Retractable Technologies, Inc. (NYSE American: RVP) reports that
its operating income was $7.7 million for the first six months of
2022 and that it had an operating loss of $2.1 million for the
second quarter of 2022, as compared to an operating income for the
same periods last year of $36.1 million for the first six months of
2021 and an operating income of $12.7 million for the second
quarter of 2021. Total net sales were $14.3 million for the three
months ended June 30, 2022 and $59.1 million for the six months
ended June 30, 2022. In comparison, total 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 differences in the
revenues are largely due to the lack of second quarter sales to the
U.S. government, offset by higher international sales. Although
total revenues for the three and six months ended June 30, 2022
were significantly lower than the same periods in the prior year,
sales to non-U.S. government domestic customers for both the first
and second quarters of 2022 were higher than any quarter in the two
years immediately prior to the COVID-19 pandemic.
While Retractable continues to work with its contacts at the
U.S. Department of Health and Human Services, additional orders are
uncertain.
International sales increased significantly in the periods ended
June 30, 2022, with additional international orders accepted but
delayed as of June 30, 2022 due to recent and temporary closures in
China as a result of COVID-19 measures.
Retractable experienced significant growth in 2021 and late 2020
due to material orders from the U.S. government to supply syringes
for COVID-19 vaccination efforts. Such orders included payment for
certain freight charges as well. As a result, comparability to
revenues and expenses in recent years may be challenging. Below are
second quarter revenue figures from 2018 – 2022, as obtained from
Retractable’s Quarterly Reports on Form 10-Q as filed with the U.S
Securities and Exchange Commission.
Three Months Ended June
30,
(Amounts in millions)
2022
2021
2020
2019
2018
U.S. sales (excluding U.S. government)
$
9.5
$
12.7
$
9.4
$
7.8
$
6.3
Sales to U.S. government
—
27.4
—
—
—
North and South America sales (excluding
U.S.)
4.3
1.5
2.0
1.2
0.8
Other international sales
0.5
0.9
0.2
0.6
0.4
Total sales
$
14.3
$
42.5
$
11.6
$
9.6
$
7.5
Retractable reports the following results of operations for the
three and six months ended June 30, 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
August 15, 2022 with the U.S Securities and Exchange
Commission.
Comparison of Three Months Ended June 30,
2022 and June 30, 2021
Domestic sales accounted for 66.7% and 94.3% of the revenues for
the three months ended June 30, 2022 and 2021, respectively.
Domestic revenues decreased 76.1% principally due to the lack of
second quarter sales to the U.S. government. Domestic unit sales
decreased 79.8%. Domestic unit sales were 51.4% of total unit sales
for the three months ended June 30, 2022. International revenues
increased approximately 97.5% predominately due to international
vaccination campaigns. Overall unit sales decreased 64.1%.
Cost of manufactured product decreased 51.7% principally due to
lower volumes. Royalty expense decreased 65.1% due to decreased
gross sales.
Operating expenses decreased 18.1% from the prior year. This is
substantially due to lower consulting costs.
The loss from operations was $2.1 million compared to income
from operations of $12.7 million for the same period last year. The
decrease was due to an overall decrease in revenues and because
per-unit costs have risen with lower production levels.
The unrealized loss on equity securities was $3.9 million due to
the decreased market values of those securities.
The benefit for income taxes was $1.6 million for the second
quarter of 2022 in comparison to the provision for income taxes of
$3.5 million in the second quarter of 2021.
Comparison of Six Months Ended June 30, 2022
and June 30, 2021
Domestic sales, including sales to the U.S. government,
accounted for 60.1% and 96.0% of the revenues for the six months
ended June 30, 2022 and 2021, respectively. Domestic revenues
decreased 60.0% principally due to lower sales to the U.S.
government. Domestic unit sales decreased 63.0%. Domestic unit
sales were 46.5% of total unit sales for the six months ended June
30, 2022. Domestic unit sales excluding the U.S. government sales
decreased approximately 32.3%. International revenues increased
approximately 529.1% predominately due to first-quarter purchases
from a non-governmental humanitarian organization for international
vaccination campaigns. Overall unit sales decreased 25.5%.
Cost of manufactured product decreased 7.7% principally due to
lower volumes. Royalty expense decreased 37.1% due to decreased
gross sales.
Operating expenses were largely unchanged from the prior
year.
Income from operations was $7.7 million compared to income from
operations of $36.1 million for the same period last year. The
decrease was due to an overall decrease in revenues and because
per-unit costs have risen with lower production levels.
The unrealized loss on equity securities was $572 thousand due
to the decreased market values of those securities.
The provision for income taxes decreased to $4.2 million for the
first six months of 2022 from $10.1 million in the first six months
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220815005702/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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