ImmuCell(US:ICCC)2025-05-15 14:00Financial Data and Key Metrics Changes - Product sales for the first quarter of 2025 increased by 11% or $810,000 to a record $8,100,000 compared to the first quarter of 2024, surpassing the previous record set in the fourth quarter of 2024 [9] - The gross margin improved to 42% in the first quarter of 2025, up from 37% in the fourth quarter of 2024, although the target remains at 45% or more [11] - Adjusted EBITDA for the three months ended 03/31/2025 was $2,300,000, a significant increase from $705,000 in the same period of 2024 [12] Business Line Data and Key Metrics Changes - The sales mix for Tri Shield constituted 71% of total sales in the latest quarter, up from 55% in the previous quarter, indicating strong demand for this product [17] - The company is developing a new bulk powder product, expected to be launched in the latter half of 2025, which will target large ranches [20] Market Data and Key Metrics Changes - The order backlog decreased from $4,400,000 as of 12/31/2024 to $4,000,000 as of 03/31/2025, and further reduced to $3,400,000 as of 05/06/2025, indicating improved sales performance [9] Company Strategy and Development Direction - The company is focused on expanding its product offerings and increasing production capacity, having completed investments to boost production capacity to over $30,000,000 per year [6] - Management emphasized the importance of avoiding contamination events and maintaining strong production yields to drive cash flows [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory for the remainder of 2025, highlighting the complexity of managing a growing and diverse business [8] - The company is currently utilizing investigational product use of Repayne to gather market feedback while minimizing product development costs [7] Other Important Information - The company has not experienced any contamination events for over a year, which has positively impacted production and sales [6] - The new CFO, Tim Fiori, brings extensive experience from IDEXX Laboratories, which is expected to enhance financial operations [8] Q&A Session Summary Question: Inquiry about product mix and Tri Shield sales - Management confirmed that Tri Shield has been a significant driver of growth due to its broader claims and efficacy [19] Question: Expectations for new bulk powder product - The bulk powder product is still in development, with no sales reported yet, but is expected to launch in the second half of 2025 [20] Question: Clarification on EBITDA erosion from past contamination events - Management indicated that the last contamination event occurred in April 2024, affecting the previous year's EBITDA, but strong sales have rebounded since then [32][34] Question: Future revenue expectations - Management noted that the second quarter is expected to benefit from clearing the backlog and increased production capacity, although specific revenue projections were not provided [38] Question: Investigational product use versus commercial approval - The investigational use allows the company to gather data without generating revenue, while awaiting full FDA approval [58] Question: Impact of profitability on share sales - Management acknowledged that profitability is a factor in share sales, but capital needs for growth and obligations remain considerations [59] Question: Future projections for the company - Management expressed caution in providing specific projections due to the variability in sales and market conditions, emphasizing the importance of tracking performance [67]