LITTLE FALLS, N.J. , Dec. 10, 2014 /PRNewswire/ -- CANTEL MEDICAL CORP. (NYSE: CMN) reported US GAAP net income of $11,239,000 , or $0.27 per diluted share, inclusive of $0.03 of acquisition related (non-amortization of intangibles) charges on a 16% increase in sales to a record $136,811,000 for the first quarter ended October 31, 2014 . This compares with net income of $11,185,000 or $0.27 per diluted share, on sales of $118,272,000 for the first quarter ended October 31, 2013 .
Using non-GAAP adjusted measures as described in our release of December 3, 2014 , we reported a 10.5% increase in adjusted net income for the quarter ended October 31, 2014 to $14,185,000 , or $0.34 per diluted share. This compares to adjusted net income for the quarter ended October 31, 2013 of $12,834,000 , or $0.31 per diluted share.
Andrew Krakauer , Cantel's Chief Executive Officer stated, "We are pleased to have delivered record sales and solid earnings this quarter. We achieved good financial performance in all three major business segments – Endoscopy, Water Purification and Filtration, and Healthcare Disposables. All three business units have greatly benefitted from further investments in new product development, sales and marketing programs, and the integration of recent acquisitions. Most importantly, for the sixth consecutive quarter we had strong organic sales growth exceeding 10%. Further, our total sales growth of 16% demonstrates the success of our acquisition program."
Krakauer added, "Our Medivators Endoscopy business achieved robust organic sales growth of 13% in the quarter. Including our newly acquired PuriCore business, now called Cantel Medical (UK) Limited, sales in this segment grew 28%. All product categories in the legacy business were strong, including equipment, disinfectant chemicals, procedure room products, as well as service and spare parts. Further we were pleased to have announced on November 4 that Cantel acquired International Medical Service S.r.l. (IMS), located near Rome, Italy . IMS further enhances Cantel's global leadership in the automated endoscope reprocessor and related chemistries business and brings the Company European-based chemistry manufacturing.
Sales in our Crosstex Healthcare Disposables business grew by 12% organically driven by strong sales of face masks and sterility assurance products. Some of the growth in this segment was driven by customers buying products in advance of an announced price increase and some increased shipments due to concerns over Ebola. Neither of these factors are continuing into the second quarter. Our Mar Cor Water Purification and Filtration segment showed organic sales growth of nearly 7%, as robust sales continued for our dialysis industry water purification equipment, disposables and service. Substantial revenue increases in all three major units drove the improved operating earnings when excluding acquisition related charges."
The Company also reported that its balance sheet at October 31, 2014 included current assets of $173,963,000 , including cash of $29,714,000 , a current ratio of 2.7:1, gross debt of $93,500,000 and stockholders' equity of $375,698,000 . Krakauer stated, "We continue to maintain a strong balance sheet and generate substantial cash flow and EBITDAS. When compared with the same quarter last year, our EBITDAS grew by 7% to $25,909,000 . Our net debt position increased by $15 million to $63,786,000 during the quarter, despite borrowing over $24 million to fund the IMS acquisition."
Cantel Medical is a leading global company dedicated to delivering innovative infection prevention and control 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, and specialty packaging for infectious and biological specimens. Additionally, we provide technical service for our products.
The Company will hold a conference call to discuss the results for the first quarter ended October 31, 2014 on Wednesday, December 10, 2014 at 11:00 AM Eastern time . To participate in the conference call, dial (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 Wednesday, December 10, 2014 at 2:00 PM through midnight on February 10, 2015 by dialing (877) 660-6853 and using conference ID # 13596890.
The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=173463 . A replay of the webcast will be available on PrecisionIR for 90 days and via the investor relations page of the Cantel web site.
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.
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SOURCE Cantel Medical Corp.