Retractable Technologies, Inc. Reports Results For 2020
April 01 2021 - 11:23AM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports the
following information relating to the year ended December 31, 2020.
Further details concerning the results of operations as well as
other matters are available in Retractable’s Form 10-K filed on
March 31, 2021 with the U.S. Securities and Exchange
Commission.
OPERATIONS
As our syringes are used for vaccinations, our revenues for 2020
materially increased over prior years due to demand during the
COVID-19 pandemic. In 2020, we had income from operations of
approximately $24 million, as compared to approximately $3 million
last year. Overall unit sales increased 74%. Our principal customer
was the U.S. government which purchased products representing 39%
($32 million) of our revenues in 2020. Domestic revenues, including
sales to the U.S. government, increased 131% principally due to
increased volumes. International revenues decreased 19%,
representing a return to normal levels after higher volumes in
2019. Cost of manufactured product increased 63% principally due to
an increase in units sold. Operating expenses increased 16% from
the prior year due substantially to increased headcount and other
employee-related expenses. Cash flow from operations was
approximately $19 million in 2020 as compared to $2 million in 2019
principally due to our net income for the year.
RECENT CONTRACTS WITH U.S.
GOVERNMENT
In 2020, the U.S. government was a significant customer due to
efforts to vaccinate the U.S. population against COVID-19. On May
1, 2020, we received an order from the Department of Health and
Human Services to supply certain automated safety syringes through
May 2021 for approximately $84 million (the “HHS Order”), plus $10
million in expedited freight costs. In February 2021, we received a
new contract from the Department of Health and Human Services for
additional safety syringes representing approximately $54 million
in expected revenues and reimbursable freight costs for a
five-month base period of performance (February 15, 2021 to July
14, 2021) with additional renewal periods available at the option
of the U.S. government.
In July 2020, we entered into the Technology Investment
Agreement (“TIA”) with the U.S. government for approximately $54
million in government funding for expanding our domestic production
of needles and syringes. Pursuant to the terms of the TIA, we are
expecting to make significant additions to our facilities which
should allow us to increase domestic production.
During 2020 and through March 2021, we have timely completed our
delivery obligations under the HHS Order and we are on schedule to
complete the planned expansion to our facilities within the second
quarter of 2021.
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: the impact of COVID-19 on all
facets of logistics and operations, as well as costs, Retractable’s
ability to complete capital improvements and ramp up domestic
production in response to government agreements, potential tariffs,
Retractable's ability to maintain liquidity; Retractable's
maintenance of patent protection; Retractable's ability to maintain
favorable third party manufacturing and supplier arrangements and
relationships; foreign trade risk; Retractable's ability to access
the market; production costs; the impact of larger market players
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/20210401005657/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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