STERIS Corporation Announces Fiscal 2013 Second Quarter Results

  STERIS Corporation Announces Fiscal 2013 Second Quarter Results

Business Wire

MENTOR, Ohio -- October 31, 2012

STERIS Corporation (NYSE: STE) today announced financial results for its
fiscal 2013 second quarter ended September 30, 2012. Included in the financial
results is a $21.5 million pre-tax adjustment, based on actual experience
through the second quarter, of the SYSTEM 1 Rebate Program liability. As
reported, fiscal 2013 second quarter revenue was $356.3 million compared with
$342.7 million in the second quarter of fiscal 2012. Operating income for the
second quarter was $62.3 million compared with $47.6 million in the second
quarter of fiscal 2012. Net income was $40.1 million, or $0.68 per diluted
share, compared with net income of $29.6 million, or $0.50 per diluted share
in the second quarter of fiscal 2012.

Of the $21.5 million pre-tax adjustment, $20.4 million is attributable to the
Customer Rebate portion of the Program and was recorded as an increase to
revenue, and $1.1 million is attributable to the disposal costs of SYSTEM 1
units to be returned and was recorded as a reduction to cost of revenue.
Adjusted revenue excludes the $20.4 million Rebate Program adjustment.
Adjusted net income and adjusted diluted earnings per share exclude the impact
of the SYSTEM 1 Rebate Program, amortization of purchased intangible assets,
acquisition related transaction and integration costs, and certain other items
identified in the attached table to provide comparative analysis.

Adjusted revenue for the second quarter of fiscal 2013 was $335.9 million, a
decline of 2% compared to the second quarter of fiscal 2012. Adjusted net
income for the second quarter of fiscal 2013 was $31.0 million, or $0.53 per
diluted share, the same as adjusted net income for the second quarter of
fiscal 2012.

“We are pleased with the performance of our business for the first half of the
fiscal year,” said Walt Rosebrough, President and Chief Executive Officer of
STERIS. “During the second quarter, we experienced softening in our
international revenue which was offset by demand in the U.S. Excluding the
impact from SYSTEM 1E, we had solid organic revenue growth in our Healthcare
segment in the U.S., with strength in several new product areas. Our
integration of the U.S. Endoscopy acquisition is on schedule and is performing
in-line with our expectations.”

Segment Results

As reported, Healthcare revenue in the quarter was $256.8 million compared
with $243.2 million in the same period last year. Adjusted revenue was $236.4
million in the second quarter of fiscal 2013, down 3% from the prior year.
Contributing to the quarter, consumable revenue grew 12% and service revenue
grew 2%, while capital equipment revenue declined 11%, primarily due to
comparison with the ramp-up of SYSTEM 1E during the prior year. The
performance of the Healthcare consumable franchise reflected a combination of
good performance from U.S. Endoscopy, which closed on August 15, 2012, and
other consumables offset by continued declines in S20 sterilant. Regarding
capital equipment, excluding SYSTEM 1E unit sales, capital equipment revenue
grew 2%, with good performance in the U.S. offset by weakness internationally.
As reported, segment operating income was $42.1 million compared with $28.0
million in last year’s second quarter. Adjusted segment operating income was
$26.7 million in the second quarter of fiscal 2013 compared with $29.8 million
in the same period last year. The decline in adjusted segment operating income
year-over-year was the result of lower revenue attainment due to the impact of
the phase out of S20 sterilant and the expected post-transition decline in
SYSTEM 1E unit sales.

Life Sciences second quarter revenue declined 7% to $54.6 million compared
with $58.9 million in the second quarter of fiscal 2012. Consumable revenue
grew 5% and service revenue increased 1% while capital equipment revenue
declined 24%. The Company believes that the decline in capital equipment
revenue is due to timing, as shipments within the segment tend to vary from
quarter to quarter. Life Sciences operating income was $10.5 million, or 19.3%
of revenue, compared with $11.1 million, or 18.8% of revenue, in the same
period last year. The improvement in operating margin is primarily
attributable to the mix shift in the business toward recurring revenue.

Fiscal 2013 second quarter revenue for Isomedix Services was $44.3 million
compared with $40.0 million in the same period last year, an increase of 11%.
Revenue benefitted from increased volumes from core medical device Customers
as well as the acquisition of Biotest in March 2012. Operating income was
$12.7 million in the quarter compared with $11.2 million in the second quarter
of last year.

Cash Flow

Net cash provided by operations for the six months of fiscal 2013 was $112.0
million, compared with $60.5 million last year. Free cash flow (see note 1)
for the first half of fiscal 2013 was $67.0 million, compared with $26.1
million in the prior year. The improvement in free cash flow is primarily due
to improvements in working capital management, specifically the anticipated
reduction of over $20 million in SYSTEM 1E related inventory and lower days
sales outstanding.

Dividend Announcement

The Company also announced today that STERIS’s Board of Directors has
authorized a quarterly dividend of $0.19 per common share. The dividend is
payable December 19, 2012 to shareholders of record at the close of business
on November 21, 2012.

Outlook

As a result of recent acquisitions as well as the Rebate Program reversal in
the quarter, the Company will only be providing adjusted guidance going
forward. Adjusted revenue and adjusted earnings per diluted share exclude the
impact of the SYSTEM 1 Rebate Program, amortization of purchased intangible
assets, acquisition related transaction and integration costs, and certain
other items to provide comparative analysis.

The Company’s expectations for both adjusted revenue and adjusted earnings per
diluted share remain unchanged for fiscal 2013: total Company adjusted revenue
growth for fiscal 2013 in the range of 3-4% and adjusted earnings per diluted
share in the range of $2.15 to $2.35.

The Company’s outlook for fiscal 2013 reflects certain key assumptions, some
of which are listed below:

  *The Company has assumed the average forward exchange rates for the U.S.
    dollar and key international currencies as of September 28, 2012.
  *The Company has assumed a modest increase in raw material costs.
  *Excludes restructuring expenses from the Company’s ongoing efficiency
    efforts.
  *Excludes the impact of the Medical Device Excise Tax; potential diluted
    earnings per share impact could be in the range of $0.02 to $0.04.
  *EBIT as a percent of revenue is anticipated to be approximately 15% on an
    adjusted basis.
  *The effective tax rate is anticipated to be approximately 35%.

For the full fiscal year 2013, free cash flow (see note 1) is anticipated to
be approximately $130 million excluding the SYSTEM 1 Rebate Program and class
action settlement, or $100 million including those items. Capital expenditures
are anticipated to be approximately $95 million, as the Company is investing
in several major projects within its facilities that are designed to improve
quality, reduce cost and add value to our current product offering.

Conference Call

In conjunction with this release, STERIS Corporation management will host a
conference call today at 10:00 a.m. Eastern time. The conference call can be
heard live over the Internet at www.steris-ir.com or via phone by dialing 1-
800-369-8428 in the United States and Canada, and 1-773-799-3378
internationally, then referencing the password “STERIS”.

For those unable to listen to the conference call live, a replay will be
available beginning at 12:00 p.m. Eastern time on October 31, 2012, either
over the Internet at www.steris-ir.com or via phone by calling 1- 866-501-0069
in the United States and Canada, or 1- 203-369-1813 internationally.

About STERIS

The mission of STERIS Corporation is to provide a healthier today and safer
tomorrow through knowledgeable people and innovative infection prevention,
decontamination and health science technologies, products and services. The
Company has approximately 6,000 dedicated employees around the world working
together to supply a broad array of solutions by offering a combination of
equipment, consumables and services to healthcare, pharmaceutical, industrial
and government Customers. The Company is listed on the New York Stock Exchange
under the symbol STE. For more information, visit www.steris.com.

(1) Free cash flow is a non-GAAP number used by the Company as a measure to
gauge its ability to fund future principal debt repayments, growth outside of
core operations, repurchase common shares, and pay cash dividends. STERIS
defines free cash flow as net cash flows from operating activities less
purchases of property, plant, equipment and intangibles plus proceeds from the
sale of property, plant, equipment and intangibles. STERIS’s calculation of
free cash flow may vary from other companies. Please see the attached
financial tables for a complete reconciliation of these non-GAAP numbers to
the nearest GAAP information.

This press release and the referenced conference call may contain statements
concerning certain trends, expectations, forecasts, estimates, or other
forward-looking information affecting or relating to the Company or its
industry, products or activities that are intended to qualify for the
protections afforded "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995 and other laws and regulations. Forward-looking
statements speak only as to the date of this press release, and may be
identified by the use of forward-looking terms such as "may," "will,"
"expects," "believes," "anticipates," "plans," "estimates," "projects,"
"targets," "forecasts," "outlook," "impact," "potential," "confidence,"
"improve," "optimistic," "deliver," "comfortable," "trend", and "seeks," or
the negative of such terms or other variations on such terms or comparable
terminology. Many important factors could cause actual results to differ
materially from those in the forward-looking statements including, without
limitation, disruption of production or supplies, changes in market
conditions, political events, pending or future claims or litigation,
competitive factors, technology advances, actions of regulatory agencies, and
changes in laws, government regulations, labeling or product approvals or the
application or interpretation thereof. Other risk factors are described herein
and in the Company's Form 10-K and other securities filings. Many of these
important factors are outside STERIS's control. No assurances can be provided
as to any result or the timing of any outcome regarding matters described in
this press release, the referenced conference call or otherwise with respect
to any regulatory action, administrative proceedings, government
investigations, litigation, warning letters, consent decree, rebate program,
transition, cost reductions, business strategies, earnings or revenue trends
or future financial results (including without limitation the settlement of
the SYSTEM 1 class action litigation and the regulatory matters related to
SYSTEM 1E or its accessories). References to products, the consent decree, the
transition or rebate program, or the class action settlement, are summaries
only and should not be considered the specific terms of the decree,
settlement, program or product clearance or literature. Unless legally
required, the Company does not undertake to update or revise any
forward-looking statements even if events make clear that any projected
results, express or implied, will not be realized. Other potential risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements include, without limitation, (a)the
potential for increased pressure on pricing or costs that leads to erosion of
profit margins, (b)the possibility that market demand will not develop for
new technologies, products or applications or the Company's rebate program,
transition plan or other business initiatives will take longer, cost more or
produce lower benefits than anticipated, (c)the possibility that application
of or compliance with laws, court rulings, certifications, regulations,
regulatory actions, including without limitation those relating to FDA warning
notices or letters, government investigations, the April20, 2010 consent
decree and related transition plan and rebate program, the SYSTEM 1E device,
the outcome of any pending FDA requests, inspections or submissions, or other
requirements or standards may delay, limit or prevent new product
introductions, affect the production and marketing of existing products or
services or otherwise affect Company performance, results, prospects or value,
(d)the potential of international unrest, economic downturn or effects of
currencies, tax assessments, adjustments, or anticipated rates, raw material
costs or availability, benefit or retirement plan costs, or other regulatory
compliance costs, (e)the possibility of reduced demand, or reductions in the
rate of growth in demand, for the Company's products and services, (f)the
possibility that anticipated growth, cost savings, rebate assumptions, new
product acceptance, performance or approvals, including without limitation
SYSTEM 1E and accessories thereto, or other results may not be achieved, or
that transition, labor, competition, timing, execution, regulatory,
governmental, or other issues or risks associated with our business, industry
or initiatives including, without limitation, the consent decree, rebate
program, and the transition from the SYSTEM 1 processing system and
adjustments to related reserves, or those matters described in our Form 10-K
for the year ended March31, 2012 and other securities filings, may adversely
impact company performance, results, prospects or value, (g)the possibility
that anticipated financial results or benefits of recent acquisitions will not
be realized or will be other than anticipated, (h) the effect of the
contraction in credit availability, as well as the ability of our Customers
and suppliers to adequately access the credit markets when needed, and
(i)those risks described in our securities filings including our Annual
Report on Form 10-K for the year ended March31, 2012, and other securities
filings.

                                                              
STERIS Corporation
Consolidated Condensed Statements of Operations
(In thousands, except per share data)
                                                                   
                       Three Months Ended            Six Months Ended
                       September 30,                September 30,
                       2012           2011         2012         2011
                       (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)
Revenues               $  335,921      $ 342,707     $  672,881    $  661,346
SYSTEM 1 Rebate          20,400       -            20,400      -
Program
Revenues, net             356,321        342,707        693,281       661,346
Cost of revenues          204,300        209,398        404,008       395,112
Cost of revenues -
SYSTEM 1 Rebate          (1,100)      -            (1,100)     -
Program
Gross profit              153,121        133,309        290,373       266,234
                                                                   
Operating expenses:
Selling, general,         81,040         76,652         160,814       153,661
and administrative
Research and              9,852          8,915          19,164        17,672
development
Restructuring            (48)         99           (184)       357
expense
Total operating          90,844       85,666       179,794     171,690
expenses
                                                                   
Income from               62,277         47,643         110,579       94,544
operations
Non-operating             3,375          2,399          6,088         5,503
expense, net
Income tax expense       18,757       15,680       33,992      30,746
Net income             $  40,145      $ 29,564     $  70,499    $  58,295
                                                                   
Earnings per common
share (EPS) data:
Basic                  $  0.69        $ 0.50       $  1.21      $  0.99
Diluted                $  0.68        $ 0.50       $  1.20      $  0.98
                                                                   
Cash dividends
declared per common    $  0.19         $ 0.17        $  0.36       $  0.32
share outstanding
                                                                   
Weighted average
number of common
shares outstanding
used in EPS
computation:
Basic number of
common shares             58,264         58,744         58,088        59,000
outstanding
Diluted number of
common shares             58,792         59,380         58,552        59,741
outstanding
                                                                   
                                                                   
STERIS Corporation
Consolidated Condensed Balance Sheets
(In thousands)
                       September 30,   March 31,
                       2012           2012
Assets                 (Unaudited)
Current assets:
Cash and cash          $  156,609      $ 150,821
equivalents
Accounts receivable,      231,034        280,324
net
Inventories, net          160,537        157,712
Other current assets     57,506       63,026
Total Current Assets      605,686        651,883
                                                                   
Property, plant, and      413,763        386,409
equipment, net
Goodwill and
intangible assets,        584,328        337,784
net
Other assets             28,955       29,620
Total Assets           $  1,632,732   $ 1,405,696
                                                                   
Liabilities and
Equity
Current liabilities:
Accounts payable       $  70,575       $ 83,188
Accrued SYSTEM 1
Rebate Program and        26,446         69,065
class action
settlement
Other current            134,687      126,142
liabilities
Total Current             231,708        278,395
Liabilities
                                                                   
Long-term debt            434,340        210,000
Other liabilities         85,058         94,637
Equity                   881,626      822,664
Total Liabilities      $  1,632,732   $ 1,405,696
and Equity
                                                                   

                                                              
STERIS Corporation
Segment Data
(In thousands)
                         Three Months Ended          Six Months Ended
                         September 30,               September 30,
                         2012         2011          2012         2011
                         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Segment Revenues:
Healthcare               $  236,420    $  243,176    $  465,934    $  466,400
SYSTEM 1 Rebate            20,400      -            20,400      -
Program
Healthcare, net             256,820       243,176       486,334       466,400
Life Sciences               54,577        58,915        115,073       111,783
STERIS Isomedix            44,284      39,999       90,340      82,002
Services
Total Reportable            355,680       342,090       691,746       660,185
Segments
Corporate and Other        640         617          1,534       1,161
Total Segment Revenues   $  356,321   $  342,707    $  693,281   $  661,346
                                                                   
                                                                   
                                                                   
                         Three Months Ended          Six Months Ended
                         September 30,               September 30,
                         2012         2011          2012         2011
                         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Segment Operating
Income:
Healthcare               $  42,147     $  27,994     $  64,877     $  54,262
Life Sciences               10,549        11,064        22,403        20,523
STERIS Isomedix            12,667      11,215       28,245      24,174
Services
Total Reportable            65,363        50,273        115,525       98,959
Segments
Corporate and Other        (3,086)     (2,630)      (4,946)     (4,415)
Total Operating Income   $  62,277    $  47,643     $  110,579   $  94,544
                                                                   

                                                                
STERIS Corporation
Consolidated Condensed Statements of Cash Flows
(In thousands)
                                                     Six Months Ended
                                                     September 30,
                                                     2012         2011
                                                     (Unaudited)   (Unaudited)
Operating Activities:
Net income                                           $ 70,499      $  58,295
Non-cash items                                         44,395         50,428
Change in Accrued SYSTEM 1 Rebate Program and          (42,619)       (15,921)
class action settlement
Changes in operating assets and liabilities           39,748       (32,265)
Net cash provided by operating activities              112,023        60,537
                                                                   
Investing Activities:
Purchases of property, plant, equipment, and           (45,062)       (34,445)
intangibles, net
Proceeds from sale of property, plant, equipment       22             -
and intangibles
Investments in businesses, net of cash acquired       (276,595)    (22,269)
Net cash used in investing activities                  (321,635)      (56,714)
                                                                   
Financing Activities:
Proceeds under credit facilities, net                  224,340        -
Repurchases of common shares                           (2,688)        (43,679)
Cash dividends paid to common shareholders             (20,946)       (18,928)
Stock option and other equity transactions, net        11,709         3,172
Tax benefit from stock options exercised              1,772        745
Net cash used in financing activities                  214,187        (58,690)
Effect of exchange rate changes on cash and cash      1,213        (4,038)
equivalents
Decrease in cash and cash equivalents                  5,788          (58,905)
Cash and cash equivalents at beginning of period      150,821      193,016
Cash and cash equivalents at end of period           $ 156,609    $  134,111
                                                               
The following table presents a financial measure which is considered to be
"non-GAAP financial
measures" under Securities Exchange Commission rules. Free cash flow is
defined by the Company
as cash flows from operating activities less purchases of property, plant,
equipment and
intangibles, net (capital expenditures) plus proceeds from the sale of
property, plant,
equipment and intangibles. The Company uses free cash flow as a measure to
gauge its ability to
fund future principal debt repayments, growth outside of core operations,
repurchase common
shares, and pay cash dividends. STERIS's calculation of free cash flow may
vary from other companies.
                                                                   
                                                     Six Months Ended
                                                     September 30,
                                                     2012         2011
Calculation of Free Cash Flow:                       (Unaudited)   (Unaudited)
Cash flows from operating activities                 $ 112,023     $  60,537
Purchases of property, plant, equipment, and           (45,062)       (34,445)
intangibles, net
Proceeds from the sale of property, plant,            22           -
equipment, and intangibles
Free Cash Flow                                       $ 66,983     $  26,092
                                                                   
                                                     Twelve Months Ended
                                                     March 31,
Calculation of free cash flow for outlook:           2013         2013 (1)
                                                     (Outlook)     (Outlook)
Cash flows from operating activities                 $ 195,000     $  195,000
Purchases of property, plant, equipment, and           (95,000)       (95,000)
intangibles, net
Payments associated with the SYSTEM 1 Rebate
Program and class action settlement, net of tax       -            30,000
benefit
Free Cash Flow                                       $ 100,000    $  130,000
                                                                   
(1) Adjusted to exclude the impact of the payments associated with the SYSTEM
1 Rebate Program and
class action settlement.
                                                                   

                                                              
STERIS Corporation
Non-GAAP Earnings Per Share and Outlook
                                                                   
                                                           
The Company has referred to an adjusted financial measure regarding the
results of operations
excluding certain items to provide meaningful comparative analysis between the
periods. This financial
measure is considered to be a "non-GAAP financial measure" under Securities
Exchange Commission rules.
Reconciliation of the financial measure to its nearest GAAP financial measure
is provided in the table
below.
                                                                   
                         Three months ended          Six months ended
                         September 30,               September 30,
                         2012         2011         2012         2011
                         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Net Income per diluted   $  0.68       $   0.50      $   1.20      $    0.98
share
Impact of SYSTEM 1
Rebate Program and          (0.22)         -             (0.22)         -
class action
settlement, net of tax
Inventory "step up" to      0.01           0.01          0.01           0.01
fair value, net of tax
Amortization and
impairment of               0.02           0.02          0.03           0.03
purchased intangible
assets, net of tax
Acquisition related
transaction and            0.04         -           0.04         -
integration expenses,
net of tax
Adjusted net income      $  0.53      $   0.53     $   1.06     $    1.02
per diluted share
                                                                   
                                                                   
                         Twelve months ended
                         March 31
                         2013         2012
                         (Outlook)*    (Unaudited)
Net Income per diluted   $  2.22 -     $   2.31
share                       $2.42
Impact of SYSTEM 1
Rebate Program and          (0.22)         (0.18)
class action
settlement, net of tax
S1E inventory reserve,      -              0.03
net of tax
Inventory "step up" to      0.01           0.01
fair value, net of tax
Amortization and
impairment of               0.09           0.08
purchased intangible
assets, net of tax
Gain from fair value
adjustment of
acquisition related         -              (0.03)
contingent
consideration, net of
tax
Acquisition related
transaction and            0.05         -
integration expenses,
net of tax
Adjusted net income      $  2.15 -    $   2.22
per diluted share           $2.35
                                                                   
* All amounts are estimates.
                                                                   

                                                              
STERIS Corporation
Non-GAAP Financial
Measures
(In thousands, except
per share data)
                                                           
The Company has referred to certain adjusted financial measures regarding the
results of operations excluding
certain items to provide meaningful comparative analysis between the periods.
These financial measures are
considered to be "non-GAAP financial measure" under Securities Exchange
Commission rules. Reconciliation of
each financial measure to its nearest GAAP financial measure is provided in
the table below.
                                                                   
                         Three months ended          Six months ended
                         September 30,               September 30,
                         2012         2011          2012         2011
                         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                                                                   
Revenues                 $  356,321    $  342,707    $  693,281    $  661,346
Impact of SYSTEM 1         (20,400)    -            (20,400)    -
Rebate Program
Adjusted revenues        $  335,921   $  342,707    $  672,881   $  661,346
                                                                   
Gross Profit                153,121       133,309       290,373       266,234
Impact of SYSTEM 1          (21,500)      -             (21,500)      -
Rebate Program
Amortization of
inventory "step up" to      747           667           846           572
fair value
Restructuring              -           (33)         -           (71)
Adjusted gross profit      132,368     133,943      269,719     266,735
                                                                   
Operating income         $  62,277     $  47,643     $  110,579    $  94,544
Impact of SYSTEM 1          (21,500)      -             (21,500)      -
Rebate Program
Amortization of
inventory "step up" to      747           667           846           572
fair value
Amortization and
impairment of               2,256         1,437         3,281         2,894
purchased intangible
assets
Acquisition related
transaction and             3,448         -             3,555         -
integration costs
Restructuring              (48)        66           (184)       287
Adjusted operating       $  47,180    $  49,813     $  96,577    $  98,297
income
                                                                   
Net income               $  40,145     $  29,564     $  70,499     $  58,295
Impact of SYSTEM 1
Rebate Program, net of      (13,115)      -             (13,115)      -
tax
Amortization of
inventory "step up" to      456           427           516           366
fair value, net of tax
Amortization and
impairment of               1,376         920           2,001         1,852
purchased intangible
assets, net of tax
Acquisition related
transaction and             2,103         -             2,169         -
integration costs
Restructuring, net of      (30)        42           (112)       184
tax
Adjusted net income      $  30,935    $  30,953     $  61,958    $  60,697
                                                                   
Healthcare revenues      $  256,820    $  243,176    $  486,334    $  466,400
Impact of SYSTEM 1         (20,400)    -            (20,400)    -
Rebate Program
Adjusted Healthcare      $  236,420   $  243,176    $  465,934   $  466,400
revenues
                                                                   
Healthcare capital       $  132,936    $  127,077    $  247,369    $  233,969
revenues
Impact of SYSTEM 1         (20,400)    -            (20,400)    -
Rebate Program
Adjusted Healthcare      $  112,536   $  127,077    $  226,969   $  233,969
capital revenues
                                                                   
Healthcare operating     $  42,147     $  27,994     $  64,877     $  54,262
income
Impact of SYSTEM 1          (21,500)      -             (21,500)      -
Rebate Program
Amortization of
inventory "step up" to      747           667           846           572
fair value
Amortization and
impairment of               1,859         1,038         2,484         2,102
purchased intangible
assets
Acquisition related
transaction and             3,448         -             3,555         -
integration costs
Restructuring              (48)        66           (184)       287
Adjusted healthcare      $  26,653    $  29,765     $  50,078    $  57,223
operating income
                                                                   
STERIS Isomedix
Services operating       $  12,667     $  11,215     $  28,245     $  24,174
income
Amortization and
impairment of              345         298          690         594
purchased intangible
assets
Adjusted STERIS
Isomedix Services        $  13,012    $  11,513     $  28,935    $  24,768
operating income
                                                                   
Capital revenues         $  149,676    $  149,225    $  288,094    $  273,844
Impact of SYSTEM 1         (20,400)    -            (20,400)    -
Rebate Program
Adjusted capital         $  129,276   $  149,225    $  267,694   $  273,844
revenues
                                                                   
United States revenues   $  271,788    $  257,635    $  534,192    $  502,471
Impact of SYSTEM 1         (20,400)    -            (20,400)    -
Rebate Program
Adjusted United States   $  251,388   $  257,635    $  513,792   $  502,471
revenues
                                                                      

                                                                
STERIS Corporation
Unaudited Supplemental Financial Data
Second Quarter Fiscal 2013
As of September 30, 2012
                                                              
                              FY 2013    FY 2012    FY 2013    FY 2012
Total Company Revenues          Q2         Q2         YTD        YTD
  Capital                        $ 149,676  $ 149,225  $ 288,094  $ 273,844
  Adjusted capital revenues      129,276     149,225     267,694     $ 273,844
  (1)
  Consumables                    81,974      74,277      157,309     151,671
  Service                        124,671    119,205    247,878    235,831
  Total Recurring                206,645    193,482    405,187    387,502
  Total Revenues                 $ 356,321  $ 342,707  $ 693,281  $ 661,346
  Adjusted total revenues (1)    $ 335,921  $ 342,707  $ 672,881  $ 661,346
  United States Revenues         $ 271,788   $ 257,635   $ 534,192   $ 502,471
  Adjusted United States         251,388     257,635     513,792     502,471
  Revenues (1)
  United States Revenues as a    75%         75%         76%         76%
  % of Total
  International Revenues         $ 84,532    $ 85,072    $ 159,088   $ 158,875
  International Revenues as a    25%        25%        24%        24%
  % of Total
                                                            
Segment Data                    Q2         Q2         YTD        YTD
Healthcare
  Revenues
  Capital                        $ 132,936   $ 127,077   $ 247,369   $ 233,969
  Adjusted Capital (1)           $ 112,536   $ 127,077   $ 226,969   $ 233,969
  Consumables                    63,422      56,684      119,754     115,789
  Service                        60,462     59,415     119,211    116,642
  Total Recurring                123,884    116,099    238,965    232,431
  Total Healthcare Revenues      $ 256,820  $ 243,176  $ 486,334  $ 466,400
  Adjusted Total Healthcare      $ 236,420   $ 243,176   $ 465,934   $ 466,400
  Revenues (1)
  Operating Income               42,147     27,994     64,877     54,262
  Adjusted Operating             26,653      29,765      50,078      57,223
  Income/(Loss) (1)
                                                                     
Life Sciences
  Revenues
  Capital                        $ 16,740    $ 22,148    $ 40,725    $ 39,793
  Consumables                    18,552      17,593      37,555      35,882
  Service                        19,285     19,174     36,793     36,108
  Total Recurring                37,837     36,767     74,348     71,990
  Total Life Sciences Revenues   $ 54,577   $ 58,915   $ 115,073  $ 111,783
  Operating Income               10,549     11,064     22,403     20,523
                                                                     
Isomedix Services
  Revenues                       $ 44,284    $ 39,999    $ 90,340    $ 82,002
  Operating Income               12,667     11,215     28,245     24,174
                                                                     
Corporate and Other
  Revenues                       $ 640       $ 617       $ 1,534     $ 1,161
  Operating Income (Loss)        (3,086)    (2,630)    (4,946)    (4,415)
                                                            
Other Data                      Q2         Q2         YTD        YTD
  Healthcare Backlog             $ 119,249   $ 148,197   $ 119,249   $ 148,197
  Life Sciences Backlog          50,573     41,193     50,573     41,193
  Total Backlog                  $ 169,822   $ 189,390   $ 169,822   $ 189,390
                                                                     
  Free Cash Flow                 $ 21,241    $ 29,699    $ 66,983    $ 26,092
  Net Debt                       $ 277,731  $ 75,889   $ 277,731  $ 75,889
                                                                     

(1) The Company has referred to certain adjusted financial measures regarding
the results of operations excluding certain items to provide meaningful
comparative analysis between the periods. These financial measures are
considered to be "non-GAAP financial measure" under Securities Exchange
Commission rules. Reconciliation of each financial measure to its nearest GAAP
financial measure is provided in the table below.

This supplemental data is consistent with publicly disclosed information
provided in quarterly conference calls, earnings releases and SEC filings, and
is subject to all definitions, precautions and limitations contained in those
disclosures. Please see the Company's most recent 10-K for definitions (and
reconciliation where appropriate) of adjusted measures, backlog, free cash
flow and net debt.

Contact:

STERIS Corporation
Julie Winter, Director, Investor Relations, 440-392-7245
 
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