Exhibit 99.1
News From
IGI LOGO
Buena, NJ 08310
Release Date: November 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 THIRD QUARTER RESULTS
BUENA, NJ November 12, 2003 - IGI, INC. (AMEX: IG) today reported a net loss
attributable to common stock of $156,000 or ($.01) per share, for the quarter
ended September 30, 2003, compared to a net loss attributable to common stock
of $877,000, or ($.07) per share, for the quarter ended September 30, 2002.
For the nine months ended September 30, 2003, the net loss attributable to
common stock was $427,000, or ($.04) per share, compared to net income
attributable to common stock of $7,930,000, or $.69 per share, for the
comparable period in 2002. The loss incurred in the third quarter of 2003 is
a result of lower product sales as the products reach maturity in their
market life cycle, a change in the product sales mix and underabsorbed fixed
costs. Also, there were higher development and research expenses as a result
of additional projects that are being worked on for existing and potential
customers.
"I am pleased to see a revenue increase from last quarter. Our Novasome(R)
microencapsulation technology is being formulated for numerous new products
in dermatology, cosmetics and other additives," stated Frank Gerardi,
Chairman of the Board and CEO 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, dermatological
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 Nine months ended
September 30, September 30,
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2003 2002 2003 2002
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<s> <c> <c> <c> <c>
Revenues:
Sales, net $ 748 $ 861 $ 2,271 $ 2,604
Licensing and royalty income 202 285 573 669
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Total revenues 950 1,146 2,844 3,273
Cost and expenses:
Cost of sales 326 342 1,011 1,096
Selling, general and administrative expenses 589 567 1,941 1,895
Product development and research expenses 175 152 478 419
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Operating income (loss) (140) 85 (586) (137)
Interest income (expense), net - 9 8 (294)
Other income, net - - - 58
Loss on early extinguishment of debt - - - (2,654)
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Income (loss) from continuing operations
before provision for income taxes (140) 94 (578) (3,027)
Provision for income taxes 1 935 3 941
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Loss from continuing operations (141) (841) (581) (3,968)
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Discontinued operations:
Loss from operations of discontinued business - - - (401)
Gain (loss) on sale of discontinued business (15) (36) 154 12,432
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Net income (loss) (156) (877) (427) 8,063
Mark to market for detachable stock warrants - - - (133)
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Net income (loss) attributable to common stock $ (156) $ (877) $ (427) $ 7,930
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Basic and Diluted Earnings (Loss) per Common Share
Continuing operations $ (.01) $ (.07) $ (.05) $ (.36)
Discontinued operations - - .01 1.05
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Net income (loss) attributable to common stock $ (.01) $ (.07) $ (.04) $ .69
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Weighted Average of Common Stock and
Common Stock Equivalents Outstanding
Basic and diluted 11,355,965 11,766,288 11,379,905 11,448,290
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
September 30, 2003
(unaudited) December 31, 2002
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<s> <c> <c>
ASSETS
Current assets:
Cash and cash equivalents $ 632 $ 1,999
Marketable securities 803 -
Accounts receivable, less allowance for doubtful accounts
of $21 and $35 in 2003 and 2002, respectively 446 460
Licensing and royalty income receivable 150 166
Inventories 202 209
Prepaid expenses and other current assets 145 146
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Total current assets 2,378 2,980
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Property, plant and equipment, net 2,763 2,862
Other assets 75 87
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Total assets $ 5 ,216 $ 5,929
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 18 $ 18
Accounts payable 149 115
Accrued payroll 95 71
Other accrued expenses 330 551
Income taxes payable 11 16
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Total current liabilities 603 771
Deferred revenue 384 485
Long term debt, net of current portion 195 164
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Total liabilities 1,182 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 (18,380) (17,953)
Less treasury stock at cost, 1,965,740 and 1,878,640 shares
in 2003 and 2002, respectively (1,395) (1,315)
Accumulated other comprehensive income 2 -
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Total stockholders' equity 4,034 4,509
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Total liabilities and stockholders' equity $ 5,216 $ 5,929
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