Minnesota | 0-18933 | 41-1613227 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
One Rochester Medical Drive, Stewartville, MN |
55976 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release dated July 28, 2011, of Rochester Medical Corporation |
ROCHESTER MEDICAL CORPORATION |
||||
By: | /s/ David A. Jonas | |||
David A. Jonas | ||||
Chief Financial Officer |
Exhibit No. | Description | |||
99.1 | Press release dated July 28, 2011 of Rochester Medical Corporation |
Domestic: |
888 680 0878 | |
International: |
617 213 4855 | |
Pass code: |
31130211 |
Domestic: |
1 888 286 8010 | |
International: |
+1 617 801 6888 | |
Pass code: |
95783386 |
2
3
4
(unaudited) | (unaudited) | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales |
$ | 14,280,558 | $ | 10,244,158 | $ | 38,079,563 | $ | 30,321,451 | ||||||||
Cost of sales |
7,280,930 | 5,202,198 | 19,316,610 | 16,007,297 | ||||||||||||
Gross profit |
6,999,628 | 5,041,960 | 18,762,953 | 14,314,154 | ||||||||||||
Gross profit % |
49.0 | % | 49.2 | % | 49.3 | % | 47.2 | % | ||||||||
Costs and expenses: |
||||||||||||||||
Marketing and selling |
5,237,739 | 3,151,458 | 14,132,466 | 8,800,449 | ||||||||||||
Research and development |
222,974 | 246,401 | 752,500 | 930,819 | ||||||||||||
General and administrative |
2,030,382 | 1,369,406 | 6,143,173 | 4,807,757 | ||||||||||||
Total operating expenses |
7,491,095 | 4,767,265 | 21,028,139 | 14,539,025 | ||||||||||||
Income (loss) from operations |
(491,467 | ) | 274,695 | (2,265,186 | ) | (224,871 | ) | |||||||||
Other income (expense) |
||||||||||||||||
Interest income |
49,601 | 51,514 | 154,148 | 156,889 | ||||||||||||
Interest expense |
(70,239 | ) | (36,540 | ) | (225,094 | ) | (117,128 | ) | ||||||||
Other income (expense) |
(22,603 | ) | 4,325 | (51,750 | ) | (57,064 | ) | |||||||||
Net income (loss) before income taxes |
(534,708 | ) | 293,994 | (2,387,882 | ) | (242,174 | ) | |||||||||
Income tax expense (benefit) |
(240,744 | ) | 198,974 | (665,439 | ) | 183,379 | ||||||||||
Net income (loss) |
$ | (293,964 | ) | $ | 95,020 | $ | (1,722,443 | ) | $ | (425,553 | ) | |||||
Net income (loss) per common share Basic |
$ | (0.02 | ) | $ | 0.01 | $ | (0.14 | ) | $ | (0.03 | ) | |||||
Net income (loss) per common share Diluted |
$ | (0.02 | ) | $ | 0.01 | $ | (0.14 | ) | $ | (0.03 | ) | |||||
Weighted Average Shares: |
12,316,878 | 12,196,977 | 12,222,146 | 12,194,620 | ||||||||||||
Basic |
||||||||||||||||
Weighted Average Shares: |
||||||||||||||||
Diluted |
12,316,878 | 12,724,610 | 12,222,146 | 12,194,620 | ||||||||||||
5
(unaudited) | ||||||||
June 30, | September 30, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and equivalents |
$ | 8,654,064 | $ | 4,545,907 | ||||
Marketable securities |
25,109,521 | 30,967,007 | ||||||
Accounts receivable |
9,825,371 | 7,858,540 | ||||||
Inventories |
11,677,284 | 9,240,291 | ||||||
Prepaid expenses and other assets |
2,144,508 | 846,899 | ||||||
Deferred income tax |
837,073 | 872,849 | ||||||
Total current assets |
58,247,821 | 54,331,493 | ||||||
Property and equipment, net |
12,257,797 | 10,017,239 | ||||||
Deferred income tax |
1,300,739 | 1,175,052 | ||||||
Intangible assets, net |
11,057,185 | 5,580,726 | ||||||
Goodwill |
10,428,630 | 4,561,781 | ||||||
Total Assets |
$ | 93,292,172 | $ | 75,666,291 | ||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 3,215,743 | $ | 2,016,058 | ||||
Accrued expenses |
2,349,911 | 2,069,222 | ||||||
Short-term debt |
17,862,185 | 2,641,233 | ||||||
Total current liabilities |
23,427,839 | 6,726,513 | ||||||
Long-term liabilities |
1,670,516 | 46,327 | ||||||
Stockholders equity |
68,193,817 | 68,893,451 | ||||||
Total Liabilities and Stockholders Equity |
$ | 93,292,172 | $ | 75,666,291 | ||||
6
(unaudited) | (unaudited) | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP Sales as Reported |
$ | 14,280,558 | $ | 10,244,158 | $ | 38,079,563 | $ | 30,321,451 | ||||||||
Exchange rate as Reported |
1.63 | 1.49 | 1.60 | 1.56 | ||||||||||||
Constant Currency Sales |
$ | 14,280,558 | $ | 10,597,993 | $ | 38,079,563 | $ | 30,654,893 | ||||||||
(1) Exchange rate used for Constant Currency Purposes |
1.63 | 1.63 | 1.60 | 1.60 | ||||||||||||
Net Effect of Constant Currency Illustration |
$ | | $ | 353,835 | $ | | $ | 333,442 | ||||||||
(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 and the Euro to US Dollars. The rate represents the average exchange rate for
the respective three or nine month period. For fiscal 2011 there will be no rate variance from
the Euro to the US dollar. |
7
(unaudited) | (unaudited) | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP Net Income (Loss) as Reported |
$ | (294,000 | ) | $ | 95,000 | $ | (1,722,000 | ) | $ | (426,000 | ) | |||||
Diluted EPS as Reported |
$ | (0.02 | ) | $ | 0.01 | $ | (0.14 | ) | $ | (0.03 | ) | |||||
Adjustments for non-recurring unusual items: |
||||||||||||||||
Merger and acquisition costs for Laprolan (1) |
304,000 | | 695,000 | | ||||||||||||
Subtotal |
304,000 | | 695,000 | | ||||||||||||
Adjustments for recurring non-cash expenses: |
||||||||||||||||
Intangible amortization (2) |
195,000 | 129,000 | 518,000 | 387,000 | ||||||||||||
ASC 718 compensation expense (3) |
193,000 | 204,000 | 760,000 | 754,000 | ||||||||||||
Subtotal |
388,000 | 333,000 | 1,278,000 | 1,141,000 | ||||||||||||
Non-GAAP Net Income |
$ | 398,000 | $ | 428,000 | $ | 251,000 | $ | 715,000 | ||||||||
Non-GAAP Diluted EPS |
$ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.06 | ||||||||
Weighted Average Shares Diluted |
12,587,175 | 12,724,610 | 12,616,838 | 12,747,669 |
(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 acquisition of Laprolan from
Fornix N.V. Management believes these assets are appreciating. This adjustment adds back
amortization expense for the three and nine months ended June 30, 2011 and 2010 related to certain
intangibles. The gross amount of amortization expense for the three months ended June 30, 2011 and
2010 is $251,000 and $163,000 net of taxes of
$56,000 and $34,000 for net amounts of $195,000 and $129,000 respectively. The gross amount of
amortization expense for the nine months ended June 30, 2011 and 2010 is $665,000 and $489,000 net
of taxes of $147,000 and $102,000 for net amounts of $518,000 and $387,000 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 nine
months ended
June 30, 2011 and 2010. The gross amount of compensation expense for the three months ended June
30, 2011
and 2010 is $302,000 and $314,000 net of taxes of $109,000 and $110,000 for net amounts of $193,000
and
$204,000 respectively. The gross amount of compensation expense for the nine months ended June 30,
2011
and 2010 is $1,179,000 and $1,164,000 net of taxes of $419,000 and $410,000 for net amounts of
$760,000 and $754,000 respectively. |
8
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