STEWARTVILLE, Minn., Nov. 15 /PRNewswire-FirstCall/ -- Rochester Medical Corporation today announced operating results for its fourth quarter and year ending September 30, 2007.
The Company reported 23% sales growth with record sales of $8,437,000 for the current quarter compared to $6,826,000 for the fourth quarter of last year, resulting from increases in both Rochester Medical Brand Sales and Private Label sales. It reported net income of $733,000 or $.06 per diluted share compared to a net income of $906,000 or $.08 per diluted share for the fourth quarter of last year. Net income excluding stock option expense and expense for amortization of intangibles, or “Non-GAAP Net Income” for the current quarter is $1,211,000 or $.10 per diluted share, compared to Non-GAAP Net Income of $1,237,000 or $.10 per diluted share for the fourth quarter of last year. To aid in comparison between the quarters the Company notes that fourth quarter 2006 included an $87,000 income tax expense while fourth quarter 2007 included a $480,000 income tax expense, resulting in a 30% increase in net income before income taxes for this fourth quarter as compared to last year’s fourth quarter.
For the fiscal year ending September 30, 2007 the Company reported record sales of $32,663,000 compared to sales of $21,666,000 for the previous fiscal year. It reported net income for the year of $34,050,000 or $2.77 per diluted share compared to a net income of $1,959,000 of $.17 per diluted share for the previous year. Non-GAAP net income for fiscal year 2007 was $4,966,000 or $.40 per diluted share compared to $1,948,000 or $.17 per diluted share for fiscal 2006. The 155% increase was primarily due to increased gross profit partially offset by higher costs and income taxes. The Company notes that in Fiscal 2007 it received approximately $31,000,000 (after taxes) in settlements for a lawsuit.
Commenting on today’s announcement, Rochester Medical CEO and President Anthony J. Conway said, “Once again at year end I am very pleased to say that this has been an excellent quarter and excellent year for the Company. Sales and operating income have strengthened very nicely, and we have been investing a portion of that increased income back into the Company in order to continue on a solid growth path for the future. Sales and Marketing expenses, for example, increased by over $3 million dollars in Fiscal 2007 as compared to Fiscal 2006. We are continuing the development and expansion of our Sales and Marketing team. I believe these investments make good strategic sense, and while they will impact net income somewhat in the short term, I am confident they will strengthen the Company’s future performance.”
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.
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 www.rocm.com. To listen live to the conference call via telephone, call:
www.rocm.com
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 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 (www.streetevents.com).
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, 2006.
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.
CONTACT: Anthony J. Conway, President and Chief Executive Officer of
Rochester Medical Corporation, +1-507-533-9600
Web site: http://www.rocm.com//
