LITTLE ELM, Texas–(BUSINESS WIRE)–Retractable Technologies, Inc. (NYSE American: RVP) reports the
following results of operations for the three months ended March 31,
2019 as compared to results for the same period in the prior year.
Domestic sales accounted for 77.4% and 86.0% of our revenues for the
three months ended March 31, 2019 and 2018, respectively. Domestic
revenues decreased 6.9% principally due to lower volumes and lower
average selling prices. Domestic unit sales decreased 0.9%. Domestic
unit sales were 69.1% of total unit sales for the three months ended
March 31, 2019. International unit sales and revenues increased 45.3%
and 66.6%, respectively, due to higher volumes and higher average
selling prices. Our international orders may be subject to significant
fluctuation over time. Overall unit sales increased 9.9%.
Gross profit decreased 12.9% primarily due to higher cost of
The average cost of manufactured products sold per unit increased by
4.0% due to an increase in international units sold as a percentage of
total units. Profit margins can fluctuate depending upon, among other
things, the cost of manufactured product and the capitalized cost of
product recorded in inventory, as well as product sales mix. Royalty
expense increased 5.3% due to increased gross sales.
Operating expenses decreased 11.7% or $351 thousand. The decrease was
primarily due to a reduction in payroll costs as a result of a workforce
reduction in the fourth quarter of 2018.
Our operating loss was $175 thousand compared to an operating loss of
$157 thousand for the same period last year. The increase was due
primarily to the higher cost of manufactured products.
Cash comprises 11.9% of total assets. Working capital was $15.2 million
at March 31, 2019, essentially unchanged from December 31, 2018.
Cash used by operations was $716 thousand for the three months ended
March 31, 2019 due primarily to a decrease in accounts payable and other
accrued liabilities, partially offset by a decrease in accounts
Further details concerning the results of operations as well as other
matters are available in Retractable’s Form 10-Q filed on May 15, 2019
with the U.S. Securities and Exchange Commission.
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 such statements.
Factors that could cause or contribute to such differences include, but
are not limited to: 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 quickly increase capacity in response to an increase in
demand; Retractable’s ability to access the market; Retractable’s
ability to maintain or lower production costs; Retractable’s ability to
continue to finance research and development as well as operations and
expansion of production; 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 Commission.
Retractable Technologies, Inc.
John W. Fort III, 888-806-2626 or
Vice President, Chief Financial Officer, and Chief