 PORTLAND, Maine, Aug. 12, 2020 GLOBE NEWSWIRE -- ImmuCell Corporation Nasdaq: ICCC ImmuCell or the Company, a growing animal health company that develops, manufactures and markets scientifically-proven and practical products that improve the health and productivity of dairy and beef calves, today announced unaudited financial results for the quarter ended June 30, 2020. Product Sales Results: Total product sales increased by 9, or 256,000, to 3 million during the three-month period ended June 30, 2020 versus the comparable period during 2019. Total product sales increased by 11, or 756,000, to 7.9 million during the six-month period ended June 30, 2020 versus the comparable period during 2019. Excluding non-animal health sales which product has since been divested from the 2019 results, the increase in total animal health sales during the current period was 13. Total product sales increased by 19, or 2.3 million, to 14.5 million during the trailing twelve-month period ended June 30, 2020 versus the trailing twelve-month period ended June 30, 2019. Excluding non-animal health sales which product has since been divested from the results during the trailing twelve-month period ended June 30, 2019, the increase in total animal health sales during the current period was 20.Managements Discussion: The COVID-19 pandemic has changed the way we operate, but our dedicated team has been flexible and creative pushing First Defense production during these extremely difficult times and challenging work conditions, commented Michael F. Brigham, President and CEO. We reduced the backlog of orders to approximately 945,000 as of June 30, 2020 from approximately 1.4 million as of March 31, 2020. The investment to increase our First Defense production capacity remains on budget and close to on-time completion, despite COVID-19 related challenges.As indicated by the continued top line growth, our sales team has been able to pivot to stay safe and be successful despite COVID-19s impact on how we work, added Mr. Brigham. Our first production priority is Tri-Shield First Defense because our growth is being driven by this product format, which provides antibodies without vaccination so every calf receives a measured dose of Immediate ImmunityTM against all three of the primary scour-causing pathogens, E. coli, coronavirus, and rotavirus. However, as we emphasize production of Tri-Shield, which has a lower gross margin percentage of sales, and as we increase colostrum collection from new cows that have not been immunized previously with our proprietary vaccines, our gross margin percentage tends to decline. We expect that to improve over time.Most of our product development expenses were related to the Re-TainTM product development and commercial scale-up initiative, concluded Mr. Brigham. We are proceeding on plan to make our second-phased submission of the CMC Technical Section during the fourth quarter of this year, which will be subject to a six-month review by the FDA.Other Financial Results: Gross margin earned was 43 and 46 of total product sales during the quarters ended June 30, 2020 and 2019, respectively. Gross margin earned was 45 and 48 of total product sales during the six-month periods ended June 30, 2020 and 2019, respectively. Product development expenses were 1.1 million and 820,000 during the quarters ended June 30, 2020 and 2019, respectively. Product development expenses were 2.1 million and 1.7 million during the six-month periods ended June 30, 2020 and 2019, respectively. Approximately 91 and 89 of product development expenses for the three-month and six-month periods ended June 30, 2020, respectively, were related to the Re-TainTM product development and commercial scale-up initiative. Net loss was 766,000, or 0.11 per share, during the quarter ended June 30, 2020 in comparison to net loss of 627,000, or 0.09 per share, during the quarter ended June 30, 2019. Net loss was 888,000, or 0.12 per share, during the six-month period ended June 30, 2020 in comparison to net loss of 483,000, or 0.08 per share, during the six-month period ended June 30, 2019. EBITDA a non-GAAP financial measure defined on page 4 of this press release was 114,000 and 74,000 during the quarters ended June 30, 2020 and 2019, respectively. EBITDA was 754,000 and 914,000 during the six-month periods ended June 30, 2020 and 2019, respectively. EBITDA was 1.2 million and 788,000 during the trailing twelve-month periods ended June 30, 2020 and 2019, respectively.Balance Sheet Data as of June 30, 2020: Cash, cash equivalents, short-term investments and restricted cash increased to 9.6 million as of June 30, 2020 from 8.8 million as of December 31, 2019. Net working capital decreased to 8.9 million as of June 30, 2020 from 10.7 million as of December 31, 2019. Total assets increased to 40.7 million as of June 30, 2020 from 38.7 million as of December 31, 2019. Stockholders equity decreased to 28.3 million as of June 30, 2020 from 29 million as of December 31, 2019. Condensed Statements of Operations Unaudited During the Three-Month Periods Ended June 30, During the Six-Month Periods Ended June 30, In thousands, except per share amounts 2020 2019 2020 2019 Product sales2,966 2,710 7,876 7,120 Costs of goods sold 1,683 1,461 4,357 3,670 Gross margin 1,283 1,249 3,519 3,450 Sales, marketing and administrative expenses 887 976 1,953 2,001 Product development expenses 1,087 820 2,061 1,730 Operating expenses 1,974 1,796 4,014 3,731 NET OPERATING LOSS 691 547 495 281 Other expenses, net 75 65 408 177 LOSS BEFORE INCOME TAXES 766 612 903 458 Income tax expense benefit - 15 15 25 NET LOSS766 627 888 483 Basic weighted average common shares outstanding 7,213 7,210 7,213 6,421 Basic net loss per share0.11 0.09 0.12 0.08 Diluted weighted average common shares outstanding 7,213 7,210 7,213 6,421 Diluted net loss per share0.11 0.09 0.12 0.08 Non-GAAP Measures: Generally, a non-GAAP financial measure is a numerical measure of a companys performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures included in this press release should be considered in addition to, and not as a substitute for or superior to, the comparable measure prepared in accordance with GAAP. A reader should review our Statements of Cash Flows for a detailed understanding of our sources and uses of cash. We start with our reported loss before income taxes because presently we are not paying cash for income taxes and do not anticipate paying cash for income taxes in the near-term future. We believe that considering the non-GAAP loss before income taxes and before certain non-cash expenses assists management and investors by looking at our performance across reporting periods on a consistent basis excluding these certain charges that are not uses of cash from our reported loss before income taxes. We calculate non-GAAP loss income before income taxes and certain non-cash expenses as indicated in the table below: During the Three-Month Periods Ended June 30, During the Six-Month Periods Ended June 30, In thousands 2020 2019 2020 2019 Loss before income taxes766 612 903 458 Depreciation, amortization and stock-based compensation 631 644 1,367 1,299 Loss income before income taxes and certain non-cash expenses135 32 464 841 The figures we have calculated and reported above do not include cash used to repay bank debt in the amounts of 142,000 and 215,000 during the three-month periods ended June 30, 2020 and 2019, respectively, and 344,000 exclusive of the 8.3 million used to repay our refinanced bank debt and 429,000 during the six-month periods ended June 30, 2020 and 2019, respectively. The figures calculated above differ from the calculation of Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA in two significant ways. First, we have not added back interest expense because we do pay cash for interest. Interest expense was 77,000 and 112,000 during the quarters ended June 30, 2020 and 2019, respectively, and 424,000 and 226,000 during the six-month periods ended June 30, 2020 and 2019, respectively. During the six-month period ended June 30, 2020, interest expense included payments of 165,000 to terminate our interest rate swap agreements and 95,000 to write-off debt issuance costs, both made in connection with the refinancing of our bank debt during the first quarter of 2020. Second, we have added back stock-based compensation expense because this is a non-cash expense, but it is not added back to the calculation of EBITDA. EBITDA was 114,000 and 74,000 during the quarters ended June 30, 2020 and 2019, respectively, and 754,000 and 914,000 during the six-month periods ended June 30, 2020 and 2019, respectively. Conference Call: Interested parties can access the conference call scheduled by the Company to review the full second quarter 2020 financial results by dialing 844 855-9502 toll free or 412 317-5499 international at 9:00 AM ET on Thursday, August 13, 2020. A teleconference replay of the call will be available for seven days at 877 344-7529 toll free or 412 317-0088 international, utilizing confirmation 10145671. 