BUENA, N.J., Feb. 27, 2014 /PRNewswire/ -- IGI
Laboratories, Inc. (NYSE MKT: IG), a New
Jersey based topical generic drug development and
manufacturing company, announced its financial results for the
fourth quarter and year ended December 31,
2013.
Fourth Quarter and Year to Date 2013 Highlights
- Total revenues of $6.7 million in
the fourth quarter of 2013, an increase of 191% over the same
quarter in 2012
- Total revenues of $18.2 million
for the year ended December 31, 2013,
an increase of 113% over the same period in 2012
- Product sales, net includes total net revenues generated from
the sale of IGI label generic topical pharmaceutical products for
the three and twelve months ended December
31, 2013 of $3.2 million, and
$7.4 million, respectively
- Gross profit for the year ended December
31, 2013 equaled 34% as compared to 32% in the same period
of 2012
- IGI filed its fifth Abbreviated New Drug Application, (ANDA),
with the U.S. Food and Drug Administration (FDA) in November 2013
- IGI filed its sixth ANDA with the FDA in December 2013 under a joint development and
commercialization agreement with a large multi-national
pharmaceutical company
- Net income was $0.7 million in
the fourth quarter of 2013, compared to a net loss of $1.2 million in the same period in 2012
- Net loss was $0.1 million and
$3.9 million for the year ended
December 31, 2013 and 2012,
respectively
IGI's President and Chief Executive Officer, Jason Grenfell-Gardner, stated, "This year was a
critical one for our team, and I believe we have delivered.
At the beginning of 2013, we committed to double revenue, achieve
profitability, and file at least six ANDAs. As promised, our
revenues year to date were 113% higher than 2012, our fourth
quarter net income totaled $0.7
million, and our year to date net loss approached break even
for the first time since 1997. In addition we filed six ANDAs
with the FDA in 2013." Mr. Grenfell-Gardner continued, "Our
research and development team now has thirteen filings pending with
the US FDA. Based on current IMS Health data, the addressable
market for our pipeline of thirteen ANDAs, pending approval by the
FDA is estimated at over $300
million. Our expectations for 2014 are even
greater. We expect revenue to increase between 40% and 45%
over 2013. We intend to sustain profitability in 2014;
however, we plan to at least double our spending in research and
development in 2014 over 2013 to accelerate the growth of our
pipeline. Our team is committed to file at least ten ANDAs in
2014."
On December 6, 2013, we declared a
preferred stock dividend of 415,118 shares of our common stock in
connection with the mandatory automatic conversion of 1,550 shares
of our Series C Preferred Stock into common stock. The
Company originally issued 1,550 shares of Series C Convertible
Preferred Stock on March 29, 2010,
for which the holders were entitled to quarterly dividends at an
annual rate of 5%. On December 6,
2013, the preferred stock and all accrued but unpaid
dividends were required to be converted after the closing price of
the Company's common stock had exceeded three times the closing
price on the issuance date for a period of twenty-five consecutive
trading days immediately preceding December
6, 2013. The Company issued 2.7 million shares of
common stock in connection with this conversion. As a result of
this non-cash preferred stock dividend in the amount of
$1.3 million recognized upon the
mandatory conversion of the Company's Series C preferred stock, net
loss attributable to common stockholders was $1.4 million for the year ended December 31, 2013.
The Company will hold a conference call today at 4:30 pm ET to discuss 4th quarter 2013
results.
The Company invites you to listen to the call by dialing
1-866-515-2908. International participants should call
1-617-399-5122. The passcode for the conference call is
49729279.
This call is being webcast by NASDAQ OMX and can be
accessed at IGI's website at www.igilabs.com.
The webcast is also being distributed through third party
distribution channels, including the StreetEvents Network operated
by Thomson Reuters (Markets) LLC and its affiliates.
About IGI Laboratories, Inc.
IGI Laboratories is a
developer and manufacturer of topical formulations for the
pharmaceutical, OTC, and cosmetic markets. Our mission is to be a
leading player in the generic topical prescription drug market.
IGI Laboratories, Inc. "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995. This press release
includes certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions, and other statements
contained in this press release that are not historical facts and
statements identified by words such as " will," "believe",
"target", "estimated," "continue" or words of similar meaning.
These statements are based on our current beliefs or expectations
and are inherently subject to various risks and uncertainties,
including those set forth under the caption "Risk Factors" in IGI
Laboratories, Inc.'s most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q and other reports we file with the
Securities and Exchange Commission. Actual results may differ
materially from these expectations. Factors that could cause actual
results to differ materially from these expectations include, but
are not limited to: our inability to meet current or future
regulatory requirements in connection with existing or future
ANDAs; our inability to achieve profitability; our failure to
obtain FDA approvals as anticipated; our inability to execute and
implement our business plan and strategy; the potential lack of
market acceptance of our products; our inability to protect our
intellectual property rights; changes in global political,
economic, business, competitive, market and regulatory factors; and
our inability to complete successfully future product acquisitions.
IGI Laboratories, Inc. does not undertake any obligation to update
any forward-looking statements contained in this document as a
result of new information, future events or otherwise.
IGI LABORATORIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three
months ended December 31, 2013 and 2012
(in thousands,
except shares and per share information)
|
|
|
|
Three months ended
December 31,
|
|
|
2013
|
|
|
2012
|
Revenues:
|
|
|
|
|
|
Product sales,
net
|
$
|
5,857
|
|
$
|
1,711
|
Research and development
income
|
|
816
|
|
|
563
|
Other revenue
|
|
52
|
|
|
34
|
Total revenues
|
|
6,725
|
|
|
2,308
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
Cost of sales
|
|
4,147
|
|
|
1,516
|
Selling, general and
administrative expenses
|
|
1,406
|
|
|
824
|
Product development and
research expenses
|
|
620
|
|
|
1,099
|
Total costs and expenses
|
|
6,173
|
|
|
3,439
|
Operating income (
loss)
|
|
552
|
|
|
(1,131)
|
|
|
|
|
|
|
Interest and other
income (expense), net
|
|
(78)
|
|
|
(235)
|
Income (loss) before
benefit from income taxes
|
|
474
|
|
|
(1,366)
|
|
|
|
|
|
|
Benefit from income
taxes
|
|
197
|
|
|
184
|
|
|
|
|
|
|
Net income
(loss)
|
|
671
|
|
|
(1,182)
|
|
|
|
|
|
|
Preferred stock
dividend
|
|
(1,308)
|
|
|
-
|
|
|
|
|
|
|
Net loss
attributable to common stockholders
|
$
|
(637)
|
|
$
|
(1,182)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per common share
|
$
|
(.01)
|
|
$
|
(.03)
|
|
|
|
|
|
|
Weighted average
shares of common stock outstanding
|
|
|
|
|
|
Basic and
diluted
|
|
44,519,326
|
|
|
40,608,169
|
IGI LABORATORIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
For the years
ended December 31, 2013 and 2012
(in thousands,
except shares and per share information)
|
|
|
|
2013
|
|
|
2012
|
Revenues:
|
|
|
|
|
|
Product sales,
net
|
$
|
16,981
|
|
$
|
6,545
|
Research and development
income
|
|
1,094
|
|
|
1,931
|
Licensing, royalty and other
income
|
|
149
|
|
|
87
|
Total revenues
|
|
18,224
|
|
|
8,563
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
Cost of sales
|
|
12,079
|
|
|
5,787
|
Selling, general and
administrative expenses
|
|
3,484
|
|
|
3,078
|
Product development and
research expenses
|
|
2,743
|
|
|
2,834
|
Total costs and expenses
|
|
18,306
|
|
|
11,699
|
Operating
loss
|
|
(82)
|
|
|
(3,136)
|
|
|
|
|
|
|
Interest and other
income (expense), net
|
|
(199)
|
|
|
(975)
|
Loss before benefit
from income taxes
|
|
(281)
|
|
|
(4,111)
|
|
|
|
|
|
|
Benefit from income
taxes
|
|
197
|
|
|
184
|
|
|
|
|
|
|
Net
loss
|
|
(84)
|
|
|
(3,927)
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
(1,308)
|
|
|
-
|
|
|
|
|
|
|
Net loss
attributable to common stockholders
|
$
|
(1,392)
|
|
$
|
(3,927)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per common share
|
$
|
(0.03)
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of common stock outstanding
|
|
|
|
|
|
Basic and
diluted
|
|
43,517,640
|
|
|
39,786,446
|
IGI LABORATORIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years
ended December 31, 2013 and 2012
(in
thousands)
|
|
|
|
2013
|
|
|
2012
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(84)
|
|
$
|
(3,927)
|
Non-cash expenses
|
|
1,212
|
|
|
1,844
|
Changes in operating assets
and liabilities
|
|
(1,746)
|
|
|
(290)
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(618)
|
|
|
(2,373)
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(2,113)
|
|
|
(342)
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
2,296
|
|
|
2,337
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(435)
|
|
|
(378)
|
Cash and cash
equivalents at beginning of year
|
|
2,536
|
|
|
2,914
|
Cash and cash
equivalents at end of year
|
$
|
2,101
|
|
$
|
2,536
|
IGI LABORATORIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS FOR YEARS ENDED DECEMBER 31, 2013 and
2012
(in thousands,
except share and per share information)
|
|
|
|
2013
|
|
|
2012
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,101
|
|
$
|
2,536
|
Accounts
receivable, net
|
|
4,947
|
|
|
1,577
|
Inventories
|
|
2,869
|
|
|
1,773
|
Prepaid
expenses and other receivables
|
|
641
|
|
|
253
|
Total current
assets
|
|
10,558
|
|
|
6,139
|
Property, plant and
equipment, net
|
|
2,623
|
|
|
2,691
|
Product acquisition
costs, net
|
|
1,766
|
|
|
-
|
Other long term
assets
|
|
480
|
|
|
597
|
Total
assets
|
$
|
15,427
|
|
$
|
9,427
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,523
|
|
$
|
1,091
|
Accrued
expenses
|
|
2,915
|
|
|
820
|
Deferred
income, current
|
|
768
|
|
|
48
|
Capital lease
obligation, current
|
|
15
|
|
|
17
|
Total current
liabilities
|
|
5,221
|
|
|
1,976
|
|
|
|
|
|
|
Note payable,
bank
|
|
3,000
|
|
|
1,000
|
Other long term
liabilities
|
|
15
|
|
|
24
|
Total liabilities
|
|
8,236
|
|
|
3,000
|
|
|
|
|
|
|
Stockholders'
equity:
Series A
Convertible Preferred stock, liquidation preference - $0 at
December 31, 2013 and $500,000 at
December 31, 2012
|
|
-
|
|
|
500
|
Series C
Convertible Preferred stock, liquidation preference - $0 at
December 31, 2013 and $1,764,240
at December 31, 2012
|
|
-
|
|
|
1,517
|
Common
stock
|
|
487
|
|
|
446
|
Additional
paid-in capital
|
|
51,541
|
|
|
47,409
|
Accumulated
deficit
|
|
(44,837)
|
|
|
(43,445)
|
Total stockholders'
equity
|
|
7,191
|
|
|
6,427
|
Total
liabilities and stockholders' equity
|
$
|
15,427
|
|
$
|
9,427
|
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SOURCE IGI Laboratories, Inc.