EX-99.1 2 cantelfy19q4ex991.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
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 Cantel Medical Reports Financial Results for its Fourth Quarter Fiscal Year 2019
Strong fourth quarter in Medical and Dental closes year in line with management expectations
Net sales of $239.5M, up 4.6%, with organic sales growth of 3.4%
GAAP net income of $8.8M, down 47.7%
Non-GAAP net income of $26.5M, up 3.4%
GAAP diluted EPS of $0.21, down 48.1%
Non-GAAP diluted EPS of $0.63, up 3.0%
Full year sales of $918.2M, up 5.3% with organic sales growth of 3.9%
Full year GAAP diluted EPS of $1.32, down 39.6%
Full year Non-GAAP diluted EPS of $2.37, down 5.4%
Little Falls, New Jersey - (September 23, 2019) - Cantel Medical Corp. (NYSE: CMD) today announced financial results for its fourth quarter ended July 31, 2019.
 
Fourth quarter 2019 net sales were $239.5M, up 4.6% compared to the prior year. Excluding the impact from foreign currency, net sales increased by 5.6%, driven by organic growth of 3.4%, and the impact from acquisitions net of dispositions of 2.2%.

Fourth quarter 2019 GAAP earnings per diluted share decreased 48.1% to $0.21, compared to GAAP earnings per diluted share of $0.41 in the prior year period. GAAP earnings per diluted share were negatively impacted by acquisition-related expenses in the quarter.

Fourth quarter 2019 Non-GAAP earnings per diluted share increased 3.0% to $0.63, compared to Non-GAAP earnings per diluted share of $0.62 in the prior year period.

This year the Company has made specific investments in the business which impacted both GAAP and Non-GAAP earnings. The impact to GAAP and Non-GAAP diluted EPS from these investments was estimated to be a negative $0.09 per diluted share in the current quarter compared to the prior year period.

The fourth quarter ended with cash of $44.5M and gross debt of $233.0M, while generating adjusted EBITDAS of $47.1M in the quarter, up 6.0%.

George Fotiades, President and Chief Executive Officer, stated, “We are pleased to report strong sales growth in both our Medical and Dental segments. Medical sales increased 9.8% organically, with total sales growth of 8.2%. Organic growth returned in Dental with an increase of 0.8%, compared to a record fourth quarter in the prior fiscal year. Dental sales grew 17.2% in total, driven by the acquisition of Omnia S.p.A. which closed in the previous quarter. Life Sciences decreased 11.8% due to continued softness in our Hemodialysis Water business, and the sale of our High Purity Water business in Canada earlier in the year. Internationally, sales increased 12.9%, with 9.9% organic growth.”

In the fourth quarter, the Company announced the acquisition of Hu-Friedy, a premier global dental instrumentation and instrument management system manufacturer. This acquisition meaningfully accelerates Cantel’s strategy to be a leading global provider of innovative infection prevention and reprocessing workflow solutions. We expect this transaction to close in the first quarter of our fiscal year 2020.

The Company intends to release fiscal year 2020 guidance on its fourth quarter earnings call.

Conference Call Information:
The Company will hold a conference call to discuss the results for its fourth quarter ended July 31, 2019 on Monday, September 23, 2019 at 8:30 a.m. Eastern Daylight Time.
 




To participate in the conference call, dial 1-844-369-8770 (U.S. & Canada) or 1-862-298-0840 (International) 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 Monday, September 23, 2019 through 8:30 a.m. Eastern Daylight Time on October 23, 2019 by dialing 1-877-481-4010 (U.S. & Canada) or 1-919-882-2331 (International) and using conference ID #: 53658.
 
An audio webcast will be available via the Cantel website at www.cantelmedical.com. A replay of the presentation will be archived on the Cantel web site for those unable to listen live. In addition, the Company will provide a supplemental presentation to complement the conference call. The presentation can be accessed on Cantel’s website in the Investor Relations section under presentations.

About Cantel Medical:
Cantel Medical is a leading global company dedicated to delivering innovative infection prevention 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.
 
For further information, visit the Cantel website at www.cantelmedical.com.
 
This press release may contain “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, or forecasts about our businesses, the industries in which we operate, and the current beliefs and assumptions of management; they do not relate strictly to historical or current facts. Without limiting the foregoing, words or phrases such as “expect,” “anticipate,” “goal,” “project,” “intend,” “plan,” “believe,” “seek,” “may,” “could,” “aspire,” and variations of such words and similar expressions generally identify forward-looking statements. In addition, any statements that refer to predictions or projections of our future financial performance, anticipated growth, strategic objectives, performance drivers and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions about future events, activities or developments and are subject to numerous risks, uncertainties, and assumptions that are difficult to predict. We caution that undue reliance should not be placed on such forward-looking statements, which speak only as of the date made. Some of the factors which could cause results to differ from those expressed in any forward-looking statement are set forth under Item 1A, “Risk Factors” of our 2019 Annual Report on Form 10-K. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
 
Contact:
Matthew Micowski
 
VP, FP&A and Investor Relations
 
mmicowski@cantelmedical.com
 
Phone: (973) 774-7455




CANTEL MEDICAL CORP.
Condensed Consolidated Statements of Income
(Unaudited)
 
 
Three Months Ended
 
Twelve Months Ended
 
July 31,
 
July 31,
 
2019
 
2018
 
2019
 
2018
Net sales
$
239,476

 
$
228,854

 
$
918,155

 
$
871,922

 
 
 
 
 
 
 
 
Cost of sales
128,823

 
121,451

 
490,701

 
457,951

 
 
 
 
 
 
 
 
Gross profit
110,653

 
107,403

 
427,454

 
413,971

 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
Selling
36,999

 
33,868

 
140,232

 
129,642

General and administrative
49,856

 
35,951

 
172,383

 
138,019

Research and development
8,965

 
7,103

 
31,320

 
24,646

Total operating expenses
95,820

 
76,922

 
343,935

 
292,307

 
 
 
 
 
 
 
 
Income from operations
14,833

 
30,481

 
83,519

 
121,664

 
 
 
 
 
 
 
 
Interest expense, net
2,763

 
1,467

 
9,505

 
5,289

Other income
8

 

 
(1,305
)
 
(1,138
)
 
 
 
 
 
 
 
 
Income before income taxes
12,062

 
29,014

 
75,319

 
117,513

 
 
 
 
 
 
 
 
Income taxes
3,237

 
12,126

 
20,277

 
26,472

 
 
 
 
 
 
 
 
Net income
$
8,825

 
$
16,888

 
$
55,042

 
$
91,041

 
 
 
 
 
 
 
 
Earnings per common share - diluted
$
0.21

 
$
0.41

 
$
1.32

 
$
2.18

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.10

 
$
0.09

 
$
0.20

 
$
0.17

 
 
 
 
 
 
 
 
Weighted average shares - diluted
41,823,577

 
41,667,741

 
41,757,116

 
41,635,078



(dollar amounts in thousands except share and per share data or as otherwise specified)



CANTEL MEDICAL CORP.
Condensed Consolidated Balance Sheets
(Unaudited)
 
 
July 31,
2019
 
July 31,
2018
Assets
 

 
 

Cash and cash equivalents
$
44,535

 
$
94,097

Accounts receivable, net
146,910

 
118,642

Inventories, net
138,234

 
107,592

Prepaid expenses and other current assets
20,920

 
17,912

Income taxes receivable
1,197

 

Property and equipment, net
185,242

 
111,417

Intangible assets, net
141,513

 
137,361

Goodwill
378,109

 
368,027

Other assets
9,425

 
5,749

Deferred income taxes
4,281

 
2,911

Total assets
$
1,070,366

 
$
963,708

 
 
 
 
Liabilities and stockholders’ equity
 
 
 
Current liabilities
$
151,400

 
$
134,783

Long-term debt
220,851

 
187,302

Deferred income taxes
29,278

 
27,624

Other long-term liabilities
7,300

 
5,132

Stockholders’ equity
661,537

 
608,867

Total liabilities and stockholders' equity
$
1,070,366

 
$
963,708



(dollar amounts in thousands except share and per share data or as otherwise specified)




Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
Twelve Months Ended July 31,
 
2019
 
2018
Cash flows from operating activities
 

 
 

Net income
$
55,042

 
$
91,041

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

Depreciation
21,510

 
17,473

Amortization
20,849

 
17,357

Stock-based compensation expense
15,562

 
9,615

Deferred income taxes
(2,062
)
 
(7,520
)
Other non-cash items, net
(1,940
)
 
1,076

Changes in assets and liabilities, net of effects of business acquisitions
(42,030
)
 
(3,130
)
Net cash provided by operating activities
66,931

 
125,912

 
 
 
 
Cash flows from investing activities
 

 
 

Capital expenditures
(95,438
)
 
(37,698
)
Proceeds from sale of business
3,053

 

Acquisition of businesses, net of cash acquired
(40,644
)
 
(87,488
)
Net cash used in investing activities
(133,029
)
 
(125,186
)
 
 
 
 
Cash flows from financing activities
 

 
 

Proceeds from issuance of long-term debt

 
200,000

Repayments of long-term debt
(15,207
)
 

Borrowings under revolving credit facility
50,000

 
82,300

Repayments under revolving credit facility
(7,000
)
 
(208,300
)
Debt issuance costs

 
(2,698
)
Dividends paid
(8,350
)
 
(7,091
)
Purchases of treasury stock
(4,741
)
 
(7,074
)
Net cash provided by (used in) financing activities
14,702

 
57,137

 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
1,834

 
(350
)
 
 
 
 
Increase in cash and cash equivalents
(49,562
)
 
57,513

Cash and cash equivalents at beginning of period
94,097

 
36,584

Cash and cash equivalents at end of period
$
44,535

 
$
94,097


(dollar amounts in thousands except share and per share data or as otherwise specified)



SUPPLEMENTARY INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
 
In evaluating our operating performance, we supplement the reporting of our financial information determined under generally accepted accounting principles in the United States (“GAAP”) with certain non-GAAP financial measures including (i) non-GAAP net income, (ii) non-GAAP earnings per diluted share (“EPS”), (iii) earnings before interest, taxes, depreciation, amortization, loss on disposal of fixed assets, and stock-based compensation expense (“EBITDAS”), (iv) adjusted EBITDAS, (v) net debt and (vi) organic sales. These non-GAAP financial measures are indicators of our performance that are not required by, or presented in accordance with, GAAP. They are presented with the intent of providing greater transparency to financial information used by us in our financial analysis and operational decision-making. We believe that these non-GAAP measures provide meaningful information to assist investors, stockholders and other readers of our consolidated financial statements in making comparisons to our historical operating results and analyzing the underlying performance of our results of operations. These non-GAAP financial measures are not intended to be, and should not be, considered separately from, or as an alternative to, the most directly comparable GAAP financial measures.

To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of our past and future performance and are therefore excluded to allow investors to better understand underlying operating trends. The following are examples of the types of adjustments that are excluded: (i) amortization of purchased intangible assets, (ii) acquisition-related items, (iii) business optimization and restructuring-related charges, (iv) certain significant and discrete tax matters and (v) other significant items management deems irregular or non-operating in nature.

Amortization expense of purchased intangible assets is a non-cash expense related to intangibles that were primarily the result of business acquisitions. Our history of acquiring businesses has resulted in significant increases in amortization of intangible assets that reduce our net income. The removal of amortization from our overall operating performance helps in assessing our cash generated from operations including our return on invested capital, which we believe is an important analysis for measuring our ability to generate cash and invest in our continued growth.
 
Acquisition-related items consist of (i) fair value adjustments to contingent consideration and other contingent liabilities resulting from acquisitions, (ii) due diligence, integration, legal fees and other transaction costs associated with our acquisition program and (iii) acquisition accounting charges for the amortization of the initial fair value adjustments of acquired inventory and deferred revenue. The adjustments of contingent consideration and other contingent liabilities are periodic adjustments to record such amounts at fair value at each balance sheet date. Given the subjective nature of the assumptions used in the determination of fair value calculations, fair value adjustments may potentially cause significant earnings volatility that are not representative of our operating results. Similarly, due diligence, integration, legal and other acquisition costs associated with our acquisition program, including accounting charges relating to recording acquired inventory and deferred revenue at fair market value, can be significant and also adversely impact our effective tax rate as certain costs are often not tax-deductible. Since these acquisition-related items are irregular and often mask underlying operating performance, we exclude these amounts for purposes of calculating these non-GAAP financial measures to facilitate an evaluation of our current operating performance and a comparison to past operating performance.

Restructuring-related and business optimization items consist of severance-related costs associated with work force reductions and other restructuring-related activities. Such costs include (i) salary continuation, (ii) bonus payments, (iii) outplacement services, (iv) medical-related premium costs and (v) accelerated stock-compensation costs.
    
Excess tax benefits resulting from stock compensation are recorded as an adjustment to income tax expense. The magnitude of the impact of excess tax benefits generated in the future, which may be favorable or unfavorable, are dependent upon our future grants of equity awards, our future share price on the date awards vest in relation to the fair value of awards on grant date and the exercise behavior of our stock award holders. Since these tax benefits are largely unrelated to our results and unrepresentative of our normal effective tax rate, we excluded their impact on net income and diluted EPS to arrive at our non-GAAP financial measures.

During fiscal 2019, we recorded specific discrete tax items associated with our international operations that were unrelated to fiscal 2019. As these items were unrepresentative of our normal effective tax rate, we excluded their impact on net income and diluted EPS for fiscal 2019 to arrive at our non-GAAP financial measures.

During fiscal 2019, we completed the disposition of our high purity water business in Canada. This resulted in a pre-tax gain of $1,305 through other income. Since this gain was not representative of past or future operations, we made an adjustment to our net income and diluted EPS for fiscal 2019 to exclude this gain to arrive at our non-GAAP financial measures.


(dollar amounts in thousands except share and per share data or as otherwise specified)



During fiscal 2019, we recorded an adjustment to a minor litigation matter in our consolidated financial statements. Since these costs are irregular and mask our underlying operating performance, we made an adjustment to our net income and diluted EPS for fiscal 2019 to exclude such costs to arrive at our non-GAAP financial measures.

The 2017 Tax Act significantly revised U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory income tax rate from 35% to 21%, (b) creating a partial territorial tax system that includes imposing a mandatory one-time transition tax on previously deferred foreign earnings, (c) creating provisions regarding the (1) Global Intangible Low Tax Income, (2) the Foreign Derived Intangible Income deduction, and (3) the Base Erosion Anti-Abuse Tax and (d) eliminating or reducing certain income tax deductions, such as interest expense, executive compensation expenses and certain employee expenses. During fiscal 2018, we recorded a one-time net benefit as a provisional estimate of the net accounting impact of the 2017 Tax Act in accordance with SAB 118. Since the net favorable tax benefit is largely unrelated to our results and unrepresentative of our normal effective tax rate, we excluded its impact on net income and diluted EPS for fiscal 2018 to arrive at our non-GAAP financial measures.

During fiscal 2018, the Israeli Government notified us that they would forgive any future amounts due under a contingent obligation payable from a previous acquisition. As a result of this formal notification, we reduced the $1,138 contingent obligation payable to $0 during fiscal 2018, resulting in a gain through other income. Since this gain was irregular, we made an adjustment to our net income and diluted EPS for fiscal 2018 to exclude this gain to arrive at our non-GAAP financial measures.
    
During fiscal 2018, we settled a patent infringement matter and also recorded an adjustment to another minor litigation matter in our consolidated financial statements. Since these costs are irregular and mask our underlying operating performance, we made an adjustment to our net income and diluted EPS for fiscal 2018 to exclude such costs to arrive at our non-GAAP financial measures.

During fiscal 2018, we recorded a $2,785 valuation allowance on deferred tax assets related to a prior acquisition. Since this tax adjustment is related to acquired net operating losses and is not representative of our normal effective tax rate, we excluded its impact on net income and diluted EPS for fiscal 2018 to arrive at our non-GAAP financial measures.

The reconciliations of net income and diluted EPS to non-GAAP net income and non-GAAP diluted EPS were calculated as follows:
 
Three Months Ended July 31,
(Unaudited)
2019
 
2018
Net income/Diluted EPS, as reported
$
8,825

 
$
0.21

 
$
16,888

 
$
0.41

Intangible amortization, net of tax(1)
4,093

 
0.10

 
3,423

 
0.08

Acquisition-related items, net of tax(2)
5,453

 
0.13

 
528

 
0.01

Restructuring-related charges, net of tax(3)
7,529

 
0.17

 
1,814

 
0.04

Loss on debt extinguishment, net of tax(4)

 

 
91

 

Gain on disposition of business, net of tax(5)
(14
)
 

 

 

Excess tax benefits(6)
(21
)
 

 
(161
)
 

Tax matters(6)
666

 
0.02

 
3,080

 
0.08

Non-GAAP net income/Non-GAAP diluted EPS
$
26,531

 
$
0.63

 
$
25,663

 
$
0.62

________________________________________________
(1)
Amounts were recorded in general and administrative expenses.
(2)
In fiscal 2019, pre-tax acquisition-related items of $51 were recorded in cost of sales and $7,281 were recorded in general and administrative expenses. In fiscal 2018, pre-tax acquisition-related items of $745 were recorded in general and administrative expenses.
(3)
In fiscal 2019, pre-tax restructuring-related items of $1,971 were recorded in cost of sales , $8,974 were recorded in general and administrative expenses and $8 were recorded in other income, net. In fiscal 2018, pre-tax restructuring-related items of $353 were recorded in cost of sales and $1,158 were recorded in general and administrative expenses.
(4)
Amounts were recorded in interest expense, net.
(5)
Amounts were recorded in other income.
(6)
Amounts were recorded in income taxes.


(dollar amounts in thousands except share and per share data or as otherwise specified)



The reconciliations of net income and diluted EPS to non-GAAP net income and non-GAAP diluted EPS were calculated as follows:
 
Twelve Months Ended July 31,
(Unaudited)
2019
 
2018
Net income/Diluted EPS, as reported
$
55,042

 
$
1.32

 
$
91,041

 
$
2.18

Intangible amortization, net of tax(1)
16,021

 
0.38

 
13,267

 
0.32

Acquisition-related items, net of tax(2)
9,689

 
0.23

 
2,835

 
0.07

Restructuring-related charges, net of tax(3)
18,015

 
0.43

 
4,658

 
0.11

Litigation matters, net of tax(1)
134

 

 
1,637

 
0.04

Loss on debt extinguishment, net of tax(4)

 

 
91

 

Gain on disposition of business, net of tax(5)
(943
)
 
(0.02
)
 

 

Resolution of contingent liability(5)

 

 
(1,138
)
 
(0.03
)
Excess tax benefits(6)
(584
)
 
(0.01
)
 
(2,173
)
 
(0.05
)
Tax matters(6)
1,625

 
0.04

 
(5,872
)
 
(0.13
)
Non-GAAP net income/Non-GAAP diluted EPS
$
98,999

 
$
2.37

 
$
104,346

 
$
2.51

________________________________________________
(1)
Amounts were recorded in general and administrative expenses.
(2)
In fiscal 2019, pre-tax acquisition-related items of $351 were recorded in net sales, $537 were recorded in cost of sales and $12,241 were recorded in general and administrative expenses. In fiscal 2018, pre-tax acquisition-related items of $893 were recorded in cost of sales and $3,154 were recorded in general and administrative expenses. In fiscal 2017, pre-tax acquisition-related items of $353 were recorded in cost of sales and $2,094 were recorded in general and administrative expenses.
(3)
In fiscal 2019, pre-tax restructuring-related items of $2,243 were recorded in cost of sales, $21,507 were recorded in general and administrative expenses and $1,305 were recorded in other income, net. In fiscal 2018, pre-tax restructuring-related items of $1,517 were recorded in cost of sales and $3,814 were recorded in general and administrative expenses. In fiscal 2017, pre-tax restructuring-related items of $3,284 were recorded in general and administrative expenses.
(4)
Amounts were recorded in interest expense, net.
(5)
Amounts were recorded in other income.
(6)
Amounts were recorded in income taxes.

Reconciliation of Net Income to EBITDAS and Adjusted EBITDAS
 
We believe EBITDAS is an important valuation measurement for management and investors given the increasing effect that non-cash charges, such as stock-based compensation, amortization related to acquisitions and depreciation of capital equipment have on net income. In particular, acquisitions have historically resulted in significant increases in amortization of purchased intangible assets that reduce net income. Additionally, we regard EBITDAS as a useful measure of operating performance and cash flow before the effect of interest expense and is a complement to operating income, net income and other GAAP financial performance measures.
 
We define adjusted EBITDAS as EBITDAS excluding the same non-GAAP adjustments to net income discussed above. We use adjusted EBITDAS when evaluating operating performance because we believe the exclusion of such adjustments, of which a significant portion are non-cash items, is necessary to provide the most accurate measure of on-going core operating results and to evaluate comparative results period over period.


(dollar amounts in thousands except share and per share data or as otherwise specified)



The reconciliations of net income to EBITDAS and adjusted EBITDAS were calculated as follows:
 
Three Months Ended July 31,
 
Twelve Months Ended July 31,
(Unaudited)
2019
 
2018
 
2019
 
2018
Net income, as reported
$
8,825

 
$
16,888

 
$
55,042

 
$
91,041

Interest expense, net
2,763

 
1,467

 
9,505

 
5,289

Income taxes
3,237

 
12,126

 
20,277

 
26,472

Depreciation
6,055

 
4,657

 
21,510

 
17,473

Amortization
5,341

 
4,465

 
20,849

 
17,357

Loss on disposal of fixed assets
224

 
247

 
1,592

 
768

Stock-based compensation expense
3,677

 
2,582

 
15,562

 
9,615

EBITDAS
30,122

 
42,432

 
144,337

 
168,015

Acquisition-related items
7,332

 
745

 
13,129

 
4,047

Restructuring-related charges(1)
9,653

 
1,280

 
18,524

 
5,001

Litigation matters

 

 
163

 
2,345

Gain on disposition of business
8

 

 
(1,305
)
 

Resolution of contingent liability

 

 

 
(1,138
)
Adjusted EBITDAS
$
47,115

 
$
44,457

 
$
174,848

 
$
178,270

________________________________________________
(1)
Excludes stock-based compensation expense.

Net Debt

We define net debt as long-term debt less cash and cash equivalents. Each of the components of net debt appears on our consolidated balance sheets. We believe that the presentation of net debt provides useful information to investors because we review net debt as part of our management of our overall liquidity, financial flexibility, capital structure and leverage.
(Unaudited)
July 31, 2019
 
July 31, 2018
Long-term debt (excluding debt issuance costs)
$
233,000

 
$
200,000

Less cash and cash equivalents
(44,535
)
 
(94,097
)
Net debt
$
188,465

 
$
105,903


Reconciliation of Net Sales Growth to Organic Sales Growth
 
We define organic sales as net sales less (i) the impact of foreign currency translation, (ii) net sales related to acquired businesses during the first twelve months of ownership and (iii) divestitures during the periods being compared. We believe that reporting organic sales provides useful information to investors by helping identify underlying growth trends in our business and facilitating easier comparisons of our revenue performance with prior periods. We exclude the effect of foreign currency translation from organic sales because foreign currency translation is not under management’s control, is subject to volatility and can obscure underlying business trends. We exclude the effect of acquisitions and divestitures because the nature, size, and number of acquisitions and divestitures can vary dramatically from period to period and can obscure underlying business trends and make comparisons of financial performance difficult.
 
For the three months ended July 31, 2019, the reconciliation of net sales growth to organic sales growth for total net sales and net sales of our four reportable segments were calculated as follows:
 
(Unaudited)
 
Net Sales
 
Medical
Net Sales
 
Life Sciences
Net Sales
 
Dental
Net Sales
 
Dialysis
Net Sales
Net sales growth
 
4.6
 %
 
8.2
%
 
(11.8
)%
 
17.2
 %
 
2.8
%
Impact due to foreign currency translation
 
1.0
 %
 
1.6
%
 
0.2
 %
 
 %
 
0.3
%
Sales related to acquisitions
 
(2.2
)%
 
%
 
2.3
 %
 
(16.4
)%
 
%
Organic sales growth
 
3.4
 %
 
9.8
%
 
(9.3
)%
 
0.8
 %
 
3.1
%


(dollar amounts in thousands except share and per share data or as otherwise specified)



For the twelve months ended July 31, 2019, the reconciliation of net sales growth to organic sales growth for total net sales and net sales of our four reportable segments were calculated as follows:
 
(Unaudited)
 
Net Sales
 
Medical
Net Sales
 
Life Sciences
Net Sales
 
Dental
Net Sales
 
Dialysis
Net Sales
Net sales growth
 
5.3
 %
 
10.5
 %
 
(7.4
)%
 
8.2
 %
 
0.8
%
Impact due to foreign currency translation
 
1.0
 %
 
1.7
 %
 
0.3
 %
 
 %
 
0.2
%
Sales related to acquisitions
 
(2.4
)%
 
(0.7
)%
 
(2.2
)%
 
(8.4
)%
 
%
Organic sales growth
 
3.9
 %
 
11.5
 %
 
(9.3
)%
 
(0.2
)%
 
1.0
%

(dollar amounts in thousands except share and per share data or as otherwise specified)