Full Press Release Details
TECHNOLOGIES, INC. REPORTS NINE MONTHS 2007 SALES OF $19.1 MILLION
LITTLE ELM, Texas, November 16, 2007 Retractable Technologies,
Inc. (AMEX: RVP), a leading maker of safety needle devices, today reported
revenues of $8.0 million and $19.1 million for the three and nine months ended
September 30, 2007, respectively, an increase from the same 2006 periods. The
increase in total revenues from the year-ago quarter was due largely to higher
average sales prices mitigated slightly by lower unit sales in domestic
markets. In the first nine months, overall unit sales rose 3.9%, principally
due to higher international unit sales. International sales tend to fluctuate
because of the timing of orders under the President s Global HIV/AIDS initiative.
loss applicable to common shareholders in the third quarter declined from $1.6
million in 2006 to $936,000 in the 2007 period. For the first nine months, the
loss increased to $5.5 million in 2007 from $3.1 million in 2006. The third
quarter gross profit increased in 2007 and was flat for the nine-month period
compared to the same periods last year. Operating expenses rose principally
because of higher legal costs. In the third quarter, the gross profit margin
increased to 27.2% from 22.3% in 2006, but declined in the nine-month period
from 31.5% in 2006 to 29.3% in 2007.
The Company s effective tax rates (a benefit for all periods) on the
net loss before income taxes were 70.5% and 23.9% for the three and nine months
ended September 30, 2007 compared with 30.3 % and 33.5 % for the three and nine
months ended September 30, 2006, respectively. The effective tax rates for the
three and nine months ended September 30, 2007 were attributable to the net
effect of a settlement in our favor of a state tax audit for prior years that
had not yet been recognized. All other tax benefits in 2007 have been fully
details are available in the Company s Form 10-Q filed on November 14, 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 accidental needlestick injury to
healthcare workers and device 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.
cannot assure you that such expectations will materialize. The Company s actual
future performance could differ materially from such statements.
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 in the event of a dramatic increase in demand; the Company s
ability to access the market; the Company s ability to maintain or lower
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 &
Co., in providing safety needle devices; 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
| September 30, 2007 | December 31, 2006 | ||||
| (unaudited) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $38,592,760 | $46,814,689 | |||
| Accounts receivable, net | 3,238,764 | 1,956,756 | |||
| Inventories, net | 7,170,482 | 6,385,780 | |||
| Income taxes receivable | 3,850,144 | 2,355,732 | |||
| Other current assets | 761,934 | 267,707 | |||
| Total current assets | 53,614,084 | 57,780,664 | |||
| Property, plant and equipment, net | 11,637,647 | 12,212,140 | |||
| Intangible assets, net | 378,656 | 279,846 | |||
| Other assets | 506,897 | 522,294 | |||
| Total assets | $66,137,284 | $70,794,944 | |||
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||
| Current liabilities | $8,000,917 | $6,890,573 | |||
| Long-term debt, net of current maturities | 3,865,245 | 4,137,231 | |||
| Long-term deferred tax liability | 40,972 | 56,828 | |||
| Total liabilities | 11,907,134 | 11,084,632 | |||
| Stockholders equity: | |||||
| Preferred stock $1 par value: | 2,334,916 | 2,441,166 | |||
| Common stock, no par value | - | - | |||
| Additional paid-in capital | 53,803,223 | 54,709,108 | |||
| Retained earnings (deficit) | (1,907,989) | 2,560,038 | |||
| Total stockholders equity | 54,230,150 | 59,710,312 | |||
| Total liabilities and stockholders equity | $66,137,284 | $70,794,944 |
RETRACTABLE TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
| Three Months Ended September 30, 2007 | Three Months Ended September 30, 2006 | Nine Months Ended September 30, 2007 | Nine Months Ended September 30, 2006 | ||||||
| Sales, net | $8,040,127 | $5,331,748 | $19,088,932 | $14,514,997 | |||||
| Reimbursed discounts | 651,225 | 4,427,312 | |||||||
| Total sales | 8,040,127 | 5,982,973 | 19,088,932 | 18,942,309 | |||||
| Cost of sales | |||||||||
| Cost of manufactured product | 5,228,549 | 3,989,549 | 12,031,550 | 11,471,875 | |||||
| Royalty expense to shareholders | 624,967 | 660,076 | 1,468,292 | 1,501,742 | |||||
| Total cost of sales | 5,853,516 | 4,649,625 | 13,499,842 | 12,973,617 | |||||
| Gross profit | 2,186,611 | 1,333,348 | 5,589,090 | 5,968,692 | |||||
| Operating expenses: | |||||||||
| Sales and marketing | 1,334,680 | 1,379,260 | 4,025,682 | 3,957,205 | |||||
| Research and development | 375,264 | 249,204 | 796,979 | 745,607 | |||||
| General and administrative | 2,906,156 | 1,843,059 | 7,894,510 | 5,409,883 | |||||
| Total operating expenses | 4,616,100 | 3,471,523 | 12,717,171 | 10,112,695 | |||||
| Loss from operations | (2,429,489) | (2,138,175) | (7,128,081) | (4,144,003) | |||||
| Interest and other income | 521,226 | 512,828 | 1,511,121 | 1,463,904 | |||||
| Interest expense, net | (86,235) | (127,950) | (257,427) | (366,642) | |||||
| Net loss before income taxes | (1,994,498) | (1,753,297) | (5,874,387) | (3,046,741) | |||||
| Benefit for income taxes | (1,406,360) | (530,587) | (1,406,360) | (1,020,786) | |||||
| Net loss | (588,138) | (1,222,710) | (4,468,027) | (2,025,955) | |||||
| Preferred stock dividend requirements | (348,147) | (361,381) | (1,052,398) | (1,092,563) | |||||
| Loss applicable to common shareholders | $(936,285) | $(1,584,091) | $(5,520,425) | $(3,118,518) | |||||
| Loss per share basic and diluted | $(0.04) | $(0.07) | $(0.23) | $(0.13) | |||||
| Weighted average common shares outstanding | 23,745,206 | 23,618,164 | 23,717,845 | 23,577,944 |
Vice President and Chief Financial Officer
(888) 806-2626 or (972) 294-1010