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Nordion First Quarter Fiscal 2013
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Nordion First Quarter Fiscal 2013


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  • 1. First Quarter Fiscal 2013Earnings Conference Call March 6, 2013
  • 2. Caution on Forward Looking StatementsThis presentation contains forward-looking statements, within the meaning of applicable securities laws, including underapplicable Canadian securities laws and the “safe harbor” provisions of the United States Private Securities Litigation Reform Actof 1995. These statements can be identified by expressions of belief, expectation or intention, as well as those statements that arenot historical fact. The words “may”, “will”, “could”, “should”, “would”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”and similar words and expressions are also intended to identify forward-looking statements. Forward-looking statements arenecessarily based on estimates and assumptions made by us in light of our experience and our perception of historical trends,current conditions and expected future developments, as well as other factors that we believe are appropriate in thecircumstances, but which are inherently subject to significant business, political, economic and competitive uncertainties andcontingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Accordingly, this presentation is subject to the disclaimer and qualified by the assumptions, qualifications andrisk factors referred to in our 2012 Annual Information Form (AIF).We caution readers not to place undue reliance on the Company’s forward-looking statements, as a number of factors couldcause our actual results, performance or achievements to differ materially from any forward-looking statements. We do notassume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time totime by us or on our behalf, except as required by applicable law. 2
  • 3. Non GAAP InformationTo supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), thecompany uses non-GAAP financial measures such as adjusted net income and adjusted earnings per share. Non-GAAP financialmeasures exclude certain items, such as restructuring charges and recovery, change in fair value of embedded derivatives, AECLarbitration and legal fees, loss and gains on sales of investments, loss or gains on discontinued operations, and tax effects onadjusted items. Management uses non-GAAP financial measures internally for strategic decision making, forecasting futureresults and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provideinvestors with a meaningful, consistent comparison of the companys core operating results and trends for the periods presented.Non-GAAP financial measures are not prepared in accordance with GAAP. Therefore, the information is not necessarilycomparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, thecorresponding measures calculated in accordance with GAAP. 3
  • 4. First Quarter Fiscal 2013 Earnings Conference Call Steve West Chief Executive OfficerMarch 6, 2013
  • 5. Q1 2013 Results Targeted Therapies Sterilization Technologies Medical Isotopes Segmented Revenue Segmented Earnings* (US$ millions) (US$ millions)60 18 1650 16.4 14 16.1 4.540 12 10 3.530 8 25.9 25.2 7.720 6 6.9 410 11.0 12.0 2 3.1 1.4 0 0 2012 2013 2012 2013 Q1 Q1 * Excludes corporate segmented loss 5
  • 6. Targeted Therapies: TheraSphere®• $12.0 million in • Annual growth in the revenue up 9% over mid-teen percent 2013 OUTLOOK Q1 RESULTS Q1/12 range• Added 4 new sites in • Growth in the the U.S. and 6 in second half of fiscal EMEA 2013 will be stronger• Launched new global than in the first half TheraSphere® website of the year• Initiated STOP-HCC clinical trial sites in Canada and Europe STRATEGY Build the Targeted Therapies business. 6
  • 7. Specialty Isotopes: Sterilization Technologies• $16.4 million revenue up • Maintain market- 2% compared to Q1/12 leading position and 2013 OUTLOOK continue generating Q1 RESULTS• Cobalt revenue of $15.4 million decreased 2% high margins over Q1/12 • Strengthen• $1.1 million in relationships with Sterilization – Other current customers and revenue due to enter into new and refurbishment work emerging markets performed on existing • Selectively grow production irradiators gamma sterilization sales over the long- term STRATEGY Maintain cash generation and selectively invest in growth. 7
  • 8. Specialty Isotopes: Medical Isotopes• $25.2 million revenues, • Maintain medical decreased 2.6% isotopes sales by working closely with 2013 OUTLOOK compared with Q1 Q1 RESULTS fiscal 2012 existing customers to bring additional value• Reactor isotopes revenue was $20.4 • Explore strategic million, a decrease of opportunities for $0.5 million or 3% over cyclotron based Q1/12 medical isotopes• Contract manufacturing • Assess opportunities revenues were up 6% to obtain reliable and over Q1/12 long-term supply of medical isotopes STRATEGY Optimize the value of the business. 8
  • 9. First Quarter Fiscal 2013 Earnings Conference Call Peter Dans Chief Financial OfficerMarch 6, 2013
  • 10. Q1 2013 Financial Performance Q1 Segmented Revenue (US$ millions) 60 50 16.1 16.4 40 CONSOLIDATED RESULTS 30 25.9 25.2 20 • Q1 revenue of $53.7 million; up 1% over 10 11.0 12.0 Q1/12 0 2012 2013 • GAAP net loss of $0.3 million Q1 Segmented Earnings* • Adjusted net income of $4.1 million down (US$ millions) 20 from $7.1 million over Q1/12 15 • Non-GAAP EPS decreased to $0.07 4.5 compared with $0.11 non-GAAP EPS in 10 3.5 7.7 Q1/12 5 6.9 • Gross margin percentages were 52% in 3.1 0 1.4 Q1/13 2012 2013 Targeted Sterilization Medical Therapies Technologies Isotopes*EXCLUDES CORPORATE SEGEMENTED LOSS 10
  • 11. Business SegmentsOVERVIEW & FINANCIALOUTLOOK – Targeted Therapies• Revenue grew 9% over Q1/12; segment earnings were down 54% due to higher spend in support of sales and marketing, and Phase III clinical trials• TheraSphere® revenue is expected to grow in the mid-teen percentage range in fiscal 2013• Phase III clinical trial spending is expected to be in the range of $6-8 million in fiscal 2013• Significant additional investments in fiscal 2013 to support TheraSphere® long-term global growth 11
  • 12. Business SegmentsOVERVIEW & FINANCIALOUTLOOK – Specialty Isotopes:Sterilization Technologies• Revenue increased by 2%• Segment earnings were down 21% due to lower Co-60 sales volumes• In fiscal 2013, Sterilization Technologies revenue is expected to be approximately the same as in fiscal 2012; Co-60 revenue is expected to be similar to fiscal 2012• Fiscal 2013 quarterly profile of Co-60 revenue is expected to be similar to fiscal 2012 12
  • 13. Business SegmentsOVERVIEW & FINANCIALOUTLOOK – SpecialtyIsotope: Medical Isotopes• Revenues of $25.2 million and earnings of $6.9 million in Q1 for Reactor, Cyclotron isotopes and contract manufacturing• Reactor isotopes revenue was $20.4 million, a decrease of 3% compared to Q1/12• Total Medical Isotopes revenue is expected to decline in the mid-teen range in fiscal 2013, compared to the original annual forecast of 20% 13
  • 14. First Quarter Fiscal 2013Earnings Conference Call March 6, 2013