Rockwell Medical Reports First Quarter Results
Q1 2016 Financial Highlights
- Sales were
$13.6 million , compared to$13.9 million in Q1 2015, or 1.9% less than Q1 2015. - Dialysis concentrate sales increased
$0.2 million while contract manufacturing sales decreased$0.5 million . - Gross profit was
$1.7 million compared to$2.3 million in Q1 2015.- Gross profit was impacted by a one-time
$0.3 million value add tax related to the Wanbang Triferic license agreement payment of$4 million .
- Gross profit was impacted by a one-time
- SG&A expense was
$5.0 million compared$5.3 million in Q1 2015. - R&D expense was
$1.3 million compared to$0.8 million in Q1 2015. - Income tax expense was
$0.4 million , related to the$4 million Wanbang license payment. - Net loss was
($4.8) million or ($0.10 ) per share compared to($3.7) million or ($0.07 ) per share in Q1 2015.- Net loss was impacted by a one-time
$0.7 million charge related to the Wanbang Triferic license agreement payment of$4 million .
- Net loss was impacted by a one-time
- Cash and investments were
$69.4 million as ofMarch 31, 2016 .
2016 YTD Corporate Highlights
- Received
FDA approval to market Triferic® powder packet presentation, which is a more convenient package for customers that reduces storage space and requires fewer reorders to maintain inventory. - Signed exclusive license and manufacturing supply agreement with Wanbang Biopharma for the rights to commercialize Triferic and Calcitriol in the People's Republic of
China . The agreement calls for up to$39 million in milestone payments and ongoing profit on commercial product sales following drug approval inChina .
Mr.
Conference Call Information
About Triferic
Triferic is a unique iron replacement product that is delivered to hemodialysis patients via dialysate, replacing the ongoing iron loss that occurs during their dialysis treatment. Triferic is added to the bicarbonate concentrate on-site at the dialysis clinic. Once in dialysate, Triferic crosses the dialyzer membrane and enters the blood where it immediately binds to transferrin and is transported to the erythroid precursor cells to be incorporated into hemoglobin. In completed clinical trials, Triferic has demonstrated that it can effectively deliver
sufficient iron to the bone marrow and maintain hemoglobin, without increasing iron stores (ferritin). Please visit www.triferic.com or call
About
Rockwell's recent
Rockwell's
Rockwell is also an established manufacturer and leader in delivering high-quality hemodialysis concentrates/dialysates to dialysis providers and distributors in the
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.
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 sell and market Calcitriol and Triferic. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan", "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While
Triferic® is a registered trademark of
CONSOLIDATED INCOME STATEMENTS | |||||||||||
For the three months ended | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Three Months Ended | ||||||||||
| | ||||||||||
Sales | $ | 13,627,048 | $ | 13,883,961 | |||||||
Cost of Sales | 11,932,122 | 11,571,618 | |||||||||
Gross Profit | 1,694,926 | 2,312,343 | |||||||||
Selling, General and Administrative | 4,986,741 | 5,325,761 | |||||||||
Research and Product Development | 1,314,430 | 799,591 | |||||||||
Operating Income (Loss) | (4,606,245 | ) | (3,813,009 | ) | |||||||
Interest and Investment Income, net | 186,562 | 113,815 | |||||||||
Interest Expense | - | - | |||||||||
Income (Loss) Before Income Taxes | (4,419,683 | ) | (3,699,194 | ) | |||||||
Income Tax Expense | 404,527 | - | |||||||||
Net Income (Loss) | $ | (4,824,210 | ) | $ | (3,699,194 | ) | |||||
Basic Income (Loss) per Share | $ | (0.10 | ) | $ | (0.07 | ) | |||||
Diluted Income (Loss) per Share | $ | (0.10 | ) | $ | (0.07 | ) |
CONSOLIDATED BALANCE SHEETS | |||||||
As of | |||||||
(Unaudited) | |||||||
ASSETS | 2016 | 2015 | |||||
Cash and Cash Equivalents | $ | 30,007,500 | $ | 31,198,182 | |||
Investments Available for Sale | 39,435,500 | 39,482,732 | |||||
Accounts Receivable, net of a reserve of | 6,223,520 | 5,046,733 | |||||
Inventory | 9,163,932 | 7,871,780 | |||||
Other Current Assets | 931,774 | 1,026,889 | |||||
Total Current Assets | 85,762,226 | 84,626,316 | |||||
Property and Equipment, net | 1,690,116 | 1,646,568 | |||||
Intangible Assets | 123,944 | 165,657 | |||||
920,745 | 920,745 | ||||||
Other Non-current Assets | 600,687 | 462,839 | |||||
Total Assets | $ | 89,097,718 | $ | 87,822,125 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts Payable | $ | 4,420,468 | $ | 3,995,216 | |||
Accrued Liabilities | 3,494,794 | 3,831,356 | |||||
Customer Deposits | 93,646 | 264,879 | |||||
Total Current Liabilities | 8,008,908 | 8,091,451 | |||||
Deferred License Revenue | 20,883,712 | 17,410,852 | |||||
Shareholders' Equity: | |||||||
Common Shares, no par value, 51,526,877 and 51,501,877shares issued and outstanding | 260,530,213 | 257,773,494 | |||||
Accumulated Deficit | (199,362,386 | ) | (194,538,176 | ) | |||
Accumulated Other Comprehensive Income | (962,729 | ) | (915,496 | ) | |||
Total Shareholders' Equity | 60,205,098 | 62,319,822 | |||||
Total Liabilities And Shareholders' Equity | $ | 89,097,718 | $ | 87,822,125 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
For the three months ended | ||||||||
(Unaudited) | ||||||||
| ||||||||
2016 | 2015 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net (Loss) | $ | (4,824,210 | ) | $ | (3,699,194 | ) | ||
Adjustments To Reconcile Net Loss To | ||||||||
Operating Activities: | ||||||||
Depreciation and Amortization | 200,089 | 207,858 | ||||||
Share Based Compensation- Employees | 2,679,468 | 3,292,584 | ||||||
Restricted Stock Tendered in Satisfaction of Tax Liabilities | - | (1,463,601 | ) | |||||
Loss on Disposal of Assets | 506 | 2,424 | ||||||
Changes in Assets and Liabilities: | ||||||||
(Increase) in Accounts Receivable | (1,176,787 | ) | (193,829 | ) | ||||
(Increase) in Inventory | (1,292,152 | ) | (1,275,821 | ) | ||||
(Increase) in Other Assets | (42,733 | ) | (226,301 | ) | ||||
Increase (Decrease) in Accounts Payable | 425,252 | (156,661 | ) | |||||
Increase (Decrease) in Other Liabilities | (507,795 | ) | 691,984 | |||||
Deferred License Revenue | 3,472,860 | (493,227 | ) | |||||
Changes in Assets and Liabilities | 878,645 | (1,653,855 | ) | |||||
Cash (Used In) Operating Activities | (1,065,502 | ) | (3,313,784 | ) | ||||
Cash Flows From Investing Activities: | ||||||||
Purchase of Equipment | (202,430 | ) | (77,705 | ) | ||||
Proceeds from Sale of Assets | - | 4,800 | ||||||
Cash Provided By (Used In) Investing Activities | (202,430 | ) | (72,905 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Proceeds from the Issuance of Common Shares and Purchase Warrants | 77,250 | 918,884 | ||||||
Cash Provided By Financing Activities | 77,250 | 918,884 | ||||||
Increase (Decrease) In Cash | (1,190,682 | ) | (2,467,805 | ) | ||||
Cash At Beginning Of Period | 31,198,182 | 65,800,451 | ||||||
Cash At End Of Period | $ | 30,007,500 | $ | 63,332,646 |
Source:Michael Rice , Investor Relations; 646-597-6979
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