Cantel Medical Q4 Profit Up 5%, Meets View

(RTTNews) - Cantel Medical Corp. (CMN), a provider of infection prevention and control products, on Monday reported a 5 percent increase in profit for the fourth quarter from last year on double-digit growth in revenues that was partly offset by higher operating expenses.

Earnings per share for the quarter matched analysts' expectations. Looking ahead, Cantel Medical said it is optimistic about its prospects to grow sales and increase profits in fiscal year 2015.

The Little Falls, New Jersey-based company's net income for the fourth quarter was $10.71 million or $0.26 per share, up from $10.21 million or $0.25 per share in the prior-year quarter.

The latest quarter's results include $0.02 per share for charges related to acquisition and CFO retirement costs.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 15 percent to $131.38 million from $113.97 million in the same period last year.

Total operating expenses for the quarter increased 20 percent to $39.47 million from $32.98 million in the year-ago period.

Andrew Krakauer, Cantel Medical's President and CEO said, "We achieved significant revenue growth in our three major business segments - Endoscopy, Water Purification and Filtration, and Healthcare Disposables. All three business units have greatly benefited from further investments in new product development, sales and marketing programs and the integration of recent acquisitions for this quarter and for the full year."

Cantel Medical noted that its Medivators Endoscopy business led sales growth for the company in the latest quarter with a year-over-year increase of 23 percent, of which 20 percent was organic.

The Mar Cor Water Purification and Filtration unit achieved sales growth of 14 percent in the quarter, of which 11 percent was organic. Sales in the segment were led by increased shipments of central and portable water purification equipment.

In the Crosstex Healthcare Disposables segment, sales grew 6 percent for the quarter, all of which was organic.

For fiscal 2014, Cantel Medical's net income increased to $43.27 million or $1.04 per share from $39.24 million or $0.95 per share in the prior year. Net sales for the year grew 15 percent to $488.75 million from $425.03 million last year.

Street expected the company to earn $1.05 per share for the year.

Looking ahead, Cantel Medical said it is optimistic about its prospects to grow sales and increase profits in fiscal year 2015. The company expects to benefit from its significant prior and ongoing investments in sales and marketing, continued progress with new products, as well as from recent and future acquisitions.

CMN is trading at $34.58, down $0.59 or 1.68 percent on a volume of 3,118 shares.