STERIS plc (STE) Q3 2023 Earnings Call Transcript

STERIS plc (NYSE:STE) Q3 2023 Earnings Conference Call February 9, 2023 10:00 AM ET

Company Participants

Julie Winter - IR

Daniel Carestio - President and CEO

Michael Tokich - SVP and CFO

Conference Call Participants

Dave Turkaly - JMP Securities

Matthew Mishan - KeyBanc

Jacob Johnson - Stephens

Mike Matson - Needham & Company

Jason Bednar - Piper Sandler

Michael Polark - Wolfe Research

Matthew Mishan - KeyBanc

Operator

Good day, everyone, and welcome to the STERIS plc Third Quarter 2023 Conference Call. [Operator Instructions] Please also note, today's event is being recorded.

At this time, I'd like to turn the floor over to Julie Winter, Investor Relations. Ma'am, please go ahead.

Julie Winter

Thank you, Jamie, and good morning, everyone. As usual, speaking on our call today will be Mike Tokich, our Senior Vice President and CFO; and Dan Carestio, our President and CEO.

I do have a few words of caution before we open for comments. This webcast contains time-sensitive information that is accurate only as of today. Any redistribution, retransmission or rebroadcast of this call without the expressed written consent of STERIS is strictly prohibited. Some of the statements made during this review are or may be considered forward-looking statements. Many important factors could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, those risk factors described in STERIS' securities filings. The company does not undertake to update or revise any forward-looking statements as a result of new information or future events or developments. STERIS' SEC filings are available through the company and on our website.

In addition, on today's call, non-GAAP financial measures, including adjusted earnings per diluted share, adjusted operating income, constant currency organic revenue growth, and free cash flow will be used. Additional information regarding these measures, including definitions, is available in our release, as well as reconciliations between GAAP and non-GAAP financial measures. Non-GAAP financial measures are presented during this call with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision-making.

With those cautions, I will hand the call over to Mike.

Michael Tokich

Thank you, Julie, and good morning, everyone. It is once again my pleasure to be with you this morning to review the highlights of our third quarter performance.

For the quarter, constant currency organic revenue increased 7%, driven by volume, as well as 300 basis points of price. As anticipated, the divestiture of the Renal Care business impacted our revenue comparisons to the prior year by about $47 million, which is detailed in the press release tables. This is the last quarter of a year-over-year impact for the Renal Care business as we divested it in January of last year.