Click here to close now.




















Welcome!

Microsoft Cloud Authors: Liz McMillan, Greg O'Connor, Aleksei Gavrilenko, Elizabeth White, Pat Romanski

News Feed Item

Rochester Medical Reports Record Fourth Quarter and Fiscal Year Results

Provides An Update to Fiscal 2013 Outlook

STEWARTVILLE, Minn., Nov. 13, 2012 /PRNewswire/ -- Rochester Medical Corporation (NASDAQ: ROCM) today announced operating results for its fourth quarter and fiscal year ended September 30, 2012.

The Company reported record sales and record income from operations for the fourth quarter. Sales were $16,733,000 compared to $14,839,000 for the fourth quarter of last year.  Income from operations for the quarter was $1,687,000 compared to income from operations of $588,000 in the fourth quarter of last year.  Net income for the fourth quarter of fiscal 2012 was $1,027,000 or $0.08 per diluted share compared to net income of $407,000 or $0.03 per diluted share for the fourth quarter of last year.

Fourth quarter sales increased 13% year over year (16% on a constant currency basis) driven by a 14% increase in Rochester Medical Direct Sales (19% on a constant currency basis) and a 7% increase in Private Label Sales (7% 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 fourth quarter of fiscal 2012, the U.S. dollar was somewhat stronger versus the pound sterling and the Euro, thus negatively affecting Rochester Medical Direct Sales growth levels in actual U.S. dollars given the significant volume of direct sales in the United Kingdom and The Netherlands.

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 $1,366,000 or $0.11 per diluted share compared to Non-GAAP Net Income of $822,000 or $0.07 per diluted share for the fourth quarter of last year.  The increase in Non-GAAP net income for the fourth quarter is primarily due to increased gross profit as a result of the higher sales versus last year.

For the fiscal year ended September 30, 2012, the Company reported record sales of $61,089,000 compared to sales of $52,919,000 for the previous year.  It also had a record $3,213,000 of income from operations compared to a loss from operations of ($1,677,000) in fiscal 2011.  The 15% increase in annual total sales (18% on constant currency basis) resulted from an 18% increase in Rochester Medical Direct Sales (21% on a constant currency basis) and a 6% increase in Private Label Sales (6% on a constant currency basis).  The Company reported net income for the year of $2,050,000 or $0.17 per diluted share compared to a net loss of ($1,315,000) or ($0.11) per diluted share for the previous year.  The increase in net income for this fiscal year was primarily attributable to increased gross profit as a result of higher sales.

Non-GAAP Net Income for the current year was $3,507,000 or $0.28 per diluted share compared to Non-GAAP Net Income of $1,073,000 or $0.09 per diluted share for the previous year.  The increase was primarily due to increased gross profit as a result of higher sales.

Commenting on the results, Rochester Medical's CEO and President Anthony J. Conway said, "We had a solid quarter and a good year.  Our Direct Sales continue to grow nicely, especially our Intermittent Catheters which we sell into an $800 million global market.  In the fourth quarter on a global basis, Intermittent Catheters sales were up 44% overall.  In the U.S., Intermittent Catheter sales were up 47%.  This market is a primary focus for the Company going forward.  We expect to introduce further advanced products into this marketplace in late calendar year 2013.

"We announced last week that the Company will exit the Foley Catheter marketplace.  Though we have excellent products, our rate of market penetration was simply not strong enough to justify the considerable expense and attention that it required.  We are confident that the Company will be significantly stronger as a result of our decision."

"The Company also announced an update to its three-year strategic plan originally provided in November 2010.  From continuing operations the Company now expects Fiscal 2013 revenues to be approximately $67 million and net income to be approximately $7 million.  The primary reasons for the change in the strategic plan are the result of the discontinuation of the Foley Catheter line, and to a lesser extent, a more conservative assumption about the performance in our international sales business given the broader economic challenges in Europe."

Conway continued, "As our updated plan indicates, despite the reduction in our expected results of our three-year plan we nonetheless have demonstrated solid growth in fiscal years 2011 and 2012 and, importantly, we continue to grow our business at a robust rate.  Total sales are expected to increase 17% year over year after adjusting for the exclusion of Foley Catheter sales in both years, and net income is expected to double from fiscal 2012 given the higher level of profitability we expect to achieve.  We are looking forward to a good fiscal 2013."

Conference Call and Webcast
The Company will hold a quarterly conference call on Tuesday, November 13, 2012 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 8038

International:

617 213 4850

Pass code:

51602204

Preregistration: https://www.theconferencingservice.com/prereg/key.process?key=PFBBPA8XA


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:

63543382

 

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, 2011, 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

Reconciliation of Reported GAAP Revenue to Non-GAAP Revenue in Constant Currency

For the Three and Twelve months ended

September 30, 2012 and 2011

















(unaudited)


(unaudited)



Three months ended


Twelve months ended



September 30,


September 30,



2012

2011


2012

2011








GAAP Sales as Reported


$ 16,732,915

$ 14,839,311


$ 61,089,410

$ 52,918,875

         British Sterling Exchange rate as reported


1.58

1.61


1.58

1.61

         Euro Exchange rate as reported


1.25

1.41


1.30

1.41















Constant Currency Sales


$ 16,732,915

$ 14,493,113


$ 61,089,410

$ 51,943,485

  (1)  Exchange rate used for Constant Currency purposes

1.58

1.58


1.58

1.58

  (2)  Exchange rate used for Constant Currency purposes

1.25

1.25


1.30

1.30















Net Effect of Constant Currency Illustration - British Sterling

$                   -

$       (83,417)


$                   -

$     (333,008)

Net Effect of Constant Currency Illustration - Euros


$                   -

$     (262,781)


$                   -

$     (642,382)








Total Net Effect of Constant Currency Illustration


$                   -

$     (346,198)


$                   -

$     (975,390)















(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 or nine 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 or nine month period.  








 

ROCHESTER MEDICAL CORPORATION

Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income

For the Three and Twelve months ended

September 30, 2012 and 2011

















(unaudited)


(unaudited)



Three months ended


Twelve months ended



September 30,


September 30,



2012

2011


2012

2011








GAAP Net Income (Loss) as Reported


$ 1,027,000

$      407,000


$ 2,050,000

$  (1,315,000)








Diluted EPS as Reported


$           0.08

$             0.03


$           0.17

$            (0.11)















Adjustments for non-recurring unusual items:







   Merger and acquisition costs for Laprolan (1)



30,000



725,000

Subtotal


-

30,000


-

725,000















Adjustments for recurring non-cash expenses:







   Intangible amortization (2)


158,000

183,000


632,000

701,000

   ASC 718 compensation expense (3)


181,000

202,000


825,000

962,000

Subtotal


339,000

385,000


1,457,000

1,663,000















Non-GAAP Net Income


$ 1,366,000

$      822,000


$ 3,507,000

$   1,073,000








Non-GAAP Diluted EPS


$           0.11

$             0.07


$           0.28

$             0.09








Weighted Average Shares - Diluted


12,367,693

12,470,989


12,339,500

12,282,545




































(1) Merger and acquisition costs related to the purchase of Laprolan B.V. from Fornix N.V.








(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 aquisition of Laprolan from Fornix N.V. Management believes these assets are appreciating.  This adjustment adds back amortization expense for the three and twelve months ended September 30, 2012 and 2011 related to certain intangibles. The gross amount of amortization expense for the three months ended September 30, 2012 and 2011 is $218,000 and $236,000 net of taxes of $60,000 and $53,000 for net amounts of $158,000 and $183,000 respectively.  The gross amount of amortization expense for the twelve months ended September 30, 2012 and 2011 is $872,000 and $901,000 net of taxes of $240,000 and $200,000 for net amounts of $632,000 and $701,000 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 twelve months ended September 30, 2012 and 2011.  The gross amount of compensation expense for the three months ended September 30, 2012 and 2011 is $208,000 and $316,000 net of taxes of $27,000 and $114,000 for net amounts of $181,000 and $202,000 respectively.  The gross amount of compensation expense for the twelve months ended September 30, 2012 and 2011 is $984,000 and $1,495,000 net of taxes of $159,000 and $533,000 for net amounts of $825,000 and $962,000 respectively.

 

 

 

Rochester Medical Corporation






Press Release - F12 Fourth Quarter



























Summary Statements Of Operations 











(unaudited)


(unaudited)



Three months ended


Twelve months ended



September 30,


September 30,



2012


2011


2012


2011



















Sales

$  16,732,915


$ 14,839,311


$  61,089,410


$  52,918,875










Cost of sales

8,446,864


7,504,817


30,954,828


26,821,427










Gross profit

8,286,051


7,334,494


30,134,582


26,097,448


Gross profit %

49.5%


49.4%


49.3%


49.3%










Costs and expenses:









Marketing and selling

4,401,448


4,613,771


17,560,971


18,263,141


Research and development

207,385


256,266


1,190,095


1,008,767


General and administrative

1,990,690


1,876,686


8,170,468


8,502,956










Total operating expenses

6,599,523


6,746,723


26,921,534


27,774,864










Income (loss) from operations

1,686,528


587,771


3,213,048


(1,677,416)










Other income (expense)


















Interest income

15,126


(14,293)


43,243


139,859


Interest expense

-


(51,917)


(89,545)


(277,008)


Other income

(126,850)


(72,145)


(84,458)


(123,901)










Net income (loss) before income taxes

1,574,804


449,416


3,082,288


(1,938,466)










Income tax expense(benefit)

547,410


42,277


1,031,804


(623,162)










Net income (loss)

$   1,027,394


$     407,139


$   2,050,484


$   (1,315,304)



















Earnings (loss) per common share - Basic

$           0.09


$           0.03


$           0.17


$           (0.11)










Earnings (loss) per common share - Diluted

$           0.08


$           0.03


$           0.17


$           (0.11)










Weighted Average Shares:

12,020,167


12,205,299


12,032,113


12,217,900


Basic

















Weighted Average Shares:









Diluted

12,367,693


12,470,989


12,339,500


12,217,900

 

 

 

Rochester Medical Corporation



Press Release - F12 Fourth Quarter 
















Condensed Balance Sheets










(unaudited)






September 30,


September 30,





2012


2011








Assets












Current Assets






Cash and equivalents

$   13,921,363


$     8,722,935



Marketable securities

6,779,695


26,182,308



Accounts receivable

11,008,429


8,644,332



Inventories

9,883,651


11,278,694



Prepaid expenses and other assets

1,726,908


1,361,259



Deferred income tax asset

1,287,177


1,618,495











Total current assets

44,607,223


57,808,023









Property and equipment, net

11,862,073


12,052,685


Deferred income tax asset

1,030,994


1,242,010


Intangible assets, net

9,377,354


10,272,671


Goodwill


9,053,091


9,094,725









Total Assets

$   75,930,735


$    90,470,114








Liabilities and Stockholders' Equity












Current liabilities:






Accounts payable

$     3,070,329


$     2,773,398



Accrued expenses

3,427,397


2,961,270



Short-term debt

-


17,862,185











Total current liabilities

6,497,726


23,596,853









Long-term liabilities

1,137,212


896,414









Stockholders' equity

68,295,797


65,976,847









Total Liabilities and Stockholder Equity

$   75,930,735


$    90,470,114

 

 

 

SOURCE Rochester Medical Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.