RMS Medical Products Announces Record Quarterly Sales and Net Income

RMS Medical Products Announces Record Quarterly Sales and Net Income

–  Net Sales for the quarter ended June 30, 2018 increased 17.6% over the same period last year

–  Net Income increased to $475,723 or 10.6% of Net Sales

–  Inaugural conference call August 7th at 9:00 AM ET

CHESTER, N.Y., Aug. 6, 2018 /PRNewswire/ — Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) today announced financial results for the second quarter ended June 30, 2018.

Net sales grew for the fifth consecutive quarter to $4.5 million, a 17.6% increase over the second quarter of 2017. The increase in net sales was driven by higher needle set sales, which we believe were bolstered by the FDA clearance on August 31, 2017, for the RMS “Integrated Catch-Up Freedom Syringe Driver Infusion System”. Net sales during the period included approximately $0.3 million of revenue related to one-time sales to support the clinical activities of various pharmaceutical companies.

Gross profit grew to $2.7 million, a 19.3% increase over the second quarter of 2017 and a gross margin improvement of 80 basis points. The increase in gross profit and margin is principally the result of higher net sales.

Net income for the period increased to a record $475,723, or 10.6% of net sales, which compares with $148,472 reported during the second quarter of 2017.  Higher net sales combined with improved gross profit on relatively flat operating expenses and a favorable tax rate change were principally responsible for the increase in profitability.

“Second quarter results were strong as RMS continues to grow market share within its core indications, as well as pursue new opportunities,” stated Dan Goldberger, Chairman and interim President and CEO. “As we undergo the next phase of RMS’s development, I want to assure all of our stakeholders that we will continue to pursue our mission to improve the quality of life of patients around the world through the design, development, and delivery of the highest quality innovative therapeutic solutions. Patient safety, product efficacy, respect for all of our stakeholders, customer service, and building shareholder value continue to be our highest priorities.”

On July 26, 2018, the Company announced that RMS Medical Products’ Board of Directors appointed Daniel Goldberger, Board Member, to the position of Chairman and interim President and Chief Executive Officer, replacing Andy Sealfon who will remain on the Board of Directors. Please reference the Company’s recent press release and filings for background information.

Conference Call

The Company will host a conference call to discuss the second quarter 2018 financial results and business developments on Tuesday, August 7, 2018, at 9:00 AM ET. Please refer to the information below for conference call dial-in information and webcast registration:

Conference date: August 7, 2018, 9:00 AM ET
Conference dial-in: 877-269-7756
International dial-in: 201-689-7817
Conference Call Name: RMS Medical Products (OTCQX: REPR) Second Quarter 2018 Results Call
Webcast Registration: Click Here

Following the live call, a replay will be available on the Company’s website, www.rmsmedicalproducts.com, under “Investor Relations” for a period of one year.

About RMS Medical Products

The Company develops, manufactures and commercializes medical products used for home infusions and suctioning. The FREEDOM Syringe Infusion System currently includes the FREEDOM60® and FreedomEdge® Syringe Infusion Drivers, RMS Precision Flow Rate Tubing™ and RMS HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are used for infusions administered in professional healthcare settings as well as at home. The Company’s RES-Q-VAC® line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers. For more information about RMS Medical Products, please visit www.rmsmedicalproducts.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the term “believe” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s reports and registration statements filed with the Securities and Exchange Commission.  The results of operations for the periods presented herein are not necessarily indicative of the results to be expected in the future.

 

REPRO MED SYSTEMS, INC.
BALANCE SHEETS
June 30, December 31,
2018 2017
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 3,421,186 $ 3,974,536
Certificate of deposit (restricted cash) 1,504,818
Certificates of deposit 159,462 263,269
Accounts receivable less allowance for doubtful accounts of
$77,067 at June 30, 2018 and $77,067 at December 31, 2017
1,840,094 1,861,949
Inventory 1,718,294 1,658,681
Prepaid expenses 255,888 170,739
TOTAL CURRENT ASSETS 8,899,742 7,929,174
Property and equipment, net 795,484 836,283
Patents, net of accumulated amortization of $220,340 and $203,768 at June 30, 2018 and December 31, 2017, respectively 531,685 483,821
Other assets 31,582 31,582
TOTAL ASSETS $ 10,258,493 $ 9,280,860
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Deferred capital gain – current $ 15,003 $ 22,481
Accounts payable 711,947 454,398
Accrued expenses 539,473 658,060
Accrued payroll and related taxes 187,307 334,903
Accrued tax liability 91,488 115,854
TOTAL CURRENT LIABILITIES 1,545,218 1,585,696
Deferred capital gain – long term 3,762
Deferred tax liability 20,733 21,675
TOTAL LIABILITIES 1,565,951 1,611,133
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; 75,000,000 shares authorized, 40,907,991 and 40,731,529 shares issued, 38,170,760 and 37,994,298 shares outstanding at June 30, 2018 and December 31, 2017, respectively 409,080 407,315
Additional paid-in capital 4,358,618 4,216,718
Retained earnings 4,269,048 3,389,898
9,036,746 8,013,931
Less: Treasury stock, 2,737,231 shares at June 30, 2018 and December
31, 2017
(344,204) (344,204)
TOTAL STOCKHOLDERS’ EQUITY 8,692,542 7,669,727
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,258,493 $ 9,280,860

 

REPRO MED SYSTEMS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
For the

Three Months Ended

For the

Six months Ended

June 30, June 30,
2018 2017 2018 2017
NET SALES $ 4,502,326 $ 3,829,457 $ 8,535,550 $ 7,467,893
Cost of goods sold 1,762,742 1,532,158 3,330,142 3,068,639
Gross Profit 2,739,584 2,297,299 5,205,408 4,399,254
OPERATING EXPENSES
Selling, general and administrative 2,022,631 2,005,336 3,902,900 3,780,445
Research and development 23,963 24,840 33,811 70,746
Depreciation and amortization 75,978 76,781 150,556 151,662
Total Operating Expenses 2,122,572 2,106,957 4,087,267 4,002,853
Net Operating Profit 617,012 190,342 1,118,141 396,401
Non-Operating (Expense)/Income
 (Loss)/Gain on currency exchange (19,838) 34,670 (10,414) 51,744
Interest and other income 5,501 421 6,116 2,066
TOTAL OTHER (EXPENSE)/INCOME (14,337) 35,091 (4,298) 53,810
PROFIT BEFORE TAXES 602,675 225,433 1,113,843 450,211
Income Tax Expense (126,952) (76,961) (234,693) (174,788)
NET INCOME $ 475,723 $ 148,472 $ 879,150 $ 275,423
NET INCOME PER SHARE
Basic $ 0.01 $ $ 0.02 $ 0.01
Diluted $ 0.01 $ $ 0.02 $ 0.01
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
Basic 38,100,040 37,825,209 38,058,500 37,799,981
Diluted 38,872,998 37,899,619 38,815,301 37,866,730

 

REPRO MED SYSTEMS, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Six Months Ended
June 30,
2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 879,150 $ 275,423
Adjustments to reconcile net income to net cash provided by/(used in)
operating activities:
Amortization of deferred compensation cost 7,000
Stock based compensation expense 94,170 41,479
Depreciation and amortization 150,556 151,662
Deferred capital gain – building lease (11,240) (11,240)
Deferred taxes (941) 12,937
Provision for returns and doubtful accounts (5,603)
Changes in operating assets and liabilities:
Decrease/(Increase) in accounts receivable 21,855 (597,699)
(Increase)/Decrease in inventory (59,613) 94,177
(Increase)/Decrease in prepaid expense and other assets (85,149) 33,174
Increase/(Decrease) in accounts payable 257,549 (492,919)
(Decrease)/Increase in accrued payroll and related taxes (147,597) 71,113
Decrease in accrued expense (118,587) (12,207)
(Decrease)/Increase in accrued tax liability (24,366) 161,851
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 955,787 (270,852)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital expenditures (93,185) (89,437)
Purchase of certificate of deposit (restricted cash) (1,500,000)
Reinvested earnings on certificate of deposit (restricted cash) (4,818)
Payments for patents (64,436) (53,346)
Proceeds/(reinvested earnings) from certificates of deposit 103,807 (1,196)
NET CASH USED IN INVESTING ACTIVITIES (1,558,632) (143,979)
CASH FLOWS FROM FINANCING ACTIVITIES
Stock issuances 51,250
Payment for cancelled shares (1,755) (19,360)
Purchase of treasury stock (484)
NET CASH PROVIDED BY/(USED) IN FINANCING ACTIVITIES 49,495 (19,844)
NET DECREASE IN CASH AND CASH EQUIVALENTS (553,350) (434,675)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3,974,536 3,417,183
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,421,186 $ 2,982,508
Supplemental Information
Cash paid during the periods for:
Interest $ $
Taxes $ 260,000 $
NON-CASH FINANCING AND INVESTING ACTIVITIES
Issuance of common stock as compensation $ 67,500 $ 67,500

 

Contact
CG Capital
877.889.1972
investorrelations@cg.capital

 


8K Earnings Release for June 30, 2018