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Rochester Medical Reports Fiscal 2013 First Quarter Results

         Rochester Medical Reports Fiscal 2013 First Quarter Results

PR Newswire

STEWARTVILLE, Minn., Jan. 29, 2013

STEWARTVILLE,Minn., Jan. 29, 2013 /PRNewswire/ -- Rochester Medical
Corporation (NASDAQ: ROCM) today announced operating results for its first
quarter ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20121228/CG34999LOGO)

The Company reported record sales of $17,252,000 for the current quarter
compared to $13,973,000 for the first quarter of last year. The Company also
reported net income of $1,012,000 or $.08 per diluted share compared to net
loss of ($75,000) or ($.01) per diluted share for the same period last year.

The 23% increase resulted from a 24% increase in Rochester Medical Direct
Sales and a 19% increase in Private Label Sales. The growth percentages were
essentially the same on a constant currency basis which 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
was $1,425,000 or $.11 per diluted share compared to Non-GAAP Net Income of
$285,000 or $.02 per diluted share for the first quarter of last year. The
increase for the current quarter was primarily due to increased gross profits
as a result of higher sales revenues and a reduction in operating expenses
related to the sales and marketing of the Foley product line, somewhat offset
by higher first quarter administrative expenses related to year end
activities.

Commenting on the quarterly results, Rochester Medical's CEO and President
Anthony J. Conway said, "Our Direct Sales continue to grow nicely,
particularly in the United States and the United Kingdom. U.S. Direct Sales
were up 41% and U.K. Direct Sales were up 26%. Intermittent Catheter sales,
in particular, continue to grow at a very strong pace.

"Cash generated by operations continues to meet our expectations. This
quarter our cash and equivalents increased by $2.3 million. We anticipate the
Company's new manufacturing facility, which is now under construction, will be
fully funded from within."

Conway concluded, "We are pleased with the quarterly results and look forward
to an active and successful 2013."

Conference Call and Webcast

The Company will hold a quarterly conference call on Tuesday, January 29, 2013
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 Reuters 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 8037
International: 617 213 4849
Pass code: 93735191
Preregistration:
https://www.theconferencingservice.com/prereg/key.process?key=P949QXBTJ

Replay will be available for seven days at www.rocm.com or via telephone at:
Domestic: 888 286.8010
International:617 801.6888
Pass code: 26318672

Individual investors can listen to the call at www.fulldisclosure.com, Thomson
Reuters individual investor portal, powered by StreetEvents. Institutional
investors can access the call via Thomson's password-protected event
management site, StreetEvents (www.streetevents.com).

Forward-Looking Statements

This press release contains "forward-looking statements" with the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements about the future financial and
operating results of Rochester Medical. Such statements are based on
currently available information, operating plans and management's expectations
about future events and trends. Such statements inherently involve
significant 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, and our level of success in increasing Rochester Medical
Direct Sales revenue, 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, 2012, and
quarterly reports on Forms 10-Q. 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.

Use of Non-GAAP Financial Measures

Rochester Medical has provided Non-GAAP Net Income in addition to net income
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 GAAP 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.

About Rochester Medical Corporation

Rochester Medical Corporation develops, manufactures, and markets disposable
medical catheters and devices for urological and continence care
applications. The Company also sells certain ostomy and wound and scar care
products and other brands of urological products into the European
marketplace.

For further information, please contact Anthony J. Conway, President and Chief
Executive Officer or David A. Jonas, Chief Financial Officer of Rochester
Medical Corporation at (507) 533-9600 or Parice Halbert, CFA, at Westwicke
Partners (443) 213-0500. More information about Rochester Medical is
available on its website at http://www.rocm.com.



Rochester Medical Corporation
Press Release - F13 First Quarter
Condensed Consolidated Statements Of Operations
                                      (unaudited)
                                      Three months ended
                                      December 31,
                                      2012                 2011
Sales                                 $    17,252,008   $    13,972,607
Cost of sales                         8,778,760            6,861,468
Gross profit                          8,473,248            7,111,139
       Gross profit %                 49.1%                50.9%
Costs and expense:
       Marketing and selling          4,549,044            4,668,062
       Research and development       339,158              376,269
       General and administrative     2,207,542            2,087,537
Total operating expenses              7,095,744            7,131,868
Income (loss) from operations         1,377,504            (20,729)
Other income (expense)                10,263               (91,070)
Net income (loss) before income       1,387,767            (111,799)
taxes
Income tax expense (benefit)          375,622              (36,452)
Net income (loss)                     $     1,012,145  $      
                                                           (75,347)
Net income (loss) per common share -  $            $        
Basic                                 0.08                 (0.01)
Net income (loss) per common share -  $            $        
Diluted                               0.08                 (0.01)
Weighted Average Shares:
       Basic                          12,038,232           12,136,125
Weighted Average Shares:
       Diluted                        12,396,930           12,136,125



Rochester Medical Corporation
Press Release - F13 First Quarter
Condensed Consolidated Balance Sheets
                                          (unaudited)
                                          December 31,       September 30,
                                          2012               2012
Assets
 Current Assets
       Cash and equivalents               $   16,311,106   $   13,921,363
       Marketable securities              6,739,272          6,779,695
       Accounts receivable                9,458,473          11,008,429
       Inventories                        9,624,926          9,883,650
       Prepaid expenses and other         1,601,513          1,726,908
       assets
       Deferred income tax asset          1,304,214          1,287,177
              Total current assets        45,039,504         44,607,222
 Property and equipment, net              12,280,407         11,862,072
 Deferred income tax asset                1,086,322          1,030,994
 Intangible assets, net                   9,276,256          9,377,355
 Goodwill                                 9,210,602          9,053,091
 Total Assets                             $   76,893,091   $   75,930,734
Liabilities and Stockholders' Equity
 Current liabilities:
       Accounts payable                   $    2,716,170  $    3,070,329
       Accrued expenses                   2,558,117          3,427,397
              Total current liabilities   5,274,287          6,497,726
 Long-term liabilities                    1,164,819          1,137,212
 Stockholders' equity                     70,453,985         68,295,796
 Total Liabilities and Stockholder        $   76,893,091   $   75,930,734
 Equity



ROCHESTER MEDICAL CORPORATION
Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income
For the Three months ended
December 31, 2012 and 2011
                                          (unaudited)
                                          Three months ended
                                          December 31,
                                          2012              2011
GAAP Net Income (Loss) as Reported        $ 1,012,000      $   (75,000)
Net Income (Loss) Per Share - Diluted as  $      0.08 $      (0.01)
Reported
Adjustments for non-recurring unusual
items:
 Severance costs (1)                     111,000           -
Subtotal                                  111,000           -
Adjustments for recurring non-cash
expenses:
 Intangible amortization (2)            155,000           158,000
 ASC 718 compensation expense (3)       147,000           202,000
Subtotal                                  302,000           360,000
Non-GAAP Net Income                       $  1,425,000     $   285,000
Non-GAAP Diluted EPS                      $      0.11 $      0.02
Weighted Average Shares - Diluted         12,396,930        12,311,866



(1) Severance costs associated with our exiting of the Foley Catheter market.
The company
 announced they were exiting the Foley Catheter market on November 6,
2012. This adjustment adds
 back severance costs of certain employees for the three months ended
December 31, 2012. The gross
 amount of the severance costs for the three months ended December 31,
2012 is $152,000 net of taxes of
 $41,000 for a net amount of $111,000
(2) Amortization of the intangibles acquired in June 2006 asset acquisition
from Coloplast AS and Mentor
 Corporation and the intangibles acquired in the January 2011 acquisition
of Laprolan from Fornix N.V.
 Management believes these assets are appreciating. This adjustment
adds back amortization
 expense for the three months ended December 31, 2012 and 2011 related
to certain intangibles.
 The gross amount of amortization expense for the three months ended
December 31, 2012 and 2011 is
 $213,000 and $218,000 net of taxes of $58,000 and $60,000 for net
amounts of $155,000 and $158,000
 respectively.
(3) Compensation expense mandated by ASC 718. This adjustment adds back the
compensation expense
 recorded for stock options granted to employees and directors that
vested during the three months ended
 December 31, 2012 and 2011. The gross amount of compensation expense
for the three months ended
 December 31, 2012 and 2011 is $202,000 and $316,000 net of taxes of
$55,000 and $114,000 for net
 amounts of $147,000 and $202,000
respectively.



ROCHESTER MEDICAL CORPORATION
Reconciliation of Reported GAAP Revenue to Non-GAAP Revenue in Constant
Currency
For the Three months ended
December 31, 2012 and 2011
                                      (unaudited)
                                      Three months ended
                                      December 31,
                                      2012                  2011
GAAP Sales as Reported                $   17,252,008      $  13,972,607
 British Sterling Exchange    1.61                  1.57
rate as reported
 Euro Exchange rate as        1.30                  1.35
reported
Constant Currency Sales               $   17,252,008      $  13,992,905
 (1) Exchange rate used for         1.61                  1.61
Constant Currency Purposes
 (2) Exchange rate used for         1.30                  1.30
Constant Currency Purposes
Net Effect of Constant Currency       $           $    105,430
Illustration - British Sterling        -
Net Effect of Constant Currency       $           $     (85,132)
Illustration - Euros                   -
Total Net Effect of Constant          $           $      20,298
Currency Illustration                  -



(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 British pounds to US dollars. The rate
represents the average exchange rate for the respective three month period.
(2) For illustrative purposes constant currency translates prior period
foreign sales at current exchange rates. For Rochester Medical Corporation
this is the conversion rate of Euros to US dollars. The rate represents the
average exchange rate for the respective three month period.

SOURCE Rochester Medical Corporation

Website: http://www.rocm.com
 
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