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 its unaudited financial
results for the quarter ended June 30, 2023.
Management’s Discussion:
“Our unaudited, preliminary product sales were first reported on
July 11, 2023,” commented Michael F. Brigham, President and CEO of
ImmuCell. “We have no changes to those figures.”
“The production slowdown that was necessary to remediate a
production contamination event materially hurt performance during
the first half of the year,” continued Mr. Brigham. “We believe
that the operational improvements we have implemented throughout
the production process as part of this remediation will help us run
more effectively at a higher output level going forward.”
The Company is being driven by data as it resolves its temporary
production problem. Product is tested at the beginning, middle and
end of the production process. During the trailing four-month
period ended August 4, 2023, all three quality control tests have
met standards 100% of the time. This improvement from the depth of
the contamination problem in January is allowing the Company to
come back into full production.
“As we recover and resume full production, our goal is to be
able to produce approximately $6 million worth of product per
quarter, which would annualize to about 80% of our estimated full
production capacity of approximately $30 million annually,” added
Mr. Brigham.
“At the same time, we remain poised and excited to revolutionize
the way that subclinical mastitis is treated in today’s dairy
market with Re-Tain®, a novel alternative to
traditional antibiotics,” concluded Mr. Brigham. “We are preparing
to make our third submission of the CMC Technical Section to the
FDA for review shortly, which is a critical milestone in our
efforts to commercialize this product.”
Certain Financial Results:
- Product sales decreased by 9%, or $329,000, to $3.5 million
during the three-month period ended June 30, 2023 compared to $3.9
million during the three-month period ended June 30, 2022.
- Product sales decreased by 29%, or $2.9 million, to $7.0
million during the six-month period ended June 30, 2023 compared to
$9.9 million during the six-month period ended June 30, 2022.
- Product sales decreased by 23%, or $4.8 million, to $15.7
million during the trailing twelve-month period ended June 30, 2023
compared to $20.5 million during the trailing twelve-month period
ended June 30, 2022.
- Gross margin earned was 30% and 44% of product sales during the
three-month periods ended June 30, 2023 and 2022, respectively, and
19% and 49% of product sales during the six-month periods ended
June 30, 2023 and 2022, respectively. The less than normal gross
margin during 2023 was largely the result of product contamination
events in the production processes that resulted in a slowdown in
production output and a write-off of the affected inventory.
Remediation measures have been implemented that are anticipated to
mitigate the risk of recurrence of future contamination
events.
- Net loss was ($1.4) million, or ($0.18) per basic share, during
the three-month period ended June 30, 2023 in comparison to net
loss of ($684,000), or ($0.09) per basic share, during the
three-month period ended June 30, 2022.
- Net loss was ($3.7) million, or ($0.48) per basic share, during
the six-month period ended June 30, 2023 in comparison to net loss
of ($171,000), or ($0.02) per basic share, during the six-month
period ended June 30, 2022.
- EBITDA (a non-GAAP financial measure described on page 5 of
this press release) decreased to approximately ($605,000) during
the three-month period ended June 30, 2023 from $37,000 during the
three-month period ended June 30, 2022 and to approximately ($2.2)
million during the six-month period ended June 30, 2023 from $1.2
million during the six-month period ended June 30, 2022.
Balance Sheet Data as of June 30, 2023 (and a subsequent
event):
- Cash and cash equivalents decreased to $1.5 million as of June
30, 2023 from $5.8 million as of December 31, 2022.
- Net working capital decreased to approximately $6.8 million as
of June 30, 2023 from $10.9 million as of December 31, 2022.
- Stockholders’ equity decreased to $26.9 million as of June 30,
2023 from $30.4 million as of December 31, 2022.
- During the third quarter of 2023, the Company closed on a $3
million debt facility that is repayable under a seven-year
amortization schedule with a balloon principal payment due in three
years.
Cautionary Note Regarding Forward-Looking Statements
(Safe Harbor
Statement):
This Press Release and the statements to be made in the related
earnings conference call referenced herein contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. Forward-looking statements can be
identified by the fact that they do not relate strictly to
historical or current facts and will often include words such as
“expects”, “may”, “anticipates”, “aims”, “intends”, “would”,
“could”, “should”, “will”, “plans”, “believes”, “estimates”,
“targets”, “projects”, “forecasts”, “seeks” and similar words and
expressions. Such statements include, but are not limited to, any
forward-looking 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; future demand for our
products; the scope and timing of ongoing and future product
development work and commercialization of our products; dairy
producers’ level of interest in treating subclinical mastitis given
the current economic and market conditions; the expected efficacy
of new products; our ability to increase production output and
reduce costs of goods sold per unit; the 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 effectiveness of our contamination remediation
efforts; the likelihood, severity or impact of future contamination
events; the robustness of our manufacturing processes and related
technical issues; estimates about our production capacity,
efficiency and yield; future regulatory requirements relating to
our products; future expense ratios and margins; the efficacy of
our investments in our business; anticipated changes in our
manufacturing capabilities and efficiencies; and any other
statements that are not historical facts. These statements are
intended to provide management's current expectation of future
events as of the date of this earnings release, are based on
management's estimates, projections, beliefs and assumptions as of
the date hereof; and are not guarantees of future performance. Such
statements involve known and unknown risks and uncertainties that
may cause the Company's actual results, financial or operational
performance or achievements to be materially different from those
expressed or implied by these forward-looking statements,
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
(including the consequences of backlogs), uncertainty associated
with the timing and volume of customer orders as we come out of a
prolonged backlog, adverse impacts of supply chain disruptions on
our operations and customer and supplier relationships, commercial
and operational risks relating to our current and planned expansion
of production capacity, and other risks and uncertainties detailed
from time to time in filings we make with the Securities and
Exchange Commission (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. In addition, there can be no
assurance that future risks, uncertainties or developments
affecting us will be those that we anticipate. We undertake no
obligation to update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Condensed Statements of Operations
(Unaudited) |
|
|
|
|
|
During the Three-Month Periods Ended June
30, |
|
During the Six-Month Periods Ended June
30, |
(In thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Product sales |
$3,533 |
|
|
$3,861 |
|
|
$6,979 |
|
|
$9,861 |
|
Costs of goods sold |
|
2,489 |
|
|
|
2,154 |
|
|
|
5,635 |
|
|
|
5,051 |
|
Gross margin |
|
1,044 |
|
|
|
1,707 |
|
|
|
1,344 |
|
|
|
4,810 |
|
|
|
|
|
|
|
|
|
Product development
expenses |
|
1,100 |
|
|
|
1,138 |
|
|
|
2,210 |
|
|
|
2,175 |
|
Sales, marketing and
administrative expenses |
|
1,248 |
|
|
|
1,188 |
|
|
|
2,695 |
|
|
|
2,684 |
|
Operating expenses |
|
2,348 |
|
|
|
2,326 |
|
|
|
4,905 |
|
|
|
4,859 |
|
|
|
|
|
|
|
|
|
NET OPERATING
LOSS |
|
(1,304 |
) |
|
|
(619 |
) |
|
|
(3,561 |
) |
|
|
(49 |
) |
|
|
|
|
|
|
|
|
Other expenses, net |
|
74 |
|
|
|
64 |
|
|
|
131 |
|
|
|
120 |
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES |
|
(1,378 |
) |
|
|
(683 |
) |
|
|
(3,692 |
) |
|
|
(169 |
) |
|
|
|
|
|
|
|
|
Income tax expense |
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
NET LOSS |
($1,380 |
) |
|
($684 |
) |
|
($3,695 |
) |
|
($171 |
) |
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding |
|
7,747 |
|
|
|
7,745 |
|
|
|
7,747 |
|
|
|
7,743 |
|
Basic net loss per share |
($0.18 |
) |
|
($0.09 |
) |
|
($0.48 |
) |
|
($0.02 |
) |
|
|
|
|
|
|
|
|
Diluted weighted average common shares
outstanding |
|
7,747 |
|
|
|
7,745 |
|
|
|
7,747 |
|
|
|
7,743 |
|
Diluted net loss per share |
($0.18 |
) |
|
($0.09 |
) |
|
($0.48 |
) |
|
($0.02 |
) |
|
|
|
|
|
|
|
|
Selected Balance Sheet Data (In thousands)
(Unaudited) |
|
|
|
|
|
|
|
|
As ofJune 30, 2023 |
|
As of December 31, 2022 |
|
Cash and cash equivalents |
$1,454 |
|
|
$5,792 |
|
|
Net working capital |
6,752 |
|
|
10,923 |
|
|
Total
assets |
44,007 |
|
|
44,861 |
|
|
Stockholders’ equity |
$26,857 |
|
|
$30,380 |
|
|
Non-GAAP Financial 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 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
measure of Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) 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 calculate EBITDA as described
in the following table:
|
During the Three-Month Periods Ended June 30, |
|
During the Six-Month Periods Ended June
30, |
(In thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
($1,378 |
) |
|
($683 |
) |
|
($3,692 |
) |
|
($169 |
) |
Interest expense (excluding
debt issuance costs) |
|
87 |
|
|
|
89 |
|
|
|
175 |
|
|
|
162 |
|
Depreciation |
|
679 |
|
|
|
624 |
|
|
|
1,332 |
|
|
|
1,241 |
|
Amortization |
|
7 |
|
|
|
7 |
|
|
|
14 |
|
|
|
14 |
|
EBITDA |
($605 |
) |
|
$37 |
|
|
($2,171 |
) |
|
$1,248 |
|
EBITDA included stock-based compensation expense of
approximately $76,000 and $62,000 during the three-month periods
ended June 30, 2023 and 2022, respectively, and $172,000 and
$116,000 during the six-month periods ended June 30, 2023 and 2022,
respectively, which is a non-cash expense that we add back to
EBITDA when assessing our cash flows.
Conference Call:The Company will host a
conference call on Friday, August 11, 2023 at 9:00 AM ET to discuss
the full unaudited financial results for the quarter ended June 30,
2023. Interested parties can access the conference call by dialing
(844) 855-9502 (toll free) or (412) 317-5499 (international).
A teleconference replay of the call will be available until August
19, 2023 at (877) 344-7529 (toll free) or (412) 317-0088
(international), utilizing replay access code #5465238. 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.
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 manufactures
and markets First Defense®, providing
Immediate Immunity™ to newborn dairy and beef
calves, and is in the late stages of developing
Re-Tain®, a novel treatment for subclinical
mastitis in dairy cows 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.
Contacts: |
Michael F.
Brigham, President and CEO |
|
ImmuCell Corporation |
|
(207) 878-2770 |
|
|
|
Joe Diaz, Robert Blum and Joe Dorame |
|
Lytham Partners, LLC |
|
(602) 889-9700 |
|
iccc@lythampartners.com |
ImmuCell (NASDAQ:ICCC)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
ImmuCell (NASDAQ:ICCC)
Historical Stock Chart
Von Mai 2023 bis Mai 2024