Rochester Medical Corporation (ROCM) Q4 2010 Earnings Call November 4, 2010 04:30 pm ET Executives Anthony Conway - CEO David Jonas - Chief Financial Officer Analysts Peter Sullivan - Private Invesetor Tyson Bauer - Wealth Monitors Ernie Andberg - Feltl and Company Beth Lilly - Gabelli Presentation Operator
First, let me review the results as reported in the press release. We reported record sales of $11,121,000 for the current quarter compared to $9,009,000 for the fourth quarter of last year. That's a very nice 26% increase in overall sales on a constant currency basis. Rochester Medical branded sales rose a strong 31% on a constant currency basis.For the full fiscal year we grew at a solid 19% in overall sales with strong growth of 28% in branded sales. The branded growth continues to be led by sales of our all-silicone Magic3 and HydroSil, layered hydrophilic intermittent catheters and also our new Strata brand Foley catheters. We still have only very small market share with these products and we expect excellent growth going forward. Script-easy sales in the UK are also growing nicely. These consist primarily of competitive products, which we ship directly to patients under our Script-easy brand prescriptions. We are still working with HHS to get fence off reimbursement rate resolved and we hope to have final reimbursement based on retail prices established in the near term. As we said last quarter, it is still too early to predict the market potential for the device but we are far enough along to have confidence in the FemSoft as a viable and integral addition to our product lines, both in the United States and in the United Kingdom. We are also in discussion with interested potential distributors in other countries. Now let me turn it over to Dave and he will give you further insight into the numbers and then we'll talk more about our plans going forward. Dave? David Jonas Thanks, Jim. I'm going to spend a few minutes highlighting the results reflected in our just-released fourth quarter and fiscal year and 2010 earnings release, our record sales. For ease of discussion, unless otherwise noted, all sales information will be discussed in constant currency. I am doing this to exclude the impact of foreign currency exchange which will show a true reflection of our sales growth.
As Jim explained, our sales results for the fourth quarter showed very good overall growth, especially in our key branded markets in the US, UK and the rest of Europe. As we have discussed the last couple of years, we are focused on and continue to increase our investments and activity in our worldwide brand sales. This has been done for many reasons, including better market access, changing reimbursement rules and increased clinical demand for infection reducing in all silicone, non-latex and non-PVC devices.We have called this our investment and growth strategy and results have been positive. These investments and focus fueled the growth in our worldwide branded sales which were a record $8.2 million this quarter versus $6.2 million last year, an increase of 31% for the fourth quarter. For fiscal 2010, our worldwide branded sales were a record $29.8 million versus $23.2 million last year, the $6.6 million in growth equating to a very strong increase of 28%. In Q4 we continued to show strong, solid growth in all of our products including 33% growth in worldwide intermittent sales, a 27% increase in worldwide Foley sales and a 19% increase in male external catheter sales. Our branded sales accounted for 72.7% of our total sales in the fourth quarter and ended the year at 71.8%. Let me first discuss our domestic branded sales in more detail and then our international branded sales. In total, our domestic branded sales for the fourth quarter were $2.24 million versus $1.98 million last year, a 13% increase from last year's fourth quarter. For the year, our domestic branded sales are up 23.4%. Domestically, our advanced intermittent catheter sales grew 16% in the fourth quarter and are now up 33% year to date. Read the rest of this transcript for free on seekingalpha.com