IGI Laboratories Announces 2nd 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 second quarter ended June 30, 2012.

Second Quarter 2012 Highlights vs. 2011
  • Total revenues of $2.4 million for Q2 2012, an increase of 20% over same quarter in 2011
  • Total year to date revenues of $4.3 million, an increase of 19% over the same period in 2011
  • In Q2 2012, IGI submitted three additional abbreviated new drug applications (ANDAs) to the US FDA, bringing the company’s total number of submissions to eight
  • Gross margins improved to 31% in Q2 2012 as compared to 25% in Q1 2012, and were unchanged from Q2 2011
  • Gross margins year to date improved to 29% in 2012 as compared to 27% in 2011
  • Net loss was reduced by $0.4 million to $0.6 million in Q2 2012 as compared to $1.0 million in the same quarter in 2011
  • Net loss per share was $0.01 per share in the second quarter of 2012 as compared to $0.02 in 2011
  • Net loss included research and development costs of $0.6 million and $0.8 million in 2012 and 2011
  • IGI announced the appointment of Jason Grenfell-Gardner as President and CEO

IGI’s President and Chief Executive Officer, Jason Grenfell-Gardner, stated, “IGI completed its second quarter with total revenues of $2.4 million, which is a record quarter for IGI. IGI’s total cash used in operations was $0.9 million, therefore, excluding our $1.1 million of research and development costs year to date to develop our own portfolio of products, our contract formulation and manufacturing services business generated $0.2 million in cash. IGI’s continued improvement in our financial results and successful submission of three ANDAs in the second quarter is certainly a testament to the strong team in place at IGI and I look forward to working with the team to continue to execute on our business plan, to be a leading developer and manufacturer of generic topical prescription drug products.”

IGI will hold a conference call at 4:30 pm ET on Monday, August 13, 2012 to discuss 2nd quarter 2012 results. The Company invites you to listen to the call by dialing 1-866-825-3209. International participants should call 1-617-213-8061. The passcode for the conference call is 24988661. 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 June 30, 2012 and 2011 and the six months ended June 30, 2012 and 2011
(in thousands, except share and per share information)
(Unaudited)
 
 
    Three months ended June 30 ,     Six months ended June 30,
2012     2011 2012     2011
Revenues:
Product sales $ 1,861 $ 1,724 $ 3,371 $ 3,085
Research and development income 564 268 872 420
Licensing, royalty and other income   12     32     26     93  
Total revenues   2,437     2,024     4,269     3,598  
 
Cost and expenses:
Cost of sales 1,683 1,393 3,049 2,634
Selling, general and administrative expenses 615 758 1,273 1,691
Product development and research expenses   644     752     1,116     1,131  
Total costs and expenses   2,942     2,903     5,438     5,456  
Operating loss (505 ) (879 ) (1,169 ) (1,858 )
Interest expense and other, net   (83 )   (68 )   (154 )   (122 )

 
Net loss $ (588 ) $ (947 ) $ (1,323 ) $ (1,980 )
 
 
 
Basic and diluted loss per share $ (0.01 ) $ (0.02 ) $ (0.03 ) $ (0.05 )
 
 
 

Weighted Average of Common Stock and Common Stock Equivalents Outstanding
Basic and diluted 39,522,868 39,482,968 39,511,745 39,398,497
 
 
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2012 and 2011
(in thousands)
 
 
    2012     2011

Cash flows from operating activities:
Net loss $ (1,323 ) $ (1,980 )
Non-cash expenses 539 562
Changes in operating assets and liabilities   (147 )   (791 )
 
Net cash used in operating activities (931 ) (2,209 )
 
Net cash used in investing activities (336 ) (78 )
 
Net cash provided by financing activities   4     558  
 
Net decrease in cash and cash equivalents (1,263 ) (1,729 )
Cash and cash equivalents at beginning of period   2,914     5,116  
Cash and cash equivalents at end of period $ 1,651   $ 3,387  
 
 
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(in thousands, except share and per share information)
 
 
   

June 30,

2012
   

December 31,

2011
ASSETS
Current assets:
Cash and cash equivalents $ 1,651 $ 2,914

Accounts receivable, less allowance for doubtful accounts of $16 as of June 30, 2012 and December 31, 2011
1,579 1,208
Inventories 1,246 1,195
Other receivables 9 239
Prepaid expenses   181     130  
Total current assets 4,666 5,686
 
Property, plant and equipment, net 2,863 2,800
Restricted cash, long term 54 54
License fee, net 350 400
Debt issuance costs, net 558 639
Other   180     57  
Total assets $ 8,671   $ 9,636  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 740 $ 629
Accrued expenses 658 611
Deferred income, current 39 38
Capital lease obligation, current   37     38  
Total current liabilities 1,474 1,316
 
Note payable, related party 500 500
Deferred income, long term 22 25
Capital lease obligation, long term   43     30  
Total liabilities   2,039     1,871  
 
Commitments and contingencies
 

Stockholders’ equity:

Series A Convertible Preferred stock, liquidation preference - $500,000 at June 30, 2012 and December 31, 2011

500

500

Series C Convertible Preferred stock, liquidation preference - $1,725,171 at June 30, 2012 and $1,686,527 at December 31, 2011

1,517

1,517
Common stock 415 415
Additional paid-in capital 46,436 46,246
Accumulated deficit (40,841 ) (39,518 )
Less treasury stock, 1,965,740 common shares at cost   (1,395 )   (1,395 )
Total stockholders’ equity   6,632     7,765  

Total liabilities and stockholders' equity
$ 8,671   $ 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.

Copyright Business Wire 2010

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