Rockwell Medical Reports Third Quarter Results
Q3 2016 Financial Highlights
- Sales were
$12.8 million , or$1.6 million lower than Q3 2015, primarily due to lower contract manufacturing sales. - Gross profit was
$1.6 million compared to$2.5 million in Q3 2015, due to lower contract manufacturing revenue and due to an increase in manufacturing and costs related to our drug products. - SG&A expense was
$5.1 million compared$3.8 million in Q3 2015. - R&D expense was
$1.3 million and at the same level as in Q3 2015. - Net loss was
$4.5 million or ($0.09 ) per share compared to a$2.4 million loss or ($0.05 ) per share in Q3 2015. - Net loss in Q3 was lower sequentially by
$0.8 million compared to Q2 2016 due to lower R&D expenses. - Cash and investments were
$57.7 million as ofSeptember 30, 2016 . - Net working capital was
$72.5 million as ofSeptember 30, 2016 .
YTD 2016 Financial Highlights
- Sales were
$39.9 million , compared to$41.2 million in the first nine months of 2015. - Gross profit was
$4.8 million compared to$6.9 million in the first nine months of 2015. - Gross profit was impacted by higher drug manufacturing costs, a value add tax paid on
the
$4.0 million payment received from Wanbang Biopharma and lower third party contract manufacturing revenue. - SG&A expense was
$15.1 million compared$13.0 million in the first nine months of 2015. - R&D expense was
$4.6 million compared to$2.9 million in the first nine months of 2015. - Net loss was
$14.7 million or ($0.29 ) per share versus$8.7 million or ($0.17 ) per share in 2015.
YTD Corporate Highlights
- Triferic Phase-1 Healthy Volunteer Intravenous (IV) Pharmacokinetic Study published in the
September 2016 edition of theJournal of Clinical Pharmacology . - Entered into license agreement with ARAM Medical to market Triferic in
Saudi Arabia and other middle eastern countries. - Received
FDA approval to market Triferic powder packet. - Partnered with Wanbang Biopharma to commercialize Triferic and Calcitriol in the People's Republic of
China , receiving up to$39 million in milestone payments and ongoing profit on commercial product sales inChina .
Mr.
Conference Call Information
About Triferic
Triferic is the only
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
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED INCOME STATEMENTS | |||||||||||||||||||||
For the three and nine months ended | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||
Sales | $ | 12,814,815 | $ | 14,378,528 | $ | 39,894,380 | $ | 41,218,065 | |||||||||||||
Rebates | — | — | — | — | |||||||||||||||||
Cost of Sales | 11,234,934 | 11,875,122 | 35,130,045 | 34,336,359 | |||||||||||||||||
Gross Profit | 1,579,881 | 2,503,406 | 4,764,335 | 6,881,706 | |||||||||||||||||
Selling, General and Administrative | 5,070,127 | 3,827,904 | 15,071,238 | 12,989,261 | |||||||||||||||||
Research and Product Development | 1,261,863 | 1,246,727 | 4,639,617 | 2,931,577 | |||||||||||||||||
Operating Income (Loss) | (4,752,109 | ) | (2,571,225 | ) | (14,946,520 | ) | (9,039,132 | ) | |||||||||||||
Interest and Investment Income | 188,847 | 156,672 | 602,429 | 388,638 | |||||||||||||||||
Interest (Expense) | — | — | — | — | |||||||||||||||||
Income (Loss) Before Income Taxes | (4,563,262 | ) | (2,414,553 | ) | (14,344,091 | ) | (8,650,494 | ) | |||||||||||||
Income Tax Expense | — | — | (404,527 | ) | — | ||||||||||||||||
Net Income (Loss) | $ | (4,563,262 | ) | $ | (2,414,553 | ) | $ | (14,748,618 | ) | $ | (8,650,494 | ) | |||||||||
Basic Earnings (Loss) per Share | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.29 | ) | $ | (0.17 | ) | |||||||||
Diluted Earnings (Loss) per Share | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.29 | ) | $ | (0.17 | ) | |||||||||
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
As of | |||||||||||
(Unaudited) | |||||||||||
2016 | 2015 | ||||||||||
ASSETS | |||||||||||
Cash and Cash Equivalents | $ | 19,293,454 | $ | 31,198,182 | |||||||
Investments Available for Sale | 38,434,312 | 39,482,732 | |||||||||
Accounts Receivable, net of a reserve of | 8,031,196 | 5,046,733 | |||||||||
Inventory | 11,760,269 | 7,871,780 | |||||||||
Other Current Assets | 2,264,583 | 1,026,889 | |||||||||
Total Current Assets | 79,783,814 | 84,626,316 | |||||||||
Property and Equipment, net | 1,506,155 | 1,646,568 | |||||||||
Intangible Assets | 42,555 | 165,657 | |||||||||
920,745 | 920,745 | ||||||||||
Other Non-current Assets | 601,187 | 462,839 | |||||||||
Total Assets | $ | 82,854,456 | $ | 87,822,125 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Accounts Payable | $ | 3,396,789 | $ | 3,995,216 | |||||||
Accrued Liabilities | 3,825,374 | 3,831,356 | |||||||||
Customer Deposits | 91,005 | 264,879 | |||||||||
Total Current Liabilities | 7,313,168 | 8,091,451 | |||||||||
Deferred License Revenue | 19,783,978 | 17,410,852 | |||||||||
Shareholders' Equity: | |||||||||||
Common Shares, no par value, 51,527,711 and 51,501,877 shares issued and outstanding | 265,648,345 | 257,773,494 | |||||||||
Accumulated Deficit | (209,286,794 | ) | (194,538,176 | ) | |||||||
Accumulated Other Comprehensive Income | (604,241 | ) | (915,496 | ) | |||||||
Total Shareholders' Equity | 55,757,310 | 62,319,822 | |||||||||
Total Liabilities And Shareholders' Equity | $ | 82,854,456 | $ | 87,822,125 | |||||||
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
For the nine months ended | |||||||||||
(Unaudited) | |||||||||||
2016 | 2015 | ||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net (Loss) | $ | (14,748,618 | ) | $ | (8,650,494 | ) | |||||
Adjustments To Reconcile Net Loss To | |||||||||||
Depreciation and Amortization | 583,501 | 608,152 | |||||||||
Share Based Compensation—Employees | 7,794,690 | 6,097,122 | |||||||||
Restricted Stock Retained in Satisfaction of Tax Liabilities | — | (2,912,859 | ) | ||||||||
Loss on Disposal of Assets | 7,340 | 4,292 | |||||||||
Loss on Sale of Investments Available for Sale | 26,820 | 58,095 | |||||||||
Changes in Assets and Liabilities: | |||||||||||
(Increase) in Accounts Receivable | (2,984,463 | ) | (1,424,485 | ) | |||||||
(Increase) in Inventory | (3,888,489 | ) | (3,495,096 | ) | |||||||
(Increase) in Other Assets | (1,376,042 | ) | (1,014,009 | ) | |||||||
(Decrease) in Accounts Payable | (598,427 | ) | (71,121 | ) | |||||||
(Decrease) in Other Liabilities | (179,856 | ) | (1,259,560 | ) | |||||||
Increase (decrease) in Deferred License Revenue | 2,373,126 | (1,479,681 | ) | ||||||||
Changes in Assets and Liabilities | (6,654,151 | ) | (8,743,952 | ) | |||||||
Cash (Used) In Provided By Operating Activities | (12,990,418 | ) | (13,539,644 | ) | |||||||
Cash Flows From Investing Activities: | |||||||||||
Purchase of Investments Available for Sale | (23,158,809 | ) | (21,800,000 | ) | |||||||
Sale of Investments Available for Sale | 24,491,678 | 1,468,656 | |||||||||
Purchase of Equipment | (328,322 | ) | (336,856 | ) | |||||||
Proceeds on Sale of Assets | 1,000 | 4,800 | |||||||||
Cash (Used In) Investing Activities | 1,005,547 | (20,663,400 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||
Proceeds from Issuance of Common Shares and Purchase Warrants | 80,161 | 1,575,333 | |||||||||
Cash Provided By Financing Activities | 80,161 | 1,575,333 | |||||||||
Effects of exchange rate changes | (18 | ) | — | ||||||||
(Decrease) Increase In Cash | (11,904,728 | ) | (32,627,711 | ) | |||||||
Cash At Beginning Of Period | 31,198,182 | 65,800,451 | |||||||||
Cash At End Of Period | $ | 19,293,454 | $ | 33,172,740 | |||||||
Source:Michael Rice , Investor Relations; 646-597-6979
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