LITTLE FALLS, N.J.,
Sept. 29, 2014 /PRNewswire/ --
CANTEL MEDICAL CORP. (NYSE: CMN) reported net income of
$10,705,000, or $0.26 per diluted share, on a 15% increase in
sales to a record $131,377,000 for
the fourth quarter ended July 31,
2014, inclusive of $0.02 for
charges related to acquisition and CFO retirement costs. This
compares with net income of $10,213,000, or $0.25 per diluted share, on sales of $113,973,000 for the fourth quarter ended
July 31, 2013.
For the full fiscal year ended July 31,
2014, the Company reported record net income of $43,265,000 or $1.04 per diluted share, on a 15% increase in
sales to a record $488,749,000,
inclusive of $0.03 for charges
related to acquisition and CFO retirement costs. This
compares with net income of $39,239,000 or $0.95 per diluted share, on sales of $425,026,000 for the fiscal year ended
July 31, 2013, inclusive of
$0.01 in net favorable adjustments
related to acquisition accounting partially offset by severance and
recruiting costs.
Andrew Krakauer, Cantel Medical's
President and CEO, stated, "We are pleased to have delivered record
sales and strong earnings performance again this quarter. We
achieved significant revenue growth in our three major business
segments -- Endoscopy, Water Purification and Filtration, and
Healthcare Disposables. All three business units have greatly
benefited from further investments in new product development,
sales and marketing programs and the integration of recent
acquisitions for this quarter and for the full year. Most
importantly this quarter, we had strong organic sales growth of
13%, and have exceeded 10% organic growth for the past five
consecutive quarters."
Krakauer added, "Our Medivators Endoscopy business led sales
growth for the company this quarter with a year-over-year increase
of 23%, of which 20% was organic. This unit achieved record sales
for the fourth consecutive quarter with double digit growth in all
product categories. Further, we were pleased to have announced on
July 1, that Cantel acquired PuriCore
International Limited, which is now called Cantel Medical (UK)
Limited. The addition of this United
Kingdom-based company further enhances Cantel's global
leadership in the automated endoscope reprocessor and related
chemistries business.
Our Mar Cor Water Purification and Filtration unit continued its
excellent performance as it has all fiscal year with sales growth
this quarter of 14%, of which 11% was organic. Sales growth in this
segment was led by increased shipments of central and portable
water purification equipment. In our Crosstex Healthcare
Disposables segment, sales grew 6% for the quarter, all of which
was organic.
We are optimistic about Cantel's prospects to grow sales and
increase profits in fiscal year 2015. We expect to benefit from our
significant prior and ongoing investments in sales and marketing,
continued progress with new products, as well as from recent and
future acquisitions."
The Company further reported that its balance sheet at
July 31, 2014 included current assets
of $163,909,000, including cash of
$31,781,000, a current ratio of
2.5:1, gross debt of $80,500,000 and
stockholders' equity of $365,246,000.
Krakauer stated, "The Company has a strong balance sheet and
continues to generate significant cash flow and EBITDAS. For the
full fiscal year 2014, EBITDAS grew by 13.5% to $95,724,000. Despite borrowing $28 million to fund the acquisition of PuriCore
in June, our net debt position since the third quarter increased
only about $9 million to
$48,719,000."
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 fourth quarter and full fiscal year ended July 31, 2014 on Monday, September 29, 2014
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 Monday, September 29,
2014 at 2:00 PM through
midnight on November 29, 2014 by
dialing (877) 660-6853 and using conference ID # 13590980.
The call will be simultaneously broadcast live over the Internet
on vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=173195. A replay
of the webcast will be available for 90 days on PrecisionIR and via
the investor relations page of the Cantel website.
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
|
|
Twelve Months
Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 131,377
|
|
$ 113,973
|
|
$ 488,749
|
|
$ 425,026
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
74,330
|
|
64,859
|
|
275,450
|
|
241,550
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
57,047
|
|
49,114
|
|
213,299
|
|
183,476
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Selling
|
|
18,146
|
|
15,554
|
|
66,519
|
|
57,786
|
General and
administrative
|
|
17,890
|
|
14,986
|
|
65,039
|
|
53,182
|
Research and
development
|
|
3,430
|
|
2,444
|
|
10,813
|
|
9,320
|
Total operating
expenses
|
|
39,466
|
|
32,984
|
|
142,371
|
|
120,288
|
|
|
|
|
|
|
|
|
|
Income before
interest and income taxes
|
|
17,581
|
|
16,130
|
|
70,928
|
|
63,188
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
526
|
|
709
|
|
2,380
|
|
2,895
|
Interest
income
|
|
(18)
|
|
(16)
|
|
(63)
|
|
(61)
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
17,073
|
|
15,437
|
|
68,611
|
|
60,354
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
6,368
|
|
5,224
|
|
25,346
|
|
21,115
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 10,705
|
|
$ 10,213
|
|
$ 43,265
|
|
$ 39,239
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - diluted
|
|
$ 0.26
|
|
$ 0.25
|
|
$ 1.04
|
|
$ 0.95
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
|
$ 0.05
|
|
$ 0.04
|
|
$ 0.09
|
|
$ 0.07
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
41,513
|
|
41,296
|
|
41,470
|
|
41,197
|
|
|
|
|
|
CANTEL MEDICAL
CORP.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31,
|
|
July 31,
|
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
Current assets
|
|
$ 163,909
|
|
$ 150,660
|
Property and equipment,
net
|
|
52,718
|
|
46,465
|
Intangible assets,
net
|
|
82,952
|
|
75,929
|
Goodwill
|
|
231,647
|
|
211,618
|
Other assets
|
|
4,919
|
|
2,999
|
|
|
$ 536,145
|
|
$ 487,671
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
Current portion of long-term
debt
|
|
$
-
|
|
$ 10,000
|
Other current
liabilities
|
|
66,499
|
|
49,151
|
Long-term debt
|
|
80,500
|
|
85,000
|
Other long-term
liabilities
|
|
23,900
|
|
22,388
|
Stockholders'
equity
|
|
365,246
|
|
321,132
|
|
|
$ 536,145
|
|
$ 487,671
|
|
|
|
|
|
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 twelve months ended July
31, 2014 and 2013,
|
respectively, is as
follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
July 31,
|
|
July 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 10,705
|
|
$ 10,213
|
|
$ 43,265
|
|
$ 39,239
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
6,368
|
|
5,224
|
|
25,346
|
|
21,115
|
Interest
expense
|
|
526
|
|
709
|
|
2,380
|
|
2,895
|
Interest
income
|
|
(18)
|
|
(16)
|
|
(63)
|
|
(61)
|
Depreciation
|
|
2,173
|
|
1,822
|
|
8,245
|
|
7,202
|
Amortization
|
|
2,759
|
|
2,623
|
|
10,641
|
|
10,061
|
Loss on disposal of
fixed assets
|
|
199
|
|
60
|
|
501
|
|
184
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
22,712
|
|
20,635
|
|
90,315
|
|
80,635
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
1,431
|
|
927
|
|
5,409
|
|
3,733
|
|
|
|
|
|
|
|
|
|
EBITDAS
|
|
$ 24,143
|
|
$ 21,562
|
|
$ 95,724
|
|
$ 84,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.