Retractable Technologies, Inc. Reports $23.4 Million in Operating Income for First Quarter Of 2021
May 17 2021 - 4:48PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports that
its operating income was $23.4 million in the first quarter of
2021, compared to operating income for the same period last year of
$481 thousand. In comparison, the annual operating income for the
prior two years was $24.1 million in 2020 and $3.0 million in 2019.
During the first quarter of 2021, sales to the U.S. government were
$37.8 million, representing 75.5% of the $50.1 million in first
quarter revenues.
Additionally, Retractable disclosed in its Form 10-Q filed on
May 17, 2021 that its promissory note pursuant to the Paycheck
Protection Program was recently forgiven for the entire original
principal amount of $1,363,000.
Retractable also reports the following results of operations for
the three months ended March 31, 2021 and March 31, 2020,
respectively.
Comparison of Three Months Ended March 31,
2021 and March 31, 2020
Domestic sales, including sales to the U.S. government,
accounted for 97.3% and 74.4% of the revenues for the three months
ended March 31, 2021 and 2020, respectively. Domestic revenues
increased 484.7% principally due to increased volumes primarily
attributable to orders from the U.S. government. Domestic unit
sales increased 460.8%. Domestic unit sales were 95.6% of total
unit sales for the three months ended March 31, 2021. Domestic unit
sales excluding the U.S. government rose approximately 43.6%.
International revenues decreased approximately $1.5 million.
International orders may be subject to significant fluctuation over
time and may not be reflective of the full year’s sales. Overall
unit sales increased 282.6%. Other than the U.S. government, the
increased sales are predominantly attributable to existing
customers as well as several new smaller customers who do not
operate as distributors.
Cost of manufactured product increased 181.6% principally due to
an increase in units sold. Royalty expense increased 236.2% due to
increased gross sales.
As of March 31, 2021, Retractable employed approximately 210
full-time, part-time, and temporary employees. This represents
approximately a 40% increase in its workforce since March 2020.
Operating expenses increased 50.0% from the prior year due
substantially to increased headcount and other employee-related
expenses and consulting expenses attributable to a larger volume of
orders and the expansion activities required by the Technology
Investment Agreement. Included in the increased employee expenses
were bonuses and retroactive salary increases for the named
executive officers of approximately $650,000. Sales and marketing
expenses, however, decreased due to less travel and entertainment
expense during the COVID-19 pandemic and some loss of sales
personnel.
Interest and other income increased $1.3 million for the quarter
ended March 31, 2021 compared to the same period last year
principally due to unrealized gains from investments. Interest
expense for the first quarter of 2021 increased by approximately
$31,000 from the same period in the prior year.
Further details concerning the results of operations as well as
other matters are available in Retractable's Form 10-Q filed on May
17, 2021 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: the impact of COVID-19 on all
facets of logistics and operations, as well as costs, Retractable’s
ability to complete capital improvements and ramp up domestic
production in response to government agreements, 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 access
the market; production costs; 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/20210517005926/en/
Retractable Technologies, Inc. John W. Fort III, 888-806-2626 or
972-294-1010 Vice President, Chief Financial Officer, and Chief
Accounting Officer
Retractable Technologies (AMEX:RVP)
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