Welcome to the Cantel Medical Corp. first quarter earnings conference call. (Operator Instructions) It is now my pleasure to introduce our host, Andrew Krakauer, President and CEO of Cantel Medical Corp. Thank you. You may now begin.

Thank you and welcome to our first quarter fiscal year 2010 conference call. Before we start I would like to remind everyone that this conference call may contain forward-looking statements. All forward-looking statements involve risks and uncertainties including without limitations the risks detailed in the company’s filings and reports with the Securities and Exchange Commission. Such statements are only predictions and actual results may differ materially from those projected. Okay, with that said again good morning to everyone. With me today on our call are Chuck Diker, Chairman of the Board; Craig Sheldon, Senior Vice President and Chief Financial Officer and Treasurer; Roy Malkin, President and CEO of our Minntech subsidiary; and Steve Anaya, VP and Controller of the company. Cantel Medical reported another outstanding performance in the first quarter of fiscal year 2010. In fact the company has now reported eight sequential quarters of improved earnings results and this quarter set all time financial performance records for the company. We reported first quarter earnings of $0.37 per share compared to the prior year’s first quarter earnings of $0.20 per share. This represents an 85% increase in net income. As we pointed out in our press release, while all of our reporting segments showed improved gross margin and operating profit in the quarter this remarkable performance was significantly impacted by unusually high demand for our face masks driven by the H1N1 outbreak. I would like to thank all of our loyal and hard working employees for their great efforts and achievements again this quarter. These results reaffirm our overall strategic business direction, the rising importance and awareness of infection prevention and control in general, the effectiveness of our managers and staff and support our continued optimism about the future of Cantel with or without atypical demand for any one particular…

Thank you Andy. Good morning everyone. What I would like to do is move through the press release that was issued this morning and start with some comments on the income statement. As you can see, sales were very strong in the first quarter and increased by 10.2% compared to last year’s first quarter. As Andy indicated before we had outstanding top line growth in the first quarter from both healthcare disposables as well as endoscope reprocessing. Gross profit, last year we continued to mention gross profit was one of the areas we wanted to focus on and you can clearly see the results in the GP area continue to be very, very strong. Our gross profit percentage was 41.5% in the first quarter. That is well up from the 36.7% in last year’s first quarter and really an extraordinary 4.8 increase in gross margin points. 4.8 points. So very good performance. This GP percentage is the highest ever for our current business and represents the sixth consecutive quarter we have reported improvement in gross profit percentage compared to the immediately preceding quarter. This illustrates our continued efforts to improve sales mix and drive efficiencies. So as we break down gross profit we really benefited from several key items. You will probably these as being somewhat carry-over’s from last year. Number one is very favorable product mix. We have had good sales of high margin products such as disinfectant and consumables and endoscope reprocessing, sterilants and filters in our water purification filtration segment and of course face masks and healthcare disposables. Additionally, the decline in dialysis sales is almost entirely in the area of our lowest margin domestic concentrated sales. Number two, customer price increases in certain key product areas, some of them are carry-overs from last year. This coupled…

Thanks Craig. In summary this quarter has been a particularly great success for the company much of it driven by this atypical demand due to the H1N1 outbreak. Given the increasing levels of vaccine supply and the recent abatement in influenza cases, I anticipate a return to historic levels of purchasing for our face masks for now. We do not give specific guidance but I expect Cantel to return to a more normal level of business for now in general. However, I do note this pandemic has raised global public awareness around the importance of infection prevention and control and we continue to see future opportunities ahead as healthcare professionals, governments and the general public embrace the seriousness and the need for greater attention to preventing the acquisition and transmission of infection. Specifically on H1N1, obviously I cannot predict what is going to happen more than anybody else can. At the moment it seems to be abating but none of us can predict what is going to happen in the traditional flu season January through March. We know that there are a lot of people that are not taking the H1N1 flu shot because they are afraid to take it. Maybe nothing will happen or maybe it will mutate, or it could expand in the winter months. These are all future things that we will just have to wait and see what happens. For now our commercial channels have been satisfied with their supplies. My take-away from this quarter is that Cantel has tremendous earnings capability in its portfolio. We did make $0.37 with the products that we have and sell. We are always looking for ways to maximize these opportunities whether they are short-term, medium or long-term. We will capitalize on these opportunities opportunistically just as we did with…

(Operator Instructions) The first question comes from the line of Dalton Chandler – Needham & Company. Dalton Chandler – Needham & Company: Let me start by asking a little bit about your comments on the disposables business and your expectation it will return to a more normal growth pattern. First of all should we assume that is going to happen in the current quarter or do you think you have a little bit more unusual growth from H1N1? Secondly, you talked about 3-5% organic growth in the quarter. Is that what you expect it to return to?

Let me answer your second one first. We think at the moment until unemployment picks up and the dental market starts to resume its historical 3-5% growth that as we get organic growth of 3-5% in what effectively is a flat to down market that is a good rate for us on an organic basis. I think that is probably a good way of looking at our base business in healthcare disposables. As far as masks go, I would view the second quarter as likely and again I can’t be specific today. I don’t really know exactly and be a little more specific than we normally get but my best thought would be to assume we are at somewhat normal levels in the second quarter because while there is clearly some commercial business that is still being generated by some distributors, others are at full in their channel and may actually be slightly less than normal. So I prefer to think about it as a normal quarter for healthcare disposables. Dalton Chandler – Needham & Company: You also had a really strong quarter in endoscope reprocessing. Can you give us any color on that and what you would expect going forward there?

I think in general we have continued to add resources in both sales and marketing in that business so we are getting better coverage. We have launched several new products and the sales force I think is just getting better. I don’t want to make any prediction other than I would be disappointed if we didn’t continue with at least some version of double digit growth. Dalton Chandler – Needham & Company: On the pickup in the gross margin you did mention mix was a big part of that. As the disposables returns to its more normalized growth pattern, what do you think is going to happen to the gross margin?

I think as a general statement, we have moved our business now for awhile to where we have about 75% consumable type products, consumables and service versus 25% capital equipment. As long as the capital equipment continues to not be quite at the levels we want such as our water business, we should be able to stay relatively close to the gross profit percentage but clearly I think it is a hard statement to make that these mask sales return to more normal levels it will be hard to be at that 41 plus percent gross profit percentage. We will probably be lower than that but we still expect to be very high. We definitely have a different business model than we had several years ago. Dalton Chandler – Needham & Company: Any sense of when you might have the BIOSAFE mask on the market in the US?

I would say we cannot give an estimate there. We are still certainly months. Probably several months away from a submission to the FDA. Whether or not we get guidelines or not and that could take several months. The FDA is very unpredictable. It has been almost 3 years since they initially, we submitted recommendations to their guidelines for antimicrobial coatings for masks over two years ago. I don’t know the answer to that question. My guess is it is really a 2011 story, not a 2010 story as far as the US. Dalton Chandler – Needham & Company: A final housekeeping question, can you give us the CapEx for the quarter?

CapEx for the quarter was approximately $1.4 million which is very normal by historical standards and pretty much right on the money with what we spent last year in the first quarter.

The next question comes from the line of Jeffrey Cohen – C.K. Cooper & Co. Jeffrey Cohen – C.K. Cooper & Co.: I have one housekeeping question and one other question. First of on the housekeeping side, could you discuss the common shares and diluted shares for the quarter?

In terms of the gross number of those shares? Jeffrey Cohen – C.K. Cooper & Co.: Yes.

The diluted shares for the quarter were 16,768,000 and the basic shares were 16,650,000. Jeffrey Cohen – C.K. Cooper & Co.: The second question is for this quarter and probably for what you project for 2010 overseas sales as a percentage of gross sales. Do you expect that number to increase? I know it has been around 20% if I am not mistaken.

I would expect it to be fairly constant. I am still expecting some significant success in the U.S. which will keep the percentage where it is even as we get successful in some areas internationally. For example that pharmaceuticals business I was talking about at the moment is starting out in Europe. But I hope to see the US growing as well. I would say it is going to be pretty much the same although I do believe international growth is an opportunity.

The next question comes from the line of Mitra Ramgopal - Sidoti & Co. Mitra Ramgopal - Sidoti & Co.: As you go through the next couple of years I think right now about 75 % of the business is recurring because it is consumables. Do you see that moving up materially from here?

Let me just put it this way. I would not be unhappy if we were able to grow those businesses and develop the chemistry that would start moving that number beyond 75%. On the other hand, I would not be unhappy if our equipment sales start returning to significant growth as the economic conditions around the world improve. So if everything was growing and the equipment businesses were returning and we stayed at 75% I would still [still be happy] but I think in general I see that number probably still increasing a bit. Mitra Ramgopal - Sidoti & Co.: You did touch on acquisitions. Looking at the balance sheet clearly you have the ability to go and finance something pretty sizeable. I don’t know if you could give us a sense of any areas or what I kind of the overall strategy is for an acquisition?

We are very actively looking for acquisitions led by Seth here. Let me just give you flavor. We are looking at several different areas. We would like to continue to add both products and service coverage in the water business plus with what we have just done with G.E.M. That is one. We are looking in general for acquisitions that could help us in our liquid chemical germicide businesses with products that can be sold throughout all the sales forces we have and all the different markets we have completed. And we also have a particular focus and are interested in companies that are in some ways related to helping us expand into the hospital business in general. So those are our big categories.

There appear to be no further questions. I would like to turn the call back over to the speakers for any closing comments.

Again thanks everybody for listening. I look forward to speaking to everybody on our second quarter fiscal year 2010 conference call in March. Thanks again. Goodbye.

This does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.