STEWARTVILLE, Minn., Nov. 5 /PRNewswire-FirstCall/ -- Rochester Medical Corporation today announced operating results for its fourth quarter and year ended September 30, 2009.
The approximate 5% decrease in sales (.6% decrease on a constant currency basis) resulted from a 2% increase in Rochester Medical Branded Sales (10% increase on a constant currency basis), offset by a 20% decrease in Private Label Sales (20% decrease on a constant currency basis). Constant currency basis assumes current exchange rates for all periods in order to exclude the impact of foreign exchange variations. In the fourth quarter of 2009 the U.S. dollar was significantly stronger versus the pound sterling, thus negatively affecting Rochester Medical Branded Sales levels in translated U.S. dollars given the significant volume of branded product sales in the United Kingdom.
For the fiscal year ended September 30, 2009, the Company reported sales of $34,799,000 compared to sales of $35,192,000 for the previous year. It reported net income for the year of $109,000 or $.01 per diluted share compared to net income of $759,000 or $.06 per diluted share for the previous year. The approximate 1% decrease in annual sales (7% increase on a constancy currency basis) resulted from a 2% decrease in Rochester Medical Branded Sales (10% increase on a constant currency basis) partially offset by a 2% increase in Private Label Sales (2% increase on a constant currency basis).
Rochester Medical also announced that a device reimbursement code has been issued this week by Medicare covering the Company’s FemSoft Insert, which is a soft disposable device used to manage female stress urinary incontinence. The Company believes the availability of Medicare reimbursement, which commences in 2010, will help this unique device become an economically accessible and often preferred solution for incontinent women in the U.S.
“Regarding the quarterly results, I think it is particularly important to highlight our progress in the U.S. and U.K., the areas of our direct sales and marketing focus. Combined fourth quarter sales of all Rochester Medical Branded products in those markets were up a solid 15% on a constant currency basis compared to the same period of the prior year. In those same combined markets on a constant currency basis, sales of Intermittent Catheters rose an impressive 46%, and Foley Catheter sales were up strongly with a 68% increase. These two product lines are our current growth drivers and, along with the FemSoft Insert, are expected to be the primary growth drivers in 2010 and beyond. The 20% drop in Private Label Sales is strictly due to timing of orders which causes the quarterly up and down fluctuations.” To that point Conway noted Private Label Sales were up 42% in the third quarter and for the year were up 2%.
“Looking ahead, given the new Strata product line, the recently introduced MAGIC3(TM) Intermittent Catheter line, the just announced National Healthcare System reimbursement for the FemSoft female incontinence insert in the U.K., and the Medicare final reimbursement approval announced today for FemSoft in the U.S., 2010 promises to be a very interesting and active year for Rochester Medical.”
Non-GAAP Net Income and constant currency are not measures 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 and constant currency are not comparable to information provided by other companies. Non-GAAP Net Income and constant currency have limitations as analytical tools 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, and reconciliations of sales under GAAP and sales on a constant currency basis, are presented at the end of this press release.
The Company will hold a quarterly conference call to discuss its earnings report. The call will begin at 3:30 p.m. central time (4:30 p.m. eastern time).
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.
Rochester Medical Corporation
