Welcome!

Microsoft Cloud Authors: David H Deans, Pat Romanski, Janakiram MSV, Jnan Dash, Andreas Grabner

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
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...