STEWARTVILLE, Minn., July 27 /PRNewswire-FirstCall/ -- Rochester Medical Corporation today announced operating results for its third quarter ending June 30, 2006.
The Company reported record sales of $5,358,076 for the quarter compared to $3,815,463 for the third quarter of last year. It also reported record net income of $985,489 or $.17 per diluted share compared to a net income of $60,066 or $.01 per diluted share for the third quarter of last year. The approximate 40% increase in revenues resulted from increased sales of Rochester Medical(R) branded products and increased sales of Private Label products. Rochester Medical branded product sales included approximately three weeks worth of sales of the Company’s new UK brands acquired through the recently announced transaction with Coloplast A/S which closed on June 2, 2006.
The rise in net income for the third quarter is a result of significantly higher gross profit and recognition of a portion of the Company’s deferred tax assets, partially offset by expenses which were primarily non-recurring expenses related to the recently announced acquisition of business assets from Coloplast A/S and Mentor Corporation.
Commenting on the quarter, Rochester Medical CEO and President Anthony J. Conway said, “This has been an excellent quarter for Rochester Medical. We have successfully acquired significant new business assets which have now begun to generate additional revenues and earnings for the Company. I am very pleased to report that the acquisitions are completed, and integration of the new business activities throughout the Company is proceeding very smoothly.
“Because of the significant acquisitions, the factors influencing this quarter’s results are somewhat more complex than usual, and in the conference call referenced below we plan to discuss some of the more significant details.”
Conway concluded, “I am confident about the Company’s success going forward. We expect continued growth and new opportunities in the coming year.”
Rochester Medical has scheduled a conference call today at 4:00 p.m., C.T. regarding this announcement. The call is being webcast by Thomson/CCBN and can be accessed at Rochester Medical’s website at http://www.rocm.com . To listen to the conference call via telephone, call:
Domestic: 1-866-800-8649 password 32354788 International: 617-614-2703 password 32354788 Replay will be available for seven days at: http://www.rocm.com or via telephone at 1-888-286-8010, password 49473087. International Replay: 617-801-6888, password 49473087.
The immediately preceding statement 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, the uncertainty of timing of private label sales revenues (particularly international customers), FDA and other regulatory review and response times, the uncertainty of successfully integrating and growing the Company’s new UK operations, 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, 2005.
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 . Condensed Balance Sheets (unaudited) June 30, September 30, 2006 2005 Assets Current Assets Cash and equivalents $2,129,523 $1,129,876 Marketable securities - 5,286,553 Accounts receivable 4,080,435 3,204,824 Inventories 4,208,982 3,936,243 Prepaid expenses and other assets 335,417 351,027 Deferred income tax asset 40,308 21,000 Total current assets 10,794,665 13,929,523 Property and equipment, net 8,962,371 7,561,303 Deferred income tax asset 1,190,689 433,000 Intangible assets 13,264,142 285,194 $34,211,867 $22,209,020 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $926,995 $283,332 Accrued expenses 1,099,492 744,256 Current maturities of debt 1,665,362 34,000 Current maturities of capital leases 41,497 39,785 Deferred revenue 157,143 157,143 Income tax payable 18,055 - Total current liabilities 3,908,544 1,258,516 Long-term debt Long term debt, less current maturities 7,806,738 34,000 Capital leases, less current maturities 32,689 64,030 Deferred revenue 446,429 564,286 Total long term debt 8,285,856 662,316 Stockholders’ equity 22,017,467 20,288,188 $34,211,867 $22,209,020 Summary Statements Of Operations Three months ended Nine months ended June 30, June 30, 2006 2005 2006 2005 Sales $5,358,076 $3,815,463 $14,839,355 $11,627,908 Cost of sales 3,361,907 2,512,473 9,682,200 7,412,813 Gross profit 1,996,169 1,302,990 5,157,155 4,215,095 Gross profit % 37% 34% 35% 36% Costs and expense: Marketing and selling 786,583 616,209 1,961,950 1,753,199 Research and development 209,060 186,055 569,657 564,094 General and administrative 788,584 469,254 2,355,384 1,659,179 Total operating expenses 1,784,227 1,271,518 4,886,991 3,976,472 Income from operations 211,942 31,472 270,164 238,623 Other income (expense) (Loss) on Sale of Investments - - (103,532) - Interest income/ (expense) - Net 14,556 28,594 126,928 84,649 Net income before income taxes 226,498 60,066 293,560 323,272 Income tax benefit/ (expense) - Net 758,991 - 758,991 - Net income $985,489 $60,066 $1,052,551 $323,272 Earnings per common share - Basic $0.18 $0.01 $0.19 $0.06 Earnings per common share - Diluted $0.17 $0.01 $0.18 $0.06 Shares in per share computation Basic 5,536,494 5,470,060 5,532,112 5,458,673 Shares in per share computation Diluted 5,918,855 5,770,867 5,826,292 5,737,994
Rochester Medical Corporation
CONTACT: Anthony J. Conway, President and Chief Executive Officer ofRochester Medical Corporation, +1-507-533-9600
Web site: http://www.rocm.com/
