Sotera Health (SHC) 3 May 232023 Q1 Earnings call transcript

Good morning, and welcome to the Sotera Health First Quarter 2023 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Vice President and Treasurer, Jason Peterson. Please go ahead.

Good morning, and thank you. first results Health's Sotera to quarter call. XXXX Welcome

a release supplemental our the slides can recorded at find the Investors accompanying press today's and being Health is of You section on of available website. and Investors This webcast will Sotera replay be soterahealth.com. in website section

Interim today Michael Officer, Biehl. On me and Executive Financial are the call Officer, Chief Chief Chairman with Michael Petras; and

company may subject be in During risks considered statements. or the our call, Please at could no addressed any update are forward-looking Health's the some SEC a obligation Sotera implied. The to statements. refer this from such that these uncertainties of comments statements results differ and The presentation to of for and to risks matters the assumes actual slide those beginning these forward-looking cause materially description projected to forward-looking statements of filings uncertainties. and

comparisons. today, and EBITDA, including will during leverage that company present the ratio note net in in currency of EPS, adjusted presentation. net GAAP both for attached be the to schedules non-GAAP release in constant relevant slides margin periods adjusted adjusted to addition reconciliation debt, the and may of Please all EBITDA found press net company's to measures, financial the income, discussion non-GAAP the A supplemental and GAAP measures this adjusted

so and to follow-up Q&A the opportunity today. call one yourself we everyone of one with portion operator will be question the questions. assisting The Please limit can ask to an that give

and the team. free questions, call, feel me reach you to out any if to Relations have post always, As Investor please

Chairman turn the call Health and Michael CEO, Petras. now I over to will Sotera

Consistent typical XXXX commentary revenues year, and and Sotera quarter XXXX. for joining for of although driven increased prior with volumes fourth earnings during adjusted and the of call, Health's The the everyone, lower are our XXXX first year, timing the earnings at supply first quarter harvest Sterigenics the Sterigenics. morning, declined EBITDA of the quarter by XXXX quarter you first lower Nordion Labs Nelson volumes over the first quarter thank anticipated made cobalt-XX Good volumes schedules call. and over

and provide to first declined first, few our of adjusted Michael declined Total a detail company EPS financial of quarter, items We moment, $X.XX which last want adjusted EBITDA to is period for first I will the XX.X% decrease more X.X% $X.XX results compared the on but highlight quarter quarter a a the delivered from in Biehl results. same year. our revenues from XXXX.

X% lighter to continues business segment. challenges. modalities the largest is for line our growth work headwinds reporting what chain typically some across inflation through as for customer quarter delivered top supply quarter growth and the The Sterigenics the major segment, Sterigenics, units a saw in all team

projects invest which capacity to EO to in continue our These in employees, communities our We expansion and commitment active with for best-in-class North unwavering Sterigenics in X enhancements facility and making operate. customers at industry-leading are also additional underscore we our controls on enhancements emission ensure America. progress

sterilization timing the anticipated revenue to services harvest due business decline of within XX% Nordion, segment the experienced our schedules. other reporting delivery an cobalt-XX year-over-year

stated, to from which tied Nordion's schedules is our As we've harvest large cobalt-XX timing consistently the the are revenue suppliers, utilities. of

will these with XX% though the into we visibility the in year of approximately the this especially year. even good our timing confident occur to the have back we be XXXX forecast, half revenue Since of expected revenue revenue harvest schedules, of irregular in are Nordion's

X% Health result in of XXXX X% supply portion could its a sources on Nordion cobalt-XX revenues. that Russia supply Russia. total from we know, you Previously, impact from total Sotera disruption of stated to a many As of potentially

X.X% impact the risk to Health With revenues. be estimate supply cobalt-XX total Russian the now to potential quarter complete, X% disruption Sotera we on

is proud cobalt-XX health. of of the I how of supply cobalt-XX am uninterrupted health ensuring is world's a devices. continued in approximately is the sterilize the safeguarding crucial XX% medical community mission importantly, live global example of Nordion we great used single-use our to area. This more because efforts to care Even our this team by global

Labs, Nelson declined and business compared volumes experienced prior testing lab the to our quarter in first as advisory the lower revenue service X.X% year.

The of the have certain for where seen testing typically is full of to a Labs, first quarter pre-pandemic recovery types softer year not also of Nelson levels. we

positioned in order trends return are by volume encouraged We operationally pre-pandemic to for and some recent are levels.

during first call, Term the Loan Health Sotera on million of $XXX our earnings communicated last As quarter. a during B closed an issuance

first ratio reaffirming net are comfortable the quarter, positioned -- communicated we X.Xx. we after our the that first at XXXX quarter Based call. first was of feel outlook we Our on for the earnings last leverage on where the

As a a both few XXXX. X% to versus outlook range minutes. in our calls reminder, XXXX will and in revenue EBITDA the recap growth for of details our X% of outlook adjusted the Biehl Michael

supply with customer we stabilization still in and areas. chains, some exist challenges seeing labor Although, these inflation, are

Our teams and delivering for shareholders. to profitability remain committed growth our

global would is to our heart work of reinforce our at mission across the which I health, like safeguarding the company.

lives preventing serve health the we services safety are human Whether protect across of health broad well-being or and and providing needs. help verifying critical of to our around we millions medical a regulatory performance, pharmaceutical and our scientific of broad to product's toughest the sterility care ensure and we customers' of the range world. the and accuracy products products solve infection consulting challenges, expertise Our

financials Biehl the Michael in take through Now more detail. us will

of leverage. I details outlook. then I on covering by on provide you, additional around comments on capital basis XXXX will our conclude deployment each Thank will Michael. with first quarter highlights segments, the and updates XXXX some begin with along a the business some consolidated and

back moderating to year. to total and consolidated as constant currently expect to half are X.X% This currency the headwinds on same a company X.X% by We On foreign decline declined we revenues basis, first a experienced a currency $XXX become the company a basis to these last of period million. year equates do quarter a as foreign of the X.X%. total currency tailwind during headwind feel compared

margins XXXX $XX first harvest XXX of million. majority supply The the XXXX to Adjusted declined is decline Nordion XX.X% representing quarter levels. from quarter point EBITDA first explained Adjusted EBITDA were basis which schedules. by anticipated by cobalt-XX compared XX.X%, of a the to

Our operating share earnings per adjusted performance XXXX. drove the decrease of a from of $X.XX, quarter first $X.XX of

diluted The income million to first first $X.XX quarter $X net in million XXXX. share diluted share or of of income of $X.XX compared XXXX had or per net quarter per $XX

reported million. quarter $XX for Our expense the interest was

quarter X% delivered over growth the as take a grew On constant let's a income at first of good Now with year. another to $XX segment last the million currency to revenue our of quarter segment to of growth performances. revenue million Sterigenics and compared first compared quarter X% closer last Sterigenics over X% look year. basis, $XXX

margins partially income to changes favorable favorable Revenue X% by partially unfavorable quarter the the offset basis growth lighter the include drivers by of segment to offset driven mix, foreign XXX for and typical the first impacts about points pricing. first by and XX.X%, by volume year volume pricing Compared of inflation, X%. of of XXXX contracted quarter to X%, currency remainder of relative first quarter about in favorable the

million segment change by schedules. over by the quarter first to driven nearly XXXX, was XXXX revenue same volume period mix to Nordion's to headwinds last of XX% decline compared income versus foreign quarter and and changes X%. of with year. in and declined driven associated timing revenue segment the XX% expected, $X was as of million which, Nordion's harvest approximately first the income quarter of first to declined by supply Nordion's $X compared cobalt-XX currency

over For XX% Nelson Labs by to first to and quarter the $XX XXXX declined to compared million million, $XX of first quarter income revenue declined by XXXX. X.X% segment

As for Labs. we lowest the typically communicated, of is the previously quarter the year first Nelson quarter

and currency offset impacted X% the compared Nelson last X%. an partially of Reduced approximate in were of approximately as declined benefit Labs XXXX On quarter headwinds as with revenue volume to for well first foreign by revenue from mix currency of was basis, X% a X% by associated quarter over of These changes the first year. pricing. decline constant

want decline to the of XXXX. we XXXX volumes quarter at pricing. Nelson that impact typical versus volume the contracted Decline quarter First XXX first the lighter driven of remainder for increased quarter was first by of basis note to Labs relative XX.X%, offset by I maintaining Labs Nelson approximately anticipation year. levels the point of in year, or staffing throughout favorable are partially to margins

provide will generation, I highlights now capital net leverage. on deployment and cash

flow. During cash the quarter, of the company generated approximately $XX million operating

liquidity. As of XXXX, billion cash March XX, cash $XXX equivalents in over million and and available of we $X had

we related mentioned As the million facility. credit of X, loan on first Loan new we of term paid May settlement. borrowings $XXX off the escrow $XXX oxide the revolving Term the of a balance existing million under the earlier, litigation sheet quarter, proceeds, funded million $XXX closed on on and portion B. Michael Illinois cash Using during ethylene into And our to a

and the to consummated $XXX Xx, X until second the long-term of within Although, settlement escrow $XXX company's quarter the plaintiffs. restricted quarter will cash and our in in this balance we into classified dispersed funded funding of XXXX XXXX sheet debt million range is leverage The to increase net to the funds settling million net year stated second expect initially be as the to cash our Xx. above the will the are on the ratio finish leverage target new settlement

added $XX.X to closed first the to lien of million. a million loan also and new on During amendment its quarter, $XXX.X commitments total the increased first which an revolving agreement, available capacity credit our company

at $XXX putting the the of moving increase On $XXX credit million, the were $XXX our end also to letter quarter, a able first We the our escrow, by funding capacity in to a total forma in facility million settlement million. of million included credit is after pro strong to position approximate a $XXX revolving liquidity forward. us basis of

first the capital increased $XX facility quarter the totaled investment Growth drove and expenditures during for enhancements Our the CapEx million. XXXX quarter.

based mentioned, first we see comfortable are for of the quarter Michael February the provided in on we what we remainder the year, reaffirming XXXX. outlook we and ended the As where

the $XXX XX% in on representing annual tax the we million, growth billion, range the billion income our an of net of X%. Adjusted of X% And in X% range to of recap, in rate year the range representing to annual effective $X.XXX million adjusted an be $X.XXX XXXX, rate revenues expect XX%. $XXX EBITDA also total to to of growth to be To full to X%. to rate

and in expected which well as expense is as $X.XX to the XXXX. a decline to EPS in be rate to represents reform. in is XX% primarily year increased expense outlined fourth coupled increased primarily tax the to of with attributable limitations I interest full of increase the range U.S. compared to year XXXX interest as As This by increased the $X.XX. expense, earnings Adjusted the XX%, interest of to driven call, result compared quarter tax our rate of prior a deductibility is the tax

Capital million, America expenditures range at to development in capacity be fund Labs to growth well to as and Sterigenics $XXX million for as facility North EO projects Nelson both representing in are continued continue expansions as expected and at investment the in of cobalt Nordion. invest $XXX enhancements we elevated

other previously well. The issued the as same elements remain of outlook our

As specifics of the on we unit. each I business at some cadence provide reporting, will look quarterly

continue year. For we expect Nordion's year that the total Nordion, year and XX% I half will XX% total of Approximately in the will the of comment income revenue briefly segment be during year. realized on of lumpiness the second to

X% was impact to during As there Sotera of loss from Michael first potential total mentioned Russia the Health now on previously, in cobalt-XX complete supply the quarter. supply disruption revenues XXXX X.X% no as of is the

Labs expect margin and and Sterigenics realize to increased year. throughout expansion Nelson the volumes We

turn you, the now Michael. to over I'll call back

Michael. you, Thank

I the and touch the litigation. Before to on transitioning want regulations topic of to oxide session, ethylene Q&A

the has stricter As many know, released the regulations. EPA proposal of EO you for its

that EPA a the been considered regulations. issued, to of be the in Now period submit public industry the and comments participants proposed proposals finalizing there for the members to is have by

facilities operations, Although, and would require post our our that changes lot confident of the effort have make capital to EO are leadership and in proposals industry challenges to area. in time, participants in this we all their invested a

Sterigenics that settlement, escrow cases this be to in rates the settled on to EO terms we eligible into upon agreed million. a Subject amount the the the participation Committee Illinois in agreement on expect plaintiff late the As completed track for to settlement settlement of Executive for to Pursuant by dismissed in the process participation summer. be all X, funded reports remains $XXX May the of May. substantially settlement to claimants, the be the presented

that As I to position wrap my I in up XXXX. throughout a remains comments, want for growth Sotera reemphasize strong Health

we Overall, the to expected atypical harvest very company's feel current supply due cobalt-XX future was cadence quarter first of and good The schedules. the about prospects.

open answers. question operator up call to for this and Joe, At point, like the I'd

[Operator Instructions] Patrick ahead. Please Donnelly come from our Citi. here will with first And go question

Good This Hi. morning. for Patrick. Lizzie on is

the for high I So Can half the on mentioned you're back you one Nelson you year. seeing the what to of talk there? more the kind have in bit order think follow-up. Thanks. sounded little trends. Labs on a XQ It return call, the I XX% of And margins about constructive

Good to see the Yes, pick the expect in we to expect Nelson to year the XXs discussed mid- morning, margin Lizzie, this volumes levels Michael. you settle is and rates just to as progresses. up continue Labs around high we

it just we the That’s think on X% And should Thanks. about me. around on Great. mentioned year well broadly? of the and think inflation how Is pricing for you for Thanks. for then, kind Sterigenics, it I outlook quarter. that as

stated Yes. is in the year. kind company, that the we across Thank and it -- is we've of to range price as Sterigenics the the that of of range. on Nordion range. end of expect lower you. X.X% end per on higher We is Nelson middle X%

last because ranges the those of been offset. several little quarters, the running Over higher on a we've inflation

more see in you'll over offsets. been of think of time But inflation seen. the typical couple settle little ranges that we've because into last the the a I quarters higher it have

you. Thank

will question. from Polark with Research. And come Please your our go question with next Wolfe Mike ahead

for morning. me. question. Good for Two Hi. you Thank the taking

suspicion when in had is twists affirmation to is I'm on you Nelson the full maybe that? just First My prior say, the Sterigenics first and set the the but your like is versus before, guidance, plan? lighter you three appreciate better. if Anything year. the are all little no, now relative segments of turns a individually segments wondering than a year little outlook? Or in now Any

back Michael. February I line we This they're when what in the It's consistent. we Mike. with you initial is outlook. say did Yes, in would gave pretty

I participation at when see some those Illinois, on to follow-up filing guess, this have you the specifically The you the we, seen other expect will see And you. Thank do rates? point or Or those? via month forum? public,

No.

that a do next claimants, things Mike, make presented to be They'll that, don't So along. those now we now. even and are being just are months, have period going the plaintiff that's that visibility out. the ongoing right time -- reviewing just dialogue so that they'll weeks sure of We have tracking the to over to have with counsel

stated because May we we feel call mentioned I've in escrow summer, just here on we the today, As late as the as progressing. visibility well. are did won't things fund the on we escrow, X the of past million have But how $XXX until comfortable

Okay. Thank you.

you. Thank

with Sean ahead question RBC And with from Dodge our your will Please questions. next come go Capital.

sufficient EPA has how to are are now? update out are proposal those done, Yes. the capabilities, in are facilities these standards you've enhancements many then, far morning. what And EPA is scrubbing meet Thanks. laid Good to now making, out, many been stringent you go? how -- can you more Michael, us how the left along the all the upgrading on your in

we on well progressing improvements. Yes, are our very

that we’ve discharge, primary permanent there's As stated and closure past, in three total place, we've been double scrub central the in and negative putting pressure XXX. improvements

to got very industry that things comfortable are made, next place comments made. point. several proposal we'll There our to take public comment and the whole and the progress will a the the address. has the we've some that We in that provide weeks period investments are months we've over with There's

be on for are some there that I we additional that's need don't that things may be the some of entire in intention ultimately, some EPA. are It modify think, there unachievable will that I the the industry. potentially based capital. that. to There could mean, require things

and appropriate I industry, we're we've draft think when feel that very the that. made these and investments the very, how leadership These the of we they facilities get the in good the operate, direction from understand make proposals. are position heading they'll But on adjustments. about

guidance, is anything consistent back at Nordion of bit, of more of of mostly driven and at the kind rebounding steep the Michael and is prepared the then, year? in the across guess, Or a And visibility will all equally on remainder Nelson share ramp the the operating more into the touched the expectation half in then a the you on but year, segments? great. it kind I this there of into that on cadence, this guess, you the on the little kind is EBITDA be dependent point I Okay, Biehl, remarks, have can drivers the of you pretty

Michael Biehl. This is Yes.

think being continues XX% be the we EBITDA what Nordion and and with second the of with XX% lumpy, in indicated, track of to the That we on will we half. had said. As revenues originally be

originally typically no Sterigenics seen what And the on to think historically, we so, really, change really ramp lighter the an And that first from of we've remainder Nelson, year of even and in up with over continue there's will is said. quarter sort and basis. we as

Okay, great. Thanks again.

come question Please questions. go next will ahead with Sergott your our with And Barclays. from Luke

appreciate you of anything Can your bit were in morning. will volumes you're push volumes come about that more that and little comfort back. there some Thank recovery you talk there give outs the expecting us I -- just to a -- would Good actually give backlog? that to backlog building excess Is about clarity there. to talking here us you're you. -- quarter? Nelson, back? point you're any Anything the but can anything But come in

than we trends -- at little some we seeing saw our order in are of earlier our bit on. strength in particularly when area, the validation backlog, Yes, look we a more our

some around levels. that's pre-pandemic the we remarks prepared So -- of

particular, the the about things recovering around not some seeing fully validation, from optimism that some as in that levels. forward. That, may of you we're moves it we've pandemic As talked recall,

team the continues So on execute to it.

time, As I've as most improved, the to well Net in the customer of past, results. strong competitiveness I’m that the as proud Promoter the turnaround that continue we've stated we what get and Scores is scores SAT

fairly come. well. we situation we've ramp to labor as year well past is And the pretty other the talked expect well team progress So is of as as situated doing we that about and on the we just the labor the one in the through feel things

your for the and rates Okay. And what Sterigenics? here. disclose your then, in for follow-up you a facilities EO Can Atlanta sterilization are recapture other

you define by Please mean recapture rate? what

the so recapture? rulings like guys going are you around -- it's that that? to expected above the new be operating Well, XX.X% Are

Yes.

I think don't what emissions. too get mean technical there's … you I process might be referencing is here, to but

Yes, fine. it's yes. No,

yes. Yes,

So by way, engineer. I'm the not an

is process or nose or fusion emissions, me there's [multiple say probably emissions. Sterigenics his throwing -- Sean So holding so But let up speakers]. just there's

depends it what you're about. So on talking

probably you're the I think XX.X%. some what is is submission process referencing the and goal of stuff,

Atlanta, in We in. the achieving of documented. are particularly been these some we put well where in improvements facilities, It's

is I achieving is, We five. are XX.XXX, think or what

good So though, that rules things, things rules, is we've the like monitoring the got this the embedded of the those we think will -- question feel new going about of there's industry the I one proposed that. about for and The motoring a frequency become be to within that. things some challenge very is

we matters. our to those are of capture not Some overall, proposed concerned efficiency in rules. really But the ability about required the technical are

Thanks. All right. Great.

questions. with with from question Jefferies. your And ahead Please Windley our go will next David come

you you inflation back first mismatch Hi. But impacting -- come talked that addition kind was of if in were you between acquisitions first year, Last to in at of to I of that kind year. had there margins to coming a Thanks. quarter was could. to a seasonality. Michael, Nelson, timing the your in a the those to time. the had that, wanted couple also and that lower And through business and ability made in margins scale then, was expected came which later put in over labor price I

And And to that anomaly the much then, year. year, are this an add margins so, margins seem I guess to additional those lower. last

what case, the So if I remarks expected. I prepared why you hearing that's understanding I'm the that was not in you as hearing expected? -- that guess was largely guess, I'm I'm not And this

Yes.

have So and question of the to geography of I all businesses. volume forward David, overall the see Nordion would Obviously, the total more I is say in to one, like the was on three the very good we'd we going was business that. visibility addressing, our

is of and labor in the As I got say the lowest, always far been labor the fact lowest. in out. drop isn't because the traditionally the we've lowest traditionally the we as and that to flexibility Nelson has been have or always. don't Labs, strong as first It's shouldn't built leverage And labor quarter our there

it the you're previous where overall, I'd volume So And feel to margin looking continue challenge look at be tell quarter get on side would inflation. to the last going the they're to we productivity. you on when year good relative and price rates about to or quarters you the at the also offset that for

Okay.

Thank you. helpful. That's Okay.

On frequency EPA you the I monitoring of for specificity the the things that my mentioned the follow-up, us, to out appreciate as stood there. one one.

is to us of to months jump I into you come would XX Sotera that comply of couldn't? have the stood out that but making. XX-month compliance interested you've a at the you start in been could in ahead that one, started be the that you've that to investments your the pretty maybe reaction guess, because with things And/or game was maybe is timeframe, is One Thanks. the that timeframe, it that something aggressive? industry in

Yes. Very good question, David.

take is of but previous we period permanent are a aggressive total think construction the note I fact comments, us, is of ventilation, some okay? that for the a When situated think very on equipment and our that and this and that said think had in closure do be the I is took timeline. that others and to time we could that XXX. particularly pretty I we I meet about think ahead and aggressive things if everybody, If well negative That including we of pressure in that amount mean the proposal leadership public the position you industry game, way to, and us doesn't won't timeline. of is important XX-month our the one conversations, recall of we

accomplish The the the for challenging work U.S. the be keep entire is have requirements when to amount an XXX very that's ductwork to to just with that supply chains to be up you everything industry, going and many. feel where across with really required to else, Those for able facilities be think made at the We that good of actually David to I I'm in going about are accomplish. area. the that industry are have that in can we referencing, they're things kind we've advancement sensitive to of what

there's a up that sitting a are we feel already the on there pretty we But to top be good in of said think this. I about in because could along comment on where conclusion, far we extensions are document in this year that.

it. Got

very Thank the Appreciate perspective. much. you Okay.

question Casey from Please question. next come ahead with Morgan. with Our will J.P. your go Woodring

for Thanks taking Hi. my questions.

Just proposed a follow-up on regulations. the EPA

much the range you So just you there? through would goes on you need the further part commit make of taking is, that Can to how If talked those necessary you're enhancements? outcomes period in. about the elaborate capital proposal as comment to

our through Yes. Casey, still working it. are we way

get in the don't out think assessing early and we further the until be number, understand where want required in capital. number this and also are going to to assessment a extent and a throw of but it's stages We of there I don't I proposals modifications is. the EPA huge the

of only industry I on going -- but going suspicion. at not to is be This to very be would lot us, from is people that, a there's a think that across think proposal comments the I be draft

it. Got

has performance generally better-than-expected MedTech so far this So year. been

any contracts at that or point? in Would guys you have locked if growth outsized outside recent of upside more guide your are if from from benefit Sterigenics wondering any the So this there to see less you -- your customers? or growth sort

are No, point in across to our we've guide whole the X% at confident in X% this that the pretty company. given time, in we

business We the but we around haven't increased levels see progresses. given to particular unit, year specific do Sterigenics expect guidance as

in. I new current the how assumptions changed was think if could FX fit the And more of What And beginning your and embedded on guide. be it. to one the currency prior are from just year in I the have the neutral expected Got year? guide? those

constant like your look what's currency So guidance now?

This pause guided the big is as really on Michael to the that pretty really it. -- to in in assumptions It's terms we same cause any And of we we originally there. much when what changes haven't Biehl. are us seen

you. Thank

And from KeyBanc. Mishan Please question question. with with our your Matthew go will ahead come next

Michael. Hey, great. Okay,

Good morning.

asking I coming ask little go that you customers, will facilities like probably from expectations. way. especially of if as bit I'm in their a so? a able volumes Anything in a of being those to think so you in prevent volume different as add our assuming the numbers some from of would they're do a I Is the volumes, like the upside going more are some through kind customers capacity -- to MedTech more would meet that maybe rest system because your through and little the question there of you the to year

the about within be good a volumes. we to strength kind system could one-to-one the that see we are feel things I tracking of were us supply translating When be if at to ability one-to-one demand pretty or to Matthew. pretty basis, We a in that may look back inventory That the mirror start caused our on to to in that. challenge. by suddenly chain may the have been volumes health react it, that But No, demand care, on end don't and correlation strong. be the

to talked as been how time capacity to lot just it a and that of we've be, as and also but area the only brick-and-mortar within team operations. in try efficiency may in And things more to more excellence in get well. Mike operational around or or spending place, additional progress to chambers continue doing whatever we do drive been the past the not We've facilities we've continue in our our

we'd if I able to react they opportunities So us. think any be to to came

that Okay. facility case bit what extent, on And quantify, what just one would be to in is? were you negotiations Ontario, that your then, a little upcoming to if And with it looks the like this in Can EO like worst you're for drag like Sterigenics percentage the like California. having quarter? longer, some of of plants continued for

both just Yes. really to an have our interim the reduce asked how out ongoing across don't try interim we Ontario place we them facilities. period And them. And even figure an they've what are to we coming we period. to that with clarify, levels U.S. with agreement in And us facility negotiation them. is put have to asked a what of enhancements us capture that you that's have to see. in timeline all L.A. Matt, and -- in -- with They the emissions they've to

occasionally, or are the completely something level So until right going that lower might what a see now. in. you improvements have you That's exceeds blip new

shortly. Listen, world. this us. portion I it's plus of more we into for higher XX around But isn't for mean, won't in important the products. of get that our customers. small facilities it's This business. to a I our hope mix we have it's tell facility not have important but plant would I that, the mixed our Sterigenics doesn't customers, is here is just the up you, our It okay? relatively running end profitable on that that largest this stretch, important to and not important any by not us, is mean and our than most to doesn't mean particulars plant, But

Thank the on color you that. for

Yep. Thanks.

for over would conference Michael any the question-and-answer our to I turn to like closing And remarks. this Petras session. concludes back

for you, this you, Thank morning. everybody, Great. Thank Joe. participating

loaded which the couple a the as pretty year. areas. was thought, we we much big here came in well which what little quarter expected volumes, But back-end see that softer see, can the a -- driver overall, in throughout Nordion Nordion, and the of you As

So, wish everybody your thank feel about is and for company you. you good good the overall, Thank ongoing we where situated. really support, We Bye-bye. a day.

The conference Thank for has presentation. you now concluded. today's attending

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