LITTLE FALLS, N.J., June 9, 2015 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported US GAAP net income of $12,356,000, or $0.30 per diluted share, on an 18% increase in sales to a record $141,508,000 for the third quarter ended April 30, 2015. This compares with net income of $10,249,000, or $0.25 per diluted share, on sales of $120,058,000 for the third quarter ended April 30, 2014. For the nine months ended April 30, 2015, the Company reported US GAAP net income of $34,680,000, or $0.83 per diluted share, on a 16% increase in sales to a record $413,749,000. This compares with net income of $32,560,000 or $0.79 per diluted share, on sales of $357,372,000 for the nine months ended April 30, 2014.
Under non-GAAP measures, adjusted net income increased 19% this quarter to $14,697,000, or $0.35 per diluted share compared to adjusted net income of $12,315,000, or $0.30 per diluted share for the same quarter last year. For the nine months ended April 30, 2015, the Company reported a 16% increase in adjusted net income to $43,979,000, or $1.06 per diluted share. This compares to adjusted net income for the nine months ended April 30, 2014 of $37,926,000, or $0.92 per diluted share.
Andrew Krakauer, Cantel’s Chief Executive Officer stated, “We are pleased to have delivered excellent sales and net income growth this quarter. We achieved strong growth in operating income in our two largest segments - Endoscopy and Water Purification and Filtration. All business units have greatly benefitted from further investments in new product development, sales and marketing programs, and the integration of recent acquisitions. Overall, we had solid organic sales growth of approximately 10%, while our total sales growth of 18% demonstrates the success of our acquisition program.”
Krakauer added, “Our Medivators Endoscopy business delivered robust organic sales growth of 17% in the quarter. Including our recently acquired businesses in the UK and Italy, sales in this segment grew 35%. All product categories in our core Endoscopy business were strong, including equipment, disinfectant chemicals, procedure room products, as well as service and spare parts. Our European acquisitions are being integrated effectively and will soon be launching a number of new highly strategic products which will further strengthen our competitive offering in Europe. Our Mar Cor Water Purification and Filtration segment delivered organic sales growth this quarter of 13.5%, and reported growth of 17.5% overall, including sales from the recently acquired Pure Water Solutions business. Growth this quarter was driven by strength in capital equipment shipments, as well as solid performance in consumables and service.
Sales in our Crosstex Healthcare Disposables business decreased by 3% in the quarter as the business dealt with a number of headwinds including reduced dental office visits, as well as some over stocking at some distributors after strong first half shipments. However, for the nine months of fiscal 2015, sales are ahead of the prior period by 4%. We were pleased to announce the acquisition of the DentaPure Dental Waterline Disinfection System on February 23, 2015. This product line will enhance our leadership position in infection prevention and control in the dental industry.
Overall, significant revenue growth drove the improved operating earnings. In the quarter, our earnings reflected three significant items that netted no change to GAAP or adjusted earnings. These items included positive fair value adjustments, offset by unfavorable charges related to a licensed product and the loss on sale of our specialty packaging business. Details can be found in our 10-Q to be released later today.”
The Company’s balance sheet at April 30, 2015 included current assets of $181,149,000, including cash of $25,365,000, a current ratio of 2.7:1, gross debt of $91,500,000 and stockholders’ equity of $394,215,000. Krakauer stated, “We continue to maintain a strong balance sheet and generate substantial cash flow and EBITDAS. When compared with the same quarter last year, our adjusted EBITDAS grew by 19% to $27,946,000. Our net debt position increased by only $17 million to $66,135,000 during the first nine months of fiscal 2015 despite borrowings of $47 million to fund our acquisition program.”
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, and 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 third quarter ended April 30, 2015 on Tuesday, June 9, 2015 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 Tuesday, June 9, 2015 at 2:00 PM through midnight on August 9, 2015 by dialing (877) 660-6853 and using conference ID # 13611020.
The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=174054. 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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