Cantel Medical Reports Financial Results For The Third Quarter Ended April 30, 2017
LITTLE FALLS, N.J., June 8, 2017 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMD) reported GAAP net income of $17,511,000, or $0.42 per diluted share, on a 10.6% increase in sales to $192,113,000 for the third quarter ended April 30, 2017. This compares with net income of $14,019,000, or $0.34 per diluted share, on sales of $173,703,000 for the third quarter ended April 30, 2016.
Non-GAAP net income increased 17.2% for the third quarter ended April 30, 2017 to $21,377,000, or $0.51 per diluted share, compared with non-GAAP net income of $18,243,000, or $0.44 per diluted share, for the same quarter last year.
Jørgen B. Hansen, Cantel's President and Chief Executive Officer stated, "We are pleased to report very solid sales growth and earnings performance this quarter. Our 10.6% reported sales growth was driven by organic growth of 7.4%, acquisitions contributed 4.4% and foreign currency impact of (1.2%). We saw record performance internationally, where sales were up 18.1% overall, with strong underlying organic growth. Gross margin expanded 140 basis points to 47.6% driven by a strategic focus on driving favorable product mix as well as our strong execution of our continuous improvement efforts."
Hansen added, "For the third consecutive quarter, our Healthcare Disposables segment yielded our strongest sales growth, up 21.5% with the majority of growth driven by the Accutron acquisition. Favorable product mix coupled with double-digit growth of our higher margin branded portfolio drove gross margin expansion in this segment.
Our Endoscopy segment had strong organic growth of 9.9%, which was an excellent result given the very strong performance in the prior year. Sales performance was led by continued growth in consumables, chemistries, procedural products, and service, up 13.2%. In April, we successfully completed the acquisition of our distributed endoscopy business in Australia. We look forward to future growth in Australia as well as strengthening our leadership in the infection prevention category in this important market.
Overall sales in our Water Purification and Filtration segment increased 7.4%, which is in-line with our expectations. The continued strength of our backlog translated into solid shipments of equipment, which drove the majority of the growth over prior year. Order intake remained strong in the third quarter, and our backlog ended at a record level for the fourth consecutive quarter, positioning us well for the remainder of fiscal year 2017.
The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. We finished the third quarter with cash of $30,873,000 and gross debt of $145,000,000, while generating adjusted EBITDAS of $38,813,000 in the quarter, up 11.5%."
Conference Call Information
The Company will hold a conference call to discuss the results for the third quarter ended April 30, 2017 on Thursday, June 8, 2017 at 11:00 a.m. Eastern time. In addition, during the conference call the Company will provide financial guidance with respect to its five-year strategic plan and for the full fiscal year ending July 31, 2017.
To participate in the conference call, dial 1-877-407-8033 (US & Canada) or 1-201-689-8033 (International) 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, June 8, 2017 through midnight on August 8, 2017 by dialing 1-877-481-4010 (US & Canada) or 1-919-882-2331 (International) and using conference ID #:10405
An audio webcast will be available via the Cantel website at www.cantelmedical.com. A replay of the presentation will be archived on the Cantel web site for those unable to listen live. In addition, the Company will provide a supplemental presentation to complement the conference call. The presentation can be accessed on Cantel's website in the Investor Relations section under presentations.
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