United-Guardian Reports Third Quarter Financial Results
November 10 2020 - 11:00AM
United-Guardian, Inc. (NASDAQ:UG) today reported net income of
$717,532 ($0.16 per share) on net sales of $2,336,360 for the
quarter ended September 30, 2020, compared with net income of
$1,069,871 ($0.23 per share) on sales of $3,317,370 for last year’s
third quarter. For the first nine months of 2020, the company
reported net income of $2,694,450 ($0.59 per share) on sales of
$8,613,918, compared with net income of $3,371,375 ($0.73 per
share) on sales of $9,777,086 for the corresponding period in 2019.
Ken Globus, President of United-Guardian,
stated, “As we anticipated, sales and earnings for the third
quarter were impacted by the coronavirus pandemic to a greater
degree than they were in the first and second quarters, which we
believe was primarily due to the overall global decrease in
consumer demand for personal care products. In addition to
manufacturers cutting back on production, the coronavirus also
caused the temporary closing of many manufacturing facilities, all
of which reduced the need for our products and resulted in many
distributors holding excess inventory that has to be worked
off.”
“On a positive note, demand for our
pharmaceutical products increased by 9% and 15% for the three and
nine months, respectively, continuing the trend we have seen this
year. With the coronavirus pandemic not yet under control in the
U.S. and abroad, we are anticipating that the reduced demand for
our cosmetic ingredients, especially in China, will continue until
at least the end of the year, possibly longer, depending on how
long it takes for the global economies to recover. Until then, we
will continue to work closely with our marketing partners to reduce
the inventory overstock situation, and to increase our sales by
continuing to introduce new cosmetic ingredients and aggressively
promote our current products.”
United-Guardian is a manufacturer of cosmetic
ingredients, personal and health care products, pharmaceuticals,
and specialty industrial products.
Contact: Ken Globus
Investor
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.
STATEMENTS OF
INCOME* FOR
THETHREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2020 and
2019(UNAUDITED)
|
|
THREE MONTHS ENDED SEPTEMBER
30, |
|
NINE MONTHS
ENDED
SEPTEMBER 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
$ |
2,336,360 |
|
$ |
3,317,370 |
|
$ |
8,613,918 |
|
$ |
9,777,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
974,763 |
|
|
1,386,948 |
|
|
3,634,528 |
|
|
4,142,616 |
|
Operating expenses |
|
493,204 |
|
|
544,176 |
|
|
1,520,114 |
|
|
1,593,232 |
|
Research and development |
|
114,836 |
|
|
104,800 |
|
|
331,134 |
|
|
297,304 |
|
Total costs and expenses |
|
1,582,803 |
|
|
2,035,924 |
|
|
5,485,776 |
|
|
6,033,152 |
|
Income from
operations |
|
753,557 |
|
|
1,281,446 |
|
|
3,128,142 |
|
|
3,743,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
38,932 |
|
|
47,320 |
|
|
131,318 |
|
|
141,428 |
|
Net gain on marketable securities |
|
113,248 |
|
|
25,499 |
|
|
143,832 |
|
|
369,542 |
|
Total other income |
|
152,180 |
|
|
72,819 |
|
|
275,150 |
|
|
510,970 |
|
Income before provision for income
taxes |
|
905,737 |
|
|
1,354,265 |
|
|
3,403,292 |
|
|
4,254,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
188,205 |
|
|
284,394 |
|
|
708,842 |
|
|
883,529 |
|
Net Income |
$ |
717,532 |
|
$ |
1,069,871 |
|
$ |
2,694,450 |
|
$ |
3,371,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share (Basic and Diluted) |
$ |
0.16 |
|
$ |
0.23 |
|
$ |
0.59 |
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares – basic
and diluted |
|
4,594,319 |
|
|
4,594,319 |
|
|
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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