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Cantel Medical Corp. Reports Operating Results (10-Q)

December 10, 2010 | About:
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Cantel Medical Corp. (CMN) filed Quarterly Report for the period ended 2010-10-31.

Cantel Medical Corp. has a market cap of $367.8 million; its shares were traded at around $21.81 with a P/E ratio of 18.5 and P/S ratio of 1.4. The dividend yield of Cantel Medical Corp. stocks is 0.5%. Cantel Medical Corp. had an annual average earning growth of 7.9% over the past 10 years. GuruFocus rated Cantel Medical Corp. the business predictability rank of 2-star.CMN is in the portfolios of Paul Tudor Jones of The Tudor Group, Mario Gabelli of GAMCO Investors, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations: (i) atypical demand in the prior year period for higher margin face masks and other healthcare disposables products as a result of the elevated level of reported cases of the novel H1N1 flu (swine flu), which contributed approximately $2,600,000 and $1,640,000 in incremental gross profit and net income, respectively, or $0.10 in earnings per share, and
Gross profit decreased by $1,266,000, or 4.3%, to $28,192,000 for the three months ended October 31, 2010 from $29,458,000 for the three months ended October 31 2009. Gross profit as a percentage of net sales for the three months ended October 31, 2010 and 2009 was 39.2% and 41.5%, respectively.
Selling expenses increased by $1,107,000, or 13.0%, to $9,631,000 for the three months ended October 31, 2010 from $8,524,000 for the three months ended October 31, 2009, primarily due to (i) an increase of approximately $920,000 relating to additional sales personnel and higher
General and administrative expenses decreased by $187,000 to $9,118,000 for the three months ended October 31, 2010, from $9,305,000 for the three months ended October 31, 2009, primarily due to a decrease of approximately $485,000 in incentive compensation in all of our locations and a $94,000 decrease in stock-based compensation expense, partially offset by increases of approximately $220,000 in administrative personnel, including temporary employees, and approximately $205,000 in acquisition-related costs related to the Gambro Acquisition.
Interest expense decreased by $146,000 to $241,000 for the three months ended October 31, 2010, from $387,000 for the three months ended October 31, 2009, primarily due to decreases in average outstanding borrowings.
Interest income increased by $11,000 to $19,000 for the three months ended October 31, 2010, from $8,000 for the three months ended October 31, 2009, due to increasing our investment in a senior subordinated convertible promissory note issued by BIOSAFE, Inc. (“BIOSAFE”), as more fully described elsewhere in this MD&A.
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