Cantel Medical Corp. (NYSE:CMN)
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The Company is a provider of infection prevention and control products in the healthcare market.
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The Company is a provider of infection prevention and control products in the healthcare market.
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Cantel Medical Corp. is a leading provider of infection prevention and control products in the healthcare market. The company operates through four subsidiaries including Minntech, Crosstex, Mar Cor Purification and Saf-T-Pak. The company operates in six different segments through these subsidiaries which are: Dialysis, Endoscope Reprocessing and Therapeutic Filtration which are operated through Minntech, Dental operating segment operated through Crosstex, Water Purification and Filtration operated through Mar Cor Purification and Specialty Packaging operated through Saf-T-Pak.
The company recently reported 9% increase in its revenues for the second quarter of 2007 as compared to the same period in 2006. The company divested the Carsen, its Canadian endoscope distribution business and is now fully focused on maintaining its leadership in infection prevention and control. It also recently entered into a distribution agreement for the MDS in the United Kingdom which is expected to increase its sales coverage and reduce operating costs. Additionally, with the shift in product mix achieved by the company over the past two quarters, over two-thirds of the company’s revenues are now recurring in nature.
According to a research over 2.5 million people acquire an infection while in the care of a US healthcare facility every year costing the US healthcare system more than 5.5 billion annually. Additionally with an increased recurrence of drug-resistant staph infections otherwise know as MRSA or super-bugs and the threat of avian flu and bio terrorism offer tremendous opportunities for Cantel in the future. Moreover with the aging of the population in the US and developing countries, procedure growth continues in the endoscopy market which bodes well for the endoscope reprocessing business. Through the innovation of proprietary products and continued acquisitions, the company is well positioned to cash on these opportunities and it is expected that it will please the investors by its performance in the future.
Cantel Medical Corporation, through its wholly-owned subsidiary Mar Cor Purification, completed the purchase of GE Water & Process Technologies' water dialysis business for a cash purchase price of $30.6 million before cash tax benefits. With this acquisition, Mar Cor Purification, which provides filtration, water and disinfection technologies to the medical, life science and industrial marketplace, now has service offices in 17 US and Canadian cities, with six resin regeneration plants located in Atlanta, Boston, Chicago, Philadelphia, Montreal and Toronto. Earlier, in August 2005, the company had acquired Crosstex which was a leading manufacturer and reseller of single-use infection control products used principally in the dental market. This acquisition was done to increase the percentage of their net sales derived from recurring consumables and to increase their earnings per share. As a result of the acquisition, they added a new reporting segment known as Dental which contributed to sales of $13.7 million in the quarter ended January 31, 2007 and $13.1 million a year before. The company had reported earnings per share of $0.14 in the latest quarterly results as compared to $0.11 previous year.Through continued technology upgradations by various acquisitions, Cantel Medical is expected to perform well in the future.