Cantel Medical Reports a 109% Increase in Net Income – EPS of $0.25 vs. $0.12 for Quarter Ended April 30, 2009
Krakauer added, “While all our businesses performed well, operating income in our Endoscope Reprocessing, Dialysis, and Water Purification and Filtration units was substantially ahead of last year, aided by strong sales of consumables, including disinfectants, sterilants and an increase in service revenue. Additionally, the positive performance was helped by our active cost reduction and margin improvement programs, the effectiveness of price increases and reduced interest expenses.”
Krakauer continued, “Although our businesses are not immune to the economic downturn, we remain focused on our strategies to grow and improve performance. In this economy, our competitive advantage is our leadership positions in several infection prevention and control markets, a quality reputation and strong brands. Further, we have proactively developed our business to where approximately 75% of our sales come from disposables and service, which are supported by a large installed base of equipment.”
The Company further reported that its balance sheet at
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 third quarter ended
The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=145679. A replay of the webcast will be available on Vcall for 30 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)
Three Months Ended Nine Months Ended
April 30, April 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $66,431 $64,178 $193,257 $185,093
Cost of sales 40,908 41,897 120,500 120,120
------ ------ ------- -------
Gross profit 25,523 22,281 72,757 64,973
Expenses:
Selling 7,984 7,190 22,326 20,815
General and administrative 9,106 9,923 27,167 27,847
Research and development 1,261 928 3,309 2,879
----- --- ----- -----
Total operating expenses 18,351 18,041 52,802 51,541
------ ------ ------ ------
Income before interest
and income taxes 7,172 4,240 19,955 13,432
Interest expense 588 1,185 2,013 3,662
Interest income (24) (97) (132) (394)
--- --- ---- ----
Income before income taxes 6,608 3,152 18,074 10,164
Income taxes 2,425 1,151 6,784 4,067
----- ----- ----- -----
Net income $4,183 $2,001 $11,290 $6,097
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Earnings per common share
- diluted $0.25 $0.12 $0.69 $0.37
===== ===== ===== =====
Weighted average shares
- diluted 16,544 16,349 16,434 16,355
CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, July 31,
2009 2008
---- ----
Assets
Current assets $86,844 $84,561
Property and equipment, net 35,685 37,920
Intangible assets 36,824 41,254
Goodwill 112,187 113,958
Other assets 1,062 1,497
----- -----
$272,602 $279,190
======== ========
Liabilities and stockholders' equity
Current portion of long-term debt $9,500 $8,000
Other current liabilities 26,821 30,922
Long-term debt 39,800 50,300
Other long-term liabilities 18,619 21,256
Stockholders' equity 177,862 168,712
------- -------
$272,602 $279,190
======== ========
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 and nine
months ended April 30, 2009 and 2008, respectively, is as follows (in
thousands):
Three Months Ended Nine Months Ended
April 30, April 30,
------------------ -----------------
2009 2008 2009 2008
---- ---- ---- ----
Net income $4,183 $2,001 $11,290 $6,097
Income taxes 2,425 1,151 6,784 4,067
Interest expense 588 1,185 2,013 3,662
Interest income (24) (97) (132) (394)
Depreciation 1,562 1,515 4,637 4,490
Amortization 1,264 1,438 3,870 4,297
Loss on disposal of fixed assets - 31 22 80
--- --- --- ---
EBITDA 9,998 7,224 28,484 22,299
Stock-based compensation expense 784 489 1,829 1,483
--- --- ----- -----
EBITDAS $10,782 $7,713 $30,313 $23,782
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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.