Cantel Medical Corp (CMN)
To play doctor all you need is a stethoscope, but for the real thing you need to worry about serious problems like infections. Cantel makes devices like sterilants and filters to stave off infection.
Cantel Medical Reports 85% Increase in Net Income - EPS of $0.37 vs. $0.20 - for Quarter Ended October 31, 2009 on 10% Sales Increase
According to
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,
The Company also reported that its balance sheet at
The Company will hold a conference call to discuss the results for the first quarter ended
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 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
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
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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
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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
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Earnings per common share - diluted $0.37 $0.20
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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
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$280,132 $277,871
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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
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$280,132 $277,871
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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
endedOctober 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
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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
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