LITTLE FALLS, N.J.,
Oct. 13, 2011 /PRNewswire/ --
CANTEL MEDICAL CORP. (NYSE: CMN) reported a 1% increase in
net income to $4,682,000, or
$0.27 per diluted share, on a 23%
increase in sales to a record $86,018,000 for the fourth quarter ended
July 31, 2011, inclusive of
approximately $0.02 of expenses
related to acquisitions. This compares with net income of
$4,623,000, or $0.27 per diluted share, on sales of $69,811,000 for the fourth quarter ended
July 31, 2010.
For the fiscal year ended July 31,
2011, the Company reported net income of $20,425,000, or $1.18 per diluted share, on a 17% increase in
sales to $321,651,000, inclusive of
approximately $0.04 of expenses
related to acquisitions. This compares with net income of
$19,941,000, or $1.18 per diluted share, on sales of $273,952,000 for the fiscal year ended
July 31, 2010.
Andrew Krakauer, Cantel's
President and CEO stated, "We are pleased to have delivered record
sales and another quarter of improved earnings, excluding
acquisition related expenses. We continued to achieve good
core sales growth in our three major business segments -- Endoscope
Reprocessing, Water Purification and Filtration, and Healthcare
Disposables. Sales increases due to acquisitions further benefited
the Water Purification and Healthcare Disposable segments this
quarter. Our positive results confirm the continued success of our
three-prong strategy for growth which includes investing in new
product development, sales and marketing programs and
acquisitions.
Our Endoscope Reprocessing business continued its excellent
performance with a sales increase of 53% in the quarter, driven by
shipments of our two newest reprocessors, the Advantage® Plus and
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, and our overall ability to capitalize on several
market opportunities."
Krakauer continued, "We were excited to have announced the
acquisition of Byrne Medical on August
1, which was the largest transaction in the Company's
history. In purchasing Byrne Medical, Cantel has greatly expanded
its hospital and outpatient center-based GI endoscopy business,
which includes our market leading Medivators® post-procedure
cleaning business. With this acquisition, the company has entered
into the market for infection prevention and control products in
the endoscopy procedure room itself. Cantel's collective
endoscopy business, with approximately 80 sales consultants and
clinical specialists, now offers the GI professional an
unparalleled level of expertise and solutions to mitigate infection
risks across the full endoscopy procedure cycle.
I am optimistic about Cantel's prospects to expand sales and
increase profits in fiscal year 2012. We expect to benefit from
leveraging our significant sales and marketing investments,
continued progress with new products, and successfully growing the
three key acquisitions made in the past year -- Byrne Medical,
Gambro's United States water
business and ConFirm Monitoring."
The Company further reported that its balance sheet at
July 31, 2011 included current assets
of $111,324,000, including cash of
$18,410,000, a current ratio of
2.56:1, debt of $24,000,000 and
stockholders' equity of $234,315,000.
Krakauer stated, "The Company has a strong balance sheet and
continues to generate significant cash. Our cash provided by
operating activities was $10,670,000
for the fourth quarter and $28,198,000 for the full year. We have reduced
our net debt position from the prior quarter by over $8 million to $5.6 million. Following the
recently announced Byrne Medical acquisition, although gross debt
increased by $98,000,000, our gross
debt to pro forma EBITDAS ratio is only 2:1. Cantel remains in an
excellent position to fund acquisitions and other investment
activities."
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 fourth quarter ended July 31,
2011 on Thursday, October 13,
2011 at 11:00 AM Eastern time.
To participate in the conference call, dial (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 Thursday, October 13,
2011 at 2:00 PM through
midnight on December 13, 2011 by
dialing (877) 660-6853 and using pass code # 286 and conference ID
# 380475.
The call will be simultaneously broadcast live over the Internet
on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=166106. 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.
CANTEL
MEDICAL CORP.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In
thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 86,018
|
|
$ 69,811
|
|
$ 321,651
|
|
$ 273,952
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
54,121
|
|
42,115
|
|
198,868
|
|
162,981
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
31,897
|
|
27,696
|
|
122,783
|
|
110,971
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Selling
|
12,216
|
|
9,509
|
|
44,144
|
|
36,092
|
|
General and
administrative
|
10,792
|
|
9,319
|
|
40,655
|
|
37,045
|
|
Research and
development
|
1,869
|
|
1,405
|
|
6,648
|
|
5,169
|
|
Total operating
expenses
|
24,877
|
|
20,233
|
|
91,447
|
|
78,306
|
|
|
|
|
|
|
|
|
|
|
Income before interest and
income taxes
|
7,020
|
|
7,463
|
|
31,336
|
|
32,665
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
262
|
|
210
|
|
960
|
|
1,169
|
|
Interest income
|
(24)
|
|
(24)
|
|
(86)
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
6,782
|
|
7,277
|
|
30,462
|
|
31,555
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
2,100
|
|
2,654
|
|
10,037
|
|
11,614
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,682
|
|
$ 4,623
|
|
$ 20,425
|
|
$ 19,941
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share -
diluted
|
$ 0.27
|
|
$ 0.27
|
|
$
1.18
|
|
$
1.18
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$ 0.06
|
|
$ 0.05
|
|
$
0.12
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares -
diluted
|
17,452
|
|
16,997
|
|
17,324
|
|
16,968
|
|
|
|
|
|
|
|
|
|
CANTEL
MEDICAL CORP.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
Assets
|
|
|
|
|
Current
assets
|
$ 111,324
|
|
$ 94,731
|
|
Property and
equipment, net
|
34,459
|
|
35,243
|
|
Intangible assets,
net
|
39,191
|
|
32,717
|
|
Goodwill
|
134,770
|
|
116,783
|
|
Other
assets
|
1,699
|
|
1,191
|
|
|
$ 321,443
|
|
$ 280,665
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
Current portion of
long-term debt
|
$
-
|
|
$ 10,000
|
|
Other current
liabilities
|
43,411
|
|
30,984
|
|
Long-term
debt
|
24,000
|
|
11,000
|
|
Other long-term
liabilities
|
19,717
|
|
19,276
|
|
Stockholders'
equity
|
234,315
|
|
209,405
|
|
|
$ 321,443
|
|
$ 280,665
|
|
|
|
|
|
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 twelve months ended July 31, 2011
and 2010,
|
|
respectively, is as follows (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
July
31,
|
|
July
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
4,682
|
|
$
4,623
|
|
$
20,425
|
|
$
19,941
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
2,100
|
|
2,654
|
|
10,037
|
|
11,614
|
|
Interest expense
|
262
|
|
210
|
|
960
|
|
1,169
|
|
Interest income
|
(24)
|
|
(24)
|
|
(86)
|
|
(59)
|
|
Depreciation
|
1,720
|
|
1,612
|
|
6,759
|
|
6,333
|
|
Amortization
|
1,497
|
|
1,263
|
|
5,687
|
|
5,105
|
|
Loss on disposal of fixed
assets
|
18
|
|
14
|
|
10
|
|
238
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
10,255
|
|
10,352
|
|
43,792
|
|
44,341
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
expense
|
797
|
|
860
|
|
3,350
|
|
3,130
|
|
|
|
|
|
|
|
|
|
|
EBITDAS
|
$
11,052
|
|
$
11,212
|
|
$
47,142
|
|
$
47,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
SOURCE Cantel Medical Corp.