Attached files

file filename
8-K - FORM 8-K CURRENT REPORT FOR 02-13-2018 - REPRO MED SYSTEMS INCform_8-k.htm

Exhibit 99.1

 

RMS Medical Products Announces Results for Three, Ten and Twelve Months Ending December 31, 2017

 

Highest reported twelve month net sales and net income in RMS history

 

 

Double digit percentage growth in net sales

 

 

Increased profitability

 

CHESTER, NY / February 13, 2018 / Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) today announced the latest financial results for the three, ten and twelve months ending December 31, 2017.

 

The selected financial results encompass the periods since the Company’s fiscal year ending on February 28, 2017.  To facilitate a period-to-period comparison despite the change in the Company’s fiscal year, the selected financial results also include the three and twelve-month periods ending December 31, 2017 and 2016.

 

Highlights Three Months Ending December 31, 2017 versus 2016

 

44% Increase in Net Sales

39% Increase in Gross Profit

14% Decrease in Operating Expenses as % of Net Sales

10% Increase in Net Income as % of Net Sales

 

 

For the Three Months Ended December 31,

 

 

 

 

 

2017

2016

 

$ Change

 

% Change

 

 

 

 

 

 

 

Net Sales

$4,125,480

$2,871,142

 

$1,254,338

 

43.7%

 

 

 

 

 

 

 

Gross Profit

$2,490,196

$1,790,629

 

$699,567

 

39.1%

Gross Profit as % of Net Sales

60.4%

62.4%

 

 

 

-2.0%

 

 

 

 

 

 

 

Operating Expenses

$2,138,022

$1,878,810

 

$259,212

 

13.8%

Operating Expenses as % of Net Sales

51.8%

65.4%

 

 

 

-13.6%

 

 

 

 

 

 

 

Net Income

$278,370

$(90,492)

 

$368,862

 

N/A

Net Income as % of Net Sales

6.7%

-3.2%

 

 

 

9.9%

 



Highlights Twelve Months Ending December 31, 2017 versus 2016


25% Increase in Net Sales

21% Increase in Gross Profit

12% Decrease in Operating Expenses as % of Net Sales

  7% Increase in Net Income as % of Net Sales

 

 

For the Twelve Months Ended December 31,

 

 

 

 

 

2017

2016

 

$ Change

 

% Change

 

 

 

 

 

 

 

Net Sales

$15,442,712

$12,364,285

 

$3,078,427

 

24.9%

 

 

 

 

 

 

 

Gross Profit

$9,268,107

$7,680,895

 

$1,587,212

 

20.7%

Gross Profit as % of Net Sales

60.0%

62.1%

 

 

 

-2.1%

 

 

 

 

 

 

 

Operating expenses

$8,127,155

$8,011,457

 

$115,698

 

1.4%

Operating expenses as % of Net Sales

52.6%

64.8%

 

 

 

-12.2%

 

 

 

 

 

 

 

Net Income

$819,547

$(216,123)

 

$1,035,670

 

N/A

Net Income as % of Net Sales

5.3%

-1.7%

 

 

 

7.0%

 

Growth in net sales in 2017 was driven principally by increased volume with our existing customers domestically and internationally in all major product categories.  The launch of a new drug generated increased needle sales and we believe the new 510(k) clearance by the FDA for the RMS “Integrated Catch-Up Freedom Syringe Drive Infusion System” on August 31, 2017, which includes specific clearance for Cuvitru® and Hizentra®, also contributed in part to increased sales. Internationally, we gained business in several new countries, a current distributor has expanded its home infusion business, and facilitated subcutaneous immunoglobulin gained traction in Europe.  Also contributing to the 2017 increase was a backlog at December 31, 2016 of $0.3 million, which was filled during the current period. Excluding this backlog, net sales grew 20.2% for the twelve month period ending December 31, 2017.

 

The increase in gross profit was driven by the increase in net sales, which was partially offset by the increase in higher salary and related benefits costs from overtime and the addition of a second shift to meet increased demand.  Furthermore, increased scrap during quality inspections also negatively impacted gross profit and the gross margin.  In January 2018, we implemented a nondestructive testing protocol to reduce scrap.

 

Andy Sealfon, RMS Chief Executive Officer commented, “I am so pleased to announce that due to the outstanding performance and expanded market acceptance of our FREEDOM Syringe Infusion System, as well as the confirmation by the FDA of the unique technology supporting the use of our system for subcutaneous medications including Hizentra® and Cuvitru®, as well as for intravenous uses such as antibiotics, we experienced our best year ever in the Company’s history for net sales and profitability.  With new markets opening, planned introduction of new products this year, multiple new clinical trials underway, and international market expansions, we believe we are well positioned for future growth.”

 

- 2 -



For consistency in disclosure presented in our Form 10-K for the period ending December 31, 2017 as required by SEC regulations, we are providing a presentation of the ten months ending December 31, 2017 versus twelve months ending February 28, 2017 as a result of our fiscal year end change.  The variations in this presentation are due to the comparison of a ten month period versus a twelve month period.  However, net sales in the ten month period were higher than the twelve month period, also due to volume increases with our existing customers domestically and internationally in all major product categories for the same reasons stated above.  See Selected Financial Results attached.

 

About RMS Medical Products

 

The Company manufactures medical products used for home infusions and suctioning. The FREEDOM Syringe Infusion System currently includes the FREEDOM60® and FreedomEdge® Syringe Infusion Drivers, RMS Precision Flow Rate Tubing and RMS HIgH-Flo Subcutaneous Safety Needle Sets. These devices are used for infusions administered in professional healthcare settings as well as at home. The Company’s RES-Q-VAC® line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers.

 

The Company’s website may be visited at www.rmsmedicalproducts.com.

 

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms term “believe” to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s reports and registration statements filed with the Securities and Exchange Commission.  The results of operations for the periods presented herein are not necessarily indicative of the results to be expected in the future.

 

For more information please call:

Mike King

702 650 3000

Princeton Research

SOURCE: RMS Medical Products

 

- 3 -



SELECTED FINANCIAL RESULTS

 

 

 

For the Three Months Ended
December 31,

 

 

 

2017

 

2016

 

 

 

 

 

 

 

 

 

NET SALES

 

$

4,125,480

 

$

2,871,142

 

Cost of goods sold

 

 

1,635,284

 

 

1,080,513

 

Gross Profit

 

 

2,490,196

 

 

1,790,629

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

Selling, general and administrative

 

 

2,057,616

 

 

1,742,701

 

Research and development

 

 

3,023

 

 

52,315

 

Depreciation and amortization

 

 

77,383

 

 

83,794

 

Total Operating Expenses

 

 

2,138,022

 

 

1,878,810

 

 

 

 

 

 

 

 

 

Net Operating Profit/(Loss)

 

 

352,174

 

 

(88,181

)

 

 

 

 

 

 

 

 

Non-Operating (Income)/Expense

 

 

 

 

 

 

 

Interest expense

 

 

 

 

1,930

 

(Income)/loss on foreign currency exchange

 

 

(3,487

)

 

46,820

 

Other expense and interest income, net

 

 

(1,316

)

 

(323

)

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE TAXES

 

 

356,977

 

 

(136,608

)

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

 

(78,607

)

 

46,116

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

278,370

 

$

(90,492

)

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.00

 

Diluted

 

$

0.01

 

$

0.00

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

37,994,298

 

 

37,754,723

 

Diluted

 

 

38,649,178

 

 

37,802,342

 

 

- 4 -



SELECTED FINANCIAL RESULTS

 

 

 

For the Twelve Months Ended
December 31,

 

 

 

2017

 

2016

 

 

 

 

 

 

 

 

 

NET SALES

 

$

15,442,712

 

$

12,364,285

 

Cost of goods sold

 

 

6,174,605

 

 

4,683,390

 

Gross Profit

 

 

9,268,107

 

 

7,680,895

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

Selling, general and administrative

 

 

7,731,972

 

 

7,468,724

 

Research and development

 

 

88,621

 

 

246,551

 

Depreciation and amortization

 

 

306,562

 

 

296,182

 

Total Operating Expenses

 

 

8,127,155

 

 

8,011,457

 

 

 

 

 

 

 

 

 

Net Operating Profit/(Loss)

 

 

1,140,952

 

 

(330,562

)

 

 

 

 

 

 

 

 

Non-Operating (Income)/Expense

 

 

 

 

 

 

 

Interest expense

 

 

 

 

5,298

 

(Income)/loss on foreign currency exchange

 

 

(65,651

)

 

37,594

 

Other expense and interest income, net

 

 

(3,743

)

 

(2,545

)

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE TAXES

 

 

1,210,346

 

 

(370,909

)

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

 

(390,799

)

 

154,786

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

819,547

 

 

(216,123

)

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

$

(0.01

)

Diluted

 

$

0.02

 

$

(0.01

)

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

37,873,755

 

 

37,877,463

 

Diluted

 

 

38,393,836

 

 

37,925,082

 

 

- 5 -



SELECTED FINANCIAL RESULTS

 

 

 

For the Ten Months Ended December 31, 2017

 

For the Twelve Months Ended February 28, 2017

 

 

 

 

 

 

 

 

 

NET SALES

 

$

13,313,894

 

$

12,293,655

 

Cost of goods sold

 

 

5,174,946

 

 

4,724,097

 

Gross Profit

 

 

8,138,948

 

 

7,569,558

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

Selling, general and administrative

 

 

6,594,570

 

 

7,767,712

 

Research and development

 

 

50,587

 

 

237,486

 

Depreciation and amortization

 

 

257,257

 

 

300,611

 

Total Operating Expenses

 

 

6,902,414

 

 

8,305,809

 

 

 

 

 

 

 

 

 

Net Operating Profit/(Loss)

 

 

1,236,534

 

 

(736,251

)

 

 

 

 

 

 

 

 

Non-Operating (Income)/Expense

 

 

 

 

 

 

 

Interest expense

 

 

 

 

1,886

 

(Income)/loss on foreign currency exchange

 

 

(68,566

)

 

41,499

 

Other expense and interest income, net

 

 

(2,420

)

 

(2,937

)

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE TAXES

 

 

1,307,520

 

 

(776,699

)

 

 

 

 

 

 

 

 

Income Tax (Expense) Benefit

 

 

(402,563

)

 

241,700

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

904,957

 

$

(534,999

)

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

$

(0.01

)

Diluted

 

$

0.02

 

$

(0.01

)

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

37,897,632

 

 

37,830,581

 

Diluted

 

 

38,445,482

 

 

37,878,201

 

 

- 6 -