LITTLE FALLS, N.J.,
June 8, 2011 /PRNewswire/ --
CANTEL MEDICAL CORP. (NYSE: CMN) reported an 18% increase in
net income to $5,048,000, or
$0.29 per diluted share, on a 24%
increase in sales to a record $82,619,000 for the third quarter ended
April 30, 2011. This compares with
net income of $4,274,000, or
$0.25 per diluted share, on sales of
$66,559,000 for the third quarter
ended April 30, 2010. For the
nine months ended April 30, 2011, the
Company reported net income of $15,743,000, or $0.91 per diluted share, on a 15% increase in
sales to $235,633,000. This compares
with net income of $15,318,000, or
$0.90 per diluted share, on sales of
$204,141,000 for the nine months
ended April 30, 2010.
Andrew Krakauer, Cantel's
President and CEO stated, "We are pleased to have delivered record
sales and another quarter of improved earnings. It is positive to
see sales increases in our three major business segments --
Endoscope Reprocessing, Water Purification and Filtration, and
Healthcare Disposables -- all with significant core growth. These
solid 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."
Krakauer added, "As in the first half of this fiscal year, our
Endoscope Reprocessing business had remarkable performance in the
quarter as sales increased by 67%, 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. Acquisition
related integration and startup costs negatively affected operating
income in the quarter in both our Water Purification and
Filtration, and Healthcare Disposables segments. However, we are
optimistic that this year's acquisitions of Gambro's United States water business and the
sterilization monitoring business of ConFirm Monitoring will be
significantly accretive to Cantel earnings beginning in Fiscal
2012."
The Company further reported that its balance sheet at
April 30, 2011 included current
assets of $106,241,000, including
cash of $16,039,000, a current ratio
of 1.5:1, debt of $30,000,000 and
stockholders' equity of $229,557,000.
Krakauer stated, "The Company has a strong balance sheet and
continues to generate significant cash flow and EBITDAS. Our
net debt position of $13,961,000
increased by only $2.5 million during
the quarter, despite funding $7.5
million for the acquisition of ConFirm Monitoring. EBITDAS
for the quarter and nine months ended April
30, 2011 was $11,725,000 and
$36,090,000, respectively."
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 third quarter ended April 30,
2011 on Wednesday, June 8,
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 June 8, 2011 at
2:00 PM through midnight on
August 8, 2011 by dialing
1-877-660-6853 and using passcode #286 and conference ID
#373584.
The call will be simultaneously broadcast live over the Internet
on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=164699. 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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CANTEL
MEDICAL CORP.
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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(In
thousands, except per share data)
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|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
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Nine Months
Ended
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April
30,
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April
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
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|
Net sales
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$
82,619
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|
$
66,559
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|
$ 235,633
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|
$ 204,141
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
51,317
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|
39,866
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|
144,747
|
|
120,866
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
31,302
|
|
26,693
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|
90,886
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83,275
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|
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Expenses:
|
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|
|
|
|
|
|
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Selling
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11,505
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9,348
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|
31,928
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|
26,583
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|
General and
administrative
|
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10,439
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9,149
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|
29,863
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27,726
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Research and
development
|
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1,715
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|
1,342
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|
4,779
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|
3,764
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|
Total operating
expenses
|
|
23,659
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19,839
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|
66,570
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58,073
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|
|
|
|
|
|
|
|
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Income before interest and
income taxes
|
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7,643
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|
6,854
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24,316
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25,202
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|
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|
|
|
|
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Interest expense
|
|
195
|
|
233
|
|
698
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|
959
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Interest income
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(24)
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|
(19)
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|
(62)
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|
(35)
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Income before income
taxes
|
|
7,472
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|
6,640
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|
23,680
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|
24,278
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|
|
|
|
|
|
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Income taxes
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|
2,424
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|
2,366
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|
7,937
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|
8,960
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Net income
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$
5,048
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$
4,274
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$
15,743
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$
15,318
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Earnings per common share -
diluted
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$
0.29
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$
0.25
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$
0.91
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$
0.90
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Dividends per common
share
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|
$
-
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|
$
-
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|
$
0.06
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|
$
0.05
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|
|
|
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|
|
|
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Weighted average shares -
diluted
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17,414
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|
17,052
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|
17,267
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|
16,948
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|
|
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CANTEL
MEDICAL CORP.
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(In
thousands)
|
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(unaudited)
|
|
|
|
|
|
|
|
|
|
|
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April
30,
|
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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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|
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|
Current
assets
|
|
$
106,241
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|
$
94,731
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Property and
equipment, net
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35,097
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|
35,243
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Intangible assets,
net
|
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40,681
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|
32,717
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|
Goodwill
|
|
134,702
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|
116,783
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Other
assets
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1,482
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|
1,191
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|
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|
$
318,203
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$
280,665
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|
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Liabilities and stockholders'
equity
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|
Current portion of
long-term debt
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|
$
30,000
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|
$
10,000
|
|
Other current
liabilities
|
|
39,401
|
|
30,984
|
|
Long-term
debt
|
|
-
|
|
11,000
|
|
Other long-term
liabilities
|
|
19,245
|
|
19,276
|
|
Stockholders'
equity
|
|
229,557
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|
209,405
|
|
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|
$
318,203
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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
|
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Compensation Expense
("EBITDAS")
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The reconciliation of EBITDAS
with net income for the three and nine months ended April 30, 2011
and 2010,
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respectively, is as follows (in
thousands):
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|
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Three Months
Ended
|
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Nine Months
Ended
|
|
|
|
April
30,
|
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April
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
5,048
|
|
$
4,274
|
|
$ 15,743
|
|
$ 15,318
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
2,424
|
|
2,366
|
|
7,937
|
|
8,960
|
|
Interest expense
|
|
195
|
|
233
|
|
698
|
|
959
|
|
Interest income
|
|
(24)
|
|
(19)
|
|
(62)
|
|
(35)
|
|
Depreciation
|
|
1,745
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|
1,583
|
|
5,039
|
|
4,721
|
|
Amortization
|
|
1,465
|
|
1,270
|
|
4,190
|
|
3,842
|
|
(Gain) loss on disposal of fixed
assets
|
|
1
|
|
(3)
|
|
(8)
|
|
224
|
|
|
|
|
|
|
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EBITDA
|
|
10,854
|
|
9,704
|
|
33,537
|
|
33,989
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|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
expense
|
|
871
|
|
670
|
|
2,553
|
|
2,270
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAS
|
|
$ 11,725
|
|
$ 10,374
|
|
$ 36,090
|
|
$ 36,259
|
|
|
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EBITDAS is a measure of the
Company's performance that is not required by, or presented in
accordance with,
|
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Generally Accepted Accounting
Principles ("GAAP"). EBITDAS is a non-GAAP financial measure
defined by the
|
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Company as income before
interest, taxes, depreciation, amortization and stock-based
compensation expense.
|
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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.
|
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Additionally, the Company
regards EBITDAS as a useful measure of operating performance and
cash flow before
|
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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.
|
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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.