Cantel Medical Reports Record Performance on 15% Sales Increase with EPS of $0.25 vs. $0.24 ($0.22 as Adjusted) for Fourth Quarter

LITTLE FALLS, N.J., Sept. 26, 2013 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported record net income of $10,213,000, or $0.25 per diluted share, on a 15% increase in sales to a record $113,973,000 for the fourth quarter ended July 31, 2013. This compares with net income of $9,649,000,or $0.24 per diluted share, on sales of $98,693,000 for the fourth quarter ended July 31, 2012, inclusive of a $0.02 favorable tax benefit related to the closing of our Japan subsidiary.

For the fiscal year ended July 31, 2013, the Company reported record net income of $39,239,000, or $0.95 per diluted share, on a 10% increase in sales to $425,026,000, inclusive of $0.01 in net favorable adjustments related to acquisition accounting partially offset by severance and recruiting costs. This compares with net income of $31,337,000, or $0.77 per diluted share, on sales of $386,490,000 for the fiscal year ended July 31, 2012, inclusive of a $0.02 favorable tax benefit related to the closing of our Japan subsidiary and a $0.01 charge related to the impairment of an investment.

Andrew Krakauer, Cantel's President and CEO, stated, "We are pleased to have delivered record sales and earnings this quarter. We achieved good financial performance 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. Most importantly this quarter, we had strong organic sales growth of 10% with a total sales increase of over 15%."

Krakauer added, "Our Medivators Endoscopy business achieved record sales in the quarter with growth of 17%. All categories were strong, including equipment, disinfectant chemicals, procedural products, as well as service and spare parts. Our Mar Cor Water Purification and Filtration unit continued its excellent performance as it has all fiscal year with sales growth this quarter of 16%. Sales growth in this segment was led by increased shipments of central and portable water purification equipment. In our Crosstex Healthcare Disposables business, sales growth this quarter was 22% primarily due to the successful integration of the SPS Medical sterility assurance acquisition completed in November 2012. These substantial revenue increases drove the significantly improved operating earnings.

We are optimistic about Cantel's prospects to expand sales and increase profits in fiscal year 2014. We expect to benefit from past and additional significant sales and marketing investments, continued progress with new products, and from recent and future acquisitions."

The Company further reported that its balance sheet at July 31, 2013 included current assets of $150,660,000, including cash of $34,076,000, a current ratio of 2.5:1, gross debt of $95,000,000 and stockholders' equity of $321,132,000. Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. For the full fiscal year 2013, EBITDAS grew by 17% to $84,368,000. Our net debt position improved this quarter by over $13 million to $60,924,000. In the nine months since the purchase of SPS Medical, we have reduced net debt by over $28 million."

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, and specialty packaging for infectious and biological specimens. Additionally, we provide technical service for our products. 

The Company will hold a conference call to discuss the results for the fourth quarter ended July 31, 2013 on Thursday, September 26, 2013 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, September 26, 2013 at 2:00 PM through midnight on November 26, 2013 by dialing (877) 660-6853 and using conference ID #100313.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=171627. A replay of the webcast will be available on Vcall for 90 days and via the investor relations page of the Cantel website.

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. These statements involve a number of risks and uncertainties, including, without limitation, the risks detailed in Cantel's filings and reports with the Securities and Exchange Commission. Such forward-looking statements are only predictions, and actual events or results may differ materially from those projected or anticipated.

SOURCE Cantel Medical Corp.