Cantel Medical Corp. (NYSE:CMD) Q4 2020 Earnings Conference Call - Final Transcript
Sep 17, 2020 • 08:30 am ET
in Q3, even though the month of April itself was obviously the worst.
Okay. Perfect. And then last one, I guess, for you Shaun is, just as -- and thank you for the color. As you think about '21, I recognized that it's challenging to put any real numbers out there given the dynamics and some uncertainty around the fourth quarter -- fourth calendar quarter here.
But as I think about the commentary around the EBITDAS margin, again, just help me understand kind of how you're thinking about sequential improvements to get to that? I think you're saying the fourth quarter itself for the quarter should be 19% or better. And it does look like that's a little bit below what the Street was anticipating. So, kind of, any color that you can provide as to what might be different from what the Street expectation is, where it looks like that was kind of over 20% on that fourth quarter EBITDAS, and what might be different as you guys are looking at your plan for the year? Thank you.
Well, to just kind of go back to what we've talked about on the call, right? It doesn't require that we get back to 100% of volumes. So, that's not within our model or thinking on how we get to 19%. It really requires something north of 90% in Medical and Dental. So, we are anticipating a sequential recovery in volumes, but that is going to be more modest slope, obviously than we saw in Q4, which is not -- shouldn't be surprising to anyone going from 80%, 85% to 90%, 95% is a much slower slope. And then continue progress against our Cantel 2.0 initiatives as well that we anticipate will continue to give us an advantage, right, even as we deal with procedural volumes be something south of 100% for the near future.
It's combined with that, right? We're committed to, again, going back to -- we think we set our cost base very well right now to see how volumes go here in the first quarter to second quarter, right? And we're committed to reacting to any of the conditions that are thrown at us to get to that 19%.
So, we're thinking -- obviously, things won't be back the way they were in April, in that scenario, but certainly we are baking in an inherent conservatism, if you will, that we're not out of this and there's potential for other shocks -- give or take -- in certain months as we continue to progress through this. So, we're baking that all in as best as we can and we think that that's right where we're going to end up.
And -- [Speech Overlap]
George L. Fotiades
I was just going to say -- I'd like to add to what Shaun said. Larry, I wouldn't read too much into the difference between 19-plus-percent and 20%. I'm not even sure we put out a number before we spoke today about where we