Retractable Technologies, Inc. Results for the Period Ended March 31, 2025
Unrealized losses on investments were a significant factor in the computation of net income for the first quarter of 2025.
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 – 2025, as obtained from Retractable's Quarterly Reports on Form 10-Q as filed with the U.S Securities and Exchange Commission.
Retractable reports the following results of operations for the three months ended March 31, 2025 and 2024, 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, 2025 with the U.S Securities and Exchange Commission.
Comparison of Three Months Ended March 31, 2025 and March 31, 2024
Domestic sales accounted for 89.6% and 87.4% of total revenues for the three months ended March 31, 2025 and 2024, respectively. Domestic revenues increased 11.9%, while domestic unit sales increased 17.2%. Domestic unit sales represented 84.9% of total unit sales for the three months ended March 31, 2025. The increase in unit sales did not translate into a proportional increase in domestic revenues, primarily due to a decrease in average selling price, which was largely impacted by higher transaction costs associated with distributor agreements.
International revenues for the three months ended March 31, 2025 remained consistent compared to the same period in 2024. However, average selling price per unit declined relative to the first quarter of 2024, primarily due to a shift in product mix. International sales for the three months ended March 31, 2024 included a higher proportion of premium-priced Blood Collection Sets and Easy Point Needles, which typically yield higher average selling price. There remains uncertainty regarding the timing of future international orders.
Overall, units sales increased 18.9%.
Cost of manufactured product increased 50.3% principally due to an increase in tariffs and additional period costs related to increased domestic production activities. Royalty expense increased 8.8% primarily due to the increase in gross sales, slightly offset by a decrease in royalties received from sublicenses.
Tariffs are expected to continue to materially increase our costs in future periods. Approximately $1.5 million was spent on tariff expenses in the first quarter of 2025. These costs are included in Cost of manufactured product.
Operating expenses decreased 4.3%. The decrease was primarily driven by lower legal and litigation fees, as well as a reduction in outside accounting fees.
The loss from operations was $4.7 million compared to a loss of approximately $3 million for the same period last year. The increased loss was due to lower gross profit for the current period.
The unrealized loss on debt and equity securities was $7.2 million due to the decreased market values of those securities.
The provision for income taxes was $286 thousand as compared to a provision for income taxes of $86 thousand for the same period in 2024. The difference is primarily related to fully reserving the deferred tax asset in the second quarter of 2024.
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: tariffs; material changes in demand; 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
4 minutes ago
- New York Post
LI franchisees of Dickey's Barbecue Pit roast chain for money woes in scathing lawsuit: ‘Worst financial decision I ever made'
This place turned out to be a money pit. A national barbecue chain is being taken to court by numerous franchisees for allegedly misleading them with claims of sweet profits that turned out to be all smoke and mirrors — and several New York based investors say they are among those who got their nest eggs roasted. 'It was the worst financial decision I ever made,' said Scott Raifer, of his decision to buy a Dickey's Barbecue Pit franchise and open it in Freeport, Long Island. 3 National barbecue chain Dickey's Barbecue Pit is being taken to court by franchisees over misleading claims. Facebook/Dickey's Barbecue Pit – Freeport Raifer said he is now $500,000 in debt and facing foreclosure on his home after taking out a Small Business Administration loan to open the eatery in December 2020 during the COVID-19 pandemic. It closed in June 2022 — less than two years later. 'I was under the incorrect assumption that we were in business together — if I did well, they did well,' said Raifer, 58, of Plainview. 'I learned that if they did well, it was at the franchisee's expense.' Raifer said he felt pressured by the company to get the location 'up and running' quickly. An estimate from a Dickey's-preferred construction vendor, he said, was 'triple the price' of what he ultimately paid after hiring his own contractors. 'I spent half a million dollars building the place,' said Raifer, who is not part of the lawsuit and has not brought legal action against the company citing lack of resources. Raifer said the $16,000 smoker he bought from a Dickey's-approved vendor repeatedly malfunctioned. When he emailed the company for guidance in January 2021, he said he was reprimanded for including senior executives on the message. 'When I told them that I wanted to sell, they said most of their stores sell for $25,000,' Raifer said. 3 Long Island franchisee Scott Raifer sent an email about the $16,000 smoker he bought from a Dickey's-approved vendor repeatedly malfunctioning, and was reprimanded for including senior executives on the message. Facebook/Dickey's Barbecue Pit – Freeport He said he reached a breaking point when Dickey's headquarters took over his online menu and kept items listed after he had run out, creating confusion for delivery drivers and online customers — a claim the company denies. 'I ended up closing and walking away,' Raifer said. 'Now I owe all this money and I'm losing my house.' Jerry Stephan, another former franchisee, opened a 2,150-square-foot Dickey's location in Centereach, Long Island, in September 2020. A 2018 article on Dickey's corporate website announced that Stephan planned to 'bring 21 locations to New York state.' After paying approximately $20,000 to buy into the franchise, Stephan, a construction contractor, said Dickey's later backed out of the store development deal without explanation. 'They got amnesia and said they weren't allowed to set up the agreement we had legally, so they circumvented that,' Stephan said. 'I was going to build and get a piece of all the other stores. I was planning on that for retirement.' Stephan, who previously owned Long Island's first Quiznos sandwich shop, said the requirement to buy from Dickey's approved vendors and pay marketing fees — which he said yielded little actual promotion — cut into his bottom line. 'I bought stuff through their distributor that was much cheaper elsewhere,' he said. 'Their franchise agreement is ironclad. They've got you by the horns.' Every morning, the NY POSTcast offers a deep dive into the headlines with the Post's signature mix of politics, business, pop culture, true crime and everything in between. Subscribe here! Stephan considered legal action but instead sold his location for 'half' of what he believed it was worth. 'If franchisees budget $500,000 and it costs $800,000 to open, they rack up credit card debt, take second mortgages, and are destined to fail by the time they open,' said Keith Miller, a franchise advocacy consultant. Dozens of Dickey's franchisee's nationwide have filed lawsuits and complaints to the Federal Trade Commission stating the company made false or misleading statements or omitted facts in a prospectus and franchise registration application materials. Some 'pit owners' say they fell so far into debt they closed their shops in less than a year and others owe creditors as much as $1,000,000, according to the New York Times. 3 Dickey's CEO Laura Rea Dickey said Stephan was released from his development deal after failing to meet 'benchmarks' at his store that would have moved him 'beyond being an owner-operator of his own locations.' Instagram/@lauradickeyceo On July 24, the Securities Commissioner within the Maryland Attorney General's office ruled that Dickey's made an improper disclosure by not including contact information for past franchisees on Financial Disclosure Documents in 80 cases. The ruling was separate from the suit. Former franchisees said they were required to pay monthly royalties of 5% and marketing fees of 4% — amounts experts say are on the high end of industry standards. Dickey's said they charge a 'standard 6 percent for royalties and 3% for marketing.' 'Royalties and marketing fees take a nice chunk of your profit,' said Jason Kaplan, CEO of JK Consulting, which advises restaurant owners worldwide. 'The issue becomes making the numbers work without that money.' Raifer, Stephan, and other former operators said they hope speaking out will bring more transparency to the franchise industry. Dickey's CEO Laura Rea Dickey said Stephan was released from his development deal after failing to meet 'benchmarks' at his store that would have allowed him to 'move beyond being an owner-operator of his own locations.' She also mentioned that Raifer's store had received poor online customer feedback and low scores in company audits. Dickey's said it does not collect commissions from the sale of equipment or goods to franchisees. Not all franchisees are unhappy. Gary Mulligan, who owns a Dickey's location in Whiting, New Jersey, said he invested $700,000 in his store and is satisfied with the partnership. 'Dickey's is very responsive to me,' Mulligan said. 'I feel like they're family.'
Bloomberg
35 minutes ago
- Bloomberg
Computer-Driven Traders Are Bullish on Stocks, Humans Are Bears
The thing about trading stocks is everyone has an opinion. And right now there's an unusual divergence in the market that's as stark as man versus machine. Computer-guided traders haven't been this bullish on stocks compared to their human counterparts since early 2020, before the depths of the Covid pandemic, according to Parag Thatte, a strategist at Deutsche Bank AG.
Epoch Times
44 minutes ago
- Epoch Times
Hong Kong Court Freezes $1.8 Billion Linked to Inheritance Feud
Hong Kong's High Court has barred Wahaha chairwoman Kelly Zong Fuli from accessing a $1.8 billion HSBC account—assets which lie at the heart of an inheritance dispute involving China's largest private beverage company. Deputy High Court Judge Gary CC Lam on Aug. 1 granted the freeze order, which will remain in place pending rulings by the Hangzhou court, as key issues hinge on mainland Chinese law, according to the 42-page ruling.
