Retractable Technologies, Inc. Reports Results as of September 30, 2016
November 14 2016 - 4:31PM
Business Wire
Retractable Technologies, Inc. (NYSE MKT: RVP) reports the
following results for the three months and nine months ended
September 30, 2016 and 2015, respectively.
Comparison of Three Months Ended September 30,
2016 and September 30, 2015
Domestic sales accounted for 82.6% and 64.9% of the revenues for
the three months ended September 30, 2016 and 2015, respectively.
Domestic revenues increased 18.7% principally due to higher average
prices and higher volumes. Domestic unit sales increased 9.3%.
Domestic unit sales were 72.8% of total unit sales for the three
months ended September 30, 2016. International revenue and unit
sales decreased 55.4% and 53.8%, respectively, due to lower
volumes. Our international orders may be subject to significant
fluctuation over time. Overall unit sales decreased 21.6%.
The Cost of manufactured product decreased by 10.7% due to lower
volumes mitigated by higher unit cost. Royalty expense decreased
11.7% due to lower gross revenues. Gross profit increased 1.1%
primarily due to higher average prices.
Operating expenses decreased $82 thousand. The decrease was
primarily due to the suspension of the medical device excise tax
and lower professional fees, mitigated by higher compensation and
travel costs.
Our operating loss was $81 thousand compared to a loss from
operations of $199 thousand for the same period last year due
primarily to slightly higher gross profit and reduced operating
expenses.
Our effective tax rate on the net earnings (loss) before income
taxes was (0.4)% and (0.8)% for the three months ended September
30, 2016 and September 30, 2015, respectively.
Comparison of Nine Months Ended September 30,
2016 and September 30, 2015
Domestic sales accounted for 88.4% and 77.9% of the revenues for
the nine months ended September 30, 2016 and 2015, respectively.
Domestic revenues increased 13.4% principally due to higher sales
volume and somewhat lower average prices. Domestic unit sales
increased 15.6%. Domestic unit sales were 83.0% of total unit sales
for the nine months ended September 30, 2016. International revenue
and unit sales decreased 47.8% and 53.3%, respectively, due to
lower sales volumes and was somewhat offset by higher average sales
prices. Our international orders may be subject to significant
fluctuation over time. Overall unit sales decreased 7.5%.
The Cost of manufactured product increased by 0.8% principally
due to higher unit costs offset by lower volumes. Profit margins
can fluctuate depending upon, among other things, the cost of
manufactured product and the capitalized cost of product recorded
in inventory, as well as product sales mix. Royalty expense
increased 1.2% due to higher gross revenues. Rebates have a
significant impact on the ratio of gross sales to net sales.
Gross profit decreased 1.9% primarily due to higher cost of
manufacturing and slightly lower revenues.
Operating expenses decreased 8.6%. The decrease was due to
suspension of the medical device excise tax, reduced donations of
product, severance benefits not incurred in 2016, and lower bad
debt accruals.
A non-recurring recognition of $7,724,826 received from BD in
the second quarter of 2015 pursuant to a patent infringement case
had a significant impact on income for the nine months ended
September 30, 2015.
Our operating loss was $1.6 million compared to an operating
loss for the same period last year of $2.3 million due primarily to
lower operating expenses.
Our effective tax rate on the net earnings (loss) before income
taxes was (0.1)% and 0.1% for the nine months ended September 30,
2016 and September 30, 2015, respectively.
Cash makes up 37.5% of total assets. Working capital was $20.6
million at September 30, 2016, a decrease of $2.2 million from
December 31, 2015. Approximately $1.6 million in cash flow in the
nine months ended September 30, 2016 was used by operating
activities.
Further details concerning the results of operations as well as
other matters are available in Retractable's Form 10-Q filed on
November 14, 2016 with the U.S. Securities and Exchange
Commission.
Retractable manufactures and markets VanishPoint® and Patient
Safe® safety medical products and the EasyPoint® needle. The
VanishPoint® syringe, blood collection, and IV catheter products
are designed to prevent needlestick injuries and product reuse by
retracting the needle directly from the patient, effectively
reducing exposure to the contaminated needle. Patient Safe®
syringes are uniquely designed to reduce the risk of bloodstream
infections resulting from catheter hub contamination. The
EasyPoint® is a retractable needle that can be used with luer lock
syringes, luer slip syringes, and prefill syringes to give
injections. The EasyPoint® needle also can be used to aspirate
fluids and for blood collection. Retractable's products are
distributed by various specialty and general line distributors.
For more information on Retractable, visit its website at
www.vanishpoint.com.
Forward-looking statements in this press release are made
pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995 and reflect Retractable's current
views with respect to future events. Retractable believes that the
expectations reflected in such forward-looking statements are
accurate. However, Retractable cannot assure you that such
expectations will materialize. Actual future performance could
differ materially from such statements.
Factors that could cause or contribute to such differences
include, but are not limited to: Retractable's ability to maintain
liquidity; Retractable's maintenance of patent protection; the
impact of current and future Court decisions regarding current
litigation; Retractable's ability to maintain favorable third party
manufacturing and supplier arrangements and relationships;
Retractable's ability to quickly increase capacity in response to
an increase in demand; Retractable's ability to access the market;
Retractable's ability to maintain or lower production costs;
Retractable's ability to continue to finance research and
development as well as operations and expansion of production; the
impact of larger market players, specifically Becton, Dickinson and
Company, in providing devices to the safety market; and other risks
and uncertainties that are detailed from time to time in
Retractable's periodic reports filed with the U.S. Securities and
Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20161114006566/en/
Retractable Technologies, Inc.Douglas W. Cowan, 888-806-2626 or
972-294-1010Vice President and Chief Financial Officer
Retractable Technologies (AMEX:RVP)
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