ImmuCell Announces Unaudited Financial Results for Second Quarter of 2019
August 12 2019 - 4:05PM
ImmuCell Corporation (Nasdaq: ICCC) (“ImmuCell” or the
“Company”) – a growing animal health company that develops,
manufactures and markets scientifically-proven and practical
products that improve the health and productivity of dairy and beef
cattle – today announced unaudited financial results for the
quarter ended June 30, 2019.
Management Discussion:“We have achieved
favorable results during the first half of 2019 resulting from
investments in the First Defense® product
line. Total product sales increased by $1.2 million, or 21%,
during the first half of 2019 over the first half of 2018. We
are growing and investing in infrastructure to fuel future growth,”
commented Michael F. Brigham, President and CEO. “That being
said, product sales during the second quarter of 2019 were lower
than the second quarter of 2018 because of the temporary product
shortage that led to a large amount of product that was ordered
during the first quarter of 2018 not being shipped until the second
quarter of 2018. Given the shift in revenue during the first
half of 2018, it is more informative to compare the results for the
six-month and trailing twelve-month periods ended June 30, 2019 to
the corresponding periods ended June 30, 2018, without the
confusion caused by the short-term backlog of orders.”
“Having optimized certain manufacturing processes, production of
Tri-Shield First Defense® is increasing, which
allows us to bring on more new customers and ease back into a mass
market strategy,” added Brigham. “Our Beyond
Vaccination® approach, providing newborn calves with
verified antibodies instead of a variable vaccine response, is
leading to increased adoption of Tri-Shield® and
Dual-Force®.”
Brigham concluded, “Good progress is being achieved in the early
stages of our $3 million investment to increase production capacity
for the First Defense® product line and our $4
million investment to bring the formulation and aseptic filling of
syringes for Re-Tain™ in-house.”
Financial Results for the Second Quarter of
2019:
- During the quarter ended June 30, 2019, total product sales
decreased by approximately $305,000 to $2.7 million compared to
$3.0 million during the same period in 2018, a decrease of
10%. The quarter-to-quarter sales comparison was negatively
impacted by order backlogs.
- During the six-month period ended June 30, 2019, total product
sales increased by approximately $1.2 million to $7.1 million
compared to $5.9 million during the same period in 2018, an
increase of 21%.
- During the trailing twelve-month period ended June 30, 2019,
total product sales increased by approximately $1.2 million to
$12.2 million compared to $11 million during the same period ended
June 30, 2018, an increase of 11%.
- Product development expenses were $820,000 (including
depreciation and stock-based compensation expenses of $397,000)
during the three-month period ended June 30, 2019 in comparison to
$762,000 (including depreciation and stock-based compensation
expenses of $143,000) during the three-month period ended June 30,
2018.
- Product development expenses were $1.7 million (including
depreciation and stock-based compensation expenses of $802,000)
during the six-month period ended June 30, 2019 in comparison to
$1.3 million (including depreciation and stock-based compensation
expenses of $283,000) during the six-month period ended June 30,
2018.
- Net loss was $627,000, or $0.09 per share, during the second
quarter of 2019 in comparison to a net loss of $798,000, or $0.15
per share, during the second quarter of 2018.
- Net loss was $483,000, or $0.08 per share, during the six-month
period ended June 30, 2019 in comparison to $1 million, or $0.19
per share, during the six-month period ended June 30, 2018.
Balance Sheet Data as of June 30,
2019:Largely as the result of the net proceeds of
approximately $8.3 million raised from an equity offering at the
end of the first quarter of 2019:
- Cash, cash equivalents and short-term investments increased to
$10 million as of June 30, 2019 from $2.5 million as of December
31, 2018;
- Net working capital increased to $12.3 million as of June 30,
2019 from $3.9 million as of December 31, 2018; and
- Stockholders’ equity increased to $29.6 million as of June 30,
2019 from $21.7 million as of December 31, 2018.
|
Condensed Statements of
Operations (Unaudited) |
|
|
During the Three-Month Periods Ended June
30, |
|
During the Six-MonthPeriods Ended June
30, |
(In thousands, except per share amounts) |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Product sales |
$2,710 |
|
|
$3,015 |
|
|
$7,120 |
|
|
$5,896 |
|
Costs of goods sold |
|
1,461 |
|
|
|
1,528 |
|
|
|
3,670 |
|
|
|
3,049 |
|
Gross margin |
|
1,249 |
|
|
|
1,487 |
|
|
|
3,450 |
|
|
|
2,847 |
|
|
|
|
|
|
|
|
|
Sales, marketing and
administrative expenses |
|
976 |
|
|
|
918 |
|
|
|
2,002 |
|
|
|
1,873 |
|
Product development expenses |
|
820 |
|
|
|
762 |
|
|
|
1,730 |
|
|
|
1,345 |
|
Operating expenses |
|
1,796 |
|
|
|
1,680 |
|
|
|
3,732 |
|
|
|
3,218 |
|
|
|
|
|
|
|
|
|
NET OPERATING
LOSS |
|
(547) |
|
|
|
(193) |
|
|
|
(282) |
|
|
|
(371) |
|
|
|
|
|
|
|
|
|
Other expenses, net |
|
65 |
|
|
|
103 |
|
|
|
177 |
|
|
|
195 |
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES |
|
(612) |
|
|
|
(296) |
|
|
|
(459) |
|
|
|
(566) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
15 |
|
|
|
502 |
|
|
|
24 |
|
|
|
453 |
|
|
|
|
|
|
|
|
|
NET LOSS |
($627) |
|
|
($798) |
|
|
($483) |
|
|
($1,019) |
|
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding |
|
7,210 |
|
|
|
5,481 |
|
|
|
6,421 |
|
|
|
5,480 |
|
Basic net loss per share |
($0.09) |
|
|
($0.15) |
|
|
($0.08) |
|
|
($0.19) |
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding |
|
7,210 |
|
|
|
5,481 |
|
|
|
6,421 |
|
|
|
5,480 |
|
Diluted net loss per share |
($0.09) |
|
|
($0.15) |
|
|
($0.08) |
|
|
($0.19) |
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data (In thousands)
(Unaudited) |
|
|
As ofJune 30, 2019 |
|
As of December 31, 2018 |
|
|
|
|
|
|
Cash, cash equivalents and
short-term investments |
$9,971 |
|
$2,521 |
|
Net working capital |
|
12,343 |
|
|
3,856 |
|
Total assets |
|
39,409 |
|
|
32,731 |
|
Stockholders’ equity |
$29,645 |
|
$21,744 |
|
|
|
|
|
|
Non-GAAP Measures:Generally, a non-GAAP
financial measure is a numerical measure of a company’s
performance, financial position or cash flow that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. The non-GAAP measures included in this press
release, however, should be considered in addition to, and not as a
substitute for or superior to, the comparable measure prepared in
accordance with GAAP. We believe that considering the non-GAAP
income before income taxes and before certain non-cash expenses
assists management and investors by looking at our performance
across reporting periods on a consistent basis excluding certain
charges (that are not uses of cash) from our reported loss before
income taxes. We start with our reported loss before income taxes
because presently we are not paying cash for income taxes and do
not anticipate paying cash for income taxes in the near-term
future. A reader should review our Statements of Cash Flows
for a detailed understanding of our sources and uses of cash. We
calculate non-GAAP income before income taxes and before certain
non-cash expenses as indicated in the table below:
|
During the Three-Month Periods Ended June
30, |
|
During the
Six-Month Periods Ended June 30, |
(In
thousands) |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
($612) |
|
|
($296) |
|
|
($459) |
|
|
($566) |
|
|
|
|
|
|
|
|
|
Depreciation, amortization and stock-based compensation |
|
644 |
|
|
|
387 |
|
|
|
1,299 |
|
|
|
747 |
|
ncome before income taxes and certain non-cash expenses |
$32 |
|
|
$91 |
|
|
$840 |
|
|
$181 |
|
|
|
|
|
|
|
|
|
Conference Call:Interested parties can access
the conference call scheduled by the Company to review these
results by dialing (844) 855-9502 (toll free) or (412) 317-5499
(international) at 9:00 AM ET on Tuesday, August 13, 2019. A
teleconference replay of the call will be available for six days at
(877) 344-7529 (toll free) or (412) 317-0088 (international),
utilizing confirmation #10134208.
About ImmuCell: ImmuCell Corporation's
(Nasdaq: ICCC) purpose is to create
scientifically-proven and practical products that improve the
health and productivity of dairy and beef cattle. ImmuCell
markets First Defense®, providing
Immediate Immunity™ to newborn dairy and beef
livestock, and is in the late stages of developing
Re-Tain™, a novel treatment for mastitis, the most
significant cause of economic loss to the dairy industry. Press
releases and other information about the Company are available at:
http://www.immucell.com.
Cautionary Note Regarding Forward-Looking Statements
(Safe Harbor Statement):
This Press Release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
include, but are not limited to, any statements relating to: our
plans and strategies for our business; projections of future
financial performance; the timing and outcome of pending or
anticipated applications for regulatory approvals; factors that may
affect the dairy and beef industries and future demand for our
products; the scope and timing of ongoing and future product
development work and commercialization of our products; future
costs of product development efforts; the estimated prevalence rate
of subclinical mastitis; the expected efficacy of new products;
estimates about the market size for our products; future market
share of and revenue generated by current products and products
still in development; our ability to increase production output and
reduce costs of goods sold associated with our new product,
Tri-Shield First Defense®; the
future adequacy of our own manufacturing facilities or those of
third parties with which we have contractual relationships to meet
demand for our products on a timely basis; the anticipated costs of
(or time to complete) planned expansions of our manufacturing
facilities and the adequacy of our funds available for these
projects; the continuing availability to us on reasonable terms of
third-party providers of critical products or services; the
robustness of our manufacturing processes and related technical
issues; estimates about our production capacity; the future
adequacy of our working capital and the availability and cost of
third-party financing; future regulatory requirements relating to
our products; future expense ratios and margins; future compliance
with bank debt covenants; future cost of our variable interest rate
exposure on most of our bank debt; costs associated with sustaining
compliance with current Good Manufacturing Practice (cGMP)
regulations in our current operations and attaining such compliance
for the facility to produce the Nisin Drug Substance;
implementation of international trade tariffs that could reduce the
export of dairy products, which could in turn weaken the price
received by our customers for their products; our effectiveness in
competing against competitors within both our existing and our
anticipated product markets; the cost-effectiveness of additional
sales and marketing expenditures and resources; anticipated changes
in our manufacturing capabilities and efficiencies; the value of
our net deferred tax assets; projections about depreciation expense
and its impact on income for book and tax return purposes;
anticipated competitive and market conditions; and any other
statements that are not historical facts. Forward-looking
statements can be identified by the use of words such as “expects”,
“may”, “anticipates”, “aims”, “intends”, “would”, “could”,
“should”, “will”, “plans”, “believes”, “estimates”, “targets”,
“projects”, “forecasts”, “seeks” and similar words and expressions.
In addition, there can be no assurance that future developments
affecting us will be those that we anticipate. Such statements
involve risks and uncertainties, including, but not limited to,
those risks and uncertainties relating to difficulties or delays in
development, testing, regulatory approval, production and marketing
of our products (including the First Defense®
product line and Re-Tain™), competition within our
anticipated product markets, customer acceptance of our new and
existing products, product performance, alignment between our
manufacturing resources and product demand, our reliance upon third
parties for financial support, products and services, changes in
laws and regulations, decision making by regulatory authorities,
currency values and fluctuations and other risks detailed from time
to time in filings we make with the SEC, including our Quarterly
Reports on Form 10-Q, our Annual Reports on Form 10-K and our
Current Reports on Form 8-K. Such statements involve risks and
uncertainties and are based on our current expectations, but actual
results may differ materially due to various factors, including the
risk factors summarized above.
Contacts: Michael F. Brigham, President and
CEOImmuCell Corporation(207) 878-2770
Joe Diaz, Robert Blum and Joe DorameLytham Partners, LLC(602)
889-9700iccc@lythampartners.com
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