Cantel Medical Corp. (NYSE: CMD) today announced financial results for its first quarter ended October 31, 2020.

First quarter 2021 net sales were $297.0M, up 15.5% compared to the prior year. Excluding the impact from foreign currency, net sales increased by 14.7%, primarily driven by the impact from acquisitions of 16.5% offset by an organic decline of 1.8%. The decline in organic sales was largely the result from the reduction of elective procedures driven by the worldwide COVID pandemic, which impacted the Company's entire first quarter.

First quarter 2021 GAAP earnings per diluted share increased 307.1% to $0.57, compared to GAAP earnings per diluted share of $0.14 in the prior year period. GAAP earnings per diluted share was positively impacted by higher volumes, expense discipline and integration expenses in the prior year period.

First quarter 2021 non-GAAP earnings per diluted share increased 38.5% to $0.90, compared to non-GAAP earnings per diluted share of $0.65 in the prior year period. The increase in earnings per share was driven by the acquisition of Hu-Friedy, stronger recurring revenue product mix and operating expense discipline.

George Fotiades, Chief Executive Officer, stated, "We are very encouraged by the strong uptake in our infection prevention consumable products as infection prevention protocols put in place over the past six months become standard practice. The recovery of procedures, along with an increase in Cantel's share of revenue per procedure, produced enhanced margins that exceeded our expectations. The record profit performance was also the result of our embedded operating discipline across all of our businesses, including exceeding the realization of synergies associated with the Hu-Friedy acquisition."

The first quarter ended with cash of $258.0M and gross debt of $1,038.4M, while generating EBITDAS of $71.1M and adjusted EBITDAS of $76.3M in the quarter, up 48.6%. The Company continued to build cash within the quarter and utilized its strong cash position to pay down $75.0M of its revolver in September, along with an additional $50.0M following the end of the first quarter in November. The Company has achieved its fiscal year 2021 target of $125.0M in debt reduction and will continue to evaluate opportunities to pay down debt and deleverage on a quarterly basis.

COVID continued to negatively impact elective procedures throughout the first quarter and affected the Company's Medical and Dental segments, but this impact has been significantly less severe than prior quarters as hospitals and clinics utilize enhanced protocols to keep both staff and patients safe.

First quarter financial results and key updates:

• Dental revenue increased 65.1%, driven by the acquisition of Hu-Friedy. Organic revenue increased 1.8% due to the recovery of elective procedures and heightened demand for infection prevention products, including face masks, face shields, surface disinfectants and wipes
• Medical revenue decreased (2.2)% on an organic basis, driven by a decline in capital equipment and was offset by strong recurring revenue due to a recovery of elective procedures and enhanced demand for infection prevention and control solutions
• Strong acceleration in recurring revenue categories driving positive mix in Medical and Dental
• Disciplined expense management and enhanced controls put into place in fiscal year 2020 continue to drive execution
• Enhanced working capital management driving operating cash flow, which increased 40.9% sequentially to $62.0M, with an ending cash balance of $258.0M

About Cantel Medical:

Cantel Medical is a leading global company dedicated to delivering innovative infection prevention products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives. Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, instruments and instrument reprocessing workflow systems serving the dental industry, dialysate concentrates, hollow fiber membrane filtration and separation products. Additionally, we provide technical service for our products.

For further information, visit the Cantel website at www.cantelmedical.com.