ImmuCell (ICCC) 15 May 242024 Q1 Earnings call transcript

Good morning, and welcome to the ImmuCell Corporation Reports First Quarter ended March 31, 2024 Unaudited Financial Results Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference call over to Joe Diaz of Lytham Partners. Please go ahead.

Nick. you, Thank welcome and Good to morning, all.

us indicated, and Diaz, Nick ImmuCell. for thank for the is financial March the consulting Joe with Lytham I joining you of XXXX. name quarter I'm all to Partners, results for discuss unaudited As firm my today XX, we're ended Relations Investor

expected include the this call or include The Listeners that results cautioned future of and future that statements made to statements, about course which any predictions are the statements results, company and performance subject reminded future. to by statement today. plans to refers management actual steps take from risks during or or outcomes forward-looking in and are the These materially uncertainties to cause discussed differ of not could events that guarantees those are events

forward-looking safe and could periodic and press provided available night, other under release filings and uncertainties regarding company filed company's results, or forward-looking information with along regarding harbor XX-K the the note last with Form risks statements statements events the that outcomes SEC. the or the statement the is that future the impact the Additional with cautionary

on in GAAP better its no measures discussed as discussed reconciliations to of non-GAAP to company May as The in financial understanding XX, any well night's these in company terms the today's financial today's undertakes may be these references The measures to most of you today, financial call. comparable definitions included press assist figures only performance. Please call order XXXX. of Information last as information note release call. on Wednesday, certain today's update that obligation speaks to during made

over of for Corporation, let we open after ImmuCell and Brigham, call said, President Michael me to With the turn Michael? which will the questions. your call that CEO

story really help business. I X turning to to we With demonstrate good I the believe Joe, could and This disclosures first for of bit critical that frustrating. think be the financial everyone. like our speak of good about regards a the a is the quarter, Thanks, and morning, would what point

up to the the first the sales to during quarter March XX, trailing XXXX, XX, trailing up XX-month compared the product And -- during March XX% of XX-month were the first ended First, year, XXX% XX-month quarter XXXX. XXXX. were period period sales of ended XXXX compared

quarter-over-quarter, This which So output million quarter again, estimate. XX do XXXX. production the an This of first or is next during our highest aspirational our first by quarter expect of a $XX.X achieved XXXX XXX% recorded production the we about but worth in or of first million trailing full can remains the implementing a multiyear quarter sales record on we optimizing annualizes $X and us. million trailing all-time increase recorded level to XX% million to was the be over not during regular quarterly sales basis. it goal, repeated $X.X The million of that XX. represents production for exceeded result investment production during XXXX, XX% of improvement of capacity, $X.X quarter capacity our largely $XX of The

the depreciation Second, XXXX, XX, were ended or positive with interest, before we of of those to EBITDA to strong EBITDA $X.X quarter March during taxes, XX, and sales, $XXX,XXX earnings the turn ended million able negative during March XXXX. amortization quarter

ended still the target. product is this as XX, XXXX, quarter XX% March improved during gross March XX, sales from short Our of ended percentage X% during 'XX of a quarter our margin to well the XX% but

until of XXXX. available have expenditure on frozen certain September we the to is credit $X being, we of is capital In investments tight. but us for our time outstanding have line no response, Cash draw million that

unaudited will summary unaudited in analysis. discussion financial review take the results, that that details I XX-Q provides full press detail. data. the management's unaudited our sheet all financial P&L the other So the and balance release to some Further, and now is the regards call to time With provides our this results big Form picture. all and on

us events like been breakdowns be plagued yield. believe as implemented operate us data have made driven to operational by process events that are the effectively successful, our with and the forward. We remediate future contamination recently. add that production. level us would good To into we improvements back at contamination I a production more must that allowing going and are throughout equipment we to output XXX avoid have come to production Improvements run allowing we significant full

focused as fourth some are a But approval response minor submission CMC review. market. Technical we frustrated have submission our So FDA regulatory questions subject the another our opportunity about incomplete to on X-month remain in we our Pursuant of The bring yet commercial to we is issued case technical section requiring the often in is the to third process, in letter in by the letter, complete Defense. submission CMC the Section, retain of which will to regulatory a provided delay typically recently has to with effort vein. a First FDA the

also facilities items However, the open inspectional handled the not complex. CMC has that is to resolved. our the critical not resubmission required are the FDA Section has be potentially because product however, indicated that of resubmit this drug the contract through items a review that the Most shortened -- we FDA observations at Technical period the could manufacturer timeline are until

of and are the milk are expedited the a is the with contract treated claims. to market is novel without Given and continuing to product today's facts poised our to revolutionize part obtain FDA subclinical we in and This we an mastitis way working dairy with antibiotics move excited discard we remain withhold circumstances to process, that drug meat forward. unique FDA the and Regardless, traditional or review. alternative required manufacture

our Form report I at XX-Q encourage that believe a it corporate quarterly we summary I May was update the just financial lastly, our us well or our and provides posted a presentation as contact night, of for our A our and deck. the business review to pleased corporate presentation website strategy see press of slide look Also, on copy. a as night. objectives the So filed section very on good release you Investors last click website to have to last results. and current

I'll said, your that questions. be to take With happy

Let's have up please. lines, the operator open the

The first [Operator from Investor. Private Instructions] question Frank Gasca, comes

up. relief having of all, for the Keep . First kind quarter. it of Mike, sure sales

Thank that I sentiment. share Very Yes. you. exciting.

the quantity market at you to go time? My clarify a you and could to that regards or the allowing per your certain -- question deals and the how with offering, at shelf in designating

one the of its is think I of the Frank, flexibility. benefits big Yes, ATM

the to answer day, change So month. to to day can week your month question to week,

ATM to the with traditional vehicle, the traditional as traditional significant market. instrument offering I this think biggest the a the -- would have gone And offering frankly, distinction discount versus more out between at, of just to sort is. at make raise we adjustments because of sort the market some the appropriate, money can just market. the downside a lot you're as watch and nibbling longer It takes

of of year-end opportunity discount. and and significant kind more looked pro that quarter to this kind going money a the decided and into little raise first good and we So bit cons a real the was of without hard anticipated at

day-to-day answer it's on your guess basis. discretion, question the discretion to But short management is a I a Board really

and so Okay. shares been on have, sold? authorize in fact, some I --

Yes.

So comments, it disclosures. in perhaps should in I but my that is included our have

places see the MD&A, can proceeds. There's the You equity then repeat really of there's the both X And $XXX,XXX subsequent that footnote, a same been in footnotes. financial the then the section gross an footnote. in beginning event about has information very raised

that. see selling not not fact, far And did as do you you do when, or disclose or I Okay. you as in are selling.

the thresholds banker both I to volume -- the think in and that activity. price. our Board of results interaction quarterly that our I the reports, set know Well, through of -- and Board through would me, we through quarterly communicates the And report

next Michael comes Potter The with Capital Monarch Group. question from

is So here a retain. kind Congratulations time front. process you the scratching on get news on to the quarter. inspectional process? -- observation. What my of through head the certainly regards mixed us in Obviously, and operationally. walk to to the Can the line I

active. forth undetermined. and directly Yes. Honestly, It's party Norbrook. of the going Norbrook does be to It and lot with to to. a between is is not FDA be live, it we're But back us. communicate it well going that is There's very

but ability respond They have get right. status their to their would is add, motivated to it reports, retain we'll I big get a that beyond They're just discretion. other So company. they're products.

that, will -- review FDA do results the how up quick it be what And quick once they and review is. to that of how the they they to and then determine

have that not to but have we to, very a frustrating point. more fresh. it's definitive It's this just at don't So answer just

by with the notified approval? moving we the were Okay. that And will not when FDA forward they

on this is well, right was was disclosed, Yes. XXX-point and May I It right, expected, XX. that the on even think as we'd --

is This XX. May

So this is all fresh.

just we're our getting at go-forward arms around process this the point. So

we that's late the And It's frustrating out didn't right. sales you this, going the, good the get Exactly, meant was didn't I we what this get the like good stage, -- -- pointed game. by complete. the end thought -- frustrating. The is in and wow, the

the over respond quickly can quick the how lot weeks, . a coming weeks can weekend, back how the respond, yes, just over Norbook concur. and FDA Norbook how and there'll So forth, the over be can far of so effectively and

with McDill Fernandez Columbus. next comes The from question Maynard

achieved with question. turn has How has ICC the now production volume, still profit maximum first can XX% profit, of for if not a XX% of turned ICC the but That's volume. production quarter. to not

a The second produce profit? question project is do to you when

The depreciation. -- at question, is Yes, statement cash have thing flows, I Maynard. turn the the first I is to look fair just and that's best a I of answer our

line a flow look EBITDA, profit, not measure. is while obviously and GAAP when cash So you that's at not bottom it's a it positive

the So that's in release. our just is well, EBITDA press expenses not depreciation reports, figure GAAP -- our in the

the we from as reduce keep a that's this retain transition we're and It flow looking really we expenses but think I I almost the for to that development, some date how development that product to step cash is of can that. all on product drives commercial. driven this expense that next, 'XX quickly put as the to then at can as project P&L a how one moves from development sales. retain didn't loss here our in projection transition strong So

events of in to answer question. lot that 'XX a So

comes from question next Sean with SRK Kirkwood The Capital.

a margins. more XX-Q, that was be Can to bit those you maybe I about detail what of it few sounds about XX% target. the than yield margins questions lower margins? causing speak From the kind affecting it little like is have a is So just

I'm -- Defense, commercial to I cows, too or you manage not vaccinate the it of milk and is do that that far, one is try produce raw as And vaccine be just that go it one, that use a we variability vaccine but and the Yes. we a and mean to to it. yield source with as digress so positions is always don't just is First cows they our variable. big subject down. have biological tight material your process. up take but a is It's response. inevitable don't -- marketing our possible,

our on So production side, our in customers the see plan. day what commercial we every see

So the it margin. are factor to contaminations other that variable. did is would drag I They down expensive. And add the these is

moving certainly margin. And better and limited so with moving contaminations forward would forward or lesser yields the improve with

to to goal. make. million accept sales. the we before million this some looking that need $XX at I numbers last to That's Tri-Shield, It definitely make. back I think in just product night were a expensive a And is we fact is $XX the difficult also company, was

of to demand our really lot Tri-Shield customer is expensive a of it make. lot from more Tri-Shield, changed line, top to coming growth, has but a

with stress margin a So a a factors, I'm surprised be smaller the consider than by not less relatively those on company offering. company but I'd not Tri-Shield bolus when you much expensive disappointed, rather with X just the multi-format

Okay.

here looks to So But how quarter, I improve the how like XX%? of you correctly. if was -- only in margin your I does margins target mean contamination that of the do the read it from about X%

or things to do yield eliminates can the then controlling Yes, buttons. mitigate process contamination we're control and at volume. all and going -- There push hopefully we those are least some to eliminates those of the challenges, influence process --

more bills and, favor. get volume is to our it's fixed fixed respect Just a but going costs, work always that of to but those in lot certainly higher back a need less dollars. over margin priority, we is get with the to comes percentage, with profitability. better a question percentages. back -- It's at costs and million. the dollars that management the bolus We pay I a that And get with And yes, I margin, dollars. even bills have $XX a and that dollars being also gross alternative pay had to don't balance it to it that's goal with we may We if total Maynard's the I to to pay that think company question, slightly than

Okay.

So XXXX? going a forward? like historically Do than, improvement margin? even are QX quarter XX% What did should forward in what much highest these we any say, Is the of remainder your moving in margins year? of lower expect you see and this the new normal you

improvement, that is step, in both as yes, first Well, the X is the the moving XXX]. off mentioned, the filings and I call disasters [

margin XX%. gross how We gap do is of look cash, our and But huge of component always goods. cost focus can is at the a I XX% about thing and is, depreciation the other quickly percentage. talk move how close the So do to we now again, from

I'd that when remove the XX% be the be we with happy a could near with depreciation. margin, XX% noncash

So that we're looking buttons measure, the that and all flow to those measure cash increase yield. at

will how close XX%, disclosures, thing. quickly before depreciation. XX%, to It we can subject move performance subject how future from it a to be to XX% is So and XX% least future-looking at and

there Right. at quarter improvement from the of or is we're first looking any still mean XX%? I today as

our you, a But a really truth. metric process. is the accurately mean expect with production is Yes. The quarterly. and Sean, weekly the way We that, so We There's complex. but may a same trends. get really or to auditors not as this not is anticipate process thing monthly it certain costing, view measure satisfy the X-month production I

to accurate. that views just disclosed interim answer best the not quarterly to quarterly So because not is and are they're

remarks. would Diaz back turn our Joe the for to Mr. This question-and-answer conference closing session. like concludes I to over any

the thank some time on second you again the ends the with on all you quarter, XXXX, which call. to of that for results of Nick, be Thanks, We August and look joining review and talking to will today's forward XX, June during XX. of week

you thank great a Have day. for So your time.

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

may now disconnect. You