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Press Release

Cantel Medical Reports Record Results for the Fourth Quarter Ended July 31, 2016

Cantel Medical
Posted on: 30 Sep 16

- Reported fourth quarter sales growth of 18.3%
- Delivered organic sales growth of 12.4%
- Reported US GAAP EPS of $0.39 vs. $0.32
- Achieved non-GAAP EPS of $0.48 vs. $0.39
- Reported US GAAP net income growth of 22.7%
- Delivered non-GAAP net income growth of 25.5%
- Achieved record full fiscal year sales and earnings

LITTLE FALLS, N.J., Sept. 29, 2016 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported record US GAAP net income of $16,291,000, or $0.39 per diluted share, on an 18.3% increase in sales to a record $179,002,000 for the fourth quarter ended July 31, 2016. This compares with net income of $13,273,000, or $0.32 per diluted share, on sales of $151,255,000 for the fourth quarter ended July 31, 2015. For the full fiscal year ended July 31, 2016, the Company reported record US GAAP net income of $59,953,000, or $1.44 per diluted share, on a 17.7% increase in sales to a record $664,755,000. This compares with net income of $47,953,000 or $1.15 per diluted share on sales of $565,004,000 for the fiscal year ended July 31, 2015.

Non-GAAP net income increased 25.5% for the fourth quarter ended July 31, 2016 to $20,162,000, or $0.48 per diluted share, compared with non-GAAP net income of $16,060,000, or $0.39 per diluted share for the same quarter last year.  For the full fiscal year ended July 31, 2016, the Company reported a 21.5% increase in non-GAAP net income to $72,938,000, or $1.75 per diluted share. This compares with non-GAAP net income for the full fiscal year ending July 31, 2015 of $60,039,000, or $1.44 per diluted share.

Jørgen B. Hansen, Cantel's President and Chief Executive Officer stated, "We are pleased to report record sales and earnings performance this quarter.  Our 18.3% reported sales growth derives from strong organic growth of 12.4%, a 0.1% decline due to foreign currency translation, with acquisitions making up the remaining 6.0%. The majority of this quarter's strong performance was driven by the Endoscopy business. All three of our major business units have benefited from significant investments in new product development, sales expansion and marketing programs as well as the integration of recent acquisitions. We are also pleased to report a gross margin of 47.7% which improved approximately 220 basis points compared with the same quarter last year. This was driven by improvement in product mix as well as our continuous improvement efforts."

Hansen added, "Our Endoscopy segment led sales growth for the Company this quarter with a significant year-over-year increase of 38.2%, of which 28.5% was organic. All product categories in this segment were strong including procedure room products, reprocessing equipment, chemical disinfectants, as well as service and spare parts.  Our exceptional growth and record sales volumes continued to be driven by our U.S. sales and service team supported by strong growth from our direct teams in EMEA and APAC.

Compared to the same quarter last year, sales in our Water Purification and Filtration segment increased by 2%. Organic sales growth was 1% with slight increases in all product categories. We are encouraged by additional increases in orders, and our backlog reached record levels exiting the quarter, which positions us well for fiscal year 2017.

In our Healthcare Disposables segment, sales grew 6.5% with modest organic growth. Dental waterline and sterility assurance products continue to be the strongest categories. On August 1, 2016, we acquired Accutron, Inc., the industry leading manufacturer of nitrous oxide delivery systems and single-use nasal masks. This acquisition enabled us to expand the dental portfolio of our Healthcare Disposables segment to include an additional high quality branded single-use disposable product line. In addition, this marks Cantel's first entry into the dental equipment market, allowing the Company to increase its presence in dental offices and offer a broader portfolio of equipment and consumables.

Overall for Cantel, the strong revenue growth drove record net income. We continue to have a positive outlook in terms of sales and profit growth for fiscal year 2017. We expect to benefit from our significant ongoing investments in our business priorities - new product development, market expansion and strategic acquisitions."

The Company further reported that its balance sheet at July 31, 2016 included current assets of $222,742,000 including cash of $28,367,000, a current ratio of 2.3, gross debt of $116,000,000 and stockholders' equity of $454,370,000. Hansen stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. For the full fiscal year 2016, adjusted EBITDAS grew by 21.2% to $137,949,000 as compared to $113,811,000 for the full fiscal year 2015."

Conference Call Information

The Company will hold a conference call to discuss the results for the fourth quarter and full fiscal year ended July 31, 2016 on Thursday, September  29, 2016 at 11:00 AM Eastern time. To participate in the conference call, dial 877-407-8033 (US and Canada) or 1-201-689-8033 (International) 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, September 29, 2016 through midnight on November 29, 2016 by dialing 877-660-6853 and using conference ID # 13645489.

An audio webcast will be available via the investor relations page of the Cantel website at  A replay of the presentation will be archived on the Cantel web site for those unable to listen live.

About Cantel Medical

Cantel Medical is a leading global company dedicated to delivering innovative infection prevention products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives.  Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates, hollow fiber membrane filtration and separation products. Additionally, we provide technical service for our products. 

For further information, visit the Cantel website at

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.

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Editor's Details

Mike Wood

Last updated on: 30/09/2016

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