LITTLE FALLS, N.J., Dec. 5 /PRNewswire-FirstCall/ -- CANTEL MEDICAL
CORP. (NYSE:CMN) reported net income of $3,333,000, or $0.20 per
diluted share, on a 7% increase in sales to $64,406,000 for the
first quarter ended October 31, 2008, inclusive of $0.02 of
expenses related to the relocation of our Dutch manufacturing
operations to the United States. This compares with net income of
$1,939,000, or $0.12 per diluted share, on sales of $60,005,000 for
the first quarter ended October 31, 2007, inclusive of $0.01 of
expenses attributable to acquisitions and severance costs related
to reducing manufacturing operations in Holland. Andrew Krakauer,
Cantel's President, stated "We are very pleased to have delivered
by far our strongest quarterly performance of the past few years.
These superior results attest to the success of our sales and
marketing investments and various programs to improve operating
margins. Cantel had solid sales growth in all reporting segments
except for an expected decline in low margin dialysate concentrate
shipments in our Dialysis segment. During the quarter, we achieved
almost 13% revenue growth exclusive of Dialysis." Krakauer added,
"While all businesses performed well, our Endoscope Reprocessing
and Water Purification and Filtration units were significantly
ahead of last year, aided by strong sales of higher margin
consumables including disinfectants, sterilants and filters. We
also benefited from our active cost reduction and margin
improvement programs, the implementation of price increases and
reduced interest expenses." Krakauer continued, "Despite economic
uncertainties, we remain focused on our strategies to grow and
improve performance. We believe our leadership positions in several
infection prevention and control markets, coupled with the fact
that over 70% of our sales come from disposables and service, will
continue to benefit us despite difficult economic conditions. We
are proactively taking steps to address challenges related to the
weakening economy." The Company further reported that its balance
sheet at October 31, 2008 included current assets of $81,736,000,
including cash of $15,735,000, a current ratio of 2.4:1, debt of
$57,300,000, stockholders' equity of $167,838,000 and a ratio of
funded debt to equity of .34:1. Krakauer stated, "The Company has a
strong balance sheet and continues to generate significant cash.
Our cash provided by operating activities for the quarter was
$5,407,000. We have reduced our net debt position from the same
quarter last year by 21% to $41.6 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
first quarter ended October 31, 2008 on Friday, December 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 Friday, December 5 at 2:00 PM
through midnight on December 6, by dialing 1-877-660-6853 and using
passcode #286 and conference ID #305374. The call will be
simultaneously broadcast live over the Internet on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=138525. 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 October 31, -----------
2008 2007 ---- ---- Net sales $64,406 $60,005 Cost of sales 40,783
38,799 ------ ------ Gross profit 23,623 21,206 Expenses: Selling
7,350 6,789 General and administrative 9,024 8,957 Research and
development 1,065 990 ----- --- Total operating expenses 17,439
16,736 ------ ------ Income before interest and income taxes 6,184
4,470 Interest expense 751 1,222 Interest income (70) (147) ---
---- Income before income taxes 5,503 3,395 Income taxes 2,170
1,456 ----- ----- Net income $3,333 $1,939 ====== ====== Earnings
per common share - diluted $0.20 $0.12 ===== ===== Weighted average
shares - diluted 16,349 16,331 CANTEL MEDICAL CORP. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands) October 31, July 31,
2008 2008 ---- ---- Assets Current assets $81,736 $84,561 Property
and equipment, net 37,139 37,920 Intangible assets 39,347 41,254
Goodwill 112,173 113,958 Other assets 1,290 1,497 ----- -----
$271,685 $279,190 ======== ======== Liabilities and stockholders'
equity Current portion of long-term debt $8,500 $8,000 Other
current liabilities 26,248 30,922 Long-term debt 48,800 50,300
Other long-term liabilities 20,299 21,256 Stockholders' equity
167,838 168,712 ------- ------- $271,685 $279,190 ======== ========
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 months ended October 31, 2008 and 2007,
respectively, is as follows (in thousands): Three Months Ended
October 31, ----------- 2008 2007 ---- ---- Net income $3,333
$1,939 Income taxes 2,170 1,456 Interest expense 751 1,222 Interest
income (70) (147) Depreciation 1,550 1,445 Amortization 1,338 1,399
Loss on disposal of fixed assets 14 - -- - EBITDA 9,086 7,314
Stock-based compensation expense 520 532 --- --- EBITDAS $9,606
$7,846 ====== ====== 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
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, acquisitions have historically resulted in significant
increases in amortization of intangible assets that reduced the
Company's net income. Additionally, the Company regards EBITDAS as
a useful measure of operating performance and cash flow before the
effect of interest expense 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 of Cantel Medical Corp.,
+1-973-890-7220; or Richard E. Moyer of Cameron Associates, Inc.
for Cantel Medical Corp., +1-212-554-5466, Web Site:
http://www.cantelmedical.com/
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