United-Guardian Reports Second Quarter Financial Results
09 August 2016 - 6:01PM
United-Guardian, Inc. (NASDAQ:UG) today reported second quarter net
income of $405,381 ($0.09 per share) on sales of $2,139,165, and
net income of $930,472 ($0.20 per share) on sales of $4,401,741 for
the first half of 2016. The decreases from last year’s second
quarter and first half were not unexpected based upon previous
information that had been released by the company.
Ken Globus, President of United-Guardian,
stated, "As expected, second quarter sales continued to lag behind
last year’s comparable quarter due to slow sales in China, where
our distributor is still working off excess inventory brought in
during the first nine months of 2015. That overstock situation was
the result of overly optimistic projections it had received from
its Chinese customers, along with a regulatory issue unrelated to
our product that required customers to reformulate their products,
a process that is ongoing. As a result, we did not expect sales of
our personal care products in China to pick up until the second
half of this year, and that is reflected in the second quarter
sales numbers. Our marketing partner in China has informed us that
sales are expected to resume by the end of the third quarter or
beginning of the fourth.”
“On a more positive note,” continued Mr. Globus,
“sales of our new Renacidin® 30mL bottle have increased
dramatically since we began selling the product in April, and have
surpassed our expectations. Revenue from the new Renacidin in June
was approximately $280,000, more than double the $130,000 a month
we were averaging for the old Renacidin, and in July revenue jumped
to $340,000. We are very excited about this, and are optimistic
that sales will reach the levels that we had hoped for when we
decided to bring this new, more convenient single-dose package to
market. With increasing Renacidin sales, along with our expectation
that purchases of our personal care products for the Chinese market
will resume in the second half of the year, we are optimistic that
sales and earnings will increase as the year progresses. We
continue to be profitable and are confident that we will be able to
continue to pay a year-end cash dividend as we have for the past 21
years.”
United-Guardian is a manufacturer of cosmetic
ingredients, personal and health care products, pharmaceuticals,
and specialty industrial products.
NOTE: This press release contains both
historical and "forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements about the company’s expectations or beliefs concerning
future events, such as financial performance, business prospects,
and similar matters, are being made in reliance upon the “safe
harbor” provisions of that Act. Such statements are subject to a
variety of factors that could cause our actual results or
performance to differ materially from the anticipated results or
performance expressed or implied by such forward-looking
statements. For further information about the risks and
uncertainties that may affect the company’s business please refer
to the company's reports and filings with the Securities and
Exchange Commission.
|
RESULTS FOR THE THREE AND SIX MONTHS
ENDED |
JUNE 30, 2016 and 2015 |
|
STATEMENTS OF INCOME (UNAUDITED) |
|
|
THREE MONTHS ENDED JUNE 30, |
|
|
SIX MONTHS ENDEDJUNE
30, |
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
2,139,165 |
|
$ |
4,124,091 |
|
|
$ |
4,401,741 |
|
$ |
8,496,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
1,007,666 |
|
|
1,403,942 |
|
|
|
1,905,391 |
|
|
3,083,144 |
|
Operating
expenses |
|
465,329 |
|
|
443,991 |
|
|
|
932,885 |
|
|
904,918 |
|
Research
and development |
|
157,895 |
|
|
156,541 |
|
|
|
335,461 |
|
|
322,849 |
|
Total costs and expenses |
|
1,630,890 |
|
|
2,004,474 |
|
|
|
3,173,737 |
|
|
4,310,911 |
|
Income from operations |
|
508,275 |
|
|
2,119,617 |
|
|
|
1,228,004 |
|
|
4,185,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
82,906 |
|
|
72,894 |
|
|
|
126,218 |
|
|
126,348 |
|
Income before income taxes |
|
591,181 |
|
|
2,192,511 |
|
|
|
1,354,222 |
|
|
4,311,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
185,800 |
|
|
682,000 |
|
|
|
423,750 |
|
|
1,340,900 |
|
Net Income |
$ |
405,381 |
|
$ |
1,510,511 |
|
|
$ |
930,472 |
|
$ |
2,971,021 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Earnings per
common share (Basic and Diluted)
|
$ |
.09 |
|
$ |
0.33 |
|
|
$ |
0.20 |
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares –
basic and diluted |
|
4,594,319 |
|
|
4,596,439 |
|
|
|
4,594,319 |
|
|
4,596,439 |
|
|
|
|
|
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••• Additional financial information can be found
at the company’s web site at www.u-g.com. •••
Contact:
Robert S. Rubinger
Public Relations
(631) 273-0900
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