IGI Laboratories Announces 1st Quarter 2012 Results

IGI Laboratories, Inc. (NYSE Amex: IG), a New Jersey based topical generic drug development and manufacturing company, provided its financial results for the first quarter ended March 31, 2012.

First Quarter 2012 Highlights vs. 2011
  • Total revenues of $1.8 million for Q1 2012, an increase of 16% over same quarter in 2011
  • IGI executed two new customer contracts in the first quarter of 2012.
  • Successful Pre-Approval Inspection by USFDA in the first quarter of 2012
  • Gross margins improved to 25% in Q1 2012 as compared to 21% in Q1 2011.
  • Net loss improved by $0.3 million to $0.7 million in Q1 2012 as compared to $1.0 million in the same quarter in 2011.
  • Net loss per share was $0.02 per share in the first quarter of 2012 as compared to $0.03 in 2011
  • Net loss included research and development costs of $0.5 million and $0.4 million in 2012 and 2011

IGI’s President and Chief Executive Officer, Charlie Moore, stated, “Historically, the first quarter of each year is a challenging one for IGI. We did have a slow start to 2012, but we had a strong finish to the quarter which resulted in a marked improvement over the first quarter of last year. We improved revenues from both our contract manufacturing business as well as revenue from our research and development work. Our increased revenues, improved product mix and our continual focus on cost control allowed us to improve margins over last year as well.”

IGI entered into supply agreements with two new customers. Both agreements call for IGI to manufacture and package topical pharmaceutical products.

The first agreement is with a brand pharmaceutical company and provides for the site transfer of a well-recognized branded topical drug product to IGI’s facility in Buena, NJ. IGI will be the sole manufacturing and packaging site for the product.

Under the second agreement, IGI will develop generic versions of two topical drug products on behalf of the customer. Upon FDA approval, IGI will manufacture and package the products in the customer’s label.

“These agreements further demonstrate our commitment to the topical pharmaceutical market,” commented IGI President and CEO Charlie Moore. “This contract manufacturing business is complementary to our objective to develop generic topical drug products in the IGI label. We expect to file an additional four to six ANDAs in 2012.”

IGI will hold a conference call at 4:15 pm ET on Tuesday, May 15, 2012 to discuss 1st quarter 2012 results. The Company invites you to listen to the call by dialing 1-866-783-2143. International participants should call 1-857-350-1602. The passcode for the conference call is 60480073. This call is being webcast by Thomson and can be accessed at IGI's website at www.igilabs.com.
   
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31, 2012 and 2011
(in thousands, except shares and per share information)
 
2012 2011
Revenues:
Product sales, net $ 1,510 $ 1,361
Research and development income 308 151
Licensing, royalty and other revenue   14     62  
Total revenues 1,832 1,574
 
Costs and Expenses:
Cost of sales 1,366 1,241
Selling, general and administrative expenses 659 933
Product development and research expenses   471     379  
Total costs and expenses   2,496     2,553  
Operating loss (664 ) (979 )
Interest income (expense), net   (71 )   (55 )
 
Net Loss $ (735 ) $ (1,034 )
 
 
Basic and diluted loss per share $ (0.02 ) $ (0.03 )
 
 
Weighted average shares of common stock outstanding
Basic and diluted   39,500,559     39,313,087  
 
   
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2012 and 2011
(in thousands)
 
 
2012 2011

Cash flows from operating activities:
Net loss $ (735 ) $ (1,034 )
Non-cash expenses 237 281
Changes in operating assets and liabilities   26     (180 )
 
Net cash used in operating activities (472 ) (933 )
 
Net cash used in investing activities (254 ) (49 )
 
Net cash provided by financing activities   -     506  
 
Net decrease in cash and cash equivalents (726 ) (476 )
Cash and cash equivalents at beginning of year   2,914     5,116  
Cash and cash equivalents at end of year $ 2,188   $ 4,640  
 
   
IGI LABORATORIES, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
 

March 31,

2012

December 31,

2011*
ASSETS
Current assets:
Cash and cash equivalents $ 2,188 $ 2,914
Accounts receivable, less allowance for doubtful accounts of $16 for 2012 and 2011 1,567 1,197
Inventories 1,199 1,195
Other receivables 9 250
Prepaid expenses   252     130  
Total current assets 5,215 5,686
Property, plant and equipment, net 2,886 2,800
Restricted cash, long term 54 54
License fee, net 375 400
Debt issuance costs, net 599 639
Other   175     57  
Total assets $ 9,304   $ 9,636  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 833 $ 629
Accrued expenses 503 611
Deferred income, current 236 38
Capital lease obligation, current   46     38  
Total current liabilities 1,618 1,316
 
Note payable, related party 500 500
Deferred income, long term 23 25
Capital lease obligation, long term   47     30  
Total liabilities   2,188     1,871  
 
Commitments and contingencies

 

Stockholders’ equity:

Series A Convertible Preferred stock, liquidation preference - $500,000 at March 31, 2012 and December 31, 2011

500

500

Series C Convertible Preferred stock, liquidation preference - $1,705,849 at March 31, 2012 and $1,686,527 at December 31, 2011

1,517

1,517
Common stock 415 415
Additional paid-in capital 46,332 46,246
Accumulated deficit (40,253 ) (39,518 )
Less treasury stock, 1,965,740 common shares, at cost   (1,395 )   (1,395 )
Total stockholders’ equity   7,116     7,765  
Total liabilities and stockholders' equity $ 9,304   $ 9,636  
 

About IGI Laboratories, Inc.

IGI Laboratories is focused in the development and commercialization of products for the dermatology 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.

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