United-Guardian Reports Second Quarter Financial Results
09 August 2019 - 3:00PM
United-Guardian, Inc. (NASDAQ:UG) reported today that as a result
of reduced sales of the company’s products in China, its second
quarter sales decreased by 16% from $3,885,887 in 2018 to
$3,279,399 this year, resulting in a decrease in net income from
$1,392,662 ($0.30 per share) in 2018 to $1,078,810 ($0.23 per
share) in 2019. For the first six months of 2019 sales were down
12% from $7,322,151 in 2018 to $6,459,716 this year, with net
income decreasing from $2,452,524 ($0.53 per share) to $2,301,504
($0.50 per share).
Ken Globus, President of United-Guardian,
stated, “As a result of the decrease in demand in China for one of
the consumer products in which our products are being used, sales
in China this year have been slower than they were last year.
However, we are working closely with our marketing partner in China
to be more aggressive with our pricing, which we hope will enable
us to continue to be as competitive as possible in China despite
the current tariff war and the recent devaluation of the Chinese
yuan. We are also in the process of making a major change in our
marketing strategy in Korea, where we will be replacing our current
marketing partner with a marketing partner that has a much stronger
presence in Korea. We are hopeful that this change will enable us
to reverse the sales decline we have experienced in Korea over the
past couple of years. While we are disappointed with our second
quarter financial results, we are pleased to report that sales of
Renacidin®, our most important pharmaceutical product, have
increased 17% so far this year, and our overall July sales were
very strong. We continue to be hopeful that we will see an increase
in both sales and earnings in the third quarter.”
United-Guardian is a manufacturer of cosmetic
ingredients, personal and health care products, pharmaceuticals,
and specialty industrial products.
Contact:
Robert S. RubingerPublic Relations(631)
273-0900
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.
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RESULTS FOR THE QUARTERS ENDED JUNE 30,
2019 and JUNE 30, 2018* |
|
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THREE MONTHS ENDED JUNE
30, |
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SIX MONTHS ENDED
JUNE 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
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Net
sales |
$ |
3,279,399 |
|
$ |
3,885,887 |
|
$ |
6,459,716 |
|
$ |
7,322,151 |
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Costs and
expenses: |
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Cost of sales |
|
1,467,323 |
|
|
1,536,842 |
|
|
2,755,668 |
|
|
2,904,525 |
|
Operating expenses |
|
502,094 |
|
|
534,420 |
|
|
1,049,056 |
|
|
1,058,534 |
|
Research and development expense |
|
93,846 |
|
|
91,285 |
|
|
192,504 |
|
|
192,949 |
|
Total costs and expenses |
|
2,063,263 |
|
|
2,162,547 |
|
|
3,997,228 |
|
|
4,156,008 |
|
Income from operations |
|
1,216,136 |
|
|
1,723,340 |
|
|
2,462,488 |
|
|
3,166,143 |
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Other income
(expense): |
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Investment income |
|
49,941 |
|
|
57,777 |
|
|
94,108 |
|
|
104,559 |
|
Net gain (loss) on marketable securities |
|
86,849 |
|
|
(18,256 |
) |
|
344,043 |
|
|
(153,406 |
) |
Loss on trade-in of equipment |
|
--- |
|
|
--- |
|
|
--- |
|
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(12,837 |
) |
Total other income (expense) |
|
136,790 |
|
|
39,521 |
|
|
438,151 |
|
|
(61,684 |
) |
Income before provision for income
taxes |
|
1,352,926 |
|
|
1,762,861 |
|
|
2,900,639 |
|
|
3,104,459 |
|
|
|
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|
|
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|
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Provision for income taxes |
|
274,116 |
|
|
370,199 |
|
|
599,135 |
|
|
651,935 |
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NET INCOME |
$ |
1,078,810 |
|
$ |
1,392,662 |
|
$ |
2,301,504 |
|
$ |
2,452,524 |
|
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Earnings per common
share (Basic and Diluted) |
$ |
0.23 |
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$ |
0.30 |
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$ |
0.50 |
|
$ |
0.53 |
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Weighted average
shares (Basic and Diluted) |
|
4,594,319 |
|
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4,594,319 |
|
|
4,594,319 |
|
|
4,594,319 |
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* Additional financial information can be found
at the company’s web site at www.u-g.com.
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