EX-99.1 2 a07-26224_2ex99d1.htm EX-99.1

Exhibit 99.1

CANTEL MEDICAL CORP.

150 Clove Road

Little Falls, New Jersey 07424

 

FOR IMMEDIATE RELEASE

Contact:

R. Scott Jones

 

Richard E. Moyer

 

President and CEO

 

Cameron Associates, Inc.

 

Cantel Medical Corp.

 

richard@cameronassoc.com

 

Phone: (973) 890-7220

 

Phone: (212) 554-5466

 

CANTEL MEDICAL REPORTS

EPS OF $0.12 VS. $0.06 ON 25% INCREASE IN SALES
FOR QUARTER ENDED JULY 31, 2007

LITTLE FALLS, New Jersey (October 9, 2007) ... CANTEL MEDICAL CORP. (NYSE:CMN) reported income from continuing operations of $1,899,000, or $0.12 per diluted share, on a 25% increase in sales to $62,513,000 for the fourth quarter ended July 31, 2007, inclusive of approximately $0.02 in expenses related to recent acquisitions and executive transition, as well as $0.03 of  stock-based compensation.  This compares with income from continuing operations of $922,000, or $0.06 per diluted share, on sales of $50,140,000 for the fourth quarter ended July 31, 2006, including $0.01 of stock-based compensation expense.

For the fiscal year ended July 31, 2007, the Company reported income from continuing operations of $8,104,000, or $0.50 per diluted share, on a 14% increase in sales to $219,044,000, inclusive of expenses of $0.03 related to recent acquisitions and executive transition, as well as $0.06 of stock-based compensation. This compares with income from continuing operations of $6,653,000, or $0.41 per diluted share, on sales of $192,179,000 for the fiscal year ended July 31, 2006, including $0.05 of stock-based compensation expense.

According to R. Scott Jones, Cantel’s President & CEO, “We are pleased with our core growth of 15% in the fourth quarter and 10% for fiscal year 2007, as compared with the same periods in 2006. During the past year, we have made substantial investments in the Company which have begun to pay-off in terms of recent top-line growth, particularly in the Water Purification and Endoscope Reprocessing segments. We are focusing our efforts on realizing improvements in profitability related to these investments over the next couple of years.” Jones continued, “Our strategy is focused on enhancing our six existing segments by adding proprietary product offerings, both through acquisitions and




internal development, and by expanding our direct sales and service channels through which to best address the needs of our customer base.”

In line with its strategy to make synergistic acquisitions and add to existing growth platforms, the Company completed two acquisitions (GE Water & Process Technologies’ dialysis water business and Twist 2 It Inc.) during the fiscal year and three acquisitions (Dialysis Services, Inc., Verimetrix, LLC and Strong Dental Products, Inc.) during the past three months. These transactions have added several important proprietary branded products to its water purification and filtration, endoscope reprocessing and healthcare disposables (previously referred to as dental) product lines.

The Company further reported that its balance sheet at July 31, 2007 included current assets of $76,731,000, including cash of $15,860,000, a current ratio of 2.1:1, a ratio of funded debt to equity of .37:1, debt of $57,000,000 and stockholders’ equity of $155,070,000.

Cantel Medical Corp. is a leading provider of infection prevention and control products in the healthcare market. Our products include specialized medical device reprocessing systems for renal dialysis and endoscopy, dialysate concentrates and other dialysis supplies, disposable infection control products primarily for the dental industry, water purification equipment, sterilants, disinfectants and cleaners, hollow fiber membrane filtration and separation products for medical and non-medical applications, and specialty packaging for infectious and biological specimens. We also provide technical maintenance for our products and offer compliance training services for the transport of infectious and biological specimens.

The Company will hold a conference call to discuss the results for the fourth quarter ended July 31, 2007 on Tuesday, October 9, 2007 at 11:00 AM Eastern time. To participate in the conference call, dial 1-877-407-8035 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, October 9 at 2:00 PM through midnight on October 10, by dialing 1-877-660-6853 and using passcode #286 and conference ID #257825. The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.vcall.com/IC/CEPage.asp?ID=121882.  A replay of the webcast will be available on Vcall for 30 days.

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.

2




CANTEL MEDICAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

 

 

 

Three Months Ended July 31,

 

Year Ended July 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

Net sales:

 

 

 

 

 

 

 

 

 

Product sales

 

$

55,090

 

$

45,232

 

$

194,767

 

$

175,353

 

Product service

 

7,423

 

4,908

 

24,277

 

16,826

 

Total net sales

 

62,513

 

50,140

 

219,044

 

192,179

 

 

 

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

 

 

Product sales

 

35,559

 

28,898

 

120,412

 

110,417

 

Product service

 

5,841

 

3,871

 

19,620

 

12,546

 

Total cost of sales

 

41,400

 

32,769

 

140,032

 

122,963

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

21,113

 

17,371

 

79,012

 

69,216

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Selling

 

6,421

 

5,443

 

23,818

 

18,530

 

General and administrative

 

9,381

 

7,797

 

33,507

 

30,225

 

Research and development

 

1,285

 

1,306

 

4,848

 

5,117

 

Total operating expenses

 

17,087

 

14,546

 

62,173

 

53,872

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before interest and income taxes

 

4,026

 

2,825

 

16,839

 

15,344

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

1,127

 

956

 

3,508

 

4,232

 

Interest income

 

(165

)

(251

)

(771

)

(839

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

3,064

 

2,120

 

14,102

 

11,951

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

1,165

 

1,198

 

5,998

 

5,298

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,899

 

922

 

8,104

 

6,653

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations, net of tax

 

61

 

3,276

 

342

 

10,268

 

 

 

 

 

 

 

 

 

 

 

Gain on disposal of discontinued operations, net of tax

 

 

7,241

 

 

6,776

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,960

 

$

11,439

 

$

8,446

 

$

23,697

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - diluted

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.12

 

$

0.06

 

$

0.50

 

$

0.41

 

Discontinued operations

 

 

0.20

 

0.02

 

0.63

 

Gain on disposal of discontinued operations

 

 

0.45

 

 

0.42

 

Net income

 

$

0.12

 

$

0.71

 

$

0.52

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares - diluted

 

16,337

 

16,088

 

16,153

 

16,276

 

 




CANTEL MEDICAL CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

July 31,

 

July 31,

 

 

 

2007

 

2006

 

Assets

 

 

 

 

 

Current assets

 

$

76,731

 

$

82,448

 

Property and equipment, net

 

38,577

 

38,104

 

Intangible assets

 

44,615

 

43,219

 

Goodwill

 

102,073

 

72,571

 

Other assets

 

1,675

 

1,885

 

 

 

$

263,671

 

$

238,227

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current portion of long-term debt

 

$

6,000

 

$

4,000

 

Other current liabilities

 

29,971

 

35,097

 

Long-term debt

 

51,000

 

34,000

 

Other long-term liabilities

 

21,630

 

24,325

 

Stockholders’ equity

 

155,070

 

140,805

 

 

 

$

263,671

 

$

238,227