Contact:
| |
|
| Gerard Gleeson |
Carl Hymans |
| Vice President, CFO |
G.S. Schwartz & Co. |
| (215) 345-0919 |
(212) 725-4500 |
| |
carlh@schwartz.com |
The Quigley Corporation Reports Third Quarter 2008 Results
- Continues Investment in Pharmaceutical R&D Future -
DOYLESTOWN, PA. - October 30, 2008 - The Quigley Corporation (Nasdaq: QGLY),
(www.quigleyco.com) today reported net sales from continuing operations of $6.4
million, for the third quarter ended September 30, 2008, compared to $9.1
million reported for the third quarter ended September 30, 2007. For the nine
months ended September 30, 2008, net sales were $13.7 million compared to $17.5
million reported for the nine months ended September 30, 2007.
The third quarter and nine month periods of 2008 reflect a net sales decrease
as a result of a slow start to the 2007/2008 cold season and changes to
customers' buying habits. The 2008 periods’ net sales were favorably offset by
sales of the Kids-EEZE® Chest Relief product line, which was launched in
August 2009 and a price increase which commenced in the third quarter of 2007.
Kids-EEZE® Chest Relief, http://www.kids-eeze.com is a single-ingredient,
allopathic expectorant with guaifenesin to help children, ages six and up,
suffering from uncomfortable chest congestion. Kids-EEZE® Chest Relief
provides an alternative to the many multi-symptom children's cold products that
could potentially lead to overmedication. The Company has initiated an
advertising and targeted couponing campaign to promote the COLD-EEZE® brand
and brand extensions during the forthcoming cold season.
Income from continuing operations for the third quarter ended September 30,
2008 was $879,000, or $0.07 per share, compared to $1.4 million, or $0.11 per
share for the third quarter of 2007. Loss from continuing operations for the
nine months ended September 30, 2008, was $4.4 million, or ($0.35) per share
compared to $3.7 million, or ($0.29) per share for the same period in 2007.
Income from continuing operations for the third quarter of 2008, as compared to
the same period in 2007, reflects a reduction of gross profit from reduced
sales as well as costs associated with the continued investment in Quigley
Pharma, a wholly owned Ethical Pharmaceutical subsidiary developing
natural-source potential prescription and other products. The loss from
continuing operations for the nine months ended September 30, 2008 reflects the
aforementioned reduction in gross profit from reduced sales as well as costs
associated with the continued investment in Quigley Pharma, compared to the
like period of 2007.
Net income for the third quarter ended September 30, 2008 was $879,000, or
$0.07 per share, compared to $1.3 million, or $0.10 per share for the third
quarter of 2007. Net loss for the nine months ended September 30, 2008 was $3.6
million, or ($0.28) per share, compared to a net loss of $4.1 million, or
($0.32) per share for the nine months ended September 30, 2007. The improvement
in net loss for the nine months ended September 30, 2008 reflects gains in the
discontinued operations as compared to a loss for the same period in 2007.
No tax provision or benefits, to reduce losses, are provided for the quarter
and nine month period ended September 30, 2008 and 2007, since the Company is
in a net operating loss carry-forward position for which a valuation has been
established.
In March 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. Net loss of the
Company for the nine months ended September 30, 2008 reflects results from
discontinued operations associated with the sale of Darius that included 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
$445,000 for the same period in 2007.
The Company continues to invest in the development of natural-source potential
products particularly for Diabetic Peripheral Neuropathy, the protection
against infectious diseases in poultry products, disease states associated with
inflammation, and protection against ionizing Radiation, as well as other
health and wellness conditions.
Summary of major ethical pharmaceutical events that occurred during the third
quarter of 2008:
Ongoing Quigley Pharma research and development initiatives include investing
in its key pharmaceutical formulations, QR-333, an investigational new drug for
treating conditions associated with Diabetic Peripheral Neuropathy. The Company
is in the midst of a Phase II (b) clinical study for QR-333, which is a key
segment of the Company's strategic initiatives to generate future growth.
During the third quarter of 2008, Quigley Pharma announced positive results of
its study to determine the duration of the anti-viral effect of QR448(a), a
veterinary anti-viral compound against Infectious Bronchitis Virus (IBV) in
commercial broiler chickens, a consumer meat type bird. QR448(a) also prevented
the transmission of IBV from infected to non-infected 2 week old commercial
broiler chickens, a consumer meat type bird.
Veterinary poultry products industry experts and those familiar with prevention
and control of IBV recognize that abating transmission is perhaps one of the
most important ways to economically prevent, control and manage potential
losses due to IBV outbreaks.
The Company plans to continue to build on these recent events to improve its
potential commercial and partnering prospects.
The Quigley Corporation makes no representation that the US Food and Drug
Administration or any other regulatory agency will allow the aforementioned
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 Nine-Months Nine-Months
Ended Ended Ended Ended
Sept.30, 08 Sept.30, 07 Sept.30, 08 Sept.30, 07
($) ($) ($) ($)
Net Sales 6,354 9,132 13,728 17,499
Gross profit 4,082 5,980 8,550 10,913
Sales & marketing expenses 652 865 3,450 3,911
Administrative expenses 1,661 1,868 6,200 6,449
Research & development 955 2,018 3,630 4,792
Income taxes (benefit) - - - -
Income (Loss) from:
Continuing operations 879 1,384 (4,445) (3,674)
Discontinued operations - (55) 876 (445)
Net Income (Loss) 879 1,329 (3,569) (4,119)
Diluted income (loss) per share:
Continuing operations $0.07 $0.11 ($0.35) ($0.29)
Discontinued operations - (0.01) 0.07 (0.03)
Net income (loss) $0.07 $0.10 ($0.28) ($0.32)
Diluted weighted average
common shares outstanding: 13,158,145 13,095,839 12,868,683 12,688,966
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data (in thousands)
at September 30, 2008 and December 31, 2007:
2008 2007
($) ($)
Cash & cash equivalents 10,880 15,134
Accounts receivable, net 5,499 6,649
Inventory 5,074 4,136
Total current assets 22,632 28,835
Total assets 27,571 33,502
Total current liabilities 6,839 10,258
Total stockholders' equity 19,732 23,244
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