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Articles 

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

March 11, 2011 | About:

Cantel Medical Corp. (NYSE:CMN) filed Quarterly Report for the period ended 2011-01-31.

Cantel Medical Corp. has a market cap of $428.1 million; its shares were traded at around $25.09 with a P/E ratio of 22.9 and P/S ratio of 1.7. 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.

Highlight of Business Operations:

(i) atypical demand in the prior year periods 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 $800,000 and $495,000 in incremental gross profit and net income, respectively, or $0.03 in earnings per share, for the three months ended January 31, 2010 and approximately $3,400,000 and $2,135,000 in incremental gross profit and net income, respectively, or $0.13 in earnings per share, for the six months ended January 31, 2010, and

General and administrative expenses increased by $1,034,000 to $10,306,000 for the three months ended January 31, 2011, from $9,272,000 for the three months ended January 31, 2010, primarily due to increases of (i) approximately $640,000 in compensation expense relating to annual salary raises, additional administrative personnel, employee benefit costs and incentive compensation including stock-based compensation expense, (ii) $165,000 in outside professional fees and (iii) $112,000 in amortization expense of intangible assets primarily relating to our acquisitions of Gambro Water and Purity.

General and administrative expenses increased by $847,000 to $19,424,000 for the six months ended January 31, 2011, from $18,577,000 for the six months ended January 31, 2010, primarily due to increases of (i) approximately $240,000 in Gambro Water acquisition-related costs including certain outside professional fees, (ii) approximately $278,000 in compensation expense and (iii) $153,000 in amortization expense of intangible assets primarily related to our acquisitions of Gambro Water and Purity.

Research and development expenses (which include continuing engineering costs) increased by $278,000 to $1,435,000 for the three months ended January 31, 2011, from $1,157,000 for the three months ended January 31, 2010. For the six months ended January 31, 2011, research and development expenses increased by $642,000 to $3,064,000, from $2,422,000 for the six months ended January 31, 2010.

Interest expense decreased by $77,000 to $262,000 for the three months ended January 31, 2011, from $339,000 for the three months ended January 31, 2010. For the six months ended January 31, 2011, interest expense decreased by $223,000 to $503,000, from $726,000 for the six months ended January 31, 2010. These decreases were primarily due to decreases in average outstanding borrowings.

Interest income increased by $11,000 to $19,000 for the three months ended January 31, 2011, from $8,000 for the three months ended January 31, 2010. For the six months ended January 31, 2011, interest income increased by $22,000 to $38,000, from $16,000 for the six months ended January 31, 2010. These increases were due to increasing our investment in a senior subordinated convertible promissory note issued by BIOSAFE, Inc. (BIOSAFE) during the prior year, as more fully described elsewhere in this MD&A.

Read the The complete Report

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10qk
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