LITTLE FALLS, N.J.,
March 9, 2011 /PRNewswire/ --
CANTEL MEDICAL CORP. (NYSE: CMN) reported a 17.3% increase
in net income to $5,720,000, or
$0.33 per diluted share, on a 21.7%
increase in sales to a record $81,021,000 for the second quarter ended
January 31, 2011. This compares with
net income of $4,876,000, or
$0.29 per diluted share, on sales of
$66,587,000 for the second quarter
ended January 31, 2010. For the six
months ended January 31, 2011, the
Company reported net income of $10,695,000, or $0.62 per diluted share, on an 11.2% increase in
sales to $153,014,000. This compares
with net income of $11,044,000, or
$0.65 per diluted share, on sales of
$137,582,000 for the six months ended
January 31, 2010.
Andrew Krakauer, Cantel's
President and CEO stated, "We are very pleased to have delivered
record sales and one of the strongest quarterly earnings in the
Company's history. These positive results confirm the continued
success of our three prong approach to growth which includes
investing in new product development, sales and marketing programs
and acquisitions. All of these strategies positively affected the
results this quarter."
Krakauer added, "As in the first quarter, our Endoscope
Reprocessing business had remarkable performance as sales increased
by nearly 70%, driven by shipments of our two newest reprocessors,
the Advantage® Plus and the DSD Edge, as well as disinfectants and
sterilants, parts and service. This accomplishment is a
result of successful new product development, the effectiveness and
quality of our sales and marketing teams, as well as improvements
in hospital spending worldwide. Our Water Purification and
Filtration segment had improved sales and operating income,
partially aided by the results from the acquisition of Gambro's
United States water business
completed in the first quarter. In our Healthcare Disposables
segment, we showed modest core growth after adjusting for last
year's unusual sales derived from H1N1 flu preparedness.
Furthermore, we acquired the sterilization monitoring business of
ConFirm Monitoring Systems, Inc. on February
11, which brings a new dimension to our Healthcare
Disposables product portfolio, adding sterilization monitoring
services to our broad offering."
The Company further reported that its balance sheet at
January 31, 2011 included current
assets of $100,985,000, including
cash of $16,075,000, a current ratio
of 1.6:1, debt of $27,500,000 and
stockholders' equity of $222,175,000.
Krakauer stated, "The Company has a strong balance sheet and
continues to generate significant cash flow and EBITDA. Our
net debt position has been reduced during the quarter by 33%, or
$5,621,000, to $11,425,000. EBITDAS for the quarter was
$12,850,000."
Cantel Medical Corp. (NYSE: CMN) is a leading provider of
infection prevention and control products in the healthcare market.
Our products include water purification equipment, sterilants,
disinfectants and cleaners, specialized medical device reprocessing
systems for endoscopy and renal dialysis, disposable infection
control products primarily for the dental industry, dialysate
concentrates and other dialysis supplies, 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,
2011 on Wednesday, March 9,
2011 at 11:00 AM Eastern Time.
To participate in the conference call, dial 1-877-407-8033
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 Wednesday, March 9,
2011 at 2:00 PM through
midnight on May 9, 2011 by dialing
1-877-660-6853 and using passcode #286 and conference ID
#368603.
The call will be simultaneously broadcast live over the Internet
on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=163652. A replay
of the webcast will be available on Vcall for 90 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.
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Financial Tables to Follow
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CANTEL
MEDICAL CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(In
thousands, except per share data)
(unaudited)
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Three Months
Ended
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Six Months
Ended
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January
31,
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January
31,
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2011
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2010
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2011
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2010
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Net sales
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$
81,021
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$
66,587
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$ 153,014
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$ 137,582
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Cost of sales
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49,629
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39,463
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93,430
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81,000
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Gross profit
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31,392
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27,124
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59,584
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56,582
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Expenses:
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Selling
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10,792
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8,711
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20,423
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17,235
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General and
administrative
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10,306
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9,272
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19,424
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18,577
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Research and
development
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1,435
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1,157
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3,064
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2,422
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Total operating
expenses
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22,533
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19,140
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42,911
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38,234
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Income before interest and
income taxes
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8,859
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7,984
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16,673
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18,348
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Interest expense
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262
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339
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503
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726
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Interest income
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(19)
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(8)
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(38)
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(16)
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Income before income
taxes
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8,616
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7,653
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16,208
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17,638
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Income taxes
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2,896
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2,777
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5,513
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6,594
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Net income
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$
5,720
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$
4,876
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$
10,695
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$
11,044
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Earnings per common share -
diluted
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$
0.33
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$
0.29
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$
0.62
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$
0.65
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Dividends per common
share
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$
-
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$
0.05
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$
0.06
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$
0.05
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Weighted average shares -
diluted
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17,341
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16,983
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17,168
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16,885
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CANTEL
MEDICAL CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
(unaudited)
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January
31,
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July
31,
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2011
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2010
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Assets
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Current
assets
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$
100,985
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$
94,731
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Property and
equipment, net
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35,242
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35,243
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Intangible assets,
net
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39,068
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32,717
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Goodwill
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128,765
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116,783
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Other
assets
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1,512
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1,191
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$
305,572
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$
280,665
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Liabilities and stockholders'
equity
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Current portion of
long-term debt
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$
27,500
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$
10,000
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Other current
liabilities
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36,426
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30,984
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Long-term
debt
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-
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11,000
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Other long-term
liabilities
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19,471
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19,276
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Stockholders'
equity
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222,175
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209,405
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$
305,572
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$
280,665
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SUPPLEMENTARY
INFORMATION
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Reconciliation of Earnings
Before Interest, Taxes, Depreciation, Amortization and
Stock-Based
Compensation Expense
("EBITDAS")
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The reconciliation of EBITDAS
with net income for the three and six months ended January 31, 2011
and 2010,
respectively, is as follows (in
thousands):
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Three Months Ended
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Six Months Ended
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January 31,
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January 31,
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2011
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2010
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2011
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2010
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Net income
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$
5,720
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$
4,876
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$ 10,695
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$ 11,044
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Income taxes
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2,896
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2,777
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5,513
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6,594
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Interest expense
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262
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339
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503
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726
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Interest income
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(19)
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(8)
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(38)
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(16)
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Depreciation
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1,666
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1,574
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3,294
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3,138
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Amortization
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1,406
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1,294
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2,725
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2,572
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(Gain) loss on disposal of fixed
assets
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2
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227
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(9)
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227
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EBITDA
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11,933
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11,079
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22,683
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24,285
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Stock-based compensation
expense
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917
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811
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1,682
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1,600
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EBITDAS
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$ 12,850
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$ 11,890
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$ 24,365
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$ 25,885
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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.
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SOURCE Cantel Medical Corp.