Rochester Medical Corporation ( ROCM) F4Q 2011 Earnings Call November 3, 2011 4:30 PM ET Executives Jim Conway – Chairman, CEO and President David Jonas – CFO, Treasurer and Secretary Analysts Shaun Vincent [ph] – Feltl & Company Tyson Bauer – Wealth Monitors Larry Haimovitch – HMTC Presentation Operator
Previous Statements by ROCM
» Rochester Medical Discusses Q2 2011 Results -- Earnings Call Transcript
» Rochester Medical's CEO Discusses F2Q11 Results - Earning Call Transcript
» Rochester Medical Corp CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Rochester Medical CEO Discusses F4Q2010 Results - Earnings Call Transcript
Now, I am pleased to report that we achieved a solid fourth quarter on both the top line and bottom line with record sales and positive net income as we were anticipating. Total sales reached $14.8 million, up 33% over the last year on a reported basis and up 32% on a constant currency basis. This growth was driven by in constant currency rates 43% growth in global direct sales including our acquisition of Laprolan and 15% growth on an organic basis excluding the Laprolan’s contribution. Global private label sales were down 1%.In terms of GAAP earnings, we reported net income of approximately $407,000 and on a non-GAAP basis excluding certain non-cash expenses we reported income of $822,000. Today’s performance is on track with our expectations. These results are gratifying and are evidence of the solid progress we are making for growing revenues and improving profitability on a sustainable basis. I am encouraged by our performance in fiscal 2011 and optimistic about the future. Now let me turn over to Dave for further details on the quarter. David Jonas Thanks Jim. I’m going to spend a few minutes highlighting the results reflected in our just released fourth quarter 2011 earnings release. In this discussion, unless otherwise noted all sales information will be discussed in constant currency. I’m doing this to exclude the impact of foreign currency exchange in order to show a true reflection of our sales growth. Foreign currency added approximately $160,000 to top line results in the fourth quarter and added about $490,000 in the 12-month period. As Jim mentioned, total sales rose 32% in the fourth quarter including Laprolan to $14.8 million versus $11.3 million a year ago. Organic growth excluding Laprolan was approximately 11% for the fourth quarter and there is 11% organic growth consisted of 18% direct organic growth offset by a nearly flat private label quarter.
Total sales in the US increased 9% to $4.9 million from $4.5 million in the fourth quarter of 2010 driven by 30% growth in our US direct sales, somewhat offset by a 10% decline in our US private label business. Total sales outside of the US mainly in Europe and the Middle East region or EME grew 46% led by 48% growth in direct sales. This growth came from a combination of strong organic growth and from our Laprolan acquisition. International private label sales also improved, up 30% over the fourth quarter of 2010.Geographically 33% of our sales in the fourth quarter were in US with 67% of our sales outside the US compared to 41% and 59% last year respectively. This change is primarily driven by our April 1st acquisition of Laprolan based in the Netherlands. We are pleased with our performance, both domestically and abroad. Total sales for the fiscal year 2011 increased 28% on a reported basis to $52.9 million from $41.4 million in same period of last year. Foreign currency added 150 basis points with total sales growth in the period implying constant currency growth of 26.5%. Total fiscal year 2011 sales growth excluding the effects of foreign currency and our acquisition of Laprolan was 9%. Turning to direct sales, total global direct sales increased 43% year-over-year in the fourth quarter. Our US direct sales for the fourth quarter totaled $2.9 million versus $2.2 million last year or a gain of 29%. Our intermittent catheter line, which represents 48% of US direct sales in the fourth quarter, was 48% year-over-year in the fourth quarter. This growth was complemented by a 13% increase in male external catheters and 21% increase in Foley catheter sales. Read the rest of this transcript for free on seekingalpha.com