Retractable Technologies, Inc. Reports Results of Operations
August 15 2013 - 3:21PM
Business Wire
Retractable Technologies, Inc. (NYSE MKT: RVP) reports the
following results of operations for the second quarter, and the
first half, of 2013:
Comparison of Three Months Ended June 30, 2013
and June 30, 2012
Domestic sales accounted for 69.0% and 77.9% of the revenues for
the three months ended June 30, 2013 and 2012, respectively.
Domestic revenues decreased 29.9% principally due to lower average
selling prices and lower volumes. Domestic unit sales decreased
18.7% due to decreased sales of the 1mL syringe. Domestic unit
sales were 55.6% of total unit sales for the three months ended
June 30, 2013. International revenue and unit sales increased 10.8%
and 15.6%, respectively, due to higher South American sales.
Overall unit sales decreased 6.3%.
Gross profit decreased 47.8% primarily due to lower average
domestic sales volume and lower domestic sales prices. The average
cost of manufactured product sold per unit increased by 3.5%
principally due to reducing capitalized cost of inventory. Gross
profit as a percentage of net sales was 25.2% in the three months
ended June 30, 2013 as compared to 38.2% in 2012 due to lower
average sales prices. 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.
Operating expenses increased 6.8% or $263 thousand. The
principal cause of the increase was the Medical Device Excise Tax
of $234 thousand.
Our operating loss was $2.4 million compared to an operating
loss for the same period last year of $532 thousand due primarily
to lower gross profit and higher operating expenses.
Our effective tax rate on the net loss before income taxes was
(0.1)% and (2.4)% for the three months ended June 30, 2013 and June
30, 2012, respectively.
Comparison of Six Months Ended June 30, 2013
and June 30, 2012
Domestic sales accounted for 74.6% and 79.1% of the revenues for
the six months ended June 30, 2013 and 2012, respectively. Domestic
revenues decreased 17.8% principally due to decreased average sales
prices and lower volumes. Domestic unit sales decreased 6.3% due to
lower sales of the 1mL and 3mL syringes. Domestic unit sales were
63.0% of total unit sales for the six months ended June 30, 2013.
International revenues and unit sales increased 6.0% and 5.9%,
respectively due to higher South American sales. Overall unit sales
decreased 2.1%.
Gross profit decreased 26.8% primarily due to lower average
domestic sales prices and lower domestic sales volume. The average
cost of manufactured product sold per unit decreased by 2.0% due to
higher production volumes. Gross profit as a percentage of net
sales was 32.1% in the six months ended June 30, 2013 as compared
to 38.2% in 2012 due to lower average sales prices. 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.
Operating expenses increased 12.5% or $920 thousand. The
increase in operating expense is due to the Medical Device Excise
Tax ($451 thousand), increased staffing in Sales and Marketing, and
legal fees for patents. The increase was mitigated by lower
litigation costs.
Our operating loss was $3.8 million compared to an operating
loss for the same period last year of $1.2 million due primarily to
lower sales volumes and higher unit costs as well as increased
operating expenses.
Our effective tax rate on the net loss before income taxes was
(0.1)% and (1.7)% for the six months ended June 30, 2013 and June
30, 2012, respectively.
Discussion of Balance Sheet and Statement of
Cash Flow Items
Our balance sheet remains strong with cash making up 46.9% of
total assets. Working capital was $23.3 million at June 30, 2013, a
decrease of $4.0 million from December 31, 2012.
Approximately $5.4 million in cash flow in the six months ended
June 30, 2013 was used by operating activities. Our cash balance
decreased primarily due to a combination of lower gross profit,
decreased accounts payable of $1.3 million, and increased accounts
receivable of $613 thousand, and an increase in inventories of $950
thousand. These working capital items tend to fluctuate from period
to period depending upon our timing of payments, the timing of
billing and cash receipts for those billings, and inventory
management for the upcoming period. Additional uses of cash include
our Repurchase of Common Stock for $446 thousand and preferred
stock dividends of $115 thousand.
We purchased 338,909 shares of our Common Stock pursuant to our
Common Stock repurchase plan in the six months ended June 30, 2013.
The average share price for our repurchases in the six months ended
June 30, 2013 was $1.25.
Retractable manufactures and markets VanishPoint® and Patient
Safe® safety medical products. 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. Retractable's products are distributed
by various specialty and general line distributors.
For more information on Retractable, visit our 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 our current views with
respect to future events. We believe that the expectations
reflected in such forward-looking statements are accurate. However,
we cannot assure you that such expectations will materialize. Our
actual future performance could differ materially from such
statements.
Factors that could cause or contribute to such differences
include, but are not limited to: our ability to maintain liquidity;
our maintenance of patent protection; the impact of current
litigation; our ability to maintain favorable supplier arrangements
and relationships; our ability to quickly increase capacity in
response to an increase in demand; our ability to access the
market; our ability to maintain or lower production costs; our
ability to continue to finance research and development as well as
operations and expansion of production; the increased interest 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.
Retractable Technologies, Inc.Douglas W. Cowan, 888-806-2626 or
972-294-1010Vice President and Chief Financial Officer
Retractable Technologies (AMEX:RVP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Retractable Technologies (AMEX:RVP)
Historical Stock Chart
From Jul 2023 to Jul 2024