CMD Cantel Medical Corp

Criticare Systems, Inc. (AMEX:CMD) today released its fourth quarter and fiscal 2005 year end financial results. Fourth quarter net sales for fiscal 2005 of $8,020,894 were 20.3% higher as compared to $6,667,617 for the same quarter of 2004. Fourth quarter net income for fiscal 2005 was $371,268 or $0.03 per share compared with a $(1,708,659) net loss or $(0.15) per share for the same period of fiscal 2004. The increase in revenue was primarily due to the first full quarter of production and shipments of the MRI monitor to our OEM partner. The product has been well received and Criticare is continuing to manufacture and ship under a multi-year contract. For the full year, the Company had net sales of $26,781,627 and a net loss of $(422,245) in fiscal 2005 as compared to net sales of $28,591,481 and a net loss of $(2,100,573) in fiscal 2004. The reduction in sales for fiscal 2005 was the result of a combination of events including the loss of Alaris Medical as a long-time OEM partner due to its acquisition by Cardinal Health, the cancellation of three oral surgery shows in the southwest and a $366,140 backlog of domestic orders that did not ship at year end. The June 30, 2005 backlog was a record high at $9,788,682 compared to $742,183 for the same period of fiscal 2004. The current backlog consists of $8,052,614 relating to an extended delivery schedule of the MRI product, with the remainder being Criticare branded product. As of June 30, 2005, Criticare's balance sheet remains strong with no major changes from last year and a cash balance of $3,680,965 compared to a cash balance of $3,738,825 at June 30, 2003, no long term debt and an unused line of credit. There is a conference call scheduled for Wednesday, September 14, 2005 at 12 noon eastern standard time. It will be hosted by Malcolm McGuire of CCRI. The call in number is 800-481-9591 or 719-457-2731. The confirmation code is 1004635. In order to provide information to as many inquires as possible, the company asks that all questions be emailed prior to the call to Mr. McGuire at mmcguire17@cox.net. At the conference, Joel Knudson, VP-Finance, and Emil Soika, CEO, will present the company status and respond to questions. Criticare (www.csiusa.com) designs, manufactures, and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospitals and alternate health care environments throughout the world. This press release contains forward-looking statements. Such statements refer to the Company's beliefs and expectations. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described. Such risks and uncertainties include, but are not limited to, the timely completion of new products, regulatory approvals for new products, the risk of new and better technologies, risks relating to international markets, as well as general conditions and competition in the Company's markets. Criticare does not believe its backlog of any date is indicative of its future sales. Other risks are set forth in the Company's reports and documents filed from time to time with the Securities and Exchange Commission. -0- *T CRITICARE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED JUNE 30, 2005, 2004 AND 2003 2005 2004 2003 ------------------------------------ NET SALES (Notes 10 and 11) $26,781,627 $28,591,481 $28,562,943 COST OF GOODS SOLD 16,311,144 16,821,782 18,131,293 ------------------------------------ GROSS PROFIT 10,470,483 11,769,699 10,431,650 OPERATING EXPENSES: Sales and marketing (Note 1) 5,670,505 7,150,867 6,375,748 Research, development and engineering (Note 1) 2,620,134 2,532,129 2,736,877 Administrative (Note 9) 2,906,039 3,661,216 3,835,797 ------------------------------------ Total 11,196,678 13,344,212 12,948,422 LOSS FROM OPERATIONS (726,195) (1,574,513) (2,516,772) OTHER (EXPENSE) INCOME: Interest expense (Note 12) (28,848) (9,282) (91,533) Interest income 58,710 37,176 51,197 Foreign currency exchange gain (Note 1) 131,885 -- 82,403 Gain on sale of stock (Note 1) -- -- 1,290,252 Other income (expense) 142,203 (553,954) 245,857 ------------------------------------ Total 303,950 (526,060) 1,578,176 LOSS BEFORE INCOME TAXES (422,245) (2,100,573) (938,596) INCOME TAX PROVISION (Notes 1 and 5) -- -- -- ------------------------------------ NET LOSS $(422,245)$(2,100,573) $(938,596) ==================================== NET LOSS PER COMMON SHARE (Note 1): Basic and diluted $(0.04) $(0.19) $(0.08) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (Note 1): Basic and diluted 11,514,786 11,240,685 11,071,735 CRITICARE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2005 AND 2004 ASSETS (Note 6) 2005 2004 ------------------------ CURRENT ASSETS: Cash and cash equivalents $3,680,965 $3,738,825 Accounts receivable, net 6,847,432 6,489,885 Other receivables 645,479 359,806 Inventories 5,551,093 6,270,177 Prepaid expenses 255,104 364,375 ------------------------ Total current assets 16,980,073 17,223,067 Property, plant and equipment - net 2,010,417 2,242,288 OTHER ASSETS: License rights and patents - net 69,983 76,985 ------------------------ Total other assets 69,983 76,985 ------------------------ TOTAL ASSETS $19,060,473 $19,542,341 ======================== LIABILITIES AND STOCKHOLDERS' EQUITY 2005 2004 ------------------------ CURRENT LIABILITIES: Accounts payable $3,033,559 $3,237,406 Accrued liabilities 1,607,182 2,229,220 ------------------------ Total current liabilities 4,640,741 5,466,626 LONG-TERM LIABILITIES: Obligations under capital lease 202,031 264,770 Other long-term obligations 8,561 21,646 ------------------------ Total long-term liabilities 210,592 286,416 COMMITMENTS AND CONTINGENCIES TOTAL LIABILITIES 4,851,333 5,753,042 STOCKHOLDERS' EQUITY: Preferred stock - $.04 par value, 500,000 shares authorized, no shares issued or outstanding -- -- Common stock - $.04 par value, 15,000,000 shares authorized, 11,925,086 and 11,574,749 shares issued, and 11,812,493 and 11,450,021 outstanding, respectively 477,003 462,990 Additional paid-in capital 24,775,995 23,965,900 Common stock held in treasury (112,593 and 124,728 shares, respectively) (386,834) (409,439) Retained earnings (accumulated deficit) (10,648,912)(10,226,670) Cumulative translation adjustment (8,112) (3,482) ------------------------ Total stockholders' equity 14,209,140 13,789,299 ------------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $19,060,473 $19,542,341 ======================== *T