ROCM Rochester Medical Corp. (MM)

STEWARTVILLE, Minn., Jan. 23 /PRNewswire-FirstCall/ -- Rochester Medical Corporation (NASDAQ:ROCM) today announced operating results for its first quarter ending December 31, 2006. The Company reported record sales of $7,512,000 for the current quarter compared to $4,607,000 for the first quarter of last year. It also reported net income of $31,467,000 or $2.59 per diluted share compared to a net income of $311,000 or $.03 per diluted share for the first quarter of last year. To aid in further comparison between the quarters, the Company notes that: -- The current quarter results include $38,605,000 of income resulting from the previously announced lawsuit settlements. -- The current quarter results include $7,344,000 of income tax expense. -- The results for the current quarter include $1,267,000 of non-cash expenses comprised of $1,104,000 related to non-cash stock option expenses under FAS123R and $163,000 for amortization of intangibles related to the 2006 asset acquisitions. Last year's first quarter results included $84,000 of non-cash expenses which were stock option expenses under FAS123R. Income from operations for the first quarter of 2007 adjusted on a non- GAAP basis to exclude these non-cash expenses was $1,557,000 compared to $341,000 for the first quarter of last year with the same adjustments. The 63% increase in sales revenues for the current quarter compared to last year's first quarter resulted from increased Rochester Medical(R) Brand sales, primarily attributable to increased international sales of Rochester Medical Brand products resulting from the previously announced acquisition in the United Kingdom, and also from increased Private Label sales. The Company noted that it utilized its entire Net Operating Loss carryforward this quarter which explains the low tax expense relative to the income. "This has certainly been an eventful quarter," said Company CEO and President Anthony J. Conway. "We were awarded a National Group Purchasing Contract by Premier Purchasing Partners, L.P.; we renewed our Private Label sales agreement with Hollister, Inc.; we secured two lawsuit settlements in our anti-trust litigation; and we realized strong sales and earnings. We are pleased with the Company's progress, and we look forward to a good year." 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 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 http://www.rocm.com/ . To listen live to the conference call via telephone, call: Domestic: 1-800-561-2813, password 41026628 International: 617-614-3529, password 41026628 Replay will be available for seven days at: http://www.rocm.com/ or via telephone: Domestic Replay: 1-888-286-8010, password 92111833 International Replay: 617-801-6888, password 92111833 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 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/ ). 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, the uncertainty of timing of private label sales revenues (particularly international customers), FDA and other regulatory review and response times, the uncertainty of successfully integrating and growing the Company's new UK operations, 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, 2006. 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/ . Condensed Balance Sheets (unaudited) December 31, September 30, 2006 2006 Assets Current Assets Cash and equivalents $42,220,924 $2,906,698 Marketable securities - - Accounts receivable 4,378,917 4,494,094 Inventories 5,466,581 4,642,578 Prepaid expenses and other assets 517,975 410,267 Deferred income tax asset 542,000 53,000 Total current assets 53,126,397 12,506,637 Property and equipment 8,386,469 8,239,246 Deferred income tax asset 440,000 1,177,999 Patents, net 280,933 271,172 Intangible assets, net 8,106,776 8,270,157 Goodwill 5,422,490 5,487,141 Total Assets $75,763,065 $35,952,352 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,444,379 $1,278,441 Accrued expenses 1,467,686 1,621,376 Short term debt 1,681,361 1,681,361 Current maturities of capital leases 42,679 42,084 Income taxes payable 6,777,350 105,559 Deferred revenue 100,000 114,287 Total current liabilities 11,513,455 4,843,108 Long-term liabilities Long term debt 7,327,214 7,540,737 Capital leases, less current portion 11,050 21,946 Deferred revenue 425,000 449,999 Total long term liabilities 7,763,264 8,012,682 Stockholders' equity 56,486,346 23,096,562 Total Liabilities and Stockholder Equity $75,763,065 $35,952,352 Summary Statements Of Operations (unaudited) Three months ended December 31, 2006 2005 Sales $7,511,966 $4,607,200 Cost of sales 3,736,344 3,005,470 Gross profit 3,775,622 1,601,730 Gross profit % 50% 35% Costs and expense: Marketing and selling 1,233,662 598,993 Research and development 202,770 173,623 General and administrative 2,049,146 572,255 Total operating expenses 3,485,578 1,344,871 Income from operations 290,044 256,859 Other income (expense) Interest income 74,850 57,125 Interest expense (159,647) (2,606) Other income 38,605,000 - Net income before income taxes 38,810,247 311,378 Income tax expense 7,343,640 - Net income $31,466,607 $311,378 Earnings per common share - Basic $2.83 $0.03 Earnings per common share - Diluted $2.59 $0.03 Weighted Average Shares: Basic 11,102,034 11,052,376 Weighted Average Shares: Diluted 12,158,281 11,504,740 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/

Copyright