STEWARTVILLE, Minn., Feb. 2 /PRNewswire-FirstCall/ -- Rochester
Medical Corporation (NASDAQ:ROCM) today announced operating results
for its first quarter ended December 31, 2008. The Company reported
sales of $8,436,000 for the current quarter compared to $8,223,000
for the first quarter of last year. It also reported net income of
$54,000 or $.00 per diluted share compared to net income of
$272,000 or $.02 per diluted share for the first quarter of last
year. The approximate 3% increase in sales (13% on a constant
currency basis) resulted from a 4% decrease in Rochester Medical
Branded Sales (11% increase on a constant currency basis), and an
18% increase in Private Label Sales (18% 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 first quarter of fiscal 2009, the dollar
continued to strengthen significantly versus the pound sterling,
thus negatively affecting 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 is
$482,000 or $.04 per diluted share compared to Non-GAAP Net Income
of $686,000 or $.05 per diluted share for the first quarter of last
year. The decrease for the current quarter is primarily
attributable to increased sales and marketing costs. Commenting on
today's announcement Rochester Medical CEO and President Anthony J.
Conway said, "The 13% percent overall sales growth (constant
currency) is good considering that our U.S. branded sales were
essentially flat due to a 15% decrease in Male External Catheter
unit sales (normally our largest selling product line) instead of
the usual expected growth. The decrease was due to the timing of
orders from one of our largest distribution partners. We are
confident this was simply a timing aberration, and we expect those
orders to return to normal allowing for resumption of solid U.S.
branded growth in the second quarter. International branded sales
increased 16% on a constant currency basis led by continued strong
branded growth in the United Kingdom." Conway continued, "We are
very pleased with the increasing number of scheduled evaluations
with institutions of various sizes including with major, well known
hospitals. We expect to introduce our improved Silicone Foley
Catheter line in April, and we believe that will heighten the
already significant interest in our acute care offering. We are now
selling the new line of MAGIC3(TM) Intermittent Catheters and the
initial response to the new technology is positive both here and
abroad. I am confident we will see good sales growth going forward
and believe that, excluding variations in currency exchange rates,
Rochester Medical will have a solid year." 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.
Non-GAAP Net Income is not a measure 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 is not comparable to information provided by other
companies. Non-GAAP Net Income has limitations as an analytical
tool 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 are presented at the end of
this press release. 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 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. 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 Standard 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: 888.680.0878, password 51116905
International: 617.213.4855, password 51116905 Pre Registration:
https://www.theconferencingservice.com/prereg/key.process?key=PJPA8VBMG
Replay will be available for seven days at http://www.rocm.com/ or
via telephone at: Domestic: 888-286-8010, password 44623326
International: 617-801-6888, password 44623326 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/). 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/. ROCHESTER MEDICAL CORPORATION Reconciliation
of Reported GAAP Net Income to Non-GAAP Net Income For the Three
months ended December 31, 2008 (unaudited) Three months ended
December 31, ------------ 2008 2007 ---- ---- GAAP Net Income as
Reported $54,000 $272,000 ======= ======== Diluted EPS as Reported
$- $0.02 == ===== Adjustments for recurring non-cash expenses:
Intangible Amortization (1) 163,000 163,000 FAS 123R Compensation
Expense (2) 265,000 251,000 ------- ------- Subtotal 428,000
414,000 Non-GAAP Net Income $482,000 $686,000 ======== ========
Non-GAAP Diluted EPS $0.04 $0.05 ===== ===== Weighted Average
Shares - Diluted 12,697,645 12,587,229 (1) 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 months ended December 31, 2008 and 2007 related to
certain intangibles. (2) Compensation expense mandated by SFAS
123R. This adjustment adds back the compensation expense recorded
when stock options are granted to employees and directors for the
three months ended December 31, 2008 and 2007. Rochester Medical
Corporation Press Release - F09 First Quarter Condensed Balance
Sheets (unaudited) December 31, September 30, 2008 2008 ---- ----
Assets Current Assets Cash and equivalents $10,247,030 $8,508,000
Marketable securities 25,486,714 28,493,648 Accounts receivable
4,663,966 6,009,023 Inventories 8,504,445 8,745,873 Prepaid
expenses and other assets 1,083,509 1,110,291 Deferred income tax
asset 1,712,785 1,143,931 --------- --------- Total current assets
51,698,449 54,010,766 Property and equipment, net 9,827,631
9,883,329 Deferred income tax asset 864,982 831,299 Patents, net
232,313 227,358 Intangible assets, net 6,337,719 6,860,213 Goodwill
4,244,848 5,169,661 --------- --------- Total Assets $73,205,942
$76,982,626 =========== =========== Liabilities and Stockholders'
Equity Current liabilities: Accounts payable $1,476,055 $2,127,470
Accrued expenses 1,015,779 1,170,654 Short-term debt 1,953,004
1,940,292 --------- --------- Total current liabilities 4,444,838
5,238,416 Long-term liabilities Other long term liabilities 239,496
239,496 Long-term debt 3,531,684 3,806,185 --------- ---------
Total long term liabilities 3,771,180 4,045,681 Stockholders'
equity 64,989,924 67,698,529 ---------- ---------- Total
Liabilities and Stockholder Equity $73,205,942 $76,982,626
=========== =========== Rochester Medical Corporation Press Release
- F09 First Quarter Summary Statements Of Operations (unaudited)
Three months ended December 31, ------------ 2008 2007 ---- ----
Sales $8,436,084 $8,223,288 Cost of sales 4,511,171 4,082,485
--------- --------- Gross profit 3,924,913 4,140,803 Gross profit %
47% 50% Costs and expense: Marketing and selling 2,566,262
2,224,365 Research and development 317,660 228,943 General and
administrative 1,365,757 1,615,118 --------- --------- Total
operating expenses 4,249,679 4,068,426 --------- --------- Income
(loss) from operations (324,766) 72,377 Other income (expense)
Interest income 167,272 453,340 Interest expense (83,774) (149,489)
Other income 200,442 - ------- --- Net income (loss) before income
taxes (40,826) 376,228 Income tax expense (benefit) (94,451)
104,674 ------- ------- Net income $53,625 $271,554 =======
======== Earnings per common share - Basic $- $0.02 === =====
Earnings per common share - Diluted $- $0.02 === ===== Weighted
Average Shares: Basic 11,980,875 11,730,234 ========== ==========
Weighted Average Shares: Diluted 12,697,645 12,587,229 ==========
========== 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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