Cantel Medical Corp. (Cantel Medical), a provider of infection prevention and control products, has reported net sales of $62.42 million for the second quarter of fiscal 2009, compared with the net sales of $60.91 million in the year-ago quarter. It has also reported a net income of $3.77 million, or $0.23 per share, for the second quarter of fiscal 2009, compared with the net income of $2.16 million, or $0.13 per share, in the year-ago quarter.
For the six months ended January 31, 2009, the company reported a 74% increase in net income to $7,107,000, or $0.43 per diluted share (inclusive of $0.02 of expenses related to the relocation of its Dutch manufacturing operations to the United States), on a 5% increase in sales to $126,826,000. This compares with net income of $4,096,000, or $0.25 per diluted share, on sales of $120,915,000 for the six months ended January 31, 2008.
Andrew Krakauer, Cantel Medical’s president stated, “We are very pleased to have delivered another quarter of substantial earnings growth and our strongest quarterly performance of the past few years. These positive results confirm the continued success of our sales and marketing investments and various initiatives to improve operating margins. Cantel demonstrated sales growth in all reporting segments except for Water Purification and Filtration which was affected by some delayed capital sales and an unusually favorable comparative quarter in the prior year.”
Krakauer added, “While all our businesses performed well, operating income in our Endoscope Reprocessing and Dialysis units was substantially ahead of last year, aided by strong sales of consumables, including disinfectants, sterilants and an increase in service revenue. Additionally, the positive performance was helped by our active cost reduction and margin improvement programs, the implementation of price increases and reduced interest expenses.”
Krakauer continued, “Although our businesses are not immune to the economic downturn, we remain focused on our strategies to grow and improve performance. In this economy, our competitive advantage is our leadership positions in several infection prevention and control markets, a quality reputation and strong brands. Further, we have proactively developed our business to where approximately 70% of our sales come from disposables and service, which are supported by a large installed base of equipment.”
The company further reported that its balance sheet at January 31, 2009 included current assets of $85,728,000, including cash of $20,052,000, a current ratio of 2.4:1, debt of $54,300,000, stockholders’ equity of $171,838,000 and a ratio of funded debt to equity of .32:1. Krakauer stated, “The company has a strong balance sheet and continues to generate significant cash. Our cash provided by operating activities for the quarter was $7,801,000. We have reduced our net debt position from the first quarter by 18% to $34.2 million, which is less than one (1x) turn of our trailing EBITDAS.”