WIXOM, Mich., March 6 /PRNewswire-FirstCall/ -- Rockwell Medical Technologies, Inc. , a leading, innovative manufacturer of hemodialysis products and developer of specialty pharmaceuticals focused on the end-stage-renal-disease (ESRD) market, reported fourth quarter and year end results today. Rockwell reported record quarterly sales of $9.2 million, up 43% over the fourth quarter of 2005 and increased spending on product development and drug approval costs for soluble ferric pyrophosphate (SFP). SFP product development and approval costs were $1.4 million or $.12 per share in the fourth quarter. Fourth quarter loss per share was ($.10).
Sales for 2006 increased to $28.6 million compared to $27.7 million in 2005. Loss per share was ($.41) in 2006 compared to earnings per share of $.01 in 2005. Spending on SFP was $.43 per share in 2006.
Fourth Quarter Highlights: -- Sales increased 43% to $9,228,500 compared to fourth quarter 2005. -- Sequential revenue growth of 25% over the third quarter exceeded internal expectations. -- Both domestic business and international orders increased dramatically in the fourth quarter. -- Gross profit margins showed sequential improvement of 2.4% over the third quarter of 2006. -- Submitted SFP Dose Ranging Study Protocol to FDA -- Received SFP patent grant in Poland -- Upgraded to the Nasdaq Global Market Exchange. 2006 Highlights: -- Sales of $28.6 million increased $944,000 or 3.4% over 2005. -- Second half 2006 sales increased 38% over first half 2006 sales. -- Successful warrant exercise in January 2006 generated $9,000,000, primarily for SFP development. -- SFP Safety and Pharmacology testing program demonstrated excellent results to date. -- Received Canadian Patent for Dri-Sate System. -- Successful completion of licensing proprietary pharmaceutical/vitamin additive for our product line. -- Entire net loss of ($.41) per share due to SFP development costs of $.43 per share.
Mr. Robert L. Chioini, Chairman and Chief Executive Officer of Rockwell Medical Technologies, Inc. stated, "We are extremely pleased with the progress we made during 2006 in advancing our strategic initiatives; building our core concentrate business and working towards gaining FDA market approval for our proprietary iron-delivery product SFP. During the last half of the year our concentrate business increased significantly in both international and domestic demand, resulting in unprecedented growth in the fourth quarter. Our SFP pharmacology program will be complete in the first half of 2007 and we are preparing to commence human clinical testing in the upcoming second quarter of 2007. We expect 2007 to be a dynamic year with opportunity for continued growth."
Rockwell will be hosting a conference call to review its year end and fourth quarter results on Tuesday, March 6, 2007 at 11:00 am EST. Investors are encouraged to call in five minutes in advance of the call at 800-811-8845 or may listen on the web at the following link: http://investor.shareholder.com/media/index.cfm?c=RMTI&e=1&mediakey=A2FAB283B2 5BD82A09AC1C359F047CEF
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Rockwell Medical Technologies, Inc. is a leading, innovative manufacturer and developer of concentrates and specialty pharmaceuticals focused on improving the quality of care for dialysis patients. Dialysis is a process that duplicates kidney function for those patients whose kidneys have failed to work properly and who suffer from chronic kidney failure, a condition also known as end-stage-renal-disease (ESRD). There are an estimated 360,000 dialysis patients in the United States and the incidence of ESRD has increased approximately 3-5% on average each year over the last five years, and over 1.5 million world-wide. Rockwell manufactures, markets and delivers high-quality dialysis solutions, powders and ancillary products that are used to cleanse the ESRD patient's blood and replace nutrients in the bloodstream. Rockwell's proprietary formulations for iron-delivery and vitamin/carnitine-delivery, utilizing its dialysate as the delivery mechanism are designed to provide renal therapy with unprecedented patient safety and efficacy while eliminating nursing time and supply cost. Rockwell offers the proprietary Dri-Sate(R) Dry Acid Concentrate Mixing System, RenalPure(R) Liquid Acid Concentrate, SteriLyte(R) Liquid Bicarbonate Concentrate, RenalPure(R) Powder Bicarbonate Concentrate, Blood Tubing Sets, Fistula Needles and a wide range of ancillary dialysis items. Visit Rockwell's website at www.rockwellmed.com for more information.
Certain statements in this press release with respect to Rockwell's business and operations, including statements regarding FDA approval, the potential of Rockwell's proprietary Soluble Ferric Pyrophosphate (SFP) to capture market share, the potential for Rockwell's sales to increase, etc. constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's expectations and are based upon currently available information. Management of Rockwell believes the expectations reflected in the forward-looking statements made in this press release are based upon reasonable assumptions. However, certain factors could occur that might cause actual results to vary. These include, but are not limited to, delays or failure to obtain FDA approval of SFP, failure to obtain medicare or private insurance reimbursement approval, general economic conditions, economic conditions in the hemodialysis industry, modified regulatory requirements, competitive factors, and other factors discussed in Rockwell's reports filed with the Securities and Exchange Commission. These forward-looking statements should be considered in light of these risks and uncertainties.
Rockwell Medical Technologies, Inc. and Subsidiary Consolidated Income Statements
For the three and twelve months ended December 31, 2006 and December 31, 2005
(Whole dollars) Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended Dec. 31, 2006 Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2005 Sales $9,228,502 $6,456,152 $28,638,859 $ 27,694,955 Cost of Sales 8,268,797 5,890,958 25,837,294 24,689,912 Gross Profit 959,705 565,194 2,801,565 3,005,043 Selling, General and Administrative 748,875 585,556 2,661,419 2,520,670 Research & Product Development 1,396,333 187,107 4,777,976 346,938 Operating Income (1,185,503) (207,469) (4,637,830) 137,435 Other Income - - - 137,468 Interest Expense, net (30,468) 66,571 (62,851) 198,095 Income Before Income Taxes (1,155,035) (274,040) (4,574,979) 76,808 Income Tax Expense - - - - Net Income ($1,155,035) ($274,040) ($4,574,979) $76,808 Basic Earnings per Share $(0.10) $(0.03) $(0.41) $0.01 Diluted Earnings per Share $(0.10) $(0.03) $(0.41) $0.01 ROCKWELL MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS As of December 31, 2006 and 2005 (Whole Dollars) ASSETS DECEMBER 31, DECEMBER 31, 2006 2005 Cash and Cash Equivalents $2,662,873 $299,031 Accounts Receivable, net of a reserve of $72,500 in 2006 and $70,000 in 2005 3,474,402 2,836,072 Inventory 2,660,098 2,051,819 Other Current Assets 261,473 193,158 Total Current Assets 9,058,846 5,380,080 Property and Equipment, net 2,587,771 2,430,222 Intangible Assets 457,846 394,819 Goodwill 920,745 920,745 Other Non-current Assets 127,625 134,794 Total Assets $13,152,833 $9,260,660 LIABILITIES AND SHAREHOLDERS' EQUITY Short Term Borrowings $- $1,800,000 Notes Payable & Capitalized Lease Obligations 369,551 522,439 Accounts Payable 2,920,258 1,795,393 Accrued Liabilities 1,114,592 530,749 Customer Deposits 48,274 33,558 Total Current Liabilities 4,452,675 4,682,139 Long Term Notes Payable & Capitalized Lease Obligations 326,045 733,723 Shareholders' Equity: Common Shares, no par value, 11,500,349 and 8,886,948 shares issued and outstanding 23,147,709 12,628,539 Common Share Purchase Warrants, 0 and 3,591,385 shares issued and outstanding - 1,414,876 Accumulated Deficit (14,773,596) (10,198,617) Total Shareholders' Equity 8,374,113 3,844,798 Total Liabilities And Shareholders' Equity $13,152,833 $9,260,660
Rockwell Medical Technologies, Inc.CONTACT: Thomas Klema, CFO, +1-248-960-9009, or Ronald J. Aubrey, InvestorRelations, +1-866-565-6139, both of of Rockwell Medical Technologies, Inc.
Web site: http://rockwellmed.com//
