United-Guardian Reports First Quarter Financial Results and Dividend Payment
May 12 2022 - 9:00AM
United-Guardian, Inc. (NASDAQ:UG) reported today that net sales for
the first quarter of 2022 rose by 13% compared with last year’s
first quarter, increasing from $3,430,868 to 3,892,358, while net
income for the quarter decreased by $269,737 from $1,181,202 ($0.26
per share) in 2021 to $911,465 ($0.20 per share) this year. The
company also reported that at its meeting on May 10th, 2021 the
company's Board of Directors declared a cash dividend of $0.37 a
share, which will be paid on June 1, 2022 to all stockholders of
record on May 23, 2022. This will be the 27th consecutive year that
the company has paid a dividend.
Ken Globus, President of United-Guardian,
stated, “Our overall sales continued to increase in the first
quarter of this year compared with last year, with sales of our
cosmetic ingredients increasing by 27% over the same quarter in
2021. Sales of our pharmaceutical products also increased, but that
increase was partially offset by a decrease in sales of some of our
medical products. Despite the increase in sales, our net income for
the quarter was lower than it was in the first quarter of 2021,
primarily due to the significant drop in the stock market in the
first quarter of 2022, which resulted in a decrease in the value of
our marketable securities. Net income was also impacted by an
increase in raw material and shipping costs, but we are hopeful
that those costs will begin to moderate as the global economy
continues to recover from the impact of the coronavirus
pandemic.”
Mr. Globus continued, “With our expectation that
the second quarter will also be profitable, the Board of Directors
decided that it would be in the best interests of the company and
its stockholders to continue to pay our semi-annual dividend. Based
on the current volatility of the stock market, as well as the
future potential impact of the coronavirus pandemic, the Board
decided that it would be prudent to reduce this dividend compared
with the dividend we paid in the first quarter of 2022, but we will
reassess the situation when the time comes time to decide on the
payment of a dividend for the second half of the year.”
United-Guardian is a manufacturer of cosmetic
ingredients, personal and health care products, pharmaceuticals,
and specialty industrial products.
Contact: Ken Globus(631) 273-0900pgc@u-g.com
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 QUARTERS
ENDEDMARCH 31, 2022 and MARCH 31,
2021*
STATEMENTS OF INCOME
(UNAUDITED)
|
|
THREE MONTHS ENDEDMARCH 31, |
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
Sales |
|
$ |
3,892,358 |
|
$ |
3,430,868 |
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
Cost of sales |
|
|
1,710,117 |
|
|
1,361,013 |
|
Operating expenses |
|
|
546,749 |
|
|
457,127 |
|
Research and development |
|
|
131,666 |
|
|
88,286 |
|
Total costs and expenses |
|
|
2,388,532 |
|
|
1,906,426 |
|
Income from
operations |
|
|
1,503,826 |
|
|
1,524,442 |
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
Investment income |
|
|
40,550 |
|
|
39,760 |
|
Net loss on marketable securities |
|
|
(393,660 |
) |
|
(72,047 |
) |
Total other (expense) income |
|
|
(353,110 |
) |
|
(32,287 |
) |
Income before
provision for income taxes |
|
|
1,150,716 |
|
|
1,492,155 |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
239,251 |
|
|
310,953 |
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
911,465 |
|
$ |
1,181,202 |
|
|
|
|
|
|
|
|
|
Earnings per common
share (basic and diluted) |
|
$ |
0.20 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
Weighted average shares –
basic and diluted |
|
|
4,594,319 |
|
|
4,594,319 |
|
* Additional financial information can be found
at the company’s web site at www.u-g.com.
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