Cantel Medical Reports Record Financial Results for its Second Quarter Fiscal Year 2018
LITTLE FALLS, N.J., March 8, 2018 /PRNewswire/ -- Cantel Medical Corporation (NYSE: CMD) today announced financial results for its second quarter ended January 31, 2018.
Jørgen B. Hansen, President and Chief Executive Officer, stated, "We are pleased to report record sales and earnings performance this quarter. Our 15.3% reported sales increase was driven by organic growth of 10.0%, the impact from acquisitions of 4.2%, and a favorable impact from foreign currency of 1.1%. We continue to outperform internationally where sales were up 43.0% overall, while our US business had a strong quarter with 7.9% growth."
Endoscopy sales grew 23.6%, with strong organic growth of 13.8%, showing continued performance across our core product lines. Recurring revenue for this segment was up 20.9%, and favorable product mix drove margin rate expansion. Reported sales in Water Purification and Filtration increased 7.4%, as a strong backlog translated into increased shipments for the quarter. Healthcare Disposables reported strong year over year growth of 6.2%, with 5.5% organic, driven by the strategic branded portfolio which grew by 9.2%.
The Company's balance sheet continues to generate significant cash flow and EBITDAS. The second quarter ended with cash of $40.0M and gross debt of $160.0M, while generating adjusted EBITDAS of $45.9M in the quarter, up 16.2%.
As a result of the federal Tax Cuts and Jobs Act, the Company's tax rate decreased in the quarter, and the Company had a net benefit comprised of the favorable one-time benefit related to a revaluation of our net deferred tax liabilities, partially offset by the unfavorable impact related to the mandatory transition tax for deemed repatriation of deferred foreign income. The Company plans to release updated guidance for fiscal year 2018, along with the expected full year effective tax rate during the quarterly earnings call.
Conference Call Information:
The Company will hold a conference call to discuss the results for its second quarter ended January 31, 2018 on Thursday, March 8, 2018 at 11:00 a.m. Eastern Standard Time.
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, March 8, 2018 through midnight on April 8, 2018 by dialing 1-877-481-4010 (US & Canada) or 1-919-882-2331 (International) and using conference ID #: 26091.
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.