Rochester Medical Corp. (ROCM, Financial) filed Quarterly Report for the period ended 2009-12-31.
Rochester Medical Corp. has a market cap of $142.7 million; its shares were traded at around $11.7 with and P/S ratio of 4.1. Rochester Medical Corp. had an annual average earning growth of 78.8% over the past 5 years.
As of December 31, 2009, we had $5.8 million in cash and cash equivalents, and $30.5 million invested in marketable securities. The marketable securities consist of $27.6 million invested in U.S. treasury bills and CDs and $2.9 million invested in a mutual fund investment. 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 $523,488 related to the mutual fund investment as a result of the recent fluctuations in the credit markets impacting the current market value. We consider this unrealized loss temporary as we have the intent and ability to hold this investment long enough to avoid realizing any significant loss.
Marketing and Selling. Marketing and selling expense primarily includes costs associated with base salary paid to sales and marketing personnel, sales commissions, and travel and advertising expense. Marketing and selling expense for the first quarter of fiscal 2010 increased 8% to $2,777,000 from $2,566,000 for the comparable quarter of last fiscal year. The increase in marketing and selling expense is primarily due to increased advertising expense of $80,000, increased sales and marketing personnel expenses of $67,000 and increases in travel expense of $33,000, as part of our strategic decision to increase investment in our sales and marketing programs. Marketing and selling expense as a percentage of net sales for the fiscal quarters ended December 31, 2009 and 2008 was 27% and 30%, respectively.
increase in general and administrative expense is primarily related to increases of $52,000 for audit related expenses and professional fees, $50,000 for personnel expenses, $46,000 for trademark registration fees, $42,000 for supplies, $39,000 for utilities expenses and $35,000 for project costs. General and administrative expense as a percentage of net sales for the fiscal quarters ended December 31, 2009 and 2008 was 17% and 16%, respectively.
During the three-month period ended December 31, 2009, we generated $117,000 of cash provided by operating activities compared to $469,000 of cash provided by operations during the comparable period of the prior fiscal year. Net cash from operating activities in the first quarter of fiscal 2010 primarily reflects a net loss before depreciation, amortization, stock based compensation and decreases in inventories and increases in income taxes payable offset by increases in accounts receivable and other current assets and decreases in other current liabilities. Other current assets during this period increased 37% or $397,000, primarily as a result of prepaid insurance premiums and prepaid income taxes on intercompany profits. Inventories decreased 5%, or $490,000, primarily as a result of increased sales in the current quarter. Accounts payable increased 4%, or $62,000 primarily reflecting timing of expenses related to quarter end. Other current liabilities decreased 36%, or $550,000, primarily reflecting payments of annual executive bonuses. Income tax payable increased $130,000 in the current quarter. In addition, capital expenditures during this period were $437,000 compared to $498,000 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 $2,004,271 on our balance sheet as of December 31, 2009.
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Rochester Medical Corp. has a market cap of $142.7 million; its shares were traded at around $11.7 with and P/S ratio of 4.1. Rochester Medical Corp. had an annual average earning growth of 78.8% over the past 5 years.
Highlight of Business Operations:
The following discussion pertains to our results of operations and financial position for the quarters ended December 31, 2009 and 2008. 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, 2009, we reported a net loss of $169,000, compared to net income of $54,000 for the same period last year. Loss from operations was $298,000 for the quarter ended December 31, 2009 compared to a loss from operations of $325,000 for the quarter ended December 31, 2008.As of December 31, 2009, we had $5.8 million in cash and cash equivalents, and $30.5 million invested in marketable securities. The marketable securities consist of $27.6 million invested in U.S. treasury bills and CDs and $2.9 million invested in a mutual fund investment. 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 $523,488 related to the mutual fund investment as a result of the recent fluctuations in the credit markets impacting the current market value. We consider this unrealized loss temporary as we have the intent and ability to hold this investment long enough to avoid realizing any significant loss.
Marketing and Selling. Marketing and selling expense primarily includes costs associated with base salary paid to sales and marketing personnel, sales commissions, and travel and advertising expense. Marketing and selling expense for the first quarter of fiscal 2010 increased 8% to $2,777,000 from $2,566,000 for the comparable quarter of last fiscal year. The increase in marketing and selling expense is primarily due to increased advertising expense of $80,000, increased sales and marketing personnel expenses of $67,000 and increases in travel expense of $33,000, as part of our strategic decision to increase investment in our sales and marketing programs. Marketing and selling expense as a percentage of net sales for the fiscal quarters ended December 31, 2009 and 2008 was 27% and 30%, respectively.
increase in general and administrative expense is primarily related to increases of $52,000 for audit related expenses and professional fees, $50,000 for personnel expenses, $46,000 for trademark registration fees, $42,000 for supplies, $39,000 for utilities expenses and $35,000 for project costs. General and administrative expense as a percentage of net sales for the fiscal quarters ended December 31, 2009 and 2008 was 17% and 16%, respectively.
During the three-month period ended December 31, 2009, we generated $117,000 of cash provided by operating activities compared to $469,000 of cash provided by operations during the comparable period of the prior fiscal year. Net cash from operating activities in the first quarter of fiscal 2010 primarily reflects a net loss before depreciation, amortization, stock based compensation and decreases in inventories and increases in income taxes payable offset by increases in accounts receivable and other current assets and decreases in other current liabilities. Other current assets during this period increased 37% or $397,000, primarily as a result of prepaid insurance premiums and prepaid income taxes on intercompany profits. Inventories decreased 5%, or $490,000, primarily as a result of increased sales in the current quarter. Accounts payable increased 4%, or $62,000 primarily reflecting timing of expenses related to quarter end. Other current liabilities decreased 36%, or $550,000, primarily reflecting payments of annual executive bonuses. Income tax payable increased $130,000 in the current quarter. In addition, capital expenditures during this period were $437,000 compared to $498,000 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 $2,004,271 on our balance sheet as of December 31, 2009.
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