Cantel Medical Reports 18% Increase in Net Income on 24% Increase in Sales

LITTLE FALLS, N.J., June 8, 2011 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported an 18% increase in net income to $5,048,000, or $0.29 per diluted share, on a 24% increase in sales to a record $82,619,000 for the third quarter ended April 30, 2011. This compares with net income of $4,274,000, or $0.25 per diluted share, on sales of $66,559,000 for the third quarter ended April 30, 2010.  For the nine months ended April 30, 2011, the Company reported net income of $15,743,000, or $0.91 per diluted share, on a 15% increase in sales to $235,633,000. This compares with net income of $15,318,000, or $0.90 per diluted share, on sales of $204,141,000 for the nine months ended April 30, 2010.

Andrew Krakauer, Cantel's President and CEO stated, "We are pleased to have delivered record sales and another quarter of improved earnings. It is positive to see sales increases in our three major business segments -- Endoscope Reprocessing, Water Purification and Filtration, and Healthcare Disposables -- all with significant core growth. These solid results confirm the continued success of our three-prong approach to growth which includes investing in new product development, sales and marketing programs and acquisitions."

Krakauer added, "As in the first half of this fiscal year, our Endoscope Reprocessing business had remarkable performance in the quarter as sales increased by 67%, driven by shipments of our two newest reprocessors, the Advantage® Plus and the DSD Edge™, as well as disinfectants and sterilants, parts and service.  This accomplishment is a result of successful new product development, the effectiveness and quality of our sales and marketing teams, as well as improvements in hospital spending worldwide. Acquisition related integration and startup costs negatively affected operating income in the quarter in both our Water Purification and Filtration, and Healthcare Disposables segments. However, we are optimistic that this year's acquisitions of Gambro's United States water business and the sterilization monitoring business of ConFirm Monitoring will be significantly accretive to Cantel earnings beginning in Fiscal 2012."  

The Company further reported that its balance sheet at April 30, 2011 included current assets of $106,241,000, including cash of $16,039,000, a current ratio of 1.5:1, debt of $30,000,000 and stockholders' equity of $229,557,000.  Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS.  Our net debt position of $13,961,000 increased by only $2.5 million during the quarter, despite funding $7.5 million for the acquisition of ConFirm Monitoring. EBITDAS for the quarter and nine months ended April 30, 2011 was $11,725,000 and $36,090,000, respectively."

Cantel Medical Corp. (NYSE: CMN) is a leading provider of infection prevention and control products in the healthcare market. Our products include water purification equipment, sterilants, disinfectants and cleaners, specialized medical device reprocessing systems for endoscopy and renal dialysis, disposable infection control products primarily for the dental industry, dialysate concentrates and other dialysis supplies, 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 third quarter ended April 30, 2011 on Wednesday, June 8, 2011 at 11:00 AM Eastern time. To participate in the conference call, dial 1-877-407-8033 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 June 8, 2011 at 2:00 PM through midnight on August 8, 2011 by dialing 1-877-660-6853 and using passcode #286 and conference ID #373584.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=164699. A replay of the webcast will be available on Vcall for 90 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.

SOURCE Cantel Medical Corp.