LITTLE FALLS, N.J., Oct. 11, 2012 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported record net income of $9,649,000, or $0.35 per diluted share, on a 15% increase in sales to a record $98,693,000 for the fourth quarter ended July 31, 2012, inclusive of a $0.04 favorable tax benefit related to the closing of our Japan subsidiary. This compares with net income of $4,682,000, or $0.18 per diluted share, on sales of $86,018,000 for the fourth quarter ended July 31, 2011, inclusive of approximately $0.02 of expenses related to acquisitions.
For the fiscal year ended July 31, 2012, the Company reported net income of $31,337,000, or $1.15 per diluted share, on a 20% increase in sales to $386,490,000, inclusive of a $0.04 favorable tax benefit related to the closing of our Japan subsidiary and a $0.02 charge related to the impairment of an investment. This compares with net income of $20,425,000, or $0.79 per diluted share, on sales of $321,651,000 for the fiscal year ended July 31, 2011, inclusive of approximately $0.03 of acquisition related expenses.
Andrew Krakauer, Cantel's President and CEO, stated, "We are pleased to have delivered record sales and earnings this quarter. We continued to achieve good financial performance growth in our three major business segments -- Endoscopy, Water Purification and Filtration, and Healthcare Disposables. All three business units have greatly benefited from further investments in new product development, sales and marketing programs and the full integration of recent acquisitions for this quarter and for the full year. Most importantly this quarter, gross margins increased by over 6 percentage points to 43.3%, driven by the effective integration of acquisitions, greater sales of higher margin products and improved operating efficiencies."
Krakauer added, "Our Medivators Endoscopy business continued its excellent performance this fiscal year as sales increased 35% for the quarter and 50% for the full year, led by sales of our newly acquired Byrne Medical business. Core operating profit in this segment more than doubled for the quarter and the full year. Byrne products showed core growth of over 25% for the year. Not only has this acquisition significantly enhanced revenue growth, overall margins and earnings this fiscal year, but it provides great momentum for future growth, as we expand our sales and marketing of these products worldwide in fiscal year 2013 under the Medivators brand. We are also in the process of launching a number of important new products in this segment. Further, we were pleased that on September 27, 2012, we received FDA 510(k) clearance of our newest reprocessing high level disinfectant chemistry, Rapicide® OPA-28.
Cantel's two other largest business segments also performed well. In our Water Purification and Filtration segment, sales were 9% higher for the quarter and 12% for the year. More importantly, with the effective integration of the Gambro Water acquisition, shipments of higher margin products and a general focus on margin improvements, operating profit increased in this segment by over 40% in the quarter and 50% for the year. In our Healthcare Disposables unit, operating profit for the quarter and year increased by 26% and 30%, respectively, due to gross margin improvements, as sales increased by 1% and 9%, respectively.
I am optimistic about Cantel's prospects to expand sales and increase profits in fiscal year 2013. We expect to benefit from leveraging our significant sales and marketing investments, continued progress with new products, and from past and future acquisitions."
The Company further reported that its balance sheet at July 31, 2012 included current assets of $133,892,000, including cash of $30,186,000, a current ratio of 2.43:1, gross debt of $90,000,000 and stockholders' equity of $275,936,000. Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. When compared with the same quarter last year, our EBITDAS grew by 74% to $19,191,000. Our net debt position improved this quarter by over $15 million to $59,814,000. For the full fiscal year 2012, we have reduced net debt by almost $44 million."
Cantel Medical Corp. (NYSE:CMN) is a leading provider of infection prevention and control products in the healthcare market. Our products include water purification equipment, sterilants, disinfectants and cleaners, specialized medical device reprocessing systems for endoscopy and renal dialysis, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates and other dialysis supplies, 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 fourth quarter ended July 31, 2012 on Thursday, October 11, 2012 at 11:00 AM Eastern Time. To participate in the conference call, dial (877) 407-8033 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, October 11, 2012 at 2:00 PM through midnight on December 11, 2012 by dialing (877) 660-6853 and using conference ID # 401299.
The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=169863. A replay of the webcast will be available on Vcall for 90 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.