Retractable Technologies, Inc. Reports Results for the Year 2015
April 01 2016 - 12:27PM
Business Wire
Retractable Technologies, Inc. (NYSE MKT: RVP) reports the
following results of operations for the twelve months ended
December 31, 2015 and 2014, respectively.
Comparison of Year Ended December 31, 2015 and
Year Ended December 31, 2014
Domestic sales accounted for 77.9% and 80.1% of the revenues in
2015 and 2014, respectively. Domestic revenues decreased 16.7%
principally due to reduced flu demand. Domestic unit sales
decreased 17.6%. Domestic unit sales were 67.0% of total unit sales
for 2015. International revenues decreased from $6.9 million in
2014 to $6.5 million in 2015, primarily due to more restrictive
qualification requirements by the Company. Overall unit sales
decreased 11.9%. 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 sales decreased $3.3 million principally due to lower
volumes. Royalty expense decreased $251 thousand due to decreased
gross sales. Gross profit margins increased from 34.8% in 2014 to
35.8% in 2015.
Operating expenses decreased 2.9% from the prior year due to
decreased Medical Device Excise Taxes attributable to refunds,
lower compensation costs, and lower travel and entertainment
costs.
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 Sheet.
The loss from operations was $3.2 million in 2015 compared to an
operating loss of $2.2 million in 2014.
Earnings per share were positively affected by our acquisition
of 200,000 shares of IV Class B convertible preferred stock. This
preferred stock was purchased from a stockholder as of November 30,
2015. The shareholder was issued 728,000 shares of our Common Stock
as consideration and agreed to waive all unpaid dividends in
arrears associated with the tendered preferred stock, equaling $3.1
million. 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. As a result,
Basic earnings per share was $0.21 for 2015.
Cash flow from operations was a negative $3.3 million for 2015
due primarily to the loss from operations and changes in working
capital, namely increased inventories and other current assets,
mitigated by a decrease in Accounts receivable and an increase in
Accounts payable.
Further details concerning the results of operations as well as
other matters are available in the Company’s Form 10-K filed on
March 30, 2016 with the U.S. Securities and Exchange
Commission.
RTI 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. RTI's products are distributed by
various specialty and general line distributors.
For more information on RTI, 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 and
future Court decisions regarding current litigation; our ability to
maintain favorable third party manufacturing and 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 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 RTI's periodic
reports filed with the U.S. Securities and Exchange Commission.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160401005711/en/
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 Sep 2024 to Oct 2024
Retractable Technologies (AMEX:RVP)
Historical Stock Chart
From Oct 2023 to Oct 2024