Cantel Medical Reports Results for Quarter Ended January 31, 2006; Sales - $61,624,000 vs. $49,536,000 - Increase of 24% for Quarter - $121,857,000 vs. $94,878,000 - Increase of 28% for Six Months.LITTLE FALLS Little Falls is the name of some places in the United States of America:
CANTEL MEDICAL CORP. (NYSE NYSE See: New York Stock Exchange :CMN CMN Common CMN Children's Miracle Network (since 1983; Salt Lake City, Utah) CMN Certificate of Medical Necessity CMN Canadian Museum of Nature CMN Community Mapping Network CMN Common Information ) reported net income of $3,929,000, or $0.24 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, on a 24% increase in sales to $61,624,000 for its second quarter ended January 31, 2006. This compares with net income of $3,875,000, or $0.24 per diluted share, on sales of $49,536,000 for the quarter ended January 31, 2005. For the six months ended January 31, 2006, the Company reported a 10% increase in net income to $7,675,000, or $0.47 per diluted share, on a 28% increase in sales to $121,857,000. This compares with net income of $6,982,000, or $0.44 per diluted share, on sales of $94,878,000 for the six months ended January 31, 2005. The increases in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were principally due to Crosstex, which was acquired on August 1, 2005. The results for the quarter were impacted by expenses of $343,000, net of tax, or $0.02 per diluted share, including one-time wind down costs of $136,000 related to the non- renewal of the Carsen distribution of Olympus products It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. The following is a partial, alphabetically-sorted list of products manufactured under the in Canada at July 31, 2006 (such wind down costs will continue throughout fiscal 2006) and $207,000 of stock-based compensation. Although not included in the 2005 quarter, stock-based compensation would have been $639,000, net of tax, or $0.04 per diluted share. After adjusting for one-time wind down expenses related to Carsen in fiscal 2006 and stock-based compensation expense in fiscal 2005, earnings per diluted share would have been $0.25 vs. $0.20 for the quarter ended January 31, 2006 and January 31, 2005, respectively. The results for the six months were impacted by expenses of $1,470,000, net of tax, or $0.09 per diluted share, including one-time wind down costs of $268,000 related to the non-renewal of the Carsen distribution of Olympus products in Canada at July 31, 2006 (such wind down costs will continue throughout fiscal 2006), $683,000 of expenses related to the acquisition of Crosstex in August 2005 and $519,000 of stock-based compensation. Although not included in the 2005 period, stock-based compensation would have been $1,099,000, net of tax, or $0.07 per diluted share. After adjusting for one-time wind down expenses related to Carsen in fiscal 2006, expenses related to the acquisition of Crosstex in fiscal 2006, and stock-based compensation expense in fiscal 2005, earnings per diluted share would have been $0.53 vs. $0.37 for the six month periods ended January 31, 2006 and 2005, respectively. The Company further reported that its balance sheet at January 31, 2006 included current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of $94,765,000, including cash of $19,722,000, a current ratio of 3.1:1, a ratio of funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. to equity of .48:1, net debt of $41,778,000 and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $129,030,000. The Company reported that its cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $8,706,000 for the six months ended January 31, 2006 compared with $7,997,000 for the six months ended January 31, 2005. On a diluted per share basis, such cash flow from operations was $0.53 and $0.50 for the six months ended January 31, 2006 and 2005, respectively. The Company further reported that its cash flow generated by net income, after adjusting for non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to depreciation and amortization and stock-based compensation expense, was $14,130,000 for the six months ended January 31, 2006 compared with $9,560,000 for the six months ended January 31, 2005, or $0.86 and $0.60 per diluted share, respectively. Mr. James P. Reilly, President and Chief Executive Officer of Cantel, commented, "We have been very pleased with the sizeable addition of Crosstex to the Cantel family. We continue to be impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: with the management team, the positioning of the company, and the overall encouraging performance of the business. Based upon the overall results for the first six months, we remain positive about the outlook for the balance of fiscal 2006." Reilly added, "However, we still must meet the challenges ahead, including the non-renewal of the Carsen distribution of Olympus products in Canada at July 31, 2006 and the continuing effects of the consolidation in the dialysis dialysis (dīăl`ĭsĭs), in chemistry, transfer of solute (dissolved solids) across a semipermeable membrane. Strictly speaking, dialysis refers only to the transfer of the solute; transfer of the solvent is called osmosis. industry. To meet these challenges, we will continue to concentrate on the growth, both organically and by acquisition, of our existing water purification  It has been suggested that , , and be merged into this article or section. and filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids , dental, endoscope endoscope, any instrument used to look inside the body. Usually consisting of a fiber-optic tube attached to a viewing device, endoscopes are used to explore and biopsy such areas as the colon and the bronchi of the lungs. reprocessing Reprocessing may refer to:
Cantel Medical Corp. is a leading provider of infection prevention and control products in the healthcare market. Our products include specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. medical device reprocessing systems for renal renal /re·nal/ (re´n'l) pertaining to the kidney. re·nal adj. Of or in the region of the kidneys. Renal Relating to the kidney. dialysis and endoscopy endoscopy Examination of the body's interior through an instrument inserted into a natural opening or an incision, usually as an outpatient procedure. Endoscopes include the upper gastrointestinal endoscope (for the esophagus, stomach, and duodenum), the colonoscope (for the , dialysate dialysate /di·al·y·sate/ (di-al´i-sat) the fluid and solutes in a dialysis process that flow through the dialyzer, do not pass through the membrane, and are discarded along with removed toxic substances after leaving the dialyzer. concentrates and other dialysis supplies, disposable infection control products primarily for the dental industry, endoscopy and surgical products, 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. The Company also sells scientific instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. products, provides technical maintenance for its products and offers 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, 2006 on Thursday, March 9, 2006 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 Thursday, March 9 at 2:00 PM through midnight on March 10, by dialing 1-877-660-6853 and using passcode #286 and conference ID #195515. The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.vcall.com/IC/CEPage.asp?ID=102256. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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.
CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months
Ended Six Months Ended
January 31, January 31,
----------------- ------------------
2006 2005 2006 2005
-------- -------- --------- --------
Net sales $61,624 $49,536 $121,857 $94,878
Cost of sales 38,760 30,715 75,846 58,842
-------- -------- --------- --------
Gross profit 22,864 18,821 46,011 36,036
Operating expenses:
Selling 6,094 5,814 12,511 11,222
General and administrative 8,113 5,367 16,224 10,817
Research and development 1,415 1,022 2,635 2,006
-------- -------- --------- --------
Total operating expenses 15,622 12,203 31,370 24,045
-------- -------- --------- --------
Income before interest and income
taxes 7,242 6,618 14,641 11,991
Interest expense - net 949 313 2,001 664
-------- -------- --------- --------
Income before income taxes 6,293 6,305 12,640 11,327
Income taxes 2,364 2,430 4,965 4,345
-------- -------- --------- --------
Net income $3,929 $3,875 $7,675 $6,982
======== ======== ========= ========
Earnings per common share -
diluted $0.24 $0.24 $0.47 $0.44
======== ======== ========= ========
Weighted average shares - diluted 16,370 16,182 16,411 16,044
CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 31, July 31,
2006 2005
----------- ---------
Assets
Current assets $94,765 $93,666
Property and equipment, net 35,550 22,661
Intangible assets 44,956 13,317
Goodwill 67,912 33,343
Other assets 2,003 1,353
----------- ---------
$245,186 $164,340
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Liabilities and stockholders' equity
Current portion of long-term debt $3,000 $15,750
Other current liabilities 28,042 26,901
Long-term debt 58,500 -
Other long-term liabilities 26,614 13,063
Stockholders' equity 129,030 108,626
----------- ---------
$245,186 $164,340
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