Cantel Medical Reports EPS of $0.38 vs. $0.27 on 9% Sales Increase for Second Quarter Ended January 31, 2013

LITTLE FALLS, N.J., March 7, 2013 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported record net income of $10,452,000, or $0.38 per diluted share, on a 9% increase in sales to a record $106,363,000 for the second quarter ended January 31, 2013. This compares with net income of $7,294,000, or $0.27 per diluted share, on sales of $97,297,000 for the second quarter ended January 31, 2012. For the six months ended January 31, 2013, the Company reported record net income of $20,028,000, or $0.73 per diluted share, on an 8% increase in sales to a record $206,044,000. This compares with net income of $13,514,000, or $0.50 per diluted share, on sales of $190,559,000 for the six months ended January 31, 2012. Results for the second quarter and six months ended January 31, 2013 include $0.02 in net favorable adjustments related to acquisition accounting partially offset by severance and recruiting costs. Results for the second quarter and six months ended January 31, 2012 were inclusive of a $0.02 charge related to an asset impairment.

Andrew Krakauer, Cantel's President and CEO stated, "We are pleased to have delivered record sales and earnings in the second quarter. These positive 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. All of these strategies positively affected the results this quarter."

Krakauer added, "Performance this quarter was led by our Healthcare Disposables segment. With the benefit of the ongoing integration of the SPS Medical sterility assurance business acquired on November 1, 2012, sales in this segment exceeded the same quarter last year by 36%. Organic sales growth was 11%, about half of which was driven by our distributor customers pulling forward shipments in anticipation of January 1 price increases. Operating profit grew by over 80%, with approximately two thirds of the growth being organic, driven by operating leverage.

As in the first quarter, our Water Purification and Filtration segment had excellent year-over-year quarterly performance with organic sales growth of 15%. Operating profit in the segment grew by 21% due to greater sales of advanced technology products and improved operating efficiencies. Our largest business unit, Endoscopy, had sequential quarterly sales growth of 7%. However, as expected, this segment showed a 2% decline in sales against very strong comparables from the year earlier quarter."

The Company further reported that its balance sheet at January 31, 2013 included current assets of $138,042,000, including cash of $26,825,000, a current ratio of 2.7:1, debt of $107,000,000 and stockholders' equity of $298,002,000.  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 20% to $22,278,000.  After the acquisition of SPS Medical on the first day of the quarter, we were able to reduce net debt by $9 million to $80,175,000."

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 second quarter ended January 31, 2013 on Thursday, March 7, 2013 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 Thursday, March 7, 2013 at 2:00 PM through midnight on May 7, 2013 by dialing 1-877-660-6853 and using conference ID #410008.

The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=170630. 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.