Retractable Technologies, Inc. Reports Results For 2019
March 31 2020 - 1:29PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports the
following information relating to the year ended December 31, 2019.
Further details concerning the results of operations as well as
other matters are available in Retractable’s Form 10-K filed on
March 30, 2020 with the U.S. Securities and Exchange
Commission.
OPERATIONS
In 2019, we had income from operations of approximately $3
million, following several years of losses. Overall unit sales
increased 25%. Domestic revenues increased 11.3% principally due to
increased volumes, including sales of VanishPoint® products.
International revenues, excluding product licensing fees, increased
from $4.6 million in 2018 to $9.7 million in 2019, primarily due to
higher unit sales. Cost of manufactured product increased $4.1
million principally due to an increase in units sold. Gross profit
margins increased from 30.7% in 2018 to 33.8% in 2019 principally
due to an overall increase in sales. Operating expenses decreased
5.5% from the prior year due to cost cutting measures in the fourth
quarter of 2018. Cash flow from operations was $2.2 million in 2019
due to our net income for the year.
PATENT LIFE FOR VANISHPOINT®
SYRINGES
VanishPoint® syringe sales have historically comprised most of
our sales. VanishPoint® syringe sales were 89.9%, 84.9%, and 85.6%
of our revenues in 2017, 2018, and 2019. As we have previously
reported, several patents related to the VanishPoint® syringe
expired in 2020. However, we have made recent modifications to our
VanishPoint® syringes which will cause the modified VanishPoint®
syringe products to have later patent expiration dates than the old
design. Following the expiration of patents related to the old
design, we face a risk that competitors may attempt to copy aspects
of such prior design, but not the current design. Patents related
to recent modifications to the VanishPoint® syringes and core
technology of the VanishPoint® syringes will expire during the
years 2028 through 2032. Other patent applications covering
inventions applicable to the VanishPoint® syringes are pending. The
Company has other technology as well, including the EasyPoint®
needle, which made up 7.2% of revenues in 2019.
CORONAVIRUS (COVID-19)
In 2019, our Chinese manufacturers produced approximately 82.6%
of our products. As of today, we believe we have sufficient
inventory to fulfill demand despite having experienced a temporary
disruption in our supply of products from China due to the recent
coronavirus (COVID-19) precautions in that country. Our suppliers
in China have resumed production, and shipments of products from
China have been received. However, the situation surrounding the
pandemic and the effects on the world economy, public health across
the globe and U.S. businesses has been, and continues to be, a
fluid situation. We are continuing to monitor the situation,
including our outsourcing of products from China, the availability
of materials and other resources used in production in the United
States, the availability of necessary transportation of products
from our vendors and to our customers, available labor force needed
to continue operations, and the ability to meet the demand
requirements of our existing customers. These factors, and numerous
other factors which are not yet known, present challenges and
uncertainties which we cannot quantify at this time.
ABOUT RETRACTABLE
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, global pandemics, potential
tariffs, Retractable’s ability to maintain liquidity, maintenance
of patent protection, litigation, maintenance of 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, maintain or decrease production
costs, 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: https://www.businesswire.com/news/home/20200331005738/en/
Retractable Technologies, Inc. John W. Fort III, 888-806-2626 or
972-294-1010 Vice President and Chief Financial Officer
Retractable Technologies (AMEX:RVP)
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