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
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Press
Release - F13 First Quarter
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Condensed Consolidated Statements Of
Operations
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(unaudited)
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Three
months ended
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December
31,
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2012
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2011
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Sales
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$
17,252,008
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$
13,972,607
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Cost of
sales
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8,778,760
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6,861,468
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Gross
profit
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8,473,248
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7,111,139
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Gross
profit %
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49.1%
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50.9%
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Costs and
expense:
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Marketing
and selling
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4,549,044
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4,668,062
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Research
and development
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339,158
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376,269
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General
and administrative
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2,207,542
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2,087,537
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Total
operating expenses
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7,095,744
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7,131,868
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Income
(loss) from operations
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1,377,504
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(20,729)
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Other
income (expense)
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10,263
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(91,070)
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Net income
(loss) before income taxes
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1,387,767
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(111,799)
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Income tax
expense (benefit)
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375,622
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(36,452)
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Net income
(loss)
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$
1,012,145
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$
(75,347)
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Net income
(loss) per common share - Basic
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$
0.08
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$
(0.01)
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Net income
(loss) per common share - Diluted
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$
0.08
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$
(0.01)
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Weighted
Average Shares:
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Basic
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12,038,232
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12,136,125
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Weighted
Average Shares:
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Diluted
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12,396,930
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12,136,125
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Rochester
Medical Corporation
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Press
Release - F13 First Quarter
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Condensed Consolidated Balance
Sheets
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(unaudited)
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December
31,
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September
30,
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2012
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2012
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Assets
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Current
Assets
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Cash and
equivalents
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$
16,311,106
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$
13,921,363
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Marketable
securities
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6,739,272
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6,779,695
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Accounts
receivable
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9,458,473
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11,008,429
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Inventories
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9,624,926
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9,883,650
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Prepaid
expenses and other assets
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1,601,513
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1,726,908
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Deferred
income tax asset
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1,304,214
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1,287,177
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Total
current assets
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45,039,504
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44,607,222
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Property
and equipment, net
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12,280,407
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11,862,072
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Deferred
income tax asset
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1,086,322
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1,030,994
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Intangible
assets, net
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9,276,256
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9,377,355
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Goodwill
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9,210,602
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9,053,091
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Total
Assets
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$
76,893,091
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$
75,930,734
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Liabilities and Stockholders' Equity
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Current
liabilities:
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Accounts
payable
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$
2,716,170
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$
3,070,329
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Accrued
expenses
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2,558,117
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3,427,397
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Total
current liabilities
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5,274,287
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6,497,726
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Long-term
liabilities
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1,164,819
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1,137,212
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Stockholders' equity
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70,453,985
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68,295,796
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Total
Liabilities and Stockholder Equity
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$
76,893,091
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$
75,930,734
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ROCHESTER
MEDICAL CORPORATION
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Reconciliation of Reported GAAP Net Income to
Non-GAAP Net Income
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For the
Three months ended
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December
31, 2012 and 2011
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(unaudited)
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Three
months ended
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December
31,
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2012
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2011
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GAAP Net
Income (Loss) as Reported
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$ 1,012,000
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$ (75,000)
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Net Income
(Loss) Per Share - Diluted as Reported
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$
0.08
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$
(0.01)
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Adjustments for non-recurring unusual
items:
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Severance costs (1)
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111,000
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-
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Subtotal
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111,000
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-
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Adjustments for recurring non-cash
expenses:
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Intangible amortization (2)
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155,000
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158,000
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ASC 718 compensation expense
(3)
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147,000
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202,000
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Subtotal
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302,000
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360,000
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Non-GAAP
Net Income
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$ 1,425,000
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$ 285,000
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Non-GAAP
Diluted EPS
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$
0.11
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$
0.02
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Weighted
Average Shares - Diluted
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12,396,930
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12,311,866
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(1)
Severance costs associated with our exiting of the Foley Catheter
market. The company
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announced they
were exiting the Foley Catheter market on November 6, 2012.
This adjustment adds
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back severance
costs of certain employees for the three months ended December 31,
2012. The gross
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amount of the
severance costs for the three months ended December 31, 2012
is $152,000 net of taxes of
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$41,000 for a net amount of
$111,000
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(2)
Amortization of the intangibles acquired in June 2006 asset
acquisition from Coloplast AS and Mentor
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Corporation and the
intangibles acquired in the January 2011 acquisition of Laprolan
from Fornix N.V.
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Management believes
these assets are appreciating. This adjustment adds back
amortization
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expense for the three
months ended December 31, 2012 and 2011 related to certain
intangibles.
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The gross amount of
amortization expense for the three months ended December 31, 2012
and 2011 is
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$213,000 and
$218,000 net of taxes of $58,000 and $60,000 for net amounts of
$155,000 and $158,000
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respectively.
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(3)
Compensation expense mandated by ASC 718. This adjustment
adds back the compensation expense
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recorded for stock
options granted to employees and directors that vested during the
three months ended
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December 31, 2012 and
2011. The gross amount of compensation expense for the three
months ended
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December 31, 2012 and
2011 is $202,000 and $316,000 net of taxes of $55,000 and $114,000
for net
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amounts of $147,000
and $202,000 respectively.
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ROCHESTER
MEDICAL CORPORATION
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Reconciliation of Reported GAAP Revenue to Non-GAAP
Revenue in Constant Currency
|
For the
Three months ended
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December
31, 2012 and 2011
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|
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|
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|
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|
|
(unaudited)
|
|
|
Three
months ended
|
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December
31,
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2012
|
2011
|
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GAAP Sales
as Reported
|
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$ 17,252,008
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$ 13,972,607
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British Sterling Exchange rate as reported
|
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1.61
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1.57
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Euro
Exchange rate as reported
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1.30
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1.35
|
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|
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|
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Constant
Currency Sales
|
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$ 17,252,008
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$ 13,992,905
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(1) Exchange rate used for Constant Currency
Purposes
|
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1.61
|
1.61
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(2) Exchange rate used for Constant Currency
Purposes
|
|
1.30
|
1.30
|
|
|
|
|
|
|
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Net Effect
of Constant Currency Illustration - British Sterling
|
|
$
-
|
$
105,430
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Net Effect
of Constant Currency Illustration - Euros
|
|
$
-
|
$
(85,132)
|
|
|
|
|
Total Net
Effect of Constant Currency Illustration
|
|
$
-
|
$
20,298
|
|
|
|
|
(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