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): January 28, 2004
STERIS Corporation
(Exact Name of Registrant as Specified in its Charter)
| Ohio | 0-20165 | 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)
| ITEM 9. | Regulation FD Disclosure |
Attached hereto as Exhibit 99 is a copy of materials dated January 28, 2004 and prepared with respect to a presentation at the US Bancorp Piper Jaffray Health Care Conference that was made by senior management of STERIS Corporation (the “Company”) on January 28, 2004.
The information contained in this Current Report on Form 8-K, including the exhibit 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, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in 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, as amended.
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.
| STERIS CORPORATION | ||
| By: | /s/ LAURIE BRLAS | |
| Laurie Brlas Senior Vice President and Chief Financial Officer | ||
Dated: January 28, 2004
Exhibit 99
US Bancorp Piper Jaffray
Health Care Conference
January 28, 2004
Laurie Brlas, STERIS Senior VP and CFO
Forward-Looking Statements
Except for historical information discussed, today’s presentation includes
forward-looking statements that involve risks and uncertainties. Investors are
cautioned that such statements are only predictions and that actual events or
results may differ materially. Some of the factors which could cause actual
results to materially differ from those anticipated by the forward-looking
statements are set forth in the Company’s latest SEC Filings on Forms 10-K and
10-Q and in its earnings release dated January 22, 2004. Further, these
forward-looking statements speak only as of this date January 28, 2004. We
undertake no obligation to publicly release the results of any revisions to the
forward-looking statements made today to reflect events or circumstances after
today or to reflect the occurrence of unanticipated events.
2
STERIS’s Path to Growth
INITIAL GROWTH ACQUISITIONS REORGANIZATION
1987 Start up
STERIS 1995
STERIS 2000
STERIS Today
Leader in Technologies to
Control Infection and
Contamination
Positioned For Growth
3
Sales by Business Segment
Fiscal Year Ended March 31, 2003 (Dollars in millions)
HEALTHCARE ($697) 72%
LIFE SCIENCES ($195) 20%
STERIS ISOMEDIX SERVICES ($79) 8%
4
Key Industries Served
HEALTHCARE
> Surgical Support
> Sterile Processing
> Applied Infection Control
LIFE SCIENCES
> Pharmaceutical Production
> Research
> Defense and Industrial
STERIS ISOMEDIX SERVICES (CONTRACT STERILIZATION)
5
Investment Considerations
Investment Considerations
> A technology leader
> Diversified and recurring revenue stream
> Strong competitive positions
> Strong financial and operating platform
> Improving market dynamics
A Technology Leader
Broad based
technologies…
Delivered through capital equipment
chemistries and services…
Make STERIS a leader
8
Diversified and Recurring Revenue Stream
Capital equipment drives… Consumables… and Services…
52% of fiscal 2003 revenues were higher margin,
recurring consumables and services
STERIS has the unique ability to offer a custom solution for a variety
of customers, industries and geographies
9
Strong Competitive Positions
> Leading supplier of sterilization and surgical support products to U.S.
healthcare facilities
> Leading position in contract sterilization for medical technology
manufacturers and other industries
> Leading supplier of equipment and chemistries to biopharmaceutical
companies for research and production facilities
> STERIS has the broadest range of infection control technologies,
products and services in the world
> STERIS has the unique capability to offer custom solutions to a variety
of industries
10
A Strong Financial and Operating Platform
> Consistent revenue and earnings growth
> Low level of debt
> Strong free cash flow
> Efficient operations
Improving Market Dynamics
> Aging population is driving demand for healthcare services and
pharmaceuticals
> Increased spending by hospitals is leading to expansion and upgrading
of facilities
> Ongoing investment in drug production is driving manufacturing
capacity and research facilities
> Global awareness of infection control is growing
12
Strategic Direction
Sources of Growth
Earnings Power
EXTERNAL
Improving market dynamics
and growing awareness of the
need for infection control
INTERNAL
Strategic Actions to Drive
Growth and Financials
14
Our Growth Strategy
Enhance our revenue stream by continuing to
diversify by product, service, market and geography
> Increase recurring revenues
> Leverage our channel
> Introduce new technologies
> Adapt our technologies
> Expand internationally
15
Increase Recurring Revenues
> Large revenue opportunity in our own installed base
> Capture consumable opportunity
> Aggressively grow service
> New capital equipment products will have an associated proprietary
consumable
> Greater penetration of chemistries in Life Sciences
16
Chemistry in Life Sciences—New One Solution RTU
> Ready-to-Use chemistry designed to replace concentrate
chemistries that require dilution and transfer
> Eliminates processing steps and contamination risk
> Reduces labor cost
> Expands STERIS’s chemistry offering in Life Sciences
17
Leverage Our Channel in Healthcare
> Presence in every U.S. hospital
> Sales force of 250 people
> Service force of 1,000
> New products, alliances, acquisitions
18
Introduce New Technologies
> R&D spending to approximate $30 million in fiscal 2004
> Focused new product development effort
> Areas of focus include projects for new industries and new sterilization
technologies
> VHP® technology advancement into new product uses
> Prion Decontamination
> Segmented sterile processing offering
> Key new products for general infection control and surgical support
19
New Product—Reliance® Endoscope Processing System
> Submitted to FDA for 510k Approval
> Available for sale in Europe
> Registration pending in Canada and Australia
> STERIS’ first high level disinfection system for flexible
endoscopes in GI Suite
> Can process two instruments simultaneously
> Addresses key market needs in GI suite
> Integrated capital and proprietary consumable
20
Adapt Our Technologies
CURRENT
Exploring new applications
related to Anthrax
contamination
Joint research on defense
applications for biological
and chemical warfare
Joint research in space
applications
FUTURE POSSIBILITIES
Transportation
Hotel and building
decontamination
Food and beverage
packaging
Medical Device Sterilization
21
Adapt Our Technologies – Key Application
> Decontamination of State Department building SA32 mail processing
facility.
> Used STERIS proprietary technology, equipment and expertise
> First validated process for treating anthrax contaminated buildings
22
International Expansion Opportunities
Third Quarter Fiscal 2004
REVENUE MIX BY GEOGRAPHY
United States
78%
International
22%
> Market size is equivalent to
U.S.
> Focused on key European
markets
> Acquisitions to play strategic
role
> Leading-edge technologies
23
Recent Results and Outlook
Net Quarterly Revenues
dollars in millions
12% Growth in Fiscal 2004
Third Quarter
$300
$250
$200
$150
$100
$50
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
FY2001 FY2002 FY2003 FY2004
25
Quarterly Diluted Earnings Per Share
26% Growth in Fiscal 2004
Third Quarter
$ 0.40
$ 0.35
$ 0.30
$ 0.25
$ 0.20
$ 0.15
$ 0.10
$ 0.05
$ 0.00 *
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
FY2001 FY2002 FY2003 FY2004
*A charge in the fourth quarter of fiscal 2001 resulted in a loss of $0.24 per share
26
Outlook
Fiscal 2004 ending March 31, 2004
> Approximately 12% revenue growth
> Earnings approximately $1.33 to $1.35 per diluted share
Fiscal 2005 ending March 31, 2005
> Approximately 9% Revenue Growth
> Earnings approximately $1.50 per diluted share
27
Summary
> A technology leader with strong competitive positions
> Diversified and recurring revenue stream
> Improving market dynamics
> Financial flexibility
> Bright future