Full Press Release Details
RETRACTABLE TECHNOLOGIES, INC. RESULTS FOR THE
PERIODS ENDED JUNE 30, 2022
LITTLE ELM, TEXAS, August 15, 2022 - Retractable
Technologies, Inc. (NYSE American: RVP) reports that its operating income was $7.7 million for the first six months of 2022 and that it
had an operating loss of $2.1 million for the second quarter of 2022, as compared to an operating income for the same periods last year
of $36.1 million for the first six months of 2021 and an operating income of $12.7 million for the second quarter of 2021. Total net sales
were $14.3 million for the three months ended June 30, 2022 and $59.1 million for the six months ended June 30, 2022. In comparison, total
net sales were $42.5 million for the three months ended June 30, 2021 and $92.6 million for the six months ended June 30, 2021. The differences
in the revenues are largely due to the lack of second quarter sales to the U.S. government, offset by higher international sales. Although
total revenues for the three and six months ended June 30, 2022 were significantly lower than the same periods in the prior year, sales
to non-U.S. government domestic customers for both the first and second quarters of 2022 were higher than any quarter in the two years
immediately prior to the COVID-19 pandemic.
While Retractable continues to work with its contacts
at the U.S. Department of Health and Human Services, additional orders are uncertain.
International sales increased significantly in
the periods ended June 30, 2022, with additional international orders accepted but delayed as of June 30, 2022 due to recent and temporary
closures in China as a result of COVID-19 measures.
Retractable experienced significant growth in
2021 and late 2020 due to material orders from the U.S. government to supply syringes for COVID-19 vaccination efforts. Such orders included
payment for certain freight charges as well. As a result, comparability to revenues and expenses in recent years may be challenging. Below
are second quarter revenue figures from 2018 - 2022, as obtained from Retractable's Quarterly Reports on Form 10-Q as filed
with the U.S Securities and Exchange Commission.
| Three Months Ended June 30, | ||||||||||||||||||||
| (Amounts in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||||
| U.S. sales (excluding U.S. government) | $ | 9.5 | $ | 12.7 | $ | 9.4 | $ | 7.8 | $ | 6.3 | ||||||||||
| Sales to U.S. government | - | 27.4 | - | - | - | |||||||||||||||
| North and South America sales (excluding U.S.) | 4.3 | 1.5 | 2.0 | 1.2 | 0.8 | |||||||||||||||
| Other international sales | 0.5 | 0.9 | 0.2 | 0.6 | 0.4 | |||||||||||||||
| Total sales | $ | 14.3 | $ | 42.5 | $ | 11.6 | $ | 9.6 | $ | 7.5 |
Retractable reports the following results of operations
for the three and six months ended June 30, 2022 and 2021, respectively. Further details concerning the results of operations, as well
as other matters, are available in Retractable's Form 10-Q filed on August 15, 2022 with the U.S Securities and Exchange Commission.
Comparison of Three Months Ended June
30, 2022 and June 30, 2021
Domestic sales accounted for 66.7% and 94.3% of
the revenues for the three months ended June 30, 2022 and 2021, respectively. Domestic revenues decreased 76.1% principally due to the
lack of second quarter sales to the U.S. government. Domestic unit sales decreased 79.8%. Domestic unit sales were 51.4% of total unit
sales for the three months ended June 30, 2022. International revenues increased approximately 97.5% predominately due to international
vaccination campaigns. Overall unit sales decreased 64.1%.
Cost of manufactured product decreased 51.7% principally
due to lower volumes. Royalty expense decreased 65.1% due to decreased gross sales.
Operating expenses decreased 18.1% from the prior
year. This is substantially due to lower consulting costs.
The loss from operations was $2.1 million compared
to income from operations of $12.7 million for the same period last year. The decrease was due to an overall decrease in revenues and
because per-unit costs have risen with lower production levels.
The unrealized loss on equity securities was $3.9
million due to the decreased market values of those securities.
The benefit for income taxes was $1.6 million
for the second quarter of 2022 in comparison to the provision for income taxes of $3.5 million in the second quarter of 2021.
Comparison of Six Months Ended June
30, 2022 and June 30, 2021
Domestic sales, including sales to the U.S. government,
accounted for 60.1% and 96.0% of the revenues for the six months ended June 30, 2022 and 2021, respectively. Domestic revenues decreased
60.0% principally due to lower sales to the U.S. government. Domestic unit sales decreased 63.0%. Domestic unit sales were 46.5% of total
unit sales for the six months ended June 30, 2022. Domestic unit sales excluding the U.S. government sales decreased approximately 32.3%.
International revenues increased approximately 529.1% predominately due to first-quarter purchases from a non-governmental humanitarian
organization for international vaccination campaigns. Overall unit sales decreased 25.5%.
Cost of manufactured product decreased 7.7% principally
due to lower volumes. Royalty expense decreased 37.1% due to decreased gross sales.
Operating expenses were largely unchanged from
Income from operations was $7.7 million compared
to income from operations of $36.1 million for the same period last year. The decrease was due to an overall decrease in revenues and
because per-unit costs have risen with lower production levels.
The unrealized loss on equity securities was $572
thousand due to the decreased market values of those securities.
The provision for income taxes decreased to $4.2
million for the first six months of 2022 from $10.1 million in the first six months of 2021.
Retractable manufactures and markets VanishPoint
and Patient Safe safety medical products and the EasyPoint needle. The VanishPoint syringe,
blood collection, and IV catheter products are designed to prevent needlestick injuries and product reuse by retracting the needle directly
from the patient, effectively reducing exposure to the contaminated needle. Patient Safe syringes are uniquely designed
to reduce the risk of bloodstream infections resulting from catheter hub contamination. The EasyPoint is a retractable
needle that can be used with luer lock syringes, luer slip syringes, and prefilled syringes to give injections. The EasyPoint
needle also can be used to aspirate fluids and for blood collection. Retractable's products are distributed by various specialty and general
For more information on Retractable, visit its
website at www.retractable.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 Retractable's current
views with respect to future events. Retractable believes that the expectations reflected in such forward-looking statements are accurate.
However, Retractable cannot assure you that such expectations will materialize. Actual future performance could differ materially from
Factors that could cause or contribute to
such differences include, but are not limited to: the impact of COVID-19 on all facets of logistics and operations, as well as
costs, Retractable's ability to scale up production volumes in response to an increase in demand, potential tariffs,
Retractable's ability to maintain liquidity; Retractable's maintenance of patent protection; Retractable's ability to maintain
favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; Retractable's ability to access
the market; production costs; the impact of larger market players in providing devices to the safety market; and other risks and
uncertainties that are detailed from time to time in Retractable's periodic reports filed with the U.S. Securities and Exchange
Retractable Technologies, Inc.
John W. Fort III, 888-806-2626 or 972-294-1010
Vice President, Chief Financial Officer, and Chief