IGI, Inc. Announces a Profitable Fourth Quarter and 2004 Year End Results.BUENA, N.J. -- IGI IGI International Genealogical Index IGI International Gemological Institute IGI I'm Going In IGI I Get It IGI Institute of Geologists of Ireland IGI Inspector General for Investigations IGI Institution Gang Investigator (prisons) , INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (AMEX AMEX See: American Stock Exchange :IG) a technology company focused on the development of custom products using the patented Novasome(R) delivery technology today announces a profitable fourth quarter and 2004 year end results. 2004 Overview --Chattem, Inc. launches the "Icy Hot Sleeve" a topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. analgesic analgesic (ăn'əljē`zĭk), any of a diverse group of drugs used to relieve pain. Analgesic drugs include the nonsteroidal anti-inflammatory drugs (NSAIDs) such as the salicylates, narcotic drugs such as morphine, and synthetic drugs product developed using the patented Novasome(R) nano-vesicular, transdermal transdermal /trans·der·mal/ (-der´m'l) entering through the dermis, or skin, as in administration of a drug via ointment or patch. trans·der·mal adj. Through or by way of the skin. Technology. --Relieva with Psorberine - Mahonia aquifolium Mahonia aquifolium, n See Oregon grape. 10%, a homeopathic Homeopathic A holistic and natural approach to healthcare. Mentioned in: Ehlers-Danlos Syndrome homeopathic, adj product - is launched using the Novasome(R) delivery technology --Signed a Sublicense sub·li·cense n. A license giving rights of production or marketing of products or services to a person or company that is not the primary holder of such rights. tr.v. Agreement with Tarpan tarpan: see Przewalski's horse. Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , Inc. for the Treatment of Psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the --Signed an Exclusive License Agreement for 'The Treatment of Skin with Adenosine adenosine /aden·o·sine/ (ah-den´o-sen) a purine nucleoside consisting of adenine and ribose; a component of RNA. It is also a cardiac depressant and vasodilator used as an antiarrhythmic and as an adjunct in myocardial perfusion imaging or Adenosine Analogs' for the prevention of photo damaged skin with the University of Massachusetts The system includes UMass Amherst, UMass Boston, UMass Dartmouth (affiliated with Cape Cod Community College), UMass Lowell, and the UMass Medical School. It also has an online school called UMassOnline. --Expanded distribution of products using the Novasome(R) delivery technology into the Asia-Pacific Marketplace Fourth Quarter and Fiscal 2004 Financial Results For the fourth fiscal quarter of 2004, the company today reported net income of $154,000, or $.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended December 31, 2004, compared to net income of $248,000, or $.02 per diluted share, for the fourth quarter of 2003. For the fiscal year, the Company reported a net loss attributable to common stock of $892,000, or $(.08) per diluted share in 2004, compared to net loss attributable to common stock of $322,000, or $(.03) per diluted share in 2003. Total revenues for 2004 were $3,558,000, which represented an increase of $1,000 from revenues of $3,557,000 in 2003. Licensing and royalty income of $1,007,000 in 2004 increased by $351,000 compared to 2003, primarily as a result of a $300,000 payment from Tarpan Therapeutics and royalties from Estee Lauder. A significant portion of the Company's product sales are attributable to a single customer. In addition, licensing and royalty income is primarily generated from arrangements with three customers. Product sales of $2,551,000 in 2004 decreased $350,000, or 12%, compared to 2003 due mainly to lower product sales to Estee Lauder, the Company's major customer, but were partially offset by higher sales to Genesis, Vetoquinol USA and new customers. Cost of sales decreased by $92,000, or 7%, in 2004 as compared to 2003. As a percentage of product sales, cost of sales increased from 46% in 2003 to 49% in 2004. The decrease in gross profit from 54% in 2003 to 51% in 2004, as a percent of product sales, was the result of the change in mix to lower gross profit products sold. Selling, general and administrative expenses decreased by $624,000, or 26%, from $2,422,000 in 2003 to $1,798,000 in 2004. These expenses were 68% of revenues for 2003 compared to 51% in 2004. The decrease is primarily due to a reduction of salaries in 2004, which was a goal of management in 2004. Product development and research expenses increased by $965,000 in 2004, or 127%, compared to 2003. The increase is a result of the Company recording a $545,000 non cash expense related to the SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123 value of 300,000 stock options granted to Dr. Holick under his license agreement and 25,000 stock options granted to Dr. Holick for his service on the Scientific Advisory Board, plus a cash payment of $232,000 made to Dr. Holick in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with his license agreement. The Company has also made a $50,000 cash payment to the University of Massachusetts in accordance with the license agreement between the Company and the University. There are many new projects being undertaken by the research and development department as a result of new agreements signed in 2004. Interest income amounted to $25,000 in 2004 compared to interest income (net of expense) of $7,000 in 2003. The Company had no interest expense in 2004 and only recorded income related to marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has and overnight investments of our daily cash balance. The Company sold a portion of its state tax 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. carry forwards in exchange for proceeds of $298,000 in 2004. IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome(R) nano-vesicular, transdermal delivery technology which contributes value-added qualities to cosmetics, skin care products, dermatological dermatological, dermatologic pertaining to dermatology; of or affecting the skin. formulations and other consumer products, providing improved dermal dermal /der·mal/ (der´mal) pertaining to the dermis or to the skin. der·mal or der·mic adj. Of or relating to the skin or dermis. absorption, controlled and sustained release Sustained-release (SR), extended-release (ER, XR, or XL), time-release or timed-release, controlled-release (CR), or continuous-release (CR or Contin as well as improved stability and greater ease of formulation. IGI has licensed Novasome(R) nano-vesicular delivery technology to leading global dermatological and skin care companies including Johnson & Johnson Consumer Products, Inc., Estee Lauder Corporation, Chattem Inc., Genesis Pharmaceutical, Inc. and Apollo Pharmaceutical, Inc., and recently sub-licensed the rights to obtain FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval for and market IGI's PTH PTH abbr. parathyroid hormone Parathyroid hormone (PTH) A chemical substance produced by the parathyroid glands. This hormone is a major element in regulating calcium in the body. (1-34) compound using Novasome(R) nano-vesicular delivery technology for psoriasis, which is slated for Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II , to Tarpan Pharmaceuticals, Inc. IGI is also exploring the licensing of the topical PTH (7-34) compound for the prevention/treatment of chemotherapy chemotherapy (kē'mōthĕr`əpē), treatment of disease with chemicals or drugs. One chemotherapeutic approach is the development of selectively toxic substances, i.e. induced-alopecia in patients undergoing chemotherapy. This report contains 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission.
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the years ended December 31, 2004, 2003 and 2002
(in thousands, except share and per share information)
2004 2003 2002
----------- ----------- -----------
Revenues:
Sales, net $2,551 $2,901 $3,513
Licensing and royalty income 1,007 656 851
----------- ----------- -----------
Total revenues 3,558 3,557 4,364
Costs and Expenses:
Cost of sales 1,253 1,345 1,378
Selling, general and
administrative expenses 1,798 2,422 2,358
Product development and
research expenses 1,727 762 549
----------- ----------- -----------
Operating profit (loss) (1,220) (972) 79
Interest income (expense), net 25 7 (283)
Other income, net 13 - 58
Loss on early extinguishment of
debt - - (2,654)
----------- ----------- -----------
Loss from continuing operations
before provision (benefit) for
income taxes (1,182) (965) (2,800)
Provision (benefit) for income
taxes (290) (208) 330
----------- ----------- -----------
Loss from continuing operations (892) (757) (3,130)
Discontinued operations:
Loss from operations of
discontinued businesses - - (523)
Gain on disposal of
discontinued businesses - 435 12,433
----------- ----------- -----------
Net income (loss) (892) (322) 8,780
Mark to market for detachable stock
warrants - - (133)
----------- ----------- -----------
Net income (loss) attributable to
common stockholders $(892) $(322) $8,647
=========== =========== ===========
Basic and Diluted Earnings (Loss)
Per Common Share
Continued operations $(.08) $(.07) $(.28)
Discontinued operations - .04 1.04
----------- ----------- -----------
Net income (loss) per share $(.08) $(.03) $.76
=========== =========== ===========
Weighted average of common stock
outstanding
Basic and diluted 11,547,791 11,373,952 11,429,978
=========== =========== ===========
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2004 and 2003
(in thousands, except share and per share information)
2004 2003
-------- -------
ASSETS
Current assets:
Cash and cash equivalents $380 $821
Restricted cash 50 50
Marketable securities 377 800
Accounts receivable, less allowance for doubtful
accounts of $10 and $16 in 2004 and 2003,
respectively 306 350
Licensing and royalty income receivable 155 17
Inventories 247 192
Prepaid expenses and other current assets 8 133
-------- -------
Total current assets 1,523 2,363
Property, plant and equipment, net 3,168 2,607
Other assets 39 54
-------- -------
Total assets $4,730 $5,024
======== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 157 105
Accrued payroll 16 75
Other accrued expenses 243 301
Income taxes payable 5 7
Deferred income 180 165
-------- -------
Total current liabilities 601 653
Deferred income 121 205
-------- -------
Total liabilities 722 858
-------- -------
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value, 50,000,000 shares
authorized;
13,547,520 and 13,351,237 shares issued in 2004
and 2003, respectively 135 134
Additional paid-in capital 24,467 23,702
Accumulated deficit (19,167)(18,275)
Accumulated other comprehensive income (32) -
Less treasury stock, 1,965,740 shares at cost
In 2004 and 2003 (1,395) (1,395)
-------- -------
Total stockholders' equity 4,008 4,166
-------- -------
Total liabilities and stockholders'
equity $4,730 $5,024
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