CANTEL MEDICAL CORP. (NYSE: CMN) reported a 65% increase in net income to $4,279,000, or $0.26 per diluted share, on a 4% increase in sales to a record $66,793,000 for the fourth quarter ended July 31, 2009. This compares with net income of $2,596,000, or $0.16 per diluted share, on sales of $64,281,000 for the fourth quarter ended July 31, 2008.
For the fiscal year ended July 31, 2009, the Company reported a 79% increase in net income to $15,569,000, or $0.94 per diluted share, on a 4% increase in sales to $260,050,000. This compares with net income of $8,693,000, or $0.53 per diluted share, on sales of $249,374,000 for the fiscal year ended July 31, 2008. Additionally, EBITDAS for the fiscal year increased 32% from $31,786,000 to $42,059,000.
According to Andrew Krakauer, Cantel's President and CEO, "We are pleased to have delivered another quarter of substantial earnings growth. This reflects our seventh sequential quarter of improved results. Cantel continued to benefit from increased sales of higher margin consumables, including disinfectants, sterilants and face masks, as well as an increase in service. These recurring revenues now make up 75% of overall sales."
Krakauer added, "Specifically, Cantel benefited greatly in the quarter from the strength of its Healthcare Disposables segment where sales and operating profits grew by 21% and 146%, respectively. This outstanding performance was primarily driven by face mask sales tied to the spread of the 'swine flu' or novel H1N1 virus. Cantel is one of the largest United States based manufacturers of FDA-cleared face masks. In the quarter, we also had strong performances in both our dialysis and endoscope reprocessing businesses due to increased sales of both reprocessing equipment and consumables, further aided by reductions in manufacturing and distribution costs."