Exhibit 99.1
ROCKWELL MEDICAL TECHNOLOGIES, INC. REPORTS FOURTH QUARTER RESULTS AND 2004
EARNINGS IMPROVEMENT OF $.02 PER SHARE
WIXOM, Mich., Feb. 24 /PRNewswire-FirstCall/ -- Rockwell Medical
Technologies, Inc. (Nasdaq: RMTI), a leading, innovative hemodialysis products
manufacturer in the healthcare sector, reported its fourth quarter and full year
2004 results today with 2004 Earnings per Share improving by $.02 per share.
Highlights:
Fourth Quarter 2004
* Record quarterly revenues of $4,780,070.
* Sales revenues increased 15.4% over the fourth quarter of 2003.
* Sales revenue was up 6.8% sequentially over the third quarter of
2004.
* Concentrate product line revenue increased 26% over the fourth
quarter of 2003.
* Dri-Sate(R) Dry Acid Concentrate unit volume increased 25% over the
fourth quarter of 2003.
* Operating Income was $70,980; net income was $11,404.
* Substantial market share gain in the Southeast region.
Year Ended December 31, 2004
* Sales revenue increased 20% in 2004 over 2003.
* Concentrate revenue increased 30%; driven by broad growth across
all product lines.
* Dri-Sate(R) Dry Acid Concentrate unit volumes increased 38% over
last year.
* Operating income of $409,000 more than doubled.
* Net income improved by $207,000 over 2003.
* Earnings per share was $.02 in 2004; an improvement of $.02 per
share over 2003.
Mr. Robert L. Chioini, Chairman, CEO, and President of Rockwell Medical
Technologies, Inc. stated, "We are pleased with our results for 2004. We
substantially grew our business, we achieved our second year of profitable
operations and we expanded our geographic scope of business in the fourth
quarter with significant penetration into the Southeast. Mr. Chioini also
stated, "We made substantial investments in iron product development and market
share expansion in the fourth quarter. These investments were
essential for our future development. Our overall iron development spending
increased by $50,000 over the third quarter level, with more than $100,000 spent
in total for the fourth quarter. As a result of this investment, coupled with an
increase in new business outside of our traditional distribution footprint, we
incurred higher than normal operating and distribution expenses. Although these
growth initiatives reduced our earnings in the fourth quarter we are excited
about our prospects for 2005." Rockwell is seeking FDA approval for a
proprietary drug product containing Ferric Pyrophosphate (FePPi) to be delivered
by its dialysis concentrates. It believes FePPi, delivered via dialysate, is a
superior iron compound and delivery method for the treatment of anemia in
dialysis patients as compared to the current intravenous (IV) iron drugs used
today. The Company is seeking FDA approval of the product, which it intends to
market. The Company believes that the current market for IV iron is $300 million
in the United States and more than $500 million globally. As compared to IV iron
administration, the Company believes that administering the drug 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 holds the exclusive rights
to the patents which cover the pharmaceutical composition, methods of use and
delivery of iron to be administered via dialysate to both hemodialysis and
peritoneal dialysis patients.
Rockwell will be hosting a conference call to review its fourth quarter
and year end results on Thursday, February 24, 2005 at 11:00 am EST. Investors
are encouraged to call in 5-10 minutes in advance of the call at 888-896-0862 or
may listen on the web at:
http://orion.calleci.com/servlet/estreamgetevent?id=4813&folder=default using
Windows Media Player. See rockwelllmed.com for more details and playback
options.
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
http://www.rockwellmed.com.
Certain statements in this press release with respect to Rockwell's
business and operations, including the statements regarding the Company's
anticipated sales revenue and the potential of Rockwell'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 three and twelve months ended December 31, 2004 and December 31, 2003
(Whole dollars)
Quarter Quarter Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Sales $ 4,780,070 $ 4,142,975 $ 17,944,710 $ 14,970,144
Cost of Sales 4,072,467 3,346,866 15,139,215 12,414,462
Gross Profit 707,603 796,109 2,805,495 2,555,682
Selling, General and
Administrative 636,623 650,493 2,396,315 2,367,773
Operating Income 70,980 145,616 409,180 187,909
Interest Expense, net 59,576 45,590 197,658 183,056
Net Income $ 11,404 $ 100,026 $ 211,522 $ 4,853
Basic Shares Outstanding 8,553,527 8,510,828 8,546,302 8,495,134
Basic Earnings Per Share $ - $ 0.01 $ 0.02 $ -
Fully Diluted Shares
Outstanding 9,199,505 9,229,754 9,305,123 9,229,754
Fully Diluted Earnings Per
Share $ - $ 0.01 $ 0.02 $ -
Rockwell Medical Technologies, Inc. And Subsidiary
Consolidated Balance Sheets
As of December 31, 2004 and 2003
(Whole Dollars)
ASSETS
DECEMBER 31, DECEMBER 31,
2004 2003
------------ ------------
Cash and Cash Equivalents $ 166,195 $ 106,639
Restricted Cash and Cash Equivalents 8,662 8,662
Accounts Receivable, net of a reserve of
$44,500 in 2004 and $34,500 in 2003 2,302,093 2,169,564
Inventory 1,652,457 1,350,291
Other Current Assets 111,630 103,971
Total Current Assets 4,241,037 3,739,127
Property and Equipment, net 2,048,665 1,943,376
Intangible Assets 369,508 314,071
Goodwill 920,745 920,745
Other Non-current Assets 120,597 127,467
Total Assets $ 7,700,552 $ 7,044,786
LIABILITIES AND SHAREHOLDERS' EQUITY
Short Term Borrowings $ 452,682 $ 642,018
Notes Payable & Capitalized Lease Obligations 389,602 307,959
Accounts Payable 2,124,679 1,666,952
Accrued Liabilities 492,592 329,519
Total Current Liabilities 3,459,555 2,946,448
Long Term Notes Payable & Capitalized Lease
Obligations 818,678 926,230
Shareholders' Equity:
Common Share, no par value,
8,556,531 and 8,519,405
shares issued and outstanding 11,870,909 11,832,220
Common Share Purchase Warrants,
3,761,071 and 3,766,071 shares
issued and outstanding 320,150 320,150
Accumulated Deficit (8,768,740) (8,980,262)
Total Shareholders' Equity 3,422,319 3,172,108
Total Liabilities And
Shareholders' Equity $ 7,700,552 $ 7,044,786
SOURCE Rockwell Medical Technologies, Inc.
-0- 02/24/2005
/CONTACT: Thomas Klema of Rockwell Medical Technologies, Inc.,
+1-248-960-9009/
/Web site: http://www.rockwellmed.com /