LITTLE FALLS, N.J.,
June 7, 2012 /PRNewswire/
-- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 62%
increase in net income to a record $8,174,000, or $0.30 per diluted share, on an 18% increase in
sales to $97,238,000 for the third
quarter ended April 30, 2012. This
compares with net income of $5,048,000, or $0.19 per diluted share, on sales of $82,619,000 for the third quarter ended
April 30, 2011. For the nine months
ended April 30, 2012, the Company
reported net income of $21,688,000,
or $0.80 per diluted share, on a 22%
increase in sales to $287,797,000.
This compares with net income of $15,743,000, or $0.61 per diluted share, on sales of $235,633,000 for the nine months ended
April 30, 2011.
Andrew Krakauer, Cantel's
President and CEO stated, "We are pleased to have delivered strong
sales growth and record quarterly earnings in the third quarter.
Once again, Cantel's positive results were driven by the continued
success of our three prong approach to growth which includes
investing in new product development, sales and marketing programs
and acquisitions. Most importantly this quarter, results in each of
our three largest segments, Endoscopy, Healthcare Disposables and
Water Purification and Filtration, greatly benefited from gross
margin expansion driven by successful integration of acquisitions,
greater sales of higher margin products and improved operating
efficiencies. Gross margins increased by about 6 percentage points
to 43.8% compared with the same quarter last year."
Krakauer added, "As in the first half of this fiscal year, our
Endoscopy segment, led by our newly acquired Byrne Medical
business, had excellent performance as sales increased by 41% and
operating profit grew by 122%. Byrne products (now named Medivators
procedural products) showed core growth of 28%, and the acquisition
was accretive to earnings. The Byrne business has been integrated
with our legacy endoscope reprocessing business under the
"Medivators" name to establish the infection control leader in the
gastrointestinal (GI) endoscopy market. We introduced the new
Medivators business to our customers at two major trade shows in
May and were very pleased by our customers' favorable reactions to
the combined business, as well as to a number of new products
launched or soon to be launched that were exhibited.
Cantel's two other largest business segments also performed
well. In our Healthcare Disposables unit, due to greatly improved
gross margins, operating profit increased 51% on a 6% increase in
sales. Sales in our Water Purification and Filtration business were
11% higher. However, with effective integration of the Gambro water
acquisition and a focus on margin improvement, operating profit in
this segment grew by 73%."
The Company further reported that its balance sheet at
April 30, 2012 included current
assets of $126,661,000, including
cash of $25,027,000, a current ratio
of 2.5:1, debt of $100,500,000 and
stockholders' equity of $266,382,000. 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 58% to $18,552,000. Our net debt position improved
during the quarter by almost $11 million to
$75,473,000. We have reduced our net position during the
first three quarters by over $28
million."
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 third quarter ended April 30,
2012 on Thursday, June 7, 2012
at 10:00 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, June 7, 2012
at 2:00 PM through midnight on
August 7, 2012 by dialing
1-877-660-6853 and using passcode #286 and conference ID
#395388.
The call will be simultaneously broadcast live over the Internet
on vcall.com at :
http://www.investorcalendar.com/IC/CEPage.asp?ID=168743. 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)
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Three
Months Ended
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Nine
Months Ended
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April
30,
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April
30,
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2012
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2011
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2012
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2011
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Net
sales
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$97,238
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$82,619
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$287,797
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$235,633
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Cost of
sales
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54,619
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51,317
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166,407
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144,747
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Gross
profit
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42,619
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31,302
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121,390
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90,886
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Expenses:
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Selling
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14,240
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11,505
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40,433
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31,928
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General and
administrative
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12,388
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10,439
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36,582
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29,863
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Research and
development
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2,217
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1,715
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6,660
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4,779
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Total
operating expenses
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28,845
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23,659
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83,675
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66,570
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Income
before interest, other expense
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and income
taxes
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13,774
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7,643
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37,715
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24,316
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Interest
expense
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897
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195
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2,928
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698
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Interest
income
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(13)
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(24)
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(67)
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(62)
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Other
expense
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-
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-
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605
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-
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Income
before income taxes
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12,890
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7,472
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34,249
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23,680
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Income
taxes
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4,716
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2,424
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12,561
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7,937
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Net
income
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$
8,174
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$
5,048
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$
21,688
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$
15,743
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Earnings
per common share - diluted
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$
0.30
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$
0.19
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$
0.80
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$
0.61
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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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27,282
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26,121
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27,148
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25,900
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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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2012
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2011
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Assets
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Current
assets
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$126,661
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$111,324
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Property and
equipment, net
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43,260
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34,459
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Intangible assets,
net
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73,640
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39,191
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Goodwill
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183,703
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134,770
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Other
assets
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3,055
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1,699
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$430,319
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$321,443
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Liabilities and stockholders' equity
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Current portion of
long-term debt
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$
10,000
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$
-
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Other current
liabilities
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40,691
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43,411
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Long-term
debt
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90,500
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24,000
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Other long-term
liabilities
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22,746
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19,717
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Stockholders'
equity
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266,382
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234,315
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$430,319
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$321,443
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SUPPLEMENTARY INFORMATION
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Reconciliation of Earnings Before Interest, Taxes,
Depreciation, Amortization and Stock-Based
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Compensation Expense ("EBITDAS")
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The
reconciliation of EBITDAS with net income for the three and nine
months ended April 30, 2012 and 2011,
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respectively, is as follows (in
thousands):
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Three
Months Ended
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Nine
Months Ended
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April
30,
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April
30,
|
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2012
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2011
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2012
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2011
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Net
income
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$
8,174
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$
5,048
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$21,688
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$15,743
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Income
taxes
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4,716
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2,424
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12,561
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7,937
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Interest
expense
|
897
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|
195
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|
2,928
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|
698
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Interest
income
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(13)
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(24)
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(67)
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(62)
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Other
expense
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-
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-
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605
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-
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Depreciation
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1,735
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1,745
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5,129
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5,039
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Amortization
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2,279
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1,465
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6,846
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4,190
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Loss
(gain) on disposal of fixed assets
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58
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1
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94
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(8)
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EBITDA
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17,846
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10,854
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49,784
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33,537
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Stock-based compensation expense
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706
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871
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3,019
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2,553
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EBITDAS
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$18,552
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$11,725
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$52,803
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$36,090
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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.