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 10, 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 March 11, 2004 and prepared with respect to presentations at the SG Cowen Health Care Conference that will be made by senior management of STERIS Corporation (the “Company”) on March 11, 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: March 10, 2004
Exhibit 99
SG Cowen Health Care Conference March 11, 2004 Laurie Brlas Senior Vice President 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 March 11, 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.
STERIS’s Path to Growth
REORGANIZATION ACQUISITIONS INITIAL GROWTH
STERIS 2000
STERIS Today Leader in Technologies to Control Infection and Contamination Positioned For Growth
STERIS 1995
1987 Start up
Sales by Business Segment Fiscal Year Ended March 31, 2003 (Dollars in millions)
HEALTHCARE ($697)
LIFE SCIENCES ($195)
72%
20%
8%
STERIS ISOMEDIX SERVICES ($79)
Surgical Support Sterile Processing Applied Infection Control Pharmaceutical Production Research Defense and Industrial
Key Industries Served HEALTHCARE > > > LIFE SCIENCES > > >
STERIS ISOMEDIX SERVICES (CONTRACT STERILIZATION)
Investment Considerations
A technology leader Diversified and recurring revenue stream Strong competitive positions Strong financial and operating platform Improving market dynamics
Investment Considerations > > > > >
A Technology Leader
Broad based technologies…
Washing Systems
Surface Cleaning Chemistries
Skin Care
Sterilization
(r)
VHP
Steam Sterilization
EtO Sterilization
Peracetic Acid Sterilization
Gamma
Delivered through capital equipment chemistries and services…
Make STERIS a leader
and Services…
Diversified and Recurring Revenue Stream Consumables…
Capital equipment drives…
for a variety solution
52% of fiscal 2003 revenues were higher margin, recurring consumables and services
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
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
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
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
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
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 >
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
> >
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 (r) technology advancement into new product uses
• Prion Decontamination
Segmented sterile processing offering
Key new products for general infection control and surgical support
New Product – Reliance (r) 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
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
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
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
Recent Results and Outlook
Net Quarterly Revenues dollars in millions
$300 $250 $200 $150 $100 $50
12% Growth in Fiscal 2004 Third Quarter
4th Qtr
FY2004
3rd Qtr
FY2003
2nd Qtr FY2002
FY2001
1st Qtr
Quarterly Diluted Earnings Per Share
$ 0.40 $ 0.35 $ 0.30 $ 0.25 $ 0.20 $ 0.15 $ 0.10 $ 0.05 $ 0.00
26% Growth in Fiscal 2004
Third Quarter
4th Qtr
FY2004 of $0.24 per share
3rd Qtr FY2003 2nd Qtr FY2002
FY2001
1st Qtr A charge in the fourth quarter of fiscal 2001 resulted in a loss
*
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
Summary
A technology leader with strong competitive positions
Diversified and recurring revenue stream Improving market dynamics Financial flexibility Bright future