Cantel Medical Corporation (CMN) has reported 31.89 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $18.80 million, or $0.45 a share in the quarter, compared with $14.25 million, or $0.34 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.32 million, or $0.51 a share compared with $17.12 million or $0.41 a share, a year ago. Revenue during the quarter grew 22.07 percent to $187.72 million from $153.78 million in the previous year period. Gross margin for the quarter expanded 138 basis points over the previous year period to 47.68 percent. Total expenses were 85.58 percent of quarterly revenues, up from 84.54 percent for the same period last year. That has resulted in a contraction of 104 basis points in operating margin to 14.42 percent.
Operating income for the quarter was $27.06 million, compared with $23.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $40.58 million compared with $32.45 million in the prior year period. At the same time, adjusted EBITDA margin improved 52 basis points in the quarter to 21.62 percent from 21.10 percent in the last year period.
Jorgen B. Hansen, Cantels president and chief executive officer stated, "We are pleased to report record sales and earnings performance this quarter. Our 22.1% reported sales growth stems from strong organic growth of 15.8%, acquisitions contributing 7.2% and foreign currency translation impact of (0.9%). All three of our major business segments had strong performance in the first quarter. Our continued investments in new product development, commercial programs as well as the integration of recent acquisitions continue to drive our growth. These investments have helped us achieve double-digit organic sales growth in 11 of the past 13 quarters. We are also pleased to report a gross margin of 47.7%, up 140 basis points driven by a favorable shift in the product mix as well as our continuous improvement efforts."
Working capital increases marginallyCantel Medical Corporation has recorded an increase in the working capital over the last year. It stood at $132.96 million as at Oct. 31, 2016, up 4.38 percent or $5.58 million from $127.38 million on Oct. 31, 2015. Current ratio was at 2.36 as on Oct. 31, 2016, down from 2.70 on Oct. 31, 2015. Days sales outstanding went down to 17 days for the quarter compared with 43 days for the same period last year.
Debt moves up
Cantel Medical Corporation has witnessed an increase in total debt over the last one year. It stood at $161 million as on Oct. 31, 2016, up 9.15 percent or $13.50 million from $147.50 million on Oct. 31, 2015. Cantel Medical Corp has witnessed an increase in long-term debt over the last one year. Total debt was 21.48 percent of total assets as on Oct. 31, 2016, compared with 21.77 percent on Oct. 31, 2015. Debt to equity ratio was almost stable at 0.35 as on Oct. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 24.76 for the quarter from 31.91 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
