Full Press Release Details
RETRACTABLE TECHNOLOGIES, INC.
REPORTS $5.8 MILLION IN FIRST QUARTER REVENUES AS UNIT SALES INCREASE 61.5%
ELM, Texas, May 16, 2007 Retractable Technologies, Inc. (AMEX: RVP), a leading
maker of safety needle devices, today reported revenues of $5.8 million for the
three months ended March 31, 2007, an increase of 4.5% over the same 2006
period. Unit sales rose 61.5%. These gains were due largely to higher
international sales volumes, primarily through the Global HIV/AIDS initiative.
loss applicable to common shareholders in the first quarter widened to $2.6
million from $1.0 million in 2006. This resulted from lower average sales
prices, which reduced the profit margin to 21.8% in 2007 from 34.6% in 2006. The Company also incurred higher sales and
marketing expenses as well as general and administrative costs. Sales and
marketing compensation costs and travel and entertainment expense rose as the
Company continued to build its national sales force. General and administrative
costs increased principally due to higher legal costs.
Income tax benefits for
the first quarter of 2007 are fully reserved. In contrast, the benefit for
income taxes of $289,000 in the same period last year consisted primarily of
federal taxes subject to carry back provisions.
State income taxes are also subject to the various states carry back
available in our Form 10-Q filed on May 15, 2007, 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.
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
Factors that could cause
or contribute to such differences include, but are not limited to: the Company s
ability to maintain liquidity; maintenance of the Company s patent protection;
the impact of current litigation; the impact of dramatic increases in demand;
the Company s ability to maintain and quickly increase its production capacity
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
RETRACTABLE TECHNOLOGIES, INC.
CONDENSED BALANCE SHEETS
| December 31, | |||||||
| March 31, 2007 | 2006 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 45,302,332 | $ | 46,814,689 | |||
| Accounts receivable, net | 2,550,762 | 1,956,756 | |||||
| Inventories, net | 6,989,837 | 6,385,780 | |||||
| Income taxes receivable | 2,357,811 | 2,355,732 | |||||
| Other current assets | 336,372 | 267,707 | |||||
| Total current assets | 57,537,114 | 57,780,664 | |||||
| Property, plant, and equipment, net | 12,041,764 | 12,212,140 | |||||
| Intangible assets, net | 376,401 | 279,846 | |||||
| Other assets | 508,898 | 522,294 | |||||
| Total assets | $ | 70,464,177 | $ | 70,794,944 | |||
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 5,591,786 | $ | 4,247,630 | |||
| Current portion of long-term debt | 281,075 | 261,905 | |||||
| Accrued compensation | 632,041 | 472,573 | |||||
| Dividends payable | 979,193 | ||||||
| Marketing fees payable | 1,419,760 | 1,419,760 | |||||
| Accrued royalties to a shareholder | 442,155 | 2,755 | |||||
| Other accrued liabilities | 499,587 | 440,253 | |||||
| Current deferred tax liability | 39,159 | 45,697 | |||||
| Total current liabilities | 9,884,756 | 6,890,573 | |||||
| Long-term debt, net of current maturities | 4,054,542 | 4,137,231 | |||||
| Long-term deferred tax liability | 51,290 | 56,828 | |||||
| Total liabilities | 13,990,588 | 11,084,632 | |||||
| Stockholders equity: | |||||||
| Preferred stock $1 par value: | |||||||
| Series I, Class B | 144,000 | 164,000 | |||||
| Series II, Class B | 224,700 | 224,700 | |||||
| Series III, Class B | 135,245 | 135,245 | |||||
| Series IV, Class B | 553,500 | 553,500 | |||||
| Series V, Class B | 1,338,721 | 1,363,721 | |||||
| Common stock, no par value | |||||||
| Additional paid-in capital | 53,793,468 | 54,709,108 | |||||
| Retained earnings | 283,955 | 2,560,038 | |||||
| Total stockholders equity | 56,473,589 | 59,710,312 | |||||
| Total liabilities and stockholders equity | $ | 70,464,177 | $ | 70,794,944 |
RETRACTABLE TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, 2007 | Three Months Ended March 31, 2006 | ||||||
| Sales, net | $ | 5,773,823 | $ | 3,881,805 | |||
| Reimbursed discounts | 1,640,925 | ||||||
| Total sales | 5,773,823 | 5,522,730 | |||||
| Cost of sales | 4,514,314 | 3,611,190 | |||||
| Gross profit | 1,259,509 | 1,911,540 | |||||
| Total operating expenses: | 3,999,995 | 3,151,972 | |||||
| Loss from operations | (2,740,486 | ) | (1,240,432 | ) | |||
| Interest and other income | 541,197 | 462,197 | |||||
| Interest expense, net | (76,794 | ) | (110,707 | ) | |||
| Net loss before income taxes | (2,276,083 | ) | (888,942 | ) | |||
| Benefit for income taxes | (289,004 | ) | |||||
| Net loss | (2,276,083 | ) | (599,938 | ) | |||
| Preferred stock dividend requirements | (355,051 | ) | (367,078 | ) | |||
| Loss applicable to common shareholders | $ | (2,631,134 | ) | $ | (967,016 | ) | |
| Loss per share - basic and diluted | $ | (0.11 | ) | $ | (0.04 | ) | |
| Weighted average common shares outstanding | 23,676,664 | 23,521,551 |
Vice President and Chief Financial Officer
(888) 806-2626 or (972) 294-1010
Communications Director
(212) 490-0811 or (214) 912-7415 (cell)