ImmuCell Announces Unaudited Financial Results for the Year Ended December 31, 2019
February 18 2020 - 04:05PM
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 year ended December 31, 2019.
Product Sales Results:
- Total product sales increased by $2,737,000, or 25%, to
$13,723,000 during the year ended December 31, 2019 versus the year
ended December 31, 2018.
- Total product sales increased by $1,512,000, or 30%, to
$6,602,000 during the six-month period ended December 31, 2019
versus the comparable period during 2018.
- Total product sales increased by $695,000, or 24%, to
$3,632,000 during the quarter ended December 31, 2019 versus the
comparable period during 2018.
- Sales of the First Defense® product line
increased by 24% during the year and quarter ended December 31,
2019 versus the comparable periods during 2018.
Management’s Discussion:“We believe dairy and
beef producers are increasingly coming to understand our value
proposition of less needles in cows and less antibiotics in
calves,” commented Michael F. Brigham, President and CEO. “We are
the only veterinary biologic line offering measured levels of
antibody-driven immunity against bacterial and viral scours
providing Immediate Immunity™ to newborn dairy and
beef calves against the three most prevalent pathogens – E. coli,
coronavirus and rotavirus.”
“To meet growing demand, construction of our expanded
manufacturing facility to increase production capacity for the
First Defense® product line is well under way,”
Mr. Brigham added. “We expect to substantially complete this
work on schedule around the end of the upcoming second quarter
increasing our annual production capacity from approximately $18
million to approximately $27 million.”
“During the third quarter of 2019, the FDA conducted a
pre-approval inspection of our Re-Tain™ Drug
Substance manufacturing facility,” Mr. Brigham continued. “We
have responded to the FDA’s findings without significant cost or
any delay to the timeline to product approval.”
Other Financial Results:
- Gross margin earned was 49% and 47% of product sales during the
years ended December 31, 2019 and 2018, respectively.
- Product development expenses were $3,688,000 during the year
ended December 31, 2019 in comparison to $3,517,000 during the year
ended December 31, 2018, an increase of approximately $171,000, or
5%.
- Net loss was $1,296,000, or $0.19 per share, during the year
ended December 31, 2019 in comparison to net loss of $2,322,000, or
$0.42 per share, during the year ended December 31, 2018. The
2018 loss included a non-cash expense of $563,000 recorded during
the second quarter of 2018 as a reserve against deferred tax
assets.
- Net loss was $310,000, or $0.06 per share, during the fourth
quarter of 2019 in comparison to net loss of $1,052,000, or $0.19
per share, during the fourth quarter of 2018.
- EBITDA (a non-GAAP financial measure, see page 4 of this press
release) increased to approximately $1,432,000 during the year
ended December 31, 2019 from approximately $88,000 during the year
ended December 31, 2018.
Balance Sheet Data as of December 31,
2019:
- Cash, cash equivalents and short-term investments increased to
$8.8 million as of December 31, 2019 from $2.5 million as of
December 31, 2018.
- Net working capital increased to $10.7 million as of December
31, 2019 from $3.9 million as of December 31, 2018.
- Stockholders’ equity increased to $29.0 million as of December
31, 2019 from $21.7 million as of December 31, 2018.
Conference Call: Interested parties can access
the conference call scheduled by the Company to review the 2019
financial results by dialing (844) 855-9502 (toll free) or (412)
317-5499 (international) at 9:00 AM ET on Wednesday, February 19,
2020. A teleconference replay of the call will be available
for seven days at (877) 344-7529 (toll free) or (412) 317-0088
(international), utilizing confirmation #10138781. Investors are
encouraged to review the Company’s updated Corporate Presentation
slide deck that provides an overview of the Company’s business and
is available under the “Investors” tab of the Company’s website at
www.immucell.com, or by request to the Company. The Company expects
to file its Annual Report on Form 10-K on or about March 27,
2020.
|
Condensed Statements of Operations
(Unaudited) |
|
|
|
|
|
During the Three-Month Periods
EndedDecember 31, |
|
During the Years EndedDecember
31, |
(In thousands, except per share
amounts) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Product sales |
$3,632 |
|
|
$2,937 |
|
|
$13,723 |
|
|
$10,986 |
|
Costs of goods sold |
|
1,794 |
|
|
|
1,541 |
|
|
|
6,983 |
|
|
|
5,792 |
|
Gross margin |
|
1,838 |
|
|
|
1,396 |
|
|
|
6,740 |
|
|
|
5,194 |
|
|
|
|
|
|
|
|
|
Sales, marketing and
administrative expenses |
|
1,108 |
|
|
|
1,059 |
|
|
|
4,006 |
|
|
|
3,824 |
|
Product development expenses |
|
972 |
|
|
|
1,263 |
|
|
|
3,688 |
|
|
|
3,517 |
|
Sale of technology |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
(700 |
) |
Operating expenses |
|
2,080 |
|
|
|
2,322 |
|
|
|
7,694 |
|
|
|
6,641 |
|
|
|
|
|
|
|
|
|
NET OPERATING
LOSS |
|
(242 |
) |
|
|
(926 |
) |
|
|
(954 |
) |
|
|
(1,447 |
) |
|
|
|
|
|
|
|
|
Other expenses, net |
|
72 |
|
|
|
112 |
|
|
|
314 |
|
|
|
413 |
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES |
|
(314 |
) |
|
|
(1,038 |
) |
|
|
(1,268 |
) |
|
|
(1,860 |
) |
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
(4 |
) |
|
|
14 |
|
|
|
28 |
|
|
|
462 |
|
|
|
|
|
|
|
|
|
NET LOSS |
($310 |
) |
|
($1,052 |
) |
|
($1,296 |
) |
|
($2,322 |
) |
|
|
|
|
|
|
|
|
Basic weighted average common shares Outstanding |
|
5,408 |
|
|
|
5,501 |
|
|
|
6,819 |
|
|
|
5,486 |
|
Basic net loss per share |
($0.06 |
) |
|
($0.19 |
) |
|
($0.19 |
) |
|
($0.42 |
) |
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding |
|
5,408 |
|
|
|
5,501 |
|
|
|
6,819 |
|
|
|
5,486 |
|
Diluted net loss per share |
($0.06 |
) |
|
($0.19 |
) |
|
($0.19 |
) |
|
($0.42 |
) |
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data (In thousands)
(Unaudited) |
|
|
|
|
|
|
As ofDecember 31, 2019 |
|
As ofDecember 31, 2018 |
|
|
|
|
|
Cash, cash equivalents and short-term investments |
$ |
8,774 |
|
|
$ |
2,521 |
|
Net working capital |
|
10,694 |
|
|
|
3,856 |
|
Total assets |
|
38,692 |
|
|
|
32,731 |
|
Stockholders’ equity |
$ |
28,991 |
|
|
$ |
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 these
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. We calculate non-GAAP income before income taxes and
before certain non-cash expenses as indicated in the table
below:
|
During the Years Ended December
31, |
(In thousands) |
2019 |
|
2018 |
|
|
|
|
Loss before income taxes |
($1,267 |
) |
|
($1,860 |
) |
Depreciation |
|
2,248 |
|
|
|
1,502 |
|
Amortization |
|
36 |
|
|
|
36 |
|
Stock-based compensation |
|
313 |
|
|
|
344 |
|
Income before income taxes and
certain non-cash expenses |
$1,330 |
|
|
$22 |
|
|
|
|
|
|
|
|
|
The figures reported above differ from the calculation of
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) in two significant ways. We have not added back
interest expense because we do pay cash for interest. Interest
expense was approximately $415,000 and $411,000 during the years
ended December 31, 2019 and 2018, respectively. We have added back
stock-based compensation expense because this is a non-cash expense
that is not added back to the calculation of EBITDA. EBITDA
increased to approximately $1,432,000 during the year ended
December 31, 2019 from approximately $88,000 during the year ended
December 31, 2018.
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 subclinical
mastitis without a milk discard requirement that provides an
alternative to traditional antibiotics. 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 or operational
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, efficiency and
yield; 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 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 and delays 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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