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 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 http://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 http://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 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 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 ========== ========== ========== ========== 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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