CANTEL MEDICAL CORP. (NYSE: CMN) reported net income of $10,705,000, or $0.26 per diluted share, on a 15% increase in sales to a record $131,377,000 for the fourth quarter ended July 31, 2014, inclusive of $0.02 for charges related to acquisition and CFO retirement costs. This compares with net income of $10,213,000, or $0.25 per diluted share, on sales of $113,973,000 for the fourth quarter ended July 31, 2013.
For the full fiscal year ended July 31, 2014, the Company reported record net income of $43,265,000 or $1.04 per diluted share, on a 15% increase in sales to a record $488,749,000, inclusive of $0.03 for charges related to acquisition and CFO retirement costs. This compares with net income of $39,239,000 or $0.95 per diluted share, on sales of $425,026,000 for the fiscal year ended July 31, 2013, inclusive of $0.01 in net favorable adjustments related to acquisition accounting partially offset by severance and recruiting costs.
Andrew Krakauer, Cantel Medical's President and CEO, stated, "We are pleased to have delivered record sales and strong earnings performance again this quarter. We achieved significant revenue growth in our three major business segments -- Endoscopy, Water Purification and Filtration, and Healthcare Disposables. All three business units have greatly benefited from further investments in new product development, sales and marketing programs and the integration of recent acquisitions for this quarter and for the full year. Most importantly this quarter, we had strong organic sales growth of 13%, and have exceeded 10% organic growth for the past five consecutive quarters."
Krakauer added, "Our Medivators Endoscopy business led sales growth for the company this quarter with a year-over-year increase of 23%, of which 20% was organic. This unit achieved record sales for the fourth consecutive quarter with double digit growth in all product categories. Further, we were pleased to have announced on July 1, that Cantel acquired PuriCore International Limited, which is now called Cantel Medical (UK) Limited. The addition of this United Kingdom-based company further enhances Cantel's global leadership in the automated endoscope reprocessor and related chemistries business.
Our Mar Cor Water Purification and Filtration unit continued its excellent performance as it has all fiscal year with sales growth this quarter of 14%, of which 11% was organic. Sales growth in this segment was led by increased shipments of central and portable water purification equipment. In our Crosstex Healthcare Disposables segment, sales grew 6% for the quarter, all of which was organic.
We are optimistic about Cantel's prospects to grow sales and increase profits in fiscal year 2015. We expect to benefit from our significant prior and ongoing investments in sales and marketing, continued progress with new products, as well as from recent and future acquisitions."
The Company further reported that its balance sheet at July 31, 2014 included current assets of $163,909,000, including cash of $31,781,000, a current ratio of 2.5:1, gross debt of $80,500,000 and stockholders' equity of $365,246,000. Krakauer stated, "The Company has a strong balance sheet and continues to generate significant cash flow and EBITDAS. For the full fiscal year 2014, EBITDAS grew by 13.5% to $95,724,000. Despite borrowing $28 million to fund the acquisition of PuriCore in June, our net debt position since the third quarter increased only about $9 million to $48,719,000."
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 fourth quarter and full fiscal year ended July 31, 2014 on Monday, September 29, 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 Monday, September 29, 2014 at 2:00 PM through midnight on November 29, 2014 by dialing (877) 660-6853 and using conference ID # 13590980.
The call will be simultaneously broadcast live over the Internet on vcall.com at http://www.investorcalendar.com/IC/CEPage.asp?ID=173195. A replay of the webcast will be available for 90 days on PrecisionIR and via the investor relations page of the Cantel website.