STERIS plc (STE) Q2 2023 Earnings Call Transcript

STERIS plc (NYSE:STE) Q2 2023 Results Conference Call November 10, 2022 10:00 AM ET

Company Participants

Julie Winter - IR

Daniel Carestio - President, CEO

Michael Tokich - SVP, CFO

Conference Call Participants

Matthew Mishan - KeyBanc

Mike Matson - Needham & Company

Jason Bednar - Piper Sandler

Jacob Johnson - Stephens

Michael Polark - Wolfe Research

Dave Turkaly - JMP Securities

Operator

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

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

Julie Winter

Thank you, Jamie, and good morning, everyone. As usual, speaking on today's call will be Mike Tokich, our Senior Vice President and CFO; and Dan Carestio, our President and CEO. And 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 express 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 our 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 yesterday's release, also including reconciliations between GAAP and non-GAAP financial measures. Non-GAAP financial measures are presented during this call with the intended 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. It is once again my pleasure to be with you this morning to review the highlights of our second quarter performance.

For the quarter, constant currency organic revenue increased 7%, driven by volume as well as 290 basis points of price. As anticipated, the divestiture of the renal care business impacted our comparisons to the prior year by about $45 million, as detailed in the press release tables. Our year-over-year growth rates will be impacted by this divestiture for one more quarter.