Retractable Technologies, Inc. Announces Results as of March 31, 2018; Operating Loss Declined by 86.4%
May 15 2018 - 4:13PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports the
following results of operations for the three months ended March
31, 2018 as compared to results for the same period in the prior
year. The operating loss for the first quarter of 2018 decreased
from $1.152 million to $157 thousand, a decrease of $995 thousand,
or 86.4%.
Domestic sales accounted for 86.0% and 85.9% of our revenues for
the three months ended March 31, 2018 and 2017, respectively.
Domestic revenues increased 10.9% principally due to higher volumes
and a higher average selling price. Domestic unit sales increased
9.0%. Domestic unit sales were 76.6% of total unit sales for the
three months ended March 31, 2018. International unit sales
and revenues increased 56.8% and 10.2%, respectively, due to higher
unit sales mitigated by lower average selling prices. Our
international orders may be subject to significant fluctuation over
time. Overall unit sales increased 17.3%.
Gross profit increased 23.0% primarily due to higher sales
volume.
The average cost of manufactured products sold per unit
decreased by 11.2% due to higher unit production. 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. Royalty expense
increased 7.5% due to increased gross sales.
Operating expenses decreased 13.2% or $461 thousand. The
decrease was primarily due to bonuses paid in 2017, reduced
litigation costs, and no stock option expense incurred in 2018.
Cash comprises 40.6% of total assets. Working capital was $18.5
million at March 31, 2018, a decrease of $173 thousand from
December 31, 2017.
Cash flow provided by operations was $459 thousand for the three
months ended March 31, 2018 due primarily to collection of
accounts receivable outstanding at the end of the year, mitigated
by increased inventory and payment of accounts payable.
Further details concerning the results of operations as well as
other matters are available in Retractable's Form 10-Q filed on May
15, 2018 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: potential tariffs; 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: https://www.businesswire.com/news/home/20180515006648/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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