STERIS plc. (STE) CEO Daniel Carestio on Q4 2022 Results - Earnings Call Transcript

STERIS plc. (NYSE:STE) Q4 2022 Earnings Conference Call May 12, 2022 10:00 AM ET

Company Participants

Daniel Carestio – President and Chief Executive Officer

Michael Tokich – Senior Vice President and Chief Operating Officer

Julie Winter – Investor Relations

Conference Call Participants

Chris Cooley – Stephens Inc

Mike Matson – Needham

Matthew Mishan – KeyBank

David Turkaly – JMP Securities

Operator

Good day and welcome to the Steris PLC Fourth Quarter 2022 Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Julie Winter with Investor Relations. Please go ahead.

Julie Winter

Thank you, Ted, 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. 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, re-transmission 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 of these 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 of organic revenue growth, and free cash flow will be [Indiscernible]. Additional information regarding these measures, including definitions is available in today's release. Also, along with 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 fourth quarter performance. For the quarter, constant currency organic revenue increased 11%. Growth was driven by organic volume, as well as a 120 basis points of price. Acquisitions added approximately $253 million to revenue in the quarter, which is broken down by segment in the press release tables. Gross margin for the quarter increased a 120 basis points compared with the prior year to 45.5% as favorable productivity pricing and acquisitions were somewhat offset by higher material and labor costs. We continue to face increased material labor costs, which totaled about $20 million in the quarter as anticipated.