Retractable Technologies, Inc. Reports Operating Income and Increased Sales for First Quarter Of 2020
May 18 2020 - 12:08PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports that
its operating income was $481 thousand in the first quarter of
2020, compared to an operating loss for the same period last year
of $175 thousand, and that overall unit sales for the first quarter
of 2020 increased 39.2% over same period in the prior year.
Retractable also reports that future periods may be materially
affected by the previously-disclosed $83.8 million delivery order
under a 2018 contract with the U.S. Department of Health and Human
Services. Retractable expects to increase both domestic and foreign
production and add additional personnel in response to the delivery
order. Retractable expects to perform under this delivery order
during 2020 and a portion of 2021. Retractable expects that the
order relates to the novel coronavirus pandemic.
While Retractable cannot predict the effect of the novel
coronavirus on future periods (other than sales to the U.S.
Department of Health and Human Services), it reports that it does
not believe that the virus had a material effect on sales in the
first quarter of 2020.
Retractable also reports the following results of operations for
the three months ended March 31, 2020 and March 31, 2019,
respectively.
Comparison of Three Months Ended March 31,
2020 and March 31, 2019
Domestic sales accounted for 74.4% and 77.4% of our revenues for
the three months ended March 31, 2020 and 2019, respectively.
Domestic revenues increased 35.8% principally due to increased
volumes. Domestic unit sales increased 31.4%. Domestic unit sales
were 65.2% of total unit sales for the three months ended March 31,
2020. International unit sales and revenues increased 56.8% and
59.9%, respectively, due to higher unit sales. Our international
orders may be subject to significant fluctuation over time. Overall
unit sales increased 39.2%.
Gross profit increased 41.8% primarily due to higher unit sales
volumes and average unit pricing.
The cost of manufactured products sold increased by 42.4% due to
an increase in overall units sold and the composition of product
mix. Royalty expense increased 30.6% due to increased gross
sales.
Operating expenses increased 14.4% or $385 thousand. The
increase was primarily due to payroll and employee-related costs,
including health insurance benefits.
Operating income was $481 thousand compared to an operating loss
of $175 thousand for the same period last year. The increase was
due primarily to an increase in sales.
Further details concerning the results of operations as well as
other matters are available in Retractable's Form 10-Q filed on May
15, 2020 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: global pandemics, 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/20200518005589/en/
Retractable Technologies, Inc. John W. Fort III, 888-806-2626 or
972-294-1010 Vice President, Chief Financial Officer, and Chief
Accounting Officer
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