Management’s Discussion:
“Our unaudited, preliminary product sales for the fourth quarter of 2023 were first reported on
Total sales during the three-month period ended
Finished goods produced increased steadily from approximately
The Company’s objective is to produce finished goods with an approximate sales value of
“The loss in sales and the lower than historically experienced gross margin that we incurred as the result of certain contamination events in our production process materially weakened our financial performance during 2023,” continued
“In addition, we continue to work to achieve FDA approval to commercialize Re-Tain®, a novel alternative to traditional antibiotics to treat subclinical mastitis that is subject to FDA approval,”
Certain Financial Results:
- Product sales increased by 30%, or
$1.2 million , to$5.1 million during the three-month period endedDecember 31, 2023 compared to$3.9 million during the three-month period endedDecember 31, 2022 . - Product sales decreased by 6%, or
$1.1 million , to$17.5 million during the year endedDecember 31, 2023 compared to$18.6 million during the year endedDecember 31, 2022 . - Gross margin earned was 25% of product sales during both of the three-month periods ended
December 31, 2023 and 2022 and 22% and 41% of product sales during the years endedDecember 31, 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 output and write-offs of scrapped inventory. Remediation measures have been implemented that are anticipated to mitigate or significantly reduce the risk of future contamination events. - Net loss was
$1.1 million , or$0.15 per basic share, during the three-month period endedDecember 31, 2023 in comparison to net loss of$1.7 million , or$0.22 per basic share, during the three-month period endedDecember 31, 2022 . - Net loss was
$5.8 million , or$0.75 per basic share, during the year endedDecember 31, 2023 in comparison to net loss of$2.5 million , or$0.32 per basic share, during the year endedDecember 31, 2022 . - EBITDA (a non-GAAP financial measure described on page 5 of this press release) improved to approximately (
$311,000 ) during the three-month period endedDecember 31, 2023 in comparison to ($968,000 ) during the three-month period endedDecember 31, 2022 . EBITDA of approximately($2.6) million during the year endedDecember 31, 2023 is in contrast to EBITDA of$350,000 during the year endedDecember 31, 2022 .
Balance Sheet Data as of
- Cash and cash equivalents decreased to just under
$1 million as ofDecember 31, 2023 from$5.8 million as ofDecember 31, 2022 , with no draw outstanding on the available$1 million line of credit as of these dates. - Net working capital decreased to approximately
$7.3 million as ofDecember 31, 2023 from$10.9 million as ofDecember 31, 2022 . - Stockholders’ equity decreased to
$25 million as ofDecember 31, 2023 from$30.4 million as ofDecember 31, 2022 .
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 press 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
Condensed Statements of Operations (Unaudited)
During the Three-Month Periods Ended | During the Years Ended | ||||||||||||||
(In thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Product sales | $ | 5,096 | $ | 3,911 | $ | 17,472 | $ | 18,568 | |||||||
Costs of goods sold | 3,838 | 2,919 | 13,603 | 10,919 | |||||||||||
Gross margin | 1,258 | 992 | 3,869 | 7,649 | |||||||||||
Product development expenses | 1,066 | 1,049 | 4,395 | 4,494 | |||||||||||
Sales, marketing and administrative expenses | 1,195 | 1,576 | 5,222 | 5,454 | |||||||||||
Operating expenses | 2,261 | 2,625 | 9,617 | 9,948 | |||||||||||
NET OPERATING LOSS | (1,003 | ) | (1,633 | ) | (5,748 | ) | (2,299 | ) | |||||||
Other expenses, net | 135 | 33 | 22 | 187 | |||||||||||
LOSS BEFORE INCOME TAXES | (1,138 | ) | (1,666 | ) | (5,770 | ) | (2,486 | ) | |||||||
Income tax expense | 2 | 2 | 5 | 8 | |||||||||||
NET LOSS | $ | (1,140 | ) | $ | (1,668 | ) | $ | (5,775 | ) | $ | (2,494 | ) | |||
Basic weighted average common shares outstanding | 7,750 | 7,747 | 7,748 | 7,745 | |||||||||||
Basic net loss per share | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.75 | ) | $ | (0.32 | ) | |||
Diluted weighted average common shares outstanding | 7,750 | 7,747 | 7,748 | 7,745 | |||||||||||
Diluted net loss per share | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.75 | ) | $ | (0.32 | ) | |||
Selected Balance Sheet Data (In thousands) (Unaudited)
As of | As of | |||||
Cash and cash equivalents | $ | 979 | $ | 5,792 | ||
Net working capital | 7,272 | 10,923 | ||||
Total assets | 43,808 | 44,861 | ||||
Stockholders’ equity | $ | 24,993 | $ | 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 | During the Years Ended | ||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Loss before income taxes | $ | (1,138 | ) | $ | (1,666 | ) | $ | (5,770 | ) | $ | (2,486 | ) | |||
Interest expense (excluding debt issuance and debt discount costs) | 142 | 92 | 453 | 341 | |||||||||||
Depreciation | 670 | 599 | 2,698 | 2,468 | |||||||||||
Amortization | 15 | 7 | 42 | 27 | |||||||||||
EBITDA | $ | (311 | ) | $ | (968 | ) | $ | (2,577 | ) | $ | 350 | ||||
EBITDA included stock-based compensation expense of approximately
Conference Call:
The Company has scheduled a conference call on
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
Contacts: | |
(207) 878-2770 | |
(602) 889-9700 | |
iccc@lythampartners.com |
Source:
2024 GlobeNewswire, Inc., source