Retractable Technologies, Inc. (NYSE:RVP)

Retractable Technologies, Inc. (NYSE:RVP) ($12.25; $417.2M market cap) (medical device;safety syringes) filed its Q3 2021 10-Q, no press release at this time:

• Sales of $36.3 million vs $27.0 million in the prior year
• Non-GAAP EPS of $0.19 vs EPS of $0.33 in the prior year

“Domestic revenues increased 33.5% principally due to increased volumes primarily attributable to orders from the U.S. government.  Domestic unit sales increased 34.1%.  Domestic unit sales were 90.6% of total unit sales for the three months ended September 30, 2021.  Domestic unit sales excluding the U.S. government rose approximately 32.6%.  International revenues increased approximately 45.5% due to an increase in products available for international shipment. Our international orders may be subject to significant fluctuation over time and may not be reflective of the full year’s sales.  Overall unit sales increased 34.2%.  Other than the U.S. government, our increased sales are predominantly attributable to existing customers as well as several new smaller customers who do not operate as distributors.  As discussed above, our gross margins were significantly impacted during the third quarter of 2021 due to the global demand for, and rising costs of, cargo freight transportation. Despite the increase in revenues for the third quarter of 2021, our gross profit decreased, both on a per unit basis and in the aggregate.”

We have not seen any mention of renewing its contract with the government which poses a significant risk heading into 2022.

“In the first nine months of 2021, approximately $83.6 million of the Company's sales were to the Department of Health and Human Services of the United States. Management expects the U.S. government to remain a significant customer through at least March 2022.”

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Retractable Technologies, Inc. (NYSE:RVP) ($12.25; $417.2M market cap) (medical device;safety syringes) filed its Q2 2021 10-Q, no press release at this time:

• Sales of $42.4 million vs $11.5 million in the prior year
• Non-GAAP EPS of $0.27 vs EPS of $0.03 in the prior year

The 10Q does not really offer many comments from management or forward looking statements. We are keeping our eye out for the press release which may offer more color. One thing to note is that EPS was sequentially lower than the Q1 EPS of $0.52, which may not be received favorably by the market as the U.S. moves closer to “full vaccination.”

Retractable Technologies, Inc. (NYSE:RVP) ($10.06; $342.0M market cap) (medical device;safety syringes) announced (yesterday during trading day) that it received notice from the U.S Department of Health and Human Services expressing its intent to exercise all seven one-month options under its original contract.

The options will extend the contract to February 2022, and increase the value of the contract by $92.7 million. You can see our original contract news note here. 

Retractable Technologies, Inc. (NYSE:RVP) ($12.82; $433.5M market cap) (medical device;safety syringes) announced Q1 2021 results:

• Sales of $50.1 million vs $11.2 million in the prior year (revenues without covid government work would have been $12.3 million)
• EPS of $0.52 vs $0.00 in the prior year

While the quarter was extremely strong, we believe many investors will parse out a large part of the revenue that was attributable to COVID-19, and focus more closely on the non-Covid related revenues going forward as the pandemic seems to be in its final stages.

Retractable Technologies, Inc. (NYSE:RVP) ($8.39; $282.2M market cap) (medical device) announced Q3 2020 results:

• Sales of $27.0 million vs $11.6 million in the prior year
• Non-GAAP EPS of $0.25 vs $0.03

The results were released via 10-Q only. We are waiting for the press release to see if it offers any guidance as the company continues to benefit from a large contract from the government for syringes to be  used in administration of Covid-19vaccines.

Retractable Technologies, Inc. (NYSE:RVP) ($7.70; $246.7M market cap), a company that designs, develops, manufactures, and markets safety syringes and other medical products for the healthcare industry in the United States and internationally, saw its shares hit new highs in a volatile trading session yesterday, on the heels of an 8K filing showing the company entered into a Technology Investment Agreement with the Department of Defense to help assist in the production of its equipment and supplies to help fight the Covid-19 pandemic. 

The funding is for $53.6 million over a 10 year period.