Rockwell Medical, Inc. Reports Third Quarter 2018 Financial Results
Business Updates:
CMS Rule Clarifies U.S. Commercial Plans
IV Triferic Expected to be Eligible for TDAPA Pricing – Based on an analysis of CMS'
Moving Ahead with U.S. Commercialization of Dialysate Triferic – Upon assessing the
Closed Financing Transaction – On
Assessing Commercial Potential for Calcitriol – Rockwell Medical is carefully examining Calcitriol's potential to drive acceptable gross profits, and intends to share an update regarding its commercialization plans for this product in the first quarter of 2019.
Working to Best Position Concentrates Products – The Company is currently in discussions with potential partners to improve upon the economics of this line of products, and intends to share an update regarding its plans to enhance profitability in the first quarter of 2019.
Senior Leadership Appointments – Since Mr. Paul joined
Mr. Paul said, "Since joining
Mr. Paul added, "As part of my review to better understand our products and our operations, I've spent time over the last 70 days getting to know the fantastic
Selected Financial Highlights for the Three and Nine Months ended
- Sales were
$16.7 million and$46.5 million for the three and nine months endedSeptember 30, 2018 , an increase of 14% and 10% over the same periods last year. Sales are associated with the Company's Dialysate Concentrate products. Increases were primarily a result of international sales, up$1.2 million and$1.3 million respectively and an increase in billing to Baxter of$0.4 million and$1.4 million respectively for the three and nine months endedSeptember 30, 2018 . - Gross profit was
$2.0 million and a loss of$2.8 million for the three and nine months endedSeptember 30, 2018 , respectively, compared to a gross profit of$1.0 million and$5.0 million for the same periods in 2017, respectively. The increase for the three months endedSeptember 30, 2018 was largely due to increases in international sales and billings to Baxter. Included in the three and nine months endedSeptember 30, 2018 were Triferic inventory write-offs of$0.1 million and$7.1 million respectively. - Net losses were
($5.0) million , or($0.10) per share, and($22.7) million , or($0.44) per share, for the three and nine months endedSeptember 30, 2018 , compared to a net loss of($5.1) million or($0.10) per share, and($17) million or ($0.33 per share), for the same periods in 2017, respectively. Contributing factors in the loss for the three and nine months endedSeptember 30, 2018 are approximately$1.3 million and$3.7 million respectively for legal and professional fees and other expenses associated with changes in executive management (CEO and CFO) and composition of the Board of Directors, and related litigation expenses. Also included is$0.1 million and$7.1 million respectively for Triferic inventory write offs. - Cash used in operating activities was
$4.9 million for the third quarter of 2018. As ofSeptember 30, 2018 , the Company had cash and investments of$17.7 million and working capital of$19.4 million . Following the completion of the$22 million investment byRichmond Brothers, Inc. , the Company has$39.7 million of cash and investments, pro- forma onOctober 1, 2018 .
The Company encourages shareholders to also review its Form 10-Q for the quarter ended September 30, 2018, as filed by the Company with the
Conference Call and Webcast
About
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "could," "plan," "potential," "predict," "forecast," "project," "plan", "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While Rockwell believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release and which are subject to inherent uncertainty. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Rockwell's
Contacts
Dan Katcher / Kelly Sullivan / Arielle Rothstein
212-355-4449
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||
September 30, |
December 31, |
|||||
2018 |
2017 |
|||||
ASSETS |
||||||
Cash and Cash Equivalents |
$ |
4,292,328 |
$ |
8,406,917 |
||
Investments Available for Sale |
13,410,151 |
24,648,459 |
||||
Insurance Receivable |
500,000 |
— |
||||
Accounts Receivable, net of a reserve of $7,800 in 2018 and $11,000 in 2017 |
7,581,699 |
6,355,566 |
||||
Inventory |
4,646,522 |
7,637,384 |
||||
Prepaid and Other Current Assets |
1,662,398 |
1,779,992 |
||||
Total Current Assets |
32,093,098 |
48,828,318 |
||||
Property and Equipment, net |
2,667,760 |
2,548,978 |
||||
Inventory, Non-Current |
1,865,834 |
5,986,752 |
||||
Goodwill |
920,745 |
920,745 |
||||
Other Non-current Assets |
536,605 |
494,847 |
||||
Total Assets |
$ |
38,084,042 |
$ |
58,779,640 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Accounts Payable |
$ |
6,931,292 |
$ |
4,222,159 |
||
Accrued Liabilities |
2,724,777 |
4,715,712 |
||||
Settlement Payable |
666,667 |
— |
||||
Current Portion of Deferred License Revenue |
2,276,139 |
— |
||||
Customer Deposits |
86,435 |
205,303 |
||||
Total Current Liabilities |
12,685,310 |
9,143,174 |
||||
Deferred License Revenue |
12,729,052 |
16,723,318 |
||||
Total Liabilities |
25,414,362 |
25,866,492 |
||||
Commitments and Contingencies |
||||||
Shareholders' Equity: |
||||||
Common Shares, no par value, 51,769,294 shares issued and outstanding at September |
275,634,848 |
273,210,907 |
||||
Accumulated Deficit |
(263,012,321) |
(240,262,376) |
||||
Accumulated Other Comprehensive Income (Loss) |
47,153 |
(35,383) |
||||
Total Shareholders' Equity |
12,669,680 |
32,913,148 |
||||
Total Liabilities And Shareholders' Equity |
$ |
38,084,042 |
$ |
58,779,640 |
||
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||
Three Months |
Three Months |
Nine Months |
Nine Months |
||||||||||
Sales |
$ |
16,672,416 |
$ |
14,626,904 |
$ |
46,534,358 |
$ |
42,462,265 |
|||||
Cost of Sales |
14,703,606 |
13,555,853 |
49,303,048 |
37,535,454 |
|||||||||
Gross Profit (Loss) |
1,968,810 |
1,071,051 |
(2,768,690) |
4,926,811 |
|||||||||
Selling, General and Administrative |
6,159,141 |
4,791,636 |
15,182,048 |
17,433,530 |
|||||||||
Settlement Expense, net of Reimbursement |
— |
— |
1,030,000 |
— |
|||||||||
Research and Product Development |
808,192 |
1,304,658 |
4,033,494 |
4,195,003 |
|||||||||
Operating Loss |
(4,998,523) |
(5,025,243) |
(23,014,232) |
(16,701,722) |
|||||||||
Interest and Investment Income (Loss) |
28,891 |
(31,751) |
264,287 |
(180,279) |
|||||||||
Net Loss |
$ |
(4,969,632) |
$ |
(5,056,994) |
$ |
(22,749,945) |
$ |
(16,882,001) |
|||||
Basic and Diluted Net Loss per Share |
$ |
(0.10) |
$ |
(0.10) |
$ |
(0.44) |
$ |
(0.33) |
|||||
Basic and Diluted Weighted Average Shares Outstanding |
51,288,537 |
51,260,975 |
51,288,462 |
50,995,079 |
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