GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

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

June 09, 2010 | About:
10qk

10qk

18 followers
Cantel Medical Corp. (CMN) filed Quarterly Report for the period ended 2010-04-30.

Cantel Medical Corp. has a market cap of $282.6 million; its shares were traded at around $16.8 with a P/E ratio of 14.3 and P/S ratio of 1.1. The dividend yield of Cantel Medical Corp. stocks is 0.6%. Cantel Medical Corp. had an annual average earning growth of 9.1% over the past 10 years.CMN is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Selling expenses increased by $1,364,000, or 17.1%, to $9,348,000 for the three months ended April 30, 2010, from $7,984,000 for the three months ended April 30, 2009. For the nine months ended April 30, 2010, selling expenses increased by $4,257,000, or 19.1%, to $26,583,000 from $22,326,000 for the nine months ended April 30, 2009. These increases are primarily due to (i) additional sales personnel and higher compensation expense principally in our Endoscope Reprocessing segment relating to incentive compensation, including commissions expense from a more aggressive commission plan, designed to gain market share and expand into new markets, (ii) an increase in advertising and marketing expense primarily related to our Healthcare Disposables segment and (iii) increased sales support services principally in our Water Purification and Filtration and Endoscope Reprocessing segments during the first six months of the nine months

General and administrative expenses increased by $43,000 to $9,149,000 for the three months ended April 30, 2010, from $9,106,000 for the three months ended April 30, 2009, primarily due to (i) higher compensation expense of approximately $110,000 relating to annual salary increases in all our segments and additional personnel primarily in our Water Purification and Filtration segment and (ii) an increase of approximately $151,000 relating to foreign currency primarily as a result of translating general and administrative expenses of our international subsidiaries using a significantly stronger Canadian dollar against the United States dollar, partially offset by a decrease of $197,000 in stock-based compensation expense.

General and administrative expenses increased by $559,000, or 2.1%, to $27,726,000 for the nine months ended April 30, 2010, from $27,167,000 for the nine months ended April 30, 2009, primarily due to (i) higher compensation expense of approximately $490,000 relating to annual salary increases in all our segments, incentive compensation primarily in our Healthcare Disposables segment and additional personnel principally in our Water Purification and Filtration segment, (ii) an increase of approximately $361,000 relating to foreign currency primarily as a result of the inclusion of foreign exchange gains during the prior period associated with translating certain foreign denominated assets into functional currencies as well as the translation of general and administrative expenses of our international subsidiaries using a significantly stronger Canadian dollar against the United States dollar and (iii) an increase of $255,000 in stock-based compensation expense. These increases were partially offset by a decrease in overhead and restructuring costs at our Netherlands operation due to the completion of restructuring activities, as more fully described elsewhere in this MD&A, and approximately $184,000 in lower bad debt expense primarily in our Water Purification and Filtration segment.

Research and development expenses (which include continuing engineering costs) increased by $81,000 to $1,342,000 for the three months ended April 30, 2010, from $1,261,000 for the three months ended April 30, 2009. For the nine months ended April 30, 2010, research and development expenses increased by $455,000 to $3,764,000, from $3,309,000 for the nine months ended April 30, 2009. These increases are primarily due to increased development work on certain new products as well as continuing engineering on existing products primarily in our Water Purification and Filtration, Endoscope Reprocessing and Therapeutic Filtration segments.

Interest expense decreased by $355,000 to $233,000 for the three months ended April 30, 2010, from $588,000 for the three months ended April 30, 2009. For the nine months ended April 30, 2010, interest expense decreased by $1,054,000 to $959,000, from $2,013,000 for the nine

Interest income decreased by $5,000 to $19,000 for the three months ended April 30, 2010, from $24,000 for the three months ended April 30, 2009. For the nine months ended April 30, 2010, interest income decreased by $97,000 to $35,000, from $132,000 for the nine months ended April 30, 2009, primarily due to a decrease in average interest rates and a more conservative investment philosophy.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.4/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK