- Email: [email protected]
Cantel Medical Corp, USA
COMPANY WATCH
Cantel Medical Corp, USA
Clarcor Inc, USA
Key Figures (US$ million) Fourth quarter ended 31.7 2009
2008
Net Sales
66.8
64.3
Cost of Sales
40.1
41.6
Gross Profit
26.7
22.7
R&D Expenses Total Operating Expenses Net Income
30.8.2008
Net Sales Of Which: Engine/Mobile Filtration Industrial/Environmental Filtration
230.3
276.3
96.4 114.6
117.8 138.7
1.3
1.1
Cost of Sales
156.3
188.2
19.2
18.1
Gross Profit
73.9
88.1
4.3
2.6
Operating Profit
32.1
39.5
Net Earnings
21.3
25.8
Nine months ended 29.8.2009
30.8.2008
Year ended 31.7 2009
2008
Net Sales
260.1
249.4
Cost of Sales
160.6
161.7
Gross Profit
99.5
87.6
4.6
4.0
Total Operating Expenses
72.0
69.7
Net Income
15.6
8.7
R&D Expenses
Key Figures (US$ million) Third quarter ended 29.8.2009
Net Sales Of Which: Engine/Mobile Filtration Industrial/Environmental Filtration
673.4
793.6
274.1 348.0
331.5 404.5
Cost of Sales
468.8
543.3
Gross Profit
204.5
250.3
Operating Profit
70.1
101.3
Net Earnings
46.9
66.6
COMMENT Healthcare firm Cantel Medical enjoyed a strong fourth quarter of fiscal 2009 with its net sales up 3.9% on a year earlier at US$66.8 million and its net income 65.4% stronger at US$4.3 million. “We are pleased to have delivered another quarter of substantial earnings growth,” Andrew Krakauer, Cantel’s president and CEO, said. “This reflects our seventh sequential quarter of improved results. Krakauer said that Cantel continued to benefit from increased sales of higher margin consumables, including disinfectants, sterilants and face masks, as well as an increase in service income, with these recurring revenues now making up 75% of its overall sales. He said the company had particularly benefited from face mask sales driven by the spread of the ‘swine flu’ virus. “The diversity of Cantel’s product portfolio within infec-
10
Filtration Industry Analyst
tion prevention and control and our focus on growing consumables and service revenue, supported by a large base of installed equipment, have benefited our consolidated results during the quarter and for the full 2009 fiscal year,” Krakauer added. “Excluding the Dialysis segment, where sales of low margin dialysate concentrate fell as expected, revenue growth for the full fiscal year was 7.6%.” Krakauer said that Cantel remained optimistic that its strong momentum would continue into fiscal year 2010, with the company planning to accelerate its new product development efforts and its investment in sales and marketing. He said the company would also be aggressively seeking strategic acquisitions to improve its revenue growth rate and operating margins in fiscal year 2011 and beyond. ■ www.cantelmedical.com
COMMENT Clarcor has posted net sales for its third quarter of US$230.3 million, down 17% on the year earlier. Net earnings declined 18% on the 2008 figure in reaching US$21.3 million, while operating profit fell 19% to US$32.1 million. Sales in the company’s Engine/Mobile Filtration segment dropped 18% on a year earlier to US$96.4 million, while its operating profit fell 24% to US$21.9 million. In the Industrial/Environmental Filtration segment, sales declined 17% on the fiscal 2008 third quarter to total US$114.6 million, while operating profit was down 24% to US$7.9 million. “In large measure, the third quarter this year continued the
trends we saw during the first and second quarters,” Norm Johnson, Clarcor’s chair and CEO, said. “Demand in most markets was still lower than in early 2008, and certainly 2007. The good news, however, is that, for the most part the markets we sell to are not getting worse, though it would be premature to say that they are improving.” Johnson added that Clarcor had improved its profits in each quarter this year compared with the preceding quarter primarily due to cost reduction efforts by its operating companies, new product introductions and new customer relationships. ■ www.clarcor.com
November 2009
Cantel Medical Corp, USA
Clarcor Inc, USA
Key Figures (US$ million) Fourth quarter ended 31.7 2009
2008
Net Sales
66.8
64.3
Cost of Sales
40.1
41.6
Gross Profit
26.7
22.7
R&D Expenses Total Operating Expenses Net Income
30.8.2008
Net Sales Of Which: Engine/Mobile Filtration Industrial/Environmental Filtration
230.3
276.3
96.4 114.6
117.8 138.7
1.3
1.1
Cost of Sales
156.3
188.2
19.2
18.1
Gross Profit
73.9
88.1
4.3
2.6
Operating Profit
32.1
39.5
Net Earnings
21.3
25.8
Nine months ended 29.8.2009
30.8.2008
Year ended 31.7 2009
2008
Net Sales
260.1
249.4
Cost of Sales
160.6
161.7
Gross Profit
99.5
87.6
4.6
4.0
Total Operating Expenses
72.0
69.7
Net Income
15.6
8.7
R&D Expenses
Key Figures (US$ million) Third quarter ended 29.8.2009
Net Sales Of Which: Engine/Mobile Filtration Industrial/Environmental Filtration
673.4
793.6
274.1 348.0
331.5 404.5
Cost of Sales
468.8
543.3
Gross Profit
204.5
250.3
Operating Profit
70.1
101.3
Net Earnings
46.9
66.6
COMMENT Healthcare firm Cantel Medical enjoyed a strong fourth quarter of fiscal 2009 with its net sales up 3.9% on a year earlier at US$66.8 million and its net income 65.4% stronger at US$4.3 million. “We are pleased to have delivered another quarter of substantial earnings growth,” Andrew Krakauer, Cantel’s president and CEO, said. “This reflects our seventh sequential quarter of improved results. Krakauer said that Cantel continued to benefit from increased sales of higher margin consumables, including disinfectants, sterilants and face masks, as well as an increase in service income, with these recurring revenues now making up 75% of its overall sales. He said the company had particularly benefited from face mask sales driven by the spread of the ‘swine flu’ virus. “The diversity of Cantel’s product portfolio within infec-
10
Filtration Industry Analyst
tion prevention and control and our focus on growing consumables and service revenue, supported by a large base of installed equipment, have benefited our consolidated results during the quarter and for the full 2009 fiscal year,” Krakauer added. “Excluding the Dialysis segment, where sales of low margin dialysate concentrate fell as expected, revenue growth for the full fiscal year was 7.6%.” Krakauer said that Cantel remained optimistic that its strong momentum would continue into fiscal year 2010, with the company planning to accelerate its new product development efforts and its investment in sales and marketing. He said the company would also be aggressively seeking strategic acquisitions to improve its revenue growth rate and operating margins in fiscal year 2011 and beyond. ■ www.cantelmedical.com
COMMENT Clarcor has posted net sales for its third quarter of US$230.3 million, down 17% on the year earlier. Net earnings declined 18% on the 2008 figure in reaching US$21.3 million, while operating profit fell 19% to US$32.1 million. Sales in the company’s Engine/Mobile Filtration segment dropped 18% on a year earlier to US$96.4 million, while its operating profit fell 24% to US$21.9 million. In the Industrial/Environmental Filtration segment, sales declined 17% on the fiscal 2008 third quarter to total US$114.6 million, while operating profit was down 24% to US$7.9 million. “In large measure, the third quarter this year continued the
trends we saw during the first and second quarters,” Norm Johnson, Clarcor’s chair and CEO, said. “Demand in most markets was still lower than in early 2008, and certainly 2007. The good news, however, is that, for the most part the markets we sell to are not getting worse, though it would be premature to say that they are improving.” Johnson added that Clarcor had improved its profits in each quarter this year compared with the preceding quarter primarily due to cost reduction efforts by its operating companies, new product introductions and new customer relationships. ■ www.clarcor.com
November 2009