CMD Cantel Medical Corp

LITTLE FALLS, N.J., Dec. 5, 2013 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 17% increase in net income to a record $11,185,000, or $0.27 per diluted share, on a 19% increase in sales to a record $118,272,000 for the first quarter ended October 31, 2013. This compares with net income of $9,576,000, or $0.23 per diluted share, on sales of $99,681,000 for the first quarter ended October 31, 2012.

Andrew Krakauer, Cantel's President and CEO stated, "We are pleased to have delivered record sales and earnings this quarter. We achieved good financial performance in all three major business segments – Endoscopy, Water Purification and Filtration, and Healthcare Disposables. All three business units have greatly benefitted from further investments in new product development, sales and marketing programs, and the integration of recent acquisitions. Most importantly, for the second consecutive quarter we had strong organic sales growth of 10%. Further, our total sales growth of 19% demonstrates the success of our acquisition program."

Krakauer added, "Our Medivators Endoscopy business achieved robust organic sales growth of 19% in the quarter. All product categories were strong, including equipment, disinfectant chemicals, procedural products, as well as service and spare parts. Our Mar Cor Water Purification and Filtration segment continued its excellent performance as it has for the past two years with sales growth of 20% this quarter. Higher sales in this segment were led by increased shipments of central and portable water purification equipment. Sales in our Crosstex Healthcare Disposables business grew by 32%, mostly driven by the successful integration of the SPS Medical sterility assurance acquisition completed in November 2012. These substantial revenue increases drove the significantly improved operating earnings. Our strong results validate the effectiveness of our increasing investments in sales and marketing and new product development, which will support continued growth in all our major segments. Further, we are also taking an aggressive approach in building our international sales, marketing and operations teams to grow this part of our business over the medium-term. Such investments will accelerate over the next several quarters. Cantel will continue to be dedicated to the growing global infection prevention and control marketplace through both organic growth strategies and our continued commitment to an active acquisition program."

The Company also reported that its balance sheet at October 31, 2013 included current assets of $151,293,000, including cash of $28,453,000, a current ratio of 2.5:1, gross debt of $82,000,000 and stockholders' equity of $330,434,000. Krakauer stated, "We continue to maintain a strong balance sheet and generate substantial cash flow and EBITDAS. When compared with the same quarter last year, our EBITDAS grew by 15% to $24,148,000. We were able to reduce our net debt position by over $7 million to $53,547,000, during the quarter."

Cantel Medical is a leading global company dedicated to delivering innovative infection prevention and control products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives.  Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates, hollow fiber membrane filtration and separation products, and specialty packaging for infectious and biological specimens. Additionally, we provide technical service for our products. 

The Company will hold a conference call to discuss the results for the first quarter ended October 31, 2013 on Thursday, December 5, 2013 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, December 5, 2013 at 2:00 PM through midnight on February 5, 2014 by dialing (877) 660-6853 and using conference ID # 13573107.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=171967.  A replay of the webcast will be available on Vcall for 90 days and via the investor relations page of the Cantel web site.

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.