- Net Sales for the Quarter Ended September 30, 2018 Increased 18.1% Over the Same Period Last
Year
- Gross Profit Increased 21.6% Over Third Quarter 2017 to $2.9 Million, or 63.6% of Net Sales
- Net Income Increased 45% Over Third Quarter 2017 to $386,553, or 8.5% of Net Sales
- Conference Call to Discuss Results October 24, 2018 at 9:00 am EST
CHESTER, NY / ACCESSWIRE / October 23, 2018 / Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR)
today announced financial results for the third quarter ended September 30, 2018.
Net sales grew to $4.5 million, an 18.1% increase over the third quarter of 2017. The increase in net sales was driven by market
expansion and gains in needle sets, tubing and pump sales.
Gross Profit grew to $2.9 million, or 63.6% of net sales, a 21.6% increase over third quarter 2017 Gross Profit of $2.4 million,
or 61.8% of net sales. The increase in Gross Profit was mostly driven by the increase in net sales and operating efficiencies.
Selling, General and Administrative expenses and Research and Development costs for the third quarter of 2018 totaled $2.3
million, or 51.3% of net sales, compared to $1.9 million, or 49.6% of net sales during the third quarter of 2017. The increase was
driven by higher legal fees related to the previously disclosed litigation with EMED and matters now under the purview of the
Special Committee of the Board, and higher Research and Development and Regulatory expenditures as we invest in product development
efforts. These increases were partially offset by lower salary and related benefit expenses, however, we are actively seeking to
add talent to our Product Development and Commercial teams and these expenses may increase in the future.
Net income for the period increased to $386,553, or 8.5% of net sales, an increase of 45% compared with $265,754, or 6.9% of net
sales, reported during the third quarter of 2017. Higher net sales, improved gross margin and the impact of the new lower income
tax rate were contributors to the increase in net income.
''The third quarter saw continued momentum from the positive trends in home use of Subcutaneous Immunoglobulin Therapy driving
the growth of RMS Medical Products,'' stated Dan Goldberger, Chairman and interim CEO. ''We are thrilled to have Don Pettigrew, an
experienced infusion industry executive, as our new President and Chief Commercial Officer. Don is leading our strategic planning
efforts as well as overseeing all sales and marketing activities at the company, and has hit the ground running. Our focus remains
on our mission to improve the quality of life of patients around the world through the design, development and delivery of the
highest quality innovative therapeutic solutions. Patient safety, product efficacy, customer service, and shareholder value
continue to be our highest priorities.''
Mr. Goldberger continued, ''The addition of Don Pettigrew and our increased investments to support R&D and clinical trial
activity should lay the foundation for long term success. We are starting to see leverage in our income statement from expanding
gross margins and control of operating expenses. Our balance sheet shows substantial cash resources and zero debt. All of this
bodes well for future, profitable growth.''
Conference Call
An accompanying conference call will be led by Dan Goldberger, Chairman and interim Chief Executive Officer, Karen Fisher, Chief
Financial Officer and Don Pettigrew, President and Chief Commercial Officer. The call will be held at 9:00AM ET, on Wednesday,
October 24, 2018. Please refer to the information below for conference call dial-in information and webcast registration.
Conference date: October 24, 2018, 9:00 AM ET
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Conference Call Name: RMS Medical Products (OTCQX: REPR) Third Quarter 2018 Results Call
Webcast Registration: Click Here
Following the live call, a replay will be available on the Company’s website, www.rmsmedicalproducts.com, under ''Investor Relations'' for six months.
About RMS Medical Products
The Company develops, manufactures and commercializes medical products used for home infusions and suctioning. The FREEDOM
Syringe Infusion System currently includes the FREEDOM60® and FreedomEdge® Syringe Infusion Drivers, RMS Precision Flow Rate
Tubing™ and RMS HIgHFlo Subcutaneous Safety Needle Sets™. These devices are used for infusions administered in professional
healthcare settings as well as at home. The Company’s RESQVAC® line of medical suctioning products is used by emergency medical
service providers in addition to a variety of other healthcare providers. For more information about RMS Medical Products, please
visit www.rmsmedicalproducts.com.
Forward-Looking Statements
This press release includes ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe
such risks and uncertainties, readers are urged to consider statements labeled with the terms ''believe'', ''should,'' ''may'' and
''bodes well'' to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to
other risks and uncertainties that are described from time to time in the Company’s reports and registration statements filed with
the Securities and Exchange Commission. The results of operations for the periods presented herein are not necessarily indicative
of the results to be expected in the future.
Contact
Rich Cockrell
CG Capital
877.889.1972
investorrelations@cg.capital
REPRO MED SYSTEMS, INC.
BALANCE SHEETS
|
|
|
September 30, |
|
|
December 31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
3,649,332 |
|
|
$ |
3,974,536 |
|
|
Certificates of deposit
|
|
|
1,671,004 |
|
|
|
263,269 |
|
|
Accounts receivable less allowance for doubtful accounts of $77,067 at September 30, 2018 and $77,067 at December 31,
2017
|
|
|
1,510,630 |
|
|
|
1,861,949 |
|
|
Inventory
|
|
|
1,949,403 |
|
|
|
1,658,681 |
|
|
Prepaid expenses
|
|
|
348,085 |
|
|
|
170,739 |
|
|
TOTAL CURRENT ASSETS
|
|
|
9,128,454 |
|
|
|
7,929,174 |
|
|
Property and equipment, net
|
|
|
821,313 |
|
|
|
836,283 |
|
|
Patents, net of accumulated amortization of $229,693 and $203,768 at September 30, 2018 and December 31, 2017,
respectively
|
|
|
595,754 |
|
|
|
483,821 |
|
|
Other assets
|
|
|
31,582 |
|
|
|
31,582 |
|
|
TOTAL ASSETS
|
|
$ |
10,577,103 |
|
|
$ |
9,280,860 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Deferred capital gain - current
|
|
$ |
9,383 |
|
|
$ |
22,481 |
|
|
Accounts payable
|
|
|
591,919 |
|
|
|
454,398 |
|
|
Accrued expenses
|
|
|
627,237 |
|
|
|
658,060 |
|
|
Accrued payroll and related taxes
|
|
|
121,203 |
|
|
|
334,903 |
|
|
Accrued tax liability
|
|
|
55,002 |
|
|
|
115,854 |
|
|
TOTAL CURRENT LIABILITIES
|
|
|
1,404,744 |
|
|
|
1,585,696 |
|
|
Deferred capital gain - long term
|
|
|
- |
|
|
|
3,762 |
|
|
Deferred tax liability
|
|
|
32,509 |
|
|
|
21,675 |
|
|
TOTAL LIABILITIES
|
|
|
1,437,253 |
|
|
|
1,611,133 |
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value; 75,000,000 shares authorized, 40,932,445 and 40,731,529 shares issued, 38,195,214 and
37,994,298 shares outstanding at September 30, 2018 and December 31, 2017, respectively
|
|
|
409,324 |
|
|
|
407,315 |
|
|
Additional paid-in capital
|
|
|
4,419,129 |
|
|
|
4,216,718 |
|
|
Retained earnings
|
|
|
4,655,601 |
|
|
|
3,389,898 |
|
|
|
|
|
9,484,054 |
|
|
|
8,013,931 |
|
|
Less: Treasury stock, 2,737,231 shares at September 30, 2018 and December 31, 2017
|
|
|
(344,204 |
) |
|
|
(344,204 |
) |
|
TOTAL STOCKHOLDERS' EQUITY
|
|
|
9,139,850 |
|
|
|
7,669,727 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$ |
10,577,103 |
|
|
$ |
9,280,860 |
|
REPRO MED SYSTEMS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
For the
Three Months Ended
|
|
|
For the
Nine Months Ended
|
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
$ |
4,547,187 |
|
|
$ |
3,849,338 |
|
|
$ |
13,082,737 |
|
|
$ |
11,317,231 |
|
|
Cost of goods sold
|
|
|
1,655,619 |
|
|
|
1,470,680 |
|
|
|
4,985,761 |
|
|
|
4,539,320 |
|
|
Gross Profit
|
|
|
2,891,568 |
|
|
|
2,378,658 |
|
|
|
8,096,976 |
|
|
|
6,777,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
2,203,614 |
|
|
|
1,893,911 |
|
|
|
6,106,514 |
|
|
|
5,674,357 |
|
|
Research and development
|
|
|
126,923 |
|
|
|
14,852 |
|
|
|
160,735 |
|
|
|
85,598 |
|
|
Depreciation and amortization
|
|
|
78,345 |
|
|
|
77,517 |
|
|
|
228,900 |
|
|
|
229,178 |
|
|
Total Operating Expenses
|
|
|
2,408,882 |
|
|
|
1,986,280 |
|
|
|
6,496,149 |
|
|
|
5,989,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Profit
|
|
|
482,686 |
|
|
|
392,378 |
|
|
|
1,600,827 |
|
|
|
788,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Operating (Expense)/Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Gain on currency exchange
|
|
|
(5,842 |
) |
|
|
10,419 |
|
|
|
(16,256 |
) |
|
|
62,164 |
|
|
Gain on sale of fixed asset
|
|
|
6,000 |
|
|
|
- |
|
|
|
6,000 |
|
|
|
- |
|
|
Interest and other income
|
|
|
6,972 |
|
|
|
361 |
|
|
|
13,088 |
|
|
|
2,427 |
|
|
TOTAL OTHER (EXPENSE)/INCOME
|
|
|
7,130 |
|
|
|
10,780 |
|
|
|
2,832 |
|
|
|
64,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXES
|
|
|
489,816 |
|
|
|
403,158 |
|
|
|
1,603,659 |
|
|
|
853,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
(103,263 |
) |
|
|
(137,404 |
) |
|
|
(337,956 |
) |
|
|
(312,192 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$ |
386,553 |
|
|
$ |
265,754 |
|
|
$ |
1,265,703 |
|
|
$ |
541,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
Diluted
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
38,194,682 |
|
|
|
37,898,357 |
|
|
|
38,104,393 |
|
|
|
37,833,133 |
|
|
Diluted
|
|
|
38,985,684 |
|
|
|
38,072,425 |
|
|
|
38,875,737 |
|
|
|
37,934,851 |
|
REPRO MED SYSTEMS, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
For the Nine Months Ended |
|
|
|
|
September 30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net Income
|
|
$ |
1,265,703 |
|
|
$ |
541,177 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Amortization of deferred compensation cost
|
|
|
- |
|
|
|
7,000 |
|
|
Stock based compensation expense
|
|
|
154,925 |
|
|
|
87,271 |
|
|
Depreciation and amortization
|
|
|
228,900 |
|
|
|
229,178 |
|
|
Gain on sale of fixed asset
|
|
|
(6,000 |
) |
|
|
- |
|
|
Deferred capital gain - building lease
|
|
|
(16,860 |
) |
|
|
(16,860 |
) |
|
Deferred taxes
|
|
|
10,834 |
|
|
|
8,843 |
|
|
Provision for returns and doubtful accounts
|
|
|
- |
|
|
|
58,339 |
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Decrease/(Increase) in accounts receivable
|
|
|
351,319 |
|
|
|
(243,428 |
) |
|
Increase in inventory
|
|
|
(290,722 |
) |
|
|
(225,177 |
) |
|
(Increase)/Decrease in prepaid expense and other assets
|
|
|
(177,346 |
) |
|
|
37,753 |
|
|
Increase/(Decrease) in accounts payable
|
|
|
137,521 |
|
|
|
(409,171 |
) |
|
Decrease in accrued payroll and related taxes
|
|
|
(213,700 |
) |
|
|
(17,253 |
) |
|
(Decrease)/Increase in accrued expense
|
|
|
(30,823 |
) |
|
|
136,045 |
|
|
(Decrease)/Increase in accrued tax liability
|
|
|
(60,852 |
) |
|
|
303,349 |
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
1,352,899 |
|
|
|
497,066 |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Payments for capital expenditures
|
|
|
(188,006 |
) |
|
|
(160,946 |
) |
|
Purchase of certificate of deposit
|
|
|
(1,500,000 |
) |
|
|
- |
|
|
Proceeds on sale of fixed assets
|
|
|
6,000 |
|
|
|
- |
|
|
Payments for patents
|
|
|
(137,858 |
) |
|
|
(70,556 |
) |
|
Proceeds/(reinvested earnings) from certificates of deposit
|
|
|
92,266 |
|
|
|
(1,196 |
) |
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
|
(1,727,598 |
) |
|
|
(232,698 |
) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Stock issuances
|
|
|
51,250 |
|
|
|
- |
|
|
Payment for cancelled shares
|
|
|
(1,755 |
) |
|
|
(19,360 |
) |
|
Purchase of treasury stock
|
|
|
- |
|
|
|
(484 |
) |
|
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES
|
|
|
49,495 |
|
|
|
(19,844 |
) |
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(325,204 |
) |
|
|
244,524 |
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
3,974,536 |
|
|
|
3,417,183 |
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$ |
3,649,332 |
|
|
$ |
3,661,707 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information
|
|
|
|
|
|
|
|
|
|
Cash paid during the periods for:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
$ |
- |
|
|
$ |
- |
|
|
Taxes
|
|
$ |
378,000 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CASH FINANCING AND INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Issuance of common stock as compensation
|
|
$ |
103,333 |
|
|
$ |
101,250 |
|
SOURCE: Repro Med Systems, Inc.
