PORTLAND, Maine – May 13, 2014 – 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 its first quarter ended March 31, 2014.
First Quarter Overview:
- Company reports first quarter product sales of $2.08 million, an increase of 13% compared to the same period a year ago;
- Seventh (7th) consecutive quarter of positive sales growth and thirteenth (13th) quarter of positive sales growth out of the last 14 quarters;
- Cash, cash equivalents, short-term and long-term investments balance at March 31, 2014 was $5.47 million;
- Approximately $412,000 in product development expenses incurred during the first quarter related to modifications to its facility to fulfill Mast Out® regulatory requirements for the manufacture of Nisin and to verify production costs; and Significant progress made towards Company’s objective of achieving New Animal Drug Application (NADA) approval and test marketing of Mast Out® by early 2016.
For the first quarter ended March 31, 2014, ImmuCell reported a product sales increase of 13% to $2.08 million versus $1.85 million in the comparable period of the prior year. The Company has now achieved positive sales growth for seven consecutive quarters and for thirteen out of the last fourteen quarters. Sales during the quarter were primarily driven by continued market acceptance of First Defense® for the prevention of calf scours. Also, during the second half of 2013, production had been slowed in order to upgrade certain pieces of critical manufacturing equipment. The Company ended the first quarter with approximately $155,000 of orders that were placed by customers but could not be filled by the Company before April 1, 2014. The Company is now rebuilding inventory back to historical levels with production back at full and increased capacity. Had the Company been able to fulfill all the orders placed during the first quarter in accordance with its normal shipping schedule, sales would have grown by 21% during the quarter as compared to the first quarter of 2013.
Gross margin during the first quarter of 2014 was 55%, compared to 57% in the first quarter of last year. In contrast, the gross margin was 44% during the six-month period ended December 31, 2013. Gross margin declined below normal levels during the second half of 2013 as production was slowed to replace and upgrade critical manufacturing equipment. The Company expects margins to be maintained in line with current levels throughout 2014.
Sales, marketing and administrative expenses for the first quarter were $543,000 compared to $460,000 during the same period last year. Sales and marketing expenses aggregated 14% and 12% of product sales during the first quarters of 2014 and 2013, respectively. The annual target for these expenses is up to 20% of product sales, but this percentage tends to be lower during the first quarter when seasonal sales are highest.
Product development expenses of $594,000 during the three-month period ended March 31, 2014 were comprised of $412,000 in connection with the installation of its pharmaceutical-grade Nisin production capability (which management considers to be non-recurring, infrequent and unusual expenses) and $182,000 in connection with other product development expenses.
If the Company had elected not to incur the $412,000 in non-recurring, infrequent and unusual product development expenses described above, Net Operating Income during the first quarter of 2014 would have increased from $13,000 to $425,000. This adjusted figure compares favorably to Net Operating Income of $327,000 during the first quarter of 2013. The Net (Loss) was ($13,000), or ($0.004) per share, during the first quarter of 2014, in contrast to Net Income of $204,000, or $0.07 per diluted share, during the first quarter of 2013.
Net Operating Income of $13,000 during the first quarter of 2014 included $113,000 of non-cash depreciation and amortization expenses. In comparison, Net Operating Income of $327,000 during the first quarter of 2013 included $98,000 of non-cash depreciation and amortization expenses.
Press Release 05-13-2014 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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