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Rochester Medical Reports Fiscal 2013 Second Quarter Results

         Rochester Medical Reports Fiscal 2013 Second Quarter Results

PR Newswire

STEWARTVILLE, Minn., April 25, 2013

STEWARTVILLE,Minn., April 25, 2013 /PRNewswire/ -- Rochester Medical
Corporation (NASDAQ: ROCM) today announced operating results for its second
quarter ended March 31, 2013.

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

The Company reported sales of $16,635,000 for the current quarter compared to
$15,427,000 for the second quarter of last year. The Company also reported
net income of $1,199,000 or $0.10 per diluted share compared to $603,000 or
$0.05 per diluted share for the same period last year.

The approximately 8% increase in sales (8% on a constant currency basis)
resulted from a 10% increase in Rochester Medical Direct sales (11% on a
constant currency basis) partially offset by a 1% decrease in Private Label
sales (1% decrease 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.

The Company announced in November 2012 its decision to cease manufacturing and
marketing its line of Foley Catheters. Excluding Foley Catheter sales from
the second quarter of last year and this year, overall Direct sales growth was
13% (14% on a constant currency basis).

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 $1,488,000 or $0.12 per diluted share compared to Non-GAAP Net Income of
$920,000 or $0.08 per diluted share for the first quarter of last year. The
increase in Non-GAAP Net Income in the second quarter was primarily due to
increased gross profits as a result of higher sales revenue.

Commenting on the second quarter results, Rochester Medical's CEO and
President Anthony J. Conway said, "We continue to make nice progress,
especially in the United States and United Kingdom where Direct Sales,
excluding Foley Catheters, grew 24% and 23% respectively. We look forward to
further progress in the second-half of fiscal 2013 driven by continued share
gains in our primary strategic market, serving the patient population in the
Home Care channel."

Conference Call and Webcast

The Company will hold a quarterly conference call on Thursday, April 25, 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 8018
International:   617 213 4845
Pass code:       69140545
PreRegistration: https://www.theconferencingservice.com/prereg/key.process?key=PFY3WDB6C



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:     48212906



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 Mike Piccinino, 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 Second Quarter
                          Condensed Consolidated Statements Of Operations
                          (unaudited)                 (unaudited)
                          Three months ended          Six months ended
                          March 31,                   March 31,
                          2013           2012         2013         2012
Sales                     $ 16,635,070  $            $            $
                                         15,427,275  33,887,078  29,399,882
Cost of sales             8,239,481      7,822,941    17,018,241   14,684,409
Gross profit              8,395,589      7,604,334    16,868,837   14,715,473
    Gross profit %        50.5%          49.3%        49.8%        50.1%
Costs and expense:
    Marketing and         4,162,179      4,394,090    8,711,223    9,040,876
    selling
    Research and          312,023        247,889      651,181      624,158
    development
    General and           2,148,164      2,128,024    4,355,706    4,236,837
    administrative
Total operating expenses  6,622,366      6,770,003    13,718,110   13,901,871
Income from operations    1,773,223      834,331      3,150,727    813,602
Other income (expense)    (50,081)       49,782       (39,818)     (41,288)
Net income before income  1,723,142      884,113      3,110,909    772,314
taxes
Income tax expense       523,892        281,599      899,514      245,147
Net income               $             $         $           $   
                          1,199,250     602,514      2,211,395   527,167
Net income per common     $         $       $       $     
share - Basic             0.10          0.05        0.18        0.04
Net income per common     $         $       $       $     
share - Diluted           0.10          0.05        0.18        0.04
Weighted Average Shares:
    Basic                 12,146,969     12,003,167   12,092,003   12,049,900
Weighted Average Shares:
    Diluted               12,604,099     12,235,701   12,482,558   12,258,402



Rochester Medical Corporation
Press Release - F13 Second Quarter
                                         Condensed Consolidated Balance Sheets
                                              (unaudited)
                                              March 31,       September 30,
                                              2013            2012
Assets
 Current Assets
       Cash and equivalents                   $16,291,745     $ 13,921,363
       Marketable securities                  6,499,900       6,779,695
       Accounts receivable                    10,776,753      11,008,429
       Inventories                            9,265,672       9,883,651
       Prepaid expenses and other assets      1,905,531       1,726,908
       Deferred income tax asset              1,327,652       1,287,177
              Total current assets            46,067,253      44,607,223
 Property and equipment, net                  12,769,153      11,862,072
 Deferred income tax asset                    1,088,406       1,030,994
 Intangible assets, net                       8,806,573       9,377,354
 Goodwill                                     8,785,417       9,053,091
 Total Assets                                 $77,516,802     $ 75,930,734
Liabilities and Stockholders' Equity
 Current liabilities:
       Accounts payable                       $ 2,252,362    $  3,070,329
       Accrued expenses                       3,535,273       3,427,397
              Total current liabilities       5,787,635       6,497,726
 Long-term liabilities                        1,128,641       1,137,212
 Stockholders' equity                         70,600,526      68,295,796
 Total Liabilities and Stockholder            $77,516,802     $ 75,930,734
 Equity



ROCHESTER MEDICAL CORPORATION
Press Release - F13 Second Quarter
For the Six months ended
March 31, 2013 and 2012
                            (unaudited)               (unaudited)
                            Three months ended        Six months ended
                            March 31,                 March 31,
                            2013        2012          2013        2012
GAAP Net Income as          $ 1,199,250 $  603,000  $ 2,211,395 $  527,000
Reported
Net Income Per Share -      $      $        $      $     
Diluted as Reported         0.10        0.05          0.18        0.04
Adjustments for
non-recurring unusual
items:
 Severance costs (1)       13,000      -             124,000     -
Subtotal                    13,000      -             124,000     -
Adjustments for recurring
non-cash expenses:
 Intangible amortization  149,000     158,000       304,000     316,000
(2)
 ASC 718 compensation     127,000     159,000       275,000     361,000
expense (3)
Subtotal                    276,000     317,000       579,000     677,000
Non-GAAP Net Income         $ 1,488,250 $  920,000  $ 2,914,395 $ 1,204,000
Non-GAAP Diluted EPS        $      $        $      $     
                            0.12        0.08          0.23        0.10
Weighted Average Shares -   12,604,099  12,235,701    12,482,558  12,258,402
Diluted



(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 March 31, 2013. The gross amount of the severance costs
for the three months ended March 31, 2013 is $19,000 net of taxes of $6,000
for a net amount of $13,000. The gross amount of the severance costs for the
six months ended March 31, 2013 is $171,000 net of taxes of $47,000 for a net
amount of $124,000.
(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. This adjustment adds
back amortization expense for the three and six months ended March 31, 2013
and 2012 related to certain intangibles. The gross amount of amortization
expense for the three months ended March 31, 2013 and 2012 is $213,000 and
$218,000 net of taxes of $64,000 and $60,000 for net amounts of $149,000 and
$158,000 respectively. The gross amount of amortization expense for the six
months ended March 31, 2013 and 2012 is $426,000 and $436,000 net of taxes of
$122,000 and $120,000 for net amounts of $304,000 and $316,000 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 and six months ended March 31, 2013 and
2012. The gross amount of compensation expense for the three months ended
March 31, 2013 and 2012 is $182,000 and $248,000 net of taxes of $55,000 and
$89,000 for net amounts of $127,000 and $159,000 respectively. The gross
amount of compensation expense for the six months ended March 31, 2013 and
2012 is $384,000 and $564,000 net of taxes of $109,000 and $203,000 for net
amounts of $275,000 and $361,000 respectively.



ROCHESTER MEDICAL CORPORATION
Press Release - F13 Second Quarter
For the Six months ended
March 31, 2013 and 2012
                            (unaudited)              (unaudited)
                            Three months ended       Six months ended
                            March 31,                March 31,
                            2013        2012         2013         2012
GAAP Sales as Reported      $16,635,070 $15,427,275  $ 33,887,078 $ 29,399,882
 British Sterling        1.55        1.57         1.58         1.57
Exchange rate as reported
 Euro Exchange rate as   1.32        1.31         1.31         1.33
reported
Constant Currency Sales     $16,635,070 $15,367,079  $ 33,887,078 $ 29,359,845
 (1) Exchange rate used
for Constant Currency       1.55        1.55         1.58         1.58
Purposes
 (2) Exchange rate used
for Constant Currency       1.32        1.32         1.31         1.31
Purposes
Net Effect of Constant
Currency Illustration -     $ -         $ 10,529     $ -          $ (74,742)
British Sterling
Net Effect of Constant
Currency Illustration -     $ -         $ (70,725)   $ -          $ 34,705
Euros
Total Net Effect of
Constant Currency           $ -         $ (60,196)   $ -          $ (40,037)
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
raterepresents 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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