Full Press Release Details
RETRACTABLE TECHNOLOGIES, INC. REPORTS 30.1 PERCENT INCREASE IN SALES IN THE FIRST QUARTER
LITTLE ELM, TX May 17, 2006 Retractable Technologies, Inc. (AMEX:RVP), a leading maker of safety needle devices, today reported $5.5 million in total
sales for the three months ended March 31, 2006, a 30.1 percent increase over the same period last year. This increase, which boosted gross profit for the quarter to $1.9 million from $1.5 million in the year-ago period, resulted from higher
sales in the U. S. market.
Domestic sales increased 36.7 percent while international sales dropped 10.9 percent; combined unit sales for the domestic and
international markets rose 16.9 percent. International sales declined in the first quarter of 2006 due to lower shipments under the Bush Administration s global HIV/AIDS initiative compared with the same period last year. The timing of
shipments, and therefore the Company s recognition of revenues, under this program vary from quarter to quarter depending in part on logistical requirements in Africa and the Caribbean.
Largely because of a 25.3 percent increase in operating expenses, including higher sales and marketing and research and development costs in the quarter, the Company
posted an operating loss of $1.2 million. The increase in sales and marketing expense resulted primarily from the hiring of additional sales personnel, whereas the increase in R&D costs was due mainly to consulting expenditures and costs
associated with the development of the new VanishPoint safety intravenous (I.V.) catheter. General and administrative costs also rose because of higher compensation, travel and legal expenses.
The Company s balance sheet remains strong with cash making up $51.6 million, or 70.6 percent, of total assets. Further details are available on the Company s Form 10-Q/A filed with the Securities and
Exchange Commission.
Retractable 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.
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 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 statements. Factors that could cause or contribute to such differences
include, but are not limited to: the impact of dramatic increases in demand; the Company s ability to quickly increase its capacity in the event of a dramatic increase in demand; the Company s ability to access the market; the
Company s ability to reduce production costs; the Company s ability to continue to finance research and development as well as operations and expansion of production; the recently increased interest of larger market players, specifically
BD, 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.
RETRACTABLE TECHNOLOGIES, INC.
CONDENSED BALANCE SHEETS
| March 31, 2006 | December 31, 2005 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 51,561,260 | $ | 52,513,935 | ||
| Accounts receivable, net | 2,821,074 | 3,404,908 | ||||
| Inventories, net | 3,453,737 | 3,297,726 | ||||
| Income taxes receivable | 916,502 | 561,062 | ||||
| Current deferred tax asset | 1,135,327 | 1,245,508 | ||||
| Other current assets | 626,903 | 462,150 | ||||
| Total current assets | 60,514,803 | 61,485,289 | ||||
| Property, plant, and equipment, net | 12,171,697 | 11,925,976 | ||||
| Intangible assets, net | 306,512 | 316,926 | ||||
| Other assets | 26,075 | 27,334 | ||||
| Total assets | $ | 73,019,087 | $ | 73,755,525 | ||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 2,381,387 | $ | 2,345,613 | ||
| Current portion of long-term debt | 246,234 | 295,417 | ||||
| Accrued compensation | 530,508 | 388,726 | ||||
| Marketing fees payable | 1,419,760 | 1,419,760 | ||||
| Accrued royalties to a shareholder | 369,228 | 540,888 | ||||
| Other accrued liabilities | 334,729 | 467,812 | ||||
| Total current liabilities | 5,281,846 | 5,458,216 | ||||
| Long-term debt, net of current maturities | 4,300,638 | 4,350,625 | ||||
| Long-term deferred tax liability | 770,717 | 711,443 | ||||
| Total liabilities | 10,353,201 | 10,520,284 | ||||
| Stockholders equity: | ||||||
| Preferred stock $1 par value: | ||||||
| Series I, Class B | 171,000 | 171,000 | ||||
| Series II, Class B | 242,700 | 255,200 | ||||
| Series III, Class B | 135,245 | 135,245 | ||||
| Series IV, Class B | 556,000 | 556,000 | ||||
| Series V, Class B | 1,381,221 | 1,381,221 | ||||
| Common Stock, no par value | ||||||
| Additional paid-in capital | 54,350,136 | 54,307,053 | ||||
| Retained Earnings | 5,829,584 | 6,429,522 | ||||
| Total stockholders equity | 62,665,886 | 63,235,241 | ||||
| Total liabilities and stockholders equity | $ | 73,019,087 | $ | 73,755,525 |
RETRACTABLE TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF OPERATIONS - (Unaudited)
| Three months ended March 31, 2006 | Three months ended March 31, 2005 | |||||||
| Sales, net | $ | 3,881,805 | $ | 4,063,874 | ||||
| Reimbursed discounts | 1,640,925 | 180,300 | ||||||
| Total sales | 5,522,730 | 4,244,174 | ||||||
| Cost of sales | ||||||||
| Cost of manufactured product | 3,241,962 | 2,417,016 | ||||||
| Royalty expense to a shareholder | 369,228 | 314,619 | ||||||
| Total cost of sales | 3,611,190 | 2,731,635 | ||||||
| Gross profit | 1,911,540 | 1,512,539 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 1,113,006 | 940,383 | ||||||
| Research and development | 315,195 | 119,094 | ||||||
| General and administrative | 1,723,771 | 1,455,782 | ||||||
| Total operating expenses | 3,151,972 | 2,515,259 | ||||||
| Loss from operations | (1,240,432 | ) | (1,002,720 | ) | ||||
| Interest income | 462,197 | 252,139 | ||||||
| Interest expense, net | (110,707 | ) | (62,413 | ) | ||||
| Net loss before income taxes | (888,942 | ) | (812,994 | ) | ||||
| Provision (benefit) for income taxes | (289,004 | ) | (290,059 | ) | ||||
| Net loss | (599,938 | ) | (522,935 | ) | ||||
| Preferred Stock dividend requirements | (367,078 | ) | (381,345 | ) | ||||
| Loss applicable to common shareholders | $ | (967,016 | ) | $ | (904,280 | ) | ||
| Loss per share - basic and diluted | $ | (0.04 | ) | $ | (0.04 | ) | ||
| Weighted average common shares outstanding | 23,521,551 | 23,203,665 |
Vice President and Chief Financial Officer
(888) 806-2626 or (972) 294-1010
Communications Director
(212) 490-0811 or (214) 912-7415 (cell)