Cantel Medical (NYSE: CMD) reported results for the first quarter, posting double-digit revenue and earnings growth to start its fiscal year. It's hard to ask for more from the medical-supply company.
Cantel Medical results: The raw numbers
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What happened with Cantel Medical this quarter?
- Sales of endoscopy products led the group with revenue growth of 19.8%. Some of that came from the addition of BHT, a German company Cantel acquired in August. But even backing out acquisitions, endoscopy sales of grew 10.7% organically. A lot of the growth is coming from the installed base of endoscopy machines driving recurring revenue, which increased 20.8% year over year.
- Water purification and filtration sales increased 7.4%, and the unit still has a backlog of $66 million worth of products that have been ordered but need to be shipped and installed.
- Sales of healthcare disposables increased 5.7%, but income from the segment increased at a higher rate thanks to higher-margin branded products.
- The company generated $30.1 million in cash from operations, up 20.7% year over year, helping it pay down $19.3 million of debt. Net debt now sits at $130.8 million.
What management had to say
Jorgen Hansen, Cantel's president and CEO, said the company isn't done making acquisitions yet and hinted they could come sooner rather than later:
Hansen also highlighted some new products the company is working on to boost revenue organically:
Management is sticking with guidance for its current fiscal year that was given when it reported last quarter. Revenue should grow between 12.5% and 13.5%, with earnings per share (EPS) expected to grow by 20% to 25% while adjusted EPS will should increase only 10% to 13%.
As long as Cantel can keep doing what it did in the first fiscal quarter, it should be able to hit those goals.
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