Retractable Technologies, Inc. Announces Results as of March 31, 2019
May 15 2019 - 5:23PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports the
following results of operations for the three months ended March
31, 2019 as compared to results for the same period in the prior
year.
Domestic sales accounted for 77.4% and 86.0% of our revenues for
the three months ended March 31, 2019 and 2018, respectively.
Domestic revenues decreased 6.9% principally due to lower volumes
and lower average selling prices. Domestic unit sales decreased
0.9%. Domestic unit sales were 69.1% of total unit sales for the
three months ended March 31, 2019. International unit sales and
revenues increased 45.3% and 66.6%, respectively, due to higher
volumes and higher average selling prices. Our international orders
may be subject to significant fluctuation over time. Overall unit
sales increased 9.9%.
Gross profit decreased 12.9% primarily due to higher cost of
manufactured product.
The average cost of manufactured products sold per unit
increased by 4.0% due to an increase in international units sold as
a percentage of total units. 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 5.3% due to increased
gross sales.
Operating expenses decreased 11.7% or $351 thousand. The
decrease was primarily due to a reduction in payroll costs as a
result of a workforce reduction in the fourth quarter of 2018.
Our operating loss was $175 thousand compared to an operating
loss of $157 thousand for the same period last year. The increase
was due primarily to the higher cost of manufactured products.
Cash comprises 11.9% of total assets. Working capital was $15.2
million at March 31, 2019, essentially unchanged from December 31,
2018.
Cash used by operations was $716 thousand for the three months
ended March 31, 2019 due primarily to a decrease in accounts
payable and other accrued liabilities, partially offset by a
decrease in accounts receivable.
Further details concerning the results of operations as well as
other matters are available in Retractable’s Form 10-Q filed on May
15, 2019 with the U.S. Securities and Exchange Commission.
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: 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 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 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/20190515006012/en/
Retractable Technologies, Inc.John W. Fort III, 888-806-2626 or
972-294-1010Vice President, Chief Financial Officer, and Chief
Accounting Officer
Retractable Technologies (AMEX:RVP)
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