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) March 16, 2005
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)) |
| ITEM 7.01 | Regulation FD Disclosures |
Attached hereto as Exhibit 99.1 is a copy of materials dated March 16, 2005 and prepared with respect to a presentation at the SG Cowen Healthcare Conference that is being made by senior management of STERIS Corporation on March 16, 2005.
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.
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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.
| STERIS CORPORATION | ||
| By: |
/s/ Mark D. McGinley | |
| Mark D. McGinley | ||
| Vice President, General Counsel and Secretary | ||
Dated: March 16, 2005
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Exhibit 99.1
Counting on STERIS
SG Cowen Healthcare Conference
Boston, MA
March 16, 2005
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 26, 2005. Further, these forward-looking statements speak only as of March 16, 2005. 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.
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Overview
Reasons to Consider STERIS
1. We are a market leader
2. Strong underlying industry demand
3. Stable company with strong financial position
Solid cash generation
Low debt levels
Consistently high gross margins
4. Substantial opportunities for growth in new markets and geographies
5. Consistent revenue stream, with 55% recurring revenues through the sale of consumables and service
5 reasons
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Our Evolution
INITIAL GROWTH
ACQUISITIONS
REORGANIZATION
1987 Start up
STERIS 1995
STERIS 2000
STERIS Today
Leader in Technologies to Control Infection and Contamination
$1 billion
Positioned For Growth
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High Arching Vision
AT STERIS WE HAVE A VISION
To See The World Free From Infection And Contamination
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Only 1 Company Like This
We have a unique product offering
Capital Equipment
Consumables
Service
This balanced revenue stream allows us:
A stronger competitive position
Protection from capital spending cycles
Higher margins from consumables and service
The ability to offer customers a total solution
Balanced Revenue Stream
Service 30%
Consumables 25%
Capital 45%
55% Recurring Revenues
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Where you will find STERIS
Healthcare (Hospitals and Surgical Centers)
OR and Critical Care
Sterile Processing of Surgical Instruments
Caregiver Skin Care Products
Life Sciences (Pharma Production & Research, Defense)
Pharmaceutical Production Facilities
Research Labs
Defense and Industrial
STERIS Isomedix Services (Contract Sterilization)
Single-use Medical Devices
Personal Care Products
Packaging, Lab Glassware
Healthcare 69%
Isomedix 8%
Life Sciences 23%
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Strategic Direction
Key Growth Drivers
Sustainable Profitable Growth
Market Growth
Improve Execution
3 drivers
Diversify Revenue
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Key Market Growth Drivers
Healthcare:
Organic growth of 5-7%
Drivers = aging population, surgical procedure growth, hospital spending on construction, concerns over hospital acquired infections
Life Sciences:
Organic growth of 8-10%
Drivers = aging population, drug consumption, ongoing investment in drug production (new and generic), increased FDA pressure on cleaning validation
Isomedix:
Organic growth of 5-7%
78 million baby boomers
Drivers = medical device consumption, sterilization outsourcing
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Actions to Improve Execution
We have a focused initiative underway that will change the culture and the way we do business by transforming our:
Business Processes
Becoming a market-led organization
Focusing on lean operations
Management Processes
Improving planning, talent and performance management
Mindsets & Behaviors
Embracing a singular culture “The STERIS Way”
1 approach
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Our Growth Strategy
Diversify revenue stream by product, service, market and geography
1. Increase recurring revenues
2. Leverage our channel
3. Introduce new technologies
4. Adapt our technologies
5. Expand internationally
2.8 million cubic ft. decontaminated
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Recent Strategic Actions
Acquisition of Albert Browne Limited—September 2004
Offers biological and chemical indicators (consumables) Products are used with capital equipment
Acquisition of Cosmed Group, Inc.—January 2005
Contract sterilization (services) Strengthens STERIS’s EtO position
Life Sciences Re-shaping—January 2005
Re-focusing the business on STERIS core strengths
Will be divesting $60-$70 million in lower margin product lines
$37 million acquired
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Why own STERIS?
1. Market leader
2. Growing markets
3. Strong financial position
4. Substantial opportunities
5. Consistent revenue stream
5 reasons to invest
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