PORTLAND, Maine – February 11, 2015 – ImmuCell Corporation (NasdaqCM: ICCC), a growing animal health company that is developing, manufacturing and selling products that improve animal health and productivity in the dairy and beef industries, today announced financial results for 2014 and its fourth quarter ended December 31, 2014.
2014 Full Year and Fourth Quarter Overview:
- Sales increased 26% to $7.60 million for full year 2014, compared to a year ago;
- Sales increased 41% to $2.21 million during fourth quarter 2014, compared to same quarter a year ago;
- Tenth (10th) consecutive quarter of positive sales growth and 16th quarter of positive sales growth out of the last 17 quarters, compared to same periods in prior years;
- Cash, cash equivalents, short-term and long-term investments balance of $3.84 million at December 31, 2014;
- During first quarter 2015, construction of a 7,100 square foot facility addition was completed, expanding the size of the Company-owned facility to approximately 35,000 square feet and increasing production capacity for First Defense®;
- Investment in facility modifications and processing equipment necessary to verify production costs and to produce pharmaceutical-grade Nisin for the Mast Out® regulatory submission to FDA completed during third quarter 2014;
- Regulatory submission anticipated during third quarter 2015 after new production plant and equipment is optimized and validated; and
- During third quarter 2014, sales of First Defense® surpassed 14 million doses since market launch in 1991.
2014 Full Year and Fourth Quarter Financial Results
For the year ended December 31, 2014, product sales increased by 26% to $7,597,000 compared to $6,007,000 in the prior year. For the fourth quarter ended December 31, 2014, product sales increased by 41% to $2,205,000 compared to $1,559,000 during the same period of the prior year. Sales increases were primarily driven by positive market economics and increased market acceptance of First Defense® and related product line extensions for the prevention of newborn calf scours. Sales of the First Defense® product line increased by 44% and 27% during the three-month and twelve-month periods ended December 31, 2014, respectively, in comparison to the same periods ended December 31, 2013.
Gross margin during the year ended December 31, 2014 was 59% of product sales, compared to 51% during the prior year. Gross margin during the fourth quarter of 2014 was 61% of product sales, compared to 39% in the fourth quarter of 2013. Driven by First Defense® sales, the Company expects to maintain margins above 50% for the foreseeable future.
Sales and marketing expenses for the year ended December 31, 2014 were $1,317,000 compared to $987,000 during 2013. Sales and marketing expenses aggregated 17% and 16% of product sales during 2014 and 2013, respectively. Sales and marketing expenses for the fourth quarter of 2014 were $396,000 compared to $262,000 during the fourth quarter of 2013. The annual target for these expenses is up to 20% of product sales.
Product development expenses of $2,179,000 during the year ended December 31, 2014 were comprised of $973,000 in connection with the installation of the pharmaceutical-grade Nisin production facility (which management considers non-recurring, infrequent and unusual expenses) and $1,206,000 in connection with other product development expenses. In comparison, product development expenses during 2013 were $1,154,000, which figure included $110,000 of expenses incurred in connection with this facility investment. Product development expenses increased by $138,000 to $463,000 during the three-month period ended December 31, 2014, as compared to $325,000 during the same period in 2013.
If the Company had elected not to incur $973,000 in non-recurring, infrequent and unusual product development expenses (described above) during 2014, the Net Operating (Loss) of ($206,000) would have been improved to Net Operating Income of $767,000. In comparison, the Net Operating (Loss) of ($20,000) incurred during 2013 would have been improved to Net Operating Income of $90,000 if the $110,000 of expenses related to this facility investment had not been incurred.
The Net Operating (Loss) of ($206,000) during 2014 included $449,000 of non-cash depreciation and amortization expenses. In comparison, the Net Operating (Loss) of ($20,000) during 2013 included $417,000 of non-cash depreciation and amortization expenses.
As projected, after a large investment in product development expenses (described above) primarily during the first half of 2014, the Company returned to profitability during the third quarter of 2014. The Net (Loss) of ($308,000) for the first six months of 2014 was followed by Net Income of $141,000 during the last six months of 2014. The Net (Loss) was ($167,000), or ($0.06) per share, during the year ended December 31 2014, in contrast to Net Income of $117,000, or $0.04 per diluted share, during 2013. Net Income was $131,000, or $0.04 per diluted share, during the fourth quarter of 2014, in contrast to a Net (Loss) of ($151,000), or ($0.05) per share, during the fourth quarter of 2013.
Press Release 02-11-2015 Full Detail
- 10-K 12-31-2013
- XBRL 12-31-2013
SEC Filings – Section 16
View Archive (U.S. Securities and Exchange Commission)
Form 3 and 3/A
Form 4 and 4/A
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