Cantel Medical Reports 62% Increase in Net Income - EPS of $0.30 vs. $0.19 - on 18% Sales Increase for Third Quarter Ended April 30, 2012

LITTLE FALLS, N.J., June 7, 2012 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported a 62% increase in net income to a record $8,174,000, or $0.30 per diluted share, on an 18% increase in sales to $97,238,000 for the third quarter ended April 30, 2012. This compares with net income of $5,048,000, or $0.19 per diluted share, on sales of $82,619,000 for the third quarter ended April 30, 2011. For the nine months ended April 30, 2012, the Company reported net income of $21,688,000, or $0.80 per diluted share, on a 22% increase in sales to $287,797,000. This compares with net income of $15,743,000, or $0.61 per diluted share, on sales of $235,633,000 for the nine months ended April 30, 2011.

Andrew Krakauer, Cantel's President and CEO stated, "We are pleased to have delivered strong sales growth and record quarterly earnings in the third quarter. Once again, Cantel's positive results were driven by the continued success of our three prong approach to growth which includes investing in new product development, sales and marketing programs and acquisitions. Most importantly this quarter, results in each of our three largest segments, Endoscopy, Healthcare Disposables and Water Purification and Filtration, greatly benefited from gross margin expansion driven by successful integration of acquisitions, greater sales of higher margin products and improved operating efficiencies. Gross margins increased by about 6 percentage points to 43.8% compared with the same quarter last year."

Krakauer added, "As in the first half of this fiscal year, our Endoscopy segment, led by our newly acquired Byrne Medical business, had excellent performance as sales increased by 41% and operating profit grew by 122%. Byrne products (now named Medivators procedural products) showed core growth of 28%, and the acquisition was accretive to earnings. The Byrne business has been integrated with our legacy endoscope reprocessing business under the "Medivators" name to establish the infection control leader in the gastrointestinal (GI) endoscopy market. We introduced the new Medivators business to our customers at two major trade shows in May and were very pleased by our customers' favorable reactions to the combined business, as well as to a number of new products launched or soon to be launched that were exhibited.

Cantel's two other largest business segments also performed well. In our Healthcare Disposables unit, due to greatly improved gross margins, operating profit increased 51% on a 6% increase in sales. Sales in our Water Purification and Filtration business were 11% higher. However, with effective integration of the Gambro water acquisition and a focus on margin improvement, operating profit in this segment grew by 73%."

The Company further reported that its balance sheet at April 30, 2012 included current assets of $126,661,000, including cash of $25,027,000, a current ratio of 2.5:1, debt of $100,500,000 and stockholders' equity of $266,382,000.  Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS.  When compared with the same quarter last year, our EBITDAS grew by 58% to $18,552,000. Our net debt position improved during the quarter by almost $11 million to $75,473,000. We have reduced our net position during the first three quarters by over $28 million."

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 dental and GI endoscopy markets, 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, 2012 on Thursday, June 7, 2012 at 10:00 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 Thursday, June 7, 2012 at 2:00 PM through midnight on August 7, 2012 by dialing 1-877-660-6853 and using passcode #286 and conference ID #395388.

The call will be simultaneously broadcast live over the Internet on vcall.com at : http://www.investorcalendar.com/IC/CEPage.asp?ID=168743. 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.