Exhibit 99.1
Rockwell Medical Technologies, Inc. Reports Fourth Quarter Earnings Per Share of
$0.01; Quarterly Revenue Reaches Record $4.1 Million; Company Turns Profit for
2003 on 30.2% Increase in Revenue
PR Newswire -- February 26, 2004
WIXOM, Mich., Feb. 26 /PRNewswire-FirstCall/ -- Rockwell Medical
Technologies, Inc. (Nasdaq: RMTI), a leading, innovative dialysis products
manufacturer serving the healthcare industry, today reported results for the
fourth quarter and year ended December 31, 2003:
Fourth Quarter 2003
* Fourth quarter net income was $100,026 compared with a ($72,847) loss
for the fourth quarter of 2002.
* Net earnings per share for the fourth quarter improved to $.01 compared
with a loss of ($.01) in the same quarter last year.
* Revenue increased to a record $4,142,975 in the fourth quarter, a 15%
improvement over the same period in 2002.
* Gross profit margin improved to 19.2% in the fourth quarter compared
with 15.6% in the fourth quarter last year.
* Dri-Sate(R) Dry Acid Concentrate sales increased 33% in the fourth
quarter compared to the same period in 2002.
Year Ended December 31, 2003
* Net income for 2003 was $4,853 as compared to a ($980,711) loss in
2002. Results for 2003 included R&D costs of approximately $250,000 related
to the development of Rockwell's proprietary dialysate iron-therapy product.
* Net income for 2003 reflected a $985,564 improvement, or $.12 per
share, compared with 2002.
* Revenue increased to $14,970,144 for 2003; a 30.2% improvement in
revenue over 2002.
* Gross profit margin improved 4.5 margin points to 17.1% in 2003 as
compared with 12.6% in 2002.
* Dri-Sate(R) Dry Acid Concentrate sales increased 34% in 2003 as
compared to 2002.
Mr. Robert L. Chioini, Chairman, CEO, and President of Rockwell Medical
Technologies, Inc. stated, "We had a strong fourth quarter and an exceptional
year. We achieved record financial performance which was driven by strong
demand for our products, solid growth in our sales and improved efficiencies
in our operations. Rockwell's core concentrate business is profitable and we
expect it to continue to become more so going forward. Looking forward, our
priorities are to obtain FDA approval to market the Company's proprietary
iron-therapy product and to continue to gain market share in our core
concentrate business."
Rockwell has been developing an innovative, proprietary concentrate
product containing ferric pyrophosphate (FePPi), a water-soluble form of iron,
to be used as a treatment for iron deficiency in dialysis patients. The
Company is seeking FDA approval of this product which it intends to market.
As compared to intravenous (IV) iron administration, the Company believes that
administering iron through its dialysate is a safer and more effective method
for maintaining iron balance in dialysis patients, while at the same time
eliminating the associated nursing and pharmaceutical IV iron administration
costs. Rockwell licensed the exclusive rights to the patent which covers the
pharmaceutical composition, methods of use and delivery of iron to be
administered via dialysate to both hemodialysis and peritoneal dialysis
patients. The Company estimates that the U.S. dialysis market for IV iron
generates between $270 million to $300 million in annual revenue.
Rockwell will be holding a conference call to discuss its earnings results
on Thursday, February 26, 2004 at 11:00 a.m. EST. The call in number is
888-896-0862. The call will be available for replay on the Company's website
at www.rockwellmed.com .
Rockwell Medical Technologies, Inc. is an innovative leader in
manufacturing, marketing and delivering high-quality dialysis solutions,
powders and ancillary products that improve 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 suffer from chronic
kidney failure, a condition also known as end stage renal disease (ESRD).
There are an estimated 350,000 dialysis patients in the United States and the
incidence of ESRD has increased 6-8% on average each year over the last
decade. Rockwell's products are used to cleanse the ESRD patient's blood and
replace nutrients in the bloodstream. Rockwell offers the proprietary Dri-
Sate(R) Dry Acid Mixing System, RenalPure(TM) Liquid Acid, RenalPure(TM)
Powder Bicarbonate, SteriLyte(R) Liquid Bicarbonate, Blood Tubing Sets,
Fistula Needles and a wide range of ancillary dialysis items. Visit
Rockwell's website at www.rockwellmed.com .
Certain statements in this press release with respect to Rockwell's
business and operations, including the statements regarding the Company's
ability to increase and sustain a profitable level of operations and the
potential of the Company's proprietary dialysate iron product, 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, general economic
conditions, economic conditions in the hemodialysis industry, competitive
factors, failure to obtain FDA approval, and other factors discussed in
Rockwell's reports filed with the Securities and Exchange Commission. The
forward-looking statements should be considered in light of these risks and
uncertainties.
Rockwell Medical Technologies, Inc. and Subsidiary
Consolidated Income Statements
For the quarter and year ended December 31, 2003 and 2002
(Whole dollars)
Quarter Ended Quarter Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
Sales $4,142,975 $3,604,987 $14,970,144 $11,495,764
Cost of Sales 3,346,866 3,042,879 12,414,462 10,042,000
Gross Profit 796,109 562,108 2,555,682 1,453,764
Selling, General
and Administrative 650,493 614,725 2,367,773 2,318,945
Operating Income
(Loss) 145,616 (52,617) 187,909 (865,181)
Interest Expense,
net 45,590 20,230 183,056 115,530
Net Income (Loss) $100,026 $(72,847) $4,853 $(980,711)
Average shares
outstanding 8,510,828 8,303,881 8,495,134 7,867,464
Basic & Diluted
Earnings (Loss)
per Share * $.01 $(.01) $0.00 $(.12)
* - Fully diluted shares outstanding were 9,229,754 for the fourth quarter
of 2003.
Rockwell Medical Technologies, Inc. and Subsidiary
Consolidated Balance Sheets
As of December 31, 2003 and 2002
(Whole Dollars)
DECEMBER 31, DECEMBER 31,
ASSETS 2003 2002
Cash and Cash Equivalents $132,227 $133
Restricted Cash and Cash Equivalents 8,662 13,965
Accounts Receivable, net of a reserve of
$34,500 in 2003 and $51,500 in 2002 2,169,564 1,722,455
Inventory 1,350,291 1,476,506
Other Current Assets 103,971 118,316
Total Current Assets 3,764,715 3,331,375
Property and Equipment, net 1,943,376 1,730,594
Intangible Assets 314,071 336,201
Goodwill 920,745 920,745
Other Non-current Assets 127,467 134,776
Total Assets $7,070,374 $6,453,691
LIABILITIES AND SHAREHOLDERS' EQUITY
Short Term Borrowings $642,018 $417,254
Notes Payable & Capitalized Lease
Obligations 307,959 194,799
Accounts Payable 1,692,540 1,680,842
Accrued Liabilities 329,519 333,792
Total Current Liabilities 2,972,036 2,626,687
Long Term Notes Payable & Capitalized
Lease Obligations 926,230 781,504
Shareholders' Equity:
Common Share, no par value, 8,519,405 and
8,488,283 shares issued and outstanding 11,832,220 11,724,507
Common Share Purchase Warrants, 3,766,071
and 3,753,460 shares issued and
outstanding 320,150 306,108
Accumulated Deficit (8,980,262) (8,985,115)
Total Shareholders' Equity 3,172,108 3,045,500
Total Liabilities And Shareholders'
Equity $7,070,374 $6,453,691
SOURCE Rockwell Medical Technologies, Inc.
-0- 02/26/2004
/CONTACT: Thomas Klema of Rockwell Medical Technologies, Inc.,
+1-248-960-9009/
/Web site: http://rockwellmed.com /
(RMTI)
CO: Rockwell Medical Technologies, Inc.
ST: Michigan
IN: MTC
SU: ERN CCA MAV