LITTLE FALLS, N.J.,
March 7, 2013 /PRNewswire/
-- CANTEL MEDICAL CORP. (NYSE: CMN) reported record net
income of $10,452,000, or
$0.38 per diluted share, on a 9%
increase in sales to a record $106,363,000 for the second quarter ended
January 31, 2013. This compares with
net income of $7,294,000, or
$0.27 per diluted share, on sales of
$97,297,000 for the second quarter
ended January 31, 2012. For the six
months ended January 31, 2013, the
Company reported record net income of $20,028,000, or $0.73 per diluted share, on an 8% increase in
sales to a record $206,044,000. This
compares with net income of $13,514,000, or $0.50 per diluted share, on sales of $190,559,000 for the six months ended
January 31, 2012. Results for the
second quarter and six months ended January
31, 2013 include $0.02 in net
favorable adjustments related to acquisition accounting partially
offset by severance and recruiting costs. Results for the second
quarter and six months ended January 31,
2012 were inclusive of a $0.02
charge related to an asset impairment.
Andrew Krakauer, Cantel's
President and CEO stated, "We are pleased to have delivered record
sales and 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, "Performance this quarter was led by our
Healthcare Disposables segment. With the benefit of the ongoing
integration of the SPS Medical sterility assurance business
acquired on November 1, 2012, sales
in this segment exceeded the same quarter last year by 36%. Organic
sales growth was 11%, about half of which was driven by our
distributor customers pulling forward shipments in anticipation of
January 1 price increases. Operating
profit grew by over 80%, with approximately two thirds of the
growth being organic, driven by operating leverage.
As in the first quarter, our Water Purification and Filtration
segment had excellent year-over-year quarterly performance with
organic sales growth of 15%. Operating profit in the segment grew
by 21% due to greater sales of advanced technology products and
improved operating efficiencies. Our largest business unit,
Endoscopy, had sequential quarterly sales growth of 7%. However, as
expected, this segment showed a 2% decline in sales against very
strong comparables from the year earlier quarter."
The Company further reported that its balance sheet at
January 31, 2013 included current
assets of $138,042,000, including
cash of $26,825,000, a current ratio
of 2.7:1, debt of $107,000,000 and
stockholders' equity of $298,002,000. 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 20% to $22,278,000. After the acquisition of SPS
Medical on the first day of the quarter, we were able to reduce net
debt by $9 million to
$80,175,000."
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,
2013 on Thursday, March 7,
2013 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 7,
2013 at 2:00 PM through
midnight on May 7, 2013 by dialing
1-877-660-6853 and using conference ID #410008.
The call will be simultaneously broadcast live over the Internet
on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=170630. 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
|
|
Six Months
Ended
|
|
|
January
31,
|
|
January
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
106,363
|
|
$
97,297
|
|
$
206,044
|
|
$
190,559
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
61,212
|
|
56,476
|
|
117,166
|
|
111,788
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
45,151
|
|
40,821
|
|
88,878
|
|
78,771
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Selling
|
|
13,723
|
|
13,270
|
|
27,136
|
|
26,193
|
General and administrative
|
|
12,382
|
|
12,092
|
|
24,430
|
|
24,194
|
Research and development
|
|
2,183
|
|
2,298
|
|
4,477
|
|
4,443
|
Total
operating expenses
|
|
28,288
|
|
27,660
|
|
56,043
|
|
54,830
|
|
|
|
|
|
|
|
|
|
Income
before interest, other expense and income taxes
|
16,863
|
|
13,161
|
|
32,835
|
|
23,941
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
791
|
|
1,000
|
|
1,437
|
|
2,031
|
Interest
income
|
|
(16)
|
|
(24)
|
|
(29)
|
|
(54)
|
Other
expense
|
|
-
|
|
605
|
|
-
|
|
605
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
16,088
|
|
11,580
|
|
31,427
|
|
21,359
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
5,636
|
|
4,286
|
|
11,399
|
|
7,845
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
10,452
|
|
$
7,294
|
|
$
20,028
|
|
$
13,514
|
|
|
|
|
|
|
|
|
|
Earnings
per common share - diluted
|
|
$
0.38
|
|
$
0.27
|
|
$
0.73
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
Dividends
per common share
|
|
$
-
|
|
$
-
|
|
$
0.06
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
Weighted
average shares - diluted
|
|
27,462
|
|
27,243
|
|
27,411
|
|
27,084
|
CANTEL
MEDICAL CORP.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
July
31,
|
|
|
2013
|
|
2012
|
Assets
|
|
|
|
|
Current assets
|
|
$
138,042
|
|
$
133,892
|
Property and equipment,
net
|
|
45,781
|
|
43,022
|
Intangible assets,
net
|
|
76,755
|
|
71,311
|
Goodwill
|
|
208,305
|
|
183,655
|
Other assets
|
|
2,975
|
|
2,932
|
|
|
$
471,858
|
|
$
434,812
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
Current portion of long-term
debt
|
|
$
10,000
|
|
$
10,000
|
Other current
liabilities
|
|
41,389
|
|
45,141
|
Long-term debt
|
|
97,000
|
|
80,000
|
Other long-term
liabilities
|
|
25,467
|
|
23,735
|
Stockholders'
equity
|
|
298,002
|
|
275,936
|
|
|
$
471,858
|
|
$
434,812
|
SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Earnings Before Interest, Taxes,
Depreciation, Amortization and Stock-Based
|
|
Compensation Expense ("EBITDAS")
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
reconciliation of EBITDAS with net income for the three and six
months ended January 31, 2013 and 2012,
|
respectively, is as follows (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six Months
Ended
|
|
|
January
31,
|
|
January
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
10,452
|
|
$
7,294
|
|
$
20,028
|
|
$
13,514
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
5,636
|
|
4,286
|
|
11,399
|
|
7,845
|
Interest
expense
|
|
791
|
|
1,000
|
|
1,437
|
|
2,031
|
Interest
income
|
|
(16)
|
|
(24)
|
|
(29)
|
|
(54)
|
Other
expense
|
|
-
|
|
605
|
|
-
|
|
605
|
Depreciation
|
|
1,814
|
|
1,717
|
|
3,574
|
|
3,394
|
Amortization
|
|
2,573
|
|
2,278
|
|
4,840
|
|
4,567
|
Loss on
disposal of fixed assets
|
|
99
|
|
33
|
|
140
|
|
36
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
21,349
|
|
17,189
|
|
41,389
|
|
31,938
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
929
|
|
1,382
|
|
1,887
|
|
2,313
|
|
|
|
|
|
|
|
|
|
EBITDAS
|
|
$
22,278
|
|
$
18,571
|
|
$
43,276
|
|
$
34,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.