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The UK also showed solid 17% growth on a constant currency basis. These solid gains were partially offset by soft sales from Laprolan and the rest of the Europe and Middle East. We expect Laprolan will take a little longer before showing good gains, while the rest of the EME should rebound nicely in Q4, since the shortfall was simply due to the timing of larger orders.Global private label also contributed positively to third quarter ’s growth with a 16% increase in sales. As you recall, this business fluctuates from quarter-to-quarter and is showing modest 5% growth year-to-date. We reported GAAP earnings of approximately $0.5 million or $0.04 per share and on a non-GAAP basis excluding certain non-cash expenses; we had net income of $838,000 or $0.07 per share. For the first nine-months of fiscal 2012, total sales are up 18% in constant currency and non-GAAP net income is $2.1 million or $0.17 a share. As stated, we expect a strong Q4 along with increasing top and bottom line strength in 2013. We are investigating potential business opportunities which may help strengthen our performance and we expect that in our Q4 report and conference call, we will be able to update and better quantify our 2013 expectations. Now, Dave will give you further details on the quarter. David Jonas Thanks, Jim. I ’m going to spend a few minutes highlighting the results reflected in third quarter 2012 earnings release issued last evening after the market close. For ease of 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 dampened our top line this quarter by approximately $425,000. As most of you have seen, the euro has weakened sharply in the last few months versus a year ago and two-thirds of the third quarter impact from the foreign currency was from the weakening of the euro. Our foreign exchange risk is limited to our sales in the UK and Holland. These sales currently makeup about 60% of our total company sales and fluctuations in these rates will have an impact on both our top and bottom line results.
Our three-year plan and projections for this year used a 1.37 exchange rate for the euro and a 1.5 rate for the pound. While the pound has hovered right around that number all years, the euro has fluctuated from 1.21 to 1.33 just in the last 120 days and now sits at 1.24. As Jim mentioned, total third quarter revenue increased 10% to %15.3 million versus $13.9 million a year ago driven by 9% growth in drug sales and an improvement of 16% in private label sales this quarter. For the first nine months of the year, revenues of $44.4 million grew 18% or $37.5 million in the comparable period.Total U.S. sales rose 28% to $5.6 million from $4.4 million in the prior year ’s quarter due to a combination of 34% growth in U.S. direct sales and 20% growth in U.S. private label sales. Outside of the U.S., total international sales rose 2% reflecting the challenges in Mainland Europe and the reimbursement environment in the Netherland. Direct sales increased a modest 1% with the UK business up a strong 17% offset by a 6% decline in the Netherlands and a 32% decline in the rest of the EME drive, private label increased 7%. Read the rest of this transcript for free on seekingalpha.com