STEWARTVILLE, Minn., Jan. 26 /PRNewswire-FirstCall/ -- Rochester
Medical Corporation (NASDAQ:ROCM) today announced operating results
for its first quarter ended December 31, 2009. The Company reported
record sales of $10,232,000 for the current quarter compared to
$8,436,000 for the first quarter of last year. It also reported net
loss of $169,000 or ($.01) per diluted share compared to net income
of $54,000 or $.00 per diluted share for the first quarter of last
year. The approximate 21% increase in sales (20% on a constant
currency basis) resulted from a 21% increase in Rochester Medical
Branded Sales (19% on a constant currency basis), and a 22%
increase in Private Label Sales (22% on a constant currency basis).
Constant currency basis assumes current exchange rates for all
periods in order to exclude the impact of foreign exchange
variations. In the first quarter of 2010 the U.S. dollar was
somewhat weaker versus the pound sterling thus having a small
positive effect on Rochester Medical Branded Sales levels in
translated U.S. dollars given the significant volume of branded
sales in the United Kingdom. Net income adjusted for certain
non-recurring unusual items and certain recurring non-cash
expenses, or "Non-GAAP Net Income" for the current quarter was
$148,000 or $.01 per diluted share compared to Non-GAAP Net Income
of $358,000 or $.03 per diluted share for the first quarter of last
year. The decrease for the current quarter is primarily
attributable to increased investment in sales and marketing.
Commenting on today's announcement Rochester Medical CEO and
President Anthony J. Conway said, "We had a very solid quarter. The
overall sales growth is strong, and I am particularly pleased that
combined sales of Rochester Medical Branded products in the U.S.
and U.K. markets grew at a 25% pace, and combined Intermittent
Catheter sales in this market increased 61% over last year. These
are the two markets in which we have our own direct sales force.
Also noteworthy is the fact that U.S. Foley catheter sales for the
first quarter increased 73% over the first quarter of last year.
The new StrataSI(TM) and StrataNF(TM) Foley Catheters are being
very well received for their latex-free comfort and anti-infection
properties." He added "We have just rolled out our FemSoft® Insert
Introduction in the U.K., and we will be launching significant
Direct to Consumer FemSoft pilot programs in North Carolina and
Southern Florida in February. This campaign will include television
and print advertising and clinician based education efforts
sponsored both by Rochester Medical and Homecare
Distributors/Providers. In addition to our other sales and
marketing activities we are investing significantly in the FemSoft
opportunity while maintaining our solid cash position." Conway
concluded, "We are off to a good start for fiscal 2010, and we
expect to have a good year." Rochester Medical has provided
Non-GAAP Net Income in addition to earnings calculated in
accordance with generally accepted accounting principles (GAAP)
because management believes Non-GAAP Net Income provides a more
consistent basis for comparisons that are not influenced by certain
charges and non-cash expenses and are therefore helpful in
understanding Rochester Medical's underlying operating results.
Similarly, constant currency represents reported sales with the
cost/benefit of currency movements removed. Management uses the
measure to understand the growth of the business on a constant
dollar basis, as fluctuations in exchange rates can distort the
underlying growth of the business both positively and negatively.
While we recognize that foreign exchange volatility is a reality
for a global company, we routinely review our company performance
on a constant dollar basis, and we believe this also allows our
shareholders to understand better our Company's growth trends.
Non-GAAP Net Income and constant currency are not measures of
financial performance under GAAP, and should not be considered an
alternative to net income or any other measure of performance or
liquidity under GAAP. Non-GAAP Net Income and constant currency are
not comparable to information provided by other companies. Non-GAAP
Net Income and constant currency have limitations as analytical
tools and should not be considered in isolation or as a
substitution for analysis of our results as reported under GAAP.
Reconciliations of Net Income and Non-GAAP Net Income, and
reconciliations of sales under GAAP and sales on a constant
currency basis, are presented at the end of this press release.
This press release contains "forward-looking statements" that are
based on currently available information, operating plans and
management's expectations about future events and trends. They
inherently involve risks and uncertainties that could cause actual
results to differ materially from those predicted in such
forward-looking statements, including the uncertainty of estimated
revenues and profits, the uncertainty of current domestic and
international economic conditions that could adversely affect the
level of demand for the Company's products and increased volatility
in foreign exchange rates, the uncertainty of market acceptance of
new product introductions, the uncertainty of gaining new strategic
relationships or locating and capitalizing on strategic
opportunities, the uncertainty of timing of private label sales
revenues (particularly international customers), FDA and other
regulatory review and response times, and other risk factors listed
from time to time in the Company's SEC reports and filings,
including, without limitation, the section entitled "Risk Factors"
in the Company's Annual Report on Form 10-K for the year ended
September 30, 2009 and reports on Forms 10-Q and 8-K. Readers are
cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. The
Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise. The Company will hold a quarterly conference call to
discuss its earnings report. The call will begin at 3:30 p.m.
central time (4:30 p.m. eastern time). This call is being webcast
by Thomson/CCBN and can be accessed at Rochester Medical's website
at http://www.rocm.com/. To listen live to the conference call via
telephone, call: Domestic: 888.680.0890 International: 617.213.4857
Pass code: 42439180 Pre Registration:
https://www.theconferencingservice.com/prereg/key.process?key=PQHYHBLEU
Replay will be available for seven days at http://www.rocm.com/ or
via Telephone at: Domestic: 888-286-8010 International:
617-801-6888 Pass code: 11347827 Individual investors can listen to
the call at http://www.fulldisclosure.com/, Thomson/CCBN's
individual investor portal, powered by StreetEvents. Institutional
investors can access the call via Thomson's password-protected
event management site, StreetEvents (http://www.streetevents.com/).
Rochester Medical Corporation develops, manufactures, and markets
disposable medical catheters and devices for urological and
continence care applications. The Company markets under its own
Rochester Medical® brand and under existing private label
arrangements. For further information, please contact Anthony J.
Conway, President and Chief Executive Officer or David A. Jonas,
Chief Financial Officer of Rochester Medical Corporation at (507)
533-9600. More information about Rochester Medical is available on
its website at http://www.rocm.com/. ROCHESTER MEDICAL CORPORATION
Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income
For the Three months ended December 31, 2009 (unaudited) Three
months ended December 31, ------------ 2009 2008 ---- ---- GAAP Net
Income (Loss) as Reported $(169,000) $54,000 ========= =======
Diluted EPS as Reported $(0.01) $0.00 ====== ===== Adjustments for
recurring non-cash expenses: Intangible Amortization (1) 129,000
129,000 ASC 718 Compensation Expense (2) 188,000 175,000 -------
------- Subtotal 317,000 304,000 Non-GAAP Net Income $148,000
$358,000 ======== ======== Non-GAAP Diluted EPS $0.01 $0.03 =====
===== Weighted Average Shares - Diluted 12,669,675 12,697,645 (1)
Amortization of the intangibles acquired in June 2006 asset
acquisition from Coloplast AS and Mentor Corporation. Management
believes these assets are appreciating. This adjustment adds back
amortization expense for the three months ended December 31, 2009
and 2008 related to certain intangibles. The gross amount of
amortization is $163,000 per quarter after taxes of $34,000 for a
net amount of $129,000. (2) Compensation expense mandated by ASC
718. This adjustment adds back the compensation expense recorded
when stock options are granted to employees and directors for the
three months ended December 31, 2009 and 2008. The gross amount of
compensation expense for the three months ended December 31, 2009
and 2008 is $285,000 net of taxes of $97,000 and $90,000 for net
amounts of $188,000 and $175,000 respectively. Condensed Balance
Sheets (unaudited) December 31, September 30, 2009 2009 ---- ----
Assets Current Assets Cash and equivalents $5,816,151 $6,365,584
Marketable securities 30,455,507 29,896,740 Accounts receivable
6,517,646 6,418,656 Inventories 9,253,262 9,710,234 Prepaid
expenses and other assets 1,472,710 1,076,183 Deferred income tax
asset 1,140,375 1,153,964 --------- --------- Total current assets
54,655,651 54,621,361 Property and equipment, net 9,783,381
9,683,808 Deferred income tax asset 839,936 768,874 Patents, net
227,092 224,815 Intangible assets, net 5,874,847 6,017,944 Goodwill
4,691,458 4,648,165 --------- --------- Total Assets $76,072,365
$75,964,967 =========== =========== Liabilities and Stockholders'
Equity Current liabilities: Accounts payable $1,699,206 $1,755,472
Accrued expenses 1,101,571 1,527,352 Short-term debt 3,066,201
2,786,622 --------- --------- Total current liabilities 5,866,978
6,069,446 Long-term liabilities Other long term liabilities 62,424
55,889 Long-term debt 1,040,156 1,019,735 --------- --------- Total
long term liabilities 1,102,580 1,075,624 Stockholders' equity
69,102,807 68,819,897 ---------- ---------- Total Liabilities and
Stockholder Equity $76,072,365 $75,964,967 =========== ===========
Summary Statements Of Operations (unaudited) Three months ended
December 31, ------------ 2009 2008 ---- ---- Sales $10,231,812
$8,436,084 Cost of sales 5,618,704 4,511,171 --------- ---------
Gross profit 4,613,108 3,924,913 Gross profit % 45.1% 46.5% Costs
and expense: Marketing and selling 2,777,317 2,566,262 Research and
development 443,028 317,660 General and administrative 1,690,747
1,365,757 --------- --------- Total operating expenses 4,911,092
4,249,679 --------- --------- Loss from operations (297,984)
(324,766) Other income (expense) Interest income 29,009 167,272
Interest expense (41,118) (83,774) Other income - 200,442 ---
------- Net loss before income taxes (310,093) (40,826) Income tax
benefit (140,935) (94,451) -------- ------- Net income (loss)
$(169,158) $53,625 ========= ======= Earnings (loss) per common
share -Basic $(0.01) $0.00 ====== ===== Earnings (loss) per common
share -Diluted $(0.01) $0.00 ====== ===== Weighted Average Shares:
Basic 12,191,590 11,980,875 ========== ========== Weighted Average
Shares: Diluted 12,191,590 12,697,645 ========== ==========
DATASOURCE: Rochester Medical Corporation CONTACT: Anthony J.
Conway, President and Chief Executive Officer, or David A. Jonas,
Chief Financial Officer, both of Rochester Medical Corporation,
+1-507-533-9600 Web Site: http://www.rocm.com/
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