Contact:
| |
|
| George Longo |
Carl Hymans |
| Vice President, CFO |
G.S. Schwartz & Co. |
| (215) 345-0919 |
(212) 725-4500 |
| |
carlh@schwartz.com |
The Quigley Corporation Reports First Quarter 2008 Results
- Increases Investment in Pharmaceutical R&D Future -
DOYLESTOWN, PA. - April 24, 2008 - The Quigley Corporation (Nasdaq: QGLY)
today reported net sales from continuing operations of $5.3 million, for the
first quarter ended March 31, 2008, compared to $6.1 million reported for the
same period in 2007.
The first quarter of 2008 reflects a net sales decrease for the Company's Cold
Remedy segment of $829,000 as compared to the first quarter of 2007. The change
during 2008 as compared to 2007 includes inaugural sales of two new
COLD-EEZE® branded line extensions, Organix Cough and Sore Throat Drops and
COLD-EEZE ISC-10 and a price increase that commenced during the third quarter
of 2007 totaling $700,000.
According to industry analysts, the 2007 cold season has resulted in the least
incidence of colds by consumers in the last eight years, which started to
improve by the end of the cold season, but was too late to impact sales for the
first quarter of 2008. This timing of cold incidence mitigated the impact of
positive initiatives undertaken by the Company.
Loss from continuing operations for the first quarter ended March 31, 2008 was
$2.4 million, or ($0.19) per share compared to a loss of $1.6 million, or
($0.13) per share, for the same period last year. Net loss for the quarter
ended March 31, 2008 was $1.6 million, or ($0.12) per share, compared to net
loss of $1.9 million or ($0.15) per share, for the comparable period in 2007.
The increase in loss from continuing operations for the first quarter ended
March 31, 2008 as compared to the same period in 2007 is principally due to
lower gross profits from the aforementioned related net sales change and
increases in operating expenses for costs associated with research and
development, payroll and legal fees relative to the lawsuits for the Company.
No tax provision or benefits, to reduce losses, are provided for the quarter
ended March 31, 2008 and 2007, since the Company is in a net operating loss
carry-forward position for which a valuation has been established.
On February 29, 2008, The Quigley Corporation completed the sale of its wholly
owned subsidiary, Darius International Inc. ("Darius"), which
constituted the Health and Wellness segment, to InnerLight Holdings, Inc. The
terms of the agreement include a purchase price of $1 million in cash without
guarantees, warranties or indemnifications for the stock of Darius and its
subsidiaries. The unaudited net book value of Darius at February 29, 2008 was
approximately $259,000. Net loss for the Company for the first quarter ended
March 31, 2008 reflects results from discontinued operations associated with
the sale of Darius that includes a gain on disposal of $737,000 and income from
discontinued operations of $139,000, totaling $876,000 as compared to a loss
from discontinued operations of $287,000 for the same period in 2007. As the
Company continues to review its current structure, ownership of Darius was no
longer a benefit since previous losses by this segment have been a drain for
the ongoing research and development costs associated with the ethical
pharmaceutical segment. Also, separating this segment will help streamline the
structure of the Company, which will focus on continuing operations in OTC
product marketing and continuing investment in pharmaceutical research.
The research by the Company is part of its strategic initiatives to generate
future growth. These initiatives include capitalizing on the growth potential
of Quigley Pharma, a wholly owned Ethical Pharmaceutical subsidiary, by
developing natural-source potential prescription products particularly for
Diabetic Peripheral Neuropathy, Avian Flu, disease states associated with
inflammation, and protection against ionizing Radiation, as well as, other
items.
The Quigley Corporation makes no representation that the US Food and Drug
Administration or any other regulatory agency will allow this Investigational
New Drug to be marketed. Furthermore, no claim is made that potential medicine
discussed herein is safe, effective, or approved by the Food and Drug
Administration.
Additionally, data that demonstrates activity or effectiveness in animals or in
vitro tests do not necessarily mean the formula test compound; referenced
herein will be effective in humans. Safety and effectiveness in humans will
have to be demonstrated by means of adequate and well-controlled clinical
studies before the clinical significance of the formula test compound is known.
Readers should carefully review the risk factors described in filings the
Company files from time to time with the Securities and Exchange Commission.
About The Quigley Corporation
The Quigley Corporation (NASDAQ: QGLY, http://www.Quigleyco.com) is a
diversified natural health medical science company. Its Cold Remedy segment is
a leading marketer and manufacturer of the COLD-EEZE® family of lozenges,
gums and sugar free tablets clinically proven to cut the common cold nearly in
half. COLD-EEZE customers include leading national wholesalers and
distributors, as well as independent and chain food, drug and mass merchandise
stores and pharmacies. The Quigley Corporation has wholly owned subsidiaries;
Quigley Manufacturing Inc. consists of two FDA approved facilities to
manufacture COLD-EEZE® lozenges as well as fulfill other contract
manufacturing opportunities and Quigley Pharma Inc.
(http://www.QuigleyPharma.com) conducts research in order to develop and
commercialize a pipeline of patented botanical and naturally derived potential
prescription drugs.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995 and involve known and unknown risk, uncertainties and other factors
that may cause the Company's actual performance or achievements to be
materially different from the results, performance or achievements expressed or
implied by the forward-looking statement. Factors that impact such
forward-looking statements include, among others, changes in worldwide general
economic conditions, changes in interest rates, government regulations, and
worldwide competition.
(Tables Follow)
Consolidated Statements of Operations (Unaudited)
The following represents condensed financial data (in thousands)
except per share data:
Three-Months Three-Months
Ended Ended
March 31, 2008 March 31, 2007
($) ($)
Net Sales 5,305 6,150
Gross profit 3,570 3,938
Sales & marketing expenses 2,232 2,491
Administrative expenses 2,508 2,145
Research & development 1,411 1,151
Income taxes (benefit) - -
Income (Loss) from:
Continuing operations (2,445) (1,641)
Discontinued operations 876 (287)
Net Income (Loss) (1,569) (1,928)
Diluted income (loss) per share:
Continuing operations ($0.19) ($0.13)
Discontinued operations 0.07 (0.02)
Net income (loss) ($0.12) ($0.15)
Diluted weighted average
common shares outstanding: 12,859,433 12,684,633
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data (in thousands)
at March 31, 2008 and December 31, 2007:
2008 2007
($) ($)
Cash & cash equivalents 16,265 15,134
Accounts receivable, net 3,379 6,649
Inventory 4,312 4,136
Total current assets 24,540 28,835
Total assets 28,806 33,502
Total current liabilities 7,124 10,258
Total stockholders’ equity 21,683 23,244
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