CNTL wonder if it has more to go, looked better at 22
LITTLE FALLS, N.J.--(BUSINESS WIRE)--Dec. 12, 2001--CANTEL MEDICAL CORP. (NASDAQ NM:CNTL - news) reported net income of $770,000, an increase of 19%, or $0.13 per diluted share, on sales of $21,165,000 for its first quarter ended October 31, 2001, as compared with net income of $649,000, or $0.14 per diluted share, on sales of $8,719,000 for the quarter ended October 31, 2000.
James P. Reilly, President and Chief Executive Officer of CANTEL, commented, ``The results for the first quarter include the operations of Minntech Corporation since the completion of the merger in September.'' Reilly continued, ``The integration of Minntech is going well, having had a positive impact on the results during the first quarter. We expect a significant contribution to our results through the balance of our fiscal year.'' Reilly further noted, ``The first quarter was also impacted by lower than expected results for our Canadian subsidiary where we expect improvement in future quarters, as well as a one time charge to cost of sales resulting from purchase accounting related to the Minntech acquisition.''
The Company further reported that its balance sheet at October 31, 2001 continued to improve with current assets of $53,764,000, a current ratio of 2.9:1 and stockholders' equity of $50,279,000.
Cantel Medical Corp. is a healthcare company concentrating primarily in infection prevention and control products and diagnostic and therapeutic medical equipment. Through its United States subsidiaries, Minntech Corporation and MediVators, Inc.,
Cantel serves customers worldwide by designing, developing, manufacturing, marketing and distributing innovative products for the infection prevention and control market. The Company, by utilizing its proprietary core technologies in chemicals, hollow fibers, and electronics, has developed a wide variety of medical device reprocessing and fluid filtration and separation products for the renal dialysis, medical device disinfection, cardiosurgery, pharmaceutical, biotechnology and semiconductor industries. Minntech is a world leader in renal dialyzer reprocessing, providing a broad product line that includes a reprocessing system and a sterilant that each command the largest market share in the U.S. in their respective categories. Through its Canadian subsidiary, Carsen Group Inc., Cantel markets and distributes medical equipment (including flexible and rigid endoscopes), precision instruments (including microscopes and high performance image analysis hardware and software) and industrial equipment (including remote visual inspection devices). Cantel's subsidiaries also provide technical maintenance services for their own products, as well as for certain competitors' products.
The Company will hold a conference call to discuss the results for the first quarter ended October 31, 2001 on Wednesday, December 12, 2001 at 11:00 AM EST. To participate in the conference call, dial 1-877-351-9864 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 Wednesday, December 12 at 1:00 PM through midnight on December 13, by dialing 1-800-642-1687 and using passcode 2654753. The call will be simultaneously broadcast live over the Internet on vcall.com at vcall.com. A replay of the webcast will be available on Vcall for 30 days.
For further information, visit the Cantel Web site at www.cantelmedical.com.
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the Company's filings and reports with the Securities and Exchange Commission. Such statements are only predictions, and actual events or results may differ materially from those projected.
CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
October 31,
--------------------------------
2001 2000 (1)
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Net sales $21,165 $ 8,719
Cost of sales 13,166 5,064
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Gross profit 7,999 3,655
Operating expenses 6,381 2,548
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Income before interest
and income taxes 1,618 1,107
Interest expense (income) 375 (3)
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Income before income taxes 1,243 1,110
Income taxes 473 461
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Net income $ 770 $ 649
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Earnings per common share
- diluted $ 0.13 $ 0.14
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Weighted average shares
- diluted 5,960 4,670
(1) Restated from amounts previously reported to reflect warehouse
and shipping expenses in cost of sales and related amounts
billed to customers in net sales. These reclassifications had no
effect on income.
CANTEL MEDICAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 31, July 31,
2001 2001
------------- --------------
Assets
Current assets $ 53,764 $ 26,494
Property and equipment, net 23,825 844
Intangible assets 8,204 622
Goodwill 15,194 585
Other assets 8,340 3,384
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$ 109,327 $ 31,929
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Liabilities and stockholders' equity
Current liabilities $ 18,336 $ 9,825
Long-term debt 32,000 -
Other long-term liabilities 8,712 77
Stockholders' equity 50,279 22,027
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$ 109,327 $ 31,929
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