Contact:
| David K. Waldman/John W. Heilshorn |
The Quigley Corporation |
| Lippert Heilshorn & Associates |
Carl Fonash |
| (212) 838-3777 |
Shareholder Relations |
| dwaldman@lhai.com |
(267) 880-1111 |
Quigley Reports Second Quarter Results
DOYLESTOWN, PA. - July 30, 2004 - The Quigley Corporation (Nasdaq: QGLY) today reported net sales of $6.9 million for the second quarter of 2004,
compared to $7.0 million reported for the same period in 2003. For the
six-months ended June 30, 2004, net sales were $16.5 million, compared to $15.2
million in 2003.
Net sales of the Company's Cold Remedy segment was relatively unchanged for the
second quarter of 2004 as compared to 2003. Net sales of the Health and
Wellness segment decreased 2.0% during the quarter, due to a decline in the
number of active domestic independent representatives, which was partially
offset by an increase in European sales as compared to 2003. The increase in
net sales for the six months reflects a 17.9% increase in the Company's Cold
Remedy segment and a 4.3% increase in the Health and Wellness segment. The
Company's Cold Remedy net sales increased for the six-months, as a result of
continued strategic advertising, marketing initiatives, and new products. The
Company's Health and Wellness revenues for the six-months increased as
distribution continues to expand internationally.
Net loss for the second quarter ended June 30, 2004 was $900,000, or ($0.08)
per share, compared to a net loss of $1.1 million, or ($0.09) per share, for
the same period last year. Net loss for the six-months ended June 30, 2004 was
$1.7 million, or ($0.15) per share, compared to a net loss of $2.0 million, or
($0.17) per share, for the same period last year. Net loss for the six-months
ended June 30, 2004 and 2003 is principally attributed to research and
development costs of $1.8 million and $1.4 million, respectively.
Net loss for the quarter ended June 30, 2004 improved as compared with the same
period last year, driven by savings in administrative costs, which were
primarily offset by increased research and development costs associated with
Quigley Pharma. Net loss for the six-months improved as compared with the same
period last year, driven by gross profit gains from Cold Remedy, which were
partially offset by increases in research and development costs associated with
Quigley Pharma.
No tax benefits to reduce losses are provided for the quarters and six months
ended June 30, 2004 and 2003, since the Company is in a net operating loss
carry-forward position, which is from the cumulative effect of deductions
attributed to options, warrants and unrestricted stock from previous year's
taxable income.
Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "Although the second quarter is our seasonally weakest period, we reduced our
net loss for both the second quarter and first half, while investing heavily in
pharmaceutical research and development. As we enter the third quarter, we are
in the process of beginning delivery of our new COLD-EEZE® bubble gum and
COLD-EEZE® `green-tea with lemon' lozenges to retail stores."
Mr. Quigley continued, "During the quarter, we also announced several
important developments in our pharmaceutical segment. First, QR-435
demonstrated efficacy in significantly reducing the severity of illness in
ferrets infected with the Influenza A virus. These results provide additional
pre-clinical data suggesting that QR- 435 can both prevent and treat Influenza
A virus in a ferret animal model. Additionally, we completed a study, which
determined that injection of QR-336 was protective against the effects of a
lethal, whole-body ionizing- radiation dose in a mouse model."
The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a leading
developer and marketer of diversified health products including the COLD-EEZE®
family of patented zinc gluconate glycine (ZIGG™) lozenges and sugar free
tablets. COLD-EEZE is the only (ZIGG) 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. The Quigley Corporation makes
no representation that the U.S. Food and Drug Administration or any other
regulatory agency will grant an IND or take any other action to allow the
aforementioned products to be studied or marketed. Furthermore, no claim is
made that the potential medicine discussed here is safe, effective, or approved
by the Food and Drug Administration.
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, 2004 June 30, 2003 June 30, 2004 June 30, 2003
($) ($) ($) ($)
Net Sales 6,901 7,005 16,507 15,196
Gross profit 2,777 2,766 7,297 6,460
Sales & marketing expenses 835 816 2,458 2,343
Administrative expenses 2,055 2,312 4,805 4,754
Research & development 821 722 1,768 1,370
Income taxes (Benefit) - - - -
Loss from:
Continuing operations (912) (1,055) (1,694) (1,947)
Discontinued operations - - - (55)
Net loss (912) (1,055) (1,694) (2,002)
Diluted loss per share:
Continuing operations ($0.08) ($0.09) ($0.15) ($0.17)
Discontinued operations - - - -
Net loss ($0.08) ($0.09) ($0.15) ($0.17)
Diluted weighted average
common shares outstanding: 11,512,092 11,459,950 11,511,390 11,458,284
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data (in thousands) at June 30, 2004 and December 31, 2003:
2004 2003
($) ($)
Cash & cash equivalents 13,736 11,392
Accounts receivable, net 1,362 7,862
Inventory 4,295 3,753
Total current assets 20,005 23,740
Total assets 22,406 26,270
Total current liabilities 3,241 5,483
Total stockholders' equity 19,107 20,787
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