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 Second Quarter 2008 Results
- Continues Investment in Pharmaceutical R&D Future -
DOYLESTOWN, PA. - July 31, 2008 - The Quigley Corporation (Nasdaq: QGLY)
today reported net sales from continuing operations of $2.1 million, for the
second quarter ended June 30, 2008, compared to $2.2 million reported for the
second quarter ended June 30, 2007. For the six months ended June 30, 2008, net
sales were $7.4 million compared to $8.4 million reported for the six months
ended June 30, 2007.
2008 net sales were influenced by distribution changes and the unusually slow
start to the 2007/2008 cold season and fewer incidences of colds by consumers
during much of the period. The second quarter and first six months of 2008
reflect these facts in that customer inventories remained higher than they
desired, and although the cold season started to improve later in the season,
it was too late to positively influence the first six months of 2008.
Additionally, there was a favorable offset by a combined price increase and new
products not present in the 2007 comparable periods amounting to approximately
$300,000 and $1.0 million, respectively.
Loss from continuing operations for the second quarter and six months ended
June 30, 2008 was $2.9 million, or ($0.22) per share, and $5.3 million, or
($0.42) per share, respectively as compared to $3.4 million, or ($0.27) per
share, and $5.1 million, or ($0.40) per share, respectively for the same period
in 2007.
Net loss for the second quarter and six months ended June 30, 2008 was $2.9
million, or ($0.22) per share, and $4.4 million or ($0.35) per share,
respectively, compared to a net loss for the second quarter and six months
ended June 30, 2007 of $3.5 million, or ($0.28) per share, and $5.4 million, or
($0.43) per share, respectively. The improvement in net loss for the six months
ended June 30, 2008 reflects gains in the discontinued operations as compared
to a loss for the same period in 2007.
The decrease in loss from continuing operations for the second quarter ended
June 30, 2008 primarily reflects savings in operations for legal expenses and
costs associated with the continued investment in Quigley Pharma, a wholly
owned Ethical Pharmaceutical subsidiary developing natural-source potential
prescription and other products. The overall slight increase in loss from
continuing operations for the six months ended June 30, 2008 primarily reflects
the reduction of gross profit from reduced sales as compared to 2007.
The Quigley Corporation continues to enhance its position to capitalize on the
growth potential of Quigley Pharma by investing in key pharmaceutical research
and development including QR-333, an investigational new drug for treating
conditions associated with diabetic peripheral neuropathy. The Company is in
the midst of Phase II (b) clinical study for QR-333, which is a key segment of
the Company's strategic initiatives to generate future growth.
Over 170 million people have diabetes worldwide including an estimated 20
million people within the United States, comprising approximately 7% of the
country's population. Nearly 60% of people with diabetes will suffer mild to
severe nerve damage due to diabetic peripheral neuropathy, the treatment of
which may offer a significant opportunity for QR-333. In addition to QR-333,
The Company continues to invest in developing natural-source potential products
for disease states associated with inflammation, the protection against
infectious diseases in poultry products as well as protection against ionizing
radiation.
No tax provision or benefits, to reduce losses, are provided for the quarter
and six month period ended June 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 six months ended June 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
$390,000 for the same period in 2007.
At the end of the second quarter, The Quigley Corporation was added to the
Russell Microcap® Index, membership in which remains in place for one year
and garners automatic inclusion in the appropriate growth and value style
indexes. Russell indexes are widely used by investment managers and
institutional investors for index funds and an industry-leading $4.4 trillion
in assets are currently benchmarked to them.
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 Six-Months Six-Months
Ended Ended Ended Ended
June 30, 08 June 30, 07 June 30, 08 June 30, 07
($) ($) ($) ($)
Net Sales 2,068 2,217 7,373 8,367
Gross profit 898 995 4,467 4,934
Sales & marketing expenses 566 556 2,799 3,046
Administrative expenses 2,030 2,436 4,538 4,582
Research & development 1,265 1,622 2,675 2,774
Income taxes (benefit) - - - -
Income (Loss) from:
Continuing operations (2,879) (3,417) (5,324) (5,058)
Discontinued operations - (103) 876 (390)
Net Income (Loss) (2,879) (3,520) (4,448) (5,448)
Diluted income (loss) per share:
Continuing operations ($0.22) ($0.27) ($0.42) ($0.40)
Discontinued operations - (0.01) 0.07 (0.03)
Net loss ($0.22) ($0.28) ($0.35) ($0.43)
Diluted weighted average
common shares outstanding: 12,861,800 12,684,633 12,860,616 12,684,633
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data (in thousands)
at June 30, 2008 and December 31, 2007:
2008 2007
($) ($)
Cash & cash equivalents 14,375 15,134
Accounts receivable, net 1,613 6,649
Inventory 4,621 4,136
Total current assets 21,486 28,835
Total assets 25,557 33,502
Total current liabilities 6,749 10,258
Total stockholders' equity 18,808 23,244
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