Cantel Medical Corp. (NYSE:CMD) Q4 2020 Earnings Conference Call - Final Transcript

Sep 17, 2020 • 08:30 am ET

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Cantel Medical Corp. (NYSE:CMD) Q4 2020 Earnings Conference Call - Final Transcript

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Executive
Peter Clifford

anticipate bringing on the first two machines by the end of the first quarter and another two machines online by the end of the second quarter, with the remaining four machines in the back half of fiscal '21. Six of these machines will be located in North America while two will be in our Italy production site, supporting regional demand.

Despite the continued impact of COVID, we remain focused on executing on our key priorities in support of our Cantel 2.0 initiatives. Key among those priorities has been the reconfiguration of the U.S. sales and commercial organization to support the Cantel 2.0 initiatives focused on ASCs as well as enhanced focus on our hospital Complete Circle of Protection strategy.

Within the ASC space, we have created for the first time a dedicated ASC sales and marketing team. We are deepening our relationship with ASCs as well as hospital-owned outpatient facilities. To be clear, we have a strong leading share of the AER market within the ASC space, with the opportunity for us to broaden the penetration of our full portfolio within the ASC market.

We see great opportunity to drive this penetration by an enhanced focus on the overall value and efficiency that our full portfolio brings to the ASC setting, in addition to the improved IP&C benefits.

In the acute care setting, we are seeing early success with our investment in key account directors and the expansion of our infection prevention clinicians in demonstrating the overall value of our CCOP solution. We continue to invest in these CADs and IP clinicians to further enhance our engagement with large healthcare systems and influence their overall reprocessing workflow protocols, which has resulted in broader adoption of our product solutions.

We have transitioned our hospital sales organization to full bag sales reps from product specialist previously focused on solely capital or consumables. With this transition, we have enabled our commercial team to focus on the broad solution of our CCOP offering, while still selling to product users and key department heads.

In addition, we are experimenting with inside sales to assist the field reps in a model that we have had notable success within the U.K. This builds a capability that ensures we have strong commercial presence even when access maybe limited. This has been a reconfiguration rather than a restructuring, allowing us to get better focus and broader capability. Yet, overall, this is cost neutral to the P&L.

Looking to Europe, we have made good progress on both the footprint consolidation as well as our commercial efforts. We are on-track with our site consolidation with the successful move of all AER production from the BHT operation in Germany to our Pomezia Italy facility on August 1st. This was an important project to simplify our Germany business as well as continue to expand our manufacturing center of excellence in Italy.

In the fourth quarter, we closed our Dusseldorf sales office, moving all German activity to our existing Augsberg location, as we continue