United-Guardian Reports Second Quarter Financial Results

Rhea-AI Summary

United-Guardian (NASDAQ:UG) reported a 10% increase in net income for Q2 2020, reaching $1,186,611 compared to $1,078,810 in Q2 2019, despite a 10% drop in sales from $3,279,399 to $2,954,644. Year-to-date sales also declined slightly to $6,277,558 from $6,459,716 in 2019, with net income decreasing to $1,976,918 ($0.43/share) from $2,301,504 ($0.50/share). The company expects continued strength in pharmaceutical and medical product sales, although cosmetic ingredient sales may decline due to the pandemic.

Positive

• Net income increased by 10% year-over-year in Q2 2020.
• Earnings per share rose from $0.23 to $0.26 in Q2 2020.
• Strong sales performance in April helped offset declines.

Negative

• Sales decreased by 10% compared to Q2 2019.
• Year-to-date sales fell from $6,459,716 to $6,277,558.
• Net income for the first six months of 2020 decreased compared to 2019.

HAUPPAUGE, N.Y., Aug. 07, 2020 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) reported today that net income for the second quarter of 2020 grew by 10% over the same quarter last year, increasing from $1,078,810 in 2019 to $1,186,611 this year, despite sales decreasing by 10% from $3,279,399 to $2,954,644. Sales for the first six months of the year were down slightly from $6,459,716 in 2019 to $6,277,558 this year, with net income for the six-month period decreasing from $2,301,504 ($0.50 a share) in 2019 to $1,976,918 ($0.43 a share) in the first six months of 2020.

Ken Globus, President of United-Guardian, stated, “With many companies continuing to struggle during these difficult times, we were pleased that we were able to maintain a strong level of sales, even with some of our major markets, particularly China, being severely impacted by the global pandemic. With some help from the recovering stock market, which increased the value of our marketable securities, as well as very strong sales in April, we were able to increase our earnings from $0.23 per share in the second quarter of 2019 to $0.26 this year, despite the lower sales. Although we anticipate that the pandemic will impact global sales of our cosmetic ingredients more significantly in the third quarter than it did in the first two quarters of the year, we expect sales of our pharmaceutical and medical products to remain strong, and we continue to be hopeful that we will see a gradual increase in sales as the year progresses and the global economies continue to recover.”

United-Guardian is a manufacturer of cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products.

Contact:
Ken Globus
(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.

RESULTS FOR THE QUARTERS ENDED
JUNE 30, 2020 and JUNE 30, 2019*

STATEMENTS OF INCOME
(UNAUDITED)

		THREE MONTHS ENDED JUNE 30,					SIX MONTHS ENDED JUNE 30,
		2020			2019			2020			2019
Net sales	$	2,954,644		$	3,279,399		$	6,277,558		$	6,459,716
Costs and expenses:
Cost of sales		1,270,434			1,467,323			2,659,765			2,755,668
Operating expenses		511,635			502,094			1,026,910			1,049,056
Research and development expense		108,566			93,846			216,298			192,504
Total costs and expenses		1,890,635			2,063,263			3,902,973			3,997,228
Income from operations		1,064,009			1,216,136			2,374,585			2,462,488
Other income:
Investment income		48,319			49,941			92,386			94,108
Net gain on marketable securities		387,179			86,849			30,584			344,043
Total other income		435,498			136,790			122,970			438,151
Income before provision for income taxes		1,499,507			1,352,926			2,497,555			2,900,639
Provision for income taxes		312,896			274,116			520,637			599,135
NET INCOME	$	1,186,611		$	1,078,810		$	1,976,918		$	2,301,504
Earnings per common share   (basic and diluted)	$	0.26		$	0.23		$	0.43		$	0.50
Weighted average shares   (basic and diluted)		4,594,319			4,594,319			4,594,319			4,594,319

* Additional financial information can be found on the company’s web site at www.u-g.com. 

FAQ

What were United-Guardian's earnings for Q2 2020?

United-Guardian reported a net income of $1,186,611 for Q2 2020.

How did United-Guardian's sales perform in Q2 2020?

Sales decreased 10% from $3,279,399 in Q2 2019 to $2,954,644 in Q2 2020.

What is the earnings per share for United-Guardian in Q2 2020?

Earnings per share increased to $0.26 in Q2 2020 from $0.23 in the previous year.

What is the future outlook for United-Guardian's sales?

The company anticipates challenges in cosmetic ingredient sales due to the pandemic, but expects strong pharmaceutical and medical product sales.