Retractable Technologies, Inc. Reports $36.1 Million in Operating Income for the First Six Months Of 2021
17 Août 2021 - 6:38PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports that
its operating income was $36.1 million for the first six months of
2021, compared to an operating income for the same period last year
of $1.4 million, and that income applicable to common shareholders
was $28.5 million for the first six months of 2021 compared to $3.7
million in the prior year. Net sales were $42.5 million for the
three months ended June 30, 2021 and $92.6 million for the six
months ended June 30, 2021. The U.S. government remained a
significant customer, constituting 64.4% and 70.4% of the net sales
in the three and six-month periods ended June 30, 2021.
Retractable reports the following results of operations for the
three and six months ended June 30, 2021 and 2020,
respectively.
Comparison of Three Months Ended June 30, 2021
and June 30, 2020
Domestic sales, including sales to the U.S. government,
accounted for 94.3% and 81.5% of the revenues for the three months
ended June 30, 2021 and 2020, respectively. Domestic revenues
increased 325.0% principally due to increased volumes primarily
attributable to orders from the U.S. government. Domestic unit
sales increased 226.0%. Domestic unit sales were 91.2% of total
unit sales for the three months ended June 30, 2021. Domestic unit
sales excluding the U.S. government rose approximately 20.7%.
International revenues increased approximately $273 thousand due to
an increase in products available for international shipment. Our
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 181.2%. Other than the U.S. government, our
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 191.5% principally due to
an increase in units sold. Royalty expense increased 173.3% due to
increased gross sales.
Operating expenses increased 156.8% from the prior year. This is
substantially due to increased headcount and other employee-related
expenses, as well as consulting expenses. Each of these is
attributable to the larger volume of orders and the expansion
activities required by the Technology Investment Agreement (“TIA”)
with the United States Government Department of Defense, U.S. Army
Contracting Command-Aberdeen Proving Ground, Natick Contracting
Division & Edgewood Contracting Division (ACC-APG, NCD &
ECD). Included in the increased employee expenses were employee
bonuses of approximately $2.2 million and $1.3 million of
share-based compensation expense. Sales and marketing expenses
increased due to employee bonuses, increased headcount, lifting of
travel restrictions, and an increase in GPO fees on the basis of
the increase in sales.
Income from operations was $12.7 million compared to income from
operations of $960 thousand for the same period last year. The
increase was due to the increase in net revenues and resulting
gross profit. In the second quarter of 2021, we also recorded a
gain of $1.4 million to reflect the forgiveness of our Paycheck
Protection Program (“PPP”) loan.
Interest and other income decreased $972 thousand for the
quarter ended June 30, 2021 compared to the same period last year
principally due to a decrease in the unrealized gain on investments
and a decrease in dividend income. Interest expense for the second
quarter of 2021 increased by approximately $19 thousand from the
same period in the prior year. The increase is primarily
attributable to imputed interest associated with amounts payable
for the repurchase of preferred stock from former shareholders.
Comparison of Six Months Ended June 30, 2021
and June 30, 2020
Domestic sales, including sales to the U.S. government,
accounted for 96.0% and 78.0% of the revenues for the six months
ended June 30, 2021 and 2020, respectively. Domestic revenues
increased 399.9% principally due to increased volumes primarily
attributable to orders from the U.S. government. Domestic unit
sales increased 322.0%. Domestic unit sales were 93.6% of total
unit sales for the six months ended June 30, 2021. Domestic unit
sales excluding the U.S. government rose approximately 30.1%.
International revenues decreased approximately $1.3 million. Our
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 227.3%. Other than the U.S. government, our
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 186.6% principally due to
an increase in units sold. Royalty expense increased 203.3% due to
increased gross sales.
An increase in operating expenses of 100.3% over the previous
year is primarily attributable to an increase in headcount,
employee-related expenses, and consulting fees. These increases are
due to the growth in order volume and expansion activities required
by the TIA. Included in the increased employee expenses were
bonuses and retroactive salary increases for the named executive
officers of approximately $650 thousand, $2.2 million in other
employee bonuses, and $1.3 million of share-based compensation
expense. Sales and marketing expenses increased due to employee
bonuses and an increase of GPO fees on the basis of the increase in
sales.
Income from operations was $36.1 million compared to income from
operations of $1.4 million for the same period last year. The
increase was due to the increase in net revenues and resulting
gross profit.
Interest and other income increased $364 thousand for the six
months ended June 30, 2021 compared to the same period last year
principally due to unrealized gains from our investments. Interest
expense for the first six months of 2021 increased by approximately
$50 thousand from the same period in the prior year. The increase
is primarily attributable to imputed interest associated with
amounts payable for the repurchase of preferred stock from former
shareholders.
Further details concerning the results of operations as well as
other matters are available in Retractable's Form 10-Q filed on
August 16, 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/20210817005783/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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