CANTEL MEDICAL CORP.
150 Clove Road
Little Falls, New Jersey 07424
FOR IMMEDIATE RELEASE
Contact: | R. Scott Jones | | Richard E. Moyer | | |
| President and CEO | | Cameron Associates, Inc. | | |
| Cantel Medical Corp. | | richard@cameronassoc.com | | |
| Phone: 973-890-7220 | | Phone: 212-554-5466 | | |
CANTEL MEDICAL REPORTS EPS OF
$0.14 VS. $0.11 ON 9% INCREASE IN SALES
FOR QUARTER ENDED JANUARY 31, 2007
LITTLE FALLS, New Jersey (March 8, 2007) ... CANTEL MEDICAL CORP. (NYSE:CMN) reported income from continuing operations of $2,252,000, or $0.14 per diluted share, on a 9% increase in sales to $51,635,000 for its second quarter ended January 31, 2007. This compares with income from continuing operations of $1,874,000, or $0.11 per diluted share, on sales of $47,340,000 for the second quarter ended January 31, 2006. For the six months ended January 31, 2007, the Company reported income from continuing operations of $3,975,000, or $0.25 per diluted share, on a 7% increase in sales to $102,119,000. This compares with income from continuing operations of $4,092,000, or $0.25 per diluted share, on sales of $95,152,000 for the six months ended January 31, 2006.
The Company further reported that its balance sheet at January 31, 2007 included current assets of $73,707,000, including cash of $16,726,000, a current ratio of 2.7:1, a ratio of funded debt to equity of .25:1, debt of $36,000,000 and stockholders’ equity of $144,284,000.
Mr. R. Scott Jones, President and Chief Executive Officer of Cantel, commented, “We’re pleased with the Company’s progress in growing its core business of Infection Prevention and Control both organically and through acquisitions. As anticipated, we’ve begun to benefit from our investments in direct sales and service in Endoscope Reprocessing and supply-chain efficiencies in the Water Purification segment. Our operating performance showed significant improvement during the second quarter relative to the first quarter.”
Jones further commented, “Sales and earnings from acquisitions completed over the past 24 months have grown extensively since becoming a part of Cantel Medical. Given our track-record of successful integration and growth, we continue to actively search for acquisitions that complement our existing businesses or serve as platforms for growth via product line extensions. These will enhance our leadership in Infection Prevention and Control.”
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 second quarter ended January 31, 2007 on Thursday, March 8, 2007 at 11:00 AM Eastern time. To participate in the conference call, dial 1-877-407-9205 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, March 8 at 2:00 PM through midnight on March 9, by dialing 1-877-660-6853 and using passcode #286 and conference ID #233494. The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.vcall.com/IC/CEPage.asp?ID=114552. A replay of the webcast will be available on Vcall for 30 days.
For further information, visit the Cantel Web site at www.cantelmedical.com.
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the Company’s filings and reports with the Securities and Exchange Commission. Such statements are only predictions, and actual events or results may differ materially from those projected.
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CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
| | Three Months Ended | | Six Months Ended | |
| | January 31, | | January 31, | |
| | 2007 | | 2006 | | 2007 | | 2006 | |
Net sales: | | | | | | | | | |
Product sales | | $ | 46,263 | | $ | 43,300 | | $ | 91,534 | | $ | 87,141 | |
Product service | | 5,372 | | 4,040 | | 10,585 | | 8,011 | |
Total net sales | | 51,635 | | 47,340 | | 102,119 | | 95,152 | |
| | | | | | | | | |
Cost of sales: | | | | | | | | | |
Product sales | | 27,835 | | 27,522 | | 55,712 | | 54,564 | |
Product service | | 4,279 | | 2,980 | | 8,717 | | 5,789 | |
Total cost of sales | | 32,114 | | 30,502 | | 64,429 | | 60,353 | |
| | | | | | | | | |
Gross profit | | 19,521 | | 16,838 | | 37,690 | | 34,799 | |
| | | | | | | | | |
Expenses: | | | | | | | | | |
Selling | | 5,729 | | 4,114 | | 11,439 | | 8,627 | |
General and administrative | | 8,058 | | 7,268 | | 15,596 | | 14,488 | |
Research and development | | 1,222 | | 1,415 | | 2,388 | | 2,635 | |
Total operating expenses | | 15,009 | | 12,797 | | 29,423 | | 25,750 | |
| | | | | | | | | |
| | | | | | | | | |
Income from continuing operations before interest and income taxes | | 4,512 | | 4,041 | | 8,267 | | 9,049 | |
| | | | | | | | | |
Interest expense | | 759 | | 1,082 | | 1,522 | | 2,332 | |
Interest income | | (160 | ) | (149 | ) | (450 | ) | (361 | ) |
| | | | | | | | | |
| | | | | | | | | |
Income from continuing operations before income taxes | | 3,913 | | 3,108 | | 7,195 | | 7,078 | |
| | | | | | | | | |
Income taxes | | 1,661 | | 1,234 | | 3,220 | | 2,986 | |
| | | | | | | | | |
Income from continuing operations | | 2,252 | | 1,874 | | 3,975 | | 4,092 | |
| | | | | | | | | |
Income from discontinued operations, net of tax | | 18 | | 2,191 | | 263 | | 3,851 | |
| | | | | | | | | |
, | | | | | | | | | |
Loss on disposal of discontinued operations net of tax | | — | | (136 | ) | — | | (268 | ) |
| | | | | | | | | |
Net income | | $ | 2,270 | | $ | 3,929 | | $ | 4,238 | | $ | 7,675 | |
| | | | | | | | | |
Earnings per common share - diluted | | | | | | | | | |
Continuing operations | | $ | 0.14 | | $ | 0.11 | | $ | 0.25 | | $ | 0.25 | |
Discontinued operations | | — | | 0.14 | | 0.01 | | 0.23 | |
Loss on disposal of discontinued operations | | — | | (0.01 | ) | — | | (0.01 | ) |
Net income | | $ | 0.14 | | $ | 0.24 | | $ | 0.26 | | $ | 0.47 | |
| | | | | | | | | |
Weighted average shares - diluted | | 16,064 | | 16,370 | | 16,052 | | 16,411 | |
CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| | January 31, | | July 31, | |
| | 2007 | | 2006 | |
Assets | | | | | |
Current assets | | $ | 73,707 | | $ | 82,448 | |
Property and equipment, net | | 38,430 | | 38,104 | |
Intangible assets | | 40,821 | | 43,219 | |
Goodwill | | 72,157 | | 72,571 | |
Other assets | | 1,755 | | 1,885 | |
| | $ | 226,870 | | $ | 238,227 | |
| | | | | |
Liabilities and stockholders’ equity | | | | | |
Current portion of long-term debt | | $ | 5,000 | | $ | 4,000 | |
Other current liabilities | | 22,152 | | 35,097 | |
Long-term debt | | 31,000 | | 34,000 | |
Other long-term liabilities | | 24,434 | | 24,325 | |
Stockholders’ equity | | 144,284 | | 140,805 | |
| | $ | 226,870 | | $ | 238,227 | |
