UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 8, 2011

 

 

STERIS Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Ohio		1-14643		34-1482024
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

5960 Heisley Road, Mentor, Ohio				44060-1834
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code (440) 354-2600

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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ITEM 2.02. Results of Operations and Financial Condition.

On February 8, 2011, STERIS issued a press release announcing financial results for its fiscal 2011 third quarter ended December 31, 2010. A copy of this press release is attached hereto as Exhibit 99.1.

The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. Furthermore, the information contained in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933.

ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.		Description
99.1		Press Release issued by STERIS Corporation on February 8, 2011 regarding its results of operations and financial condition for its fiscal 2011 third quarter ended December 31, 2010.

 

2

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: February 8, 2011

 

3

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EXHIBIT INDEX

 

Exhibit Number		Exhibit Description
99.1		Press Release issued by STERIS Corporation on February 8, 2011 regarding its results of operations and financial condition for its fiscal 2011 third quarter ended December 31, 2010.

 

4

Exhibit 99.1

STERIS CORPORATION

NEWS ANNOUNCEMENT

FOR IMMEDIATE RELEASE

STERIS CORPORATION ANNOUNCES FISCAL 2011 THIRD QUARTER RESULTS

Mentor, Ohio (February 8, 2011) - STERIS Corporation (NYSE: STE) today announced financial results for its fiscal 2011 third quarter ended December 31, 2010. Fiscal 2011 third quarter revenue was $328.3 million compared with $327.8 million in the third quarter of fiscal 2010, with growth in the Healthcare and Isomedix segments offset by a decline in the Life Sciences segment.

During the third quarter of fiscal 2011 the Company recorded a pre-tax operating expense charge of $19.8 million ($13.1 million or $0.22 per diluted share after tax) for the settlement of the previously reported SYSTEM 1^® class action litigation. This settlement is subject to, among other things, certification of the class and approval of the settlement by the court. In addition, fiscal 2011 third quarter net income was impacted favorably in the amount of $0.01 per diluted share due to a tax rate benefit from the previously announced SYSTEM 1 Rebate Program. In order to provide meaningful comparative analysis, the fiscal 2011 financial information provided in this press release excludes the impact of the SYSTEM 1 Rebate Program and the charge for the class action settlement, unless otherwise noted. Please refer to the attached schedules for additional information, including reconciliations from these “non-GAAP financial measures” to as reported results.

Fiscal 2011 third quarter operating income was $55.6 million compared with $59.4 million in the third quarter of fiscal 2010. Operating income for the third quarter of fiscal 2011 was negatively impacted by continued declines in SYSTEM 1 consumable (S20 Sterilant) volumes, as well as a higher portion of revenue coming from lower margin capital equipment products. Fiscal 2011 third quarter net income was $34.1 million, or $0.57 per diluted share, compared with net income of $41.0 million, or $0.69 per diluted share in the third quarter of fiscal 2010.

“During the third quarter, we began shipping our first SYSTEM 1E units. We are pleased to have received FDA clearance for the SYSTEM 1E chemical indicator, and we continue dialogue with the Agency regarding the clearance of a biological indicator for SYSTEM 1E,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “Although we can not give assurance whether or when

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STERIS Corporation

News Announcement

Page 2

 

the Agency may clear our indicator, we believe our dialogue with the Agency has been constructive. We believe that SYSTEM 1E remains the best SYSTEM 1 transition alternative for most of our Customers’ needs, and we anticipate shipping approximately 1,000 SYSTEM 1E units this fiscal year.”

Segment Results

Healthcare revenue in the quarter grew 2% to $237.8 million compared with $233.3 million in the third quarter of fiscal 2010. Growth was driven by an 11% increase in capital equipment, reflecting solid performance from both surgical and infection prevention products. The growth was partially offset by a 7% decline in consumable revenue and a 3% decline in service revenue. Consumable revenue continued to be impacted by reductions in S20 Sterilant volumes and lower H1N1 product sales as compared to the prior year. Operating income was $40.2 million compared with $45.3 million in last year’s third quarter, primarily due to the declines in S20 volumes and a higher portion of revenue coming from lower margin capital equipment.

Life Sciences third quarter revenue was $51.2 million compared with $58.9 million in the third quarter of fiscal 2010, a decrease of 13%. Growth in consumable revenue of 6% and service revenue of 2% were not enough to offset a 35% decline in capital equipment revenue. The decline in capital equipment revenue was due to low order rates in the first half of the fiscal year. Life Sciences operating income was $7.3 million compared with $10.1 million in the prior year third quarter.

Fiscal 2011 third quarter revenue for Isomedix Services was $38.1 million compared with $35.0 million in the same period last year, an increase of 9%. Revenue benefitted from increased volumes from core medical device Customers. Operating income was $10.3 million in the quarter compared with $6.9 million in the third quarter of last year. As a reminder, fiscal 2010 third quarter operating income was negatively impacted by expenses of $1.7 million related to the Company’s decision to consolidate a facility and exit the E-beam materials modification business.

Cash Flow

Net cash provided by operations for the first nine months of fiscal 2011 was $83.4 million, compared with $158.7 million in the same period last year. Free cash flow (see note 1) for the first nine months of fiscal 2011 was $28.3 million, compared with $129.4 million in the prior year period. The

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STERIS Corporation

News Announcement

Page 3

 

decline in free cash flow was driven by increased working capital requirements, primarily due to inventory build of SYSTEM 1E, which totaled $37 million at the end of the quarter, and lower accounts receivable collections. In addition, capital spending increased significantly during the quarter, driven in part by the timing of cobalt purchases for Isomedix, which totaled $9.7 million, and an additional $8.4 million spent by Isomedix to purchase two previously leased facilities.

During the quarter, the Company repurchased 96,259 shares of its common stock at an average price of $34.25 per share for a total amount of $3.3 million. Approximately $184 million remains available for additional purchases under the current share repurchase authorization.

Dividend Announcement

The Company also announced today that STERIS’s Board of Directors has authorized a quarterly dividend of $0.15 per common share. The dividend is payable March 29, 2011 to shareholders of record at the close of business on March 1, 2011.

Outlook

As a result of lower shipment levels for SYSTEM 1E during fiscal 2011, the Company is reducing its outlook for revenue growth for fiscal 2011. Revenue for fiscal 2011 is currently anticipated to increase 2% compared with fiscal 2010 levels, compared with 5% growth expectations previously. The Company is maintaining its prior earnings outlook of $2.15 to $2.30 per diluted share for the full fiscal year. This outlook reflects certain key assumptions, some of which are listed below:

 

•

Healthcare revenue growth is expected to be in the low-single digits.

 

•

Life Sciences revenue is expected to decline in the low-single digits.

 

•

Isomedix revenue growth is expected to be in the high-single digits.

 

•

Excludes the reduction of revenue, operating income and tax rate related to the previously announced SYSTEM 1 Rebate Program.

 

•

Excludes the impact of any settlement related to the SYSTEM 1 class action litigation.

 

•

The Company has assumed the average forward exchange rates for the U.S. dollar and key international currencies as of December 31, 2010.

 

•

The Company has assumed raw material costs will be approximately flat year over year.

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STERIS Corporation

News Announcement

Page 4

 

•

Excludes restructuring expenses from the Company’s ongoing efficiency efforts.

 

•

EBIT as a percent of revenue is anticipated to be approximately 16.5%.

 

•

The anticipated effective tax rate is approximately 36%.

For the full fiscal year 2011, free cash flow (see note 1) is currently anticipated to be in the range of $60 to $70 million, compared with prior expectations of $125 to $135 million. The decline in free cash flow expectations is due to increased working capital requirements, in particular SYSTEM 1E inventory. Capital expenditures are currently anticipated to be approximately $75 million.

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 February 8, 2011, either over the Internet at www.steris-ir.com or via phone by calling 1-800-871-1327 in the United States and Canada, and 1-203-369-3373 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 5,000 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.

Contact: Julie Winter, Director, Investor Relations at 440-392-7245.

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STERIS Corporation

News Announcement

Page 5

 

(1) Free cash flow is a non-GAAP number used by the Company as a measure to gauge its ability to fund future growth opportunities, repurchase common shares, and pay cash dividends. Free cash flow is defined as cash flows from operating activities less purchases of property, plant, equipment and intangibles, net, plus proceeds from the sale of property, plant, equipment and intangibles. STERIS’s calculation of free cash flow may vary from other companies.

# # #

This news 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 report, 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,” “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 the referenced release or 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 the outcome of the proposed settlement of the SYSTEM 1 class action litigation. References to products, the consent decree, or the transition or rebate program, or the settlement agreement, are summaries only and do not alter or modify the specific terms of the decree, agreement, 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 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 previously disclosed FDA warning letters, government investigations, the December 3, 2009 or February 22, 2010 FDA notices, the April 20, 2010 consent decree and related transition plan and rebate program, the SYSTEM 1E device, the Reliance EPS System, the outcome of any pending FDA requests and clearances, 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 or effects of fluctuations in currencies, tax assessments or anticipated rates, raw material costs, 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 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 or those matters described in our Form 10-K for the year ended March 31, 2010 and other securities filings, may adversely impact company performance, results, prospects or value, (g) 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 (h) those risks described in our securities filings including our Annual Report on Form 10-K for the year ended March 31, 2010 and the Form 10-Q for the quarter ended September 30, 2010 and other securities filings.

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STERIS Corporation

Consolidated Condensed Statements of Operations

(In thousands, except per share data)

 

		Three Months Ended December 31,								Nine Months Ended December 31,
		2010				2009				2010				2009
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Revenues		$	328,283			$	327,832			$	932,001			$	925,604
SYSTEM 1 Rebate Program			—				—				(102,313	)			—
Revenues, net			328,283				327,832				829,688				925,604
Cost of revenues			191,269				188,349				531,862				528,630
Cost of revenues - SYSTEM 1 Rebate Program			—				—				7,691				—
Gross profit			137,014				139,483				290,135				396,974
Operating expenses:
Selling, general, and administrative			73,671				71,776				217,787				220,897
SYSTEM 1 class action settlement			19,796				—				19,796				—
Research and development			7,739				8,265				24,391				24,035
Restructuring expense			(23	)			14				423				(313	)
Total operating expenses			101,183				80,055				262,397				244,619
Income from operations			35,831				59,428				27,738				152,355
Non-operating expense, net			2,728				2,756				8,381				8,473
Income tax expense			11,338				15,666				7,091				45,250
Net income		$	21,765			$	41,006			$	12,266			$	98,632
Earnings per common share (EPS) data:
Basic		$	0.37			$	0.70			$	0.21			$	1.68
Diluted		$	0.36			$	0.69			$	0.20			$	1.66
Cash dividends declared per common share outstanding		$	0.15			$	2.11			$	0.41			$	2.33
Weighted average number of common shares outstanding used in EPS computation:
Basic number of common shares outstanding			59,233				58,962				59,329				58,711
Diluted number of common shares outstanding			60,176				59,758				60,161				59,281

STERIS Corporation

Consolidated Condensed Balance Sheets

(In thousands)

 

		December 31, 2010				March 31, 2010
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	192,288			$	214,971
Accounts receivable, net			212,637				214,940
Inventories, net			167,258				121,135
Other current assets			69,527				25,411
Total Current Assets			641,710				576,457
Property, plant, and equipment, net			365,354				346,858
Goodwill and intangible assets, net			318,388				305,311
Other assets			26,939				9,776
Total Assets		$	1,352,391			$	1,238,402
Liabilities and Equity
Current liabilities:
Accounts payable		$	73,697			$	66,035
Accrued SYSTEM 1 Rebate Program and class action settlement			128,770				—
Other current liabilities			111,006				131,094
Total Current Liabilities			313,473				197,129
Long-term debt			210,000				210,000
Other liabilities			77,518				76,779
Equity			751,400				754,494
Total Liabilities and Equity		$	1,352,391			$	1,238,402

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STERIS Corporation

Income Reconciliation

(In thousands, except per share data)

The following table presents financial measures which are considered to be "non-GAAP financial measures" under Securities Exchange Commission rules. The Company has referred to results of operations excluding the SYSTEM 1 Rebate Program and related disposal costs as well as the SYSTEM 1 class action settlement to provide meaningful comparative analysis between the periods.

 

		Three months ended December 31, 2010												Nine months ended December 31, 2010
		Results of Operations, excluding Rebate Program and class action settlement				Impact of SYSTEM 1 Rebate Program and class action settlement				As reported				Results of Operations, excluding Rebate Program and class action settlement				Impact of SYSTEM 1 Rebate Program and class action settlement				As reported
						(Unaudited)												(Unaudited)
Revenues		$	328,283			$	—			$	328,283			$	932,001			$	(102,313	)		$	829,688
Cost of revenues			191,269				—				191,269				531,862				7,691				539,553
Gross profit			137,014				—				137,014				400,139				(110,004	)			290,135
Operating expenses			81,387				19,796				101,183				242,601				19,796				262,397
Income from operations			55,627				(19,796	)			35,831				157,538				(129,800	)			27,738
Non-operating expenses, net			2,728				—				2,728				8,381				—				8,381
Income before income taxes			52,899				(19,796	)			33,103				149,157				(129,800	)			19,357
Income tax expense			18,842				(7,504	)			11,338				54,255				(47,164	)			7,091
Net income		$	34,057			$	(12,292	)		$	21,765			$	94,902			$	(82,636	)		$	12,266
Net income per common share:
Basic		$	0.57			$	(0.20	)		$	0.37			$	1.60			$	(1.39	)		$	0.21
Diluted		$	0.57			$	(0.21	)		$	0.36			$	1.58			$	(1.38	)		$	0.20
Weighted average number of common shares outstanding used in EPS computation:
Basic			59,233								59,233				59,329								59,329
Diluted			60,176								60,176				60,161								60,161
Effective income tax rate			35.6	%							34.3	%			36.4	%							36.6	%

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STERIS Corporation

Segment Data & Income Analysis

(In thousands)

 

		Three Months Ended December 31,								Nine Months Ended December 31,
		2010				2009				2010				2009
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Segment Revenues:
Healthcare		$	237,843			$	233,277			$	664,036			$	656,887
SYSTEM 1 Rebate Program			—				—				(102,313	)			—
Healthcare, net			237,843				233,277				561,723				656,887
Life Sciences			51,247				58,910				151,374				159,427
STERIS Isomedix Services			38,081				34,987				113,721				105,129
Total Reportable Segments			327,171				327,174				826,818				921,443
Corporate and Other			1,112				658				2,870				4,161
Total Segment Revenues		$	328,283			$	327,832			$	829,688			$	925,604

The following table presents financial measures which are considered to be “non-GAAP financial measures” under Securities Exchange Commission rules. The Company has referred to results of operations excluding the SYSTEM 1 Rebate Program and related disposal costs as well as the SYSTEM 1 class action settlement to provide meaningful comparative analysis between the periods.

 

		Three Months Ended December 31,
		2010												2009
		(Unaudited)												(Unaudited)
Segment Operating Income (Loss) Excluding SYSTEM 1 Rebate program and class action settlement:		As Reported				Impact of SYSTEM 1 Rebate Program and class action settlement				Total				Total As Reported
Healthcare		$	20,389			$	(19,796	)		$	40,185			$	45,254
Life Sciences			7,345				—				7,345				10,123
STERIS Isomedix Services			10,250				—				10,250				6,929
Total Reportable Segments			37,984				(19,796	)			57,780				62,306
Corporate and Other			(2,153	)			—				(2,153	)			(2,878	)
Total Operating Income		$	35,831			$	(19,796	)		$	55,627			$	59,428
		Nine Months Ended December 31,
		2010												2009
		(Unaudited)												(Unaudited)
Segment Operating Income (Loss) Excluding SYSTEM 1 Rebate program and class action settlement:		As Reported				Impact of SYSTEM 1 Rebate Program and class action settlement				Total				Total As Reported
Healthcare		$	(19,460	)		$	(129,800	)		$	110,340			$	113,722
Life Sciences			23,075				—				23,075				23,442
STERIS Isomedix Services			30,858				—				30,858				22,669
Total Reportable Segments			34,473				(129,800	)			164,273				159,833
Corporate and Other			(6,735	)			—				(6,735	)			(7,478	)
Total Operating Income		$	27,738			$	(129,800	)		$	157,538			$	152,355

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STERIS Corporation

Consolidated Condensed Statements of Cash Flows

(In thousands)

 

		Nine Months Ended December 31,
		2010				2009
		(Unaudited)				(Unaudited)
Operating Activities:
Net income		$	12,266			$	98,632
Non-cash items			430				54,304
Change in Accrued SYSTEM 1 Rebate Program and class action settlement			128,770				—
Changes in operating assets and liabilities			(58,069	)			5,732
Net cash provided by operating activities			83,397				158,668
Investing Activities:
Purchases of property, plant, equipment, and intangibles, net			(56,390	)			(29,839	)
Proceeds from sale of property, plant, equipment and intangibles			1,298				574
Equity investment in joint venture			(16,900	)			(1,500	)
Investments in businesses, net of cash acquired			(4,000	)			—
Net cash used in investing activities			(75,992	)			(30,765	)
Financing Activities:
Proceeds under credit facilities, net			—				100,000
Repurchases of common shares			(19,900	)			(289	)
Cash dividends paid to common shareholders			(24,344	)			(137,509	)
Stock option and other equity transactions, net			10,813				12,339
Tax benefit from stock options exercised			2,197				1,927
Net cash used in financing activities			(31,234	)			(23,532	)
Effect of exchange rate changes on cash and cash equivalents			1,146				6,868
(Decrease) increase in cash and cash equivalents			(22,683	)			111,239
Cash and cash equivalents at beginning of period			214,971				154,180
Cash and cash equivalents at end of period		$	192,288			$	265,419

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 growth opportunities, repurchase common shares, and pay cash dividends. STERIS’s calculation of free cash flow may vary from other companies.

 

		Nine Months Ended December 31,
		2010				2009
		(Unaudited)				(Unaudited)
Calculation of Free Cash Flow:
Cash flows from operating activities		$	83,397			$	158,668
Purchases of property, plant, equipment, and intangibles, net			(56,390	)			(29,839	)
Proceeds from the sale of property, plant, equipment, and intangibles			1,298				574
Free Cash Flow		$	28,305			$	129,403

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STERIS Corporation

Unaudited Supplemental Financial Data - Excluding SYSTEM 1 Rebate Program and Class Action Settlement

Third Quarter Fiscal 2011

As of December 31, 2010

 

		FY 2011				FY 2011				FY 2010				FY 2010
		Q3				YTD				Q3				YTD
Total Company Revenues
Capital		$	135,121			$	358,681			$	132,541			$	344,390
Consumables			77,501				230,618				81,531				242,317
Service			115,661				342,702				113,760				338,897
Total Recurring			193,162				573,320				195,291				581,214
Total Revenues		$	328,283			$	932,001			$	327,832			$	925,604
United States Revenues		$	239,975			$	704,016			$	244,067			$	706,165
United States Revenues as a % of Total			73	%			76	%			74	%			76	%
International Revenues		$	88,308			$	227,985			$	83,765			$	219,439
International Revenues as % of Total			27	%			24	%			26	%			24	%
Segment Data		Q3				YTD				Q3				YTD
Healthcare
Revenues
Capital		$	118,333			$	309,251			$	106,835			$	283,409
Consumables			61,553				182,478				66,494				197,263
Service			57,957				172,307				59,948				176,215
Total Recurring			119,510				354,785				126,442				373,478
Total Healthcare Revenues		$	237,843			$	664,036			$	233,277			$	656,887
Operating Income (Loss)			40,185				110,340				45,254				113,722
Life Sciences
Revenues
Capital		$	16,788			$	49,430			$	25,697			$	60,937
Consumables			15,948				48,140				15,037				45,054
Service			18,511				53,804				18,176				53,436
Total Recurring			34,459				101,944				33,213				98,490
Total Life Sciences Revenues		$	51,247			$	151,374			$	58,910			$	159,427
Operating Income (Loss)			7,345				23,075				10,123				23,442
Isomedix Services
Revenues		$	38,081			$	113,721			$	34,987			$	105,129
Operating Income (Loss)			10,250				30,858				6,929				22,669
Corporate and Other
Revenues		$	1,112			$	2,870			$	658			$	4,161
Operating Income (Loss)			(2,153	)			(6,735	)			(2,878	)			(7,478	)
Other Data		Q3				YTD				Q3				YTD
Healthcare Backlog		$	178,546				n/a			$	134,400				n/a
Life Sciences Backlog			42,521				n/a				45,362				n/a
Total Backlog		$	221,067				n/a			$	179,762				n/a
Free Cash Flow		$	(1,002	)		$	28,305			$	55,029			$	129,403
Net Debt		$	17,712			$	17,712			$	44,581			$	44,581

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 backlog, free cash flow and net debt.