STEWARTVILLE, Minn., April 19 /PRNewswire-FirstCall/ -- Rochester Medical Corporation today announced operating results for its second quarter ending March 31, 2006.
The Company reported record sales of $4,874,000 for the current quarter compared to $4,147,000 for the second quarter of last year. It also reported net loss of $244,000 or $(.04) per diluted share compared to a net income of $141,000 or $.02 per diluted share for the second quarter of last year. The results for the quarter include a $476,000 expense that consists of $336,000 of non-cash stock option expense, and one-time expenses related to the contemplated strategic transactions announced by Rochester Medical on April 3, 2006. Excluding those expenses, adjusted net income on a non-GAAP basis was $232,000 or $.04 per diluted share which is a 65% increase from the second quarter of last year.
The 18% increase in revenues resulted from increased sales of Rochester Medical branded products and increased sales of Private Label products. The decrease in earnings was primarily due to the non-cash stock option expense and the non-recurring costs mentioned above.
Commenting on the quarter, Company CEO and President Anthony J. Conway said, “I am very pleased with our continuing progress. Sales are strong and we are showing excellent growth in our relatively new Hydrophilic Intermittent Catheter product line. Margins on sales of these advanced catheters are still relatively modest but will improve significantly as sales levels reach critical volume needed for efficiency, and also as we automate some of the labor intensive aspects of the complex packing assemblies required for the kit and tray configurations of these products.
“We continue to believe sales levels for our Private Label Male External Catheters are being skewed upward due to inventory increases in light of the market uncertainty related to the potential Mentor Urology transaction.
“Our cash position has strengthened from $5.5 million a year ago to $8.1 million today which is very helpful for funding the upcoming contemplated strategic transactions.
“These are exciting times for Rochester Medical. The marketplace is demonstrating excellent acceptance of our new products. We continue to work diligently toward finalizing the contemplated strategic transactions, and we fully expect them to be consummated in the near term. As stated in the previous announcement, after those contemplated transactions are finalized we project Rochester Medical’s sales, margins, and profits will be significantly enhanced.”
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:
1-866-543-6411, password 15479436 Replay will be available for seven days at: http://www.rocm.com or via telephone at 1-888-286-8010, password 86425230.
The immediately preceding statement contains forward-looking statements that involve risks and uncertainties, including the uncertainty of the Agreements with Coloplast and Mentor being finalized, 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, 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 (Part II, I tem 6) for the year ended September 30, 2005.
Rochester Medical Corporation develops, manufactures, and markets latex- free 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) March 31, September 30, 2006 2005 Assets Current Assets Cash and equivalents $7,915,537 $1,129,876 Marketable securities 174,937 5,286,553 Accounts receivable 3,101,001 3,204,824 Inventories 3,474,099 3,936,243 Prepaid expenses and other assets 444,320 351,027 Deferred income tax asset 21,000 21,000 Total current assets 15,130,894 13,929,523 Property and equipment 7,183,036 7,561,303 Deferred income tax asset 433,000 433,000 Intangible assets 274,468 285,194 $23,021,398 $22,209,020 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $742,301 $283,332 Accrued expenses 554,642 744,260 Short-term debt 34,000 34,000 Current Maturities of Capital Leases 40,918 39,785 Deferred revenue 157,143 157,143 Total current liabilities 1,529,004 1,258,520 Long-term debt Long term debt 34,000 34,000 Capital leases, less current portion 43,283 64,030 Deferred revenue 485,715 564,286 Total long term debt 562,998 662,316 Stockholders’ equity 20,929,396 20,288,184 $23,021,398 $22,209,020 Summary Statements Of Operations Three months ended Six months ended March 31, March 31, 2006 2005 2006 2005 Sales $4,874,079 $4,147,173 $9,481,279 $7,812,445 Cost of sales 3,314,823 2,633,061 6,320,293 4,900,339 Gross profit 1,559,256 1,514,112 3,160,986 2,912,106 Gross profit % 32% 37% 33% 37% Costs and expense: Marketing and selling 576,374 566,452 1,175,367 1,136,990 Research and development 186,974 181,309 360,597 378,039 General and administrative 994,546 652,896 1,566,800 1,189,924 Total operating expenses 1,757,894 1,400,657 3,102,764 2,704,953 Income/(Loss) from operations (198,638) 113,455 58,222 207,153 Other income (expense) (Loss) on Sale of Investments (103,532) - (103,532) - Interest income/(loss) - Net 57,851 27,758 112,372 56,056 Net Income/(Loss) $(244,319) $141,213 $67,062 $263,209 Earnings/(Loss) per common share - Basic $(0.04) $0.03 $0.01 $0.05 Earnings/(Loss) per common share - Diluted $(0.04) $0.02 $0.01 $0.05 Shares in per share computation Basic 5,533,739 5,457,777 5,529,922 5,452,980 Shares in per share computation Diluted 5,533,739 5,768,546 5,782,113 5,721,881
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/
