Retractable Technologies, Inc. Reports Results for the Year 2016
April 03 2017 - 12:41PM
Business Wire
Retractable Technologies, Inc. (NYSE MKT: RVP) reports the
following results of operations for the twelve months ended
December 31, 2016 and 2015, respectively.
Domestic sales accounted for 88.2% and 77.9% of the revenues in
2016 and 2015, respectively. Domestic revenues increased 14.2%
principally due to sales of our 1 mL syringe and EasyPoint®
needles. Domestic unit sales increased 15.6%. Domestic unit sales
were 83.3% of total unit sales for 2016. International revenues
decreased from $6.5 million in 2015 to $3.5 million in 2016,
primarily due to fluctuation in the timing of orders. Overall unit
sales decreased 7.0%. Our international orders may be subject to
significant fluctuation over time. Such orders may fluctuate due to
health initiatives at various times as well as economic
conditions.
Cost of manufactured product increased $448 thousand principally
due to higher manufacturing costs. Royalty expense increased $50
thousand due to increased gross sales. Gross profit margins
decreased from 35.8% in 2015 to 34.7% in 2016.
Operating expenses increased 0.6% from the prior year due to an
impairment charge of $456 thousand, stock option expense,
consulting costs, and 401(k) plan matching expense. The impairment
charge of $456 thousand was related to Patient Safe® assembly
equipment. These expenses were largely offset by decreases in the
Medical Device Excise tax of $360 thousand, severance pay,
professional fees, and bonus pay.
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 2015 income. Recognizing this payment
also significantly decreased 2015 current liabilities on the
Balance Sheets.
The loss from operations was $3.2 million in 2015 compared to an
operating loss of $3.6 million in 2016.
In 2015, earnings per share was positively affected by our
acquisition of 200,000 shares of IV Class B convertible preferred
stock. Under the guidelines of ASC 260-10-S99-2, Effect on the
Calculation of Earnings per Share for the Redemption or Induced
Conversion of Preferred Stock, we reflected the gain on
extinguishment of this preferred stock in net income per common
stockholder used to calculate earnings per share. This accounting
treatment had the effect of increasing the income applicable to
common shareholders by $2.3 million in 2015 which had a material
effect on the determination of earnings per share for that
year.
Cash flow from operations was a negative $795 thousand for 2016
due to our Net loss, mitigated by noncash expense consisting
principally of Depreciation, Impairment of assets, Share based
compensation, and reduced working capital.
Further details concerning the results of operations as well as
other matters are available in Retractable's Form 10-K filed on
March 31, 2017 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 prefilled 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.retractable.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; foreign
trade risk; 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/20170403006192/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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