | 25,370 | ||||||||||||||||
Accretion of asset retirement obligation(h) | 598 | 494 | 1,751 | 1,476 | ||||||||||||||||
COVID-19 expenses(i) | 109 | 16 | 596 | 2,363 | ||||||||||||||||
Income tax benefit associated with pre-tax adjustments(j) | (9,776 | ) | (8,494 | ) | (32,772 | ) | (24,854 | ) | ||||||||||||
Adjusted Net Income | 58,704 | 21,973 | 181,882 | 77,144 | ||||||||||||||||
Interest expense, net | 18,140 | 55,330 | 58,585 | 167,142 | ||||||||||||||||
Depreciation(k) | 16,395 | 15,901 | 47,457 | 47,334 | ||||||||||||||||
Income tax provision applicable to Adjusted Net Income(l) | 23,435 | 7,281 | 68,630 | 15,177 | ||||||||||||||||
Adjusted EBITDA(m) | $ | 116,674 | $ | 100,485 | $ | 356,554 | $ | 306,797 | ||||||||||||
Net Revenues | $ | 226,164 | $ | 200,028 | $ | 690,229 | $ | 601,313 | ||||||||||||
Adjusted EBITDA Margin | 51.6 | % | 50.2 | % | 51.7 | % | 51.0 | % | ||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 279,381 | 232,400 | 279,097 | 232,400 | ||||||||||||||||
Diluted | 279,560 | 232,400 | 279,253 | 232,400 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.10 | $ | — | $ | 0.29 | $ | 0.02 | ||||||||||||
Diluted | 0.10 | — | 0.29 | 0.02 | ||||||||||||||||
Adjusted earnings per share: | ||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.09 | $ | 0.65 | $ | 0.33 | ||||||||||||
Diluted | 0.21 | 0.09 | 0.65 | 0.33 |
(a) Represents non-cash share-based compensation expense.
(b) Represents the effects of (i) fluctuations in foreign currency exchange rates, primarily related to remeasurement of intercompany loans denominated in currencies other than subsidiaries’ functional currencies, and (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 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 recent acquisitions, the
(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 expenses incurred in connection with the repricing of our Term Loan in
(g) Represents professional fees related to litigation associated with our EO sterilization facilities and other related professional fees.
(h) 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
(i) Represents non-recurring costs associated with the COVID-19 pandemic, including incremental costs to implement workplace health and safety measures. For the nine months ended
(j) Represents the tax benefit or provision associated with the reconciling items between net income and Adjusted Net Income. To determine the aggregate tax effect of the reconciling items, we utilized statutory income tax rates ranging from 0% to 35%, depending upon the applicable jurisdictions of each adjustment.
(k) Includes depreciation of Co-60 held at gamma irradiation sites.
(l) Represents the difference between income tax expense or benefit as determined under
(m)
Non-GAAP Financial Measures
($’s in thousands)
(unaudited)
As of | As of | |||||||
2021 | 2020 | |||||||
Long-term debt | $ | 1,742,578 | $ | 1,824,789 | ||||
Current portion of finance leases | 1,339 | 1,173 | ||||||
Finance leases less current portion | 38,014 | 34,939 | ||||||
Total Debt | 1,781,931 | 1,860,901 | ||||||
Add: unamortized debt issuance costs and debt discounts | 20,972 | 38,761 | ||||||
Less: cash and cash equivalents | (114,919 | ) | (102,454 | ) | ||||
Total Net Debt | $ | 1,687,984 | $ | 1,797,208 | ||||
Adjusted EBITDA | $ | 469,616 | $ | 419,859 | ||||
Net Leverage | 3.6x | 4.3x |
Non-GAAP Financial Measures
(in thousands)
(unaudited)
Twelve Months Ended | Twelve Months Ended | |||||||
2021 | 2020 | |||||||
Net income (loss) | $ | 37,738 | $ | (37,491 | ) | |||
Amortization of intangibles | 85,730 | 80,255 | ||||||
Share-based compensation(a) | 17,457 | 10,987 | ||||||
Capital restructuring bonuses(b) | 2,702 | 2,702 | ||||||
Gain on foreign currency and embedded derivatives(c) | (2,778 | ) | (8,454 | ) | ||||
Acquisition and divestiture related charges, net(d) | (1,041 | ) | 3,932 | |||||
Business optimization project expenses(e) | 820 | 2,524 | ||||||
Plant closure expenses(f) | 1,825 | 2,649 | ||||||
Loss on extinguishment of debt(g) | 64,939 | 44,262 | ||||||
Professional services relating to EO sterilization facilities(h) | 44,793 | 36,671 | ||||||
Accretion of asset retirement obligation(i) | 2,221 | 1,946 | ||||||
COVID-19 expenses(j) | 910 | 2,677 | ||||||
Income tax benefit associated with pre-tax adjustments(k) | (51,454 | ) | (43,536 | ) | ||||
Adjusted Net Income | 203,862 | 99,124 | ||||||
Interest expense, net | 106,702 | 215,259 | ||||||
Depreciation(l) | 63,432 | 63,309 | ||||||
Income tax provision applicable to Adjusted Net Income(m) | 95,620 | 42,167 | ||||||
Adjusted EBITDA(n) | $ | 469,616 | $ | 419,859 |
(a) Includes non-cash share-based compensation expense.
(b) Represents cash bonuses for members of management primarily relating to the
(c) Represents the effects of (i) fluctuations in foreign currency exchange rates, primarily related to remeasurement of intercompany loans denominated in currencies other than subsidiaries’ functional currencies, and (ii) non-cash mark-to-fair value of embedded derivatives relating to certain customer and supply contracts at
(d) Represents (i) certain direct and incremental costs related to the acquisitions of the noncontrolling interests in our
(e) 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 recent acquisitions, the
(f) Represents professional fees, severance and other payroll costs, and other costs including ongoing lease and utility expenses associated with the closure of the
(g) Represents expenses incurred in connection with the repricing of our Term Loan in
(h) Represents professional fees related to litigation associated with our EO sterilization facilities and other related professional fees.
(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 donations to related charitable causes, special bonuses for front-line personnel working on-site during lockdown periods and incremental costs to implement workplace health and safety measures.
(k) Represents the tax benefit or provision associated with the reconciling items between net income (loss) and Adjusted Net Income. To determine the aggregate tax effect of the reconciling items, we utilized statutory income tax rates ranging from 0% to 35%, depending upon the applicable jurisdictions of each adjustment.
(l) Includes depreciation of Co-60 held at gamma irradiation sites.
(m) Represents the difference between income tax expense or benefit as determined under
(n)
Source:
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