EX-99.1 2 c04506exv99w1.htm PRESS RELEASE exv99w1
 

Exhibits 99.1
(ROCHESTER MEDICAL LOGO)    FOR RELEASE 3:00 P.M., C.D.T
April 19, 2006
 
Rochester Medical Reports Second Quarter Results
Stewartville, MN April 19, 2006
Rochester Medical Corporation (NASDAQ:ROCM) 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 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:
     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® 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.

 


 

Rochester Medical Corporation
Press Release — F06 Second Quarter
page 3 of 4
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  
 
           

 


 

Rochester Medical Corporation
Press Release — F06 Second Quarter
page 4 of 4
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