Retractable Technologies, Inc. (NYSE MKT: RVP) reports the following
results of operations for the three months ended March 31, 2015 and
2014, respectively.
Comparison of Three Months Ended March 31, 2015 and March 31, 2014
Domestic sales accounted for 94.4% and 82.0% of the revenues for the
three months ended March 31, 2015 and 2014, respectively. Domestic
revenues increased 17.9% principally due to higher volumes from existing
customers. Domestic unit sales increased 13.4%. Domestic unit sales were
91.8% of total unit sales for the three months ended March 31, 2015.
International unit sales and revenues decreased 60.8% and 68.4%,
respectively. Our international orders may be subject to significant
fluctuation over time. Overall unit sales decreased 1.8%.
Gross profit increased 39.2% primarily due to lower cost of manufactured
products sold per unit and also due to higher domestic sales and higher
average sales prices, mitigated by lower international sales.
The average cost of manufactured products sold per unit decreased by
13.1% due to a change in the product mix. 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 4.4% due to increased gross
sales.
Operating expenses decreased 11.3% or $420 thousand. The decrease was
primarily due to lower compensation costs, lower legal costs, and
mitigated by additional bad debt expense.
Our operating loss was $895 thousand compared to an operating loss for
the same period last year of $2.0 million due primarily to higher gross
profit and reduced expenses.
Our effective tax rate on the net loss before income taxes was (0.2)%
and (0.1)% for the three months ended March 31, 2015 and March 31, 2014,
respectively.
Discussion of Balance Sheet and Statement of Cash Flows
Our balance sheet remains strong with cash making up 52.0% of total
assets. Working capital was $17.9 million at March 31, 2015, a decrease
of $1.2 million from December 31, 2014.
Approximately $556 thousand in cash flow in the three months ended
March 31, 2015 was provided by operating activities.
Further details concerning the results of operations as well as other
matters are available in the Company’s Form 10-Q filed on May 15, 2015
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.
Copyright Business Wire 2015