STERIS Reports Improved Fourth Quarter Results

Company Achieves Record Full Year Revenues



Apr 26, 2001, 01:00 ET from STERIS Corporation

    MENTOR, Ohio, April 26 /PRNewswire/ -- STERIS Corporation (NYSE:   STE)
 today announced its financial results for its fiscal 2001 fourth quarter and
 full year ended March 31, 2001.  Reported results for both periods include the
 impact of a previously announced $41.5 million pre-tax charge to cover costs
 and asset write-downs related to manufacturing consolidations, upgrading of
 the Company's service and distribution organizations and associated workforce
 reductions.
     Excluding the above noted charge, fiscal 2001 fourth quarter earnings were
 $11.6 million resulting in diluted earnings per share of $0.17.  This is a
 significant improvement over net income of $0.4 million and diluted earnings
 per share of $0.01 for the same period last year, excluding a $39.7 million
 pre-tax charge taken during the fiscal 2000 fourth quarter related to
 efficiency and restructuring efforts begun in that period.  Including the
 charges, the Company reported a net loss in its fiscal 2001 fourth quarter of
 $16.6 million, or $0.24 per share versus a net loss of $24.2 million, or $0.36
 per share in the fiscal 2000 fourth quarter.  Full year net income excluding
 the charges, was $29.5 million, or $0.43 per share for fiscal 2001, compared
 to $35.1 million, or $0.51 per share for fiscal 2000. Including the charges,
 net income for the full fiscal year 2001 was $1.3 million, or $0.02 diluted
 earnings per share, compared to net income and diluted earnings per share of
 $10.5 million and $0.15, respectively, in fiscal year 2000.
     Net revenues in the fourth quarter grew to $218.6 million, a 15% increase
 over the $190.1 million of net revenue in the year ago period.  The
 improvement in net revenues was attributable primarily to stronger demand for
 capital equipment from both the Company's Health Care and Scientific and
 Industrial customers.  Health Care Group revenues for the fourth quarter
 increased 16% to $155.0 million from $133.2 million, while Scientific and
 Industrial Group net revenues for the fourth quarter reached $63.6 million, an
 increase of 12% compared to a year ago.  As a result of the strong fourth
 quarter, full fiscal year 2001 net revenues increased 5% to a record
 $800.1 million from $760.6 million for fiscal year 2000.  Full year Health
 Care Group net revenues grew by 2% over those of fiscal year 2000 to
 $566.6 million, and Scientific and Industrial Group net revenues grew by 15%
 over last year to $233.5 million.  Company revenues from sales outside the
 United States were approximately 15% for the year, slightly below the
 percentage of international revenues from a year ago, which reflects the
 strength in sales to U.S. customers during the fiscal 2001 fourth quarter.
     Commenting on the results, Les C. Vinney, STERIS's President and Chief
 Executive Officer, said, "We are encouraged by our improving performance, and
 the higher capital equipment spending levels by United States hospitals which
 we experienced during the fourth quarter.  The Company also continued to see
 strong order rates for our Scientific and Industrial Group products.  These
 factors, when combined with our ongoing implementation of operational and
 process improvements, lead us to believe that we are well positioned to
 achieve our previously established year over year earnings growth target of
 35% to 40% in fiscal year 2002."
     Reported gross profit margin in the fiscal 2001 fourth quarter was 33.9%.
 Excluding the charges, the Company's gross profit margin improved to 43.7% in
 the fourth quarter of fiscal 2001 from 42.4% for the same period last year.
 These results reflect operational improvements which more than offset the
 impact of increased energy costs.  Higher energy costs lowered margins by
 approximately 30 basis points in the fourth quarter.  For the full fiscal
 year, reported gross profit margin was 41.0% compared to 41.5% for fiscal year
 2000.  Excluding the charges, gross profit margin was 43.7% and 44.7% for
 fiscal year 2001 and fiscal year 2000, respectively.  The growth in the
 proportion of Company revenues produced by the Scientific and Industrial
 Group, which are more heavily weighted toward capital equipment sales, was the
 primary contributor to the lower gross profit margin.
     Fiscal fourth quarter operating expenses, excluding the charges, were
 $72.8 million compared to $75.7 million for the same period last year.  Total
 operating expenses for the fiscal 2001 quarter and the year, including the
 charges, were $92.8 million and $303.8 million, respectively.
     Full year cash flow from operations totaled $100.8 million, a
 $29.7 million increase over the prior year.  The improvement in cash flow was
 primarily driven by a 28% reduction in inventories from year ago levels, and a
 substantial improvement in days sales outstanding of accounts receivables to
 61 days as of March 31, 2001 from 83 days as of March 31, 2000.  For fiscal
 year 2001, the focus on cash flow generation allowed the Company to reduce
 outstanding borrowings by over $63 million.
     In conjunction with this press release, STERIS Corporation's management
 will be hosting a conference call on Thursday, April 26, 2001 at 10:00 a.m.
 EDT.  Instructions for listening to the conference call are available on
 STERIS's website at www.steris.com (click on "Investor Relations").
     STERIS Corporation is a leading provider of infection prevention,
 contamination prevention, microbial reduction, and therapy support systems,
 products, services, and technologies to health care, scientific, research,
 food, and industrial customers throughout the world.
     This discussion contains statements concerning certain trends and other
 forward-looking information affecting or relating to the Company and its
 industry that are intended to qualify for the protections afforded "forward-
 looking statements" under the Private Securities Litigation Reform Act of
 1995.  Forward-looking statements may be identified by the use of forward-
 looking terms such as "may," "will," "expects," "believes," "anticipates,"
 "plans," "estimates," "projects," "targets," "forecasts," or "seeks" or the
 negative of such terms or other variations on such terms or comparable
 terminology.  There are many important factors that could cause actual results
 to differ materially from those in the forward-looking statements.  Many of
 these important factors are outside STERIS's control.  Changes in market
 conditions, including competitive factors and changes in government
 regulations, could cause actual results to differ materially from the
 Company's expectations.  No assurance can be provided as to any future
 financial results. Other potential risks and uncertainties that could cause
 actual results to differ materially from those in the forward-looking
 statements include (a) the potential for increased pressure on pricing that
 leads to erosion of profit margins, (b) the possibility that market demand
 will not develop for new technologies, products, and applications, (c) the
 possibility that compliance with the regulations and certification
 requirements of domestic and foreign authorities may delay or prevent new
 product introductions or affect the production and marketing of existing
 products, (d) the potential effects of fluctuations in foreign currencies
 where the Company does a sizable amount of business, (e) the possibility that
 implementation of the Company's business improvement initiatives will take
 longer, cost more, or produce lower benefits than anticipated, and (f) the
 possibility of reduced demand, or reductions in the rate of growth in demand,
 for the Company's products and services.
 
 
     STERIS Corporation
     Statement of Income
     (In thousands, except per share data)
 
                                         Three Months Ended Twelve Months Ended
                                              March 31,           March 31,
                                          2001      2000      2001      2000
 
        Net revenues                    $218,631  $190,092  $800,087  $760,626
        Cost of goods and services sold  144,542   134,361   472,147   445,201
        Gross profit                      74,089    55,731   327,940   315,425
 
        Costs and expenses:
          General and administrative      85,845    84,211   279,791   261,550
          Research and development         6,923     6,434    23,975    24,169
                                          92,768    90,645   303,766   285,719
 
        Income/(loss) from operations    (18,679)  (34,914)   24,174    29,706
        Interest expense, net             (4,273)   (4,067)  (18,417)  (12,794)
        Income/(loss) before income
          taxes                          (22,952)  (38,981)    5,757    16,912
        Income tax expense                (6,326)  (14,788)    4,440     6,427
        Net income/(loss)               $(16,626) $(24,193)   $1,317   $10,485
 
        Earnings per common share data:
          Basic earnings/(loss) per
           common share                   $(0.24)   $(0.36)    $0.02     $0.16
          Diluted earnings/(loss) per
           common share                   $(0.24)   $(0.36)    $0.02     $0.15
 
        Weighted average number of
         common shares outstanding:
          Basic number of shares
           outstanding                    68,595    67,507    67,946    67,489
          Diluted number of shares
           outstanding                    68,595    67,507    68,981    68,567
 
 
         Balance Sheet
         (In thousands)
 
                                                   March 31,         March 31,
                                                     2001              2000
         Assets
           Current assets                          $340,199          $389,119
           Property, plant and equipment, net       314,142           305,005
           Other assets                             190,639           209,450
           Total                                   $844,980          $903,574
 
         Liabilities and Shareholders'
          Equity
           Current liabilities                     $154,185          $155,902
           Other liabilities                        266,411           326,578
           Shareholders' equity                     424,384           421,094
           Total                                   $844,980          $903,574
 
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SOURCE STERIS Corporation
    MENTOR, Ohio, April 26 /PRNewswire/ -- STERIS Corporation (NYSE:   STE)
 today announced its financial results for its fiscal 2001 fourth quarter and
 full year ended March 31, 2001.  Reported results for both periods include the
 impact of a previously announced $41.5 million pre-tax charge to cover costs
 and asset write-downs related to manufacturing consolidations, upgrading of
 the Company's service and distribution organizations and associated workforce
 reductions.
     Excluding the above noted charge, fiscal 2001 fourth quarter earnings were
 $11.6 million resulting in diluted earnings per share of $0.17.  This is a
 significant improvement over net income of $0.4 million and diluted earnings
 per share of $0.01 for the same period last year, excluding a $39.7 million
 pre-tax charge taken during the fiscal 2000 fourth quarter related to
 efficiency and restructuring efforts begun in that period.  Including the
 charges, the Company reported a net loss in its fiscal 2001 fourth quarter of
 $16.6 million, or $0.24 per share versus a net loss of $24.2 million, or $0.36
 per share in the fiscal 2000 fourth quarter.  Full year net income excluding
 the charges, was $29.5 million, or $0.43 per share for fiscal 2001, compared
 to $35.1 million, or $0.51 per share for fiscal 2000. Including the charges,
 net income for the full fiscal year 2001 was $1.3 million, or $0.02 diluted
 earnings per share, compared to net income and diluted earnings per share of
 $10.5 million and $0.15, respectively, in fiscal year 2000.
     Net revenues in the fourth quarter grew to $218.6 million, a 15% increase
 over the $190.1 million of net revenue in the year ago period.  The
 improvement in net revenues was attributable primarily to stronger demand for
 capital equipment from both the Company's Health Care and Scientific and
 Industrial customers.  Health Care Group revenues for the fourth quarter
 increased 16% to $155.0 million from $133.2 million, while Scientific and
 Industrial Group net revenues for the fourth quarter reached $63.6 million, an
 increase of 12% compared to a year ago.  As a result of the strong fourth
 quarter, full fiscal year 2001 net revenues increased 5% to a record
 $800.1 million from $760.6 million for fiscal year 2000.  Full year Health
 Care Group net revenues grew by 2% over those of fiscal year 2000 to
 $566.6 million, and Scientific and Industrial Group net revenues grew by 15%
 over last year to $233.5 million.  Company revenues from sales outside the
 United States were approximately 15% for the year, slightly below the
 percentage of international revenues from a year ago, which reflects the
 strength in sales to U.S. customers during the fiscal 2001 fourth quarter.
     Commenting on the results, Les C. Vinney, STERIS's President and Chief
 Executive Officer, said, "We are encouraged by our improving performance, and
 the higher capital equipment spending levels by United States hospitals which
 we experienced during the fourth quarter.  The Company also continued to see
 strong order rates for our Scientific and Industrial Group products.  These
 factors, when combined with our ongoing implementation of operational and
 process improvements, lead us to believe that we are well positioned to
 achieve our previously established year over year earnings growth target of
 35% to 40% in fiscal year 2002."
     Reported gross profit margin in the fiscal 2001 fourth quarter was 33.9%.
 Excluding the charges, the Company's gross profit margin improved to 43.7% in
 the fourth quarter of fiscal 2001 from 42.4% for the same period last year.
 These results reflect operational improvements which more than offset the
 impact of increased energy costs.  Higher energy costs lowered margins by
 approximately 30 basis points in the fourth quarter.  For the full fiscal
 year, reported gross profit margin was 41.0% compared to 41.5% for fiscal year
 2000.  Excluding the charges, gross profit margin was 43.7% and 44.7% for
 fiscal year 2001 and fiscal year 2000, respectively.  The growth in the
 proportion of Company revenues produced by the Scientific and Industrial
 Group, which are more heavily weighted toward capital equipment sales, was the
 primary contributor to the lower gross profit margin.
     Fiscal fourth quarter operating expenses, excluding the charges, were
 $72.8 million compared to $75.7 million for the same period last year.  Total
 operating expenses for the fiscal 2001 quarter and the year, including the
 charges, were $92.8 million and $303.8 million, respectively.
     Full year cash flow from operations totaled $100.8 million, a
 $29.7 million increase over the prior year.  The improvement in cash flow was
 primarily driven by a 28% reduction in inventories from year ago levels, and a
 substantial improvement in days sales outstanding of accounts receivables to
 61 days as of March 31, 2001 from 83 days as of March 31, 2000.  For fiscal
 year 2001, the focus on cash flow generation allowed the Company to reduce
 outstanding borrowings by over $63 million.
     In conjunction with this press release, STERIS Corporation's management
 will be hosting a conference call on Thursday, April 26, 2001 at 10:00 a.m.
 EDT.  Instructions for listening to the conference call are available on
 STERIS's website at www.steris.com (click on "Investor Relations").
     STERIS Corporation is a leading provider of infection prevention,
 contamination prevention, microbial reduction, and therapy support systems,
 products, services, and technologies to health care, scientific, research,
 food, and industrial customers throughout the world.
     This discussion contains statements concerning certain trends and other
 forward-looking information affecting or relating to the Company and its
 industry that are intended to qualify for the protections afforded "forward-
 looking statements" under the Private Securities Litigation Reform Act of
 1995.  Forward-looking statements may be identified by the use of forward-
 looking terms such as "may," "will," "expects," "believes," "anticipates,"
 "plans," "estimates," "projects," "targets," "forecasts," or "seeks" or the
 negative of such terms or other variations on such terms or comparable
 terminology.  There are many important factors that could cause actual results
 to differ materially from those in the forward-looking statements.  Many of
 these important factors are outside STERIS's control.  Changes in market
 conditions, including competitive factors and changes in government
 regulations, could cause actual results to differ materially from the
 Company's expectations.  No assurance can be provided as to any future
 financial results. Other potential risks and uncertainties that could cause
 actual results to differ materially from those in the forward-looking
 statements include (a) the potential for increased pressure on pricing that
 leads to erosion of profit margins, (b) the possibility that market demand
 will not develop for new technologies, products, and applications, (c) the
 possibility that compliance with the regulations and certification
 requirements of domestic and foreign authorities may delay or prevent new
 product introductions or affect the production and marketing of existing
 products, (d) the potential effects of fluctuations in foreign currencies
 where the Company does a sizable amount of business, (e) the possibility that
 implementation of the Company's business improvement initiatives will take
 longer, cost more, or produce lower benefits than anticipated, and (f) the
 possibility of reduced demand, or reductions in the rate of growth in demand,
 for the Company's products and services.
 
 
     STERIS Corporation
     Statement of Income
     (In thousands, except per share data)
 
                                         Three Months Ended Twelve Months Ended
                                              March 31,           March 31,
                                          2001      2000      2001      2000
 
        Net revenues                    $218,631  $190,092  $800,087  $760,626
        Cost of goods and services sold  144,542   134,361   472,147   445,201
        Gross profit                      74,089    55,731   327,940   315,425
 
        Costs and expenses:
          General and administrative      85,845    84,211   279,791   261,550
          Research and development         6,923     6,434    23,975    24,169
                                          92,768    90,645   303,766   285,719
 
        Income/(loss) from operations    (18,679)  (34,914)   24,174    29,706
        Interest expense, net             (4,273)   (4,067)  (18,417)  (12,794)
        Income/(loss) before income
          taxes                          (22,952)  (38,981)    5,757    16,912
        Income tax expense                (6,326)  (14,788)    4,440     6,427
        Net income/(loss)               $(16,626) $(24,193)   $1,317   $10,485
 
        Earnings per common share data:
          Basic earnings/(loss) per
           common share                   $(0.24)   $(0.36)    $0.02     $0.16
          Diluted earnings/(loss) per
           common share                   $(0.24)   $(0.36)    $0.02     $0.15
 
        Weighted average number of
         common shares outstanding:
          Basic number of shares
           outstanding                    68,595    67,507    67,946    67,489
          Diluted number of shares
           outstanding                    68,595    67,507    68,981    68,567
 
 
         Balance Sheet
         (In thousands)
 
                                                   March 31,         March 31,
                                                     2001              2000
         Assets
           Current assets                          $340,199          $389,119
           Property, plant and equipment, net       314,142           305,005
           Other assets                             190,639           209,450
           Total                                   $844,980          $903,574
 
         Liabilities and Shareholders'
          Equity
           Current liabilities                     $154,185          $155,902
           Other liabilities                        266,411           326,578
           Shareholders' equity                     424,384           421,094
           Total                                   $844,980          $903,574
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X43282843
 
 SOURCE  STERIS Corporation