LITTLE FALLS, N.J., March 10, 2016 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported record US GAAP net income of $15,389,000, or $0.37 per diluted share, on a 16.9% increase in sales to a record $158,271,000 for the second quarter ended January 31, 2016. This compares with net income of $11,085,000 or $0.27 per diluted share, on sales of $135,430,000 for the second quarter ended January 31, 2015. For the six months ended January 31, 2016, the Company reported record US GAAP net income of $29,643,000, or $0.71 per diluted share on a 14.6% increase in sales to a record $312,050,000. This compares with net income of $22,324,000, or $0.54 per diluted share, on sales of $272,241,000 for the six months ended January 31, 2015.
Under non-GAAP financial measures, adjusted net income this quarter increased 15.3% to $17,413,000, or $0.42 per diluted share, compared with adjusted net income of $15,097,000, or $0.36 per diluted share for the same quarter last year. For the six months ended January 31, 2016, the Company reported a 17.9% increase in adjusted net income to $34,533,000, or $0.83 per diluted share compared to adjusted net income for the six months ended January 31, 2015 of $29,282,000, or $0.70 per diluted share.
Andrew Krakauer, Cantel's Chief Executive Officer stated, "We are pleased to have delivered record sales and earnings performance this quarter. Our 16.9% reported sales growth can be broken down into strong organic growth of 12.1%, a 0.7% decline due to foreign currency translation, with acquisitions making up the remaining 5.5% demonstrating the continued success of our acquisition program. 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 continued investments in new product development, sales and marketing programs and the integration of recent acquisitions. We are also pleased to report gross margins improved approximately 100 basis points compared with the same quarter last year."
Krakauer added, "Our Endoscopy segment led sales growth for the company this quarter with a remarkable year-over-year increase of 38.1%, of which 26.5% was organic. This fast growing segment represented over 50% of Cantel's total revenue this quarter. All product categories in this segment were strong including procedure room products, reprocessing equipment, disinfectants, as well as service and spare parts. This was the first full quarter for 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 doing well and meeting our expectations.
Compared to the same quarter last year, sales in our Water Purification and Filtration unit grew by 2.1%. Organic sales growth of 0.9% in this segment was driven by increased shipments of commercial and industrial water purification equipment. We saw a good increase in orders and backlog during the quarter for our dialysis water purification equipment products. In our Healthcare Disposables segment, sales increased by 3.3% as compared to the same quarter last year. Organic sales growth was flat. On a positive note, we closed the acquisition of NAMSA's Sterility Assurance Products Division on March 1. This acquisition reflects our continued focus on sterility assurance as a key growth driver for our Healthcare Disposable segment. Overall, revenue growth in all our operating units drove improved operating earnings."
The Company further reported that its balance sheet at January 31, 2016 included current assets of $196,546,000, including cash of $21,604,000, a current ratio of 3:1, gross debt of $133,500,000 and stockholders' equity of $427,452,000. Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. Compared to the first six months of last year, Cash Flow from Operations and Adjusted EBITDAS grew by 50% and 19%, respectively to $28.3 million and $65.5 million, respectively."
Cantel Medical is a leading global company dedicated to delivering innovative infection prevention and control 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.
The Company will hold a conference call to discuss the results for the second quarter ended January 31, 2016 on Thursday, March 10, 2016 at 11:00 AM Eastern time. To participate in the conference call, dial (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 Thursday, March 10, 2016 at 2:00 PM through midnight on May 10, 2016 by dialing (877) 660-6853 and using conference ID # 13631451.
The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=174750. A replay of the webcast will be available on PrecisionIR for 90 days and via the investor relations page of the Cantel web site.
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.
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