Full Press Release Details
Retractable Technologies, Inc. Reports 2007 Sales of
$26.3 Million, New Patent, and Recent Litigation Matters
ELM, Texas, April 3, 2008 Retractable Technologies, Inc. (AMEX: RVP),
a leading maker of safety needle devices, today reported revenues of $26.3
increased due principally to increased sales in the international market.
Domestic sales were 81.6% of revenues with international sales comprising the
remainder. Unit sales of the 1cc syringe increased 7.3% and 5cc unit
sales increased 30.6%. Unit sales of all products increased 7.5%.
of sales as a percentage of revenues decreased slightly due to higher volumes offset by the lower
average selling price principally in the international sales. The
increased volume of production resulted in a lower unit cost. Royalty
a result, gross profits increased and gross profit margins increased slightly
from 29.8% in 2006 to 30.4% in 2007.
expenses increased from the prior year primarily due to higher legal expenses
associated with the pending litigation with Becton Dickinson and Company ( BD ). RTI s patent infringement suit against BD is
currently set for trial in March 2009.
flow from operations was negative for 2007 due principally to the net loss for
the year. The effect of non-cash expenses and the change in working
capital were a positive $2.7 million.
April 1, 2008 we were issued a patent originally filed in July 2000
based on the automated technology incorporated in the VanishPoint
syringe products. The patent is a
continuation in part of an application dating back to May 1995.
filed suit against Occupational & Medical Innovations, Ltd., an
Australian company, on April 1, 2008 in the United States District Court
for the Eastern District of Texas, Tyler Division. The complaint alleges infringement by OMI of
a newly issued patent together with unfair competition and related causes of
also sued BD for infringement of the newly issued patent on April 1, 2008,
and anticipates that the suit will be consolidated with the related patent
infringement case already pending in the Eastern District of Texas, Marshall
Division, that is set for trial in 2009.
March 14, 2008, MedSafe Technologies LLC filed a complaint against
RTI and BD in the United States District Court for the District of South
Carolina, Greenville Division. Plaintiffs allege that RTI s VanishPoint syringe
product line and BD s Integra product line infringe a patent that is
nearing expiration. Plaintiffs seek unspecified damages, and no
trial date has been set.
details concerning the results of operations as well as other matters are
available in the Company s Form 10-K filed on March 31, 2008 with the
U.S. Securities and Exchange Commission.
Technologies, Inc. manufactures and markets safety medical products,
principally the 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 accidental needlestick injury to healthcare workers and
device reuse. Our products are distributed by various specialty and general
line distributors. For more information on Retractable, visit our Web site at
statements in this press release are made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995 and reflect our current
views with respect to future events. We believe that the expectations reflected
in such forward-looking statements are accurate. However, we cannot assure you
that such expectations will materialize. Our actual future performance could
differ materially from such statements.
that could cause or contribute to such differences include, but are not limited
to: our ability to maintain liquidity; our maintenance of patent protection;
the impact of current litigation (as it affects our costs as well as market
access and the viability of our patents); the ability to successfully
renegotiate or extend the BTMD license agreement and the receipt of payments thereunder; the
impact of dramatic increases in demand; our ability to maintain and quickly
increase our production capacity in the event of a dramatic increase in demand;
our ability to access the market; our ability to maintain or lower production
costs; our 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 BD, in providing safety products; and other risks
and uncertainties that are detailed from time to time in the Company s periodic
reports filed with the U. S. Securities and Exchange Commission.
| December 31, | |||||||
| 2007 | 2006 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 40,507,431 | $ | 46,814,689 | |||
| Accounts receivable, net | 1,667,636 | 1,956,756 | |||||
| Inventories, net | 7,037,129 | 6,385,780 | |||||
| Income taxes receivable | 2,345,041 | 2,355,732 | |||||
| Other current assets | 358,807 | 267,707 | |||||
| Total current assets | 51,916,044 | 57,780,664 | |||||
| Property, plant, and equipment, net | 11,483,423 | 12,212,140 | |||||
| Intangible assets, net | 424,560 | 279,846 | |||||
| Other assets | 505,899 | 522,294 | |||||
| Total assets | $ | 64,329,926 | $ | 70,794,944 | |||
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 5,535,365 | $ | 4,247,630 | |||
| Current portion of long-term debt | 387,906 | 261,905 | |||||
| Accrued compensation | 539,330 | 472,573 | |||||
| Marketing fees payable | 1,419,760 | 1,419,760 | |||||
| Accrued royalties to shareholders | 619,304 | 2,755 | |||||
| Other accrued liabilities | 263,339 | 440,253 | |||||
| Current deferred tax liability | 20,626 | 45,697 | |||||
| Total current liabilities | 8,785,630 | 6,890,573 |
| Long-term debt, net of current maturities | 3,747,259 | 4,137,231 | |||||
| Long-term deferred tax liability | 36,200 | 56,828 | |||||
| Total liabilities | 12,569,089 | 11,084,632 | |||||
| Stockholders equity: | |||||||
| Preferred Stock $1 par value: | |||||||
| Class B; authorized: 5,000,000 shares | |||||||
| Series I, Class B | 144,000 | 164,000 | |||||
| Series II, Class B | 219,700 | 224,700 | |||||
| Series III, Class B | 130,245 | 135,245 | |||||
| Series IV, Class B | 553,500 | 553,500 | |||||
| Series V, Class B | 1,282,471 | 1,363,721 | |||||
| Common Stock | |||||||
| Additional paid-in capital | 53,818,987 | 54,709,108 | |||||
| Retained earnings (deficit) | (4,388,066 | ) | 2,560,038 | ||||
| Total stockholders equity | 51,760,837 | 59,710,312 | |||||
| Total liabilities and stockholders equity | $ | 64,329,926 | $ | 70,794,944 |
STATEMENTS OF OPERATIONS
| Years Ended December 31, | ||||||||||
| 2007 | 2006 | 2005 | ||||||||
| Sales, net | $ | 26,289,720 | $ | 20,897,207 | $ | 21,156,666 | ||||
| Reimbursed discounts | 4,427,312 | 3,078,350 | ||||||||
| Total sales | 26,289,720 | 25,324,519 | 24,235,016 | |||||||
| Cost of Sales | ||||||||||
| Costs of manufactured product | 16,212,609 | 15,684,450 | 13,713,675 | |||||||
| Royalty expense to shareholders | 2,087,596 | 2,093,822 | 1,715,024 | |||||||
| Total cost of sales | 18,300,205 | 17,778,272 | 15,428,699 | |||||||
| Gross profit | 7,989,515 | 7,546,247 | 8,806,317 | |||||||
| Operating expenses: | ||||||||||
| Sales and marketing | 5,299,157 | 5,545,500 | 4,148,688 | |||||||
| Research and development | 1,071,143 | 958,798 | 934,209 | |||||||
| General and administrative | 11,565,144 | 7,756,647 | 6,600,133 | |||||||
| Total operating expenses | 17,935,444 | 14,260,945 | 11,683,030 | |||||||
| Loss from operations | (9,945,929 | ) | (6,714,698 | ) | (2,876,713 | ) | ||||
| Interest income | 1,870,512 | 1,976,406 | 1,372,715 | |||||||
| Interest expense, net | (326,304 | ) | (411,154 | ) | (339,688 | ) | ||||
| Net loss before income taxes | (8,401,721 | ) | (5,149,446 | ) | (1,843,686 | ) | ||||
| Benefit for income taxes | (1,453,617 | ) | (1,279,962 | ) | (605,363 | ) | ||||
| Net loss | (6,948,104 | ) | (3,869,484 | ) | (1,238,323 | ) | ||||
| Preferred Stock dividend requirements | (1,399,062 | ) | (1,451,321 | ) | (1,502,887 | ) | ||||
| Net loss applicable to common shareholders | $ | (8,347,166 | ) | $ | (5,320,805 | ) | $ | (2,741,210 | ) |
| Net loss per share - basic and diluted | $ | (0.35 | ) | $ | (0.23 | ) | $ | (0.12 | ) | |
| Weighted average common shares outstanding | 23,727,029 | 23,591,999 | 23,332,277 |
President and Chief Financial Officer
806-2626 or (972) 294-1010