ICCC - Earnings call transcript Q3 2020

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Operator

Good morning and welcome to the ImmuCell Corporation reports Third Quarter Fiscal Year 2020 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, this event is being recorded. I would now like to turn the conference over to Joe Diaz with Lytham Partners. ahead. go Please

Joe Diaz

and Grant to on everybody Thank good call. today's you morning

course ImmuCell. is indicated Listeners Investor I'm for of discussion unaudited you financial that operator quarter with to discuss the like call the risks management ended today Joe a are joining Relations statements. all us for my firm results the reminded discussed As those would this forward-looking by to that materially preface differ the we’re statements to during September could name forward-looking regarding the this Diaz, XX, include subject to I of results Partners, that with consulting third made statements for Thanks which caution Lytham XXXX. from today. cause are actual uncertainties and

risks obtained the Additional visiting Michael for Harbor the or With me uncertainties and its over which information open forward-looking under Form which call that will company's call release is by Safe regarding website Michael? turn note the questions. CEO press from these XX-Q, and SEC be the the regarding said, to at or cautionary immucell.com. statements statement we the the in available Section President ImmuCell Corporation. let and the of After Investors your Brigham, company's of can

Michael Brigham

call. Thank the to ImmuCell. taking Appreciate all you what join at provide opportunity on for today's Joe. time is Thanks, some updates going on the to

I'm our from highlight the press But of of I a to Form some the I disclosures. a ended detail, summarizing would we as up not for the and press filed queue periods the to issued lot results. release. September and important see the last Just rehash and month few what key going of three XXXX night, XX-Q like the month more XX, you nine release can a pick

Xth, sales know, First, only. on as press line top October results covering our we preliminary a may issued you release

to quarter performance just XX% the They very a There I been to of most reporting give of as months XXXX. doing the measure are during timely ended XX, in investors critical were All view the increases financial Product of what XXXX. period. trailing up XXXX. no sales look third XX% were period during months during up nine We XX September that September during XX, first numbers. an quarter the early and on the comparison is share ended period quarter. period well. during the at it described operations I second This has XXXX our comes and that sales in growth with us up XX% really change were increase exciting to a and those X% consistent for That are same the the have year XX% market the earlier. preliminary increase a follows as Product gain

the on Our preformed team disrupting our has with sales very technology focused market vaccine traditional antibodies. scour by vaccine replacing been old

Our that catch with production of September $XXX,XXX XXth. team We to as We orders a about about as demand. XXth. June $XXX,XXX is of working backlog to had up reduce worth of that hard

and nice and is heavy the this flows cleanable and XXX being cGMP and packaging and the rooms. continues us million Defense MD&A. Project per The project million renovations Capital as to formulation demand good, fully then challenge good is The discussed on or Way section problem C is meeting to to Liquidity year, to complete First demand As lifting XX-Q later first to $XX for Industrial detail year compliant people facility equipment fill increase in our new strengthen the to for market about capacity with it production Resources at under of plan $XX in is that our have. a and surfaces per the material

XXX% and minimize drying disruption operations by work the product implementing work capacity being now coordinated XX%. This by are ongoing We our increase and our is to processing freeze capacity to to supply. liquid carefully our

fully to expect realize XXXX. expanded capacity this of of benefits We the production the second beginning quarter in

find the Operations margin, Section of Let's the gross XX-Q is detailed gross you Results move improvement MD&A. a margin point of margin in the the a third can under of achieved quarter. X analysis We during a second quarter. to That gross XX% the over

the several the important this to are leading increase We goods for in sold fronts improve mix working on to cost biology. shifting gel causes The tubes two are hard try product measure. sales of and to

a dollar gel are First are The gross of tubes in to capsule a a format selling margin capsule, expensive produces higher on more we lot the then those paste basis make product format. gel tubes. the legacy and

production, increase over new margins our going program should higher Second, the volumes support increased with these forward. should costs production proprietary have relatively we vaccines to The as cows we biological improve through not cows classroom collection time seen yield work and to yet. need our come increase fixed fixed our spreading that as second

Next, that will almost loan I Protection quarter. fourth the report we really during been be news of forgiven. some recognized fully our the happy good from very has Paycheck government, received am to $XXX,XXX Program federal This income

discloses have in press the XX We as release. subsequent as the well Number footnote events in

its ImmuCell the operations continues all our ways. employees around at different the many we and and in As disruption know challenges economy world COVID-XX of unprecedented lives global it our and pandemic the

but lost not significant time is have in production due to We everything different. the pandemic,

unprecedented creative, expansions allowed dedicated has as fact This possible such furloughs production First forward. flexible without and this during forward operate continue government an helped pace at The production hiring. Our time. safely or been team and has intense with we've funding our without Defense plans expansion and as to in production move has funding interruption us facility us our pushing layoffs, been significant business

expenses, to operating largest product Let’s line item. expense move continue our development be to which

little our nine of ended the about XX, charges development is important the this period compensation Substance look of the product XXXX. amortization I Nisin during of facility lactating based expensive we Re-Tain. been nearing impact result expenses. Most constructed XX% about On and talk the we to required depreciation, depreciation approval road It cows. work equipment line of it at but stock to September non-cash dairy and achieve think subclinical bit to from item, a novel Re-Tain. Drug treatment mastitis expenses like of production long for has and the comprised completion FDA are related for a this the month I'd

in specific MD&A. Results We the best of under have market It and path down final the about section. or disclosed thinking Re-Tain the sections of XX-Q is of the of which Operations launch the our section is comes to technical all the to as Manufacturing CMC the last of technical This for the product section, technical achieving approval. known Chemistry required five approval and manufacturing details Controls

would submission six a market another could FDA anticipate drug by be that of at market the six would FDA. not section substance on first months second track and respond road has That months that near additional quarter to before us, enact approval do CMC that of also submissions. We clarify end. after required the of sooner kind progress comes if be path launch for This submission subject an third while technical to be as The developing during through in plans are questions of are end our for puts the us products another to fork the XXXX. could If review. the we quarter drug during review a We the submission making is XXXX, first huge the to XXXX. will the flex quarter a of knowledge of year the required. subject through plan we Therefore, we next make to submission we which

on flows press look I focus the cash Lastly, release our important to provides an a of net our expenses at non-cash impact more financial cash all do this This measure of is an of night's and statements. in loss statement most on important flows is stage flows GAAP in a XX-Q. X last our but Page our understanding development. cash the at consider metric the

a very conclusion, well current presentation to our I look the November strategy last in update website to review just provides and I our deck last business night. posted financial release press summary corporate results. have as our at our that and you believe a good it we slide was objectives form as encourage our Also night. of filed XX-Q in So please the

that So With will just your questions. corporate see Investors happy the take to on said, section of presentation. I website and our click be

Let's Grant. have the Thank operator open up the lines. you,

Operator

the Asset Management. begin question Rebotsky today ahead. answer now go will first Please We will SER Our [Operator from Instructions] come question with and Sam session.

Sam Rebotsky

submission? how morning, and need this there December before December. XX submission excited to at congratulations, Is do presumably many Good to look to the many, any than the or see of times. We've time FDA the we tested earlier Michael. submit I'm

Michael Brigham

that a it do. sooner but till better, mean, to the work bit little need, to stability. of a there's but there's Yeah, go with lot I do has ready. still it's of the won't A

So, a is lot just of time passage. this

You the with science got whole hold think perhaps hard position others. just others, and that all but what this team set certain with team, many I line VP get on done Williams, Jonathan get And, this in year, stability to think as to yeah, was amount up, it product. has possible. and Betsy submit in But Crabb, Manufacturing this of of our the it Operations as I a right. They're our Joe this pushing

Sam Rebotsky

far coming boilerplate time as to balance followed? pretty hear money -- also. you that from Or government, That's good that the Was And it's explaining okay. time any that and sheet that's the own to or the And, did to you how have that. go? did as spend process long federal exciting proof, the that a much

Michael Brigham

I forgiveness. It would straightforward, think guess Sam, so our achieve had lot but I to say is, time boilerplate, I'm did but was to us Yeah, important trying of I I for was don't a explaining. to I spend maybe I guess, never anything application granted. for what that pretty take -- we -- not,

until I not other sort why of at forgiven we companies, yet, As would get tier done was confident was it payroll. that's much we maybe And because here is it's the XXX% simpler not And done. our been pipeline forgiveness many. just front were we're application of the a than as with

payroll, helped to So mortgage said, even have look, we is have get Protection XXX% us. think qualified expenses. and we're Program, that didn't different just may We and supplies rent and and interest into Paycheck I this overheads

going I application think facilitated the that have through. may

Sam Rebotsky

Okay. And quarter the we are based to as finished, have from quarter? Defense, increase sales the as backlog. the September on completed we We Tri-Shield sales basically, the demand? First increase able are far to And the in current and able

Michael Brigham

so happy reasonably -- good is going good great demand. really The mean, I price that product to there. measures, having to economic very And now. we're on see mo some is what's dairy strong right Yeah. continues see industry like

for good us. Ultimately, like early, what's customers we customer, So just that's our good this our those good results for did we'd quarter. report for

say So obviously we'll in like audit together year-end January pulmonary practice. X, top-line to advance of But X, a get way in a release somewhere the there, I'd that the X, P&L. and continue full and press number

most way the I on answer think timely question it's best basis possible. to my your

Sam Rebotsky

wonderful. that's you do Well, do of to First Tri-Shield we when selling would And Defense think prepared And shipping further any are that overseas? yet and happen?

Michael Brigham

there. I appreciate interest your

focused markets. kept You've up but we us we've from this new get that some to definitely want careful. a mean, been backlog on I little before distance I goal, open

going a Brockmann, a our new stays later has of they're But new little international be done markets. bit, qualifying and want job Marketing and little certain and markets we North to international this markets Bobbi going create that out in into they're beyond some of paused got 'XX. into be a are bit make with So Sales to VP to through sure extra Japan today. totally South stock buffer totally America demand new I backlog Korea we where covered, before the we've 'XX of great

Sam Rebotsky

we let's the so. Holidays. not should Happy improve getting And keeps Hope hope everybody and Thanksgiving congratulations. have year, year, this COVID and Happy next if that a better Well, everything

Michael Brigham

stay staying to this look So I safe. that it Stays here. I'm right. you're home, I put at think have way Sam,

Let's all together. this get through

Sam Rebotsky

All employees good and everybody. everybody. Yes, luck, you. ImmuCell Thank shareholders,

Michael Brigham

you, Thank nice. Sam. Very

Operator

who’s Gasper, go Frank from come Private ahead. Investor. will Please question a next Our Instructions] [Operator

Unidentified Analyst

Yeah, you my sales. quick -- glimpse on Could

Michael Brigham

voice. to hear your Thanks, Frank, good

Unidentified Analyst

been from how chain idea of just as to -- to once while. does it Yes, that cow he subclinical a give it's or Could can know And you his how a what progress you cow events? farmer maybe knows you him? To does some his mastitis? has that

Michael Brigham

the the largely counts so it's part monitoring somatic cell first in Well, milk.

temperature progress know, does and behavior, it Frank, somatic or in So a they're milk level cow's the second watching milk. quality counts the us? to of if quite of cell how understood I the I the the part, don't

Unidentified Analyst

he that doing know are now the other they cow both And does what words, which on count? test In Yeah. farmer ask, knows. the now -- somatic cell let or me specifically,

Michael Brigham

an their doing then they herd they'd So health cow idea ID. have so both, have and they'd be level, of specific

We the that are I catching to selecting and I'm your them up the to cows. count So actually cell watching are be not cows somatic They're producing would with but moving milk. milk. highest producing guess, a otherwise not they're question. cow Yeah. They're being healthy, they're they're herd, eating, quality pen, These want as often milked, sick. not they're the becoming much sick highest as they're

as one, quantity cows, milk So quality milk, them of we two, want before pick those select herd to we soon they get and to their so they for sicker as those find that their off can them treatment production checks. improve of

Unidentified Analyst

hands? just farmer does how kind veterinarian of buy -- get channel? goes Once some your He there is known, product into his does what Or it. the

Michael Brigham

that It's practice. the not of Yes. very we're recreating part much,

it's very the our today, are the antibiotics it's doing that tube, today. syringe like our market on our much what they're delivery, So -- common looks

So instead simple they the with similar infusing and infusion products of know the Re-Tain traditional one to very The but into familiar just delivery. of simple how that It's those they're to fridge, the opening. and do. would and antibiotic to products, Nisin grab They be teat pretty a that go the of mode very infusion otherwise tube.

Unidentified Analyst

playing two Just you -- more envision that thing, suppliers XX-Q you're into you one to. this the in How listed you launch? presently, them sell have major

Michael Brigham

right, throughout for, for MWI First small get But health we started. Health biggest International biggest and country. role I the for and down distribution, our two all goes Defense, like network are just the you're They initially, a Animal two the as pretty road First ultimately, of and it’s maybe animal right us, a Defense role just think, manufacturers. they're through have all Huge

the network, so will through, really people, same Re-Tain. the it's just same warehouses as same So, moves Defense the First

Unidentified Analyst

I everyone. had And time. ImmuCell that's have that I again, following been all And some congratulate Mike for quite and

great a you. got You workforce Thank there.

Unidentified Analyst

Frank. so agree I much totally agree. Thank that. I you for

Operator

[Operator there any session. being over at turn Instructions] back the right, remarks. Joe conclude like This no this well, our to for I'd further All will time. are conference closing question-and-answer questions to Diaz

Joe Diaz

results you the you, thanks sometime Thank a to Have in Please Grant, stay call. look great review of safe again and in you. We quarter XXXX. of and you talking fourth for today's all Thank participating XXXX to well. to the weekend. with forward of of February

Operator

The concluded. conference for has you now Thank attending today's presentation.

disconnect. You may now

ImmuCell (ICCC) 13 Nov 202020 Q3 Earnings call transcript