Exhibit 99.1
News From
IGI [LOGO]
Buena, NJ 08310
Release Date: August 12, 2003
Contact: Domenic N. Golato
Senior Vice President & Chief Financial Officer
IGI, Inc.
856-697-1441 ext. 211
www.askigi.com
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IGI, INC. ANNOUNCES SECOND QUARTER RESULTS
BUENA, NJ August 12, 2003 - IGI, INC. (AMEX: IG) today reported a net loss
attributable to common stock of $307,000 or ($.03) per share, for the quarter
ended June 30, 2003, compared to net income attributable to common stock of
$9,294,000, or $.82 per share, for the quarter ended June 30, 2002. For the
six months ended June 30, 2003, the net loss attributable to common stock was
$271,000, or ($.02) per share, compared to net income attributable to common
stock of $8,807,000, or $.78 per share, for the comparable period in 2002.
The loss incurred in the second quarter of 2003 is a result of lower product
sales to Estee Lauder and a $202,000 severance expense accrued for the cost
of the benefits to be provided by the Company under a severance package for
the Company's current President and Chief Executive Officer. The loss was
offset by a $169,000 insurance settlement, net of legal costs, received for
the damages arising from the heating oil leak at the Company's Companion Pet
Products site which is reflected under discontinued operations.
"While we were disappointed in the sales to our largest customer, Estee
Lauder, in the second quarter of 2003, we were able to off set the decline
with sales to two new customers. We have already seen an increase in the
level of orders for products from Estee Lauder in the third quarter and we
continue to work with Chattem, Inc. under the terms of our Joint Development
Agreement. In addition, we have formulated and manufactured a new product for
Vetoquinol, the French firm that acquired IGI's Companion Pet Products
division in 2002," stated Frank Gerardi, Chairman of the Board of IGI.
# # #
IGI is a company committed to grow by applying its technologies to deliver
cost-effective solutions to customer's problems. IGI solves problems in
consumer and skin care markets. An increasing number of IGI's solutions are
based on the patented Novasome(R) microencapsulation technology which offers
value-added qualities to cosmetics, skin care products, chemicals, foods,
beverages and other products.
The statements in this release by Frank Gerardi are forward-looking
statements that are based on current expectations, estimates and projections
about the Company's business based, in part, on assumptions made by
management. These statements are not guarantees of future performance and
involve risks and uncertainties that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or
forecasted in such forward-looking statements due to numerous factors,
including the following: changes in demand for the Company's products,
product mix, the timing of customer orders or deliveries, the impact of
competitive products and pricing, constraints on supplies of critical
components, excess or shortage of production capacity and other risks
discussed in the Company's 10-K for the year ended December 31, 2002. In
addition, such
statements could be affected by general industry and market conditions and
growth rates, and general domestic and international economic conditions.
Such forward-looking statements speak only as of the date on which they are
made and the Company does not undertake any obligation to update any forward-
looking statement to reflect events or circumstances after the date of the
release.
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share information)
(Unaudited)
Three months ended June 30, Six months ended June 30,
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2003 2002 2003 2002
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<s> <c> <c> <c> <c>
Revenues:
Product sales, net $ 718 $ 889 $ 1,523 $ 1,743
Licensing and royalty income 168 175 371 384
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Total revenues 886 1,064 $ 1,894 2,127
Cost and expenses:
Cost of sales 355 359 685 754
Selling, general and administrative expenses 852 671 1,352 1,328
Product development and research expenses 157 143 303 267
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Operating loss (478) (109) (446) (222)
Interest income (expense) 2 (119) 8 (303)
Other income, net - - - 58
Loss on early extinguishment of debt - (2,654) - (2,654)
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Loss from continuing operations before
provision for income taxes (476) (2,882) (438) (3,121)
Provision for income taxes - - 2 6
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Loss from continuing operations (476) (2,882) (440) (3,127)
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Discontinued operations:
Income (loss) from operations of discontinued business - (521) - (401)
Gain on disposal of discontinued business 169 12,468 169 12,468
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Net income (loss) (307) 9,065 (271) 8,940
Mark to market for detachable stock warrants - 229 - (133)
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Net income (loss) attributable to common stock $ (307) $ 9,294 $ (271) $ 8,807
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Basic and Diluted Earnings (Loss) Per Common Share
Continuing operations $ (.04) $ (.24) $ (.04) $ (.29)
Discontinued operations .01 1.06 .02 1.07
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Net income (loss) per share $ (.03) $ .82 $ (.02) $ .78
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Weighted Average of Common Stock and
Common Stock Equivalents Outstanding
Basic and diluted 11,400,449 11,300,454 11,392,063 11,286,574
IGI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
June 30, 2003
(unaudited) December 31, 2002
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<s> <c> <c>
ASSETS
Current assets:
Cash and cash equivalents $ 1,572 $ 1,999
Accounts receivable, less allowance for doubtful accounts
of $21 and $35 in 2003 and 2002, respectively 422 460
Licensing and royalty income receivable 146 166
Inventories 175 209
Prepaid expenses and other current assets 328 146
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Total current assets 2,643 2,980
Property, plant and equipment, net 2,786 2,862
Other assets 79 87
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Total assets $ 5,508 $ 5,929
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 18 $ 18
Accounts payable 82 115
Accrued payroll 68 71
Other accrued expenses 517 551
Income taxes payable 10 16
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Total current liabilities 695 771
Deferred income 418 485
Long-term debt 166 164
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Total liabilities 1,279 1,420
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Stockholders' equity:
Common stock $.01 par value, 50,000,000 shares authorized;
13,321,705 and 13,262,657 shares issued in 2003 and 2002,
respectively 133 133
Additional paid-in capital 23,674 23,644
Accumulated deficit (18,224) (17,953)
Less treasury stock, 1,924,840 and 1,878,640 shares at cost
in 2003 and 2002 respectively (1,354) (1,315)
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Total stockholders' equity 4,229 4,509
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Total liabilities and stockholders' equity $ 5,508 $ 5,929
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