LITTLE FALLS, N.J., March 9 /PRNewswire-FirstCall/ -- CANTEL
MEDICAL CORP. reported a 29% increase in net income to $4,876,000,
or $0.29 per diluted share, on a 6.7% increase in sales to
$66,587,000 for the second quarter ended January 31, 2010. This
compares with net income of $3,774,000, or $0.23 per diluted share,
on sales of $62,420,000 for the second quarter ended January 31,
2009. For the six months ended January 31, 2010, the Company
reported a 55% increase in net income to $11,044,000, or $0.65 per
diluted share, on an 8.5% increase in sales to $137,582,000. This
compares with net income of $7,107,000, or $0.43 per diluted share,
on sales of $126,826,000 for the six months ended January 31, 2009.
Andrew Krakauer, Cantel's President and CEO, stated, "We are very
pleased to have delivered another strong quarter of sales and
earnings growth. These positive results confirm the continued
success of our sales and marketing investments and various
initiatives to improve operating margins. Cantel continued to
benefit from growth of higher margin consumables and service
revenue." Krakauer added, "While all of our businesses performed
well, operating income in our Healthcare Disposables, Endoscope
Reprocessing and Water Purification and Filtration units was
substantially ahead of last year, aided by strong sales of
consumables, including disinfectants, sterilants and face masks.
Cantel's overall good performance was further supported by the
realization of price increases and reduced interest expenses. On an
additional favorable note, we also substantially increased sales of
capital equipment worldwide in our Endoscope Reprocessing segment.
The Healthcare Disposables business had higher than normal sales of
face masks in the early part of the quarter as we filled orders
generated during the novel H1N1 flu outbreak." The Company further
reported that its balance sheet at January 31, 2010 included
current assets of $90,018,000, including cash of $18,131,000, a
current ratio of 1.7:1, debt of $30,500,000 and stockholders'
equity of $199,900,000. Krakauer stated, "The Company has a strong
balance sheet and continues to generate significant cash. We have
reduced our net debt position during the first half of fiscal year
2010 by 38% to $12,369,000. EBITDAS for the quarter was
$11,890,000." 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 second quarter ended
January 31, 2010 on Tuesday, March 9, 2010 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, March 9 at 2:00 PM through midnight on
March 16, by dialing 1-877-660-6853 and using passcode #286 and
conference ID #346358. The call will be simultaneously broadcast
live over the Internet on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=156065. 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) (unaudited) Three Months Ended Six Months
Ended January 31, January 31, ----------- ----------- 2010 2009
2010 2009 ---- ---- ---- ---- Net sales $66,587 $62,420 $137,582
$126,826 Cost of sales 39,463 38,809 81,000 79,592 ------ ------
------ ------ Gross profit 27,124 23,611 56,582 47,234 Expenses:
Selling 8,711 6,992 17,235 14,342 General and administrative 9,272
9,037 18,577 18,061 Research and development 1,157 983 2,422 2,048
----- --- ----- ----- Total operating expenses 19,140 17,012 38,234
34,451 ------ ------ ------ ------ Income before interest and
income taxes 7,984 6,599 18,348 12,783 Interest expense 339 674 726
1,425 Interest income (8) (38) (16) (108) -- --- --- ---- Income
before income taxes 7,653 5,963 17,638 11,466 Income taxes 2,777
2,189 6,594 4,359 ----- ----- ----- ----- Net income $4,876 $3,774
$11,044 $7,107 ====== ====== ======= ====== Earnings per common
share - diluted $0.29 $0.23 $0.65 $0.43 ===== ===== ===== =====
Dividends per common share $0.05 $ - $0.05 $ - ===== === ===== ===
Weighted average shares - diluted 16,983 16,503 16,885 16,478
CANTEL MEDICAL CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) (unaudited) January 31, July 31, 2010 2009 ---- ----
Assets Current assets $90,018 $88,910 Property and equipment, net
35,679 35,968 Intangible assets, net 34,591 37,042 Goodwill 115,032
114,995 Other assets 1,259 956 ----- --- $276,579 $277,871 ========
======== Liabilities and stockholders' equity Current portion of
long-term debt $25,500 $10,000 Other current liabilities 27,572
29,113 Long-term debt 5,000 33,300 Other long-term liabilities
18,607 18,342 Stockholders' equity 199,900 187,116 ------- -------
$276,579 $277,871 ======== ======== 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 six
months ended January 31, 2010 and 2009, respectively, is as follows
(in thousands): Three Months Ended Six Months Ended January 31,
January 31, ----------- ----------- 2010 2009 2010 2009 ---- ----
---- ---- Net income $4,876 $3,774 $11,044 $7,107 Income taxes
2,777 2,189 6,594 4,359 Interest expense 339 674 726 1,425 Interest
income (8) (38) (16) (108) Depreciation 1,574 1,525 3,138 3,075
Amortization 1,294 1,268 2,572 2,606 Loss on disposal of fixed
assets 227 8 227 22 --- --- --- --- EBITDA 11,079 9,400 24,285
18,486 Stock-based compensation expense 811 525 1,600 1,045 --- ---
----- ----- EBITDAS $11,890 $9,925 $25,885 $19,531 ======= ======
======= ======= 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 & CEO of Cantel Medical
Corp.,+1-973-890-7220; or Richard E. Moyer, Cameron Associates,
Inc.,+1-212-554-5466, richard@cameronassoc.com Web Site:
http://www.cantelmedical.com/
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