Cantel Medical Corp (CMN) has reported 17.42 percent rise in profit for the quarter ended Jan. 31, 2017. The company has earned $18.07 million, or $0.43 a share in the quarter, compared with $15.39 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.55 million, or $0.52 a share compared with $17.41 million or $0.42 a share, a year ago.
Revenue during the quarter grew 16.77 percent to $184.82 million from $158.27 million in the previous year period. Gross margin for the quarter expanded 217 basis points over the previous year period to 47.87 percent. Total expenses were 84.52 percent of quarterly revenues, down from 84.59 percent for the same period last year. This has led to an improvement of 7 basis points in operating margin to 15.48 percent.
Operating income for the quarter was $28.61 million, compared with $24.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $39.51 million compared with $33.05 million in the prior year period. At the same time, adjusted EBITDA margin improved 50 basis points in the quarter to 21.38 percent from 20.88 percent in the last year period.
Jørgen B. Hansen, Cantel’s president and chief executive officer stated, "We are pleased to report solid sales growth and earnings performance this quarter. Our 16.8% reported sales growth is driven by strong organic growth of 12.1%, acquisitions contributing 5.8% and foreign currency translation impact of 1.1%. All three of our major business segments had strong performance in the second quarter. The dedicated focus on our strategic priorities��"new product development, global market expansion and strategic acquisitions continues to drive our growth. Execution of these initiatives has helped us achieve double-digit organic sales growth in 12 of the past 14 quarters. We are also pleased to report a gross margin of 47.9%, up 220 basis points driven by a continued favorable shift in product mix as well as our ongoing continuous improvement efforts."
Debt moves upCantel Medical Corporation has witnessed an increase in total debt over the last one year. It stood at $149 million as on Jan. 31, 2017, up 11.61 percent or $15.50 million from $133.50 million on Jan. 31, 2016. Total debt was 19.78 percent of total assets as on Jan. 31, 2017, compared with 20.13 percent on Jan. 31, 2016. Debt to equity ratio was almost stable at 0.31 as on Jan. 31, 2017, when compared with the last year. Interest coverage ratio deteriorated to 25.41 for the quarter from 28.01 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: editor@irisindia.net
