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IGI Laboratories Announces First Quarter 2014 Results

Companies mentioned in this article: IGI Laboratories, Inc.

BUENA, N.J., April 29, 2014 /PRNewswire/ -- IGI Laboratories, Inc. (NYSE MKT: IG), a New Jersey based topical generic drug development and manufacturing company, announced its financial results for the first quarter ended March 31, 2014.

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First Quarter 2014 Highlights

    --  Total revenues of $6.9 million in the first quarter of 2014, an increase
        of 86% over the same quarter in 2013
    --  Total net revenues generated from the sale of IGI label generic topical
        pharmaceutical products for the three months ended March 31, 2014 were
        $2.9 million, an increase of 108% over the same quarter in 2013
    --  Gross profit for the period ended March 31, 2014 grew to 42% as compared
        to 30% in the same period of 2013
    --  IGI filed its fourteenth Abbreviated Drug Application, or ANDA, with the
        U.S. Food and Drug Administration (FDA) in March 2014
    --  IGI received its first approval from the FDA for an ANDA for lidocaine
        hydrochloride USP 4% topical solution
    --  Net income was $0.2 million in the first quarter of 2014, compared to a
        net loss of $0.3 million in the same period in 2013

IGI's President and Chief Executive Officer, Jason Grenfell-Gardner, stated, "The first quarter represents a strong start to our year of transformation. We received our first ANDA approval for lidocaine hydrochloride USP 4% topical solution in March. This was a huge milestone for IGI, and validated our organic research and development expertise. On the financial front, we increased total revenue 86 percent over the same quarter last year, and improved margins to end the first quarter of 2014 with a gross margin of 42%, compared to 30% one year ago. As promised, we maintained profitability in the first quarter of 2014, even though we significantly increased our expenses related to research and development. We continue to expect to file at least ten ANDAs in 2014, and we have accelerated our R&D efforts in order to meet our commitments." Mr. Grenfell-Gardner continued, "We continue to expect revenue to increase between 40% and 45% over 2013. We are committed to sustain profitability in 2014, even though we plan to at least double our spending in research and development in 2014 over 2013."

The Company will hold a conference call today at 4:30 pm ET to discuss first quarter 2014 results.

The Company invites you to listen to the call by dialing 1-866-515-2913. International participants should call 1-617-399-5127. The passcode for the conference call is 66700649.

This call is being webcast by NASDAQ OMX and can be accessed at IGI's website at www.igilabs.com.

The webcast is also being distributed through third party distribution channels, including the StreetEvents Network operated by Thompson Reuters (Markets) LLC and its affiliates.


                                             IGI LABORATORIES, INC. AND SUBSIDIARIES

                                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                        For the three months ended March 31, 2014 and 2013

                                     (in thousands, except shares and per share information)

                                                           (Unaudited)



                                                                                                   2014        2013
                                                                                                   ----        ----

    Revenues:

            Product sales, net                                                                   $6,383      $3,467

            Research and development income                                                         313         159

            Licensing, royalty and other revenue                                                    157          57
                                                                                                    ---         ---

                   Total revenues                                                                 6,853       3,683


    Costs and Expenses:

            Cost of sales                                                                         3,987       2,575

            Selling, general and administrative expenses                                          1,282         679

            Product development and research expenses                                             1,365         658
                                                                                                  -----         ---

                   Total costs and expenses                                                       6,634       3,912

    Operating income (loss)                                                                         219        (229)

    Interest expense and other, net                                                                 (52)        (28)
                                                                                                    ---         ---


    Net Income (Loss)                                                                              $167       $(257)
                                                                                                   ====       =====



         Basic income (loss) per share                                                            $0.00      ($0.01)

         Diluted income (loss) per share                                                          $0.00      ($0.01)



    Weighted average shares of common stock
    outstanding:

       Basic                                                                                 46,826,733  42,933,146

       Diluted                                                                               48,529,603  42,933,146


                                                       IGI LABORATORIES, INC. AND SUBSIDIARIES

                                                        CONDENSED CONSOLIDATED BALANCE SHEETS

                                               (in thousands, except share and per share information)



                                                               (Unaudited)

                                                                March 31,                                December 31,
                                                                                   2014
                                                                                                             2013*
                                                                                                            ------

    ASSETS

    Current assets:

         Cash and cash equivalents                                               $2,414                                $2,101

         Accounts receivable, net                                                 4,120                                 4,947

         Inventories                                                              2,661                                 2,869

         Prepaid expenses and other
          receivables                                                               691                                   641
                                                                                    ---                                   ---

              Total current assets                                                9,886                                10,558

    Property, plant and
     equipment, net                                                               2,598                                 2,623

    Product acquisition costs                                                     1,736                                 1,766

    Restricted cash, long term                                                       54                                    54

    License fee, net                                                                175                                   200

    Debt issuance costs, net                                                         61                                    69

    Other                                                                           157                                   157
                                                                                    ---                                   ---

              Total assets                                                      $14,667                               $15,427
                                                                                =======                               =======


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

         Accounts payable                                                        $1,339                                $1,523

         Accrued expenses                                                         2,004                                 2,915

         Deferred income, current                                                   360                                   768

         Capital lease obligation,
          current                                                                    11                                    15
                                                                                    ---                                   ---

              Total current liabilities                                           3,714                                 5,221


    Note payable, bank                                                            3,000                                 3,000

    Other long term liabilities                                                      12                                    15
                                                                                    ---                                   ---

              Total liabilities                                                   6,726                                 8,236
                                                                                  -----                                 -----


    Commitments and contingencies


    Stockholders' equity:

         Common stock, $0.01 par
          value, 60,000,000 shares
          authorized;  47,019,121 and
          46,748,575 shares issued and
          outstanding as of March 31,
          2014 and December 31, 2013,
          respectively                                                              490                                   487

         Additional paid-in capital                                              52,121                                51,541

         Accumulated deficit                                                    (44,670)                              (44,837)
                                                                                -------                               -------

              Total stockholders' equity                                          7,941                                 7,191
                                                                                  -----                                 -----

                 Total liabilities and
                  stockholders' equity                                          $14,667                               $15,427
                                                                                =======                               =======



                                        *Derived from the audited December 31, 2013 financial statements


             IGI LABORATORIES, INC. AND SUBSIDIARIES

         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

        For the three months ended March 31, 2014 and 2013

                          (in thousands)

                           (Unaudited)



                                               2014                 2013
                                               ----                 ----


    Cash flows from operating activities:

         Net income (loss)                     $167                $(257)

         Non-cash expenses                      429                  196

         Changes in operating assets
          and liabilities                      (533)              (1,533)
                                               ----               ------


    Net cash provided by (used in)
     operating activities                        63               (1,594)


    Net cash used in investing
     activities                                 (68)              (1,486)


    Net cash provided by financing
     activities                                 318                1,190
                                                ---                -----


    Net increase (decrease) in
     cash and cash equivalents                  313               (1,890)

    Cash and cash equivalents at
     beginning of period                      2,101                2,536
                                              -----                -----

    Cash and cash equivalents at
     end of period                           $2,414                 $646
                                             ======                 ====

About IGI Laboratories, Inc.

IGI Laboratories is a developer and manufacturer of topical formulations for the pharmaceutical, OTC, and cosmetic markets. Our mission is to be a leading player in the generic topical prescription drug market.

IGI Laboratories, Inc. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions, and other statements contained in this press release that are not historical facts and statements identified by words such as " will," "believe", "target", "estimated," "continue" or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption "Risk Factors" in IGI Laboratories, Inc.'s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports we file with the Securities and Exchange Commission. Actual results may differ materially from these expectations. Factors that could cause actual results to differ materially from these expectations include, but are not limited to: our inability to meet current or future regulatory requirements in connection with existing or future ANDAs; our inability to achieve profitability; our failure to obtain FDA approvals as anticipated; our inability to execute and implement our business plan and strategy; the potential lack of market acceptance of our products; our inability to protect our intellectual property rights; changes in global political, economic, business, competitive, market and regulatory factors; and our inability to complete successfully future product acquisitions. IGI Laboratories, Inc. does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

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SOURCE IGI Laboratories, Inc.