CMD Cantel Medical Corp

LITTLE FALLS, N.J., June 6, 2013 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 10% increase in net income to $8,998,000, or $0.33 per diluted share, on an 8% increase in sales to $105,009,000 for the third quarter ended April 30, 2013. This compares with net income of $8,174,000, or $0.30 per diluted share, on sales of $97,238,000 for the third quarter ended April 30, 2012. For the nine months ended April 30, 2013, the Company reported record net income of $29,026,000, or $1.06 per diluted share, inclusive of $0.02 in net favorable adjustments related to acquisition accounting partially offset by severance and recruiting costs, on an 8% increase in sales to a record $311,053,000.  This compares with net income of $21,688,000 or $0.80 per diluted share, inclusive of a $0.02 charge related to an asset impairment, on sales of $287,797,000 for the nine months ended April 30, 2012.

Andrew Krakauer, Cantel's President and CEO stated, "We are pleased to have delivered solid financial performance in the third 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. Reported earnings would have been $0.02 better if not for the Medical Device Tax which impacted all three months of 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 grew by 17% compared to last year and we were able to offset the negative effect caused by our distributors pulling forward shipments last quarter. Operating profits were 13% higher and grew more slowly than sales as we made substantial investments in sales and marketing expenses. We are very pleased with the performance of SPS Medical and will be investing in additional sales and marketing resources, as well as R&D, to accelerate growth in fiscal year 2014 and beyond.

As in the first two quarters of this fiscal year, our Water Purification and Filtration segment had excellent year-over-year quarterly performance with organic sales growth of almost 14%. Operating profits in this segment were only slightly higher due to increases in selling expenses and transaction expenses associated with our recent acquisition. In our largest business unit, Endoscopy, quarterly sales growth of 3% was driven by our liquid chemical germicides, service and procedural products categories. We remain encouraged with the continued growth prospects for this segment as we continue to launch new products into this multi-billion market segment.  At two major endoscopy trade shows in May, we had a very successful turnout and were encouraged by the customer excitement and feedback on our portfolio of newly launched products."

The Company further reported that its balance sheet at April 30, 2013 included current assets of $145,183,000, including cash of $30,669,000, a current ratio of 2.6:1, debt of $105,000,000 and stockholders' equity of $307,955,000.  Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS.  When compared with the first nine months of last year, our EBITDAS grew by 19% to $62,806,000.  Net debt was reduced during the quarter by almost $6 million to $74,331,000 despite the approximate $8 million acquisition of the Siemens hemodialysis water business announced on March 25."

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, 2013 on Thursday, June 6, 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, June 6, 2013 at 2:00 PM through midnight on August 6, 2013 by dialing 1-877-660-6853 and using conference ID #415610.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=171058. 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.

SOURCE Cantel Medical Corp.