Little Falls-based Cantel reports record sales
Cantel Medical Corp., the fast-growing Little Falls infection-control company, reported Tuesday that it had record sales of $119 million for the fiscal second quarter, fueled by strong performance in its endoscopy, water-purification and health-care disposables units.
Sales in the company's dialysis unit were down about 13 percent in the period, a drop the company said it expected.
For the quarter ended Jan. 31, the company reported net income of $11.1 million, or 27 cents a share, on sales of $119 million. That compares with net income of $10.5 million, or 25 cents, on sales of $106.4 million in the same period a year earlier.
The company completed two acquisitions during the quarter - the Israeli company Jet Prep Ltd. in the endoscopy segment and Sterilator Co. of western New York state in health-care disposables.
More importantly, said Chief Executive Officer Andrew Krakauer, the company had organic sales growth - that is, from existing businesses, not from any acquisitions - of 10 percent, led by the water purification and filtration unit.
"These positive results confirm the continued success of our strategic approach to growth, which includes investing in new product development, sales and marketing programs and acquisitions," said Krakauer. He said the company's aspiration is to "double sales and profits in the next five years," in part by increasing its business overseas, especially in Asia. To that end, Cantel is hiring sales and marketing employees, both in the United States and overseas.
"We're increasing our focus on the international market, where we see many opportunities to acquire good businesses," Krakauer said.
The company paid about $900,000 during the quarter in medical device excise taxes, a special duty levied on the industry to help pay for extending health insurance to more Americans under the Affordable Care Act.
Cantel, which has about 1,300 employees, has grown in recent years by increasing sales organically and acquiring other health-care companies.