Cantel Medical Corp. (CMN, Financial) filed Quarterly Report for the period ended 2008-10-31.
Cantel Medical Corp. is a healthcare company concentrating primarily in infection prevention and control products and diagnostic and therapeutic medical equipment. Through its United States subsidiary MediVators Inc. Cantel serves customers worldwide by designing developing manufacturing marketing and distributing innovative products for the infection prevention and control industry. Cantel Medical Corp. has a market cap of $167.82 million; its shares were traded at around $12.73 with a P/E ratio of 15.53 and P/S ratio of 0.67. Cantel Medical Corp. had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated Cantel Medical Corp. the business predictability rank of 2.5-star.
Gross profit increased by $2,417,000, or 11.4%, to $23,623,000 for the three months ended October 31, 2008 from $21,206,000 for the three months ended October 31, 2007. Gross profit as a percentage of net sales for the three months ended October 31, 2008 and 2007 was 36.7% and 35.3%, respectively.
Selling expenses increased by $561,000, or 8.3%, to $7,350,000 for the three months ended October 31, 2008, from $6,789,000 for the three months ended October 31, 2007, primarily due to (i) higher compensation expense of approximately $430,000 relating to annual salary increases in all of our reporting segments and additional sales personnel primarily in our Water Purification and Filtration and Healthcare Disposables segments and (ii) an increase of approximately $100,000 in advertising and marketing expense primarily related to our Healthcare Disposables segment.
General and administrative expenses increased by $67,000, or 0.7%, to $9,024,000 for the three months ended October 31, 2008, from $8,957,000 for the three months ended October 31, 2007, principally due to increases of approximately $390,000 in compensation expense primarily related to incentive compensation and approximately $132,000 of severance expense related to the relocation of our Medivators manufacturing operations from the Netherlands to the United States. These increases were partially offset by a decrease of approximately $445,000 as a result of foreign exchange gains 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 weaker Canadian dollar and euro against the
Interest expense decreased by $471,000 to $751,000 for the three months ended October 31, 2008, from $1,222,000 for the three months ended October 31, 2007, due to decreases in the average outstanding borrowings and average interest rates.
During the three months ended October 31, 2008, we recorded $271,000 in restructuring expenses, which decreased both basic and diluted earnings per share from operations by approximately $0.02. Including restructuring costs incurred during the three months ended July 31, 2008, the cumulative amount of such costs incurred as of October 31, 2008 was $636,000. We expect to incur approximately $139,000 in additional restructuring costs in the three months ending January 31, 2009. Any changes to the remaining estimated expenses of executing this restructuring plan will be reflected in our future results of operations. The decrease in the total expected restructuring expense estimated at July 31, 2008 compared to our estimate at October 31, 2008 was primarily due to the significant decrease in the value of the euro in relation to the United States dollar. The majority of the restructuring costs are included in our Endoscope Reprocessing segment.
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10-year financial history of CMN.
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Cantel Medical Corp. is a healthcare company concentrating primarily in infection prevention and control products and diagnostic and therapeutic medical equipment. Through its United States subsidiary MediVators Inc. Cantel serves customers worldwide by designing developing manufacturing marketing and distributing innovative products for the infection prevention and control industry. Cantel Medical Corp. has a market cap of $167.82 million; its shares were traded at around $12.73 with a P/E ratio of 15.53 and P/S ratio of 0.67. Cantel Medical Corp. had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated Cantel Medical Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
(iii) In June 2008, we announced and began executing our plan to restructure our Netherlands manufacturing operations as part of our continuing effort to reduce operating costs and leverage our existing United States infrastructure. As a result of this restructuring, a charge of approximately $271,000 was recorded in the three months ended October 31, 2008, which decreased both basic and diluted earnings per share by $0.02. An additional charge of approximately $139,000 is expected in our second quarter of fiscal 2009, as more fully described in Note 16 to the Condensed Consolidated Financial Statements and elsewhere in this MD&A.Gross profit increased by $2,417,000, or 11.4%, to $23,623,000 for the three months ended October 31, 2008 from $21,206,000 for the three months ended October 31, 2007. Gross profit as a percentage of net sales for the three months ended October 31, 2008 and 2007 was 36.7% and 35.3%, respectively.
Selling expenses increased by $561,000, or 8.3%, to $7,350,000 for the three months ended October 31, 2008, from $6,789,000 for the three months ended October 31, 2007, primarily due to (i) higher compensation expense of approximately $430,000 relating to annual salary increases in all of our reporting segments and additional sales personnel primarily in our Water Purification and Filtration and Healthcare Disposables segments and (ii) an increase of approximately $100,000 in advertising and marketing expense primarily related to our Healthcare Disposables segment.
General and administrative expenses increased by $67,000, or 0.7%, to $9,024,000 for the three months ended October 31, 2008, from $8,957,000 for the three months ended October 31, 2007, principally due to increases of approximately $390,000 in compensation expense primarily related to incentive compensation and approximately $132,000 of severance expense related to the relocation of our Medivators manufacturing operations from the Netherlands to the United States. These increases were partially offset by a decrease of approximately $445,000 as a result of foreign exchange gains 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 weaker Canadian dollar and euro against the
Interest expense decreased by $471,000 to $751,000 for the three months ended October 31, 2008, from $1,222,000 for the three months ended October 31, 2007, due to decreases in the average outstanding borrowings and average interest rates.
During the three months ended October 31, 2008, we recorded $271,000 in restructuring expenses, which decreased both basic and diluted earnings per share from operations by approximately $0.02. Including restructuring costs incurred during the three months ended July 31, 2008, the cumulative amount of such costs incurred as of October 31, 2008 was $636,000. We expect to incur approximately $139,000 in additional restructuring costs in the three months ending January 31, 2009. Any changes to the remaining estimated expenses of executing this restructuring plan will be reflected in our future results of operations. The decrease in the total expected restructuring expense estimated at July 31, 2008 compared to our estimate at October 31, 2008 was primarily due to the significant decrease in the value of the euro in relation to the United States dollar. The majority of the restructuring costs are included in our Endoscope Reprocessing segment.
Read the The complete Report
More on CMN:
Gurus buys and sells of CMN
10-year financial history of CMN.
Insider buys/sells of CMN.
