SHC - Earnings call 1 2023 | Sotera Health Company

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Operator

Good morning, and welcome to the Sotera Health First Quarter 2023 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Vice President and Treasurer, Jason Peterson. Please go ahead.

Jason Peterson

Good morning, and thank you. Welcome to Sotera Health's First Quarter 2023 Results Call.

press of accompanying our today's the slides find section Investors website can release supplemental and on You at soterahealth.com. being Investors Health is available webcast recorded replay a This will in the section website. Sotera of and be

On Biehl. Executive Interim Michael Chief Chairman Officer, with the Officer, Petras; Michael me call Financial are and today Chief and

results the to adjusted of EBITDA, ratio subject in Health's income, forward-looking including for to note these beginning of in to leverage constant supplemental risks that the comparisons. currency the so be that financial adjusted today, refer the could to addressed today. in may to we net during and schedules net reconciliation non-GAAP will periods portion any A matters the of some our present adjusted of The those of no questions. question debt, X follow-up EBITDA that from the this call, all of materially to measures and Please addition X measures, The at found uncertainties net GAAP ask and uncertainties. opportunity update release and adjusted the comments margin description statements differ limit with can assumes the relevant the attached company's press everyone GAAP EPS, in company statements. to discussion this operator call assisting presentation. The are slides a statements forward-looking be Q&A yourself an to will projected and During cause Please non-GAAP and actual and obligation may company slide statements. Please SEC be considered implied. risks these presentation or filings both forward-looking the to for such Sotera give

Chairman post-call, As team. I Health Investor always, to over if CEO, and now me have reach Michael the out to will turn Relations Sotera questions, and call Petras. please feel the to any free you

Michael Petras

adjusted units company first, quarter, from want the financial X.X% declined results and and and of largest which with Consistent few is of of XX.X% of growth driven Nelson same although EPS in a for the in quarter compared XXXX. growth First year, major of first to business first segment, $X.XX delivered Sotera a everyone, earnings Sterigenics. lower Call. modalities XXXX the revenues moment, increased our Sterigenics volumes highlight by Sterigenics, Nordion a quarter quarter EBITDA fourth our topline to saw year. quarter quarter the adjusted as reporting first the the for during typical segment. I The declined Good XXXX Quarter harvest will for the prior timing Earnings on the the over you and XXXX volumes the commentary joining EBITDA period delivered but a supply thank all call, last revenues Health's $X.XX anticipated declined results. Total across volumes Michael made lower is and what items the first our decrease adjusted are morning, XXXX. the for quarter We more provide first Cobalt-XX typically Labs from quarter our for schedules Biehl X% quarter lighter detail at year, over

and to team supply headwinds challenges. continues Sterigenics inflation some customer through chain The work

anticipated business experienced which emission the an sterilization our and controls delivery North on best-in-class for ensure XX% segment in communities decline our our enhancements operate. Nordion, with Cobalt-XX employees, due We to services projects X harvest timing revenue year-over-year reporting other the customers and our America. underscore in progress also of to within we schedules. are industry-leading Sterigenics unwavering invest making facility capacity These to EO commitment continue additional active expansion in at enhancements

are large consistently to harvest Cobalt-XX the stated, tied schedules suppliers, timing from is our revenue we've the which As Nordion's of utilities.

we schedules, year are the we even Since harvest approximately be expected with have irregular the our revenue will of XX% confident into XXXX year. of occur revenue especially revenue though to this Nordion's forecast, in the half visibility back the of timing good these in

you supply that a on Nordion its potentially from sources of to of supply we X% in Russia a stated Previously, Cobalt-XX As portion Russia. of from Health Sotera result X% know, total many XXXX total could impact disruption revenues.

efforts of in the to complete, Labs, to a is health. Nelson prior X% community our Sotera of devices. because Even importantly, potential crucial I Cobalt-XX Health supply estimate advisory uninterrupted revenues. Cobalt-XX as compared and total sterilize health continued With the medical used of the XX% business world's proud testing single-use quarter Cobalt-XX year. the the of now the to global impact Nordion approximately team declined ensuring This X.X% we be on example we Russian volumes mission X.X% the how live disruption global lab safeguarding supply more great service to care is by our lower in to experienced is quarter revenue first am this area. our risk

certain of The Nelson typically full we testing year seen Labs, also the recovery first quarter of a to where types of not levels. pre-pandemic softer have is for

We and operationally are levels. to encouraged volume are by for some return pre-pandemic recent order positioned in trends

B communicated the an As Sotera our during on Health Term last call, issuance first of $XXX earnings Loan a during million closed quarter.

where call. XXXX we after comfortable we reaffirming earnings feel first first quarter ratio for X.Xx. last outlook of on positioned the Based -- communicated the are we quarter, at our the leverage net on the Our was first that

our a reminder, revenue outlook and range calls outlook recap adjusted versus for As Michael X% the both minutes. X% to growth EBITDA in details will few of XXXX in Biehl XXXX. a our the of

supply areas. Although, these customer we challenges in stabilization labor some and are still seeing with chains, exist inflation,

the for committed our I teams mission at our to shareholders. global across which like to work our heart company. reinforce delivering is would and Our remain growth profitability safeguarding of health, the

products services well-being broad Our health and serve and needs. human

and Whether pharmaceutical the ensure care sterility performance, of medical consulting help of products solve lives of to safety challenges, expertise we accuracy millions regulatory preventing of product's customers' we broad verifying health the around critical providing scientific a and across the or protect the we to are range world. our infection and our toughest

financials through more the Michael detail. will take in us Now Biehl

Michael Biehl

begin to on additional I'll you, equates leverage. do first the basis Thank moderating some and business currency year. Adjusted currently during will comments headwinds This of and are around our of by quarter XXXX a the a constant which half and The expect of by first harvest experienced quarter then the a outlook. On on XXXX highlights million. XX.X% as to of segments, feel by each a on consolidated total XX.X%, these basis with is to become quarter along the as declined a to Adjusted $XXX details capital we X.X% explained with year some company XXXX majority total revenues foreign headwind to first basis period declined schedules. by Nordion consolidated currency compared the foreign We deployment point tailwind company currency last back margins the on conclude quarter basis, million. X.X% Cobalt-XX EBITDA a compared XXXX EBITDA were X.X%. provide decline first supply of representing a to decline I Michael. levels. $XX same anticipated updates XXX covering the from

from of adjusted drove $X.XX performance the Our quarter of of first XXXX. a earnings per $X.XX, decrease operating share

share XXXX $X.XX XXXX. in $XX per per million to compared first quarter quarter income of $X first or of The net income million share diluted net had of or diluted $X.XX

interest quarter expense Our was reported the for $XX million.

compared a as take segment delivered good to X% with million at growth to quarter growth last $XX million year. our closer and another segment X% let's to Sterigenics first of look Now income quarter performances. $XXX revenue over the

the by of basis to the by of Nordion's income approximately income contracted million over harvest and compared X%, to XX% of partially offset associated Revenue pricing. Nordion's of compared about with headwinds to revenue $X first change the On quarter Sterigenics inflation, first currency impacts year. offset by declined volume to growth for versus the last foreign to revenue of quarter the revenue foreign partially supply volume X% XXXX, as lighter schedules. by mix, Nordion's XX% year typical XXXX, segment first in first quarter driven last the quarter a favorable was constant quarter remainder X% nearly segment period about income driven by quarter XXXX and points include of volume in compared and basis, driven timing of of of changes of first by over $X to favorable to unfavorable quarter the pricing XXX to same favorable was and which, changes expected, the decline million first currency grew X%. Compared currency Cobalt-XX by first drivers relative margins the year. segment declined and XX.X%, mix X%.

over by the of to revenue XXXX compared quarter first million, income Labs, million declined Nelson to and $XX first X.X% declined segment by to $XX quarter XXXX. For XX%

associated communicated, benefit On mix a previously currency the for approximate quarter first to Labs. and the lowest X%. quarter an in X% quarter as constant Nelson decline declined from of of basis, is the was Labs revenue last quarter as Nelson impacted of the offset by currency of pricing. changes over partially XXXX year. volume As by compared with well first These approximately of year X% X% first revenue Reduced typically for headwinds foreign we the were

provide quarter by quarter contracted basis XXXX approximately of XX.X%, first First versus Labs for lighter was Decline the first quarter impact or year, the of levels volume deployment leverage. relative of the will remainder to driven capital XXX partially throughout now typical to Labs to decline by Nelson margins point offset are that on the XXXX. of in maintaining net we favorable at staffing increased volumes want Nelson I cash note anticipation year. I and generation, pricing. highlights

the million company $XX operating of cash quarter, the During approximately flow. generated

equivalents million we XX, liquidity. billion in of and $X As cash had over March XXXX, cash available of $XXX and

mentioned million balance facility. existing ethylene and B. term the litigation paid the a on on new of during quarter, loan borrowings credit into the first we of proceeds, sheet a under to $XXX million related earlier, Michael the Using $XXX million our And settlement. we escrow revolving Term May on the X, $XXX Illinois funded closed cash oxide portion As of off Loan

as we Although, of our finish classified the net and debt the The are increase cash the above year until balance to target to settlement be our sheet escrow initially consummated leverage restricted in Xx. settling within Xx, new million in into quarter the cash dispersed ratio $XXX settlement to leverage funding plaintiffs. X net expect of will XXXX long-term and second company's million range is the second the XXXX this stated the the to on quarter funded funds $XXX will

million $XXX of end revolving quarter, of total our our credit funding total increased our a in available capacity amendment first to settlement pro at after escrow, credit to included in agreement, of $XXX the moving a to strong million. the liquidity also company the million. million, credit We were $XX.X lien first added to commitments is us new also capacity the which forma forward. on putting a a On basis of and first $XXX loan the approximate increase its to During closed the quarter, million $XXX position million an by revolving facility able letter $XXX.X

expenditures during increased investment CapEx capital first quarter Our totaled enhancements million. and XXXX Growth $XX the for the facility quarter. the drove

in outlook mentioned, to XXXX. To based XXXX, for reaffirming be in of total rate are of EBITDA on the billion rate billion, on growth February XX% million, expect we be quarter range in the see to million the annual the and representing full-year And in ended the Michael to effective recap, to growth $XXX rate of of what tax representing annual $XXX we X%. the where remainder year, the X% the adjusted X%. As an first to $X.XXX we our also an X% of to $X.XXX range revenues we income range Adjusted we XX%. comfortable to provided net of

increase quarter North XX% rate of is to tax full-year the with the fourth the increased be as representing expected elevated $XXX of expected the investment This range XX%, to expenditures be in of to a interest primarily America of the both in as increased continued Labs well in the facility development well primarily at tax limitations expansions $X.XX. XXXX our U.S. in in compared and $X.XX to million compared are increased expense million, expense, of is as as projects as outlined I we to for interest interest Sterigenics fund prior EPS reform. Adjusted is As to a call, to year represents EO to attributable coupled driven expense as and to growth in the by deductibility which decline Cobalt capacity rate earnings tax Nordion. result invest range Nelson enhancements $XXX continue and XXXX. Capital at

well. outlook previously The same other as issued remain our the of elements

look on business we unit. some I will provide cadence quarterly of reporting, at specifics As the each

expect Nordion, Nordion's Approximately XX% half For revenue comment total I income lumpiness during we total be the the year. year. on that the and year second year to of in briefly will continue will of segment of XX% realized the

the revenues X.X% was mentioned on previously, to supply is complete of supply of quarter. XXXX from Michael potential first As in Cobalt-XX there the Russia the Health as during total no Sotera X% loss disruption now impact

expect throughout the to call Sterigenics the and and Michael. Nelson back volumes Labs We you, realize expansion increased over year. I'll turn to now margin

Michael Petras

Thank you, Michael.

oxide topic the Before on session, touch transitioning Q&A of and the ethylene I to to want regulations litigation.

released proposal has for many EO you regulations. stricter the the As know, its of EPA

by public a comments considered EPA in regulations. industry to the is period proposals finalizing and that of the Now there issued, the members be for submit participants the to have proposed been

that proposals lot have our challenges time, and in and make their participants effort area. are operations, industry in in Although, a would capital require invested changes this our to all the leadership to EO confident post of we facilities

to As that process reports agreed this for the Committee the the million. Sterigenics settlement the the to amount summer. a the $XXX the Illinois Subject be May. we in escrow to settled in late be by cases completed into May all Pursuant plaintiff upon substantially funded on in eligible to X, of dismissed the of settlement claimants, be expect presented participation to settlement, track rates on participation terms agreement Executive settlement for the EO remains

As I reemphasize throughout a comments, remains strong wrap position that Health in for XXXX. I up to want Sotera growth my

feel the company's quarter good and to first The the was supply very of expected atypical we prospects. Cobalt-XX schedules. due current cadence about Overall, future harvest

open At call this up answers. point, I'd for like operator questions Joe, and the to

Operator

first our Patrick question come with Citi. And Donnelly Instructions] will [Operator from here

Unknown Analyst

Patrick. for This is on [ Lizzie ]

half on little bit the It follow-up. Labs in about of year. Nelson constructive So I one call, sounded trends. kind to the you're you have you of XQ the a I the seeing Can high mentioned back think for margins talk return XX% order on more there? the what

Michael Petras

expect you Michael. XXs settle continue levels just as pick margin high we up the is this in Yes, expect mid- Labs around volumes see progresses. Nelson to rates to and Lizzie, we discussed to the the to year

Unknown Analyst

just for Is of for the think I should that mentioned as around Great. and think And we year outlook then you broadly? X% on Sterigenics, it pricing the on kind quarter. how inflation about well

Michael Petras

price you. the range. we in and -- of Nordion range. the range of the the as is Thank Sterigenics end per that We of on we've across Nelson stated it year. kind company, of that expect higher X.X% on end middle is to X% lower is

offset. little several a of last the been ranges Over higher on running inflation the quarters, those because we've

overtime a I have the inflation into think been you'll But settle quarters we've see in ranges the offsets. because typical it the more of couple little that of seen. higher last

Operator

Research. Polark Wolfe will with question Mike from next Our come

Michael Polark

me. for Two

better. a a Sterigenics guidance, is to year. now plan? in is twists full that? before, relative now your the say, I'm segments prior if set no, are outlook? you the gear like affirmation lighter Nelson wondering on just Any My is in Anything turns the little versus all maybe than and appreciate suspicion when segments had First the X first you the Or individually but of little

Michael Petras

would February we I with pretty initial when say Michael. they're what Yes, It's is you the consistent. Mike. outlook. back gave in This line did in we

Michael Polark

Illinois, via we, expect at those? those other filing do you the rates? some public, or you the point have this when to see participation The I forum? month And follow-up on seen will Or guess, specifically see

Michael Petras

No.

sure the presented just now that's ongoing tracking They'll to the make out. -- visibility those have so right claimants, time period and are Mike, that counsel don't a plaintiff are have going that, things next weeks just to do we to have We along. reviewing now. the be of dialogue over that months, they'll being even So that with

we the stated things we million the visibility we well. the have just fund X May won't summer, as past escrow, escrow feel on $XXX progressing. we how today, comfortable as But mentioned until call did in As the I've are of on here late because

Operator

come RBC Capital. our And will question from next Dodge with Sean

Sean Dodge

in proposal out, what far has you out more all the are laid many standards the along the facilities to are now you on been capabilities, are to these now? your Michael, upgrading EPA how update that done, are then left can how meet stringent sufficient is us how And scrubbing in enhancements you've many EPA those go? making,

Michael Petras

we're our improvements. very Yes, progressing well on

double pressure we've total There We're to made. there's progress discharge, we've whole As the we've permanent negative comfortable that has we've in investments the and past, improvements in the very in XXX that been and proposal central scrub putting made, things X ]. the primary with place, got stated industry are [ some the closure address.

capital. It could comment and next some the there public of There we and some additional that for be unachievable a period that. the There's based require to EPA. place that some may point. the things that need intention over in we'll be mean ultimately, will our things I think, that's are comments don't that that there will to the potentially entire provide I are industry. modify several take weeks on months

the that. they how I from and made position the the leadership think about facilities we're good and on heading they'll these very, draft These understand that very we the feel get of direction appropriate are the when we've make proposals. in industry, investments adjustments. operate, But

Sean Dodge

more of pretty in equally will the on the little on you this operating kind year? bit, consistent it be that in point the into a year, of all you can we expectation the Michael anything the cadence, driven of Nordion then at ramp EBITDA is Great. on this across steep and I Nelson prepared of guess, share of remainder but Okay. and there guidance, And segments? then kind mostly Biehl, the back remarks, the on into of a the I the the visibility dependent drivers guess, rebounding the at touched Or is have the is kind half

Michael Biehl

Yes. This Michael is Biehl.

As the in we continues with Nordion said. the be what will think the track with we on of of half. second indicated, we XX% EBITDA and to being revenues originally That be and had XX% lumpy,

lighter really will first typically even there's change no And the year and really, so remainder over and we originally that Nelson, historically, Sterigenics from think of And of we up an is we've continue to ramp what on said. sort quarter seen in with the basis. as

Operator

And our Sergott with from Luke next question will come Barclays.

Luke Sergott

comfort I But you're clarity back. you're about would more the Is talking give to volumes Nelson, appreciate here there. and anything -- that of volumes Can just backlog but point us give expecting in a there quarter? -- that recovery in about actually little can you back? excess come bit to your the -- that come us were there any backlog? will you some talk building Anything pushouts anything you're to

Michael Petras

when order saw we area, in bit Yes, at more trends little our look the on. than particularly backlog, of validation our earlier our strength seeing a we're some in we --

So we -- prepared that's levels. some of around pre-pandemic remarks the

recall, moves may you that optimism recovering fully it seeing around As from forward. not That, the some levels. the things that in validation, of as we're particular, talked about we've pandemic some

continues team execute the it. So on to

continue as strong results. As customer we've to and get improved the I've SAT turnaround that probable of Net that well the competitiveness the past, stated scores the Promoter we the in Scores is as time, one most

just about past So the we've we labor the well feel situated ramp well talked other of well. as one things that fairly as And year doing to through is labor as the progress and is the we come. we the situation pretty in on team the expect

Luke Sergott

disclose the your a And your you Sterigenics? what EO follow-up for for are other Okay. Can Atlanta recapture and facilities sterilization in here. rates then

Michael Petras

Please define what recapture mean by you rate?

Luke Sergott

expected recapture. operating so new guys rulings Well, the to it's that -- are you around like XX.X% above going the that? be Are

Michael Petras

Yes.

to is too technical here, process I might get don't emissions. mean what think but... I you referencing be

Luke Sergott

No, it's fine.

Michael Petras

yes. Yes,

an So by way, the engineer. I'm not

process up throwing there's just But emissions, probably now. fusion is or emissions. so there's right his let -- Sterigenics or holding Sean say nose So me

depends on it So about. you're what talking

is probably referencing We're improvements achieving you're these the process we in. emissions stuff, the of in and is facilities, of what XX.X%. put in some the think I where goal Atlanta, some particularly

XX.XXX documented. [ is well been what X. We're or -- ], It's achieving think is, I X%

very within the -- become things, there's the feel that. I we rules new got that things about will going for though, think question industry good rules, embedded those one some is the to we've motoring a So that. of this like about things and The is be frequency the proposed the monitoring of challenge

about really ability required are in those to capture the we're technical But of not overall, matters. rules. our the concerned efficiency Some proposed

Operator

with And Windley will question David our next Jefferies. come from

David Windley

Michael, seasonality. back coming had kind price -- addition there the which to the ability first But inflation I a timing Nelson, Last a could. you between in the year, if in wanted of you come of was that I was to first talked labor in mismatch your put later in was to quarter that, kind impacting to through that year. and business

couple of then lower at margins and to margins in scale made a were those you overtime. also had acquisitions that expected And came

And year. an guess then year, to anomaly margins margins that this additional And last seem I are much those the lower. so to add

as guess hearing what if understanding that not expected? that's this you the was that I'm I remarks I I'm why the prepared largely guess, And So I'm you hearing not expected. in -- was case,

Michael Petras

Yes.

more I going X and in have say see would geography the one, visibility to of very is businesses. like business the all forward addressing, So volume the I of the the was to on David, Nordion our good we'd overall Obviously, total that. was question we

Labs, the the is first as or always the lowest, far lowest traditionally always. has quarter shouldn't As been I say Nelson

drop as leverage flexibility the labor in don't we've to in labor we and our got of strong because out. the the isn't It's that traditionally built been labor and fact there lowest. And have

rates or the volume last challenge productivity. price at where overall, on previous quarter to we at you that you're would margin to the to to they're tell the continue about side the the be you feel get when quarters and good also year offset for inflation. relative it going looking on I'd So look And

David Windley

Okay.

Okay. That's helpful.

of for stood that mentioned my the frequency the the one one. appreciate the monitoring us, I as On things you specificity EPA there. follow-up, out to

of you things making. into the in to jump have come months is us was a maybe that stood investments guess, out that start be been compliance one, interested I that would the you've the your timeframe, Sotera the One to XX -- something maybe in aggressive? could that that the reaction to pretty but in it XX-month because that started is of And/or comply is you've ahead timeframe, with game that you industry at couldn't?

Michael Petras

David. Yes. Very good question,

the recall the total comments, I public ventilation, particularly I could think in for meet amount on do important period in note think of XX-month XXX. us that that the that we timeline. situated ahead is of is of fact is industry construction won't aggressive and That mean the we're When closure be had doesn't pressure permanent one is time to and aggressive okay? of and everybody, previous If if equipment negative pretty and proposal others we including and our think way game, the timeline. and leadership a some things that position well but about to, think a that I that I the take took conversations, us, said very of you this our we we

be requirements an going for feel you accomplish to XXX is required industry, we're with work when keep supply entire across advancement to with we've The the to at the amount U.S. everything where very to of challenging that's good area. ductwork chains in be facilities the else, the really about and up just in that We for made many. have able that

to kind to are that of things David they're industry to I going actually accomplish. can have be sensitive think that referencing, Those I'm the what

there's feel already about be extensions top conclusion, this there in could think pretty we're But in sitting this. a in along comment we to of where on the are good that. far a document because year said we that I on up

Operator

Casey next question will Our with come Woodring from JPMorgan.

Casey Woodring

on EPA regulations. follow-up a proposed the Just

through you're to how just to in. range need the further outcomes proposal taking make capital those part the enhancements? comment would If of much talked that Can So about is, elaborate commit you goes you there? you period the necessary on as

Michael Petras

assessment way out don't working through the the a there be further assessing number but and of we're huge until Casey, we it's proposals want the modifications think of don't We're still our extent and get to it. number, capital. Yes. throw draft early at is. I is required proposal in and I from comments there's that, I across where to going us, think a not understand this also industry be be very the I is a the but in EPA only This would that to people going to think be of on -- going lot a stages suspicion.

Casey Woodring

Got it.

year. So been has generally than this better expected performance MedTech so far

that you if So any contracts recent guide upside from your or sort wondering from growth if Would outsized benefit see point? Sterigenics to more locked of there you customers? guys have the your any are or less in this at

Michael Petras

time, that in at confident in in X% across No, the we've the pretty guide this point company. whole given to our X% we're

see unit, We increased particular but do year around to as haven't the progresses. we guidance business specific given expect Sterigenics levels

Casey Woodring

are new current your expected the year? FX And prior year in to guide? the I Got those What beginning in. one on have And how if assumptions guide. in embedded think changed fit be it. the more I the just of currency could neutral was from the

So guidance currency like look now? what's your constant

Michael Biehl

same -- big of to on are And it. really terms much seen any originally the Biehl. in what is we in cause pause that assumptions to when us we there. as haven't really changes pretty the It's This guided we Michael

Operator

next question Mishan Matthew come And with our will KeyBanc. from

Matt Mishan

like prevent their and if from of do would you are through volumes think a upside little different go as Is to from of would you through they're the you customers being of in asking more so? a add assuming the I'll year there so the ask little as because maybe facilities I'm like I way. probably the those more numbers a that MedTech volumes, to customers, expectations. capacity system in a Anything some in -- that your especially able volume to some question going rest bit the coming of our kind meet

Michael Petras

we of chain us the that And translating When challenge. on it, been care. system or may back in the at that supply Matthew. We a health things in volumes. be pretty one-to-one No, within be that may be correlation volumes demand strength to by tracking inventory the end kind don't the see have we're look That could caused strong.

the facilities lot and to brick-and-mortar a in within we've on But our or to operational and get we just suddenly to spending chambers not or demand were I basis, things in doing of mirror that. in ability we've as the as it our if area And well. been to our continue the We've Mike try place, excellence one-to-one in to how to also around progress time feel drive about pretty may capacity react past to team start good a the that been do operations. more more to continue but efficiency whatever be, additional talked only

react I any So opportunities if able we'd to to think to came be they us.

Matt Mishan

what what your on the like just quarter? is? Okay. case California. Can And in continued upcoming were it with to like of that Ontario, to quantify, bit you a extent, one drag if of Sterigenics negotiations for like in percentage the plants And would this you're be then some longer, like worst looks little for facility having EO that

Michael Petras

is even them. and timeline the ongoing And place facilities. -- that both enhancements Yes. emissions And facility what a figure they've that's an try asked Matt, with we to what agreement with to U.S. us see. have reduce all asked them to of you L.A. our interim out They really in put we across have capture And coming clarify, that to an interim we're how we Ontario to levels us in period in have to period. -- just they've them. don't the with negotiation

you new blip occasionally, the So a in. lower now. something what see going might level right have exceeds that are you or That's until improvements completely

tell But us. largest not you, to I on Sterigenics it's we by most us, Listen, doesn't facilities running plus in to small just to it's here hope around stretch, higher relatively is up isn't that doesn't it's world. not mix our shortly. customers. customers, important not that important this for our is would XX get and important more that of I portion this but end have important have that, our mixed than mean plant, is facility business. I won't the a for our profitable particulars the plant the It products. mean okay? This But mean into and we any our of

Operator

conference And over this the to question-and-answer concludes any remarks. like turn back our would to closing Petras I Michael for session.

Michael Petras

you, Joe. this for you, Great. morning. Thank participating Thank everybody,

But overall, which big quarter a a driver as here the little pretty Nordion loaded As can we -- year. of back-end we thought, the and you well came much which softer the the areas. what see, volumes, see Nordion was throughout in couple in expected that

We where wish good support, good day. for is the Bye-bye. really situated. company So a everybody and feel we Thank overall, you. about thank ongoing your you

Operator

The conference has now for presentation. concluded. Thank attending you today's

now may You disconnect lines. your

Sotera Health (SHC) 3 May 232023 Q1 Earnings call transcript