Cantel Medical Reports 23% Sales Increase and EPS of $0.27 for Fourth Quarter and 17% Sales Increase and EPS of $1.18 for the Year Ended July 31, 2011

LITTLE FALLS, N.J., Oct. 13, 2011 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 1% increase in net income to $4,682,000, or $0.27 per diluted share, on a 23% increase in sales to a record $86,018,000 for the fourth quarter ended July 31, 2011, inclusive of approximately $0.02 of expenses related to acquisitions. This compares with net income of $4,623,000, or $0.27 per diluted share, on sales of $69,811,000 for the fourth quarter ended July 31, 2010.

For the fiscal year ended July 31, 2011, the Company reported net income of $20,425,000, or $1.18 per diluted share, on a 17% increase in sales to $321,651,000, inclusive of approximately $0.04 of expenses related to acquisitions. This compares with net income of $19,941,000, or $1.18 per diluted share, on sales of $273,952,000 for the fiscal year ended July 31, 2010.

Andrew Krakauer, Cantel's President and CEO stated, "We are pleased to have delivered record sales and another quarter of improved earnings, excluding acquisition related expenses.  We continued to achieve good core sales growth in our three major business segments -- Endoscope Reprocessing, Water Purification and Filtration, and Healthcare Disposables. Sales increases due to acquisitions further benefited the Water Purification and Healthcare Disposable segments this quarter. Our positive results confirm the continued success of our three-prong strategy for growth which includes investing in new product development, sales and marketing programs and acquisitions.

Our Endoscope Reprocessing business continued its excellent performance with a sales increase of 53% in the quarter, driven by shipments of our two newest reprocessors, the Advantage® Plus and 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, and our overall ability to capitalize on several market opportunities."

Krakauer continued, "We were excited to have announced the acquisition of Byrne Medical on August 1, which was the largest transaction in the Company's history. In purchasing Byrne Medical, Cantel has greatly expanded its hospital and outpatient center-based GI endoscopy business, which includes our market leading Medivators® post-procedure cleaning business. With this acquisition, the company has entered into the market for infection prevention and control products in the endoscopy procedure room itself.  Cantel's collective endoscopy business, with approximately 80 sales consultants and clinical specialists, now offers the GI professional an unparalleled level of expertise and solutions to mitigate infection risks across the full endoscopy procedure cycle.

I am optimistic about Cantel's prospects to expand sales and increase profits in fiscal year 2012. We expect to benefit from leveraging our significant sales and marketing investments, continued progress with new products, and successfully growing the three key acquisitions made in the past year -- Byrne Medical, Gambro's United States water business and ConFirm Monitoring."

The Company further reported that its balance sheet at July 31, 2011 included current assets of $111,324,000, including cash of $18,410,000, a current ratio of 2.56:1, debt of $24,000,000 and stockholders' equity of $234,315,000. Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash. Our cash provided by operating activities was $10,670,000 for the fourth quarter and $28,198,000 for the full year. We have reduced our net debt position from the prior quarter by over $8 million to $5.6 million. Following the recently announced Byrne Medical acquisition, although gross debt increased by $98,000,000, our gross debt to pro forma EBITDAS ratio is only 2:1. Cantel remains in an excellent position to fund acquisitions and other investment activities."

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 fourth quarter ended July 31, 2011 on Thursday, October 13, 2011 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, October 13, 2011 at 2:00 PM through midnight on December 13, 2011 by dialing (877) 660-6853 and using pass code # 286 and conference ID # 380475.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=166106.  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.