Rockwell Medical Reports First Quarter 2012 Results
First Quarter Financial Highlights
$12.0 millioncompared to $13.3 millionfirst quarter 2011, primarily due to lower international sales.
- Sales increased 1.1% sequentially over the fourth quarter 2011 and gross profit dollars increased 5.3%.
- Gross profit margins improved 1.1 percentage points to 13.5% compared to 12.4% in the first quarter of 2011.
$0.7 millionmainly due to higher non-cash charges for equity compensation.
R&D expense increased to
$9.4 millioncompared to $2.4 millionin first quarter of 2011, due to accelerated Phase III clinical development.
Net loss was
($10.6) millioncompared to a net loss of ($2.9) millionin first quarter of 2011, due to higher R&D expense.
Successful equity capital raise in
February 2012netted proceeds of approximately $16.2 million.
Cash and investments aggregated
$25.6 millionas of March 31, 2012.
Current Drug Development Highlights
- PRIME study designed to capture ESA-sparing data completed enrollment.
- Phase III CRUISE efficacy studies nearing patient enrollment completion.
- Data Safety Monitoring Board recommended continuation of studies with no modifications after 2nd review.
- Preparation for Calcitriol (vitamin-D) launch on track.
Raymond D. Pratt, MD, hired as Chief Medical Officer.
Conference Call Information:
Rockwell is also an established manufacturer and leader in delivering high-quality hemodialysis concentrates/dialysates to dialysis providers and distributors in the U.S. and abroad. These products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Rockwell's operating business is designed as a ready-made sales and distribution channel to provide seamless integration into the commercial market for its drug products, Calcitriol and SFP upon
Rockwell's exclusive renal drug therapies support disease management initiatives to improve the quality of life and care of dialysis patients and are intended to deliver safe and effective therapy, while decreasing drug administration costs and improving patient convenience. Rockwell Medical is developing a pipeline of drug therapies, including extensions of SFP for indications outside of hemodialysis. Please visit www.rockwellmed.com for more information. For a demonstration of SFP's unique mechanism of action in delivering iron via dialysate, please view the animation video at http://www.rockwellmed.com/collateral/documents/english-us/mode-of-action.html.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, Rockwell's intention to launch Calcitriol and SFP following
|CONSOLIDATED INCOME STATEMENTS|
For the three months ended
|Three Months Ended||Three Months Ended|
|March 31, 2012||March 31, 2011|
|Cost of Sales||10,401,941||11,639,242|
|Selling, General and Administrative||2,898,684||2,246,553|
|Research and Product Development||9,405,547||2,402,596|
|Operating Income (Loss)||(10,677,755)||(2,997,604)|
|Interest and Investment Income, net||111,097||85,968|
|Income (Loss) Before Income Taxes||(10,566,911)||(2,912,237)|
|Income Tax Expense||--||--|
|Net Income (Loss)||$ (10,566,911)||$ (2,912,237)|
|Basic Earnings (Loss) per Share||($.54)||($.17)|
|Diluted Earnings (Loss) per Share||($.54)||($.17)|
|CONSOLIDATED BALANCE SHEETS|
|Cash and Cash Equivalents||
|Investments Available for Sale||11,911,484||11,810,775|
Accounts Receivable, net of a reserve of
|Other Current Assets||1,664,372||1,643,565|
|Total Current Assets||33,840,570||25,896,529|
|Property and Equipment, net||2,132,831||2,290,476|
|Other Non-current Assets||1,736,431||1,998,076|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Capitalized Lease Obligations||
|Total Current Liabilities||13,835,700||13,692,351|
|Capitalized Lease Obligations||1,451||2,280|
|Common Shares, no par value, 20,707,886 and 18,710,002 shares issued and outstanding||85,193,308||67,407,847|
|Common Share Purchase Warrants, 2,596,440 and 2,607,440 warrants issued and outstanding||7,125,190||7,103,975|
|Accumulated Other Comprehensive Loss||(180,403)||(281,112)|
|Total Shareholders' Equity||25,585,442||18,244,968|
|Total Liabilities And Shareholders' Equity||
|CONSOLIDATED STATEMENTS OF CASH FLOWS|
For the three months ended
|Cash Flows From Operating Activities:|
|Net (Loss)||$ (10,566,911)||$ (2,912,237)|
|Adjustments To Reconcile Net Loss To Net Cash Used In|
|Depreciation and Amortization||277,200||329,955|
|Share Based Compensation — Non-employee||285,568||2,993|
|Share Based Compensation- Employees||1,203,821||1,054,838|
|Loss (Gain) on Disposal of Assets||10,395||6,070|
|Changes in Assets and Liabilities:|
|(Increase) Decrease in Accounts Receivable||7,741||(180,362)|
|Decrease in Inventory||93,892||154,482|
|(Increase) Decrease in Other Assets||240,838||(2,325,988)|
|(Decrease) in Accounts Payable||(702,612)||(958,142)|
|Increase in Other Liabilities||848,199||266,825|
|Changes in Assets and Liabilities||488,058||(3,043,185)|
|Cash Provided By (Used) In Operating Activities||(8,301,869)||(4,561,566)|
|Cash Flows From Investing Activities:|
|Purchase of Equipment||(88,543)||(121,082)|
|Proceeds on Sale of Assets||350||--|
|(Purchase) of Investments Available for Sale||--||(81,686)|
|Cash (Used) In Investing Activities||(88,193)||(202,768)|
|Cash Flows From Financing Activities:|
|Proceeds from Issuance of Common Shares and Purchase Warrants||16,317,287||459,370|
|Payments on Notes Payable and Capital Lease Obligations||(3,067)||(6,083)|
|Cash Provided By Financing Activities||16,314,220||453,287|
|Increase (Decrease) In Cash||7,924,158||(4,311,047)|
|Cash At Beginning Of Period||5,715,246||12,263,449|
|Cash At End Of Period||
Michael Rice, Investor Relations (646) 597-6979
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