Rochester Medical Corp. (ROCM, Financial) filed Quarterly Report for the period ended 2010-12-31.
Rochester Medical Corp. has a market cap of $127.4 million; its shares were traded at around $10.93 with and P/S ratio of 3.1. Hedge Fund Gurus that owns ROCM: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns ROCM: Mario Gabelli of GAMCO Investors.
As of December 31, 2010, we had $4.8 million in cash and cash equivalents, and $29.3 million invested in marketable securities. The marketable securities consist of $26.1 million invested in U.S. treasury bills and CDs and $3.2 million invested in a mutual fund. Our investments in marketable securities are subject to interest rate risk and the value thereof could be adversely affected due to movements in interest rates. Our investment choices, however, are conservative and are intended to reduce the risk of loss or any material impact on our financial condition. We are currently reporting an unrealized loss of $348,000 related to the mutual fund investment as a result of the recent fluctuations in the credit markets impacting the current market value. We currently consider this unrealized loss to be temporary.
Net Sales. Net sales for the first quarter of fiscal 2011 increased 7% to $10,946,000 from $10,232,000 for the comparable quarter of last fiscal year. The sales increase primarily resulted from an increase in both branded base and advanced products in the U.S. and internationally, offset by a decrease in sales of private label products. Domestic sales of branded products increased by 19% for the quarter compared to the same period last year. Our international branded sales increased 15% compared to the same period last fiscal year, partially offset by 3%, or $122,000, as a result of the change in foreign currency exchange rates in the United Kingdom as the U.S. dollar was somewhat stronger versus the pound sterling, thereby affecting total branded sales negatively given the significant volume of our branded product sales in the United Kingdom. Management believes these results demonstrate the favorable impact of our strategic decision to increase investments in sales and marketing programs for our Rochester Medical branded products, particularly for our advanced intermittent and Foley catheters, and which we believe will continue to drive growth in branded sales. Private label sales for the first quarter were down 11% from the comparable quarter of last fiscal year and continue to fluctuate on a quarterly basis, primarily due to timing of orders. Private label sales accounted for approximately 28% of total sales
Our cash, cash equivalents and marketable securities were $34.1 million at December 31, 2010 compared to $35.5 million at September 30, 2010. The decrease in cash primarily resulted from payments on debt and capital expenditures offset by cash provided from the sale of common stock upon exercise of options. As of December 31, 2010, we had $29.3 million invested in marketable securities. The marketable securities consist of $26.1 million invested in U.S. treasury bills and CDs and $3.2 million invested in a mutual fund. We are currently reporting an unrealized loss of $348,000 related to the mutual fund investment as a result of the recent fluctuations in the credit markets impacting the current market value. We currently consider this unrealized loss to be temporary.
During the three-month period ended December 31, 2010, we generated $204,000 of cash from operating activities compared to $117,000 of cash provided by operations during the comparable period of the prior fiscal year. The net cash from operating activities in the first three months of fiscal 2011 primarily reflects our net loss adjusted for non-cash items related to depreciation, amortization, and stock based compensation and decreases in accounts receivable offset by increases in inventories and other current assets, and decreases in accounts payable and other current liabilities. Accounts receivable during this period decreased 16% or $1,248,000, as a result of timing of payments on receivables. Inventories increased $307,000 or 3%, primarily as a result of increased sales in the current quarter. Other current assets during this period increased 69% or $588,000, primarily as a result of prepaid income taxes on intercompany profits and income taxes receivable related to our current quarter loss. Accounts payable decreased $20,000, primarily reflecting timing of expenses related to quarter end. Other current liabilities decreased 35% or $655,000, primarily reflecting payments of accrued wages and fiscal year end 2010 bonuses. In addition, capital expenditures during this period were $361,000 compared to $437,000 for the comparable period last year.
In June 2006, in conjunction with the asset purchase agreement with Coloplast, we entered into an unsecured loan note deed with Coloplast with an outstanding principal amount of $5,340,000. The promissory note is non-interest bearing payable and due in five equal installments of $1,068,000 payable annually on June 2. We have discounted the note at 6.90% and reflect a net liability of $1,036,366 on our balance sheet as of December 31, 2010. The final payment is due on or before June 2, 2011.
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Rochester Medical Corp. has a market cap of $127.4 million; its shares were traded at around $10.93 with and P/S ratio of 3.1. Hedge Fund Gurus that owns ROCM: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns ROCM: Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
The following discussion pertains to our results of operations and financial position for the quarters ended December 31, 2010 and 2009. Results of the periods are not necessarily indicative of the results to be expected for the complete year. For the first quarter ended December 31, 2010, we reported a net loss of $0.01 per diluted share, compared to a net loss of $0.01 per diluted share for the same period last year. Loss from operations was $465,000 for the quarter ended December 31, 2010 compared to a loss from operations of $298,000 for the quarter ended December 31, 2009, while net loss was $169,000 for each of the quarters ended December 31, 2010 and 2009.As of December 31, 2010, we had $4.8 million in cash and cash equivalents, and $29.3 million invested in marketable securities. The marketable securities consist of $26.1 million invested in U.S. treasury bills and CDs and $3.2 million invested in a mutual fund. Our investments in marketable securities are subject to interest rate risk and the value thereof could be adversely affected due to movements in interest rates. Our investment choices, however, are conservative and are intended to reduce the risk of loss or any material impact on our financial condition. We are currently reporting an unrealized loss of $348,000 related to the mutual fund investment as a result of the recent fluctuations in the credit markets impacting the current market value. We currently consider this unrealized loss to be temporary.
Net Sales. Net sales for the first quarter of fiscal 2011 increased 7% to $10,946,000 from $10,232,000 for the comparable quarter of last fiscal year. The sales increase primarily resulted from an increase in both branded base and advanced products in the U.S. and internationally, offset by a decrease in sales of private label products. Domestic sales of branded products increased by 19% for the quarter compared to the same period last year. Our international branded sales increased 15% compared to the same period last fiscal year, partially offset by 3%, or $122,000, as a result of the change in foreign currency exchange rates in the United Kingdom as the U.S. dollar was somewhat stronger versus the pound sterling, thereby affecting total branded sales negatively given the significant volume of our branded product sales in the United Kingdom. Management believes these results demonstrate the favorable impact of our strategic decision to increase investments in sales and marketing programs for our Rochester Medical branded products, particularly for our advanced intermittent and Foley catheters, and which we believe will continue to drive growth in branded sales. Private label sales for the first quarter were down 11% from the comparable quarter of last fiscal year and continue to fluctuate on a quarterly basis, primarily due to timing of orders. Private label sales accounted for approximately 28% of total sales
Our cash, cash equivalents and marketable securities were $34.1 million at December 31, 2010 compared to $35.5 million at September 30, 2010. The decrease in cash primarily resulted from payments on debt and capital expenditures offset by cash provided from the sale of common stock upon exercise of options. As of December 31, 2010, we had $29.3 million invested in marketable securities. The marketable securities consist of $26.1 million invested in U.S. treasury bills and CDs and $3.2 million invested in a mutual fund. We are currently reporting an unrealized loss of $348,000 related to the mutual fund investment as a result of the recent fluctuations in the credit markets impacting the current market value. We currently consider this unrealized loss to be temporary.
During the three-month period ended December 31, 2010, we generated $204,000 of cash from operating activities compared to $117,000 of cash provided by operations during the comparable period of the prior fiscal year. The net cash from operating activities in the first three months of fiscal 2011 primarily reflects our net loss adjusted for non-cash items related to depreciation, amortization, and stock based compensation and decreases in accounts receivable offset by increases in inventories and other current assets, and decreases in accounts payable and other current liabilities. Accounts receivable during this period decreased 16% or $1,248,000, as a result of timing of payments on receivables. Inventories increased $307,000 or 3%, primarily as a result of increased sales in the current quarter. Other current assets during this period increased 69% or $588,000, primarily as a result of prepaid income taxes on intercompany profits and income taxes receivable related to our current quarter loss. Accounts payable decreased $20,000, primarily reflecting timing of expenses related to quarter end. Other current liabilities decreased 35% or $655,000, primarily reflecting payments of accrued wages and fiscal year end 2010 bonuses. In addition, capital expenditures during this period were $361,000 compared to $437,000 for the comparable period last year.
In June 2006, in conjunction with the asset purchase agreement with Coloplast, we entered into an unsecured loan note deed with Coloplast with an outstanding principal amount of $5,340,000. The promissory note is non-interest bearing payable and due in five equal installments of $1,068,000 payable annually on June 2. We have discounted the note at 6.90% and reflect a net liability of $1,036,366 on our balance sheet as of December 31, 2010. The final payment is due on or before June 2, 2011.
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