Navigation Links
Rochester Medical Reports Record Fourth Quarter Sales and Record Annual Sales

STEWARTVILLE, Minn., Nov. 6 /PRNewswire-FirstCall/ -- Rochester Medical Corporation (Nasdaq: ROCM) today announced operating results for its fourth quarter and year ended September 30, 2008.

The Company reported record sales of $9,512,000 for the current quarter compared to $8,437,000 for the fourth quarter of last year. The Company also reported quarterly net income of $342,000 or $.03 per diluted share compared to $733,000 or $.06 per diluted share for the fourth quarter of last year. The approximate 13% increase in sales (16% on a constant currency basis) resulted from an 18% increase in Rochester Medical Branded Sales (23% on a constant currency basis), and a 4% increase in Private Label Sales (4% 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.

Net income adjusted for certain non-recurring unusual items and certain recurring non-cash expenses, or "Non-GAAP Net Income" for the current quarter is $789,000 or $.06 per diluted share compared to Non-GAAP Net Income of $1,211,000 or $.10 per diluted share for the fourth quarter of last year. The decrease for the current quarter is primarily attributable to increased strategic investment in Sales and Marketing Programs.

For the fiscal year ended September 30, 2008, the Company reported record sales of $35,192,000 compared to sales of $32,663,000 for the previous year. It reported net income for the year of $759,000 or $.06 per diluted share compared to a net income of $34,050,000 or $2.77 per diluted share for the previous year. The approximate 8% annual increase in sales (8% on a constant currency basis) resulted from a 24% annual increase in Rochester Medical Branded sales (24% increase on a constant currency basis) offset by a 16% decrease in Private Label Sales (16% decrease on a constant currency basis).

Non-GAAP Net Income for the current year is $2,776,000 or $.22 per diluted share compared to Non-GAAP net income of $4,966,000 or $.40 per diluted share for the previous year. The decrease for the current year is primarily attributable to the increased strategic investment in Sales and Marketing Programs.

Due to significant swings in the currency exchange rates, the Company is now also showing sales levels on a constant currency basis. In the fourth quarter the dollar strengthened significantly versus the pound sterling, thus affecting Branded sales growth levels in actual dollars.

Commenting on today's announcement, Rochester Medical's CEO and President Anthony J. Conway said, "We had an excellent quarter and excellent year, and we look forward to building on that success in the United States, the United Kingdom, and other global markets. Our planned investments in Sales and Marketing are showing strong results. We are very pleased with the increasing interest in our Infection Control Catheters and with the solid growth in our Intermittent Catheter Sales. As we have previously stated, we look forward to exciting new product introductions this year which will further boost our reputation as a leader in the industry and also help boost our sales. We expect 2009 to be a good year for Rochester Medical."

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. Non-GAAP Net Income is not a measure 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 is not comparable to information provided by other companies. Non-GAAP Net Income has limitations as an analytical tool 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 are presented at the end of this press release.

This press release contains forward-looking statements that involve risks and uncertainties, including the uncertainty of estimated revenues and profits, as well as 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, 2007.

The Company will hold a quarterly conference call this afternoon to discuss its earnings report. The call will begin at 4:00 p.m. Central Daylight Time (5:00 p.m. eastern time).This call is being webcast by Thomson/CCBN and can be accessed at Rochester Medical's website at To listen live to the conference call via telephone, call:

Domestic: 888.713.4214, password 27129424

International: 617.213.4866, password 27129424

Pre Registration:

Replay will be available for seven days at or via telephone at:

Domestic: 888-286-8010, password 85160784

International: 617-801-6888, password 85160784

The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (

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(R) brand and under existing private label arrangements.

For further information, please contact Anthony J. Conway, President and Chief Executive Officer of Rochester Medical Corporation at (507) 533-9600. More information about Rochester Medical is available on its website at


Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income

For the Three and Twelve months ended

September 30, 2008

(unaudited) (unaudited)

Three months ended Twelve months ended

September 30, September 30,

2008 2007 2008 2007

GAAP Net Income as

Reported $342,000 $733,000 $759,000 $34,050,000

Diluted EPS as Reported $0.03 $0.06 $0.06 $2.77

Adjustments for non-

recurring unusual items:

Settlement income

after taxes (1) - - - (31,305,000)

Deferred revenue (2) - - - (564,000)

Subtotal - - - (31,869,000)

Adjustments for recurring

non-cash expenses:


Amortization (3) 164,000 167,000 653,000 668,000

FAS 123R Compensation

Expense (4) 283,000 311,000 1,364,000 2,117,000

Subtotal 447,000 478,000 2,017,000 2,785,000

Non-GAAP Net Income $789,000 $1,211,000 $2,776,000 $4,966,000

Non-GAAP Diluted EPS $0.06 $0.10 $0.22 $0.40

Weighted Average Shares -

Diluted 12,587,427 12,582,793 12,577,337 12,272,172

(1) Settlement income received November 20, 2006 from Premier, Inc. of

$5,155,000 and December 14, 2006 from CR Bard, Inc. of $33,450,000

after taxes of $7,300,000. This adjustment reduces net income for

amounts received net of taxes paid in connection with one-time

settlement of certain litigation. These amounts were recorded in

Other Income in the Statement of Operations for the fiscal year ended

September 30, 2007.

(2) Deferred revenue from a $1,000,000 fee paid by Coloplast A/S in June

2002 for marketing rights to our antibacterial Release NF foley

catheter. These rights with Coloplast A/S were cancelled by mutual

agreement in March 2007, thus accelerating the recognition of the

remaining amount as all conditions for revenue recognition have now

been met. Also includes a $200,000 fee paid by Hollister for

marketing rights to our hydorphilic intermittent catheter in September

2003. The fee paid by Hollister was fully recognized in December

2006. This adjustment reduces net income related to the realization

of certain one-time revenue from marketing rights. The amounts were

recorded in net sales in the Statement of Operations.

(3) 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 and twelve months ended September

30, 2008 and 2007 related to certain intangibles.

(4) Compensation expense mandated by SFAS 123R. This adjustment adds back

the compensation expense recorded when stock options are granted to

employees and directors for the three and twelve months ended

September 30, 2008 and 2007.

Condensed Balance Sheets


September 30, September 30,

2008 2007


Current Assets

Cash and equivalents $8,508,000 $6,671,356

Marketable securities 28,493,648 30,465,244

Accounts receivable 6,009,023 5,527,518

Inventories 8,745,873 7,698,889

Prepaid expenses and other

assets 1,110,291 6,480

Deferred income tax asset 1,143,931 876,032

Total current assets 54,010,766 51,245,519

Property and equipment, net 9,883,329 9,679,035

Deferred income tax asset 831,299 571,721

Patents, net 227,358 257,353

Intangible assets, net 6,860,213 7,821,562

Goodwill 5,169,661 5,920,255

Total Assets $76,982,626 $75,495,445

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $2,127,470 $1,091,874

Accrued expenses 1,152,118 1,978,937

Short-term debt 1,958,828 1,849,463

Total current

liabilities 5,238,416 4,920,274

Long-term liabilities

Other long-term liabilities 239,496 -

Long-term debt 3,806,185 6,066,246

Total long term

liabilities 4,045,681 6,066,246

Stockholders' equity 67,698,529 64,508,925

Total Liabilities and

Stockholder Equity $76,982,626 $75,495,445

Summary Statements Of Operations

(unaudited) (unaudited)

Three months ended Twelve months ended

Sept 30, Sept 30,

2008 2007 2008 2007

Sales $9,512,191 $8,437,378 $35,191,949 $32,663,087

Cost of sales 4,889,789 4,044,975 18,483,985 15,619,178

Gross profit 4,622,402 4,392,403 16,707,964 17,043,909

Gross profit % 49% 52% 47% 52%

Costs and expense:

Marketing and selling 2,544,014 1,926,222 9,498,596 6,490,497

Research and

development 308,913 232,725 1,044,205 943,225

General and

administrative 1,447,707 1,540,034 6,658,002 6,742,665

Total operating

expenses 4,300,634 3,698,981 17,200,803 14,176,387

Income (loss) from

operations 321,768 693,422 (492,839) 2,867,522

Other income (expense)

Interest income 197,997 380,656 1,239,689 1,288,603

Interest expense (82,674) (110,848) (477,560) (513,296)

Other income

(expense) (88,642) 250,000 (88,642) 38,855,000

Net income (loss)

before income taxes $348,449 $1,213,230 $180,648 $42,497,829

Income tax

expense(benefit) 6,291 479,747 (578,455) 8,447,649

Net income 342,158 733,483 759,103 34,050,180

Earnings per common

share - Basic $0.03 $0.06 $0.06 $2.97

Earnings per common

share - Diluted $0.03 $0.06 $0.06 $2.77

Weighted Average


Basic 11,878,956 11,680,364 11,815,904 11,449,646

Weighted Average


Diluted 12,587,427 12,582,793 12,577,337 12,272,172

SOURCE Rochester Medical Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. U.S. Reps. Oberstar and Walz Discuss DM&E Railroad Expansion With Rochester, Minn. Leaders
2. Rochester Medical Reports Record Fourth Quarter Sales and Record Year
3. Rochester Medical Announces First Quarter 2008 Earnings Conference Call February 4, 2008
4. Mayo Clinic Seeks Mitigation for Rochester as Condition of Canadian Pacific - DM&E Railroad Merger
5. Rochester Medical Applauds Improved U.S. Medicare Coverage Policy for Intermittent Catheters
6. Rochester Medical Marketing VP Retires
7. Rochester Coalition and Mayo Clinic Challenge Railroads Contention That Hazmat Rail Shipments Pose no Risk
8. Rochester Medical Honored by Premier Healthcare Alliance for Exceeding Performance Expectations
9. Autovan Donates Wheelchair-Accessible Van; Brings Greater Mobility to Facility in Rochester, New York
10. Rochester Medical Implants Achieves ISO 13485:2003 Certification for Medical Device Manufacturing
11. Safety Threat to Rochester Still Remains Despite Approval Of Canadian Pacifics Railroad Acquisition Of DM&E
Post Your Comments:
(Date:10/13/2017)... ... ... As health professionals work to improve their approach to healthcare, there is a ... filling out a survey; in many cases health professionals and patients are working together ... research on the importance of active engagement with patients and members of the public ...
(Date:10/13/2017)... Vegas, Nevada (PRWEB) , ... October 13, 2017 , ... ... 7® Hemp CBD Oil utilizing Purzorb™ technology. Applying the Purzorb™process to full spectrum CBD ... dose required and providing a CBD form that can be easily incorporated into liquid ...
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... Many families ... However, many long-term care insurance companies have a waiver for care if the client ... elimination period, when the family pays for care, is often waived, so the benefits ...
(Date:10/13/2017)... ... ... Yisrayl Hawkins, Pastor and Overseer at The House of Yahweh, has released ... understood books in the Holy Scriptures, Revelation. The Book of Revelation paints a picture ... Many have tossed it off as mere rubbish, but Yisrayl Hawkins says that is ...
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... “America On ... Christian identity. “America On The Brink” is the creation of published author, William ... several great-grandchildren. As a WWII veteran, he spent thirty years in the Navy. ...
Breaking Medicine News(10 mins):
(Date:9/18/2017)... , Sept. 18, 2017  PMD Healthcare of ... Pharmacy of Kalamazoo, Mich. , have ... service that expedites and streamlines patient and provider access ... 2.0, and wellness management services.  ... used to measure lung function for a variety of ...
(Date:9/13/2017)... 13, 2017   OrthoAtlanta has been named the ... Host Committee (AFHC) for the 2018 College Football Playoff (CFP) ... at Mercedes-Benz Stadium in Atlanta, Georgia . ... "I,m In" campaign, participating in many activities leading up to, ... ...
(Date:9/12/2017)... , Sept. 12, 2017  Consumer reviews on the independent review ... as the number one company for hearing aids, ranking it higher ... other brands. ... Named #1 by Consumers For Hearing Aids ... Embrace Hearing is an online store that provides high performance, state-of-the-art, ...
Breaking Medicine Technology: