Exhibit 99.1
News From
IGI LOGO
Buena, NJ 08310
Release Date: November 12, 2004
Contact: Frank Gerardi
Chairman & Chief Executive Officer
IGI, Inc.
(856) 697-1441 ext. 102
www.askigi.com
IGI, INC. ANNOUNCES THIRD QUARTER 2004 RESULTS
BUENA, NJ November12, 2004 - IGI, INC. (AMEX: IG) today reported its
financial results for the third quarter ended September 30, 2004. Revenues
increased $16,000 for the nine months ended September 30, 2004 compared to
nine months ended September 30, 2003. Royalty revenues increased $48,000
for the quarter and $264,000 for the nine months ended September 30, 2004
due to $300,000 of royalty income from Tarpan Therapeutics, Inc. and
$55,000 of royalty income from Estee Lauder, slightly offset by a decrease
in royalty income from Johnson and Johnson Consumer Products division.
Selling, general, and administrative expenses decreased $269,000 for the
quarter ended September 30, 2004 and $535,000 for the nine months ended
September 30, 2004. This decrease is a result of the reduction of salary
and travel expenses in 2004.
The Company incurred a net loss of $219,000 or ($.02) per share, for the
quarter ended September 30, 2004, compared to net loss attributable to
common stock of $257,000, or ($.02) per share, for the quarter ended
September 30, 2003. For the nine months ended September 30, 2004, the net
loss attributable to common stock was $1,058,000, or ($.09) per share,
compared to net loss attributable to common stock of $570,000, or ($.05)
per share, for the comparable period in 2003.
The Company's ongoing efforts to expand our product lines resulted in an
increase of $16,000 of product development and research expenses for the
quarter ended September 30, 2004 compared to the comparable period in 2003.
For the nine months ended September 30, 2004, those costs have increased
$976,000 compared to nine months ended September 30, 2003, the increase
year to date relates to the FAS 123 expense recorded for the stock options
granted to Dr. Michael Holick. The Company continues to seek new
opportunities as a result of the exclusivity clause being released with
Estee Lauder, that new agreement will be signed in the next two weeks. The
Company is looking forward to working with our potential new customers.
"Our efforts in research and development are resulting in new and improved
products for a growing customer base. The many projects under development
have the potential to drive revenue growth and benefit IGI's most important
partners, our investors", stated Frank Gerardi, the Company's Chairman and
CEO.
# # #
IGI is applying its patented Novasome(R) microencapsulation technologies to
deliver pharmaceuticals, dermaceuticals, cosmetics, skin care, nutrients
and other industrial products. Novasomes(R) drive large molecules deep into
the skin in a moisturizing non-irritating delayed release cream.
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 from time to time in the Company's SEC filings.
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,
---------------------- ------------------------
(as restated) (as restated)
2004 2003 2004 2003
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Revenues:
Sales, net $ 383 $ 748 $ 2,023 $ 2,271
Licensing and royalty income 199 151 744 480
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Total revenues 582 899 2,767 2,751
Cost and expenses:
Cost of sales 244 326 930 1,011
Selling, general and administrative expenses 320 589 1,406 1,941
Product development and research expenses 241 225 1,504 528
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Operating (loss) (223) (241) (1,073) (729)
Interest income (expense), net 6 - 21 8
Loss on sale of investment securities (1) - (1) -
Other income, net 1 - 1 -
(Loss) from continuing operations before
provision for income taxes (217) (241) (1,052) (721)
Provision for income taxes 2 1 6 3
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Loss from continuing operations (219) (242) (1,058) (724)
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Discontinued operations:
Gain (loss) on sale of discontinued business - (15) - 154
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Net (loss) attributable to common stock $(219) $(257) $(1,058) $ (570)
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Basic and Diluted Earnings (Loss) per Common Share
Continuing operations $(.02) $(.02) $ (.09) $ (.06)
Discontinued operations - - - .01
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Net (loss) per common share $(.02) $(.02) $ (.09) $ (.05)
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Weighted Average of Common Stock and
Common Stock Equivalents Outstanding
Basic and diluted 11,581,780 11,355,965 11,536,337 11,379,905
IGI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
September 30, 2004 December 31, 2003
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(unaudited)
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ASSETS
Current assets:
Cash and cash equivalents $ 243 $ 821
Restricted cash 50 50
Marketable securities 574 800
Accounts receivable, less allowance for doubtful accounts
of $10 and $16 in 2004 and 2003, respectively 208 350
Licensing and royalty income receivable 159 17
Inventories 198 192
Prepaid expenses and other current assets 67 133
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Total current assets 1,499 2,363
Property, plant and equipment, net 2,993 2,607
Other assets 43 54
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Total assets $ 4,535 $ 5,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 89 105
Accrued payroll 41 75
Other accrued expenses 313 301
Income taxes payable 9 7
Deferred income 147 165
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Total current liabilities 599 653
Deferred income 104 205
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Total liabilities 703 858
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Commitments and contingencies (Notes 14 and 15)
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 136 134
Accumulated other comprehensive income (35) -
Additional paid-in capital 24,459 23,702
Accumulated deficit (19,333) (18,275)
Less treasury stock at cost, 1,965,740 shares
in 2004 and 2003 (1,395) (1,395)
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Total stockholders' equity 3,832 4,166
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Total liabilities and stockholders' equity $ 4,535 $ 5,024
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