LITTLE FALLS, N.J., Dec. 10, 2015 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE:CMN) reported record US GAAP net income of $14,254,000 or $0.34 per diluted share, on a 12.4% increase in sales to a record $153,779,000 for the first quarter ended October 31, 2015. This compares with net income of $11,239,000, or $0.27 per diluted share, on sales of $136,811,000 for the first quarter ended October 31, 2014.
Under non-GAAP financial measures, adjusted net income increased 21% this quarter to $17,120,000, or $0.41 per diluted share, compared with adjusted net income of $14,185,000, or $0.34 per diluted share for the same quarter last year.
Andrew Krakauer, Cantel’s Chief Executive Officer stated, “We are pleased to have delivered record sales and earnings performance this quarter. The majority of this quarter’s excellent performance was driven by the Endoscopy business. All three of our major business units including Water Purification and Filtration and Healthcare Disposables, in addition to Endoscopy have greatly benefited from further investments in new product development, sales and marketing programs and the integration of recent acquisitions. Our 12.4% reported sales growth can be broken down into strong organic growth of 7.8%, a 0.5% headwind due to foreign currency translation, with acquisitions making up the remaining 5.1% demonstrating the continued success of our acquisition program. We are also pleased to report gross margins improved approximately 200 basis points compared with the same quarter last year.”
Krakauer added, “Our Endoscopy segment led sales growth for the company this quarter with a robust year-over-year increase of 28.1%, of which 17.9% was organic. This fast growing segment now represents 47% of Cantel total revenue. The strongest product categories in this segment were disinfectant chemistries, procedure room products, as well as service and spare parts. We reported six weeks of sales this quarter from our newly acquired United Kingdom based Medical Innovations Group Holdings Limited business. We are pleased that sales in this leading global provider of endoscope storage and transport systems are exceeding our expectations.
Sales in our Water Purification and Filtration unit grew by 5.5% this quarter. Organic sales growth of 2.2% in this segment was driven by increased shipments of sterilants, therapeutic filters and commercial and industrial water purification equipment. In our Healthcare Disposables segment, sales declined by 6.8% this quarter as compared to the same quarter last year. As we reported last year, this business experienced unusually high shipments a year ago as a result of the Ebola epidemic as well as large customer orders in advance of an announced price increase.
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