Rockwell Medical Reports Third Quarter 2011 Results
Third Quarter Financial Highlights
-
Sales were
$12.0 million ;$2.7 million less than third quarter 2010 due primarily due to lower international sales. - Sales increased 1.5% sequentially over the second quarter of 2011.
-
Gross profit was
$1.4 million ;$1.0 million less than third quarter of 2010 due to lower sales volumes and inflationary cost increases. - SG&A decreased 6.6% from the third quarter of 2010 due to lower non-cash charges for equity compensation.
-
R&D expense increased to
$4.2 million , compared to$0.7 million in third quarter of 2010. -
Net loss was
($5.0) million , compared to a net loss of($0.7) million in third quarter of 2010.
First Nine Months 2011 Financial Highlights
-
Sales were
$37.1 million ;$8.2 million less than first nine months of 2010 primarily due to lower international sales. - Completed a multi-year supply agreement with our largest domestic customer through 2013.
-
Gross profit was
$4.1 million ;$3.4 million less than first nine months of 2010 due to lower sales volumes and higher material and fuel costs. - SG&A remained relatively unchanged from the first nine months of 2010.
-
R&D expense increased significantly to
$9.9 million , compared to$1.7 million in the first nine months of 2010, due to the start of our two Phase III efficacy studies for SFP. -
Net loss was
($12.5) million , compared to a net loss of($1.0) million in first nine months of 2010. -
Cash and short term investments aggregated
$20.2 million atSeptember 30, 2011 .
Drug Development Highlights
- Two Phase III CRUISE efficacy studies enrolling patients.
- PRIME study to capture ESA-sparing data enrolling patients.
-
Hired
Annamaria Kausz , M.D. as Vice President ofDrug Development & Medical Affairs . - Manufacturer chosen to produce Calcitriol (Active Vitamin-D) injection.
Mr.
Conference Call Information:
About
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 for seamless integration into the commercial markets for its drug products, Calcitriol in 2012 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.
The
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. 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 the Company 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. 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
|
|
||||
| CONSOLIDATED INCOME STATEMENTS | ||||
|
For the three and nine months ended |
||||
| (Unaudited) | ||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |
| Sept. 30, 2011 | Sept. 30, 2010 | Sept. 30, 2011 | Sept. 30, 2010 | |
| Sales |
|
|
|
|
| Cost of Sales | 10,600,144 | 12,345,221 | 32,970,644 | 37,746,691 |
| Gross Profit | 1,376,185 | 2,400,193 | 4,098,779 | 7,485,387 |
| Selling, General and Administrative | 2,271,350 | 2,431,367 | 6,890,500 | 6,847,606 |
| Research and Product Development | 4,221,118 | 727,978 | 9,937,476 | 1,686,666 |
| Operating Income (Loss) | (5,116,283) | (759,152) | (12,729,197) | (1,048,885) |
| Interest and Dividend Income | 77,107 | 17,257 | 240,617 | 37,641 |
| Interest Expense | 408 | 1,462 | 1,513 | 8,876 |
| Income (Loss) Before Income Taxes | (5,039,584) | (743,357) | (12,490,093) | (1,020,120) |
| Income Tax Expense | 1,958 | -- | 1,958 | -- |
| Net Income (Loss) |
|
|
|
|
| Basic Earnings (Loss) per Share |
|
|
|
|
| Diluted Earnings (Loss) per Share |
|
|
|
|
|
|
||
| CONSOLIDATED BALANCE SHEETS | ||
|
As of |
||
|
|
|
|
| ASSETS | (unaudited) | 2010 |
| Cash and Cash Equivalents |
|
|
| Investments Available for Sale | 11,813,813 | 11,938,098 |
|
Accounts Receivable, net of a reserve of |
4,258,403 | 4,507,296 |
| Inventory | 2,234,685 | 2,936,878 |
| Other Current Assets | 1,373,083 | 1,020,647 |
| Total Current Assets | 28,101,899 | 32,666,368 |
| Property and Equipment, net | 2,458,987 | 3,049,513 |
| Intangible Assets | 839,676 | 166,657 |
| Goodwill | 920,745 | 920,745 |
| Other Non-current Assets | 2,269,158 | 163,624 |
| Total Assets |
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Capitalized Lease Obligations |
|
|
| Accounts Payable | 3,609,235 | 3,659,507 |
| Accrued Liabilities | 5,892,021 | 2,577,022 |
| Customer Deposits | 114,778 | 165,476 |
| Total Current Liabilities | 9,624,696 | 6,420,220 |
| Capitalized Lease Obligations | 3,078 | 8,750 |
| Shareholders' Equity: | ||
| Common Shares, no par value, 18,502,901 and 17,513,608 shares issued and outstanding | 65,290,668 | 57,017,236 |
| Common Share Purchase Warrants, 2,707,440 and 3,338,569 warrants issued and outstanding | 7,067,924 | 8,275,509 |
| Accumulated Deficit | (47,033,236) | (34,541,185) |
| Accumulated Other Comprehensive Loss | (362,665) | (213,623) |
| Total Shareholders' Equity | 24,962,691 | 30,537,937 |
| Total Liabilities And Shareholders' Equity |
|
|
|
|
||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
|
For the nine months ended |
||
| (Unaudited) | ||
| 2011 | 2010 | |
| Cash Flows From Operating Activities: | ||
| Net (Loss) |
|
|
| Adjustments To Reconcile Net Loss To Net Cash Used In | ||
| Operating Activities: | ||
| Depreciation and Amortization | 928,208 | 1,047,077 |
| Loss on Disposal of Assets | 27,572 | 16,822 |
| Share Based Compensation — Non-employee Warrants | 105,274 | 588,201 |
| Share Based Compensation — Employees | 3,024,647 | 2,392,688 |
| Changes in Assets and Liabilities: | ||
| Decrease (Increase) in Accounts Receivable | 248,893 | (1,143,912) |
| Decrease in Inventory | 702,193 | 553,708 |
| (Increase) in Other Assets | (2,457,970) | (514,244) |
| Decrease in Accounts Payable | (50,272) | (545,538) |
| Increase (Decrease) in Other Liabilities | 2,714,301 | (102,062) |
| Changes in Assets and Liabilities | 1,157,145 | (1,752,048) |
| Cash Provided By (Used) In Operating Activities | (7,249,205) | 1,272,620 |
| Cash Flows From Investing Activities: | ||
| Purchase of Equipment | (344,250) | (682,295) |
| Proceeds on Sale of Assets | -- | 800 |
| Purchase of Intangible Assets | (144,023) | -- |
| Purchase of Investments Available for Sale | (24,757) | -- |
| Cash Used In Investing Activities | (513,030) | (681,495) |
| Cash Flows From Financing Activities: | ||
| Issuance of Common Shares and Exercise of Purchase Warrants | 3,935,926 | 54,948 |
| Payments on Notes Payable | (15,225) | (27,040) |
| Cash Provided By (Used) In Financing Activities | 3,920,701 | 27,908 |
| Increase (Decrease) In Cash and Cash Equivalents | (3,841,534) | 619,033 |
| Cash and Cash Equivalents at Beginning of Period | 12,263,449 | 23,038,095 |
| Cash and Cash Equivalents at End of Period |
|
|
CONTACT:Michael Rice Investor Relations 201-408-4923 / 917-282-3242
News Provided by Acquire Media