STE - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the STERIS PLC First Quarter Fiscal 2021 Conference Call and Webcast. 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. ahead. go Please

Julie Winter

consent Carestio and have Mike, Mike everyone. today's words and On our do Officer. Thank a have Rosebrough, good our we few Dan CFO and Walt of Vice the rebroadcast only and Chief STERIS This today. as of President call, contains caution Any Operating Senior I you, for expressed of information time-sensitive redistribution, management. we from President open or morning, this of without call that our and Tokich, written before retransmission prohibited. strictly comments webcast CEO; is is accurate

securities in Some or considered update the forward-looking of limitation, or undertake without risk available filings The during revise forward-looking a made cause company information are any statements, developments. or this STERIS' does result factors be important those not described Many or our those website. factors could as events may differ and of on the future the SEC statements. to new actual including, statements to review filings. STERIS' statements company results forward-looking in are through from materially

revenue flow, segment measures, In per and share, earnings non-GAAP currency operating growth will cash organic addition, income, financial including free be diluted used. constant on call, today's adjusted

of to Additional financial information will With including are their I to Mike. by those providing measures in presented information decision-making. available with is over non-GAAP regarding release, financial measures. Board the supplemental greater operational Directors these with call Non-GAAP financial hand during intent measures, and and transparency used management the on reconciliations analysis the of and today's including definitions, call financial between GAAP this cautions,

Michael Tokich

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

basis declined currency revenue price. of offset in decline volume, driven constant by quarter, the For a points by XX favorable X%, organic

change benefit in for of As quarter of revenue recognition. one-time a revenue reflects a $XX in a reminder the Healthcare million the Capital timing Equipment

beginning that XXXX, the revenue adopted operating required integration may the room installation the fiscal of during when at system products standard process. You our new configuration onsite equipment recall we significant recognition accounting capital

we we complete. the the our before As the full which of enhanced required shipment allows all plant design installation then, OR Since result, were assembly revenue to and was simplifies have product the our of until equipment a line, defer and installation process. for in configuration

consistent a As revenue on with is products. result, the terms, capital recognized equipment based shipping other

primarily from for currency constant tuck-in year quarter includes acquisition, spread across the capital consumables equipment prior about a addition, in organic $XX In revenue Healthcare service. million total of and

both earlier, noted the from change and to expenses, recognition sales costs I compensation-related lower diluted compensation share. XX.X% grew per of rate margins was these somewhat volumes. and EBIT was of the $X.XX stock first and last quarter increase to the X%. reduced would Excluding of includes a income Gross $XXX.X in to quarter currency in productivity impacted deduction. in declined revenue lower Net increased mix the and the benefit for constant by for earnings X%, items, and year, of was the company from The and million benefit million about expenses. flat offset the XXX $X of an at have in effective was well due part revenue as revenue by a quarter price as XX.X% XX.X% quarter quarter approximately margin the organic adjusted to favorably as basis due total tax timing travel points marketing

debt-to-EBITDA, ratio lines standpoint. well-positioned X.X and a a below the is Our liquidity strength available times source we cash our Considering of balance million, company. access to sheet continued position from $XXX.X leverage are for of a credit

year last prior to increase The capital while within the was the amortization versus depreciation, $XX.X was in totaled quarter, million. the the for cash $XX expansion Free quarter AST segment. related flow million is capital to quarter his projects increase that, expenditures During expenditures $XX.X under first primarily I over year, an remarks. Walt the payments due the programs. call improvements to will in and over turn government for million, With of deferred working tax capital

Walter Rosebrough

and good Mike, Thanks, morning, everyone.

performance first nature revenue currency while Our quarter Collectively, diversified reflects across same last solid to business the adjusted of overall quarter just pharma the customers. our compared our and year. X% increase constant in medical device, fiscal earnings the organic STERIS' Healthcare declined

consumables Healthcare, the for saw Healthcare pleased across biggest near prior in end performance very segment. reduction but by most increases results. sequential segment down levels of the Given monthly by procedure with with those the quarter, deferrable June. revenue XX% circumstances, the the mixed impacted our we culminating generally were XX% are overall declined we in

is reduced the Even $XXX million $X benefit same of ended $XX shipments backlog, last reduction, returning ORI, account with those and trend with million million revenue, as as Mike as would quarter recognized. that the as rest capital asked that business. year is one XX% witnessed compared $X declined Healthcare business we were we be I me levels when service from which from sequentially areas change quarter, year but down June products, discussed it Service QX ORI that in Healthcare backlog add by same well first this Equipment our continued up year equipment same trends As shipments most just Capital X% and In impacted last $XX million, QX to but backlog earlier. benefit for grew the consumable million the of prior in also following taken to mentioned the the STERIS, consumables. the similar of entering to the adjustment. Healthcare continued as into of strong also in the with quarter and the

Equipment replacement the not of commented have particularly pressure come I quarters, be see can Capital by surprised some under As delayed before, customers. some our Healthcare over be we coming equipment, would which to

the revenue continued demand result PPE quarter. within for on business' Life sequential customers. as and was a by medical Sciences offsetting devices versus customers vaccines a procedures. Once That from QX, Supporting XX% year, sterilization, device customers inventory. in our deferrable experienced increased for is flat to processing growth, procedural the reduction exceptional our we benefit was the This XX% basis consumables in biologics. grew growth which device Turning year. revenue to Sciences with driven Life desire elevated AST, part of in again, last expectations we prior which for largely that build pharma to grew in performance, continue serves

trends we sustainable. We growth this business. is do favorable to suggest While not this see would growth for rate continue

and will generally come particular costs, success as which improvement Our normal. variable selling margin our our reduction, reflected and expenses earnings in return back to in businesses spending travel

in million up our us and We and net that ramp subsidies In short-term layoffs. that they and we addition, of chose was trained to dedicated paid our with placed as along to related people of about right partially on attracted support maintaining adjusted are we the other thing staff government avoid the as customers excluding were normal Healthcare unpaid levels. costs $X which subsidized discussed some We governments helping is to procedures furloughs, COVID quarter. underutilized our fully from do, items now we costs believe around profit decision these by world. to last quarter, the Instead,

expect invest been going continued planned, businesses as another and in furloughs we do Our reduced forward. originally to as substantially come On R&D back. note, have so to we have

and these anticipate SG&A States deferrable Since of in our you will United a we we volumes the May, adjusted As we as last in witnessed rise to result factors, a business procedure Europe. spend that dollar spoke rebounds. in turnaround

While how flat compared the recovery is been COVID still some surprised product year. hotspots as able Healthcare to quickly providers have running of region-by-region our we slightly procedure to up back. the occurring, bring are to now pleasantly to are and volumes been lines have prior Many

deferrable market. may to come are some reductions continue to believe to be procedures we the back STERIS' and expect balanced as uncertainties Although April remain in low the return COVID their May, do a to or changes levels due benefit Healthcare that and to ability experienced We providers to hotspots, optimistic model improved in to business to see have respond we not we and well-positioned disease. will of

our a changing of Yesterday, a Chris the Holland. announced gears earnings we from release, member, financial bit Board addition performance. our new Now in

know as by Chris may Board prior of and are we CR to to Dickinson. the benefit a perspectives. his at from Chris Becton acquisition Bard, CFO happy to the our his have You experience role brings and insights great

an consecutive year increase in representing per increase. quarterly announced dividend also to of We share XXth us yesterday, quarter bringing per $X.XX our our and dividend

Mike discussed, through to our pleased be strong, and our our to to value As cash and remained returning shareholders we flow directly able are continue balance dividend. sheet

and are to in very As essential business you the in supporting know, be in an is business financial to strong we fortunate Healthcare, are we STERIS be position.

needed the pandemic support that to ready us through as be and nimble our believe plans are We already to Our customers on managing approach paying-off. capitalize to our future to opportunities. well-positioned leaves

we the questions, express work pandemic been facing do in challenges to the around world. they our times the respect providers and and open are to caregivers this till Before These the Healthcare gratitude unexpected the continue day. remarkable we to front and lines of have and unprecedented monumental,

thank unusual offices in the own the field behind the those and people in labs, in their also those customers from our this our and We factories, STERIS, of working with scenes working homes time.

their adjusting a this to situation, done patients. serving of Our and team has difficult great customers job while

in strategic and grow. positions our confidence Our to continues capabilities operating

there more opportunities downside, risks. ready the While uncertainty potential situation, is to upside both and we and near-term mitigate given stand in COVID capture the

STERIS call Julie to long-term over is the continue believe now We back I Q&A. for to the to will future turn open that, bright.

Julie Winter

the can Q&A. Thank comments. for you, please we started your would if give Mike with and you Mike, Rob instruction,

Operator

Yes, Instructions]. ma'am. [Operator

Securities. from The ahead. of Dave will Please Turkaly have question we JMP first go come

David Turkaly

Walt, meaning attitudes love kick sort your it ahead. opening level on did your off difference given what thoughts have, improved. up in you know love I morning. the the their come is you back to get thoughts, it mentioned said the to the customer high surgery And Good you have continues base here. the just consumer anticipate that on, of like towards, I of your do in. Great. quickly? would surgery noticed patients to state monthly, just going of get of progression hospital, today, hospitals terms that I you maybe and the to rather that

Walter Rosebrough

the Well, is certainly, answer Yes.

and procedures world job fantastic ways. happen surgery longer patients the with into Both who don't center and precautions know recently hospital with are a visitors are I around that staffs coming taking to the done Healthcare are things and they been I and systems in. the assuring safe have is the the and their country a facilities have they think in it go of to a done patients number to that of around that have number done I for fantastic. are have, if own of you their coming in,

So, the to of used about pretty taken straightforwardly. care are problem of they all him There have and time they this. again, all are have that that talking kinds methods we

speaking with potential First, physician. my that of a number decision understanding patients in is of or their from factor number one patient it them, is making the kind

have they places be the what outreach great their physicians that to kinds physician all country, give done doing COVID them in is the reassuring so, opposed of people other hospital the outreach safest which may causing as to are to the be things And is around that work their to spread. offices be, patients, to using and of one

had number I of done their though actively they staff, actively a job with the bear facts low physicians patients. even up. that involved They have COVID COVID who a We So, PPE. that great in amounts are groups, of heavily involved, in own and know extraordinarily think

of let done largely to is the doing that marketing, physicians have facility So, they it it make and to work people marketing to not the much. is it so is places safe the the their know both return, that the safe

more done into have The moved patients more procedures they other spaces that comfortable. have and feel things is more they

as in the like So, of well room. surgery the types other ambulatory as operating and centers centers, that, standard

on overrun And patients. the toughest is it pretty And to work in last think, significant are the City or course, have among the areas New this in miraculous I hospitals. easier the that I spaces they really, where places So, three we burden were somewhat done it mean, see other didn't months early. of of concern that two like the York been, offset potential level is

David Turkaly

mentioned the quick for I that that from is future you now? Maybe Thank that happen you follow-up again Mike. But for or done something see in is XXXX million change. is XX the that does that The - is last we that know that that.

Michael Tokich

a we had. that No Dave, onetime a was adjustment that that is

in see point that will this at finally again. time, are not we So, you

David Turkaly

much. so thanks Great,

Walter Rosebrough

extent but the - is like effect. is to that not will pull-forward only quicker if you come because just that there business quicker, David, revenue will a grows, growth the recognized the

David Turkaly

Thanks. Got it.

Operator

of have we Next Stephens Chris Inc. Cooley

Christopher Cooley

a slowly operating be on Thank which about solid the and Life taking saw bit you. Maybe think Life I is something quick fiscal there are year? the I its the margin some XX.X% should contribution for in particular itself shift reverse to maybe to guess, look of with that, a a follow-up. expected year back margin? out? and bit to which margins more on purchasing I Good want that there. if to in half patterns? you could, one And the to a some record we such PPE instances. both have we the there that to Sciences. kind enviable. would the on that morning. a of consumable that, as something structurally, the working may the of got think a quarter taper that normalization similar about commentary to fiscal marketing But, in I Just us think more and let's that Or Science Walt and we questions, hit appreciate towards second growth make some appreciate little stocking my bit question Science start take of congratulations How I and Is correctly you way in a of AST first have - throughout in at little lingering shifted is is consumables in we so sure, business see able Life really Help thinking little that about of AST, how that you start

Daniel Carestio

mix heavily-based actually. you is on we margin think high Life And was in This that fact I stream. had on first consumable that Carestio quarter the saw very the Hi. of Science a the Okay. the Dan revenue question, increased

out portfolio, manufacturing. you drilling spot Some customers also of requires supply Life for actually portion just our significant it being sure septic really vaccine area STERIS for a portion some is customers. those investments stockpiling is by that Sciences is all from demand because in of that of is right and increased the it sweet an now a production, that in our With

the interim consumables significant expansion any the extent to for believe see some their pharma a in in particular. that purely extent benefit Capital the as making then we sustained, we our that CMOs factories, So is the benefit business side we see starts in future. our or at other will may of some see consumable in a To sustained Equipment we this business short-term, But in investments play time. it the

Walter Rosebrough

guess thinking slow I down to anyone I next add, the would think Chris, or is going And are don't two. I year vaccines

PPE in for called a are relatively is speaking consumables space, margin feel bullish not of So, general are been XX% lower on we if And in we deferred. but are many than year-over-year, volume, that related the if surgeries the to bullish on have anything, planning that that in we that you AST, product it the long, very on space. high

to And expect largely I that as so, come surgical reverse a and is would slowly type issue mix devices the back. it

Now, know are that a to PPE don't going slack I great deal. see we off

to due magnitude So, of back some move original it it to I come numbers, not mix. to but of orders would back expect may the

Christopher Cooley

plus low I I has finally ratio then the for But really here, a not a appreciates up greatly across below really times. time. challenge conservatively and since leveraging either. just appreciate this understand leverage being in very always have It in the is level here. I And and I'm from long that relative ran been here years Walt color. business you XX me, And -. time historic toggling especially X.X the not seen

increase there X% back Just the so curious, after accruing an to structure? capital But in enhance we got opportunities just even cash this term much. just the sheet, cash, current here either think opportunities from how to invest the dividend deploy Thanks be where to from an about balance the profile, than the perspective, margin on is you assuming M&A I'm see in longer rather business quarter, do opportunity to or growth.

Walter Rosebrough

we have so. about or and the Chris, been have over that very, decade spoken Sure, consistent very

investing You do continue that to of in the to a we the we talked good discipline absolutely and spend did less spent capital, last coming. forward We provide have to about business. have. terms this in we absolutely already is grow We that, actually we believe line to business significant to our you intend we cash ago the how profit have growth, dividends. management and businesses to as in think quarter intend for somewhat of of hospital than with we And, the mentioned, quarter dividends, investments flow in seeing processing intend are year, outsourced capital a which in clearly moving capital. space the this AST more intend Mike have And significant also we we and spend

those After we new and things. two efficient run us hit of spaces. moment So long-term new others of to due already because the when in more that in opportunity are number capital every the on a running space. have the did little look issue this near-term either then on them so want things. we around or that, back things and around to we run plate And products COVID to I uncertainty this of rather of some for looking our those we at would new pulled for spending in businesses in is larger, But orders the the spend that just make magnitude are place kind in money of in our in those time general, with view

shape search go to can and situation of known. never are own things those feeling that and timing are kind more hunt. our back then that is the cash But, we good comfortable in We those of

to out, suggest our two things door We next I things now to don't happen are portfolio. don't it or loudly things is add right see We But be don't like our investing to the that stepping would our So, either in or in we and like surprising we understand. space wouldn't are that space. something over into morning. going tomorrow year if worth

did the seven level to We ones. changed, large relatively it pause going are we a we on far is it control the timing timing cover four, than high some the just those we to before pipeline six we in than things. we Usually a last certainly continue more a be has a are making or seller comfortable at don't today more of remember in, things So, control little XX-days that active. those intend seems small we we kind year like And do. were you of of we took and see did range to there But relatively decisions. of hasn't ago

Christopher Cooley

you. Thank

Operator

Needham and of we Next company. Mike have Matson

Michael Matson

Hi, have for infusion been questions. you I of what thanks just by deferrals, taking also cash a been obviously from the hospitals there hospital for are my guess hit capital with start spending, wanted huge equipment but the hearing is the I to elective the outlook government. from

just thoughts there be would So helpful. any

Walter Rosebrough

and probably You I since hundred times Healthcare this spending loves change at know the been STERIS. hates But, I capital have uncertainty. said have

in been so, have bit, last times more And the uncertain but we are little also little we changes. seeing bit a a

year the going how not to next So, over work is or it out clear is two. that exactly

our - spending move not. capital of Healthcare greatest saw to Whether a part this ambulatory rate growth they hospital for that already a was of we surgery said, I type moving in or facilities. system As be the

closer and is that if trying said places not what comfortable just be would if their to homes I that given you move so, there accelerates, feel surprised B, traffic will. And I to less more they A, to patients about

to not And be that I would see spending so, accelerate. surprised

felt for see need do same both cannot They have surgeries, some as take We and centers, capital the stronger equipment. type to extensive surgery that infrastructure more a that. have them on time particularly entree you of more they

currently ambulatory up mix in So, can’t sterilization they And I have. they implants expect to would move orthopedic capacity see with do that surgery. the again,

our we for that opportunity capital is for ORC. So, both spending think and

So, see hospital, does artificial that that they one lung equal complex out in more we surgeries, knee. positively one space to for longer-term surgery the heart do two for intermediate every transplant of the moves put and in not

stay And the though numbers continues constant, so, may even rise. intensity to the

backlog think we short-term, last speaking somewhat revenue, long-term, generally the slowed as And are we number little flow, mean, good put had just we for they stopped steel in a normal but there hospital down. consequential cash good then, their the you the see the ground, rarely bit visibility places cancellations. get spending slowed like or is it I than again way. the in on facility. stopped big I it Healthcare news So fashion. us see just very going years. which a to did lastly, for as And down the with will we projects the But just capital on any very slow has freezes. In begin growing they of put XX down their are or or a labor, then more they rarely Once fill are for you to need rarely

COVID as for pipeline's down say got But So let's we before the I shut will salespeople saw a serious think, XX-days or everything, access But for have. right those what XX-days, days had to to U.S. roughly they ability They in no than but now softer will, facilities. care. bit would our ago, we continue XX- patient

facilities now in the on with And their needs. so, are we field, working back

good. So, But, early in I looks pretty the exact the strength I lack to predict think think or to equipment. intermediate it is of yet strength capital longer-term

Michael Matson

expect you as to time Okay. be same remain as to then a procedure just the like far strong. driving of Thanks. been has At sterilization devices, the goes. lot AST to That continue electric that the And recovering. sounds demand, PPE seem

can device volume the up. of going imagine or specialization be laser So,

high those And capacity that that then things the So, volumes? Thanks. seeing way you to to got about adequate both meet is it? you feel think if have demand right are do all like

Walter Rosebrough

that we see it, first see answer we exactly In way how short, is your this almost the it. is question Is the yes.

The hundred extent stay second and million over we years of ahead always we question that building in will we in spending the a capacity there are AST. we can. dollars to try utilize capacity, there several be few next terms believe is of capacity it reason that the demand the Because to to

think So, capacity be there we forward demand. will meet that building requirements going we do to and are that

Michael Matson

thank Great, you.

Operator

come The we will Larry of James. question next Raymond Keusch have from

Lawrence Keusch

wanted Thanks and couple on morning, on Walt quick everyone. first touch I here Healthcare. to a things just

curious in don't total I think probably down are do things Just have levels we the that just year? In thinking the is lowest second least year-over-year. of you July. growth that part quarter, you actually about grow. of run two of understand of of improved And that year. year procedure the that stabilization that for And kind think June the been quarter how I surgical procedure this of quickly? sort know obviously volumes would don't here, can view are it in through fourth half the ones there But fourth volumes, again, do let's call then the actually and surgical as some fiscal you it you expect question, kind at other

Walter Rosebrough

talked last is of kind room little us, the right, volume think, that X%, would basically And for the saying year's I last places growth facilities try percent you short if as, it that in year, see typically where that is of questions But growth. would are are levels. are X%, or I last to procedure X%, approaching grow that it the same have I see business confused I we are has the still to by is year. they is, of XX% described numbers so, we piece But from X% XX%, do did think normal the most last X%, is, about it, expect say answer to but of running, a it. will not we to not AST X% answer

to answer you occurred. so there I last to going catch that How will a that also quarter or some my growth catch is the up up probably happens, is is quickly then from occur that and XX-month is are the card. have my think all to occur of will that So, is there have in view, and of But more the some to general, see is growth we normal a we top XX-month it. catch seen if wild view would up on take them likely that

Lawrence Keusch

state I fiscal then the clearly question trying guys. the fiscal understand as this think And kind perfect. I again you for just to fourth of the marks Okay, if business, was enough. just the dynamics didn't for you think maybe year quarter across you below about

you quick over UK As ask lagging just I will year-over-year. rebound at in to from guess And then surgical I seems growth look bit other question. the a one volumes certainly be quite there. procedure

the much. just But in call excluded being was Thanks what just chatting wondering very from Walt was his comments. you this are I I in seeing mentioned COVID your sort Mike, profit again with and repair prepared you outsource associated exactly on of again, instrument when So business what And business. from gross costs? know guess one

Walter Rosebrough

growth would rates if be Again, Larry. for we relative Sure, were comfortable giving guidance. quarters, understanding we

as thing is And right trend. call call will probably opposed now general to it to toughest so, I timing the

laid on views I we trends, timing, general are we so, our the have that And nearly out think the so not of question. comfortable

So that, is year-over-year going worst I fourth don't performance. know that feeling would have quarter, or third second we best quarter, be our strong to a quarter

rest correct Europe You showing ORCs the of this AST the in are in been to it Europe. the true, businesses are be moment, bringing the rest Europe, ahead tends that. of It back is converse about of both has is and absolutely the U.S. procedures At lagging the entity UK. in our

been I stronger, has better I the has of for space. call our will So, entity terms should in it been back UK slowest say, Continental lack Europe and quicker, coming

coming have UK as not in But we relatively there back United are ORCs our levels, in As of - low it very ORCs back piece you States and the from they as know, the year. they that small on are seen is far the real But is in average. business. were the earlier

is that answer level to high at the So, that a question.

Michael Tokich

being Larry, costs. question then out the regarding for is your COVID-XX what And from adjusted

our Walt that other our about, Meeting the we And with specifically some the furlough cost. had some employees some beyond CARES have majority above opportunity, costs is that from in point. this and related in in As a some cancellation portion UK fourth quarter, million We particular, PPE at protocols cleaning to of enhanced Act the we cancellation some our we also we of the had are so the of has also government some folks that. to we associated had benefits of we and $X paying received not did that for employees, we put under-utilized some of We and as benefits the Italy talked the hold talked from also that did meeting into Annual that also costs. our incremental and furloughed year, we

So, $X.X the is of that the compared last to about quarter quarter, all fourth million $XXX,XXX total net cost in the in of year.

Walter Rosebrough

orders I at and magnitude they and and similar the of are in is the largely money this bulk think into point. magnitude furlough work pretty that quarter back this piece orders to quarter is Larry the of probably numbers, non-furlough getting last of people, without

Lawrence Keusch

I assume into should we down, at that as costs gross go So, just next the to profit excluded look think. should finish you from any that, quarter, would

Walter Rosebrough

Yes.

me, expectation work, we bring that, as do will to people rise cost is will costs. excuse rise and that cost Our rise have and or will with we will certain back it revenue as revenue will fall

Michael Tokich

if will costly or will will. we we not to We you certain have But protocols. will have costs certain to this extent, continue

Lawrence Keusch

Okay, Thank great. you.

Operator

Next, Instructions] KeyBanc. Matt Mishan of we [Operator have

Matthew Mishan

Julie Walt, for questions. Hey Mike, taking thanks the

vaccine on up production. follow a Just

customers to what could the might Assuming needs that to chance And some XXXX. full quantify any are get contacts or you. indicating sometime their that vaccines be your going might What of put production from in are be? we opportunity you

Walter Rosebrough

At going in going do who be for a right helping money prevention it level consumables do be at the similar is both any to vaccines effective. for question. trials lack on level, quantities, us equation don't terms for to high terms judgments very on use we they is recover isn't way because production and not we make clinical the for, begin know before It the the for are are equation early side spending we of to what as of patients know we are And other would that side the vaccines, same to better right would high under COVID too the that unusual of that to answer just is most and the be making which there the and two people now. drugs types of

production, number a have may manufacturing, are may end of we that money up not for spending that drugs. So, the potential or people

some of that our thing some to So, not. people would and is customers, people those those call be would of the

of at having So out production. this it to arise is, that, is think, point, early general expectation see I call, that we our will said that but

Matthew Mishan

have or you assuming you. of high you this Okay. for than or Healthcare I'm technology here. Is for market Were is for an that watching? is there - impact you should would this areas lot more your we vaccine different particular that fragmented very customer kind be give a very or outsized a potentially a share, of biologics competitors

Walter Rosebrough

I than less don't know maybe fragmented is it fragmented. that more

hospitals, or more or vaccine systems. than are lot is a producers. in back Healthcare in country and call you the There health there care world the If step systems

I don't a say And, we out say wouldn't specific there vaccines. is our and one it interesting that, of for equation versus would I the us, technology is, any of is vaccines, that General side to other be other right. Growth that would this going step think be So, change

flu to more get sensitive tested, know you they I have far Because, have used recovered think until been than flu people you don't right. you are be. going vaccines whether to to taking

and certainly both all you things. want so don't and those And

think going going I the happen on be So, now, vaccines to the to is vaccines what right general, are is uptake. in the question

Matthew Mishan

kind equipment. of capital are mean, up those more that, the on that are correctly then are think you equipment? those machines on And putting I ramp they lead do if remember going orders to and those have customers specialized. I times When more longer quickly the for to to

Daniel Carestio

Carestio. X, it the lead the XX to is may customized Dan times depending X Currently depending in from our on days how it are GMP extent stay to This be. And, former they ahead capacity equipment product not and to may continually can customers in of investing months, can. extend or on

quarters our And so, next orders through backlog our strong. and intake few over the remained will flow of

short-term equipment it be of going in equipment It Sort of the production to capital not production to vaccine. the is for capacity to be level going the as equipment. limiting to though, information is relates opposed necessarily as more vaccine and sterilization decontamination

Matthew Mishan

last years. driver last AST And being is positive couple think you thing for of then over capital your about Understood. Okay. the question, a as

I would move you is managed net part procedure on positive a when think the you a people that the needs for the side, has surgical how AST? ASTs to see sterilization and their hospital understand that the equipment of most from and

Walter Rosebrough

life, yes. it is original a a facility. is, back increased of with capital ahead but lights if bit and [ASCs] suburbs, to all levels you capital of hospitals, to course, to the are go statement the Because and North stick cities is wall, ASCs the made, maybe of uncertainty general changed the to general, but if this in and a hospitals South, moving through positive. move, In from true generally new tables tables, capital you to Again, answer creates of facility tear spend, you of that. and don't it two-thirds true way can then (Ph) cities, I a brand sterilizer Tables suburbs you put It go new less to spend. you in typically, new very and out

from spend So of any the capital in change to or movement creates kind spaces generally we one that place speaking, operate. another

Matthew Mishan

Thanks a lot.

Operator

remarks. conference conclude closing our Julie session. turn will the question-and-answer I'm showing and go back Miss. this will I over ahead Winter to time, now questions. Ma'am. no for call we At further

Julie Winter

with the morning look of chatting Thanks and us soon. time to be everybody for all taking forward to your out with we today, of you

Operator

And time and your Take time a rest you Again, have everyone. lines. management At also call ended. we disconnect of great may to the care the now thank for you the and conference you ma'am Thank this also is team. your today day.

STERIS (STE) 4 Aug 202021 Q1 Earnings call transcript