STEWARTVILLE, Minn., Oct. 25 /PRNewswire-FirstCall/ -- Rochester
Medical Corporation (NASDAQ:ROCM) today announced operating results
for its fourth quarter and fiscal year ending September 30, 2005.
The Company reported sales of $4,314,000 for the current quarter
compared to $3,595,000 for the fourth quarter of last year. It
reported net income for the current quarter of $611,000 or $.11 per
diluted share compared to a net income of $157,000 or $.03 per
diluted share for the fourth quarter of last year. The 20% increase
in sales resulted from increased sales of both Rochester Medical
Brand products and products sold under private label. The increase
in earnings resulted from the recognition of a portion of the
Company's deferred tax assets. For the fiscal year ended September
30, 2005 net sales were $15,942,000 with net income of $934,000 or
$.16 per diluted share compared to net sales of $15,011,000 with
net income of $.13 per diluted share for the previous fiscal year.
The approximate 6% overall sales increase reflected a 12% growth in
Rochester Medical Brand sales and a 2% increase in private label
sales. The 25% increase in earnings was due to the recognition of
$454,000 of a deferred tax asset offset primarily by higher costs
and expenses. Regarding the quarter and the year Rochester Medical
CEO and President Anthony J. Conway said, "Our sales strengthened
nicely in the fourth quarter. We continue to be very pleased with
the market acceptance of the recently introduced Closed System
configurations of our Hydrophilic and Antibacterial Hydrophilic
Intermittent Catheters. Early stage manufacturing inefficiencies on
these new products have temporarily impacted margins, and we expect
margins will continue to improve as we continue refining our
manufacturing processes. Some costs and expenses were up
significantly for the year. Annual medical costs for our employees
were unexpectedly high. They were up $266,000 over last year due to
several unexpected high claims. Legal costs were higher than the
previous year and, as planned, we invested more in sales and
marketing to support introduction of our new products. "Going
forward into fiscal 2006 I expect solid growth over fiscal 2005.
Our Hydrophilic Intermittent offerings should continue to do well.
This year we expect a ruling in the U.K. on the European packaging
patent issue between Coloplast and Hollister, our Private Label
customer for Hydrophilic Intermittent Catheters. The matter is
scheduled for trial in November of this year. Regardless of the
outcome of that litigation, Rochester Medical will introduce new,
more advanced hydrophilic catheter technology worldwide in 2006 in
a packaging configuration that avoids the claims in the Coloplast
patent. "Our improved silicone Foley catheter offering will be
introduced in the U.S. early in calendar 2006 with European
introduction following in mid-year. Refinements to our proprietary
balloon technology address the issue of balloon cuffing that has
previously limited silicone catheters' replacement of latex Foleys.
"We recently announced the signing of a group purchasing contract
with Managed Healthcare Associates (MHA) which I believe will help
spur additional growth in the Alternate Care arena as we move
further into the fiscal year. With respect to the Acute Care
market, we continue to work diligently on the lawsuit we filed
against C.R. Bard, TYCO, Premier, and Novation. The case is
scheduled to go to trial in September 2006. Also, we continue to
assess and discuss other strategic business possibilities which can
benefit the Company." Conway concluded, "I am looking forward to an
exciting and solid year." The immediately preceding statement
contains forward-looking statements that involve risks and
uncertainties, including the uncertainty of market acceptance of
new product introductions, the uncertainty of gaining new strategic
relationships, the uncertainty of timing of private label sales
revenues (particularly international customers), FDA and other
regulatory review and response times, as well as 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 (Part II, I tem 6) for
the year ended September 30, 2004. Rochester Medical Corporation
develops, manufactures, and markets latex- free 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/ . Condensed
Balance Sheets (unaudited) September 30, September 30, 2005 2004
Assets Current Assets Cash and equivalents $1,129,876 $620,441
Marketable securities 5,286,553 5,251,763 Accounts receivable
3,204,824 2,631,188 Inventories 3,936,243 3,945,313 Prepaid
expenses and other assets 351,027 273,229 Deferred income tax asset
21,000 - Total current assets 13,929,523 12,721,934 Property and
equipment 7,561,303 8,442,427 Deferred income tax asset 433,000 -
Patents, net 285,194 219,296 Total Assets $22,209,020 $21,383,657
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable $283,332 $778,766 Accrued expenses 744,260 595,145 Short
term debt 34,000 34,000 Current maturities of capital leases 39,785
37,611 Deferred revenue 157,143 157,143 Total current liabilities
1,258,520 1,602,665 Long-term liabilities Long term debt 34,000
68,000 Capital leases, less current portion 64,030 103,814 Deferred
revenue 564,286 721,429 Total long term liabilities 662,316 893,243
Stockholders' equity 20,288,184 18,887,749 Total Liabilities and
Stockholder Equity $22,209,020 $21,383,657 Summary Statements Of
Operations (unaudited) (unaudited) Three months ended Twelve months
ended September 30, September 30, 2005 2004 2005 2004 Sales
$4,313,742 $3,594,543 $15,941,649 $15,011,419 Cost of sales
2,917,301 2,342,807 10,330,113 9,615,427 Gross profit 1,396,441
1,251,736 5,611,536 5,395,992 Gross profit % 32% 35% 35% 36% Costs
and expense: Marketing and selling 644,617 535,243 2,397,816
2,175,665 Research and development 166,010 154,250 730,105 706,157
General and administrative 467,635 432,648 2,126,813 1,856,858
Total operating expenses 1,278,262 1,122,141 5,254,734 4,738,680
Income from operations 118,179 129,595 356,802 657,312 Other income
(expense) Interest income - Net 38,974 27,583 123,625 89,501 Net
income before income taxes 157,153 157,178 480,427 746,813 Income
tax benefit 454,000 - 454,000 - Net income $611,153 $157,178
$934,427 $746,813 Earnings per common share - Basic $0.11 $0.03
$0.17 $0.14 Earnings per common share - Diluted $0.11 $0.03 $0.16
$0.13 Weighted Average Shares: Basic 5,488,228 5,439,491 5,466,123
5,434,338 Weighted Average Shares: Diluted 5,698,173 5,660,087
5,714,615 5,686,594 DATASOURCE: Rochester Medical Corporation
CONTACT: Anthony J. Conway, President and Chief Executive Officer
of Rochester Medical Corporation, +1-507-533-9600 Web site:
http://www.rocm.com/
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