Retractable Technologies, Inc. Reports Results for 2024

Rhea-AI Summary

Retractable Technologies (RVP) reported significant financial challenges for 2024, with revenues declining 24.2% to $33.0 million from $43.5 million in the previous year. Domestic revenues fell 15.1% due to lower average selling prices and higher distribution costs, while international revenues dropped 59.1% primarily from reduced vaccination-related sales.

The company posted a substantial operating loss of $21.1 million, compared to $11.5 million loss in 2023. Cash position decreased by $8.4 million, ending 2024 at $4.2 million, with $40.3 million in debt and equity securities. Operating costs remained elevated due to facility expansion and increased domestic production efforts related to 2024-2025 tariffs.

The company faces additional challenges with tariff expenses, spending $1.6 million from September-December 2024 under 100% tariff rates on Chinese imports. Future expenditures include $1 million for equipment and $3.8 million for workforce expansion to boost domestic production.

Positive

• Holds $40.3 million in debt and equity securities
• Implementing domestic production expansion to address tariff challenges

Negative

• Revenue declined 24.2% to $33.0 million
• Operating loss increased to $21.1 million from $11.5 million
• Cash position decreased by $8.4 million to $4.2 million
• Domestic revenues fell 15.1% due to lower selling prices
• International revenues dropped 59.1%
• High tariff expenses ($1.6 million in late 2024)
• Required additional investment of $4.8 million for domestic production expansion

Insights

Financial Analyst

Retractable Technologies' 2024 results reveal significant deterioration in financial performance. Revenue declined 24.2% to $33.0 million, with domestic sales down 15.1% and international sales plummeting 59.1%. The steep international decline stems from diminished vaccination-related sales, signaling the end of pandemic-driven demand.

Most concerning is the widening operating loss of $21.1 million, nearly doubling from 2023's $11.5 million loss. This deterioration comes despite maintaining high operating expenses of $20.1 million following facility expansion. The cash position has weakened substantially, decreasing by $8.4 million during 2024 to just $4.2 million.

The $40.3 million in debt and equity securities provides some financial cushion, but the burn rate remains troubling. At current loss levels, the company needs to either monetize these securities or achieve rapid operational improvements to ensure sustainability.

Tariff challenges compound these difficulties. RVP spent $1.6 million on tariffs from September-December 2024 at a 100% rate and another $951,000 in early 2025. Planned investments of $1 million for equipment and $3.8 million for workforce to boost domestic production will further strain finances before potentially yielding benefits.

The new potential 25% tariff on imports from countries purchasing Venezuelan oil creates additional uncertainty that could further impact margins.

Supply Chain Expert

Retractable Technologies faces a perfect storm of supply chain challenges. The company is caught in a difficult transition between their previous Chinese manufacturing dependence and necessary domestic production scaling. The 100% tariff on Chinese syringes and needles imposed in late 2024 has already cost $1.6 million in just four months, significantly eroding margins.

Their planned domestic production increase requires substantial investment – $1 million in equipment and $3.8 million in workforce expansion. This necessary but costly transition comes at a particularly vulnerable financial moment with declining revenues and dwindling cash reserves.

The newly announced potential 25% tariff on goods from countries importing Venezuelan oil creates additional complexity in sourcing decisions. This unpredictable regulatory environment makes supply chain planning exceptionally difficult, particularly for a medical device manufacturer with specialized production requirements.

The company's explicit acknowledgment that they "cannot evaluate the impact" of the latest tariff threat illustrates the extreme uncertainty facing their supply chain planning. With domestic production increases not yet fully implemented, the company remains exposed to these tariff risks in the near term.

This supply chain transformation would be challenging even for a financially robust company. For RVP, executing this transition while managing declining sales and increasing losses creates substantial operational risk.

LITTLE ELM, Texas--(BUSINESS WIRE)-- Retractable Technologies, Inc. (NYSE American: RVP) reports the following information relating to the year ended December 31, 2024. Further details concerning the results of operations as well as other matters are available in Retractable’s Form 10-K filed on March 28, 2025 with the U.S. Securities and Exchange Commission.

The Company’s revenues for 2024 decreased 24.2%. The Company’s revenues were approximately $33.0 million in 2024 as compared to approximately $43.5 million in the prior year. Domestic revenues decreased 15.1% principally due to a decrease in the average selling price as a result of product mix, combined with higher transactional and order fulfillment costs with its distributors. International revenues decreased 59.1% predominantly due to fewer international vaccination-related sales. Comparability of 2024 to 2020-2023 financial results is challenging due to the unusual volume of pandemic sales in prior years.

The Company’s operating costs remain high since its facility expansion and, more recently, its increase in domestic production in connection with 2024-2025 tariffs. Total operating expenses were $20.1 million in 2024. The 2024 loss from operations was $21.1 million as compared to a loss from operations of $11.5 million in the prior year.

The net decrease in cash for 2024 was $8.4 million. At the end of 2024, the cash position was $4.2 million and the Company held $40.3 million in debt and equity securities.

Although the Company is working to increase domestic production in 2025, expenses related to tariffs will likely increase. Approximately $1.6 million was spend on tariff expenses from September – December 2024 when the tariff rate was 100% on syringes and needles imported from China. From January 1 to March 21, 2025, under a system of increasing tariffs, the Company paid a total of approximately $951 thousand on tariff expenses. Additional equipment expenditures of approximately $1 million over the next few months and additional workforce expenditures over the next year of approximately $3.8 million will likely be necessary in connection with the Company’s plan to increase domestic production. According to an Executive Order executed by the President of the United States on March 24, 2025, on or after April 2, 2025, a tariff of 25% may be imposed on goods imported into the United States from any country that imports Venezuelan oil. The Company does not have sufficient information to evaluate the impact of this recent order and any forward-looking statements in the Company’s Form 10-K do not account for the foregoing tariff.

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: material changes in demand, tariffs; 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250328990841/en/

Retractable Technologies, Inc.

John W. Fort III, 888-806-2626 or 972-294-1010

Vice President, Chief Financial Officer, and Chief Accounting Officer

Source: Retractable Technologies, Inc.

FAQ

What caused RVP's revenue decline in 2024?

RVP's revenue declined 24.2% due to lower domestic selling prices, higher distribution costs, and a 59.1% drop in international vaccination-related sales.

How much did RVP spend on tariffs for Chinese imports in late 2024?

RVP spent $1.6 million on tariff expenses from September to December 2024 when tariff rates were 100% on syringes and needles from China.

What is RVP's current cash position and investment holdings?

As of end-2024, RVP had $4.2 million in cash and $40.3 million in debt and equity securities.

How much additional investment is RVP planning for domestic production?

RVP plans to invest approximately $1 million in equipment and $3.8 million in workforce expansion over the next year.

What was RVP's operating loss in 2024 compared to 2023?

RVP's operating loss increased to $21.1 million in 2024 from $11.5 million in 2023.