Retractable Technologies, Inc. (NYSE American: RVP) reports that
its loss from operations was $8.7 million for the first nine months
of 2023 and that it had an operating loss of $936 thousand for the
third quarter of 2023, as compared to an operating income for the
same periods last year of $7.0 million for the first nine months of
2022 and an operating loss of $691 thousand for the third quarter
of 2022. Total net sales were $10.3 million for the three months
ended September 30, 2023 and $29.3 million for the nine months
ended September 30, 2023. In comparison, total net sales were $23.1
million for the three months ended September 30, 2022 and $82.1
million for the nine months ended September 30, 2022. The
differences in the revenues and operating income or loss are
largely due to lower sales related to COVID-19 vaccination
efforts.
Retractable experienced significant growth in late 2020 through
early 2022 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. International
sales for vaccination efforts were also unusually strong through
the first quarter of 2023. As a result, comparability to revenues
and expenses in recent years may be challenging. Below are third
quarter revenue figures from 2018 – 2023, as obtained from
Retractable’s Quarterly Reports on Form 10-Q as filed with the U.S
Securities and Exchange Commission.
Three Months Ended September
30,
(Amounts in millions)
2023
2022
2021
2020
2019
2018
U.S. sales (excluding U.S. government)
$
9.4
$
9.2
$
15.7
$
12.6
$
9.0
$
8.8
Sales to U.S. government
—
—
18.4
12.9
—
—
North and South America sales (excluding
U.S.)
0.8
9.8
0.7
1.3
2.4
0.8
Other international sales
0.1
4.0
1.6
0.3
0.2
0.3
Total sales
$
10.3
$
23.0
$
36.4
$
27.1
$
11.6
$
9.9
Retractable reports that domestic demand may be depressed due to
the retention of products previously provided for vaccination
purposes in customers’ inventory. In the first nine months of 2023,
Retractable invested approximately 31% more in sales and marketing
expenses, primarily in travel and trade show expenses as well as
increased headcount for sales representatives, in an effort to
improve future revenues.
Unrealized losses on investments were a significant factor in
the computation for net loss for 2023 periods. Increased invested
amounts were a significant factor in the decreased cash position in
the first nine months of 2023.
Retractable reports that its unit sales have increased
domestically each quarter of 2023. Below are revenue figures from
2023 as obtained from Retractable’s Quarterly Reports on Form 10-Q
as filed with the U.S Securities and Exchange Commission.
2023
(Amounts in millions)
Quarter 3
Quarter 2
Quarter 1
U.S. sales (excluding U.S. government)
$
9.4
$
7.3
$
5.4
North and South America sales (excluding
U.S.)
0.8
0.2
4.8
Other international sales
0.1
0.5
0.8
Total sales
$
10.3
$
8.0
$
11.0
Retractable reports the following results of operations for the
three and nine months ended September 30, 2023 and 2022,
respectively. Further details concerning the results of operations,
as well as other matters, are available in Retractable’s Form 10-Q
filed on November 14, 2023 with the U.S Securities and Exchange
Commission.
Comparison of Three Months Ended September
30, 2023 and September 30, 2022
Domestic sales accounted for 90.9% and 39.9% of the revenues for
the three months ended September 30, 2023 and 2022, respectively.
Domestic revenues increased 2.1%. Domestic unit sales increased
1.8%. Domestic unit sales were 87% of total unit sales for the
three months ended September 30, 2023. International revenues
decreased approximately 93.2% predominately due to fewer
international vaccination-related sales. Overall unit sales
decreased 66.1%. There is uncertainty as to the timing of future
international orders.
Cost of manufactured product decreased 69.0% principally due to
lower unit sales. Royalty expense decreased 46.6% due to the
associated decrease in gross sales.
Operating expenses decreased 3.1% from the prior year. This is
substantially due to decreases in stock option expenses and
headcount as well as employee-related expenses as a result of a
reduction of labor force in March of 2023.
The loss from operations was $936 thousand compared to a loss of
$691 thousand for the same period last year. The greater loss was
due to an overall decrease in revenues.
The unrealized loss on debt and equity securities was $6.5
million due to the decreased market values of those securities.
The benefit for income taxes was $1.2 million for the third
quarter of 2023 as compared to a benefit of $5.8 million in the
third quarter of 2022.
Comparison of Nine Months Ended September
30, 2023 and September 30, 2022
Domestic sales accounted for 75.5% and 54.4% of the revenues for
the nine months ended September 30, 2023 and 2022, respectively.
Domestic revenues decreased 50.5% principally due to lack of sales
to the U.S. government. Domestic unit sales decreased 46%. Domestic
unit sales were 66.4% of total unit sales for the nine months ended
September 30, 2023. International revenues decreased approximately
80.8% predominately due to fewer international vaccination-related
sales. Overall unit sales decreased 66.9%. There is uncertainty as
to the timing of future international orders.
Cost of manufactured product decreased 63.3% principally due to
lower unit sales. Royalty expense decreased 55.3% due to the
associated decrease in gross sales.
Operating expenses decreased 3.1% from the prior year. This is
substantially due to decreases in stock option expense, consulting,
and reduced headcount. In the first nine months of 2023, we
incurred approximately 30.9% more in sales and marketing expenses,
primarily in travel and trade show expenses as well as increased
headcount for sales representatives, in an effort to improve future
revenues.
The loss from operations was $8.7 million compared to an income
from operations of $7.0 million for the same period last year. The
loss was due to an overall decline in revenues and an increase in
cost of manufactured product on a per-unit basis.
The unrealized loss on debt and equity securities was $11.3
million due to the decreased market values of those securities but
we recognized a gain on sales of equity securities in the amount of
$5.6 million.
The benefit for income taxes was $1.9 million for the first nine
months of 2023 as compared to $1.5 million in the first nine months
of 2022.
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: material changes 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/20231114905196/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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