Full Press Release Details
ImmuCell Announces Unaudited Financial Results
the Quarter Ended September 30, 2023
PORTLAND, Maine - November 13, 2023 - 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 September 30, 2023.
Management's Discussion:
"Our unaudited, preliminary product sales for the third quarter
of 2023 were first reported on October 5, 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 several
contamination events materially impacted performance metrics during the first nine months of the year," continued Mr. Brigham. "We
believe that the operational improvements and controls that we have implemented throughout the production process (from farm to finished
goods) will enable us to run more effectively and at a higher output level going forward."
Finished goods produced increased steadily from approximately $3.3
million to $4 million and further to $5.3 million during the first, second and third quarters of 2023, respectively. The Company's
goal is to be able to produce product with an estimated sales value of approximately $6 million per quarter, which would annualize to
about 80% of its estimated full production capacity of approximately $30 million.
"We are implementing and optimizing recent investments to increase
our production capacity and resume full production," added Mr. Brigham. "Third quarter production was approximately 89% of
our quarterly objective."
"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 that is subject to FDA approval," concluded Mr. Brigham.
Certain Financial Results:
Balance Sheet Data as of September 30, 2023:
Cautionary Note Regarding Forward-Looking Statements (Safe Harbor
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 September 30, | During the Nine-Month Periods Ended September 30, | |||||||||||||||
| (In thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Product sales | $ | 5,397 | $ | 4,796 | $ | 12,376 | $ | 14,657 | ||||||||
| Costs of goods sold | 4,130 | 2,950 | 9,764 | 8,000 | ||||||||||||
| Gross margin | 1,267 | 1,846 | 2,612 | 6,657 | ||||||||||||
| Product development expenses | 1,118 | 1,270 | 3,328 | 3,444 | ||||||||||||
| Sales, marketing and administrative expenses | 1,333 | 1,193 | 4,028 | 3,878 | ||||||||||||
| Operating expenses | 2,451 | 2,463 | 7,356 | 7,322 | ||||||||||||
| NET OPERATING LOSS | (1,184 | ) | (617 | ) | (4,744 | ) | (665 | ) | ||||||||
| Other (income) expenses, net | (244 | ) | 34 | (113 | ) | 155 | ||||||||||
| LOSS BEFORE INCOME TAXES | (940 | ) | (651 | ) | (4,631 | ) | (820 | ) | ||||||||
| Income tax expense | - | 4 | 4 | 6 | ||||||||||||
| NET LOSS | $ | (940 | ) | $ | (655 | ) | $ | (4,635 | ) | $ | (826 | ) | ||||
| Basic weighted average common shares outstanding | 7,747 | 7,747 | 7,747 | 7,745 | ||||||||||||
| Basic net loss per share | $ | (0.12 | ) | $ | (0.08 | ) | $ | (0.60 | ) | $ | (0.11 | ) | ||||
| Diluted weighted average common shares outstanding | 7,747 | 7,747 | 7,747 | 7,745 | ||||||||||||
| Diluted net loss per share | $ | (0.12 | ) | $ | (0.08 | ) | $ | (0.60 | ) | $ | (0.11 | ) |
Selected Balance Sheet Data (In thousands)
| As of September 30, 2023 | As of December 31, 2022 | |||||||
| Cash and cash equivalents | $ | 1,989 | $ | 5,792 | ||||
| Net working capital | 8,634 | 10,923 | ||||||
| Total assets | 44,545 | 44,861 | ||||||
| Stockholders' equity | $ | 26,013 | $ | 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 September 30, | During the Nine-Month Periods Ended September 30, | |||||||||||||||
| (In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Loss before income taxes | $ | (940 | ) | $ | (651 | ) | $ | (4,631 | ) | $ | (820 | ) | ||||
| Interest expense (excluding debt issuance and debt discount costs) | 136 | 88 | 311 | 249 | ||||||||||||
| Depreciation | 696 | 627 | 2,027 | 1,869 | ||||||||||||
| Amortization | 13 | 7 | 27 | 20 | ||||||||||||
| EBITDA | $ | (95 | ) | $ | 71 | $ | (2,266 | ) | $ | 1,318 |
EBITDA included stock-based compensation expense of approximately $96,000
and $85,000 during the three-month periods ended September 30, 2023 and 2022, respectively, and $268,000 and $201,000 during the nine-month
periods ended September 30, 2023 and 2022, respectively, which is a non-cash expense that we add back to EBITDA when assessing our cash
The Company will host a conference call on Tuesday, November 14, 2023 at 9:00 AM ET to discuss the full unaudited financial results
for the quarter ended September 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 November 21, 2023 at (877) 344-7529 (toll
free) or (412) 317-0088 (international), utilizing replay access code #5077962. 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.
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 with
a no milk discard claim that provides an alternative to traditional antibiotics. Press releases and other information about the Company
are available at: http://www.immucell.com.