Cantel Medical Corp. (NYSE: CMD) stock rose over 4.7% on 4th June, 2019 (as of 12:42 pm GMT-4; Source: Google finance). The company had reported the adjusted revenue growth of 5.2 percent to $228.6 million in the third quarter of FY 19, beating the analysts’ estimates for revenue of $227.6 billion. Excluding the impact from foreign currency, the net sales grew by 6.5%, due to the organic growth of 2.7%, and the impact from acquisitions of 3.8%.
The third quarter ended with cash of $51.3M and gross debt of $235.5M, and has generated the adjusted EBITDAS of $41.4M in the third quarter, down 5.0%.
CMD in the third quarter of FY 19 has reported the adjusted earnings per share of 55 cents. This year the Company has made specific investments in the business that have had an impact on both GAAP and Non-GAAP earnings. The impact to GAAP and Non-GAAP diluted EPS from these investments is anticipated to be a negative $0.11 per diluted share compared to the prior year period.
Moreover, Medical sales grew by 12.2% organically, with total sales growth of 10.4%. Organic growth returned in Dental with the growth of 3.4%, offsetting general inventory adjustments at the channel partners earlier in the year. Dental sales rose 18.5% in total, driven by the acquisition of Omnia S.p.A. which closed earlier in the third quarter. Life Sciences fell 14.0%, due to continued softness in the Hemodialysis Water business, and the sale of the High Purity Water business in Canada in the prior quarter. Internationally, sales rose 12.6%, with 8.3% organic growth
Last month, the company had said Peter Clifford would serve as its chief operating officer and Shaun Blakeman would become its chief financial officer. In March, the company had named longtime board member George Fotiades as its president and chief executive, which had succeeded Jorgen Hansen, who had resigned.
Meanwhile, CMD has completed its previously announced acquisition of Omnia S.p.A., an Italian-based market leader in dental surgical consumables solutions. Previously, the company had acquired Vista Research Group, LLC., a company that provides a complete line of innovative water treatment, purification and management solutions for the dental industry. The total consideration was approximately $10.5 million in cash, consisting of $7 million in an upfront payment and $3.5 million in an earnout payment based on the achievement of certain performance-based targets over a two-year period.