RETRACTABLE TECHNOLOGIES, INC. REPORTS RECORD SALES FOR 2004
LITTLE ELM, TX, April 13, 2005—Retractable Technologies, Inc. (AMEX: RVP), a leading maker of safety needle devices, today reported record net revenues of $21.5 million for 2004, including reimbursed discounts of $0.4 million, an increase of 12.8% over 2003. Unit sales increased 23.8% over 2003.
The growth in net revenues during 2004 was due to the Company’s increased sales in both the domestic and international markets, including sales made under a previously announced contract with the U.S. government’s Global HIV/AIDS program.
Diluted net earnings per share rose to $2.08, compared with $0.20 for 2003. These results reflect $65.6 million from the settlement, announced July 2, 2004, of Retractable’s federal antitrust lawsuit against Becton Dickinson & Co. (BD). Litigation settlements totaled $74.6 million in 2004 and $13.9 million in 2003.
Gross profit margin was 23.7% in 2004 compared with 23.2% in 2003. Reflecting the receipt of settlement proceeds, working capital grew to $57.2 million at December 31, 2004 from $7.7 million at December 31, 2003. Stockholders’ equity increased to $63.7 million from $15.1 million in 2003.
The loss from operations for 2004 was $8.0 million, an increase of $2.1 million over 2003. The $0.7 million improvement in gross profit was offset by a $2.8 million increase in operating expenses, mostly due to a $1.6 million increase in legal costs incurred in the Company’s successful litigation with BD.
Further details are available on our Form 10-KSB filed on March 31, 2005 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, a feature that is designed to prevent 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.
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 materialize. 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 capacity in the event of a dramatic increase in demand; the Company’s ability to access the market; the Company’s ability to decrease production costs; the Company’s ability to continue to finance research and development as well as operations and expansion of production; the recently increased interest of larger market players, specifically BD, in providing safety needle devices to their customers; 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.
The growth in net revenues during 2004 was due to the Company’s increased sales in both the domestic and international markets, including sales made under a previously announced contract with the U.S. government’s Global HIV/AIDS program.
Diluted net earnings per share rose to $2.08, compared with $0.20 for 2003. These results reflect $65.6 million from the settlement, announced July 2, 2004, of Retractable’s federal antitrust lawsuit against Becton Dickinson & Co. (BD). Litigation settlements totaled $74.6 million in 2004 and $13.9 million in 2003.
Gross profit margin was 23.7% in 2004 compared with 23.2% in 2003. Reflecting the receipt of settlement proceeds, working capital grew to $57.2 million at December 31, 2004 from $7.7 million at December 31, 2003. Stockholders’ equity increased to $63.7 million from $15.1 million in 2003.
The loss from operations for 2004 was $8.0 million, an increase of $2.1 million over 2003. The $0.7 million improvement in gross profit was offset by a $2.8 million increase in operating expenses, mostly due to a $1.6 million increase in legal costs incurred in the Company’s successful litigation with BD.
Further details are available on our Form 10-KSB filed on March 31, 2005 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, a feature that is designed to prevent 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.
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 materialize. 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 capacity in the event of a dramatic increase in demand; the Company’s ability to access the market; the Company’s ability to decrease production costs; the Company’s ability to continue to finance research and development as well as operations and expansion of production; the recently increased interest of larger market players, specifically BD, in providing safety needle devices to their customers; 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.