Celsion Corporation Reports Fourth Quarter 2005 Financial Results; Company Reports Revenue of $4.4 Million for Quarter. Net Loss reduced by 30%.COLUMBIA, Md. -- CELSION CORPORATION (AMEX AMEX See: American Stock Exchange :CLN CLN Clean CLN Community Learning Network CLN Colon CLN Celsion Corporation CLN Class Library for Numbers CLN Credit Linked Note CLN Comitato di Liberazione Nazionale (Committee of National Liberation) CLN Corn Lethal Necrosis ) today announced financial results for its fourth quarter ended December 31, 2005. The Company reported revenue of $4.4 million for the quarter, compared to $1.4 million for the fourth quarter of 2004. The Company recorded a net loss for the fourth quarter of $2.1 million or $0.20 per share, compared to a net loss of $3.1 million or $0.29 per share for the comparable quarter in 2004. The increase in revenues and reduction in the net loss for the quarter and full year was primarily due to income generated from the sale of Prolieve(TM) control units and catheters. Revenue for the year ended December 31, 2005 was $12.3 million compared to revenue of $2.5 million in the comparable period in 2004. Net loss for the year was $8.7 million, or $0.81 per share, compared to a net loss of $14.0 million, or $1.32 per share in 2004. Dr. Lawrence Olanoff, Celsion's Chief Executive Officer, commented, "Prolieve sales in the quarter were strong, exceeding our guidance of $4 million, and gross margin on product sales increased from 31.8% to 37.3%. For 2005, overall, Prolieve sales were five times those generated in 2004. The increasing profit contribution from Prolieve combined with a reduction in expenses enabled us to reduce our operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the year by 38%. For the fourth quarter of 2005 our cash burn was less than $1 million dollars principally due to the margin earned on Prolieve sales and a reduction of our inventory of disposables. Overall we are very pleased with our results for 2005 which reflect continued solid growth in the Prolieve franchise. We anticipate that our annual sales revenue from Prolieve for 2006 could approach $15 million with a continuing improvement in gross margin. We expect that sales in the first quarter of 2006 will be significantly higher than the corresponding quarter in 2005; however, they will be less than those recorded in the fourth quarter of 2005 which included catheter catheter /cath·e·ter/ (kath´e-ter) 1. a tubular, flexible surgical instrument that is inserted into a cavity of the body to withdraw or introduce fluid. 2. urethral c. kit shipments to Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, to build safety stock to cover the transition to our new disposable manufacturer. In parallel, our ThermoDox drug development program continues to advance in an ongoing Phase I liver cancer Liver Cancer Definition Liver cancer is a relatively rare form of cancer but has a high mortality rate. Liver cancers can be classified into two types. trial and a Phase I dose escalation es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. study in recurrent recurrent /re·cur·rent/ (re-kur´ent) [L. recurrens returning] 1. running back, or toward the source. 2. returning after remissions. re·cur·rent adj. 1. chest wall breast cancer which is soon to be open for enrollment at Duke University Medical Center." ABOUT CELSION: Celsion Corporation, based in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. , is a biotechnology company dedicated to the development and commercialization of heat activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. treatment systems for cancer. Celsion has research, license or commercialization agreements with leading institutions such as the National Institute of Health, Duke University Medical Center, Massachusetts Institute of Technology Massachusetts Institute of Technology, at Cambridge; coeducational; chartered 1861, opened 1865 in Boston, moved 1916. It has long been recognized as an outstanding technological institute and its Sloan School of Management has notable programs in business, , Harbor UCLA Medical Center UCLA Medical Center is a hospital located on the campus of the University of California, Los Angeles in Los Angeles, California. It is rated as one of the top three hospitals in the United States and is the top hospital on the West Coast according to US News & World Report. , Montefiore Medical Center Montefiore Medical Center, in the Bronx, New York, is the university hospital of the Albert Einstein College of Medicine. The hospital, named after Moses Montefiore, is one of the 50 largest employers in New York State [1]. and Memorial Sloan-Kettering Cancer Center The Memorial Sloan-Kettering Cancer Center (MSKCC) in New York City is a cancer treatment and research institution founded in 1884 as the New York Cancer Hospital. The main campus is located at 1275 York Avenue, between 67th and 68th Streets, with other locations in New in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Roswell Park Cancer Institute The Roswell Park Cancer Institute is a cancer research and treatment center located in Buffalo, New York. Founded in 1898 by Dr. Roswell Park, it was the first dedicated medical facility for cancer treatment and research in the United States. in Buffalo, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and Duke University. For more information on Celsion, visit our website: www.celsion.com. Celsion wishes to inform readers that forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this release are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities ; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
Celsion Corporation
Consolidated Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
-----------------------------------------------
2004 2005 2004 2005
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Audited) (Unaudited)
Revenues $ 1,424 $ 4,348 $ 2,507 $ 12,320
Cost of Sales 1,204 2,728 2,101 8,113
----------- ----------- ----------- -----------
Gross Margin 220 1,620 406 4,207
----------- ----------- ----------- -----------
Operating Expenses
Research &
development 2,588 3,081 11,533 10,079
General and
administrative 932 761 3,471 3,409
-----------------------------------------------
Total Operating
Expenses 3,520 3,842 15,004 13,488
-----------------------------------------------
Loss from Operations (3,300) (2,222) (14,598) (9,281)
Other Income/(Expense)
License fee
amortization 143 143 476 572
Interest income
(expense), net 64 (16) 230 120
Loss from investment
in Celsion China
Ltd. (44) (29) (92) (96)
-----------------------------------------------
Net loss before income
taxes (3,137) (2,124) (13,984) (8,685)
Income taxes - - - -
-----------------------------------------------
Net loss $ (3,137) $ (2,124) $ (13,984) $ (8,685)
===============================================
Net loss per common
share (basic and
diluted) $ (0.29) $ (0.20) $ (1.32) $ (0.81)
===============================================
Weighted average
shares outstanding
('000's) 10,715 10,727 10,584 10,725
===============================================
Celsion Corporation
Consolidated Condensed Balance Sheets
(in thousands)
December 31,
-------------------------
2004 2005
------------ -----------
ASSETS (Audited) (Unaudited)
Current assets
Cash and cash equivalents $ 10,484 $ 2,313
Short term investments - 6,000
Accounts receivable 783 765
Inventory 2,202 3,326
Prepaid expenses 679 437
------------ ------------
Total current assets 14,148 12,841
Property and equipment, net 682 571
Investment in Celsion China, Ltd. 108 12
Escrow account - license fee 2,007 2,053
Other assets 107 402
------------ ------------
Total assets $ 17,052 $ 15,879
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 819 $ 1,996
Accrued expenses 738 1,328
Deferred income 571 571
------------ ------------
Total current liabilities 2,128 3,895
Loans Payable - principal and accrued
interest - 6,178
Deferred revenue 2,952 2,381
------------ ------------
Total liabilities 5,080 12,454
------------ ------------
Stockholders' equity
Common stock 1,608 1,608
Additional paid-in capital 84,581 84,719
Accumulated deficit (74,217) (82,902)
------------ ------------
Total stockholders' equity 11,972 3,425
------------ ------------
Total liabilities and stockholders' equity $ 17,052 $ 15,879
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