Cantel Medical Corp. announced financial results for its third quarter ended April 30, 2019.
Strong double digit growth in Medical, organic growth returns in Dental
- Net sales of $228.6M, up 5.2%, with organic sales growth of 2.7%
- GAAP diluted EPS of $0.20, down 56.4%
- Non-GAAP diluted EPS of $0.55, down 7.5%
- GAAP net income of $8.2M, down 56.4%
- Non-GAAP net income of $23.0M, down 7.9%
LITTLE FALLS, N.J., June 4, 2019 /PRNewswire/ -- Cantel Medical Corp. (NYSE: CMD) today announced financial results for its third quarter ended April 30, 2019.
Third quarter 2019 net sales were $228.6M, up 5.2% compared to the prior year. Excluding the impact from foreign currency, net sales increased by 6.5%, driven by organic growth of 2.7%, and the impact from acquisitions of 3.8%.
Third quarter 2019 GAAP earnings per diluted share decreased 56.4% to $0.20, compared to GAAP earnings per diluted share of $0.45 in the prior year period. GAAP earnings per diluted share was negatively impacted by payments and related costs associated with executive leadership changes in the quarter.
Third quarter 2019 Non-GAAP earnings per diluted share decreased 7.5% to $0.55, compared to Non-GAAP earnings per diluted share of $0.60 in the prior year period.
This year the Company has made specific investments in the business that have had an impact on both GAAP and Non-GAAP earnings. The impact to GAAP and Non-GAAP diluted EPS from these investments is estimated to be a negative $0.11 per diluted share compared to the prior year period.
The Company’s balance sheet remains strong with ample capacity. The third quarter ended with cash of $51.3M and gross debt of $235.5M, while generating adjusted EBITDAS of $41.4M in the quarter, down 5.0%.
George Fotiades, President and Chief Executive Officer, stated, “We are pleased to report strong double-digit sales growth in both our Medical and Dental segments. Medical sales increased 12.2% organically, with total sales growth of 10.4%. Organic growth returned in Dental with an increase of 3.4%, offsetting general inventory adjustments at our channel partners earlier in the year. Dental sales grew 18.5% in total, driven by the acquisition of Omnia S.p.A. which closed earlier in the quarter. Life Sciences decreased 14.0%, due to continued softness in our Hemodialysis Water business, and the sale of our High Purity Water business in Canada in the prior quarter. Internationally, sales increased 12.6%, with 8.3% organic growth.”
Conference Call Information:
The Company will hold a conference call to discuss the results for its third quarter ended April 30, 2019 on Tuesday, June 4, 2019 at 9:30 a.m. Eastern 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 Tuesday, June 4, 2019 through midnight on July 4, 2019 by dialing 1-877-481-4010 (US & Canada) or 1-919-882-2331 (International) and using conference ID #: 49309.
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.
About Cantel Medical:
Cantel Medical is a leading global company dedicated to delivering innovative infection prevention products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives. Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates, hollow fiber membrane filtration and separation products. Additionally, we provide technical service for our products.
For further information, visit the Cantel website at www.cantelmedical.com.
This press release may contain “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, or forecasts about our businesses, the industries in which we operate, and the current beliefs and assumptions of management; they do not relate strictly to historical or current facts. Without limiting the foregoing, words or phrases such as “expect,” “anticipate,” “goal,” “project,” “intend,” “plan,” “believe,” “seek,” “may,” “could,” “aspire,” and variations of such words and similar expressions generally identify forward-looking statements. In addition, any statements that refer to predictions or projections of our future financial performance, anticipated growth, strategic objectives, performance drivers and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions about future events, activities or developments and are subject to numerous risks, uncertainties, and assumptions that are difficult to predict. We caution that undue reliance should not be placed on such forward-looking statements, which speak only as of the date made. Some of the factors which could cause results to differ from those expressed in any forward-looking statement are set forth under Item 1A of our 2018 Annual Report on Form 10-K, entitled Risk Factors. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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SOURCE Cantel Medical Corp.
Company Codes: NYSE:CMD