Retractable Technologies, Inc. Reports $9.7 Million in Operating Income for the First Three Months Of 2022
17 Mai 2022 - 6:53PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports that
its operating income was $9.7 million for the first three months of
2022, compared to an operating income for the same period last year
of $23.4 million. Net sales were $44.7 million for the first
quarter of 2022 as compared to $50.1 million for the first quarter
of 2021, reflecting lower revenues from the U.S. government and
higher international revenues related to COVID-19 vaccination
efforts. The U.S. government remained a significant customer for
the first quarter of 2022, constituting $15.7 million in net sales
as compared to $37.8 million in the first quarter of 2021. While
Retractable continues to work with its contacts at both the U.S.
Department of Health and Human Services and an international
organization which was a significant customer, additional orders
are uncertain.
Cost of manufactured product increased during the first quarter
of 2022 due to, among other factors, increases in transportation
costs. Retractable notes that transportation costs have materially
increased and that differences from prior periods will be magnified
by the fact that a substantial portion of prior period sales were
related to orders from the U.S. government which were associated
with reimbursed freight costs.
Retractable continues its expansion efforts aimed at increasing
its manufacturing capacity, which has been primarily directed and
funded by the U.S. government under the 2020 Technology Investment
Agreement (“TIA”). Such expansion efforts and recent increase in
production volumes have driven an increase in staffing and related
costs.
Retractable has identified initiatives which may materially
increase future demand for its products, including COVID-19 booster
shot recommendations and flu shot campaigns, but cautions that some
domestic customers may have product still in stock from the initial
rounds of COVID-19 vaccinations.
Retractable reports the following results of operations for the
three months ended March 31, 2022 and 2021, respectively. Further
details concerning the results of operations, as well as other
matters, are available in Retractable’s Form 10-Q filed on May 16,
2022 with the U.S Securities and Exchange Commission.
Comparison of Three Months Ended March 31,
2022 and March 31, 2021
Domestic sales, including sales to the U.S. government,
accounted for 58.0% and 97.3% of the revenues for the three months
ended March 31, 2022 and 2021, respectively. Domestic revenues
decreased 46.8% principally due to lower sales to the U.S.
government. Domestic unit sales decreased 48.9%. Domestic unit
sales were 45.1% of total unit sales for the three months ended
March 31, 2022. Domestic unit sales excluding the U.S. government
decreased approximately 16.4%. International revenues increased
approximately 1,313.2% predominately due to purchases from a
non-governmental humanitarian organization for international
vaccination campaigns. Overall unit sales increased 8.5%. While
international unit sales and revenues increased dramatically, there
is uncertainty as to the timing of future international orders. In
addition, the revenues on a per-unit basis in the international
market are significantly lower than in the U.S. market. As a
result, material increases in international orders and unit sales
have the potential to lower our overall revenues on a per-unit
basis, as well as our profit margins.
Cost of manufactured product increased 38.9% principally due to
increases in transportation costs, a higher-cost product mix, and
an increase in units sold. Royalty expense decreased 12.1% due to
decreased gross sales.
Operating expenses increased 27.7% 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 TIA. Included in the increased employee
expenses were $1.1 million of share-based compensation expense and
$686 thousand from general salary increases and larger headcount.
Sales and marketing expenses increased due to increased access to
travel for our sales staff.
Income from operations was $9.7 million compared to income from
operations of $23.4 million for the same period last year. The
decrease was due to an overall decrease in revenues and higher
costs as well as fewer orders associated with freight
reimbursement.
Unrealized gain on equity securities increased by 201.7% due to
the increased market values of those securities. However, a
realized loss on the sale of investments led to a 61.6% decrease in
interest and other income. Interest expense for the first quarter
of 2022 decreased by approximately 27.6% from the same period in
the prior year due to less imputed interest associated with the
stock exchanges occurring in 2020.
The provision for income taxes decreased to $5.8 million for the
first quarter of 2022 from $6.6 million in the first quarter of
2021.
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 scale up production volumes in response to an increase
in demand, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220517006094/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)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Retractable Technologies (AMEX:RVP)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024