Navigation Links
Rochester Medical Reports Third Quarter Results
Date:7/30/2009

STEWARTVILLE, Minn., July 30 /PRNewswire-FirstCall/ -- Rochester Medical Corporation (Nasdaq: ROCM) today announced operating results for its third quarter ended June 30, 2009.

The Company reported sales of $8,908,000 for the current quarter compared to $8,241,000 for the third quarter of last year. The Company also reported net loss of $77,000 or ($.01) per diluted share for the quarter compared to net income of $312,000 or $.02 per diluted share for the same period of last year.

The approximate 8% increase in sales (18% on a constant currency basis) resulted from a 42% increase in Private Label Sales (42% increase on a constant currency basis), partially offset by a 4% decrease in Rochester Medical Branded Sales (8% increase 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 third quarter of 2009 the U.S. dollar was significantly stronger versus the pound sterling, thus negatively affecting Rochester Medical Branded Sales growth levels in actual U.S. dollars given the significant volume of our branded product 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 $245,000 or $.02 per diluted share compared to Non-GAAP Net Income of $636,000 or $.05 per diluted share for the third quarter of last year. The decrease for the current quarter on a Non-GAAP basis is primarily attributable to a tax benefit of $654,000 taken in the third quarter of last year.

Regarding today's announcement, Rochester Medical's CEO and President Anthony J. Conway said, "Once again, excluding exchange rate influences, the Company had a very solid quarter. The overall 18% sales growth is very good, and we are also pleased that U.S. & European Rochester Medical Branded Sales are up 15% overall on a constant currency basis. Branded sales in the rest of the world were down 16%, and we believe that is simply a reflection of order timing from certain International distributors. I would also note that the 42% increase in Private Label Sales reflects a significant upward quarterly percentage aberration due to the timing of orders from large Private Label customers."

Conway added, "I am very pleased with our progress in certain important areas. We have made significant strides in U.S. Acute Care, with several major opinion leading institutions now making product purchases, and with increasing interest and commitment from other major institutions. We have just begun the introduction of our new StrataSI( )Foley Catheter technology, and the initial reception is very positive. We are now initiating ReleaseNF((R) )catheter evaluations in the United Kingdom, and we are exploring potential partnerships for introduction of the ReleaseNF Anti-Infection Foley Technology into mainland Europe. Also, I'm pleased to report that our new MAGIC3( )Intermittent Catheter Technology is doing very well in the U.S. and in the United Kingdom, and is now being introduced in mainland Europe."

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, 2008 and subsequent 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 www.rocm.com. To listen live to the conference call via telephone, call:

Domestic: 888.679.8018, password 99367806

International: 617.213.4845, password 99367806

Pre Registration:

https://www.theconferencingservice.com/prereg/key.process?key=PGY64RKT9

Replay will be available for seven days at www.rocm.com or via telephone at:

Domestic: 888-286-8010, password 41138193

International: 617-801-6888, password 41138193

Individual investors can listen to the call at 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 (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((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 http://www.rocm.com.

    ROCHESTER MEDICAL CORPORATION
    Reconciliation of Reported GAAP Revenue to Non-GAAP Revenue in Constant
     Currency
    For the Three and Nine months ended
    June 30, 2009

                                      (unaudited)             (unaudited)
                                  Three months ended        Nine months ended
                                       June 30,                 June 30,
                                       --------                 --------
                                    2009       2008         2009        2008
                                    ----       ----         ----        ----

    GAAP Sales as Reported     $8,908,416 $8,241,232  $25,789,530 $25,679,758
                               ========== ==========  =========== ===========
       Exchange rate as
        Reported                     1.55       1.98         1.52        2.00
                                     ====       ====         ====        ====


    Constant Currency Sales    $8,908,416 $7,550,514  $25,789,530 $23,377,618
                               ========== ==========  =========== ===========
       (1) Exchange rate used
       for Constant Currency
       Purposes                      1.55       1.55         1.52        1.52
                                     ====       ====         ====        ====


    Net Effect of Constant
     Currency Illustration             $-  $(690,718)          $- $(2,302,140)
                                      ===  =========          === ===========

    (1) For illustrative purposes Constant currency translates prior period
    foreign sales at current exchange rates. For Rochester Medical Corporation
    this is the conversion rate of pound sterling to US dollars.  The rate
    represents the average exchange rate for the respective three or nine
    month period.



    ROCHESTER MEDICAL CORPORATION
    Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income
    For the Three and Nine months ended
    June 30, 2009 and 2008

                                      (unaudited)            (unaudited)
                                  Three months ended      Nine months ended
                                        June 30,               June 30,
                                        --------               --------
                                    2009        2008       2009        2008
                                    ----        ----       ----        ----

    GAAP Net Income (loss) as
     Reported                    $(77,000)   $312,000   $338,000    $417,000
                                 ========    ========   ========    ========

    Diluted Earnings (loss)
     Per Share as Reported         $(0.01)      $0.02      $0.03       $0.03
                                   ======       =====      =====       =====


    Adjustments for non-recurring
     unusual items:
       Settlement income after
        taxes (1)                       -           -   (637,000)          -
                                      ---         ---   --------         ---
    Subtotal                            -           -   (637,000)          -


    Adjustments for recurring
     non-cash expenses:
       Intangible
        amortization (2)          129,000     129,000    386,000     386,000
       FAS 123R compensation
        expense (3)               193,000     195,000    683,000     713,000
                                  -------     -------    -------     -------
    Subtotal                      322,000     324,000  1,069,000   1,099,000
                                  -------     -------  ---------   ---------


    Non-GAAP Net Income          $245,000    $636,000   $770,000  $1,516,000
                                 ========    ========   ========  ==========

    Non-GAAP Diluted EPS            $0.02       $0.05      $0.06       $0.12
                                    =====       =====      =====       =====

    Weighted Average Shares -
     Diluted                   12,603,331  12,550,317 12,637,414  12,561,535


    (1) Settlement income received January 15, 2009 from Covidien Ltd. of
    $1,000,000, $637,000 after taxes of $363,000.  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, 2009.

    (2) 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 nine months ended June 30, 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.

    (3) Compensation expense mandated by SFAS 123R.  This adjustment adds
    back the compensation expense recorded for stock options granted to
    employees and directors that vested during the three and nine months
    ended June 30, 2009 and 2008.  The gross amount of compensation expense
    for the three months ended June 30, 2009 and 2008 is $293,000 and
    $295,000 net of taxes of $100,000 and $100,000 for net amounts of
    $193,000 and $195,000 respectively.  The gross amount of compensation
    expense for the nine months ended June 30, 2009 and 2008 is $1,035,000
    and $1,081,000 net of taxes of $352,000 and $368,000 for net amounts of
    $683,000 and $713,000 respectively.



    Rochester Medical Corporation
    Press Release - F09 Third Quarter


                       Condensed Balance Sheets

                                                   (unaudited)
                                                     June 30,  September 30,
                                                       2009          2008
                                                       ----          ----
                        Assets

      Current Assets
        Cash and equivalents                        $5,342,272    $8,508,000
        Marketable securities                       29,660,699    28,493,648
        Accounts receivable                          6,000,332     6,009,023
        Inventories                                  9,696,882     8,745,873
        Prepaid expenses and other assets              892,629     1,110,291
        Deferred income tax                          1,561,510     1,143,931
                                                     ---------     ---------

            Total current assets                    53,154,324    54,010,766

      Property and equipment, net                    9,741,072     9,883,329
      Deferred income tax                              955,769       831,299
      Patents, net                                     211,884       227,358
      Intangible assets, net                         6,226,817     6,860,213
      Goodwill                                       4,779,846     5,169,661
                                                     ---------     ---------

      Total Assets                                 $75,069,712   $76,982,626
                                                   ===========   ===========

            Liabilities and Stockholders' Equity

      Current liabilities:
        Accounts payable                            $1,605,780    $2,127,470
        Accrued expenses                             1,335,452     1,170,654
        Short-term debt                              2,925,566     1,940,292
                                                     ---------     ---------

            Total current liabilities                5,866,798     5,238,416

      Long-term liabilities
        Other long term liabilities                    288,435       239,496
        Long-term debt                               1,002,344     3,806,185
                                                     ---------     ---------

            Total long term liabilities              1,290,779     4,045,681

      Stockholders' equity                          67,912,135    67,698,529
                                                    ----------    ----------

      Total Liabilities and Stockholders' Equity   $75,069,712   $76,982,626
                                                   ===========   ===========



    Rochester Medical Corporation
    Press Release - F09 Third Quarter

                         Summary Statements Of Operations

                                  (unaudited)              (unaudited)
                              Three months ended        Nine months ended
                                    June 30,                 June 30,
                                    --------                 --------
                                2009        2008         2009         2008
                                ----        ----         ----         ----

    Sales                   $8,908,416  $8,241,232  $25,789,530  $25,679,758

    Cost of sales            4,724,893   4,568,736   13,266,735   13,594,196
                             ---------   ---------   ----------   ----------

    Gross profit             4,183,523   3,672,496   12,522,795   12,085,562
      Gross profit %                47%         45%          49%          47%

    Costs and expense:
      Marketing and selling  2,541,552   2,349,911    7,555,936    6,954,582
      Research and
       development             352,248     202,092      969,011      735,292
      General and
       administrative        1,451,041   1,578,410    4,574,296    5,210,295
                             ---------   ---------    ---------    ---------

    Total operating
     expenses                4,344,841   4,130,413   13,099,243   12,900,169
                             ---------   ---------   ----------   ----------

    Loss from operations      (161,318)   (457,917)    (576,448)    (814,607)

    Other income (expense)

      Interest income           39,964     232,705      241,490    1,041,692
      Interest expense         (54,586)   (116,563)    (218,714)    (394,887)
      Other income                   -           -    1,200,442            -
                                   ---         ---    ---------          ---

    Net income (loss)
     before income taxes      (175,940)   (341,775)     646,770     (167,802)

    Income tax expense
     (benefit)                 (99,040)   (654,023)     308,843     (584,746)
                               -------    --------      -------     --------

    Net income (loss)         $(76,900)   $312,248     $337,927     $416,944
                              ========    ========     ========     ========


    Earnings (loss) per
     common share - Basic       $(0.01)      $0.03        $0.03        $0.04
                                ======       =====        =====        =====

    Earnings (loss) per
     common share - Diluted     $(0.01)      $0.02        $0.03        $0.03
                                ======       =====        =====        =====

    Weighted Average Shares:
      Basic                 12,025,966  11,832,240   12,029,629   11,794,733
                            ==========  ==========   ==========   ==========

    Weighted Average Shares:
      Diluted               12,025,966  12,550,317   12,637,414   12,561,535
                            ==========  ==========   ==========   ==========


'/>"/>
SOURCE Rochester Medical Corporation
Copyright©2009 PR Newswire.
All rights reserved


Related medicine news :

1. Rochester Medical Announces Third Quarter 2009 Earnings Conference Call July 30, 2009
2. Purple Communications Dream Bigger Initiative Honors Rochester Physician and Deaf Community Trailblazer
3. Rochester Medical Corporation Set to Join Russell 3000 Index
4. Rochester Medical Reports Second Quarter Results
5. Rochester Medical Announces Second Quarter 2009 Earnings Conference Call April 30, 2009
6. Rochester Medical Renews Share Repurchase Activity
7. University of Rochester Launches iTraining for Emergency Responders
8. Rochester Medical Reports First Quarter Results
9. Rochester study raises new questions about controversial plastics chemical
10. Rochester Medical Announces First Quarter 2009 Earnings Conference Call February 2, 2009
11. Rochester Medical Announces Settlement With TYCO Healthcare Group, L.P., Now Operating as Covidien Ltd.
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... ... June 27, 2016 , ... ... today announced its strategic partnership with Connance, a healthcare industry leader providing ... companies’ proven, proprietary technology combine to provide health systems, hospitals and ambulatory ...
(Date:6/26/2016)... Creek, Michigan (PRWEB) , ... June 26, 2016 , ... ... joined as sponsor of the 2016 Cereal Festival and World’s Longest Breakfast Table in ... in honor of the city’s history as home to some of the world’s leading ...
(Date:6/26/2016)... ... June 26, 2016 , ... ... they have been diagnosed with endometriosis. These women need a treatment plan to ... a comprehensive approach that can help for preservation of fertility and ultimately achieving ...
(Date:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture animations, ... Christina Austin - CEO of Pixel Film Studios. , ProHand Cartoon’s package transforms ... Final Cut Pro X . Simply select a ProHand generator and drag it above ...
(Date:6/25/2016)... ... , ... On Friday, June 10, Van Mitchell, Secretary of the Maryland Department ... in recognition of their exemplary accomplishments in worksite health promotion. , The Wellness at ... Wellness Symposium at the BWI Marriott in Linthicum Heights. iHire was one of 42 ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... Story Highlights: ... the health care industry is causing providers to review ... Deloitte offers a suite of solutions for health care ... cost optimization: labor resource analysis, revenue cycle optimization and ... outcomes and better economics ...
(Date:6/24/2016)... 2016 Dublin ... addition of the " Global Markets for Spectroscopy ... This report focuses on the ... review, including its applications in various applications. The report ... includes three main industries: pharmaceutical and biotechnology, food and ...
(Date:6/24/2016)... June 24, 2016 Research and Markets ... for Companion Diagnostic Tests" report to their offering. ... Companion Diagnostics The World Market for Companion ... medicine diagnostics. Market analysis in the report includes the following: ... (In Vitro Diagnostic Kits) by Region (N. America, EU, ROW), ...
Breaking Medicine Technology: