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United-Guardian Reports Increase in Sales & Earnings

HAUPPAUGE, N.Y., March 21, 2019 (GLOBE NEWSWIRE) -- United-Guardian, Inc., (UG) announced today that both sales and earnings increased in 2018, with gross sales increasing by 8% and earnings increasing by 13% over 2017. Net income for the year was $4,352,331 ($0.95 per share) on sales of $14,458,055, compared with net income of $3,844,290 ($0.84 per share) on sales of $13,434,460 in 2017.

Ken Globus, President of United-Guardian, stated, “Because the ongoing trade issues with China have not impacted sales of our cosmetic ingredients in China to date, those sales were very strong in 2018, and contributed significantly to the 10% increase in sales of our personal care products in 2018. We were able to accomplish this despite increased competition in both China and Europe from lower-cost Asian competitors. We continue to believe that our reputation for producing high-quality products, along with our extensive experience in formulating and manufacturing innovative ingredients for the cosmetic industry, will enable us to continue our strong sales in Asia despite the increased competition. We are continuing to work closely with our global marketing partners to add innovative new products to our personal care product line, such as our growing portfolio of “natural” cosmetic ingredients. We are also working closely with our internet marketing consultant to increase patient and physician awareness of our most important pharmaceutical product, Renacidin® Irrigation, and over the past few months we have seen a significant increase in the number of visits to our new Renacidin.com website. We remain optimistic that our continuing efforts to expand our personal care product line, along with our new Renacidin marketing campaign, will result in another profitable year in 2019.”

United-Guardian is a manufacturer of cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products.

     
  Contact: Robert S. Rubinger
    (631) 273-0900
     

NOTE: This press release contains both historical and "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company’s expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the “safe harbor” provisions of that Act. Such statements are subject to a variety of factors that could cause the company’s actual results or performance to differ materially from the anticipated results or performance expressed or implied by such forward-looking statements. For further information about the risks and uncertainties that may affect the company’s business please refer to the company's reports and filings with the Securities and Exchange Commission.

 
FINANCIAL RESULTS FOR THE YEARS ENDED
DECEMBER 31, 2018 AND DECEMBER 31, 2017
 
STATEMENTS OF INCOME
 
    Years ended December 31,  
    2018     2017  
Sales:            
Gross sales $ 14,458,055   $ 13,434,460  
Sales allowances and returns   (688,654 )   (466,255 )
Net sales    13,769,401     12,968,205  
             
Costs and expenses:            
Cost of sales   5,667,295     5,301,352  
Operating expenses   2,122,746     1,785,160  
Research and development   399,517     646,079  
Total costs and expenses   8,189,558     7,732,591  
Income from operations    5,579,843     5,235,614  
Other (expense) income:            
Investment income   231,986     281,868  
Net (loss) gain on marketable securities   (333,138 )   33,297  
Loss on trade-in of equipment   (12,837 )   ----  
Total other (expense) income   (113,989 )   315,165  
             
Income before provision for income taxes   5,465,854     5,550,779  
             
Provision for income taxes   1,113,523     1,706,489  
Net income $ 4,352,331   $ 3,844,290  
             
Earnings per common share (basic and diluted) $ 0.95   $ 0.84  


BALANCE SHEET DATA
(condensed)
 
    December 31,  
    2018     2017  
             
Current assets $ 11,687,100   $ 11,850,522  
Property, plant, and equipment (net of depreciation)   827,925     942,887  
Other assets (net)   29,647     59,471  
Total assets   12,544,672     12,852,880  


Current liabilities   1,366,151     1,422,383  
Deferred income taxes (net)   253,583     33,855  
Total Liabilities   1,619,734     1,456,238  
             
             
Stockholders’ equity   10,924,938     11,396,642  
Total liabilities and stockholders’ equity $ 12,544,672   $ 12,852,880