Retractable Technologies, Inc. Results for the Period Ended March 31, 2023
15 Maggio 2023 - 11:16PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports
total net sales of $11.0 million for the first three months of 2023
and an operating loss of $2.7 million for the period, as compared
to total net sales for the same period last year of $44.7 million
and an operating income of $9.7 million. The differences in the
revenues and operating income or loss are largely due to the lack
of syringe sales to the U.S. government for COVID-19 vaccination
efforts. In the first quarter of 2023, Retractable invested
approximately 33% more in sales and marketing expenses, primarily
in travel and trade show expenses as well as increased headcount
for sales representatives, in an effort to improve future revenues.
Retractable reports that domestic demand may be depressed due to
the retention of products previously provided for vaccination
purposes in customers’ inventory.
Retractable experienced significant growth in late 2020 through
early 2022 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 first quarter revenue figures from 2018 –
2023, as obtained from Retractable’s Quarterly Reports on Form 10-Q
as filed with the U.S Securities and Exchange Commission.
Three Months Ended March
31,
(Amounts in millions)
2023
2022
2021
2020
2019
2018
U.S. sales (excluding U.S. government)
$
5.4
$
10.2
$
11.0
$
8.3
$
6.1
$
6.6
Sales to U.S. government
—
15.7
37.8
—
—
—
North and South America sales (excluding
U.S.)
4.8
11.1
0.9
2.8
1.3
1.0
Other international sales
0.8
7.7
0.4
0.1
0.5
0.1
Total sales
$
11.0
$
44.7
$
50.1
$
11.2
$
7.9
$
7.7
Although domestic sales were significantly lower than in the
prior year, international sales were higher than prior to the
COVID-19 pandemic. The increase is attributable to international
vaccination campaigns which lagged domestic vaccination sales by a
year or more.
During the first quarter of 2023, Retractable increased its
investment in U.S. government-backed mutual funds by approximately
$9.0 million and restructured its investments in equity securities
by approximately $6.0 million. These actions were a significant
factor in the decreased cash position in the first quarter of
2023.
Retractable reports the following results of operations for the
three months ended March 31, 2023 and 2022, respectively. Further
details concerning the results of operations, as well as other
matters, are available in Retractable’s Form 10-Q filed on May 15,
2023 with the U.S Securities and Exchange Commission.
Comparison of Three Months Ended March 31,
2023 and March 31, 2022
Domestic sales accounted for 49.3% and 58.0% of the revenues for
the three months ended March 31, 2023 and 2022, respectively.
Domestic revenues decreased 79.1% principally due to the lack of
sales to the U.S. government. Domestic unit sales decreased 77.4%.
Domestic unit sales were 37.7% of total unit sales for the three
months ended March 31, 2023. International revenues decreased
approximately 70.3% predominantly due to fewer orders for
international vaccination campaigns. Overall unit sales decreased
73.0% and our overall revenues decreased by 75.4%.
Cost of manufactured product decreased 72.3% principally due to
lower unit sales. Royalty expense decreased 70.0% due to the
associated decrease in gross revenues.
Operating expenses were relatively unchanged from the first
quarter of 2022 despite lower sales and production levels. Due to
its timing within the quarter, the reduction in force implemented
in March 2023 did not materially affect the first quarter
expenses.
The loss from operations was $2.7 million as compared to income
from operations of $9.7 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 gain on debt and equity securities was $1.5
million due to the increased market values of those securities.
Interest expense for the quarter decreased by approximately 7.5%
from the same period in the prior year due to less imputed interest
associated with the stock exchanges discussed in Note 11 of the
financial statements.
The provision for income taxes was $231 thousand for the first
three months of 2023 as compared to $5.8 million for the first
three months of 2022.
ABOUT RETRACTABLE
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 line distributors.
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: supply chain disruptions,
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 Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20230515005842/en/
Retractable Technologies, Inc. John W. Fort III, 888-806-2626 or
972-294-1010 Vice President, Chief Financial Officer, and Chief
Accounting Officer
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