LITTLE FALLS, N.J., Dec. 9 /PRNewswire-FirstCall/ -- CANTEL MEDICAL
CORP. (NYSE:CMN) reported an 85% increase in net income to
$6,168,000, or $0.37 per diluted share, on a 10% increase in sales
to a record $70,995,000 for the first quarter ended October 31,
2009. This compares with net income of $3,333,000, or $0.20 per
diluted share, on sales of $64,406,000 for the first quarter ended
October 31, 2008. According to Andrew Krakauer, Cantel's President
and CEO, "This record performance reflects our eighth sequential
quarter of improved results. Cantel continued to benefit from the
growth of higher margin consumables and service revenue, which now
comprise 75% of our overall sales." Krakauer added, "All of
Cantel's businesses performed well during this quarter. Every
operating segment reported higher gross margins and increased
operating income, compared with the same quarter in the prior year.
The strongest performance was in our Healthcare Disposables segment
where operating profit more than doubled, driven by atypically high
demand for our U.S.-manufactured, FDA-cleared face masks in
response to the H1N1 flu outbreak. Our unusually high shipments of
face masks are now returning to more normal levels. Additionally,
in our Endoscope Reprocessing segment, proactive sales and
marketing investments helped achieve strong revenue growth in both
disinfectants and capital equipment." The Company also reported
that its balance sheet at October 31, 2009 included current assets
of $92,552,000, including cash of $23,105,000, a current ratio of
1.53:1, gross debt of $38,000,000 and stockholders' equity of
$193,332,000. Krakauer stated, "We continue to strengthen our
balance sheet and generate substantial cash flow. Our cash provided
by operating activities was $6,456,000 for the quarter, and our net
debt position of $14,895,000 at the end of this first quarter was
25% lower than the previous quarter." Cantel Medical Corp. is a
leading provider of infection prevention and control products in
the healthcare market. Our products include specialized medical
device reprocessing systems for renal dialysis and endoscopy,
dialysate concentrates and other dialysis supplies, disposable
infection control products primarily for the dental industry, water
purification equipment, sterilants, disinfectants and cleaners,
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
first quarter ended October 31, 2009 on Wednesday, December 9, 2009
at 11:00 AM Eastern time. To participate in the conference call,
dial 1-877-407-8035 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 Wednesday, December 9,
2009 at 2:00 PM through midnight on December 16, 2009 by dialing
1-877-660-6853 and using passcode #286 and conference ID #338712.
The call will be simultaneously broadcast live over the Internet on
vcall.com at
http://www.investorcalendar.com/IC/CEPage.asp?ID=152915. A replay
of the webcast will be available on Vcall for 30 days. For further
information, visit the Cantel website at
http://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) Three Months Ended October 31, -----------
2009 2008 ---- ---- Net sales $70,995 $64,406 Cost of sales 41,537
40,783 ------ ------ Gross profit 29,458 23,623 Expenses: Selling
8,524 7,350 General and administrative 9,305 9,024 Research and
development 1,265 1,065 ----- ----- Total operating expenses 19,094
17,439 ------ ------ Income before interest and income taxes 10,364
6,184 Interest expense 387 751 Interest income (8) (70) --- ---
Income before income taxes 9,985 5,503 Income taxes 3,817 2,170
----- ----- Net income $6,168 $3,333 ====== ====== Earnings per
common share - diluted $0.37 $0.20 ===== ===== Weighted average
shares - diluted 16,769 16,457 CANTEL MEDICAL CORP. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands) October 31, July 31,
2009 2009 ---- ---- Assets Current assets $92,552 $88,910 Property
and equipment, net 35,780 35,968 Intangible assets 35,788 37,042
Goodwill 114,921 114,995 Other assets 1,091 956 ----- --- $280,132
$277,871 ======== ======== Liabilities and stockholders' equity
Current portion of long-term debt $30,500 $10,000 Other current
liabilities 30,023 29,113 Long-term debt 7,500 33,300 Other
long-term liabilities 18,777 18,342 Stockholders' equity 193,332
187,116 ------- ------- $280,132 $277,871 ======== ========
SUPPLEMENTARY INFORMATION Reconciliation of Earnings Before
Interest, Taxes, Depreciation, Amortization and Stock-Based
Compensation Expense ("EBITDAS") The reconciliation of EBITDAS with
net income for the three months ended October 31, 2009 and 2008,
respectively, is as follows (in thousands): Three Months Ended
October 31, ----------- 2009 2008 ---- ---- Net income $6,168
$3,333 Income taxes 3,817 2,170 Interest expense 387 751 Interest
income (8) (70) Depreciation 1,564 1,550 Amortization 1,278 1,338
Loss on disposal of fixed assets - 14 --- --- EBITDA 13,206 9,086
Stock-based compensation expense 789 520 --- --- EBITDAS $13,995
$9,606 ======= ====== 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. DATASOURCE: Cantel Medical Corp. CONTACT:
Andrew A. Krakauer, President & CEO of Cantel Medical Corp.,
+1-973-890-7220; or Richard E. Moyer of Cameron Associates, Inc.,
+1-212-554-5466, Web Site: http://www.cantelmedical.com/
Copyright
