LITTLE FALLS, N.J., June 4 /PRNewswire-FirstCall/ -- CANTEL MEDICAL
CORP. (NYSE:CMN) reported a 109% increase in net income to
$4,183,000, or $0.25 per diluted share, on a 3.5% increase in sales
to a record $66,431,000 for the third quarter ended April 30, 2009.
This compares with net income of $2,001,000, or $0.12 per diluted
share (including costs of $0.03 related to the resignation of our
former President), on sales of $64,178,000 for the third quarter
ended April 30, 2008. For the nine months ended April 30, 2009, the
Company reported an 85% increase in net income to $11,290,000, or
$0.69 per diluted share (inclusive of $0.02 of expenses related to
the relocation of its Dutch manufacturing operations to the United
States), on a 4.4% increase in sales to $193,257,000. This compares
with net income of $6,097,000, or $0.37 per diluted share
(including costs of $0.03 related to the resignation of our former
President), on sales of $185,093,000 for the nine months ended
April 30, 2008. Andrew Krakauer, Cantel's President and CEO stated,
"We are very pleased to have delivered another quarter of
substantial earnings growth and our strongest quarterly performance
of the past few years despite the worldwide economic slowdown.
Cantel demonstrated sales growth in all reporting segments except
for an expected decline in lower margin dialysate concentrate
shipments in our Dialysis segment." Krakauer added, "While all our
businesses performed well, operating income in our Endoscope
Reprocessing, Dialysis, and Water Purification and Filtration units
was substantially ahead of last year, aided by strong sales of
consumables, including disinfectants, sterilants and an increase in
service revenue. Additionally, the positive performance was helped
by our active cost reduction and margin improvement programs, the
effectiveness of price increases and reduced interest expenses."
Krakauer continued, "Although our businesses are not immune to the
economic downturn, we remain focused on our strategies to grow and
improve performance. In this economy, our competitive advantage is
our leadership positions in several infection prevention and
control markets, a quality reputation and strong brands. Further,
we have proactively developed our business to where approximately
75% of our sales come from disposables and service, which are
supported by a large installed base of equipment." The Company
further reported that its balance sheet at April 30, 2009 included
current assets of $86,844,000, including cash of $22,328,000, a
current ratio of 2.4:1, debt of $49,300,000, stockholders' equity
of $177,862,000 and a ratio of funded debt to equity of .28:1.
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 $8,085,000. We have
reduced our net debt position from the second quarter by 21% to $27
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, 2009 on
Thursday, June 4, 2009 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 4, 2009 at 2:00 PM through midnight on June 11, by
dialing 1-877-660-6853 and using passcode #286 and conference ID
#324315. The call will be simultaneously broadcast live over the
Internet on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=145679. 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 Nine Months Ended April
30, April 30, ------------------ ----------------- 2009 2008 2009
2008 ---- ---- ---- ---- Net sales $66,431 $64,178 $193,257
$185,093 Cost of sales 40,908 41,897 120,500 120,120 ------ ------
------- ------- Gross profit 25,523 22,281 72,757 64,973 Expenses:
Selling 7,984 7,190 22,326 20,815 General and administrative 9,106
9,923 27,167 27,847 Research and development 1,261 928 3,309 2,879
----- --- ----- ----- Total operating expenses 18,351 18,041 52,802
51,541 ------ ------ ------ ------ Income before interest and
income taxes 7,172 4,240 19,955 13,432 Interest expense 588 1,185
2,013 3,662 Interest income (24) (97) (132) (394) --- --- ---- ----
Income before income taxes 6,608 3,152 18,074 10,164 Income taxes
2,425 1,151 6,784 4,067 ----- ----- ----- ----- Net income $4,183
$2,001 $11,290 $6,097 ====== ====== ======= ====== Earnings per
common share - diluted $0.25 $0.12 $0.69 $0.37 ===== ===== =====
===== Weighted average shares - diluted 16,544 16,349 16,434 16,355
CANTEL MEDICAL CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) April 30, July 31, 2009 2008 ---- ---- Assets Current
assets $86,844 $84,561 Property and equipment, net 35,685 37,920
Intangible assets 36,824 41,254 Goodwill 112,187 113,958 Other
assets 1,062 1,497 ----- ----- $272,602 $279,190 ======== ========
Liabilities and stockholders' equity Current portion of long-term
debt $9,500 $8,000 Other current liabilities 26,821 30,922
Long-term debt 39,800 50,300 Other long-term liabilities 18,619
21,256 Stockholders' equity 177,862 168,712 ------- -------
$272,602 $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 and nine
months ended April 30, 2009 and 2008, respectively, is as follows
(in thousands): Three Months Ended Nine Months Ended April 30,
April 30, ------------------ ----------------- 2009 2008 2009 2008
---- ---- ---- ---- Net income $4,183 $2,001 $11,290 $6,097 Income
taxes 2,425 1,151 6,784 4,067 Interest expense 588 1,185 2,013
3,662 Interest income (24) (97) (132) (394) Depreciation 1,562
1,515 4,637 4,490 Amortization 1,264 1,438 3,870 4,297 Loss on
disposal of fixed assets - 31 22 80 --- --- --- --- EBITDA 9,998
7,224 28,484 22,299 Stock-based compensation expense 784 489 1,829
1,483 --- --- ----- ----- EBITDAS $10,782 $7,713 $30,313 $23,782
======= ====== ======= ======= 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 and CEO, Cantel Medical
Corp., +1-973-890-7220; or Richard E. Moyer, Cameron Associates,
Inc., , +1-212-554-5466 Web Site: http://www.cantelmedical.com/
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