The Quigley Corporation Reports 38.6% Increase
in Revenue for the Second Quarter
DOYLESTOWN, PA. July 24, 2003 - The Quigley Corporation
(Nasdaq: QGLY) today reported revenue of $7.0 million for the quarter ended
June 30, 2003, a 38.6% increase over the $5.1 million reported for the same
period in 2002. For the first six months of 2003, revenue was $15.2 million, a
49.2% increase over the $10.2 million in the first six months of 2002.
The increase in the 2003 revenue for the second quarter
reflects a 38.2% increase in the company's Health and Wellness segment and a
40.2% increase in the Cold Remedy segment. The increase in the 2003 revenue for
the six months reflects a 64.8% increase in the company's Health and Wellness
segment and a 23.8% increase in the Cold Remedy segment. The Company's Health
and Wellness revenues have increased as its distribution continues to expand
and Cold Remedy revenues have increased from the benefits of continued ongoing
strategic advertising and marketing initiatives.
Guy J. Quigley, Chairman, President and Chief Executive
Officer stated, "Our results for the quarter reflect continued growth in
both our Cold Remedy and Health and Wellness segments. Furthermore, we continue
to invest prudently in the Ethical Pharmaceutical segment. During the quarter
we announced results from our Phase II proof of concept study for QR-333, our
patented formula for the topical treatment of diabetic peripheral neuropathy.
In this study, subjects using this formulation had 67% of their symptoms
improve, suggesting efficacy. According to the National Institute of Diabetes
and Digestive and Kidney Diseases (NIDDK) diabetic peripheral neuropathy
afflicts approximately 60 to 70 percent of the 15.7 million people in the
United States with diabetes."
Loss from continuing operations for the second quarter of
2003 was $1.1 million or ($0.09) per share, compared to a loss from continuing
operations of $1.3 million, or ($0.12) per share, for the same period last
year. Net loss for the second quarter ended June 30, 2003 was $1.1 million or
($0.09) per share, compared to a net loss of $1.4 million, or ($0.13) per
share, in 2002.
Loss from continuing operations for the first six months of
2003 was $2.0 million, or ($0.17) per share, compared to a loss from continuing
operations of $3.1 million, or ($0.28) per share, for the same period last
year. Net loss for the first six months of 2003 was $2.0 million, or ($0.17)
per share, compared to a net loss of $3.2 million or ($0.29) per share in 2002.
Loss from continuing operations for the quarter and six
months ended June 30, 2003 decreased, as compared with 2002, because
consolidated revenues contributed comparable increases in gross profits, which
were partially offset by increases in marketing, administrative, and research
and development costs.
No tax benefits to reduce losses are provided for the
quarter and six months ended June 30, 2003 and 2002, since the Company is in a
net operating loss carry-forward position, which began in the fourth quarter of
1999, from the cumulative effect of deductions attributed to options, warrants
and unrestricted stock from previous years' taxable income.
In January 2003, the Company completed the sale of its 60%
equity interest in Caribbean Pacific Natural Products, Inc. to Suncoast
Naturals, Inc. by exchanging its 60% controlling interest in Caribbean Pacific
Natural Products, Inc. for 750,000 Shares of Common Stock and 100,000 Shares of
Redeemable Preferred Stock of Suncoast Naturals, Inc. The results of operations
of Caribbean Pacific Natural Products, Inc. are reflected as discontinued
operations of the company for the periods presented. Net loss for the quarter
and six months ended June 30, 2003 includes zero and $54,000, respectively and
net loss for the quarter and six months ended June 30, 2002 includes $116,000
and $81,000, respectively associated with discontinued operations of Caribbean
Pacific Natural Products, Inc.
No claims are being made for the potential medicine
discussed in this press release to be safe, effective, or approved by the
Federal Food and Drug Administration (FDA).
The Quigley Corporation (Nasdaq: QGLY,
http://www.Quigleyco.com) is a leading developer and marketer of diversified
health products including the Cold-EezeŽ family of patented zinc gluconate
glycine (ZIGGTM) lozenges, gums and sugar free tablets. Cold-Eeze is the only
(ZIGGTM) lozenge proven in two double-blind studies to reduce the duration of
the common cold from 7.6 to 4.4 days or by 42%. In addition to Over-The-Counter
(OTC) products, the company has formed Quigley Pharma Inc.
(http://www.QuigleyPharma.com ), a wholly owned ethical pharmaceutical
subsidiary, to introduce a line of naturally-derived patented prescription
drugs. The Quigley Corporation's customers include leading national wholesalers
and distributors, as well as independent and chain food, drug and mass
merchandise stores and pharmacies.
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 loss from continuing operations per share
and diluted net loss per share and weighted average shares
outstanding for the periods presented:
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
Sales:
Sales 7,189 5,197 15,777 10,446
Co-operative advertising 184 143 581 408
Net Sales 7,005 5,054 15,196 10,038
Licensing fees - - - 149
Gross profit 2,766 1,628 6,460 4,066
Sales & marketing expenses 816 643 2,343 1,730
Administrative expenses 2,312 1,736 4,754 4,251
Research & development 722 621 1,369 1,231
Income taxes (Benefit) - - - -
Loss from:
Continuing operations (1,055) (1,334) (1,947) (3,070)
Discontinued operations - (116) (54) (81)
Net loss (1,055) (1,450) (2,001) (3,151)
Diluted income (loss) per share:
Continuing operations ($0.09) ($0.12) ($0.17) ($0.28)
Discontinued operations - ($0.01) - ($0.01)
Net loss ($0.09) ($0.13) ($0.17) ($0.29)
Diluted weighted average common
shares outstanding: 11,459,950 10,964,597 11,458,284 10,823,291
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data
(in thousands) at June 30, 2003 and December 31, 2002:
2003 2002
($) ($)
Cash & cash equivalents 12,385 12,897
Accounts receivable, net 1,800 4,188
Inventory 4,546 4,527
Total current assets 19,525 22,476
Total assets 21,870 24,935
Total current liabilities 5,433 6,512
Total stockholders' equity 16,437 18,423
