LITTLE FALLS, N.J.,
March 8, 2012 /PRNewswire/ --
CANTEL MEDICAL CORP. (NYSE: CMN) reported a 28% increase in
net income to a record $7,294,000, or
$0.27 per diluted share, on a 20%
increase in sales to a record $97,297,000 for the second quarter ended
January 31, 2012. This compares with
net income of $5,720,000, or
$0.22 per diluted share, on sales of
$81,021,000 for the second quarter
ended January 31, 2011. For the six
months ended January 31, 2012, the
Company reported net income of $13,514,000, or $0.50 per diluted share, on a 25% increase in
sales to $190,559,000. This compares
with net income of $10,695,000, or
$0.42 per diluted share, on sales of
$153,014,000 for the six months ended
January 31, 2011. Results for the
second quarter and first six months ended January 31, 2012 were inclusive of a $0.02 charge related to an impairment of an
investment.
Andrew Krakauer, Cantel's
President and CEO stated, "We are pleased to have delivered record
sales and quarterly earnings in the second quarter. 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 Endoscopy segment,
led by our newly acquired Byrne Medical business, had excellent
performance as sales increased by 49% and operating profit grew by
86%. Byrne products showed core growth of over 30%, and the
acquisition was accretive to earnings. The Byrne business is being
integrated with our legacy endoscope reprocessing business under
the "Medivators" name to establish the infection control leader in
the gastrointestinal (GI) endoscopy market. Integration is going
well, and we are pleased that Don
Byrne, the visionary founder of Byrne Medical, has become
the President of our newly combined Medivators business.
Cantel's two other largest business segments also performed
well. In our Healthcare Disposables unit, sales growth of 17% and
improved gross margins resulted in a 49% increase in operating
profit. Sales in our Water Purification and Filtration business
were 6% higher. However, with effective integration of the Gambro
water acquisition and a focus on margin improvement, operating
profit in this segment grew by 51%."
The Company further reported that its balance sheet at
January 31, 2012 included current
assets of $122,574,000, including
cash of $21,689,000, a current ratio
of 2.4:1, debt of $108,000,000 and
stockholders' equity of $256,668,000.
Krakauer stated, "The Company has a strong balance sheet and
continues to generate significant cash flow and EBITDAS. When
compared with the same quarter last year, our EBITDAS grew by 45%
to $18,571,000. Our net debt position
improved during the quarter by over $10
million to $86,311,000."
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 dental and GI endoscopy markets,
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,
2012 on Thursday, March 8,
2012 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 Thursday, March 8,
2012 at 2:00 PM through
midnight on May 8, 2012 by dialing
1-877-660-6853 and using passcode #286 and conference ID
#390098.
The call will be simultaneously broadcast live over the Internet
on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=167618. 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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|
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(unaudited)
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|
|
|
|
|
|
|
|
|
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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,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
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|
|
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Net sales
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|
$
97,297
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$
81,021
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$
190,559
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|
$
153,014
|
|
|
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|
|
|
|
|
|
|
|
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Cost of sales
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|
56,476
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|
49,629
|
|
111,788
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|
93,430
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|
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|
|
|
|
|
|
|
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Gross profit
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40,821
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|
31,392
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78,771
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59,584
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Expenses:
|
|
|
|
|
|
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Selling
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13,270
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10,792
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26,193
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|
20,423
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General and
administrative
|
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12,092
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10,306
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24,194
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19,424
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Research and
development
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2,298
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1,435
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4,443
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|
3,064
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Total operating
expenses
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27,660
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|
22,533
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54,830
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42,911
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|
|
|
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Income before interest, other
expense
|
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|
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|
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and income taxes
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13,161
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|
8,859
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|
23,941
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|
16,673
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|
|
|
|
|
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Interest expense
|
|
1,000
|
|
262
|
|
2,031
|
|
503
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Interest income
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|
(24)
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|
(19)
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|
(54)
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|
(38)
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Other expense
|
|
605
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|
-
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|
605
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-
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|
|
|
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Income before income
taxes
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11,580
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8,616
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21,359
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16,208
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Income taxes
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4,286
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|
2,896
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|
7,845
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|
5,513
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Net income
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$
7,294
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$
5,720
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$
13,514
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$
10,695
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Earnings per common share -
diluted
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$
0.27
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$
0.22
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$
0.50
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$
0.42
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Dividends per common
share
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$
-
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|
$
-
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$
0.05
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$
0.04
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Weighted average shares -
diluted
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27,243
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|
26,011
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27,084
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25,752
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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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|
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(unaudited)
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January
31,
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July
31,
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2012
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2011
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Assets
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Current
assets
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$
122,574
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$
111,324
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Property and
equipment, net
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43,716
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|
34,459
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Intangible assets,
net
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75,842
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39,191
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Goodwill
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183,502
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134,770
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Other
assets
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|
3,068
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|
1,699
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|
|
|
$
428,702
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|
$
321,443
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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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|
$
10,000
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|
$
-
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Other current
liabilities
|
|
41,573
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|
43,411
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Long-term
debt
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98,000
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24,000
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Other long-term
liabilities
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|
22,461
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19,717
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Stockholders'
equity
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|
256,668
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|
234,315
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$
428,702
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$
321,443
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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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|
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Compensation Expense
("EBITDAS")
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The reconciliation of EBITDAS
with net income for the three and six months ended January 31, 2012
and 2011,
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respectively, is as follows (in
thousands):
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|
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|
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|
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Three Months
Ended
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Six Months
Ended
|
|
|
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January
31,
|
|
January
31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income
|
|
$
7,294
|
|
$
5,720
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|
$
13,514
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|
$
10,695
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|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
4,286
|
|
2,896
|
|
7,845
|
|
5,513
|
|
|
Interest expense
|
|
1,000
|
|
262
|
|
2,031
|
|
503
|
|
|
Interest income
|
|
(24)
|
|
(19)
|
|
(54)
|
|
(38)
|
|
|
Other expense
|
|
605
|
|
-
|
|
605
|
|
-
|
|
|
Depreciation
|
|
1,717
|
|
1,666
|
|
3,394
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|
3,294
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|
|
Amortization
|
|
2,278
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|
1,406
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|
4,567
|
|
2,725
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|
|
Loss (gain) on disposal of fixed
assets
|
|
33
|
|
2
|
|
36
|
|
(9)
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|
|
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|
|
|
|
|
|
|
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EBITDA
|
|
17,189
|
|
11,933
|
|
31,938
|
|
22,683
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|
|
|
|
|
|
|
|
|
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|
Stock-based compensation
expense
|
|
1,382
|
|
917
|
|
2,313
|
|
1,682
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAS
|
|
$
18,571
|
|
$
12,850
|
|
$
34,251
|
|
$
24,365
|
|
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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.