CANTEL MEDICAL CORP. (NYSE:CMN) reported income from continuing
operations of $2,001,000, or $0.12 per diluted share, on an 18%
increase in sales to $64,178,000 for the third quarter ended April
30, 2008. The results for the third quarter included costs of
approximately $720,000, or $0.03 per diluted share, related to the
resignation of the former President. This compares with income from
continuing operations of $2,230,000, or $0.14 per diluted share, on
sales of $54,412,000 for the third quarter ended April 30, 2007.
For the nine months ended April 30, 2008, the Company reported
income from continuing operations of $6,097,000, or $0.37 per
diluted share (including costs of $0.03 related to the resignation
of the former President), on an 18% increase in sales to
$185,093,000. This compares with income from continuing operations
of $6,205,000, or $0.39 per diluted share, on sales of $156,531,000
for the nine months ended April 30, 2007. According to Andrew
Krakauer, Cantel�s President, �We were pleased with our revenue
growth in the third quarter, as well as in the first nine months of
2008. Excluding costs related to the resignation of our former
President, Cantel�s earnings performance for the third quarter was
one of the best in the past three years. We had a strong
performance in the renal business and significantly improved
results in the endoscope reprocessing segment. In our healthcare
disposables and water purification segments, despite increases in
sales, operating income in the third quarter declined due to a
number of factors including sales and marketing investments and
lower gross margins due to increased raw material and other costs.
We are addressing gross margin issues throughout Cantel with
several programs including initiation of price increases. In
addition, we are optimistic as we go forward that Cantel will
realize the benefits of ongoing efforts to reduce operating and
overhead costs, as well as lower interest costs.� The Company
further reported that its balance sheet at April 30, 2008 included
current assets of $87,304,000, including cash of $19,310,000, a
current ratio of 2.55:1, a ratio of funded debt to equity of .38:1,
debt of $63,800,000 and stockholders� equity of $166,775,000.
Krakauer added, �Cantel continues to be a strong cash generator and
during the third quarter the Company reduced its net debt position
by 15% or over $8 million.� Cantel Medical Corp. is a leading
provider of infection prevention and control products in the
healthcare market. Our products include specialized medical device
reprocessing systems for renal dialysis and endoscopy, dialysate
concentrates and other dialysis supplies, disposable infection
control products primarily for the dental industry, water
purification equipment, sterilants, disinfectants and cleaners,
hollow fiber membrane filtration and separation products for
medical and non-medical applications, and specialty packaging for
infectious and biological specimens. We also provide technical
maintenance for our products and offer compliance training services
for the transport of infectious and biological specimens. The
Company will hold a conference call to discuss the results for the
third quarter ended April 30, 2008 on Thursday, June 5, 2008 at
11:00 AM Eastern time. To participate in the conference call, dial
1-877-407-8035 approximately 5 to 10 minutes before the beginning
of the call. If you are unable to participate, a digital replay of
the call will be available from Thursday, June 5 at 2:00 PM through
midnight on June 6, by dialing 1-877-660-6853 and using passcode
#286 and conference ID #287083. The call will be simultaneously
broadcast live over the Internet on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=130277. A replay
of the webcast will be available on Vcall for 30 days. For further
information, visit the Cantel website at www.cantelmedical.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks and uncertainties,
including, without limitation, the risks detailed in Cantel's
filings and reports with the Securities and Exchange Commission.
Such forward-looking statements are only predictions, and actual
events or results may differ materially from those projected or
anticipated. CANTEL MEDICAL CORP.CONDENSED CONSOLIDATED STATEMENTS
OF INCOME(In thousands, except per share data) � � � � � Three
Months Ended Nine Months Ended April 30, April 30, 2008 2007 2008
2007 � Net sales $ 64,178 $ 54,412 $ 185,093 $ 156,531 � Cost of
sales � 41,897 � � 34,203 � � 120,120 � � 98,632 � � Gross profit
22,281 20,209 64,973 57,899 � Expenses: Selling 7,190 5,958 20,815
17,397 General and administrative 9,923 8,530 27,847 24,126
Research and development � 928 � � 1,175 � � 2,879 � � 3,563 �
Total operating expenses � 18,041 � � 15,663 � � 51,541 � � 45,086
� � � Income from continuing operations before interest and income
taxes 4,240 4,546 13,432 12,813 � Interest expense 1,185 859 3,662
2,381 Interest income � (97 ) � (156 ) � (394 ) � (606 ) � Income
from continuing operations before income taxes 3,152 3,843 10,164
11,038 � Income taxes � 1,151 � � 1,613 � � 4,067 � � 4,833 � �
Income from continuing operations 2,001 2,230 6,097 6,205 � Income
from discontinued operations, net of tax � - � � 18 � � - � � 281 �
� Net income $ 2,001 � $ 2,248 � $ 6,097 � $ 6,486 � � Earnings per
common share - diluted Continuing operations $ 0.12 $ 0.14 $ 0.37 $
0.39 Discontinued operations � - � � - � � - � � 0.01 � Net income
$ 0.12 � $ 0.14 � $ 0.37 � $ 0.40 � � Weighted average shares -
diluted 16,349 16,195 16,355 16,064 CANTEL MEDICAL CORP. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands) � � � � April 30, July
31, 2008 2007 Assets Current assets $ 87,304 $ 76,731 Property and
equipment, net 38,089 38,577 Intangible assets 43,627 44,615
Goodwill 109,485 102,073 Other assets � 1,470 � 1,675 $ 279,975 $
263,671 � Liabilities and stockholders' equity Current portion of
long-term debt $ 7,500 $ 6,000 Other current liabilities 26,783
29,971 Long-term debt 56,300 51,000 Other long-term liabilities
22,617 21,630 Stockholders' equity � 166,775 � 155,070 $ 279,975 $
263,671 SUPPLEMENTARY INFORMATION � � � � � Reconciliation of
Earnings Before Interest, Taxes, Depreciation, Amortization and
Stock-Based Compensation Expense ("EBITDAS") � The reconciliation
of EBITDAS with net income for the three and nine months ended
April 30, 2008 and 2007, respectively, is as follows (in
thousands): � Three Months Ended Nine Months Ended April 30, April
30, 2008 2007 2008 2007 � � Net income $ 2,001 $ 2,248 $ 6,097 $
6,486 Income from discontinued operations, net of tax � - � � (18 )
� - � � (281 ) � Income from continuing operations 2,001 2,230
6,097 6,205 � Income taxes 1,151 1,613 4,067 4,833 Interest expense
1,185 859 3,662 2,381 Interest income (97 ) (156 ) (394 ) (606 )
Depreciation 1,515 1,336 4,490 3,853 Amortization 1,438 1,210 4,297
3,509 Loss (gain) on disposal of fixed assets � 31 � � (5 ) � 80 �
� 4 � � EBITDA 7,224 7,087 22,299 20,179 � Stock-based compensation
expense � 489 � � 492 � � 1,483 � � 907 � � EBITDAS $ 7,713 � $
7,579 � $ 23,782 � $ 21,086 � � � � EBITDAS is a measure of the
Company's performance that is not required by, or presented in
accordance with, Generally Accepted Accounting Principles ("GAAP").
EBITDAS is a non-GAAP financial measure defined by the Company as
income from continuing operations before interest, taxes,
depreciation, amortization and stock-based compensation expense.
The Company believes EBITDAS is an important valuation measurement
for management and investors given the increasing effect that
non-cash charges such as stock-based compensation, amortization
related to acquisitions and depreciation of capital equipment has
on the Company's net income. In particular, the acquisitions
completed during our fiscal 2007 and the three months ended October
31, 2007 has resulted in a significant increase in amortization of
intangible assets that reduced the Company's net income during the
three and nine months ended April 30, 2008, as compared with the
three and nine months ended April 30, 2007. Additionally, the
Company regards EBITDAS as a useful measure of operating
performance and cash flow before the effect of interest expense,
which increase in interest expense for the periods presented
primarily related to borrowings for recent acquisitions, and
complements operating income, net income and other GAAP financial
performance measures. Generally, a non-GAAP financial measure is a
numerical measure of a Company's performance, financial position or
cash flow that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP. This
measure, however, should be considered in addition to, and not as a
substitute or superior to, net income, cash flows, or other
measures of financial performance prepared in accordance with GAAP.
Cantel Medical (NYSE:CMD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cantel Medical (NYSE:CMD)
Historical Stock Chart
From Jul 2023 to Jul 2024