Cantel Medical Reports 17.3% Increase in Net Income on 21.7% Increase in Sales

LITTLE FALLS, N.J., March 9, 2011 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 17.3% increase in net income to $5,720,000, or $0.33 per diluted share, on a 21.7% increase in sales to a record $81,021,000 for the second quarter ended January 31, 2011. This compares with net income of $4,876,000, or $0.29 per diluted share, on sales of $66,587,000 for the second quarter ended January 31, 2010. For the six months ended January 31, 2011, the Company reported net income of $10,695,000, or $0.62 per diluted share, on an 11.2% increase in sales to $153,014,000. This compares with net income of $11,044,000, or $0.65 per diluted share, on sales of $137,582,000 for the six months ended January 31, 2010.

Andrew Krakauer, Cantel’s President and CEO stated, “We are very pleased to have delivered record sales and one of the strongest quarterly earnings in the Company’s history. These positive results confirm the continued success of our three prong approach to growth which includes investing in new product development, sales and marketing programs and acquisitions. All of these strategies positively affected the results this quarter.”

Krakauer added, “As in the first quarter, our Endoscope Reprocessing business had remarkable performance as sales increased by nearly 70%, driven by shipments of our two newest reprocessors, the Advantage® Plus and the DSD Edge, as well as disinfectants and sterilants, parts and service. This accomplishment is a result of successful new product development, the effectiveness and quality of our sales and marketing teams, as well as improvements in hospital spending worldwide. Our Water Purification and Filtration segment had improved sales and operating income, partially aided by the results from the acquisition of Gambro’s United States water business completed in the first quarter. In our Healthcare Disposables segment, we showed modest core growth after adjusting for last year’s unusual sales derived from H1N1 flu preparedness. Furthermore, we acquired the sterilization monitoring business of ConFirm Monitoring Systems, Inc. on February 11, which brings a new dimension to our Healthcare Disposables product portfolio, adding sterilization monitoring services to our broad offering.”

The Company further reported that its balance sheet at January 31, 2011 included current assets of $100,985,000, including cash of $16,075,000, a current ratio of 1.6:1, debt of $27,500,000 and stockholders’ equity of $222,175,000. Krakauer stated, “The Company has a strong balance sheet and continues to generate significant cash flow and EBITDA. Our net debt position has been reduced during the quarter by 33%, or $5,621,000, to $11,425,000. EBITDAS for the quarter was $12,850,000.”

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 the dental industry, 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 second quarter ended January 31, 2011 on Wednesday, March 9, 2011 at 11:00 AM Eastern Time. To participate in the conference call, dial 1-877-407-8033 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 Wednesday, March 9, 2011 at 2:00 PM through midnight on May 9, 2011 by dialing 1-877-660-6853 and using passcode #286 and conference ID #368603.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=163652. 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.