Rockwell Medical Reports Second Quarter 2015 Results
Q2 2015 Financial Highlights
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Sales were
$13.0 million , in line with Q2 2014. -
Gross profit was
$2.1 million , a 2.3% increase over Q2 2014. - Gross profit margins increased to 15.9% compared to 15.5% in Q2 2014.
-
R&D expense was
$0.9 million compared to$0.8 million in Q1 2015. -
Net loss was
($2.5) million or ($0.05 ) per share, compared to a net loss of($3.2) million or ($0.08 ) per share in Q2 2014, a$.03 per share improvement. -
Cash and investments were
$77.3 million as ofJune 30, 2015 .
YTD 2015 Financial Highlights
-
Sales in the first six months of 2015 were
$26.8 million compared to$26.0 million in the first six months of 2014. -
Gross profit was
$4.4 million , an 18.4% increase over the first six months of 2014. - Gross profit margins increased to 16.3% compared to 14.2% in the first six months of 2014.
-
R&D expense was
$1.7 million compared to$4.8 million in the first six months of 2014. -
Net loss was
($6.2) million or ($0.12 ) per share, compared to a net loss of($11.0) million or ($0.28 ) per share in the first six months of 2014, a$0.16 per share improvement.
2015 YTD Corporate Highlights
-
Obtained U.S.
FDA drug approval to market Triferic™ (ferric pyrophosphate citrate) for iron replacement and hemoglobin maintenance in hemodialysis patients. -
Received U.S. CMS Q-Code assignment for reimbursement of Triferic; effective
July 1, 2015 . - Increased manufacturing and product inventory ahead of commercial drug launches.
- Increased marketing and advertising in preparation for commercial drug launches.
-
PRIME ESA Sparing Study published in
Kidney International . - CRUISE 1-2 Phase 3 Studies published in Nephrology Dialysis Transplantation.
-
Triferic clinical data presented at the National Kidney Foundation Spring Meeting and Annual
Dialysis Conference both in the U.S., andERA-EDTA Congress inEurope .
"As expected, we had another solid quarter," stated
Conference Call Information
About Triferic
Triferic is a unique iron compound that is delivered to hemodialysis patients via dialysate, replacing the ongoing iron loss that occurs during their dialysis treatment. Triferic is introduced into bicarbonate concentrate, on-site at the dialysis clinic, and subsequently mixed into dialysate. 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 for more information.
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 U.S. and abroad. As one of the two major suppliers in the U.S., Rockwell's products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Rockwell has three manufacturing/distribution facilities located in the U.S.
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 launch Calcitriol and Triferic following
Triferic™ is a trademark of
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CONSOLIDATED INCOME STATEMENTS | ||||
For the three and six months ended |
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(Unaudited) | ||||
Three Months Ended |
Three Months Ended |
Six Months Ended |
Six Months Ended |
|
Sales | $ 12,955,576 | $ 13,033,361 | $ 26,839,537 | $ 25,997,013 |
Cost of Sales | 10,889,619 | 11,014,469 | 22,461,237 | 22,298,163 |
Gross Profit | 2,065,957 | 2,018,892 | 4,378,300 | 3,698,850 |
Selling, General and Administrative | 3,835,596 | 4,214,205 | 9,161,357 | 8,304,404 |
Research and Product Development | 885,259 | 186,695 | 1,684,850 | 4,801,892 |
Operating Income (Loss) | (2,654,898) | (2,382,008) | (6,467,907) | (9,407,446) |
Interest and Investment Income, net | 118,151 | 69,633 | 231,966 | 143,848 |
Interest Expense | -- | 858,003 | -- | 1,712,306 |
Income (Loss) Before Income Taxes | (2,536,747) | (3,170,378) | (6,235,941) | (10,975,904) |
Income Tax Expense | -- | -- | -- | -- |
Net Income (Loss) |
|
|
$ (6,235,941) | $ (10,975,904) |
Basic Earnings (Loss) per Share |
( |
( |
( |
( |
Diluted Earnings (Loss) per Share |
( |
( |
( |
( |
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CONSOLIDATED BALANCE SHEETS | ||
As of |
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(Unaudited) | ||
ASSETS |
2015 |
2014 |
Cash and Cash Equivalents | $ 37,145,875 | $ 65,800,451 |
Investments Available for Sale | 40,114,886 | 19,927,310 |
Accounts Receivable, net of a reserve of |
3,938,815 | 4,472,002 |
Inventory | 6,315,021 | 3,920,185 |
Other Current Assets | 926,156 | 587,201 |
Total Current Assets | 88,440,753 | 94,707,149 |
Property and Equipment, net | 1,373,488 | 1,496,912 |
Intangible Assets | 249,172 | 332,686 |
Goodwill | 920,745 | 920,745 |
Other Non-current Assets | 542,223 | 542,224 |
Total Assets | $ 91,526,381 | $ 97,999,716 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
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Accounts Payable | $ 4,319,843 | $ 5,294,515 |
Accrued Liabilities | 2,582,711 | 4,325,997 |
Customer Deposits | 129,851 | 183,890 |
Total Current Liabilities | 7,032,405 | 9,804,402 |
Deferred License Revenue | 18,506,066 | 19,492,520 |
Shareholders' Equity: | ||
Common Shares, no par value, 50,221,211 and 50,284,007 shares issued and outstanding |
252,651,670 |
249,018,189 |
Accumulated Deficit | (186,353,667) | (180,117,726) |
Accumulated Other Comprehensive Income (Loss) | (310,093) | (197,669) |
Total Shareholders' Equity | 65,987,910 | 68,702,794 |
Total Liabilities And Shareholders' Equity | $ 91,526,381 | $ 97,999,716 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
For the six months ended |
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(Unaudited) | ||
2015 | 2014 | |
Cash Flows From Operating Activities: | ||
Net (Loss) | $ (6,235,941) | $ (10,975,904) |
Adjustments To Reconcile Net Loss To Net Cash Used In Operating Activities: | ||
Depreciation and Amortization | 408,327 | 506,465 |
Share Based Compensation- Employees | 4,994,272 | 4,406,012 |
Restricted Stock Tendered in Satisfaction of Tax Liabilities | (2,912,859) | -- |
Amortization of Debt Issuance Costs | -- | 227,058 |
Non-Cash Interest Expense | -- | 225,058 |
Loss on Disposal of Assets | 2,424 | 4,827 |
Loss on Sale of Investments, net | -- | 1,223 |
Changes in Assets and Liabilities: |
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Decrease in Accounts Receivable | 533,187 | 359,402 |
Decrease (Increase) in Inventory | (2,394,836) | 15,506 |
(Increase) in Other Assets | (338,954) | (2,393,555) |
(Decrease) in Accounts Payable | (974,672) | (2,409,592) |
(Decrease) in Other Liabilities | (1,797,325) | (3,578,224) |
Deferred License Revenue | (986,454) | -- |
Changes in Assets and Liabilities | (5,959,054) | (8,006,463) |
Cash Used In Operating Activities | (9,702,831) | (13,611,724) |
Cash Flows From Investing Activities: | ||
Purchase of Investments Available for Sale | (20,300,000) | (2,000,000) |
Sale of Investments Available for Sale | -- | 4,976,000 |
Purchase of Equipment | (208,613) | (428,831) |
Proceeds from Sale of Assets | 4,800 | -- |
Cash (Used In) Investing Activities | (20,503,813) | 2,547,169 |
Cash Flows From Financing Activities: | ||
Proceeds from the Issuance of Common Shares and Purchase Warrants | 1,552,068 | 2,041,828 |
Cash Provided By Financing Activities | 1,552,068 | 2,041,828 |
Increase (Decrease) In Cash | (28,654,576) | (9,022,727) |
Cash At Beginning Of Period | 65,800,451 | 11,881,451 |
Cash At End Of Period | $ 37,145,875 | $ 2,858,724 |
CONTACT:Source:Michael Rice , Investor Relations; 646-597-6979
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