Cantel Medical Reports 2% Increase in Net Income - EPS of $0.25 for Quarter Ended April 30, 2010

LITTLE FALLS, N.J., June 8 /PRNewswire-FirstCall/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 2% increase in net income to $4,274,000, or $0.25 per diluted share, on sales of $66,559,000 for the third quarter ended April 30, 2010. This compares with net income of $4,183,000, or $0.25 per diluted share, on sales of $66,431,000 for the third quarter ended April 30, 2009. For the nine months ended April 30, 2010, the Company reported a 36% increase in net income to $15,318,000, or $0.90 per diluted share, on sales of $204,141,000. This compares with net income of $11,290,000, or $0.68 per diluted share, on sales of $193,257,000 for the nine months ended April 30, 2009.

Andrew Krakauer, Cantel’s President and CEO stated, “In evaluating the individual business units, we view this as a solid quarter.  In our three largest business segments -- Endoscope Reprocessing, Water Purification and Healthcare Disposables -- we grew sales faster than the underlying markets and expanded gross margins. In our Dialysis segment, sales continued to erode as anticipated, primarily due to decreased shipments of lower margin dialysate concentrate. Excluding the Dialysis segment, sales grew 7% for the remainder of Cantel’s businesses.”

Krakauer added, “From a macro level, the economic slowdown has still deferred the rate of growth in our capital equipment sales.  Despite that effect, we continued to generate substantial cash flow from the strong sales of consumables, including disinfectants, sterilants and filters.  This outcome is a result of our continued strategic investments in sales and marketing, which are yielding both top-line and gross profit improvements in our three largest segments.”

Krakauer continued, “Although our businesses are not immune to the economic downturn, the need for and focus on infection control continues to rise.  We remain fully dedicated to advancing our strategies to grow and improve performance, and to ensure that we are well positioned with next generation products.  Our competitive advantages are our strong leadership positions in several infection prevention and control markets, a quality reputation and strong brand equity.  We have proactively developed our business to where approximately 75% of our sales come from disposables and service, which are supported by a large installed base of equipment. Further, we remain active in the search for synergistic acquisitions. Last week, we were pleased to announce the acquisition of Purity Water Company of San Antonio, Inc. which expanded our Water Purification and Filtration business in the large Texas and nearby markets.”

The Company further reported that its balance sheet at April 30, 2010 included current assets of $91,752,000, including cash of $19,165,000, debt of $25,000,000, stockholders’ equity of $206,221,000 and a ratio of funded debt to equity of 0.1:1. Krakauer stated, “We continue to generate significant cash provided by operating activities, including $7,136,000 for the quarter. Our balance sheet is very healthy, and we have further reduced our net debt position by 53% from the second quarter to $5,835,000.”

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 third quarter ended April 30, 2010 on Tuesday, June 8, 2010 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, June 8, 2010 at 2:00 PM through midnight on June 15, by dialing 1-877-660-6853 and using passcode #286 and conference ID #351550.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=159240. 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.

SOURCE Cantel Medical Corp.