IGI Laboratories Announces 3rd Quarter 2012 Results
IGI Laboratories Announces 3rd Quarter 2012 Results
BUENA, N.J.--(BUSINESS WIRE)-- IGI Laboratories, Inc. (NYSE Amex: IG), a New Jersey based topical generic drug development and manufacturing company, provided its financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights vs. 2011
Total year to date revenues of $6.3 million, an increase of 10% over the same period in 2011
Total revenues of $2.0 million for Q3 2012, a decrease of 6% over same quarter in 2011
Gross margins year to date improved to 32% in 2012 as compared to 28% in 2011
Gross margins improved to 38% in Q3 2012 as compared to 30% in Q3 2011
Non-GAAP cash provided from operations was $1.1 million for the nine months ended September 30, 2012, as compared to Non-GAAP cash used in operations of $0.9 million in 2011
Net loss was $1.4 million in Q3 2012, which included $0.5 million of amortization of debt issuance costs and approximately $0.4 million related to costs associated with the change in the executive team in July of 2012. Net loss was $0.5 million in Q3 2011
Net loss per share was $0.04 in the third quarter of 2012 as compared to $0.01 in 2011
Net loss included research and development costs of $0.6 million and $0.4 million in Q3 2012 and Q3 2011
IGI entered into a Loan and Security Agreement with Square 1 Bank and drew down $1.0 million in principal amount on August 31, 2012
IGI gained authorization to launch its first IGI label topical prescription products
IGI enters into partnership with DDN to provide logistical support services
IGI's President and Chief Executive Officer, Jason Grenfell-Gardner, stated, "IGI completed its third quarter with total revenues of $2.0 million and improved margins as we continue to see the shift in our customer base to include product sales from more pharmaceutical customers. We have executed all of the significant steps in our go to market strategy and we are on track to launch our first IGI products later this quarter. We successfully refinanced our outstanding credit facility and significantly reduced our borrowing costs, which will allow us more flexibility to finance our business needs in the near term. While the changes to our credit facility and changes to the executive team, negatively impacted the net loss for the quarter, the Company is confident these were necessary steps as IGI focuses on being a leading player in the generic topical pharmaceutical market."
IGI will hold a conference call at 4:15 pm ET on Tuesday, November 13, 2012 to discuss 3rd quarter 2012 results. The Company invites you to listen to the call by dialing 1-800-435-1261. International participants should call 1-617-614-4076. The passcode for the conference call is 82860018.
This call is being webcast by Thomson and can be accessed at IGI's website at www.igilabs.com.
IGI LABORATORIES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
For the three months ended September 30, 2012 and 2011 and the nine months ended September 30, 2012 and 2011 | ||||||||||||||||
(in thousands, except share and per share information) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | 1,464 | $ | 1,945 | $ | 4,835 | $ | 5,030 | ||||||||
Research and development income | 496 | 119 | 1,368 | 539 | ||||||||||||
Licensing, royalty and other income | 26 | 49 | 52 | 142 | ||||||||||||
Total revenues | 1,986 | 2,113 | 6,255 | 5,711 | ||||||||||||
Cost and expenses: | ||||||||||||||||
Cost of sales | 1,222 | 1,479 | 4,271 | 4,113 | ||||||||||||
Selling, general and administrative expenses | 980 | 609 | 2,254 | 2,300 | ||||||||||||
Product development and research expenses | 620 | 442 | 1,735 | 1,573 | ||||||||||||
Total costs and expenses | 2,822 | 2,530 | 8,260 | 7,986 | ||||||||||||
Operating loss | (836 | ) | (417 | ) | (2,005 | ) | (2,275 | ) | ||||||||
Interest expense and other, net | (586 | ) | (70 | ) | (740 | ) | (193 | ) | ||||||||
Net loss | $ | (1,422 | ) | $ | (487 | ) | $ | (2,745 | ) | $ | (2,468 | ) | ||||
Basic and diluted loss per share | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.06 | ) | ||||
Weighted Average of Common Stock and Common Stock Equivalents Outstanding | ||||||||||||||||
Basic and diluted | 39,508,217 | 39,498,096 | 39,510,540 | 39,432,061 | ||||||||||||
IGI LABORATORIES, INC. AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
For the nine months ended September 30, 2012 and 2011 | ||||||
(in thousands) | ||||||
2012 | 2011 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (2,745) | $ | (2,468) | ||
Non-cash expenses | 1,388 | 835 | ||||
Changes in operating assets and liabilities | 156 | (863) | ||||
Net cash used in operating activities | (1,201) | (2,496) | ||||
Net cash used in investing activities | (323) | (192) | ||||
Net cash provided by financing activities | 385 | 551 | ||||
Net decrease in cash and cash equivalents | (1,139) | (2,137) | ||||
Cash and cash equivalents at beginning of period | 2,914 | 5,116 | ||||
Cash and cash equivalents at end of period | $ | 1,775 | $ | 2,979 | ||
IGI LABORATORIES, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP | ||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||||||||||||||||
For the three months ended September 30, 2012 and 2011 and the nine months ended September 30, 2012 and 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
GAAP net cash used in operating activities | $ | (270 | ) | $ | (287 | ) | $ | (1,201 | ) | $ | (2,496 | ) | ||||
Product development and research expenses | 620 | 442 | 1,735 | 1,573 | ||||||||||||
Amortization of debt issuance costs related to refinancing | 545 | - | 545 | - | ||||||||||||
Non-GAAP cash provided by (used in) operating activities | $ | 895 | $ | 155 | $ | 1,079 | $ | (923 | ) | |||||||
IGI LABORATORIES, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share and per share information) | ||||||||
September 30, | December 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,775 | $ | 2,914 | ||||
Accounts receivable, less allowance for doubtful accounts of $16 as of September 30, 2012 and December 31, 2011 | 1,186 | 1,208 | ||||||
Inventories | 1,283 | 1,195 | ||||||
Other receivables | 10 | 239 | ||||||
Prepaid expenses | 149 | 130 | ||||||
Total current assets | 4,403 | 5,686 | ||||||
Property, plant and equipment, net | 2,756 | 2,800 | ||||||
Restricted cash, long term | 54 | 54 | ||||||
License fee, net | 325 | 400 | ||||||
Debt issuance costs, net | 111 | 639 | ||||||
Other | 180 | 57 | ||||||
Total assets | $ | 7,829 | $ | 9,636 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 699 | $ | 629 | ||||
Accrued expenses | 636 | 611 | ||||||
Deferred income, current | 32 | 38 | ||||||
Capital lease obligation, current | 27 | 38 | ||||||
Total current liabilities | 1,394 | 1,316 | ||||||
Note payable | 1,000 | - | ||||||
Note payable, related party | - | 500 | ||||||
Deferred income, long term | 21 | 25 | ||||||
Capital lease obligation, long term | 39 | 30 | ||||||
Total liabilities | 2,454 | 1,871 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Series A Convertible Preferred stock, liquidation preference - $500,000 at September 30, 2012 and December 31, 2011 | 500 | 500 | ||||||
Series C Convertible Preferred stock, liquidation preference - $1,744,705 at September 30, 2012 and $1,686,527 at December 31, 2011 | 1,517 | 1,517 | ||||||
Common stock | 423 | 415 | ||||||
Additional paid-in capital | 46,593 | 46,246 | ||||||
Accumulated deficit | (42,263 | ) | (39,518 | ) | ||||
Less treasury stock, 1,965,740 common shares at cost | (1,395 | ) | (1,395 | ) | ||||
Total stockholders' equity | 5,375 | 7,765 | ||||||
Total liabilities and stockholders' equity | $ | 7,829 | $ | 9,636 | ||||
Non-GAAP Measures
To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), IGI provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP cash provided by (used in) operations. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of IGI's current financial performance. Specifically, IGI believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results and business outlook. Reconciliation of all non-GAAP measures included in this press release to the nearest GAAP measures can be found in the financial tables included in this press release.
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," "possible," "one time," "provides an opportunity," "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 as filed with the Securities and Exchange Commission. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors or IGI Laboratories, Inc.'s ability to implement business strategies. 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.
Jenniffer Collins, 856-697-1441
www.igilabs.com
KEYWORDS: United States North America New Jersey
INDUSTRY KEYWORDS:
The article IGI Laboratories Announces 3rd Quarter 2012 Results originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
