Sotera Health Company

Good morning and welcome to the Sotero Health third quarter 2024 conference call. All participants will be in listen-only mode. Did you need assistance? Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Vice President of Investor Relations and Treasurer, Jason Peterson. Jason, please go ahead.

Good morning and thank you. Welcome to Cetera Health's third quarter 2024 earnings call. You can find today's press release and accompanying supplemental slides on the investor section of our website at soterrahealth.com. This webcast is being recorded and a replay will be available in the investor section of the Sotera Health website. On the call with me today are Chairman and Chief Executive Officer Michael Petras and Chief Financial Officer John Lyons. During the call, some of our comments may be considered forward-looking statements. The matters addressed in these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to Sotera Health's SEC filings in the forward-looking statement slide at the beginning of the presentation for a description of these risks and uncertainties. The company assumes no obligation to update any such forward-looking statements. Please note that during the discussion today, the company will present both GAAP and non-GAAP financial measures including adjusted EBITDA, adjusted EBITDA margin, segment income margin, adjusted net income, adjusted EPS, and net leverage ratio, in addition to constant currency comparisons. A reconciliation of GAAP to non-GAAP measures for all relevant periods may be found in the schedules attached to the company's press release and in the supplemental slides to this presentation. The operator will be assisting with the Q&A portion of the call today. Please limit yourself to one question and one follow-up so that we can give everyone an opportunity to ask questions. If you have any questions after the call, please feel free to reach out to me and the investor relations team. I will now turn the call over to Sotero Health Chairman and CEO, Michael Petras.

Good morning, everyone, and thank you for joining Sotero Health's third quarter 2024 earnings call. This morning, we reported year-over-year top and bottom line growth with volume and mix improvement in all three of our businesses versus the third quarter of 2023. Compared to the third quarter of 2023, total company revenues increased 8.5% or 8.9% on a constant currency basis, while adjusted EBITDA increased 9%. We delivered adjusted EPS of 17 cents for the quarter, which is a one cent increase from the same period last year. Sterigenics, our large reporting segment, delivered 4.3 percent topline growth for the third quarter of 2024, which included slight volume and mixed growth over the third quarter of 2023. During the quarter, the team completed one facility expansion project for which the customer product validation phase is underway. We also continue to make good progress on our North American EO facility enhancements to ensure we meet the stringent and complex NESHAP regulations by the required deadline. Nordian, our other reporting segment within the sterilization services business, delivered a 28% year-over-year revenue increase, which was driven by the timing of the reactor harvest schedules. The Nordian team fulfilled some shipments in the quarter that were planned for the fourth quarter in support of our customers' requests, which resulted in more revenue in the quarter than originally anticipated. I'm also excited to announce that Nordian has reached an important milestone for one of its cobalt development projects. Recently, the first insertion of cobalt was successfully installed into a Darlington reactor in Canada and we expect the first cobalt-60 harvest to occur in 2028. This project is a great example of how we are safeguarding global health by ensuring a steady supply of cobalt-60 for our customers into the future. Nelson Labs, our lab testing and advisory services business, grew its top line 7% and bottom line 9% versus the third quarter of 2023. We are pleased to see higher core lab testing volumes as well as improved margins in the business both sequentially and year over year. In our previous calls, we have mentioned the recent performance of our lower margin expert advisory services, the strength of which has been tied to one-time projects. This volume is beginning to normalize, and we expect it will continue to do so as we lock the acceleration that began in the second half of 2023. With the majority of the year behind us, we are reaffirming our full-year 2024 outlook ranges for revenue and adjusted EBITDA. As a reminder, our 2024 outlook calls for both revenue and adjusted EBITDA growth in the range of 4% to 6%. John will go through our 2024 outlook in more detail shortly, but first I'd like to highlight an example of how our employees across the globe play a critical role in safeguarding global health. We take our role in healthcare seriously, and our mission is at the heart of our work every day. Continuous glucose monitors are undergoing complex technical innovation, including batteries and cybersecurity, which create new regulatory compliance challenges. Our teams at Nelson Labs and Sterigenics are providing integrated solutions for global manufacturers to address safety and regulatory needs so that patients can have better control and more competently manage their diabetes. Now, John will walk us through the financials.