Retractable Technologies, Inc. Announces Significant Revenue Increase for 2001
LITTLE ELM, Texas–(BW HealthWire)–April 3, 2002–Retractable Technologies, Inc. (AMEX:RVP – news; “Retractable’) a leading maker of safety needle devices, today reported record sales for the year ended December 31, 2001.
Net revenues for the year ended December 31, 2001 were $16,145,635, an increase of 67.5% over the $9,641,451 reported in 2000. The sharp growth in sales for the twelve months ended December 31, 2001 was accompanied by significant gains in operating efficiency. Gross margins for 2001 increased to 17.5% of net revenues from 8.6% a year ago.
The improvement in gross margin from 8.6% in 2000 to 17.5% in 2001 is due to the increased revenues and corresponding positive effect on reduction of unit costs achieved through higher production. A 67.5% increase in 2001 revenues over 2000 revenues resulted in a 103.5% increase in gross margin percentage. Assuming continued increases in revenue, we would expect this positive trend in the Company’s gross margin to continue due to our low variable costs of production. For example, a 50% increase from our 2001 revenues would improve the gross margin from the current 17.5% to an estimated 31%, an increase of approximately 77%.
Operating expenses (excluding a one-time charge of IPO costs of $563,912) decreased $2,298,176 for the twelve months ended December 31, 2001 from the same period last year. Operating expenses (excluding IPO costs) as a percentage of net revenues decreased from 117% to 56%.
Retractable incurred expenses of $563,912 in connection with its public offering, which was declared effective by the Securities and Exchange Commission on May 3, 2001. On September 20, 2001 Retractable filed a post-effective amendment to withdraw Retractable’s offering of 2,000,000 shares of common stock. Effective with the decision to withdraw this offering, Retractable expensed all deferred IPO costs, resulting in a charge in 2001 of $563,912.
For a detailed discussion of financial performance for the twelve months ended December 31, 2001, see Management’s Discussion and Analysis in the Form 10-KSB filed April 1, 2002, 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. VanishPoint® safety needle devices are distributed to the acute care hospital market by Abbott Laboratories (NYSE:ABT – news) and to the alternate care market by various specialty and general line distributors. For more information on Retractable, visit our Web site at www.vanishpoint.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 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 occur. The company’s actual future performance could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of dramatic increases in demand, the company’s ability to 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 continue to finance research and development as well as operations and expansion of production through equity and debt financing, as well as sales, the increased interest of larger market players 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.
Contact:
Retractable Technologies, Inc.
Investor Contact:
Douglas W. Cowan, 888/806-2626 or 972/294-1010
rtifinancial@vanishpoint.com
or
Media Contact:
Phillip L. Zweig, 212/490-0811 or 214/912-7415 (cell)
plzweig@aol.com
Net revenues for the year ended December 31, 2001 were $16,145,635, an increase of 67.5% over the $9,641,451 reported in 2000. The sharp growth in sales for the twelve months ended December 31, 2001 was accompanied by significant gains in operating efficiency. Gross margins for 2001 increased to 17.5% of net revenues from 8.6% a year ago.
The improvement in gross margin from 8.6% in 2000 to 17.5% in 2001 is due to the increased revenues and corresponding positive effect on reduction of unit costs achieved through higher production. A 67.5% increase in 2001 revenues over 2000 revenues resulted in a 103.5% increase in gross margin percentage. Assuming continued increases in revenue, we would expect this positive trend in the Company’s gross margin to continue due to our low variable costs of production. For example, a 50% increase from our 2001 revenues would improve the gross margin from the current 17.5% to an estimated 31%, an increase of approximately 77%.
Operating expenses (excluding a one-time charge of IPO costs of $563,912) decreased $2,298,176 for the twelve months ended December 31, 2001 from the same period last year. Operating expenses (excluding IPO costs) as a percentage of net revenues decreased from 117% to 56%.
Retractable incurred expenses of $563,912 in connection with its public offering, which was declared effective by the Securities and Exchange Commission on May 3, 2001. On September 20, 2001 Retractable filed a post-effective amendment to withdraw Retractable’s offering of 2,000,000 shares of common stock. Effective with the decision to withdraw this offering, Retractable expensed all deferred IPO costs, resulting in a charge in 2001 of $563,912.
For a detailed discussion of financial performance for the twelve months ended December 31, 2001, see Management’s Discussion and Analysis in the Form 10-KSB filed April 1, 2002, 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. VanishPoint® safety needle devices are distributed to the acute care hospital market by Abbott Laboratories (NYSE:ABT – news) and to the alternate care market by various specialty and general line distributors. For more information on Retractable, visit our Web site at www.vanishpoint.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 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 occur. The company’s actual future performance could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of dramatic increases in demand, the company’s ability to 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 continue to finance research and development as well as operations and expansion of production through equity and debt financing, as well as sales, the increased interest of larger market players 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.
Contact:
Retractable Technologies, Inc.
Investor Contact:
Douglas W. Cowan, 888/806-2626 or 972/294-1010
rtifinancial@vanishpoint.com
or
Media Contact:
Phillip L. Zweig, 212/490-0811 or 214/912-7415 (cell)
plzweig@aol.com