Full Press Release Details
TECHNOLOGIES, INC. ANNOUNCES RECORD 2006 REVENUES OF $25.3 MILLION ON 32.6%
LITTLE ELM, Texas, April 10, 2007 Retractable Technologies, Inc. (AMEX:
RVP), a leading maker of safety needle devices, today reported record total
revenues of $25.3 million for the year ended December 31, 2006, an increase of
4.5% over 2005. Unit sales rose 32.6%. These gains were due largely to higher
sales volumes in the international and alternate care markets, which includes
nursing homes. Total sales in 2006 also included $4.4 million in reimbursed
discounts compared with $3.1 million in the previous year. This reimbursement
program, which ended in 2006, stemmed from the Company s 2003 legal settlement
with a large hospital group purchasing organization (GPO).
Despite these improvements, the loss applicable to common shareholders
for 2006 widened to $5.3 million, compared with $2.7 million in 2005. This
resulted from significantly higher operating expenses, including sales and
marketing expenses as well as general and administrative costs. Sales and
marketing expenses, including compensation costs and travel and entertainment,
rose as the Company continued to build its national sales force. General and
administrative costs increased mainly because of higher legal costs,
compensation expense, consulting costs, and taxes other than income taxes. As a result of these developments, the gross
profit margin declined to 29.8% in 2006 from 36.3% the year before.
provision for income tax benefits of $1.3 million consists primarily of federal
taxes subject to carry back provisions.
State income taxes are also subject to the various states carry back
details are available on Form 10-K filed on April 2, 2007 with the Securities
and Exchange Commission.
Technologies, Inc. manufactures and markets VanishPoint automated retraction
safety syringes and blood collection devices, which virtually eliminate health
care worker exposure to accidental needlestick injuries. These revolutionary
devices use a patented friction ring mechanism that causes the contaminated
needle to retract automatically from the patient into the barrel of the device,
a feature that is designed to prevent reuse. VanishPoint safety needle devices
are distributed by various specialty and general line distributors. For more
information on Retractable, visit our Web site at www.vanishpoint.com.
statements in this press release are made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995 and reflect the Company s
current views with respect to future events. The Company believes that the
expectations reflected in such forward-looking statements are accurate.
However, the Company cannot assure you that such expectations will materialize.
The Company s actual future performance could differ materially from such
cause or contribute to such differences include, but are not limited to: the
Company s ability to maintain liquidity; maintenance of patent protection; the
impact of current and potential litigation; the impact of dramatic increases in
demand; the Company s ability to maintain and quickly increase its production
capacity in the event of a dramatic increase in demand; the Company s ability
to access the market; the Company s ability to decrease production costs; the
Company s ability to continue to finance research and development as well as
operations and expansion of production; the increased interest of other larger
market players, specifically Becton Dickinson and Company, Inc., in providing
safety needle devices to their customers; and other risks and uncertainties
that are detailed from time to time in the Company s periodic reports filed
with the Securities and Exchange Commission.
| December 31, | |||||||
| 2006 | 2005 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 46,814,689 | $ | 52,513,935 | |||
| Accounts receivable | 1,956,756 | 3,404,908 | |||||
| Inventories, net | 6,385,780 | 3,297,726 | |||||
| Income taxes receivable | 2,355,732 | 561,062 | |||||
| Current deferred tax asset | 1,245,508 | ||||||
| Other current assets | 267,707 | 462,150 | |||||
| Total current assets | 57,780,664 | 61,485,289 | |||||
| Property, plant, and equipment, net | 12,212,140 | 11,925,976 | |||||
| Intangible assets, net | 279,846 | 316,926 | |||||
| Other assets | 522,294 | 27,334 | |||||
| Total assets | $ | 70,794,944 | $ | 73,755,525 | |||
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 4,247,630 | $ | 2,345,613 | |||
| Current portion of long-term debt | 261,905 | 295,417 | |||||
| Accrued compensation | 472,573 | 388,726 | |||||
| Marketing fees payable | 1,419,760 | 1,419,760 | |||||
| Accrued royalties to shareholder | 2,755 | 540,888 | |||||
| Other accrued liabilities | 440,253 | 467,812 | |||||
| Current deferred tax liability | 45,697 | ||||||
| Total current liabilities | 6,890,573 | 5,458,216 | |||||
| Long-term debt, net of current maturities | 4,137,231 | 4,350,625 | |||||
| Long-term deferred tax liability | 56,828 | 711,443 | |||||
| Total liabilities | 11,084,632 | 10,520,284 | |||||
| Stockholders equity: | |||||||
| Preferred Stock $1 par value: | |||||||
| Series I, Class B | 164,000 | 171,000 | |||||
| Series II, Class B | 224,700 | 255,200 | |||||
| Series III, Class B | 135,245 | 135,245 | |||||
| Series IV, Class B | 553,500 | 556,000 | |||||
| Series V, Class B | 1,363,721 | 1,381,221 | |||||
| Common Stock | |||||||
| Additional paid-in capital | 54,709,108 | 54,307,053 | |||||
| Retained earnings | 2,560,038 | 6,429,522 | |||||
| Total stockholders equity | 59,710,312 | 63,235,241 | |||||
| Total liabilities and stockholders equity | $ | 70,794,944 | $ | 73,755,525 |
RETRACTABLE TECHNOLOGIES, INC.
| Years Ended December 31, | ||||||||||
| 2006 | 2005 | 2004 | ||||||||
| Sales, net | $ | 20,897,207 | $ | 21,156,666 | $ | 21,135,943 | ||||
| Reimbursed discounts | 4,427,312 | 3,078,350 | 385,757 | |||||||
| Total sales | 25,324,519 | 24,235,016 | 21,521,700 | |||||||
| Cost of Sales | ||||||||||
| Costs of manufactured product | 15,684,450 | 13,713,675 | 14,564,404 | |||||||
| Royalty expense to shareholder | 2,093,822 | 1,715,024 | 1,846,195 | |||||||
| Total cost of sales | 17,778,272 | 15,428,699 | 16,410,599 | |||||||
| Gross profit | 7,546,247 | 8,806,317 | 5,111,101 | |||||||
| Operating expenses: | ||||||||||
| Sales and marketing | 5,545,500 | 4,148,688 | 3,648,454 | |||||||
| Research and development | 958,798 | 934,209 | 626,941 | |||||||
| General and administrative | 7,756,647 | 6,600,133 | 8,834,527 | |||||||
| Total operating expenses | 14,260,945 | 11,683,030 | 13,109,922 | |||||||
| Loss from operations | (6,714,698 | ) | (2,876,713 | ) | (7,998,821 | ) | ||||
| Interest income | 1,976,406 | 1,372,715 | 475,121 | |||||||
| Interest expense, net | (411,154 | ) | (339,688 | ) | (243,922 | ) | ||||
| Litigation settlements, net | 74,635,362 | |||||||||
| Net income (loss) before income taxes | (5,149,446 | ) | (1,843,686 | ) | 66,867,740 | |||||
| Provision (benefit) for income taxes | (1,279,962 | ) | (605,363 | ) | 12,176,345 | |||||
| Net income (loss) | (3,869,484 | ) | (1,238,323 | ) | 54,691,395 | |||||
| Preferred Stock dividend requirements | (1,451,321 | ) | (1,502,887 | ) | (1,993,516 | ) | ||||
| Earnings (loss) applicable to common shareholders | (5,320,805 | ) | $ | (2,741,210 | ) | $ | 52,697,879 | |||
| Earnings (loss) per share -basic | $ | (0.23 | ) | $ | (0.12 | ) | $ | 2.33 | ||
| Earnings (loss) per share -diluted | $ | (0.23 | ) | $ | (0.12 | ) | $ | 2.08 | ||
| Weighted average common shares outstanding | 23,591,999 | 23,332,277 | 22,600,166 |
Vice President and Chief Financial Officer
(888) 806-2626 or (972) 294-1010
Communications Director
(212) 490-0811 or (214) 912-7415 (cell)