CMD Cantel Medical Corp

CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems, Inc. today announced financial results for the fiscal 2006 year ended June 30, 2006 and the quarterly conference call details For the fiscal year ended June 30, 2006, the company had net sales of $31,350,919 and net income of $212,118 as compared to net sales of $26,781,627 and a net loss of $(422,245) in fiscal 2005. The revenue is the second largest in the company�s history and the net income is the first annual profit for the company in 11 years. Criticare�s businesses reflecting gains were Acute Care, OEM and International sales. Monitor placements in our Oral Surgery business also increased slightly but overall revenue declined primarily due to the company exiting the defibrillator market. Fourth quarter net sales for fiscal 2006 of $7,095,962 were 11.5% lower than the $8,020,894 in net sales for the same period of fiscal 2005, principally due to the strong introductory requirement for MR monitors in fiscal 2005. The company had a net loss of $(524,220) for the fourth quarter of fiscal 2006 that included a charge of $529,700 to reserve a portion of an international receivable. This compares to net income of $371,271 for the fourth quarter of fiscal 2005. Criticare will hold a quarterly conference call on Monday, October 2, 2006 at 10:00 am central daylight time to discuss the year end results of fiscal 2006. The call can be accessed by dialing 1-877-407-0782. CSI (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 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. Other risks are set forth in CSI�s reports and documents filed from time to time with the Securities and Exchange Commission. CRITICARE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED JUNE 30, 2006, 2005 AND 2004 � � 2006 2005 2004 � NET SALES $31,350,919� $26,781,627� $28,591,481� � COST OF GOODS SOLD 19,308,353� 16,311,144� 16,821,782� � GROSS PROFIT 12,042,566� 10,470,483� 11,769,699� � OPERATING EXPENSES: Sales and marketing 6,950,311� 5,670,505� 7,150,867� Research, development and engineering 2,362,512� 2,620,134� 2,532,129� Administrative 3,177,232� 2,906,039� 3,661,216� Total 12,490,055� 11,196,678� 13,344,212� � LOSS FROM OPERATIONS (447,489) (726,195) (1,574,513) � OTHER (EXPENSE) INCOME: Interest expense (19,820) (28,848) (9,282) Interest income 94,830� 58,710� 37,176� Foreign currency exchange gain (loss) (108,225) 131,885� --� Other income (expense) 692,822� 142,203� (553,954) Total 659,607� 303,950� (526,060) � INCOME (LOSS) BEFORE INCOME TAXES 212,118� (422,245) (2,100,573) � INCOME TAX PROVISION --� --� --� � NET INCOME (LOSS) $ 212,118� $ (422,245) $ (2,100,573) � NET INCOME (LOSS) PER COMMON SHARE: Basic and diluted $0.02� $(0.04) $(0.19) � WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 12,069,060� 11,514,786� 11,240,685� Diluted 12,256,431� 11,514,786� 11,240,685� CRITICARE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2006 AND 2005 � � ASSETS 2006 2005 � CURRENT ASSETS: Cash and cash equivalents $3,793,781� $3,680,965� Accounts receivable, less allowance for doubtful accounts of $829,700 and $300,000, respectively 6,187,351� 6,847,432� Other receivables 591,008� 645,479� Short term note receivable 50,000� --� Inventories 9,464,037� 5,551,093� Prepaid expenses 227,606� 255,104� Total current assets 20,313,783� 16,980,073� � PROPERTY, PLANT AND EQUIPMENT: Machinery and equipment 3,157,328� 2,800,269� Furniture and fixtures 952,193� 947,726� Leasehold improvements 243,604� 220,407� Demonstration and loaner monitors 1,997,844� 1,352,267� Production tooling 2,294,360� 2,009,809� Property, plant and equipment � cost 8,645,329� 7,330,478� Less accumulated depreciation 6,193,015� 5,320,061� Property, plant and equipment � net 2,452,314� 2,010,417� � OTHER ASSETS: License rights and patents � net 62,981� 69,983� Long term note receivable 150,000� --� Total other assets 212,981� 69,983� TOTAL ASSETS $22,979,078� $19,060,473� LIABILITIES AND STOCKHOLDERS' EQUITY 2006 2005 � CURRENT LIABILITIES: Accounts payable $5,408,746� $3,033,559� Accrued liabilities: Compensation and commissions 914,889� 900,636� Product warranties 425,000� 452,000� Obligations under capital lease 68,205� 62,739� Other 174,667� 191,807� Total current liabilities 6,991,507� 4,640,741� � LONG-TERM LIABILITIES: Obligations under capital lease 133,826� 202,031� Other long-term obligations 659� 8,561� Total long-term liabilities 134,485� 210,592� � COMMITMENTS AND CONTINGENCIES � TOTAL LIABILITIES 7,125,992� 4,851,333� � 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, 12,398,131 and 11,925,086 shares issued, and 12,291,454 and 11,812,493 outstanding, respectively 495,925� 477,003� Additional paid-in capital 26,156,864� 24,775,995� Common stock held in treasury (106,677 and 112,593 shares, respectively) (375,813) (386,834) � Retained earnings (accumulated deficit) (10,436,794) (10,648,912) Cumulative translation adjustment 12,904� (8,112) Total stockholders' equity 15,853,086� 14,209,140� TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY $22,979,078� $19,060,473� CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems, Inc. today announced financial results for the fiscal 2006 year ended June 30, 2006 and the quarterly conference call details For the fiscal year ended June 30, 2006, the company had net sales of $31,350,919 and net income of $212,118 as compared to net sales of $26,781,627 and a net loss of $(422,245) in fiscal 2005. The revenue is the second largest in the company's history and the net income is the first annual profit for the company in 11 years. Criticare's businesses reflecting gains were Acute Care, OEM and International sales. Monitor placements in our Oral Surgery business also increased slightly but overall revenue declined primarily due to the company exiting the defibrillator market. Fourth quarter net sales for fiscal 2006 of $7,095,962 were 11.5% lower than the $8,020,894 in net sales for the same period of fiscal 2005, principally due to the strong introductory requirement for MR monitors in fiscal 2005. The company had a net loss of $(524,220) for the fourth quarter of fiscal 2006 that included a charge of $529,700 to reserve a portion of an international receivable. This compares to net income of $371,271 for the fourth quarter of fiscal 2005. Criticare will hold a quarterly conference call on Monday, October 2, 2006 at 10:00 am central daylight time to discuss the year end results of fiscal 2006. The call can be accessed by dialing 1-877-407-0782. CSI (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 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. Other risks are set forth in CSI'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, 2006, 2005 AND 2004 2006 2005 2004 ------------ ------------ ------------ NET SALES $31,350,919 $26,781,627 $28,591,481 COST OF GOODS SOLD 19,308,353 16,311,144 16,821,782 ------------ ------------ ------------ GROSS PROFIT 12,042,566 10,470,483 11,769,699 OPERATING EXPENSES: Sales and marketing 6,950,311 5,670,505 7,150,867 Research, development and engineering 2,362,512 2,620,134 2,532,129 Administrative 3,177,232 2,906,039 3,661,216 ------------ ------------ ------------ Total 12,490,055 11,196,678 13,344,212 LOSS FROM OPERATIONS (447,489) (726,195) (1,574,513) OTHER (EXPENSE) INCOME: Interest expense (19,820) (28,848) (9,282) Interest income 94,830 58,710 37,176 Foreign currency exchange gain (loss) (108,225) 131,885 -- Other income (expense) 692,822 142,203 (553,954) ------------ ------------ ------------ Total 659,607 303,950 (526,060) INCOME (LOSS) BEFORE INCOME TAXES 212,118 (422,245) (2,100,573) INCOME TAX PROVISION -- -- -- ------------ ------------ ------------ NET INCOME (LOSS) $212,118 $(422,245) $(2,100,573) ============ ============ ============ NET INCOME (LOSS) PER COMMON SHARE: Basic and diluted $0.02 $(0.04) $(0.19) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 12,069,060 11,514,786 11,240,685 Diluted 12,256,431 11,514,786 11,240,685 *T -0- *T CRITICARE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2006 AND 2005 ASSETS 2006 2005 ------------ ------------ CURRENT ASSETS: Cash and cash equivalents $3,793,781 $3,680,965 Accounts receivable, less allowance for doubtful accounts of $829,700 and $300,000, respectively 6,187,351 6,847,432 Other receivables 591,008 645,479 Short term note receivable 50,000 -- Inventories 9,464,037 5,551,093 Prepaid expenses 227,606 255,104 ------------ ------------ Total current assets 20,313,783 16,980,073 PROPERTY, PLANT AND EQUIPMENT: Machinery and equipment 3,157,328 2,800,269 Furniture and fixtures 952,193 947,726 Leasehold improvements 243,604 220,407 Demonstration and loaner monitors 1,997,844 1,352,267 Production tooling 2,294,360 2,009,809 ------------ ------------ Property, plant and equipment - cost 8,645,329 7,330,478 Less accumulated depreciation 6,193,015 5,320,061 ------------ ------------ Property, plant and equipment - net 2,452,314 2,010,417 OTHER ASSETS: License rights and patents - net 62,981 69,983 Long term note receivable 150,000 -- ------------ ------------ Total other assets 212,981 69,983 ------------ ------------ TOTAL ASSETS $22,979,078 $19,060,473 ============ ============ *T -0- *T LIABILITIES AND STOCKHOLDERS' EQUITY 2006 2005 ------------ ------------ CURRENT LIABILITIES: Accounts payable $5,408,746 $3,033,559 Accrued liabilities: Compensation and commissions 914,889 900,636 Product warranties 425,000 452,000 Obligations under capital lease 68,205 62,739 Other 174,667 191,807 ------------ ------------ Total current liabilities 6,991,507 4,640,741 LONG-TERM LIABILITIES: Obligations under capital lease 133,826 202,031 Other long-term obligations 659 8,561 ------------ ------------ Total long-term liabilities 134,485 210,592 COMMITMENTS AND CONTINGENCIES TOTAL LIABILITIES 7,125,992 4,851,333 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, 12,398,131 and 11,925,086 shares issued, and 12,291,454 and 11,812,493 outstanding, respectively 495,925 477,003 Additional paid-in capital 26,156,864 24,775,995 Common stock held in treasury (106,677 and 112,593 shares, respectively) (375,813) (386,834) Retained earnings (accumulated deficit) (10,436,794) (10,648,912) Cumulative translation adjustment 12,904 (8,112) ------------ ------------ Total stockholders' equity 15,853,086 14,209,140 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,979,078 $19,060,473 ============ ============ *T