EPS of $0.53 vs. $0.50 for Year Ended July 31, 2008 LITTLE FALLS,
N.J., Oct. 7 /PRNewswire-FirstCall/ -- CANTEL MEDICAL CORP.
(NYSE:CMN) reported income from continuing operations of
$2,596,000, or $0.16 per diluted share, on sales of $64,281,000 for
the fourth quarter ended July 31, 2008, inclusive of approximately
$0.02 of expenses related to the closure of manufacturing
operations in Holland. This compares with income from continuing
operations of $1,899,000, or $0.12 per diluted share, on sales of
$62,513,000 for the fourth quarter ended July 31, 2007, inclusive
of approximately $0.02 of expenses related to executive transition
and acquisitions. For the fiscal year ended July 31, 2008, the
Company reported income from continuing operations of $8,693,000,
or $0.53 per diluted share, on a 14% increase in sales to
$249,374,000, inclusive of expenses of $0.05 related to the
resignation of the former President and the closure of
manufacturing operations in Holland. This compares with income from
continuing operations of $8,104,000, or $0.50 per diluted share, on
sales of $219,044,000 for the fiscal year ended July 31, 2007,
inclusive of $0.03 of expenses related to executive transition and
acquisitions. Andrew Krakauer, Cantel's President, stated, "We are
pleased to have delivered our strongest quarterly performance of
the past three years despite unprecedented cost increases impacting
most of our business units. Our success was aided by solid sales
growth in all businesses except for a decline in low margin
dialysate concentrate shipments in our Dialysis segment. During the
quarter, we achieved over 10% revenue growth exclusive of
Dialysis." Krakauer added, "The broad range of Cantel's businesses
within Infection Prevention and Control benefited our consolidated
results during the quarter. Continued improvement in our Endoscope
Reprocessing business, coupled with strong performances in our
Therapeutic Filtration and Specialty Packaging segments offset the
negative effect of cost increases in our other businesses.
Quarterly performance also improved due to ongoing cost reduction
programs, some one-time sales and a $0.02 favorable adjustment from
a recent reduction in tax rates." Krakauer continued, "In fiscal
2009 we anticipate benefiting from ongoing cost improvement
programs, our own price increases and reduced interest expense.
Most importantly, we expect success from new product introductions
and from our 2008 investments in sales and marketing." The Company
further reported that its balance sheet at July 31, 2008 included
current assets of $84,561,000, including cash of $18,318,000, a
current ratio of 2.2:1, debt of $58,300,000, stockholders' equity
of $168,712,000 and a ratio of funded debt to equity of .35:1.
Krakauer stated, "The Company has a strong balance sheet and
continues to generate significant cash. Our cash provided by
operating activities for the year was $18,557,000. We have reduced
our net debt position from the prior quarter by 10% to $40.0
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 fourth quarter ended July 31, 2008 on
Tuesday, October 7, 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
Tuesday, October 7 at 2:00 PM through midnight on October 8, by
dialing 1-877-660-6853 and using passcode # 286 and conference ID #
298923. The call will be simultaneously broadcast live over the
Internet on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=135448. A replay
of the webcast will be available on Vcall for 30 days. For further
information, visit the Cantel website at
http://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 Twelve Months Ended July
31, July 31, 2008 2007 2008 2007 Net sales $64,281 $62,513 $249,374
$219,044 Cost of sales 41,628 41,400 161,748 140,032 Gross profit
22,653 21,113 87,626 79,012 Expenses: Selling 7,821 6,421 28,636
23,818 General and administrative 9,166 9,381 37,013 33,507
Research and development 1,131 1,285 4,010 4,848 Total operating
expenses 18,118 17,087 69,659 62,173 Income from continuing
operations before interest and income taxes 4,535 4,026 17,967
16,839 Interest expense 969 1,127 4,631 3,508 Interest income (121)
(165) (515) (771) Income from continuing operations before income
taxes 3,687 3,064 13,851 14,102 Income taxes 1,091 1,165 5,158
5,998 Income from continuing operations 2,596 1,899 8,693 8,104
Income from discontinued operations, net of tax - 61 - 342 Net
income $2,596 $1,960 $8,693 $8,446 Earnings per common share -
diluted Continuing operations $0.16 $0.12 $0.53 $0.50 Discontinued
operations - - - 0.02 Net income $0.16 $0.12 $0.53 $0.52 Weighted
average shares - diluted 16,396 16,337 16,371 16,153 CANTEL MEDICAL
CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 31,
July 31, 2008 2007 Assets Current assets $84,561 $76,731 Property
and equipment, net 37,920 38,577 Intangible assets 41,254 44,615
Goodwill 113,958 102,073 Other assets 1,497 1,675 $279,190 $263,671
Liabilities and stockholders' equity Current portion of long-term
debt $8,000 $6,000 Other current liabilities 30,922 29,971
Long-term debt 50,300 51,000 Other long-term liabilities 21,256
21,630 Stockholders' equity 168,712 155,070 $279,190 $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 twelve months ended July 31, 2008 and
2007, respectively, is as follows (in thousands): Three Months
Twelve Months Ended Ended July 31, July 31, 2008 2007 2008 2007 Net
income $2,596 $1,960 $8,693 $8,446 Income from discontinued
operations, net of tax - (61) - (342) Income from continuing
operations 2,596 1,899 8,693 8,104 Income taxes 1,091 1,165 5,158
5,998 Interest expense 969 1,127 4,631 3,508 Interest income (121)
(165) (515) (771) Depreciation 1,568 1,494 6,058 5,347 Amortization
1,377 1,383 5,674 4,892 Loss on disposal of fixed assets 46 21 126
25 EBITDA 7,526 6,924 29,825 27,103 Stock-based compensation
expense 478 575 1,961 1,482 EBITDAS $8,004 $7,499 $31,786 $28,585
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, recent acquisitions have resulted in a significant
increase in amortization of intangible assets that reduced the
Company's net income during fiscal 2008 as compared with fiscal
2007. Additionally, the Company regards EBITDA as a useful measure
of operating performance and cash flow before the effect of
interest expense, which increase in interest expense in fiscal 2008
compared with fiscal 2007 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. DATASOURCE: Cantel Medical Corp. CONTACT:
Andrew A. Krakauer, President, Cantel Medical Corp.,
+1-973-890-7220, or Richard E. Moyer, Cameron Associates, Inc.,
+1-212-554-5466, Web site: http://www.cantelmedical.com/
http://www.investorcalendar.com/IC/CEPage.asp?ID=135448
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